# EDGAR Filing Document

**Accession Number:** 0001444406
**File Stem:** 0001410578-23-000012
**Filing Date:** 2023-1
**Character Count:** 518922
**Document Hash:** 027393dd5da203d8f60cb364d6c0d0a9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-23-000012.hdr.sgml**: 20230110

**ACCESSION NUMBER**: 0001410578-23-000012

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 147

**CONFORMED PERIOD OF REPORT**: 20220930

**FILED AS OF DATE**: 20230110

**DATE AS OF CHANGE**: 20230110

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ECOPETROL S.A.
- **CENTRAL INDEX KEY:** 0001444406
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** F8
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34175
- **FILM NUMBER:** 23519932

**BUSINESS ADDRESS:**
- **STREET 1:** CARRERA 7 NO 37-69
- **CITY:** BOGOTA
- **STATE:** F8
- **ZIP:** 00000
- **BUSINESS PHONE:** 5712345000

**MAIL ADDRESS:**
- **STREET 1:** CARRERA 7 NO 37-69
- **CITY:** BOGOTA
- **STATE:** F8
- **ZIP:** 00000

?xml version='1.0' encoding='UTF-8'?

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER**

**THE SECURITIES EXCHANGE ACT OF 1934**

For the month of January, 2023

Commission File Number 001-34175

ECOPETROL S.A.

(Exact name of registrant as specified in its charter)

N.A.

(Translation of registrant's name into English)

COLOMBIA

(Jurisdiction of incorporation or organization)

Carrera 13 No. 36 – 24

BOGOTA D.C. – COLOMBIA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)

Yes ☐ No ☒

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A

*Ecopetrol S.A. hereby designates this report on Form 6-K as being incorporated by reference into its registration statement on Form F-3, as filed with the SEC on May 28, 2021 (File No. 333-256623)*.

------

Exhibits

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| | |
|:---|:---|
| Exhibit 23.1 –  | [Consent of Ernst & Young Audit S.A.S. to the incorporation by reference in the Registration Statement (Form F-3 No. 333-256623) and in the related Prospectus of their report dated October 26, 2021, with respect to Interconexión Eléctrica S.A. E.S.P.'s Audited Consolidated Financial Statements as of and for the year ended December 31, 2020.](ec-20220930xex23d1.htm) |
| Exhibit 99.1 –  | [Ecopetrol S.A.'s Unaudited Interim Condensed Consolidated Financial Statements for the nine-month periods ended September 30, 2022 and 2021 and as of September 30, 2022.](ec-20220930xex99d1.htm) |
| Exhibit 99.2 –  | [Unaudited Condensed Combined Pro Forma Financial Information for the year ended December 31, 2021, giving effect to Ecopetrol S.A.'s acquisition of 51.4% of the outstanding shares of Interconexión Eléctrica S.A. E.S.P.](ec-20220930xex99d2.htm) |
| Exhibit 99.3 –  | [Interconexión Eléctrica S.A. E.S.P.'s Audited Consolidated Financial Statements as of and for the year ended December 31, 2020.](ec-20220930xex99d3.htm) |
| Exhibit 99.4 –  | [Interconexión Eléctrica S.A. E.S.P.'s Unaudited Interim Condensed Consolidated Financial Statements as of June 30, 2021 and for the six-month periods ended June 30, 2021 and 2020.](ec-20220930xex99d4.htm) |

---

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  | Ecopetrol S.A. | Ecopetrol S.A. | Ecopetrol S.A. |
|  | By: | /s/ Pedro Manrique Gutiérrez | /s/ Pedro Manrique Gutiérrez |
|  |  | Name: | Pedro Manrique Gutiérrez |
|  |  | Title: | Acting Chief Executive Officer and Legal Representative |
| January 10, 2023 |  |  |  |

---

#### RECENT DEVELOPMENTS
*The following discussion of Ecopetrol S.A.'s (which we refer to as "Ecopetrol," the "Company" or "we") results of operations for the nine-month periods ended September 30, 2022 and 2021 should be read in conjunction with our annual report on Form 20-F for the fiscal year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (which we refer to as the "SEC") on April 26, 2022 (which we refer to as the "2021 Form 20-F") and, in particular, "Business Overview" and "Financial Review" in the 2021 Form 20-F, with our unaudited interim condensed consolidated financial statements for the nine-month periods ended September 30, 2022 and 2021 and as of September 30, 2022, included as Exhibit 99.1 to this Form 6-K (which we refer to as the "unaudited interim condensed consolidated financial statements"), and the unaudited condensed consolidated pro forma financial information for the year ended December 31, 2021, which is included as Exhibit 99.2 to this Form 6-K. We hereby designate this report on Form 6-K (which we refer to as this "Form 6-K") as being incorporated by reference into our registration statement on Form F-3, as filed with the SEC on May 28, 2021 (File No. 333-256623).*

*Our consolidated financial statements for the years ended December 31, 2021, 2020 and 2019 included in the 2021 Form 20-F were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").*

*Our unaudited interim condensed consolidated financial statements for the nine-month periods ended September 30, 2022 and 2021 were prepared in accordance with IAS 34 – "Interim Financial Reporting" as issued by the IASB.*

*Our consolidated financial statements were consolidated line by line and all transactions and balances among subsidiaries have been eliminated. These financial statements include the financial results of all subsidiary companies controlled, directly or indirectly, by Ecopetrol S.A.*

*Our unaudited condensed combined pro forma financial information for the year ended December 31, 2021 present the combined financial information of Ecopetrol and Interconexión Eléctrica S.A. E.S.P. ("ISA"), adjusted to give effect to the acquisition consummated on August 20, 2021 pursuant to the Inter-Administrative Share Purchase Agreement signed by Ecopetrol with the Colombian Ministry of Finance and Public Credit* (*Ministerio de Hacienda y Crédito Público*, "*MHCP*" *or the "Nation") on August 11, 2021 in accordance to which Ecopetrol agreed to acquire 51.4% of the outstanding shares of ISA from the MHCP (the "Acquisition") for the purchase price set forth therein (the "pro forma financial statements") as if the Acquisition had been consummated as of January 1, 2021 (see Exhibit 99.2 to this Form 6-K). The pro forma financial statements included herein are not necessarily indicative of the results of operations that would have actually occurred had the Acquisition been consummated as of the dates indicated, nor is it indicative of the future operating results of the combined company. In addition, the historical financial information of ISA included in this Form 6-K may not be representative of our future financial results or of ISA's business performance. See "Risk Factors—Risk factors related to the Acquisition."*

*ISA's historical financial information included in this Form 6-K was prepared in accordance with current financial information standards accepted in Colombia ("Colombian IFRS"). There would be no material differences between ISA's Colombian IFRS financial statements and the same financial statements if they had been prepared in accordance with IFRS, as issued by the IASB.*

*Ecopetrol also files financial information with the Colombian Superintendency of Finance (Superintendencia Financiera de Colombia or the "SFC" by its acronym in Spanish), which information is prepared in accordance with Colombian IFRS. Ecopetrol's financial information under Colombian IFRS filed with the SFC is not directly comparable to its financial information presented under IFRS-IASB in this report on Form 6-K or its filings with the SEC.*

#### Overview
Our consolidated financial results for the first nine months of 2022 reflect the overall positive effect of favorable crude oil price environment, characterized by higher Brent oil prices during this period as compared to the same period of 2021, despite global geopolitical challenges and inflationary pressures. As of the first nine months of 2022, crude oil prices averaged 102.5 US$/bl, an increase of 34.5 US$/bl as compared to the average price for the first nine months of 2021. In addition, our positive results were also driven by various other factors, including increased production in domestic and international operations, higher sales volume and the strong performance of our subsidiaries. See "*Ecopetrol's results of operations for the nine-month period ended September 30, 2022 compared to the nine-month period ended September 30, 2021*" below.

On the demand front, concerns about inflationary pressures, the uncertainty of the war between Russia and Ukraine, rising interest rates, and the COVID-19 contagion spikes in China, which have led Chinese authorities to re-impose lockdowns, have all affected economic activity. Such dynamic global geopolitical and economic context have led several analysts and the Organization for Economic Co-operation and Development ("OECD") to reduce their global growth forecast, with the OECD updating its global GDP growth forecast for 2022 from 4.5% to 3.0% and for 2023 from 3.2% to 2.2%.

On the supply front, Brent oil prices, which initially benefited from the strong demand trends in the first half of 2022, including expectations of lower supplies of Russian oil and refined products due to European and US sanctions, have stabilized in the face of weakened demand and a strong Russian supply that has defied initial expectations. This combination of factors has resulted in a build-up of crude inventories in the OECD countries, which has pressured crude oil prices downwards, despite the efforts undertaken by the Organization of the Petroleum Exporting Countries ("OPEC") and ten of the world's major non-OPEC oil-exporting nations, including Russia ("OPEC+") to balance the market, resulting in OPEC+'s October announcement to cut production by 2 mmbd. Brent oil prices, which peaked at 118 US$/bl in June, have fallen to 91 US$/bl in November. On December 2, 2022, the Group of Seven nations and Australia announced that they were joining the European Union in imposing a US$60.00 price cap on Russian oil, which became effective on December 5, 2022. We cannot predict the effect that such cap may have on oil prices.

Under current Colombian regulations, depending on the price of fuels in the international markets, participants in the Colombian fuel market either contribute to or receive payments from the Fuel Price Stabilization Fund ("FEPC" for its Spanish acronym), a fund assigned and administered by the MHCP to attenuate, in the domestic market, the impact of fluctuations on fuel prices in international markets. As a result, the strengthening of the Brent price indicator has resulted in an increase in amounts due to Ecopetrol from the FEPC. See "*Regulation Concerning Production and Prices—Fuel Price Stabilization Fund (FEPC)*" in our 2021 Form 20-F. On May 31, 2022, the MHCP announced an agreement with Ecopetrol to settle approximately COP$14.1 trillion of accounts receivable as of March 31, 2022, owed to Ecopetrol by the FEPC. As part of the FEPC accounts receivable settlement agreement, as of the date of this Form 6-K, the MHCP contributed approximately COP$7.4 trillion in cash and approximately COP$6.8 trillion were offset from the Nation's dividends from Ecopetrol for 2021 which were declared in 2022. In accordance with what was expressed by the MHCP, the portion of the extraordinary dividend corresponding to the Nation was used to offset the compensation due to Ecopetrol from the Nation pursuant to the FEPC and therefore did not imply a cash outflow. The payment to the minority shareholders was made on June 30, 2022. We believe the settlement agreement strengthens our financial and liquidity position to enable us to pursue our investment plan for 2022 and going forward. As of September 30, 2022, the cumulative balance of the FEPC account receivable was COP$20.4 trillion.

On June 14, 2022, the Government of Colombia (the "Government") announced an update to the Medium-Term Fiscal Framework ("MFMP", by its acronym in Spanish), a document that establishes the macroeconomic and fiscal strategy for the country in the medium term, including an exhaustive analysis of the FEPC situation, given its important fiscal implications. According to the MFMP update, the Government expects to transfer to the FEPC approximately COP$19.1 trillion in 2023, as well as COP$8.6 trillion and COP$0.8 trillion, in 2024 and 2025, respectively. On December 23, 2022, the Government made an extraordinary payment of COP$4.0 trillion in connection with the FEPC balance due to the Cartagena Refinery for the second and third quarters of 2022. The payment was composed of COP$3.0 trillion in cash and COP$1.0 trillion in Government treasury notes. We believe the payment and the update to the MFMP illustrates the Government's commitment to recognize and pay Ecopetrol's accounts receivable from the FEPC. Although we can offer no assurance, the MFMP update also anticipated a gradual convergence of domestic and international liquid fuel prices, and a structural reform to the fund that guarantees self-sustainability, which occurrence we believe could help reduce the impact of FEPC-related accounts receivable on our working capital.

As we continue our efforts and focus on energy transition, we have selected Total Eren and Électricité de France (EDF) from France, Siemens from Germany, H2B2 from Spain, Empati from the United Kingdom and Mitsui from Japan, as strategic partners to develop our strategic plan to develop low carbon hydrogen projects that is expected to contribute to Ecopetrol S.A.'s and its consolidated subsidiaries' (the "Ecopetrol Group") CO2 emission reduction goal by 2050. In June, we started working with these six companies to

formulate an action plan that will strengthen the development of our low-carbon hydrogen strategic plan with specific projects to decarbonize the production of hydrogen from refineries, as well as initiatives for industrial use and sustainable mobility.

During the third quarter of 2022, the pilot test for the production of green hydrogen at the Cartagena Refinery was successfully completed. We intend to apply the knowledge obtained therein toward other large-scale projects. The electrolyzer is now part of Esenttia's assets, and Esenttia is currently finalizing the technical details for its transfer and subsequent start of activity in industrial conditions.

Colombian presidential elections were held on June 19, 2022 with Gustavo Petro receiving the majority of the vote with 50.4% of the votes casted, and he was sworn in as President of Colombia on August 7, 2022. On August 8, 2022, the MHCP submitted a tax reform bill to Congress proposing several changes to the Colombian tax regime. The tax reform bill was approved by Congress on November 17, 2022 and was sanctioned by President Petro as Law 2277 of 2022 on December 13, 2022. See "Risks Related to Colombia and the Region's Political and Regional Environment".

#### 2023 Investment Plan
In December 2022, the Board of Directors approved between COP$25.3 trillion and COP$29.8 trillion for the 2023 investment plan (the "Investment Plan") at US$80/Bl Brent. The Ecopetrol Group expects to allocate approximately 66% of these investments to projects in Colombia and the remainder to the positioning and development of the Ecopetrol Group's operations in the United States, Brazil, Peru and Chile.

We believe the Investment Plan approved by the Board of Directors, is aligned with the Ecopetrol Group's commitment to accelerate the energy transition path and Colombia's energy security in line with the 2040 strategy "Energy That Transforms." As such, approximately 23% of the Investment Plan expected allocations seek to cement diversification into new low-emission businesses, including investments in hydrogen production, renewable energies, carbon capture, and electricity transmission.

The Investment Plan also includes investments of between COP$3.6 trillion and COP$4.1 trillion for exploration and production projects in the Piedemonte Llanero, Continental Caribbean, and Caribbean Offshore, which support our commitment to achieve gas self-sufficiency.

The Investment Plan expects the Ecopetrol Group's hydrocarbon production to range between 720 thousand and 725 thousand barrels equivalent per day in 2023, a refining throughput between 420 thousand and 430 thousand barrels per day, with transported volumes to exceed one million barrels per day, seeking to support continuity of fuel import substitution and the stability of the country's trade balance.

In terms of our electric power transmission business, the Investment Plan allocates approximately COP$5.4 trillion, primarily to support more than 6,000 kilometers of new transmission lines for non-conventional renewable energies.

The Investment Plan also continues the Ecopetrol Group's focus on energy transition and sustainability strategy, strengthening socio-environmental investment programs, deepening digital transformation, and accelerating the development and implementation of technologies to optimize operations throughout the chain. Accordingly, the plan includes expected investments of (i) close to COP$2.3 trillion in decarbonization, integrated water management, and fuel quality improvement projects, among others, (ii) COP$472 billion to social investment resources for regional development and the well-being of communities amounts to, focused on road infrastructure, education, and access to public services such as water and gas and (iii) more than COP$405 billion to science, technology, and innovation projects, which we believe are essential to leverage business development and catalyze progress in technologies for the energy transition.

#### Risks Related to Our Business
***We have made and may make significant investments in acquisitions and joint ventures and have made and may make significant divestments, and we may not realize the expected value of any such investments.***

We have acquired interests in several companies in Colombia and abroad, including a joint venture with Occidental Petroleum Corp. in the U.S. Permian Basin in 2019, and may continue to do so from time to time. For example, in August 2021, as part of our strategy and focus on energy transition, we consummated the ISA Acquisition. See sections "Business Overview—Our Corporate Structure and Related Party and Intercompany Transactions––ISA Acquisition" in our 2021 Form 20-F.

Obtaining the expected benefits of the acquisitions, including ISA's, or joint venture investments, will depend, in part, on our ability to: (i) obtain the expected results of operations and financial condition from these acquisitions or joint venture investments, (ii) manage different sets of assets and operations and integrate distinct corporate cultures or investment goals, (iii) manage our objectives as a corporate group, and (iv) institute our corporate governance rules as well as other factors beyond our control such as the economic and regulatory environment in countries in which we have made acquisitions or joint venture investments, as well as all other risks affecting the oil and gas industry or the industries of the businesses we acquire or invest in. See "Legal Proceedings and Related Matters––Interconexión Eléctrica S.A." in our 2021 Form 20-F.

In addition, consistent with SEC guidance on recent acquisitions, our fiscal year ended December 31, 2022 is the first year in which we will include ISA in management's assessment over internal controls as part of the completion of our annual report on Form 20-F for the fiscal year ended December 31, 2022. As of the date of this report on Form 6-K, the evaluation of ISA's internal controls is still ongoing and thus we are not able to offer any assurance as to the final results of that evaluation.

Similarly, in our shale operations in the U.S., the ability to drill and develop different locations is subject to uncertainties such as natural gas and oil prices, drilling and production costs, availability of drilling services and equipment, lease acquisitions and expirations, processing capacity constraints, pipeline transportation bottlenecks, access to and availability of water sourcing and distribution systems, regulatory approvals, among others. We cannot assure that all the well locations we have identified will ever be drilled or if we will be able to produce natural gas or oil at the planned levels. As a result, our efforts may not succeed and our failure to successfully obtain the expected results from our acquisitions or joint venture investments could adversely affect our financial condition and results of operations.

#### Risks Related to Colombia and the Region's Political and Regional Environment
***Changes in economic policies in Colombia, Peru, Brazil and Chile could materially adversely affect our business, financial condition and results of operations.***

Our financial condition and results of operations may be adversely affected by changes in the political climate of Colombia, Peru, Brazil and Chile to the extent that such changes affect the economic policies, growth, stability, outlook or regulatory environment of these countries.

With respect to Colombia, for the year ended December 31, 2021, revenues derived from Colombia represented 94% of our total revenues. The Colombian Government has historically exercised substantial influence on the local economy, and governmental policies are likely to continue to have an important effect on companies operating in Colombia and on market conditions. Each of the President of Colombia and the Colombian Central Bank have considerable power to determine governmental policies and actions relating to the economy and may adopt policies that may negatively affect us. We cannot predict which policies will be adopted by the Government and whether those policies would have a negative impact on the Colombian economy or our business and financial performance.

The Colombian parliamentary elections were held on March 13, 2022, the results of which suggested a fragmented Congress despite left-wing parties increasing their overall representation. On August 7, 2022, Gustavo Petro was sworn in as the new President of Colombia. During his presidential campaign, Mr. Petro indicated support for certain changes to Colombian oil exploitation policies to make Colombia less dependent on the oil industry and to accelerate the transition to cleaner energy sources, as well as support for pension and tax reforms. In the first months of Mr. Petro's Government, the current Minister of Mines and Energy, Irene Vélez Torres, discussed the possibility of suspending new agreements for oil exploration, while respecting the agreements currently in place. Notwithstanding this, on November 3, 2022, she announced that the Colombian Government does not intend to end oil exploration and extraction in Colombia, and that instead, the Colombian Government intends to promote an energy transition to support the reliability and stability of the energy system. Furthermore, in the context of such energy transition, the Colombian Government presented the "Construction of principles, methodology and launch of the Social Dialogue to define the Roadmap for the Just Energy Transition in Colombia" during the United Nations Conference on Climate Change COP27 in Egypt in November 2022. This roadmap is designed to be built through technical analysis and together with existing regulations such as Law 2099 of 2021 and CONPES 4075 of 2022. Moreover, the Colombian Government has presented a bill to definitively prohibit fracking in Colombia. At this time, it is unclear how such policies may affect our business, what form they could take, or whether we would need to adjust our business strategy to any such policies. Furthermore, although throughout recent history elected governments (and the Colombian Congress as well) have pursued free market economic policies with almost no economic interventions, we cannot predict which policies, if any, will be adopted by the new Government and/or congress and whether those policies would have a negative impact on the Colombian economy or our business and financial performance.

On August 8, 2022, the MHCP submitted a tax reform bill to Congress proposing several changes to the Colombian tax regime. The tax reform bill was approved by Congress on November 17, 2022 and was sanctioned by President Petro as Law 2277 of 2022 on December 13, 2022. The tax reform will become effective starting January 1, 2023. The tax reform includes, among others: (i) a new permanent equity tax applicable to Colombian individuals and non-residents, (ii) an increase in the dividend tax rate for local and foreign shareholders, (iii) an increase in the long-term capital gains tax rate (increasing from 10% to 15%); (iv) the elimination and the limitation of specific tax benefits and exemptions, such as the rule that exempted the taxing of capital gains from the sale of publicly listed shares (currently applicable to sale of less than 10% of the total shares in circulation, which would be limited to 3% of the total shares in circulation as from 2023), (v) an income tax surcharge for companies engaged in the extraction of crude oil and coal of 0%, 5%, 10% or 15% and based on international prices, (vi) non-deductibility of royalties and (vii) the introduction of a minimum tax based on effective tax rate determined on accounting profits. Finally, the Colombian Government has recently presented an initial outline of pension reform. The Colombian Government announced that the pension reform will be submitted for Congressional approval in 2023. However, at this time it is unclear how such reform could affect the Colombian economy or our business.

With respect to Brazil, for the year ended December 31, 2021, revenues derived from our consolidated subsidiaries in this country represented 2% of our total revenues. Brazilian markets have experienced heightened volatility due the uncertainties from ongoing investigations on money laundering and corruption conducted by the Brazilian Federal Police and the Office of the Brazilian Federal Prosecutor, including the Lava Jato investigation. These investigations adversely affected the Brazilian economy and political scenario. We have no control over and cannot predict whether the ongoing investigations or allegations will result in further political and economic instability, or if new allegations against government officials and/or companies will arise in the future. On January 1, 2019, Jair Bolsonaro took office as Brazil's President. During the first round of the Brazilian presidential elections held on October 2, 2022, former President Luiz Inácio Lula da Silva received 48.40% of the votes and Mr. Bolsonaro obtained 43.23% of the votes. A run-off election was held on October 30, 2022 and Mr. Lula da Silva was elected with 50.90% of the total votes and was sworn into office on January 1, 2023. Changes in economic or other policies by Mr. Lula da Silva's administration could negatively affect our industry in general, or our Brazilian subsidiaries' results of operations, in particular.

With respect to Peru, for the year ended December 31, 2021, revenues derived from our consolidated subsidiaries in this country represented 1% of our total revenues. Peru's most recent general presidential elections took place in April 2021. Following a run-off between the two top contenders on June 6, 2021, Pedro Castillo was elected as Peru's president. On December 7, 2022, Mr. Castillo announced his intention to dissolve the Peruvian Congress and to intervene, among others, the Peruvian judicial branch and Superior Court. Mr. Castillo's actions were deemed to constitute an attempted coup, which led to his destitution and arrest. Mr. Castillo was succeeded by his then vice-president, Dina Boluarte. Following Mr. Castillo's destitution, a wave of protests in support of Mr. Castillo erupted across the country, which led President Boluarte to declare a state of emergency across several regions in Peru on December 12, 2022 and call for congressional approval of a bill to permit early elections in 2024. As of the date of this report on Form 6-K, the bill for early congressional elections was initially approved by the Peruvian Congress but is pending a second round of approval as it would require a possible amendment to the Peruvian Constitution. These events have further increased the environment of political uncertainty in Peru, and gave way to further discussions about a possible reform of the Peruvian Constitution, which is based on free market, contractual liberty, and minimal governmental intervention in the economy. There is uncertainty as to whether President Boluarte will obtain the required qualified majorities in order to modify the Peruvian Constitution. We cannot assure that policies against free market and minimal intervention of the government in the Peruvian economy will not be taken by the new administration or any new Congress. Any changes in the Peruvian economy or the Peruvian government's economic policies may have a negative effect on our business, financial condition, and results of operations. Changes in economic or other policies by the Peruvian government or other political developments in Peru could adversely affect the business, financial condition, and results of operations of our subsidiaries.

With respect to Chile, for the year ended December 31, 2021, revenues derived from our consolidated subsidiaries in this country represented 1% of our total revenues. In 2019, following social unrest and protests, the Chilean government called for a constitutional assembly to reform the Chilean constitution. In May 2021, the Chilean government established a constitutional assembly to write a new constitution, which was rejected by 61.86% of the votes cast on a referendum that took place on September 4, 2022. Though the Chilean congress has started work on setting parameters for how to start over on a new constitution, the old constitution will remain in effect in the meantime. We cannot predict when or whether a new constitution will be approved, or the impact it may have on the regulatory framework governing our subsidiaries' operations. Furthermore, in December 2021, Chile elected a new President, Gabriel Boric, who took office on March 11, 2022. Mr. Boric is part of a coalition made up of several political parties from the Chilean left wing and we cannot predict what policies will be adopted by Mr. Boric's government and whether those policies would have a negative impact on the Chilean economy or our industry sector in Chile or our Chilean subsidiaries' business and financial performance.

We cannot provide any assurances that political or social developments in Colombia, Peru, Brazil, or Chile over which we have no control, will not have an adverse effect on our respective economic situations and will not adversely affect the business, financial

condition and results of operations of our consolidated subsidiaries and their ability to pay dividends or make other distributions to us. This could have a material adverse effect on our business, results of operations, and financial condition.

**Ecopetrol's results of operations for the nine-month period ended September 30, 2022 compared to the nine-month period ended September 30, 2021.**

The following table sets forth the components of Ecopetrol's unaudited interim condensed consolidated income statement for the nine-month periods ended September 30, 2022 and 2021.

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| | | | |
|:---|:---|:---|:---|
|  | **For the nine-month period**  | **For the nine-month period**  | |
|  | **ended September 30,** | **ended September 30,** | |
|  | **2022** | **2021** | <br>**% Change** |
|  | **(unaudited)** | **(unaudited)** |  |
|  | **(in millions of Colombian pesos)** | **(in millions of Colombian pesos)** |  |
| Revenues | 119898794 | 60085808 | 99.5% |
| Cost of sales | (65458241) | (36449442) | 79.6% |
| **Gross profit** | **54440553** | **23636366** | **130.3%** |
| Operation and project, administration and other operating expenses | (5980821) | (4363197) | 37.1% |
| (Impairment) recovery of non-current assets | (5516) | 1763 | -412.9% |
| **Operating income** | **48454216** | **19274932** | **151.4%** |
| Financial results | (5366006) | (2180191) | 146.1% |
| Share of profit of associates and joint ventures | 656680 | 225914 | 190.7% |
| **Profit before income tax** | **43744890** | **17320655** | **152.6%** |
| Income tax | (16214065) | (6045669) | 168.2% |
| **Net profit for the period** | **27530825** | **11274986** | **144.2%** |
| **Net profit attributable to:** |  |  |  |
| &nbsp;&nbsp;Owners of parent | 24770909 | 10217081 | 142.4% |
| &nbsp;&nbsp;Non-controlling interest | 2759916 | 1057905 | 160.9% |
| **Net profit for the period** | **27530825** | **11274986** | **144.2%** |

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#### Total Revenues
The following table sets forth our foreign and local sales of crude oil, natural gas, refined and petrochemical products, services associated with the transportation of hydrocarbons and energy transmission and toll roads, for the nine-month periods ended September 30, 2022 and 2021.

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| | | | |
|:---|:---|:---|:---|
|  | **For the nine-month period ended** | **For the nine-month period ended** | |
|  | **September 30,** | **September 30,** | |
|  | **2022** | **2021** | <br>**% Change** |
| **Crude oil**: | **(Unaudited)** | **(Unaudited)** |  |
| Local sales (mbod) | 2.2 | 2.4 | -8.3% |
| Foreign sales (mbod) | 409.7 | 347.3 | 18.0% |
| Average price per local barrel (USD/bl) | 89.0 | 56.5 | 57.5% |
| Average price per export barrel (USD/bl) | 95.5 | 63.7 | 49.9% |
| **Natural gas**: |  |  |  |
| Local sales (mboed) | 97.8 | 90.2 | 8.4% |
| Foreign sales (mboed) | 5.1 | 3.0 | 70.0% |
| Average local price (USD/bl) | 27.3 | 24.9 | 9.6% |
| Average export price (USD/bl) | 32.5 | 12.8 | 153.9% |
| **Refined products (including petrochemicals and industrial products)**: |  |  |  |
| Local sales (mboed) | 363.1 | 309.3 | 17.4% |
| Foreign sales (mboed) | 85.2 | 100.9 | -15.6% |
| Average local price per barrel (USD/bl) | 129.2 | 78.8 | 64.0% |
| Average export price per barrel (USD/bl) | 90.0 | 66.8 | 34.7% |
| **Services Revenues with third parties**: (in millions of Colombian pesos): |  |  |  |
| Electric Power Transmission and Toll Roads Concessions \* | 9578562 | 1035873 | 824.7% |
| Transportation | 1995275 | 1795516 | 11.1% |

---

\*Reflects revenues attributable to ISA's operations, which for the period ending September 30, 2021 only reflected one month of operation as a result of the consummation of the Acquisition in August 2021.

In the nine-month period ended September 30, 2022, total revenues increased by 99.5% (COP$59,812,986 million) as compared to the same period in 2021, as a result of:

● A COP$34,549,562 million increase in revenues primarily due to a 53.9%, or US$35.2 per barrel, increase to the average prices of our crude oil basket, natural gas and refining products.

● A COP$9,083,640 million increase in revenues, resulting from the depreciation of the Colombian peso against the U.S. dollar from an average exchange rate of COP$3,697.10/US$1.00 for the nine-month period ended September 30, 2021 to an average exchange rate COP$4,069.33/US$1.00 for the same period in 2022.

● A COP$8,919,992 million increase in services revenue, primarily reflecting a full nine months of ISA's consolidated revenues for COP$8,544,596 million as compared to only one month of recorded service revenues following the Acquisition during the same period in 2021.

● A COP$7,259,792 million increase in revenues attributable to a 12.9 % increase in sales volume, or 110.1 mboed, primarily as a result of the combined net effect of:

Higher volumes sold of crude oil by 62.2 mboed, or COP$4,036,258 million, primarily attributable to: (i) higher sales volume due to increased deliveries to customers, (ii) increased evacuation of crude oil as a result of improved operations due to Tanker Loading Unit ("TLU") maintenance in 2021, and (iii) increased crude oil production. This increase was partially offset by lower demand from our refineries due to lower throughput during the first nine months of 2022.<br>

Higher volumes sold of refined products and petrochemicals by 38.2 mboed, or COP$3,003,052 million, due to increased sales of diesel and gasoline, primarily due to the strengthening of domestic fuel demand, which in turn was mainly due to higher economic activity as a result of the relaxation of the restrictions associated with the COVID-19 pandemic. This increase was partially offset by a decrease in exports of middle distillates, due to a decrease in refining production as a result of scheduled maintenance at the Cartagena Refinery.<br>

Higher volumes sold of gas by 9.7 mboed, or COP$220,482 million, principally due to the recovery in demand mainly due to higher economic activity as a result of the relaxation of the restrictions associated with the COVID-19 pandemic and the increase in gas production in the Permian basin.<br>

#### Costs of Sales and Expenses
The following table sets forth the components of our cost of sales, operating expenses and operating income for the nine-month period ended September 30, 2022 and 2021.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the nine-month period ended** | **For the nine-month period ended** | |
|  | **September 30,** | **September 30,** | |
|  | **2022** | **2021** | <br>**% Change** |
|  | **(unaudited)** | **(unaudited)** |  |
|  | **(in millions of Colombian pesos)** | **(in millions of Colombian pesos)** |  |
| Fixed cost of sales | (15082393) | (9500260) | 58.8% |
| Variable cost of sales | (50375848) | (26949182) | 86.9% |
| **Total cost of sales** | **(65458241)** | **(36449442)** | **79.6%** |
| Operation and project, administration and other operating expenses | (5980821) | (4363197) | 37.1% |
| (Impairment) recovery of non-current assets | (5516) | 1763 | -412.9% |
| **Operating income** | **48454216** | **19274932** | **151.4%** |

---

#### Cost of sales
Our total cost of sales is comprised of a fixed portion and a variable portion:

Our fixed cost of sales includes, among other items, contracted services, labor costs, maintenance, taxes and depreciation. Our fixed cost of sales increased by 58.8% (COP$5,582,133 million) in the nine-month period ended September 30, 2022 as compared to the same period in 2021, in part due to the increase in inflation, which increased from 4.51% in 2021 to 11.44% in 2022, as well as the net effect of:

● A COP$3,549,597 million increase, primarily reflecting a full nine months of ISA's consolidated fixed costs, as compared to only one month of recorded costs following the Acquisition during the same period in 2021;

● A COP$1,214,527 million increase in the costs of professional services, maintenance and other operational activity costs, primarily as a result of (i) the increased execution of operational activities mainly due to the continued increase of economic activity related to the loosening of restrictions associated with the COVID-19 pandemic, (ii) price increases for supplies as a consequence of periodic adjustments pursuant to contractual provisions with suppliers, and (iii) the negative effect on Colombian peso costs of the depreciation of the average exchange rate of the Colombian peso against the U.S. dollar.

● A COP$441,516 million increase in depreciation and amortization mainly due to: (i) increased levels of capital expenditures, (ii) increased crude oil production in the Permian basin and Ecopetrol S.A., and (iii) the effect of the depreciation of the average exchange rate of the Colombian peso against the U.S. dollar on the depreciation registered by Ecopetrol S.A.'s subsidiaries that use the U.S. dollar as functional currency . The foregoing was partially offset by a lower depreciation rate as a result of an increase in reserves during 2021.

● A COP$252,992 million increase in labor costs mainly due to salary increases compared to the previous year and increase in the cost of health services; and

● A COP$123,501 million decrease in other minor items.

Our variable cost of sales includes, among other items, purchases of hydrocarbons from the *Agencia Nacional de Hidrocarburos* (the "National Agency of Hydrocarbons" or "ANH"), purchases of crude oil from business partners, imported products, hydrocarbon transportation services, depletion of fields and inventories. Our variable cost of sales increased by 86.9% (COP$23,426,666 million) in the nine-month period ended September 30, 2022 as compared to the same period in 2021, primarily as a result of:

● A COP$20,150,886 million increase in the purchase costs of crude oil, gas and refined products, mainly due to the net effect of:

A COP$13,530,394 million increase primarily due to higher average purchase prices in line with the increase in international benchmark prices during the nine-month period ended September 30, 2022;<br>

A COP$3,177,908 million increase in volumes purchased from third parties, mainly due to (i) higher imported refined products, which in turn was a result of higher fuel import requirements to meet the economic reactivation in the domestic market and (ii) the scheduled maintenance at our refineries; and<br>

A COP$3,442,584 million increase as a result of the depreciation of the Colombian peso against the U.S. dollar from an average exchange rate of COP$3,697.10/US$1.00 for the nine-month period ended September 30, 2021 to an average exchange rate COP$4,069.33/US$1.00 for the same period in 2022.<br>

● A COP$2,152,132 million increase due to increased realization of inventories as a result of (i) increased deliveries to customers , and (ii) increased evacuation of crude oil primarily as a result of improved operations due to TLU maintenance in 2021 .

● A COP$322,448 million increase in the payment of gas royalties in cash, a result of increased production and a higher settlement price compared to same period in 2021.

● A COP$300,683 million increase in electric energy costs, primarily due to higher energy rates and increased purchases in the National Electric System (SEN) mainly as a result of the unavailability of certain of our electricity generation plants during the first nine months of 2022 mainly due to scheduled maintenance.

● A COP$205,018 million increase in transportation costs, mainly due to: (i) higher volumes transported through our systems, (ii) the negative effect on our Colombian peso costs in U.S. dollar terms of the depreciation of the average exchange rate of the Colombian peso against the U.S. dollar; and (iii) the annual increase of pipeline fees in accordance with applicable Colombian regulation.

● A COP$184,723 million increase in costs of materials, mainly due to an increase in operating activities in all of our segments and the negative impact on the costs measured in U.S. dollar terms of the depreciation of the Colombian peso against the U.S. dollar.

● A COP$110,776 million increase in other minor items.

#### Operation and project, administration and other operating expenses
In the nine-month period ended September 30, 2022 as compared to the same period in 2021, our operation and project, administration and other operating expenses increased by 37.1% (COP$1,617,624 million), mainly due to:

● A COP$749,503 million increase in operating expenses, primarily reflecting a full nine months of ISA's consolidated operating expenses, as compared to only one month following the Acquisition during the same period in 2021

● A COP$345,338 million increase in commissions, fees, freights and services mainly related to the increase in sales made under the "Delivery At Place" ("DAP") incoterm rules in the first nine months of 2022 as compared to the same period in 2021;

● A COP$253,757 million corresponding to the write-off of the Rydberg project by Ecopetrol America as a consequence of the negative result of the technical and economic feasibility analysis performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● A COP$203,771 million increase in tax expenses, primarily relating to an increase in industry and commerce taxes payable due to an increase in revenues in the first nine months of 2022 as compared to the same period in 2021;

● A COP$116,875 million increase in labor costs mainly due to salary increases compared to the same period in 2021;

● A COP$101,297 million increase in exploration expenses, mainly due to an increase in unsuccessful well exploration activities;

● A COP$70,107 million increase associated with higher expenses related to social investment projects; and

● A COP$49,687 million increase in other minor items.

The factors discussed above were partially offset by COP$272,711 million in operating income resulting mainly from the sale of assets in the CEGOC area (Casanare, Estero, Garcero, Orocue and Corocora) in August 2022.

(Impairment) recovery of non-current assets

In the nine-month periods ended September 30, 2022 and 2021 we did not recognize significant impairment expenses or reversals, as there were no trigger events that required the recognition of additional impairments to those recorded at the end of 2021 and 2020.

#### Financial results
The following table sets forth our financial results for the nine-month periods ended September 30, 2022 and 2021.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the nine-month period ended** | **For the nine-month period ended** | |
|  | **September 30,** | **September 30,** | |
|  | **2022** | **2021** | <br>**% Change** |
|  | **(unaudited)** | **(unaudited)** |  |
|  | **(in millions of Colombian pesos)** | **(in millions of Colombian pesos)** |  |
| Foreign exchange (loss) gain | (377527) | 351341 | -207.5% |
| Interest expense related to loans and borrowings | (3886375) | (1867718) | 108.1% |
| Financial cost from other liabilities <sup>(1)</sup> | (1559080) | (698534) | 123.2% |
| Other finance income <sup>(2)</sup> | 456976 | 34720 | 1,216.2% |
| **Financial results** | **(5366006)** | **(2180191)** | **146.1%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes the financial expenses related to updating abandonment costs liabilities, and the interest cost, net of post-employment benefits and other long-term employee benefits.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes financial cost from other liabilities for the nine-month periods ending in September 30, 2021 and 2022.

Our financial results (expense) increased by COP$3,185,815 million, primarily as a result of the net effect of:

● A COP$1,964,120 million increase primarily reflecting a full nine months of ISA's consolidated financial expenses, as compared to only one month following the Acquisition during the same period in 2021;

● A COP$771,051 million increase due to foreign exchange losses as a result of the depreciation of the Colombian peso against the U.S. dollar;

● A COP$564,673 million increase in interest expense mainly due to: (i) the increase in indebtedness measured in U.S. dollars incurred in 2021 by Ecopetrol to finance the Acquisition and (ii) the effect of the increase in interest accrued on such indebtedness denominated in U.S. dollars when translated into COP$ as a result of the depreciation of the Colombian peso against the U.S. dollar during the first nine months of 2022; and

● A COP$114,029 million decrease in other minor items.

#### Profit before income taxes
Profit before income taxes increased by 152.6% in the nine-month period ended September 30, 2022, as compared to the same period in 2021, as a result of the above-mentioned factors.

#### Income tax
The effective income tax rate for the nine-month period ended September 30, 2022 was 37.1%, as compared to 34.9% for the same period in 2021. The variation in the effective income tax rate is mainly due to the increase in the nominal tax rate in Colombia from 31% to 35% as from January 2022.

#### Net profit attributable to equity holders of Ecopetrol
As a result of the foregoing, net profit attributable to the owners of Ecopetrol increased by 142.4% (COP$14,553,828 million) in the nine-month period ended September 30, 2022 as compared to the same period in 2021.

#### Liquidity and Capital Resources

#### Liquidity
Our principal sources of liquidity in the nine-month period ended September 30, 2022 were: (i) net cash provided by operating activities in an amount of COP$24,875,337 million, (ii) cash obtained by the entering into new financing arrangements for an amount of COP$10,458,560 million, and (iii) cash from dividends received for COP$1,179,338 million.

Our principal uses of liquidity in the nine-month period ended September 30, 2022 were: (i) COP$15,263,400 million for interest and principal payments on our debt; (ii) COP$13,434,457 million for investments in natural and environmental resources and reserves, and additions to our property, plant and equipment and intangibles and (iii) dividend payments in cash amounting to COP$11,186,951 million.

As part of its comprehensive debt management strategy, in September 2022, Ecopetrol S.A. drew on an existing credit line for U.S.$1.2 billion originally contracted in August 2021 with Banco Bilbao Vizcaya Argentaria S.A. New York Branch, Banco Santander, S.A., JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and The Bank of Nova Scotia (the "Committed Credit Line"). The proceeds from such disbursement were fully allocated to an early partial prepayment of the loan with Banco Santander, S.A., Citibank, N.A., JPMorgan Chase Bank, N.A. and The Bank of Nova Scotia (the "Acquisition Loan") used to finance the Acquisition (the "Acquisition Loan"). The Acquisition Loan was initially disbursed for US$3,672,000,000 in connection with the closing of the Acquisition and on November 2, 2021, Ecopetrol S.A. prepaid US$2.0 billion of the outstanding US$3,672,000,000 principal amount under the Acquisition Loan using approximately US$1,995,500,000 in net proceeds from the offering of its 4.625% Notes due 2031 and its 5.875% Bonds due 2051, plus US$4,500,000 of cash on hand.

On December 19, 2022, we also entered into a credit agreement for US$1,000,000,000 with The Bank of Nova Scotia and Sumitomo Mitsui Banking Corporation as authorized by the MHCP to (i) refinance the outstanding amount under the non-revolving committed line entered on September 20, 2018 with Mizuho Bank Ltd., The Bank of Nova Scotia and Banco Sabadell, which was authorized by the MHCP pursuant to Resolution No. 2733 of September 04, 2018; and (ii) make payments on the principal maturities of the Cartagena Refinery loans assumed by the Ecopetrol as authorized by the MHCP pursuant to Resolution No. 4112 of December 7, 2017.

On December 23, 2022, the Government made an extraordinary payment of COP$4.0 trillion in connection with the FEPC balance due to the Cartagena Refinery for the second and third quarters of 2022. The payment was composed of COP$3.0 trillion in cash and COP$1.0 trillion in Government treasury notes.

For 2022, on a consolidated basis, we expect our major cash needs to include planned capital expenditures ranging between US$4.8 billion and US$5.8 billion.

#### Use of Funds
*Capital Expenditures*

We plan to meet our budgeted organic capital expenditures for 2022 mainly through cash from internal cash generation.

*Cash from operating activities*

Net cash provided by operating activities increased by 115.8% or COP$13,348,719 million in the nine-month period ended September 30, 2022, as compared to the same period in 2021, mainly as a result of (i) a more favorable crude oil price environment boosted by our ability to capture better negotiation of crude oil and product spreads, (ii) solid performance in most of our segments as described above, and (iii) cost efficiency measures implemented since 2021. These results were primarily partially offset by an increase in accounts receivable due from the FEPC, which in turn was due to the strengthening of the Brent price indicator which has resulted in an increase in amounts due to Ecopetrol from the FEPC.

*Cash used in investing activities*

For the nine-month period ended September 30, 2022, net cash used in investing activities decreased by 33.8% or COP$5,642,017 million as compared to the same period in 2021. This decrease is mainly the result of the non-recurring effect of the COP$9,316,465 million in cash used for the Acquisition during the first nine months of 2021, which was not present in the nine-month period ended September 30, 2022. This decrease was partially offset by a (i) COP$1,962,092 million increase in cash provided by investing activities as a result of (a) COP$1,084,683 million received from the payment of dividends, (b) COP$482,516 million from interest payments and (c) COP$394,893 million in proceeds from the sales of assets, mainly from the sale of assets in the CEGOC area (Casanare, Estero, Garcero, Orocue and Corocora); (ii) COP$4,681,642 million increase in cash used in investing activities in connection with capital expenditures related to the Ecopetrol and ISA ongoing projects at Caño Sur, Castilla, Chichimene, Cusiana, and Rubiales fields (Caribbean Coast Interconnection, UPME 09-2016 Copey–Cuestecitas, UPME 06-2018 New Substation El Rio 220kV, among others); (iii) a COP$1,962,092 million decrease in cash provided by the investment portfolio as a consequence of lower sales of securities, which in turn was partially offset by an increase in other minor items, such as interest payments received from deposits and other investments.

*Cash used in (provided by) financing activities*

For the nine-month period ended September 30, 2022, net cash used in financial activities was COP$16,318,312 million compared to net cash provided by financing activities of COP$10,016,777 million for the same period in 2021, which represents an increase in cash used of COP$26,335,089 million, mainly due to: i) a COP$14,647,651 million increase related to the prepayment of debt, primarily due the early partial prepayment of the Acquisition Loan and lower incurrence of debt; (ii) a COP$9,762,495 million increase as a result of the payment of dividends, (iii) a COP$1,829,030 million increase in interest payments primarily due to the consolidation of ISA's results and the increase in indebtedness related to the Acquisition, and (iv) a COP$95,913 million increase due to other items. This increase in cash used in financing activities was partially offset by cash disbursed from an existing credit line for US$1.2 billion contracted by Ecopetrol in August 2021.

*Dividends*

On March 30, 2022, the Ordinary Shareholders' Meeting approved the plan for distribution of Ecopetrol S.A.'s profits for the 2021 fiscal year, which included the distribution of dividends for an aggregate amount of COP$11,512,675 million, which comprised an ordinary dividend per share of COP$243 and an extraordinary dividend per share of COP$37, for a total dividend of COP$280 per share. Dividends to minority shareholders were paid on April 21, 2022. Dividends to the controlling shareholder were paid during 2022 in various installments.

On June 17, 2022, the Extraordinary Shareholders' Meeting approved the distribution of a part of the occasional reserve as an extraordinary dividend for an amount of COP$6,907,605 million, for a dividend of COP$168 per share. This payment was made on June 23, 2022. The minority shareholders received a single payment. In the case of the controlling shareholder, dividends were used in full to offset the FEPC accounts receivable due to Ecopetrol.

During the nine-month period ended September 30, 2022, a total amount of COP$11,186,951 million in cash dividends have been paid to our shareholders, and a total amount of COP$6,788,385 million due to the Government as dividends have been offset against the FEPC accounts receivable due to Ecopetrol by the Colombian Government.

The COP$11,186,951 million cash dividends mentioned above have been distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●COP$2,110,779 million paid to minority shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●COP$7,926,666 million paid to the controlling shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●COP$1,149,506 million paid by subsidiaries to non-controlling shareholders.

#### Other developments
In connection with the public action (*acción popular*) filed by *Fundación Defensa de la Información Legal y Oportunidad – Dilo Colombia* ("Fundación Dilo"), which sought preliminary injunctive relief to prevent the MHCP from selling its ownership stake in ISA to Ecopetrol unless a competitive bid was undertaken, on February 3, 2022, the First Section of the Administrative Court of Cundinamarca (the "Cundinamarca Court") issued a first instance ruling rejecting all claims. As the plaintiff did not file an appeal within the required period of time, on March 23, 2022, Ecopetrol requested the Cundinamarca Court to issue a final judicial decision giving effect to its decision from February 3, 2022. On May 9, 2022, the Cundinamarca Court issued the final judicial decision, which effectively concludes and closes the public action by Fundación Dilo.

In connection with the public action filed on December 14, 2021 with the Administrative Court of Antioquia ("Antioquia Court") by Jaime Aristizábal Tobón, acting as president of the National Union of Electric Interconnection Workers S.A. (SINTRAISA, for its Spanish acronym), alleging that the transfer of ISA's shares to Ecopetrol, violated the collective rights to administrative morality and public property, on February 17, 2022, the Antioquia Court declared all actions under this process void and rejected the lawsuit determining that the decision in the popular action process brought on by Fundacion Dilo had a *res judicata* effect. As the plaintiff did not file an appeal within the required period of time, on March 23, 2022, Ecopetrol requested the Antioquia Court to issue a final judicial decision giving effect to its decision from February 17, 2022. As of the date of this Form 6-K, the request for such final judicial decision is still pending.

For more information, see "Risk Review—Legal Proceedings and Related Matters—Interconexión Eléctrica S.A." in our 2021 Form 20-F.

On December 19, 2022, we also entered into a credit agreement for US$1,000,000,000 with The Bank of Nova Scotia and Sumitomo Mitsui Banking Corporation as described above in "Liquidity and Capital Resources—Liquidity."

On December 22, 2022, through Resolution 1654 of November 18, 2022, the SFC authorized the renewal of the term of the Company's Program for the Issuance and Placement of Domestic Public Debt Bonds and Commercial Paper for an additional five years, until December 22, 2027 (the "Program"). The Program's remaining capacity is COP$2,100,000,000,000. No other amendments were made to the terms and conditions of the Program. Any offerings to be undertaken pursuant to the Program remain subject to approval by the SFC and any such approvals, if and when granted, do not imply any commitment or obligation on Ecopetrol to issue domestic debt securities or commercial paper.

#### Subsequent events
None, other than the subsequent events described above, and in note 33 to our unaudited interim condensed consolidated financial statements included in this Form 6-K.

#### FORWARD-LOOKING STATEMENTS
This current report on Form 6-K contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not based on historical facts and reflect our expectations for future events and results. Most facts are uncertain because of their nature. Words such as "anticipate," "believe," "could," "estimate," "expect," "should," "plan," "potential," "predicts," "prognosticate," "project," "target," "reach," "seek," "contemplate", "achieve" and "intend," among other similar expressions, are understood as forward-looking statements. These factors may include the following:

● changes in international crude oil and gas prices;

● our exploration and production activities, including drilling;

● import and export activities;

● our liquidity, cash flow and sources of funding;

● the results of our electric power transmission and toll roads activities through ISA and our ability to integrate ISA's operations;

● our projected and targeted capital expenditures and other cost commitments and revenues;

● dates by which certain areas will be developed or will come on-stream; and

● future growth and development of the energy industry.

Our forward-looking statements are not guarantees of future performance and are subject to assumptions that may prove incorrect and to risks and uncertainties that are difficult to predict. Actual results could differ materially from those expressed or forecast in any forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the following:

● general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates;

● competition;

● our ability to obtain financing;

● our ability to find, acquire or gain access to additional reserves and our ability to develop existing reserves;

● uncertainties inherent in making estimates of our reserves;

● the modification, adjustment or reduction of the tariffs, rates or fees charged by the electricity transmission businesses in the countries where they operate;

● significant political, economic and social developments in Colombia and other countries where we do business;

● natural disasters, pandemics and other public health events, including the COVID-19 pandemic;

● the Russian invasion of Ukraine;

● other military operations, terrorist acts, wars or embargoes;

● regulatory developments, including regulations related to climate change;

● receipt of government approvals and licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● technical difficulties; and

● other factors described in our press releases and filings with the SEC, including our 2021 Form 20-F.

All forward-looking statements attributed to us are qualified in their entirety by this cautionary statement. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this current report on Form 6-K.

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Auditors**

We consent to the reference to our firm under the caption "Experts" and to the use of our report dated October 26, 2021 (which report expresses a qualified opinion relating to the lack of presentation of comparative information for the preceding period), with respect to the consolidated financial statements of Interconexión Eléctrica S.A. E.S.P. as of December 31, 2020 and for the year then ended, included in the Registration Statement (Form F-3 No. 333-256623) and related Prospectus of Ecopetrol S.A.

/s/ Ernst & Young Audit S.A.S.

Bogotá, Colombia

January 10, 2023

------

## Exhibit 99.1

?xml version='1.0' encoding='UTF-8'?

602.5248.50.5365 [**Table of Contents**](#TOC)

**Exhibit 99.1**

**ECOPETROL S.A.**

Unaudited interim condensed consolidated

financial statements

September 30, 2022

![Graphic](ec-20220930xex99d1001.jpg)

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos)

**Index**

---

| | | |
|:---|:---|:---|
| [Interim condensed consolidated statement of financial position](#Consolidatedstatementoffinancialposition) | [Interim condensed consolidated statement of financial position](#Consolidatedstatementoffinancialposition) | 4 |
| [Interim condensed consolidated statement of profit or loss](#Consolidatedstatementofprofitorloss_8055) | [Interim condensed consolidated statement of profit or loss](#Consolidatedstatementofprofitorloss_8055) | 5 |
| [Interim condensed consolidated statement of comprehensive income](#Consolidatedstatementofcomprehensiveinco) | [Interim condensed consolidated statement of comprehensive income](#Consolidatedstatementofcomprehensiveinco) | 6 |
| [Interim condensed consolidated statement of changes in equity](#Consolidatedstatementofchangesinequity_6) | [Interim condensed consolidated statement of changes in equity](#Consolidatedstatementofchangesinequity_6) | 7 |
| [Interim condensed consolidated statement of cash flows](#Consolidatedstatementofcashflows_613877) | [Interim condensed consolidated statement of cash flows](#Consolidatedstatementofcashflows_613877) | 8 |
| [1.](#a1Reportingentity_763955) | [Reporting entity](#a1Reportingentity_763955) | 9 |
| [2.](#a2Basisforpresentation_93308) | [Basis of presentation](#a2Basisforpresentation_93308) | 9 |
| [3.](#a3Significantestimatesandaccountingjudgm) | [Significant accounting judgments and estimates](#a3Significantestimatesandaccountingjudgm) | 12 |
| [4.](#Accountingpolicies_813259) | [Accounting policies](#Accountingpolicies_813259) | 12 |
| [5.](#a5Newstandardsandregulatorychanges_79834) | [New standards](#a5Newstandardsandregulatorychanges_79834) | 12 |
| [6.](#a6Cashandcashequivalents_287871) | [Cash and cash equivalents](#a6Cashandcashequivalents_287871) | 14 |
| [7.](#a7Tradeandotherreceivablesnet_210082) | [Trade and other receivables](#a7Tradeandotherreceivablesnet_210082) | 14 |
| [8.](#a8Inventoriesnet_979886) | [Inventories](#a8Inventoriesnet_979886) | 15 |
| [9.](#a9Otherfinancialassets_129718) | [Other financial assets](#a9Otherfinancialassets_129718) | 16 |
| [10.](#a10Taxes_239350) | [Taxes](#a10Taxes_239350) | 17 |
| [11.](#a11Otherassets_729363) | [Other assets](#a11Otherassets_729363) | 17 |
| [12.](#a12Businesscombinations_295335) | [Business combination](#a12Businesscombinations_295335) | 18 |
| [13.](#a13Investmentsinassociatesandjointventur) | [Investments in associates and joint ventures](#a13Investmentsinassociatesandjointventur) | 19 |
| [14.](#a14Propertyplantandequipment_335415) | [Property, plant, and equipment](#a14Propertyplantandequipment_335415) | 22 |
| [15.](#a15Naturalandenvironmentalresources_8045) | [Natural and environmental resources](#a15Naturalandenvironmentalresources_8045) | 23 |
| [16.](#a16Rightofuseassets_760980) | [Right-of-use assets](#a16Rightofuseassets_760980) | 24 |
| [17.](#a17Intangibleassets_650388) | [Intangible assets](#a17Intangibleassets_650388) | 24 |
| [18.](#a18Impairmentofnoncurrentassets_179429) | [Impairment of non-current assets](#a18Impairmentofnoncurrentassets_179429) | 25 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos)

---

| | | |
|:---|:---|:---|
| [19.](#a19Goodwill_847373) | [Goodwill](#a19Goodwill_847373) | 25 |
| [20.](#a20Loansandborrowings_782705) | [Loans and borrowings](#a20Loansandborrowings_782705) | 26 |
| [21.](#a21Tradeandotherpayables_907845) | [Trade and other payables](#a21Tradeandotherpayables_907845) | 27 |
| [22.](#a22Provisionsforemployeesbenefits_325973) | [Provisions for employees' benefits](#a22Provisionsforemployeesbenefits_325973) | 28 |
| [23.](#a23Accruedliabilitiesandprovisions_44978) | [Accrued liabilities and provisions](#a23Accruedliabilitiesandprovisions_44978) | 29 |
| [24.](#a24Equity_511160) | [Equity](#a24Equity_511160) | 31 |
| [25.](#a25Salesrevenuefromcontractswithcustomer) | [Revenue from contracts with customers](#a25Salesrevenuefromcontractswithcustomer) | 34 |
| [26.](#a26Costofsales_610399) | [Cost of sales](#a26Costofsales_610399) | 35 |
| [27.](#a27Administrativeoperationsandprojectexp) | [Administrative, operation and project expenses](#a27Administrativeoperationsandprojectexp) | 36 |
| [28.](#a28Otheroperatingincomeexpensesnet_39649) | [Other operating income (expense)](#a28Otheroperatingincomeexpensesnet_39649) | 36 |
| [29.](#a29Financialresultnet_552165) | [Financial results](#a29Financialresultnet_552165) | 37 |
| [30.](#a30Riskmanagement_609428) | [Risk management](#a30Riskmanagement_609428) | 37 |
| [31.](#a31Relatedparties_692858) | [Related parties](#a31Relatedparties_692858) | 42 |
| [32.](#Segmentsinformation_684536) | [Segments information](#Segmentsinformation_684536) | 43 |
| [33.](#Relevanteventsunaudited_402885) | [Relevant events (unaudited)](#Relevanteventsunaudited_402885) | 48 |
| [Exhibit 1. Consolidated companies, associates, and joint ventures (Unaudited)](#Exhibit1Consolidatedsubsidiariesassociat) | [Exhibit 1. Consolidated companies, associates, and joint ventures (Unaudited)](#Exhibit1Consolidatedsubsidiariesassociat) | 50 |
| [Exhibit 2. Consolidated companies, associates, and joint ventures – Interconexión Eléctrica S.A. E.S.P](#Exhibit3Conditionsofthemostsignificantde). | [Exhibit 2. Consolidated companies, associates, and joint ventures – Interconexión Eléctrica S.A. E.S.P](#Exhibit3Conditionsofthemostsignificantde). | 54 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos)

#### Interim condensed consolidated statement of financial position

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Note** | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  |  | **(Unaudited)** |  |
| &nbsp;&nbsp;&nbsp;**Current Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 6 | 12917748 | 14549906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables | 7 | 33551394 | 18448882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 8 | 10783508 | 8398212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 9 | 2234862 | 1627150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax assets |  | 5685067 | 6273802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 11 | 2763568 | 2333091 |
|  |  | **67936147** | **51631043** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale |  | 76105 | 64704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** |  | **68012252** | **51695747** |
| &nbsp;&nbsp;&nbsp;**Non–current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables | 7 | 28493346 | 24159716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 9 | 964556 | 1307584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in associates and joint ventures | 13 | 8932511 | 8357186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and equipment | 14 | 96760471 | 90076526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural and environmental resources | 15 | 40965298 | 35909844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use-assets | 16 | 605332 | 496678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 17 | 17009782 | 15508516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax assets |  | 11005466 | 9030132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 19 | 5238201 | 4686324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 11 | 1389227 | 1198363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non–current assets** |  | **211364190** | **190730869** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** |  | **279376442** | **242426616** |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | 20 | 22614434 | 9206283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables | 21 | 17089949 | 13568231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions for employee benefits | 22 | 2217195 | 2296253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax liabilities |  | 6516616 | 2152104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and provisions | 23 | 1118310 | 1590118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 1802381 | 1409534 |
|  |  | **51358885** | **30222523** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities related to assets held for sale |  | 29878 | 26208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** |  | **51388763** | **30248731** |
| &nbsp;&nbsp;&nbsp;**Non–current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans and borrowings | 20 | 85125556 | 85854645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables | 21 | 63532 | 70607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions for employee benefits | 22 | 11023095 | 9082792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax liabilities |  | 13982876 | 12124520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and provisions | 23 | 12929004 | 12642089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | 2173819 | 1819460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non–current liabilities** |  | **125297882** | **121594113** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** |  | **176686645** | **151842844** |
| **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscribed and paid in capital | 24.1 | 25040067 | 25040067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 24.2 | 6607699 | 6607699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves | 24.3 | 8898633 | 10624229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | 24.5 | 13534455 | 11357894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |  | 22977937 | 14859658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Equity attributable to the Company's shareholders** |  | **77058791** | **68489547** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non–controlling interest |  | 25631006 | 22094225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total equity** |  | **102689797** | **90583772** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** |  | **279376442** | **242426616** |

---

*The accompanying notes are an integral part of the interim condensed consolidated financial statements.*

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos, except for the earnings per share, expressed in Colombian pesos)

#### Interim condensed consolidated statement of profit or loss

---

| | | | |
|:---|:---|:---|:---|
|  | | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | <br>**Note** | **2022** | **2021** |
|  |  | **(Unaudited)** | **(Unaudited)** |
| Revenue from contracts with customers | 25 | 119898794 | 60085808 |
| Cost of sales | 26 | (65458241) | (36449442) |
| &nbsp;&nbsp;**Gross profit** |  | **54440553** | **23636366** |
| Administration expenses | 27 | (2844627) | (1934557) |
| Operation and project expenses | 27 | (2833523) | (1993083) |
| Impairment (loss) reversal of non-current assets | 18 | (5516) | 1763 |
| Other operating expenses | 28 | (302671) | (435557) |
| &nbsp;&nbsp;**Operating income** |  | **48454216** | **19274932** |
| Financial results | 29 |  |  |
| &nbsp;&nbsp;Financial income |  | 887398 | 242763 |
| &nbsp;&nbsp;Financial expenses |  | (5875877) | (2774295) |
| &nbsp;&nbsp;Foreign exchange (loss) gain |  | (377527) | 351341 |
|  |  | **(5366006)** | **(2180191)** |
| Share of profits of associates and joint ventures | 13 | 656680 | 225914 |
| &nbsp;&nbsp;**Profit before income tax expense** |  | **43744890** | **17320655** |
| Income tax expense | 10 | (16214065) | (6045669) |
| &nbsp;&nbsp;**Net profit for the period** |  | **27530825** | **11274986** |
| Net profit attributable to: |  |  |  |
| &nbsp;&nbsp;Owners of parent |  | 24770909 | 10217081 |
| &nbsp;&nbsp;Non–controlling interest |  | 2759916 | 1057905 |
|  |  | **27530825** | **11274986** |
| Basic and diluted earnings per share (Colombian pesos) |  | **602.5** | **248.5** |

---

*The accompanying notes are an integral part of the interim condensed consolidated financial statements.*

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos)

#### Interim condensed consolidated statement of comprehensive income

---

| | | | |
|:---|:---|:---|:---|
|  | | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | <br>**Note** | **2022** | **2021** |
|  |  | **(Unaudited)** | **(Unaudited)** |
| **Net income for the period** |  | **27530825** | **11274986** |
| **Other comprehensive income:** |  |  |  |
| Items that may be reclassified to profit or loss in subsequent periods (net of taxes): |  |  |  |
| &nbsp;&nbsp;Unrealized (loss) gain on hedges: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge for future exports |  | (1594964) | (203504) |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedge of a net investment in a foreign operation |  | (3643730) | (1956114) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge with derivative instruments |  | 41885 | (116834) |
| &nbsp;&nbsp;Financial instruments measured at fair value |  | (1478) | (62) |
| &nbsp;&nbsp;Foreign currency translation |  | 10991556 | 3554790 |
| &nbsp;&nbsp;Realized other comprehensive income for joint venture sales | 29 |  | (361728) |
|  |  | **5793269** | **916548** |
| Items that will not be reclassified to profit or loss in subsequent periods (net of taxes): |  |  |  |
| &nbsp;&nbsp;Remeasurement loss on defined benefit plans |  | (1040172) | (269207) |
|  |  | **(1040172)** | **(269207)** |
| **Other comprehensive income, net of tax** |  | **4753097** | **647341** |
| **Total comprehensive income, net of tax** |  | **32283922** | **11922327** |
| Comprehensive income attributable to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Owners of the parent |  | 26947470 | 11270715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non–controlling interest |  | 5336452 | 651612 |
|  |  | **32283922** | **11922327** |

---

*The accompanying notes are an integral part of the interim condensed consolidated financial statements.*

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos)

#### Interim condensed consolidated statement of changes in equity

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Note** | <br>**Subscribed**<br>**and paid–in**<br>**capital** | <br>**Additional**<br>**paid–in**<br>**capital** | <br>**Reserves** | <br>**Other**<br>**comprehensive**<br>**income** | <br>**Retained**<br>**earnings** | **Equity**<br>**attributable to**<br>**Company's**<br>**shareholders** | <br>**Non–**<br>**controlling**<br>**interest** | <br>**Total**<br>**Equity** |
| **Balance as of January 1, 2022** |  | **25040067** | **6607699** | **10624229** | **11357894** | **14859658** | **68489547** | **22094225** | **90583772** |
| Adoption of new standards | 5.1 |  |  |  |  | 42054 | 42054 |  | 42054 |
| **Balance as of January 1, 2022, after adoption (unaudited)** |  | **25040067** | **6607699** | **10624229** | **11357894** | **14901712** | **68531601** | **22094225** | **90625826** |
| Net profit |  |  |  |  |  | 24770909 | 24770909 | 2759916 | 27530825 |
| Release of reserves  | 24.3 |  |  | (5886441) |  | 5886441 |  |  |  |
| Dividends declared | 24.4 |  |  | (6907605) |  | (11512675) | (18420280) | (1476010) | (19896290) |
| Business combinations | 12 |  |  |  |  |  |  | (238839) | (238839) |
| Equity restitution |  |  |  |  |  |  |  | (84822) | (84822) |
| Appropriation of reserves |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal | 24.3 |  |  | 1669468 |  | (1669468) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiscal and statutory | 24.3 |  |  | 509082 |  | (509082) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occasional | 24.3 |  |  | 8889900 |  | (8889900) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on hedging instruments: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge for future exports |  |  |  |  | (1594964) |  | (1594964) |  | (1594964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedge of a net investment in a foreign operation |  |  |  |  | (3555396) |  | (3555396) | (88334) | (3643730) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge with derivative instruments |  |  |  |  | 40815 |  | 40815 | 1070 | 41885 |
| &nbsp;&nbsp;&nbsp;Financial instruments measured at fair value |  |  |  |  | (1409) |  | (1409) | (69) | (1478) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation |  |  |  |  | 8325557 |  | 8325557 | 2665999 | 10991556 |
| &nbsp;&nbsp;&nbsp;Remeasurement loss on defined benefit plans |  |  |  |  | (1038042) |  | (1038042) | (2130) | (1040172) |
| **Balance as of September 30, 2022 (Unaudited)** |  | **25040067** | **6607699** | **8898633** | **13534455** | **22977937** | **77058791** | **25631006** | **102689797** |
| **Balance as of January 1, 2021** |  | **25040067** | **6607699** | **9635136** | **7947062** | **669900** | **49899864** | **3599499** | **53499363** |
| Net profit |  |  |  |  |  | 10217081 | 10217081 | 1057905 | 11274986 |
| Release of reserves  | 24.3 |  |  | (5066156) |  | 5066156 |  |  |  |
| Dividends declared | 24.4 |  |  |  |  | (698984) | (698984) | (879995) | (1578979) |
| Business combination |  |  |  |  |  |  |  | 27258943 | 27258943 |
| Change of participation in controlled companies  |  |  |  |  |  | 2755 | 2755 | (11106) | (8351) |
| Equity restitution |  |  |  |  |  |  |  | (14823) | (14823) |
| Appropriation of reserves |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal  | 24.3 |  |  | 168808 |  | (168808) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal and statutory | 24.3 |  |  | 509082 |  | (509082) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occasional  | 24.3 |  |  | 5377359 |  | (5377359) |  |  |  |
| &nbsp;&nbsp;&nbsp; Loss on hedging instruments: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge for future exports |  |  |  |  | (203504) |  | (203504) |  | (203504) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hedge of a net investment in a foreign operation |  |  |  |  | (1956114) |  | (1956114) |  | (1956114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedge with derivative instruments |  |  |  |  | (91495) |  | (91495) | (25339) | (116834) |
| &nbsp;&nbsp;&nbsp;Financial instruments measured at fair value |  |  |  |  | (32) |  | (32) | (30) | (62) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation |  |  |  |  | 3935716 |  | 3935716 | (380926) | 3554790 |
| &nbsp;&nbsp;&nbsp;Sale of a joint venture |  |  |  |  | (361728) |  | (361728) |  | (361728) |
| Remeasurement loss on defined benefit plans |  |  |  |  | (269207) |  | (269207) |  | (269207) |
| **Balance as of September 30, 2021 (Unaudited)** |  | **25040067** | **6607699** | **10624229** | **9000698** | **9201659** | **60474352** | **30604128** | **91078480** |

---

*The accompanying notes are an integral part of the interim condensed consolidated financial statements.*

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

(Figures expressed in millions of Colombian pesos)

#### Interim condensed consolidated statement of cash flows

---

| | | | |
|:---|:---|:---|:---|
|  | | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | <br>**Note** | **2022** | **2021** |
|  |  | **(Unaudited)** | **(Unaudited)** |
| **Cash flows provided by operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net profit for the period |  | 27530825 | 11274986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 10 | 16214065 | 6045669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion, and amortization | 14151617 | 8756826 | 7384180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange loss | 29 | 377527 | 10387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on realization of other comprehensive income from the sale of a joint venture | 29 |  | (361728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance cost of loans and borrowings | 29 | 3886375 | 1867718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance cost of post–employment benefits and abandonment costs | 29 | 1559080 | 698534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write off exploratory assets and dry wells | 15 | 436980 | 349941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale or disposal of non-current assets |  | 299059 | 54419 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss (reversal) of non-current assets | 18 | 5516 | (1763) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of current assets | 28 | 46434 | 18795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on fair value adjustment of financial assets |  | (179547) | 38448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on hedging transactions with derivatives |  | 32037 | (406) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of profit of associates and joint ventures | 13 | (656680) | (225914) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of assets held for sale |  | (266339) | (6733) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on hedge ineffectiveness | 30.3 | (949) | 10226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized loss on foreign exchange cash flow hedges | 25 | 576875 | 151791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net change in operational assets and liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables |  | (21799875) | (7720455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories |  | (1883511) | (3730971) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables |  | (526781) | 2177359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax assets and liabilities |  | (1675196) | (1900606) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions for employee benefits |  | (244825) | (287854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions and contingencies |  | (216504) | (56915) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities |  | (389978) | 179758 |
|  |  | **31881414** | **15968866** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax paid |  | (7006077) | (4442248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** |  | **24875337** | **11526618** |
| **Cash flow from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in joint ventures | 13.1 | (209658) | (16271) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of subsidiaries, net of cash acquired  |  |  | (9316465) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in property, plant, and equipment | 14 | (5259905) | (3982845) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in natural and environmental resources | 15 | (7472555) | (4562238) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions of intangibles | 17 | (701997) | (207732) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of other financial assets |  | 393099 | 1154610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interests received | 29 | 612914 | 130398 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends received | 13.1 | 1179338 | 94655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of non-current assets |  | 402373 | 7480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investment activities** |  | **(11056391)** | **(16698408)** |
| **Cash flow used in financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds obtained from loans and borrowings | 20.1 | 10458560 | 14404438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of loans and borrowings | 20.1 | (11614789) | (913016) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payments |  | (3648611) | (1819581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease payments | 16 | (311696) | (230608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of restitution of equity to minority shareholders |  | (14825) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | 24.4 | (11186951) | (1424456) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) provided by financing activities** |  | **(16318312)** | **10016777** |
| Exchange difference in cash and cash equivalents |  | 867208 | 159492 |
| Net (decrease) increase in cash and cash equivalents |  | (1632158) | 5004479 |
| **Cash and cash equivalent at the beginning of the period** |  | **14549906** | **5082308** |
| **Cash and cash equivalent at the end of the period** | 6 | **12917748** | **10086787** |

---

*The accompanying notes are an integral part of the interim condensed consolidated financial statements.*

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**1.** **Reporting entity**

Ecopetrol S.A. is a mixed economy company, with a commercial nature, formed in 1948 in Bogotá – Colombia, headquarters of the Ecopetrol Business Group (collectively called "Ecopetrol Business Group"); which is dedicated to commercial or industrial activities related to the exploration, exploitation, refining, transportation, storage, distribution and marketing of hydrocarbons, their derivatives and products, as well as the electric power transmission services, design, development, construction, operation and maintenance of road and energy infrastructure projects and the provision of information technology and telecommunications services.

An 11.51% of Ecopetrol S.A.'s shares are publicly traded on the Stock Exchanges of Colombia and New York, USA. The remaining shares (88.49% of the total outstanding shares) are owned by the Colombian Ministry of Finance and Public Credit.

The address of the main office of Ecopetrol S.A. is Bogotá – Colombia, Carrera 13 No. 36 – 24.

**2.** **Basis of presentation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1.** **Statement of compliance and authorization of financial statements** 

The financial information contained in this report has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements are unaudited and in the management opinion, include all necessary adjustments for a fair presentation of the results of each period. All such adjustments are of a normal recurring nature. This report should be read in conjunction with the consolidated financial statements and notes for the year ended 31 December 2021 included in Form 20-F 2021.

Ecopetrol Business Group prepares its consolidated financial statements included within Form 20-F based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

**The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in Form 20-F 2022 which are the same as those used in the previous year.**

#### These interim condensed consolidated financial statements were approved by the Company's Management on December 16, 2022.
**2.2.**Basis of consolidation

The interim condensed consolidated financial statements were prepared by consolidating all the subsidiary companies described in Exhibits 1 and 2, in which Ecopetrol exercises, directly or indirectly, control.

Control is achieved when the Ecopetrol Business Group:

- Has power over the company (existing rights that give it the power to direct the relevant activities)

- It is exposed to, or has rights to, variable returns from its relationship with the company and

Has the ability to use his power to affect his operating results. This occurs when the Company has less than most of the voting rights of an investee, and still has power over the investee to give it the practical ability to direct the relevant activities of the company unilaterally. The Ecopetrol Business Group considers all relevant facts and circumstances when evaluating whether the voting rights in an investee are sufficient to give it power, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The percentage of voting rights of the Company relative to the size and dispersion of the percentages of other voting holders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Potential voting rights held by the Company, other shareholders, or other parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Rights derived from contractual agreements and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Any additional facts or circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities, at the time that decisions need to be made, including voting patterns in previous shareholders' meetings.

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

Subsidiaries are consolidated from the date control is obtained until the date control ceases.

All intercompany assets and liabilities, equity, income, expenses, and cash flows related to transactions between Group companies were eliminated in consolidation. Unrealized profits and losses are also eliminated. Non-controlling interest represents the portion of profit, other comprehensive income and net assets in subsidiaries that are not attributable to Ecopetrol shareholders.

All business combinations are recognized using the acquisition method.

**Acquisition of Interconexión Eléctrica S.A. E.S.P.**

On August 20, 2021, Ecopetrol S.A completed the acquisition of Interconexión Eléctrica S.A. ESP ("ISA"). On such date, the closing conditions of the Inter-Administrative Agreement signed on August 11 between Ecopetrol S.A. and the Colombian Ministry of Finance and Public Credit ("MHCP") for the acquisition of $569,472,561 shares of ISA equivalent to 51.4% of the outstanding shares were fulfilled. On August 20, 2021, Ecopetrol S.A. acquired control of ISA. As ISA was controlled by the Ecopetrol Business Group´s controlling shareholders the transaction was between entities under common control.

The accounting for transactions under common control are not provided for in IFRS, therefore, the Ecopetrol Business Group evaluated the purpose of the transaction and concluded that since the transaction was not a mere corporate reorganization, had a commercial substance, was carried out at market conditions and settled in cash, it elected to recorded the transaction as a business combination pursuant to IFRS 3, Business Combinations.

During August 2022, the final purchase price allocation was completed, considering the new information obtained to the acquisition date. An update was made to the fair values calculated preliminarily as of December 31, 2021, of property, plant, and equipment, intangibles, deferred tax, goodwill, and the non-controlling interest of Interconexión Eléctrica S.A. E.S.P. (See Note 12 – Business combination).

Additionally, on July 12, 2022, the liquidation of Gasoducto de Oriente S.A. was registered in the Bogotá Chamber of Commerce, which is subsidiary of Inversiones de Gases de Colombia S.A.

**2.3.** **Conflict between Russia and Ukraine**

After weeks of heightened tensions between Russia and Ukraine, on February 24, 2022, Russia launched a full-scale military invasion of Ukraine. This war has increased volatility in the capital markets and has caused many raw materials to rise due to supply risk.

Ecopetrol's ability to access international and local capital markets, finance operations and potentially refinance debt maturities on terms acceptable to Ecopetrol could be affected due to price volatility in the oil and gas sector, the escalation military conflict between Ukraine and Russia, disruptions to Russia's energy exports as a result of sanctions, impacts to the global economy due to energy supply shocks, potential demand impacts from lockdowns or outbreaks of COVID-19, the lack of consensus among OPEC members, politics and uncertainty in the region, among others.

Likewise, the current situation of international crude oil prices (average price for the third quarter of 2022 of 97.7 USD/Bl of Brent) is being driven mainly by Russia's invasion of Ukrainian territory and the market expectations related to a possible global deacceleration.

Although high prices have favored the Company's income, they have also generated challenges in terms of inflation, high energy costs added to the international logistics crisis, which are beginning to generate pressure on operating costs and project execution times. Ecopetrol continues to permanently monitor the direct and indirect impacts to take actions to mitigate their effect.

**2.4.** **Considerations on climate change and energy transition**

On February 8, 2022, Ecopetrol communicated to the market its 2040 long-term strategy, called "Energy that Transforms", which comprehensively responds to current environmental, social and governance challenges, maintaining the focus on generating sustainable value for all your interest groups. Its objective is to consolidate an agile and dynamic organization that adapts in a timely manner to the

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

changes facing the energy industry, the challenges of a world that advances in the generation and use of clean energy, traveling a path of opportunities for growth and leadership in the Americas.

"Energy that Transforms" positions Ecopetrol as an integrated energy group, which participates in all the links of the hydrocarbon chain and in linear infrastructure, both in energy transmission and road concessions, and hopes to continue diversifying into businesses that allow it to continue to reduce its carbon footprint and advance in meeting its goal of being a company with zero net carbon emissions by 2050 (scopes 1 and 2). The strategy is supported by four strategic pillars: (i) Grow with the Energy Transition, (ii) Generate Value with Sustainability, (iii) Cutting-Edge Knowledge and (iv) Competitive Returns.

Within the first three pillars described in the strategy, the following actions associated with the energy transition and climate change were included:

**Grow with the energy transition**

On average, between USD $5,200 and USD $6,000 million will be invested annually by 2040. Between 2022 and 2024, organic investments will range between USD $17,000 and USD $20,000 million. In line with international best practices, the valuations of these investments in exploration and production projects incorporate a cost of greenhouse gas emissions under the internal CO2 price methodology, with a price curve that starts at $20 USD/ TonCO2e today and amounts to $40 USD/TonCO2e by 2030.<br>

Gas, as a fundamental source of energy in the energy transition, the 2022-2024 Plan includes investments in projects for more than USD $1,800 million. In the long term, it is expected to grow in its own production, seek new marketing options and venture into regasification and storage.<br>

Investments will be made for USD $2,600 million (15% of the total investments of the Business Group), mainly concentrated in Brazil (42%) and Colombia (25%), in addition to Peru and Chile. In this way, the continuity of ISA's 2030 Strategic Plan is guaranteed. This is how diversification towards low-emission businesses in the long term contemplates: (i) between 2019 and 2030, investment of USD $8.3 billion in current businesses and geographies and USD $2.2 billion in new geographies and (ii) achieving a participation of non-conventional renewable energies between 25% and 40% in the self-generation matrix by 2040.<br>

The foregoing will be supported by, in addition to ISA, the gradual foray into emerging businesses aligned with new global trends, to mitigate the effects of climate change, such as the production of low-carbon hydrogen as an energy source, the capture, use and storage of (CCUS) and Natural Climate Solutions (NCS). Over the next three years, more than USD $200 million will be invested in green hydrogen projects in the Cartagena and Barrancabermeja refineries, and in CO2 capture projects through emerging technologies such as CCUS and SNC projects.

**Generate value with sosTECnibilidad (sustainability + technology)**

The 2022 - 2024 Plan (without ISA) includes investments of more than USD $1,400 million in projects for circular water management, decarbonization, energy efficiency, use of energy and alternative sources, improvement in the quality of fuels, and studies and pilots of green and blue hydrogen for applications in refineries and mobility.

In this sense, the Plan has a clear focus on supporting the energy transition strategy, including the incorporation of renewable energy sources for self-consumption, taking advantage of wind, solar and geothermal energy technologies, strengthening socio-environmental investment programs, deepening digital transformation and acceleration of the development and implementation of technologies to optimize operations throughout the chain.

The Business Group will increase its self-generation capacity with renewable energies in a range between 400 - 450 MW.

On the other hand, the long-term objectives include for environmental matters, achieve (i) a 25% reduction in GHG emissions by 2030 compared to 2019 (scopes 1 and 2), (ii) zero emissions CO2 equivalent emissions by 2050 (scopes 1 and 2), (iii) zero routine gas burning by 2030, (vi) zero water discharges by 2045 together with a reduction between 58% and 66% of freshwater intake for the operations. In

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

terms of social component, it is expected to promote the generation of about 230,000 new non-oil jobs by 2040 and contribute to the education of 2 million young colombians. As a sign of this commitment, the Business Group will seek to continue improving its position among public companies globally within the Dow Jones Sustainability Index.

**Cutting edge knowledge**

This pillar seeks to develop the necessary capacities for sosTECnibilidad (sustainability + technology), through a comprehensive science, technology, and innovation (CT+i) strategy to contribute to diversification, increase clean energy, decarbonize operations, and enhance human talent.

As part of the goals of the 2022-2024 Plan, more than USD $240 million will be allocated to innovation, technology, and digital transformation projects, which include technologies for the management of produced water as a profitable and sustainable resource and a study for the capture of CO2 in natural sinks.

**3.** **Significant accounting judgments and estimates**

The preparation of the consolidated financial statements requires that the Company's Management make judgments, estimates and assumptions to quantify some of the assets, liabilities, income, expenses, and commitments recognized in the consolidated financial statements and their disclosures. These estimates have been made based on the best information available on the facts analyzed, management experience and other factors at the date of preparation of the financial statements. Uncertainty about assumptions and estimates could result in future material changes affecting the value of assets or liabilities. Changes in these estimates are recognized prospectively in the period in which they are reviewed.

As of the date of this report, there have been no changes in the significant accounting estimates and judgments used in the preparation of the consolidated financial statements as of December 31, 2021.

**4.** **Accounting policies**

The Group's main accounting policies are described in the consolidated financial statements as of December 31, 2021, and for the year then ended, and they have been applied consistently for the period comprising these interim condensed consolidated financial statements, except for the adoption of new standards effective as of January 1, 2022.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annuals, and therefore should be read in conjunction with the consolidated financial statements as of December 31, 2021.

**5.** **New standards**

**5.1.** **New standards adopted by the Group, effective as of January 1, 2022**

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2022. It has not early adopted any other standards, interpretations or amendments that have been issued and not yet effective as of the date of this report:

&nbsp;&nbsp;&nbsp;&nbsp;● IAS 16 – Property, plant, and equipment: amendment that expresses the prohibition of deducting from the cost of property, plant, and equipment the value of sales of items produced, while the company prepares the asset for its intended use. As of January 1, 2022, Ecopetrol adopted for the first time the Amendment IAS 16 "Property, Plant and Equipment - Proceeds before intended use" in a mandatory manner, the nature and effects of these changes are mentioned below:

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

In May 2020, the International Accounting Standards Committee - IASB issued amendments to IAS 16 - Property, Plant and Equipment referring to the part of proceeds before intended use, in terms of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The sales obtained from the elements produced during the installation and start-up process of the asset, that is, products obtained in the project stage or extensive tests, are recognized in the results of the period as ordinary income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The costs associated with the production of products obtained in the project stage or extensive tests sold according to IAS 2 are also recognized in the result of the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The value of the income and costs related to the sale of products obtained in the project stage or extensive tests is disclosed in the notes to the consolidated financial statements, detailing in which items of the Financial Statement they are included.

The amendment was effective for the annual reporting periods from January 1, 2022, and its application accepted in Colombia by Decree 938 issued on August 19, 2021, by the Ministry of Industry and Tourism, without generating differences with what given by the IASB for full IFRS.

In the oil sector, this amendment has effects on the treatment of the sale to third parties of extensive oil field tests, which are sales of crude oil or gas from a well under development before entering the market in full production.

Retroactive application was only made for property, plant and equipment or natural and environmental resources that were in the construction stage at the beginning of the first period presented in the consolidated financial statements in which the Ecopetrol Business Group adopted the standard, that is, on January 1, 2021. The impact of the adoption of this standard was as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o An increase of $48,173 (See Note 15) and $18,013 (See Note 14) in the Exploration and evaluation account within Natural and environmental resources and property, plant and equipment balance sheet line items, respectively, with a corresponding decrease retained earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o An effect of $24,132 due to the reversal of the deferred tax liability arising from the temporary difference between the tax basis and accounting basis prior to the adoption of the amendment and a corresponding effect in retained earnings.

&nbsp;&nbsp;&nbsp;&nbsp;● IFRS 3 – Business combinations: in which they update a reference from the standard to the Conceptual Framework. The amendments are intended to replace the reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, by the reference to the Conceptual Framework for Financial Information, issued in March 2018, without significantly changing its requirements. This amendment had no impact on the interim condensed consolidated financial statements of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;● IAS 37 – Provisions, contingent assets, and liabilities: in which it details what costs an entity must include when determining whether a contract is onerous. The amendments state that a directly related cost approach should be applied. Costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs are not directly related to the contract and should be excluded, unless they are explicitly, attributable to the counterparty under the contract. This amendment had no impact on the interim condensed consolidated financial statements of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;● Cycle of annual improvements 2018 – 2020 involving adjustments to IFRS 1 - subsidiary as first-time adopter, IAS 41 - taxes on fair value measurements, IFRS 16 - lease incentives and IFRS 9 - charges in the 10% test for the derecognition of financial liabilities, which clarifies the charges that an entity includes when evaluating whether the terms of a new or modified financial liability are materially different from the terms of the original financial liability. This amendment had no impact on the interim condensed consolidated financial statements of the Group.

**5.2.** **New standards issued but not yet effective**

The IASB issued amendments to the following standards, with an effective date on January 1, 2023, or later periods:

&nbsp;&nbsp;&nbsp;&nbsp;● Amendment to IAS 1 - Classifications of liabilities as current or non-current, modifies the requirement to classify a liability as current, by establishing that a liability is classified as current when it does not have the right at the end of the reporting period to

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

defer the liquidation of the liability during, at least, the twelve months following the date of the reporting period. This amendment will be effective as of January 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;● Amendments to IAS 1 – Presentation of financial statements. Companies must disclose material information about their accounting policies and apply the concept of materiality to accounting policy disclosures. The amendments clarify the following points:

- The word "significant" is changed to "material or relative importance".

- The accounting policies that must be disclosed in the notes to the financial statements are clarified, "an entity will disclose information about its material or relative importance accounting policies."

- It is clarified when an accounting policy is considered material or relatively important.

Adds the following paragraph: "Information on accounting policies that focuses on how an entity has applied the requirements of IFRS to its own circumstances provides specific information about the entity that is more useful to users of financial statements than standardized information or information that only doubles or summarizes the requirements of IFRS standards".

&nbsp;&nbsp;&nbsp;&nbsp;● Amendments to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors. They clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. The amendment was published by the IASB in February 2021 and clearly defines an accounting estimate to distinguish it from an accounting policy: "Accounting estimates are monetary amounts, in financial statements, that are subject to measurement uncertainty". The amendments are effective for the annual periods beginning on January 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;● Amendments to IAS 12 Deferred taxes related to assets and liabilities that are recognized in a single transaction. The purpose of the amendments is to reduce diversity in the reporting of deferred taxes on leases and decommissioning obligations. The amendments are effective for annual periods beginning on January 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;● IFRS 17 was issued by the IASB in 2017 with application beginning on January 1, 2021, to replace IFRS 4 - Insurance Contracts. However, the entry into force was postponed until January 1, 2023. This Standard has not been introduced into the Colombian accounting framework by means of a decree to date and it has not been included in the public discussion process initiated by the Technical Council of Public Accounting, nor in the draft decree of the Ministry of Commerce, Industry and Tourism generated in May 2022.

**6.** **Cash and cash equivalents**

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Banks and corporations | 8,976,534 | 11,080,569 |
| Short–term investments | 3,939,317 | 3,467,859 |
| Cash | 1,897 | 1,478 |
|  | **12,917,748** | **14,549,906** |

---

As of September 30, 2022, the balance of cash and cash equivalents includes $55,164 ($71,979 December 31, 2021) of restricted cash to be used in the next 12 months exclusively for the payment of principal and interest on loans obtained by Oleoducto Bicentenario and $1,414,522 ($1,039,024 December 31, 2021), based on the financing contracts and held, mainly, to guarantee the debt service of Interconexión Eléctrica S.A. E.S.P.

The fair value of cash and equivalents is close to its book value due to its short-term nature (less than three months) and its high liquidity. Cash equivalents are convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

**7.** **Trade and other receivables**

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Current** |  |  |
| &nbsp;&nbsp;Customers |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 4037880 | 3222837 |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | 3409558 | 2917305 |
| &nbsp;&nbsp;Concessions (1) | 4361181 | 3370644 |
| &nbsp;&nbsp;Fuel Price stabilization fund (2) | 20443367 | 7824788 |
| &nbsp;&nbsp;Accounts receivable from employees | 104610 | 106547 |
| &nbsp;&nbsp;Industrial services | 53666 | 32096 |
| &nbsp;&nbsp;Related parties (Note 31) | 179948 | 9355 |
| &nbsp;&nbsp;Other | 961184 | 965310 |
|  | **33551394** | **18448882** |
| **Non–current** |  |  |
| &nbsp;&nbsp;Customers |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 144481 | 36965 |
| &nbsp;&nbsp;&nbsp;&nbsp;Domestic | 54051 | 178552 |
| &nbsp;&nbsp;Concessions (1) | 25215126 | 21259519 |
| &nbsp;&nbsp;Accounts receivable from employees | 545168 | 534051 |
| &nbsp;&nbsp;Related parties (Note 31) | 335 | 335 |
| &nbsp;&nbsp;Other (3) | 2534185 | 2150294 |
|  | **28493346** | **24159716** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes electric power transportation concessions and roads.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Corresponds to the application of Resolution 180522 of March 29, 2010, and other regulations that modify and add it (Decree 1880 of 2014 and Decree 1068 of 2015), which establishes the procedure to recognize the subsidy for refiners and importers of motor gasoline current and ACPM, and the methodology for calculating the net position (value generated between the parity price and the regulated price, which can be positive or negative).

For 2022, the increase in accounts receivable is due to the increase in international indicators (brent reference price). During the period, the Ministry of Finance and Public Credit contributed approximately $7,461,088 in cash and $6,788,385 were offset from the Nation's dividends provided by Ecopetrol's earnings in 2021, which were declared in 2022. In accordance with what was expressed by the Ministry of Finance and Public Credit, the portion of the extraordinary dividend corresponding to the Nation was offset with the Stabilization Fund and, therefore, did not imply a cash outflow.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Corresponds mainly to accounts receivable from the Government of Brazil for employee benefits governed by Law 4819 of 1958 to ISA CTEEP, and crude loan agreements of the Business Group for transportation systems. The gross value of these accounts receivable is $2,202,739 (2021: $1,772,101) and the provision for expected losses established, included in the provision line for expected credit losses, is $432,750 (2021: $368,299), for a net book value of $1,769,989 (2021: $1,403,802). The administration monitors the progress and developments related to the legal aspect of the matter and continuously evaluates the possible impacts on its financial statements.

The book value of trade accounts and other accounts receivable approximates their fair value.

#### 8 . Inventories

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**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Crude oil (1) | 4184242 | 3305965 |
| Fuels and petrochemicals (2) | 3933294 | 2845486 |
| Materials for goods production  | 2665972 | 2246761 |
|  | **10783508** | **8398212** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The variation is mainly due to the increase in Brent prices.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The variation is mainly due to the increase of the international references prices and the receipt of fuel imports to accomplish with the national demand for fuels.

#### 9 . Other financial assets

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Assets measured at fair value** |  |  |
| &nbsp;&nbsp;Investment portfolio – Foreign currency | 1422282 | 1172718 |
| &nbsp;&nbsp;Investments in equity securities (1) | 1034997 | 606624 |
| &nbsp;&nbsp;Investment portfolio – Local currency | 382670 | 759892 |
| &nbsp;&nbsp;Hedging instruments (2) | 235807 | 17449 |
| &nbsp;&nbsp;Assets measured at fair value through other comprehensive income | 2627 | 2789 |
|  | **3078383** | **2559472** |
| Assets measured at amortized cost (3) | 121035 | 375262 |
|  | **3199418** | **2934734** |
| **Current** | 2234862 | 1627150 |
| **Non–current** | 964556 | 1307584 |
|  | **3199418** | **2934734** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes deposits in trust companies and restricted funds in Brazil, Peru, Chile, and Colombia.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Corresponds to swap contracts and a put option to hedge commodity price risk and forwards to hedge exchange rate risk.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes investments with maturities greater than 90 days, in Chile and Colombia.

**Fair value**

The following is the classification of other financial assets recognized at fair value, corresponding to the investment portfolio:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Level 1 | 1,446,757 | 834,057 |
| Level 2 | 1,631,626 | 1,725,415 |
|  | **3,078,383** | **2,559,472** |

---

There were no transfers between hierarchy levels during the periods.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**10.** **Taxes**

#### Income taxes
The Group calculates the income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the interim consolidated statement of profit or loss are:

---

| | | |
|:---|:---|:---|
|  | **Nine-month period ended** | **Nine-month period ended** |
|  | **September 30,**  | **September 30,**  |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| Current income tax expense | 13586947 | 4246737 |
| Deferred income tax expense | 2613356 | 1817892 |
| Adjustments to prior years' current and deferred tax | 13762 | (18960) |
| **Income tax expense** | **16214065** | **6045669** |

---

The effective tax rate was 37.1% and 34.9% for nine-month period ended September 30, 2022, and 2021, respectively.

The 2.2% increase in the effective tax rate during the nine months ended on September 30, 2022, compared to the 2021 period, are mainly to the change in the bylaw tax rate (35% for 2022 vs. 31% for 2021), to the increase in the expected exchange rate, to the better results obtained by the companies that pay taxes at a nominal income rate different from 35%, particularly, Refinería de Cartagena (income tax rate of 15%), and the better results obtained during the period from January to September at Ecopetrol S.A.

The better results in the Ecopetrol Business Group are mainly due to the growth in operations, considering: i) an increase of 54% or +US$35.2 per barrel in the average price of crude oil, natural gas and refined products, ii) a positive effect on revenues given the devaluation of the Colombia Peso against the dollar, iii) a higher sales volumes (+110 kBde) and, iv) an increase in revenues from services, better performance of the transportation and logistics services segment, associated with the increase in the volume transported due to the greater availability of crude oil produced in the country, and the reactivation of the national demand for products and gas.

**11.** **Other assets**

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Current** |  |  |
| &nbsp;&nbsp;Prepaid expenses | 814709 | 549456 |
| &nbsp;&nbsp;Partners in joint operations | 762155 | 639199 |
| &nbsp;&nbsp;Advanced payments to contractors and suppliers | 705451 | 591990 |
| &nbsp;&nbsp;Trust funds | 455889 | 527520 |
| &nbsp;&nbsp;Related parties (Note 31) | 889 | 1386 |
| &nbsp;&nbsp;Other | 24475 | 23540 |
|  | **2763568** | **2333091** |
| **Non–current** |  |  |
| &nbsp;&nbsp; Wells abandonment and pension funds | 563552 | 461729 |
| &nbsp;&nbsp;Trust funds | 236449 | 176781 |
| &nbsp;&nbsp;Employee benefits | 273142 | 229969 |
| &nbsp;&nbsp;Advanced payments and deposits | 97022 | 92815 |
| &nbsp;&nbsp;Judicial deposits and judicial attachments | 52816 | 48845 |
| &nbsp;&nbsp;Other | 166246 | 188224 |
|  | **1389227** | **1198363** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**12.** **Business combination**

**12.1.**Acquisition of Interconexión Eléctrica S.A. E.S.P.

On August 20, 2021, the closing conditions of the Inter-Administrative Agreement signed on August 11 between Ecopetrol S.A. and the Ministry of Finance and Public Credit ("MHCP") for the acquisition of 569,472,561 shares of Interconexión Eléctrica S.A. ESP ("ISA") equivalent to 51.4% of the outstanding shares of this company and representing 100% of the ownership of the MHCP in said company were satisfactorily fulfilled.

Considering the final purchase price allocation on August 31, 2022, the fair value of the identifiable assets and liabilities of ISA as at the date of acquisition were:

---

| | |
|:---|:---|
|  | **Fair Value**  |
| **Assets** |  |
| &nbsp;&nbsp;Cash and cash equivalents | 4983234 |
| &nbsp;&nbsp;Accounts receivable | 27487774 |
| &nbsp;&nbsp;Inventories | 120300 |
| &nbsp;&nbsp;Other financial assets | 1093941 |
| &nbsp;&nbsp;Current tax assets | 477504 |
| &nbsp;&nbsp;Other assets | 682445 |
| &nbsp;&nbsp;Investments in subsidiaries and joint ventures | 5014749 |
| &nbsp;&nbsp;Properties, plant, and equipment | 17486901 |
| &nbsp;&nbsp;Right of use assets | 230207 |
| &nbsp;&nbsp;Intangibles | 13903491 |
| &nbsp;&nbsp;Deferred tax assets | 2075849 |
| **Total assets** | **73556395** |
| **Liabilities** |  |
| &nbsp;&nbsp;Loans | 27203432 |
| &nbsp;&nbsp;Leases | 255503 |
| &nbsp;&nbsp;Accounts payable | 1358692 |
| &nbsp;&nbsp;Employee Benefits | 973210 |
| &nbsp;&nbsp;Tax liabilities | 1897786 |
| &nbsp;&nbsp;Provisions and contingencies | 947883 |
| &nbsp;&nbsp;Other liabilities | 1708349 |
| &nbsp;&nbsp;Deferred tax liabilities | 9856379 |
| **Total liabilities** | **44201234** |
| **Total identifiable net assets** | **29355161** |
| &nbsp;&nbsp;Non-controlling interest | (18734241) |
| &nbsp;&nbsp;Goodwill derived from the acquisition | 3279916 |
| **Consideration transferred** | **13900836** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

The net assets recognized in the consolidated financial statements as of December 31, 2021, were based on a provisional assessment of their fair value and could be adjusted in case of obtaining new information as referred to in paragraph 46 of IFRS 3.

In August 2022, the valuation was completed, considering the new information obtained to the acquisition date, and the fair value of the properties, plant, and equipment was $17,486,901, and intangibles $13,903,491, which presented a decrease of $153,557, and $422,988, respectively, over the provisional value. Those adjustments were not material thus the financial information as of December 2021 was not restated. As a result, there was a decrease in the deferred tax liability of $96,767 and a decrease in the non-controlling interest of $238,839. There was also a corresponding increase in goodwill of $240,939, resulting in $3,279,916 of total goodwill arising on the acquisition. The increased depreciation charge on the property, plant, and equipment, from the acquisition date to 31 December 2021 was also not material.

From the date of acquisition, ISA contributed $4,113,198 of revenue and $1,108,202 (including non-controlling interest for $846,454) to net profit from continuing operations of the Group. If the combination had taken place at the beginning of 2021, the Group's revenue from continuing operations would have been higher by $7,039,487, and the profit before tax from continuing operations would have been $2,096,511 (including non-controlling interest for $1,501,984). The goodwill of $3,279,916 comprises the fair value of expected synergies arising from acquisition.

**13.** **Investments in associates and joint ventures**

**13.1** **.**Composition and movements

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Join ventures** |  |  |
| &nbsp;&nbsp;Equion Energía Limited | 1104034 | 1860634 |
| &nbsp;&nbsp;Interligação Elétrica do Madeira S.A. | 1771903 | 1374483 |
| &nbsp;&nbsp;Transmissora Aliança de Energia Elétrica S.A. | 1745002 | 1496060 |
| &nbsp;&nbsp;Interligação Elétrica Paraguaçu S.A. | 569717 | 412526 |
| &nbsp;&nbsp;Interligação Elétrica Ivaí S.A. | 417904 | 288224 |
| &nbsp;&nbsp;Interligação Elétrica Garanhuns S.A. | 501036 | 363498 |
| &nbsp;&nbsp;Interligação Elétrica Aimorés S.A. | 383533 | 278408 |
| &nbsp;&nbsp;Conexión Kimal Lo Aguirre S.A. (1) | 119475 |  |
| &nbsp;&nbsp;Ecodiesel Colombia S.A. | 61936 | 64019 |
| &nbsp;&nbsp;Interconexión Eléctrica Colombia Panamá S.A. | 17608 | 8737 |
| &nbsp;&nbsp;Transnexa S.A. E.M.A. | 8545 | 8545 |
| &nbsp;&nbsp;Derivex S.A. | 179 | 448 |
| &nbsp;&nbsp;Parques de Rio | 85 | 93 |
| &nbsp;&nbsp;Interconexión Eléctrica Colombia Panamá S.A.S E.S.P. | 4 | 4 |
|  | **6700961** | **6155679** |
| &nbsp;&nbsp;Less impairment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equion Energía Limited | (398104) | (398104) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transnexa S.A. E.M.A. | (8545) | (8545) |
|  | **6294312** | **5749030** |
| **Associates** |  |  |
| &nbsp;&nbsp;Gases del Caribe S.A. E.S.P. | 1466842 | 1515838 |
| &nbsp;&nbsp;ATP Tower Holdings | 893993 | 813697 |
| &nbsp;&nbsp;Gas Natural del Oriente S.A. E.S.P. | 143584 | 142508 |
| &nbsp;&nbsp;Gases de la Guajira S.A. E.S.P. | 68490 | 69461 |
| &nbsp;&nbsp;E2 Energía Eficiente S.A. E.S.P. | 34755 | 35062 |
| &nbsp;&nbsp;Extrucol S.A. | 27911 | 28578 |
| &nbsp;&nbsp;Serviport S.A. | 8398 | 9399 |
| &nbsp;&nbsp;Sociedad Portuaria Olefinas | 3625 | 3012 |
|  | **2647598** | **2617555** |
| &nbsp;&nbsp;Less impairment: Serviport S.A. | (9399) | (9399) |
|  | **2638199** | **2608156** |
|  | **8932511** | **8357186** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) In July 2022, ISA Inversiones Chile, Transelec, and China Southern Power Grid International (CSG) established the company Conexión Kimal Lo Aguirre S.A. This company will build and operate the Kimal-Lo Aguirre project in Chile obtained in 2021.

The movement of investments in associates and joint ventures for the period ended September 30, 2022, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Associates** | **Join ventures** | **Total** |
| **Balance as of December 31, 2021** | **2608156** | **5749030** | **8357186** |
| Capitalizations (1) |  | 209658 | 209658 |
| Equity method recognized in: |  |  |  |
| &nbsp;&nbsp;Profit or loss | 117635 | 539045 | 656680 |
| &nbsp;&nbsp;Equity | 103059 | 913159 | 1016218 |
| Dividends declared (2) | (190651) | (1116580) | (1307231) |
| **Balance as of September 30, 2022 (Unaudited)** | **2638199** | **6294312** | **8932511** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;(1) The capitalizations correspond to $119,475 for Conexión Kimal Lo Aguirre S.A., $41,912 for Interligação Elétrica Ivaí S.A., $27,662 for Interligação Elétrica Paraguaçu S.A., $11,807 for Interconexión Eléctrica Colombia Panamá S.A., and $8,802 for Interligação Elétrica Aimorés S.A.

&nbsp;&nbsp;&nbsp;&nbsp;(2) During 2022, the company received dividends corresponding to $1,179,338 . The payment of dividends was mainly made by Equion Energía Limited for $929,265 , join ventures of Interconexión Eléctrica S.A. E.S.P. for $159,315 , and associates of Inversiones de Gases de Colombia S.A. for $90,758 .

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**14.** **Property, plant, and equipment**

The movement of property, plant and equipment for the period ended September 30, 2022, with its corresponding depreciation and impairment, is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Plant and**<br>**equipment** | **Pipelines,**<br>**networks, and**<br>**lines** | <br>**Work in**<br>**progress** | <br>**Buildings** | <br>**Lands** | <br>**Other** | <br>**Total** |
| **Cost** |  |  |  |  |  |  |  |
| **Balance as of December 31, 2021** | **57452843** | **55402633** | **10566114** | **9660227** | **4800297** | **3018660** | **140900774** |
| &nbsp;&nbsp;Additions/capitalizations (1) | 1634109 | 858368 | 2399373 | 267638 | 3021 | 97396 | 5259905 |
| &nbsp;&nbsp;Abandonment cost update (Note 23) |  | (137525) |  |  |  |  | (137525) |
| &nbsp;&nbsp;Capitalized financial interests (2) | 47256 | 17463 | 57034 | 5580 | 115 | 1602 | 129050 |
| &nbsp;&nbsp;Exchange differences capitalized | 413 | 153 | 499 | 49 | 1 | 14 | 1129 |
| &nbsp;&nbsp;Disposals | (472252) | (175679) | (10461) | (39234) | (30) | (29227) | (726883) |
| (Decrease) increase related to business combination (Note 12) |  | (176451) |  | 37542 | (14649) |  | (153558) |
| &nbsp;&nbsp;Effect of adopting new standards (3) |  |  | 18013 |  |  |  | 18013 |
| &nbsp;&nbsp;Foreign currency translation | 5328047 | 2639349 | 251649 | 408531 | 288802 | 160860 | 9077238 |
| &nbsp;&nbsp;Reclassifications/transfers | (3725364) | 722699 | (794664) | 3275900 | (4872) | (35389) | (561690) |
| **Balance as of September 30, 2022 (Unaudited)** | **60265052** | **59151010** | **12487557** | **13616233** | **5072685** | **3213916** | **153806453** |
| **Accumulated depreciation and impairment losses** |  |  |  |  |  |  |  |
| **Balance as of December 31, 2021** | **(24698837)** | **(19665052)** | **(1279600)** | **(4059253)** | **(67611)** | **(1053895)** | **(50824248)** |
| &nbsp;&nbsp;Depreciation expense | (2048209) | (1724015) |  | (288150) |  | (118253) | (4178627) |
| &nbsp;&nbsp;Impairment loss (Note 18) | (1965) |  |  | (3551) |  |  | (5516) |
| &nbsp;&nbsp;Disposals | 456383 | 159015 |  | 34151 |  | 23999 | 673548 |
| &nbsp;&nbsp;Foreign currency translation | (2015610) | (989196) | (1705) | (126549) | (6053) | (87650) | (3226763) |
| &nbsp;&nbsp;Reclassifications/transfers | 1307058 | (35315) | 7004 | (762361) |  | (762) | 515624 |
| **Balance as of September 30, 2022 (Unaudited)** | **(27001180)** | **(22254563)** | **(1274301)** | **(5205713)** | **(73664)** | **(1236561)** | **(57045982)** |
| &nbsp;&nbsp;Balance as of December 31, 2021 | 32754006 | 35737581 | 9286514 | 5600974 | 4732686 | 1964765 | 90076526 |
| &nbsp;&nbsp;**Balance as of September 30, 2022 (Unaudited)** | **33263872** | **36896447** | **11213256** | **8410520** | **4999021** | **1977355** | **96760471** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;(1) Mainly includes: i) Ecopetrol S.A. projects in courses associated with the Caño Sur, Castilla, Chichimene, Cusiana, and Rubiales fields, ii) Interconexión Eléctrica S.A. E.S.P projects in progress: Caribbean Coast Interconnection, UPME 09-2016 Copey–Cuestecitas, UPME 06-2018 New Substation El Rio 220kV, UPME 07–2017 Sabanalarga – Bolívar 500kV, UPME 04-2019 Transmission Line La Loma - Sogamoso 500kV, Second Circuit Copey - Cuestecitas 500kV project, and Alpha and Beta wind farm connection project new Cuestecitas 500kV substation.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial interest is capitalized based on the weighted average rate of loan costs.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Corresponds to the effect of adopting the IAS 16 amendment in Hocol S.A.

**15.** **Natural and environmental resources**

The movement of natural and environmental resources for the period ended September 30, 2022, with their corresponding depletions and impairment, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Oil and gas**<br>**investments** | **Assets retirement**<br>**obligations** | **Exploration and**<br>**evaluation** | <br>**Total** |
| **Cost** |  |  |  |  |
| **Balance as of December 31, 2021** | **76229481** | **8172698** | **7212305** | **91614484** |
| &nbsp;&nbsp;Additions/capitalizations (1) | 4208480 |  | 3264075 | 7472555 |
| &nbsp;&nbsp;Abandonment cost update (Note 23) |  | (51227) |  | (51227) |
| &nbsp;&nbsp;Disposals (2) | (759178) | (107815) | (4505) | (871498) |
| &nbsp;&nbsp;Write off exploratory assets and dry wells (3) |  |  | (436980) | (436980) |
| &nbsp;&nbsp;Capitalized financial interests (4) | 75504 |  | 62317 | 137821 |
| &nbsp;&nbsp;Exchange differences capitalized  | 660 |  | 545 | 1205 |
| &nbsp;&nbsp;Effect of adopting new standards (5) |  |  | 48173 | 48173 |
| &nbsp;&nbsp;Foreign currency translation | 3218959 | 95721 | 541338 | 3856018 |
| &nbsp;&nbsp;Reclassifications/transfers | 1080686 | (9097) | (1095069) | (23480) |
| **Balance as of September 30, 2022 (Unaudited)** | **84054592** | **8100280** | **9592199** | **101747071** |
| **Accumulated depletion and impairment losses** |  |  |  |  |
| **Balance as of December 31, 2021** | **(51316344)** | **(4230674)** | **(157622)** | **(55704640)** |
| &nbsp;&nbsp;Depletion expense | (3286865) | (522165) |  | (3809030) |
| &nbsp;&nbsp;Disposals | 419374 | 89405 |  | 508779 |
| &nbsp;&nbsp;Foreign currency translation | (1721997) | (62189) |  | (1784186) |
| &nbsp;&nbsp;Reclassifications/transfers | 43046 | (41502) | 5760 | 7304 |
| **Balance as of September 30, 2022 (Unaudited)** | **(55862786)** | **(4767125)** | **(151862)** | **(60781773)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance as of December 31, 2021 | 24913137 | 3942024 | 7054683 | 35909844 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Balance as of September 30, 2022 (Unaudited)** | **28191806** | **3333155** | **9440337** | **40965298** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Mainly includes a) Ecopetrol Permian for investments made in the drilling of wells and construction of facilities executed in RODEO, b) Ecopetrol S.A. by Cantagallo, Casabe, Castilla, Floreña, Provincia, Rubiales, and exploratory wells in Cupiagua and Uchuva c) Hocol S.A. mainly from VIM8, Guarrojo, Guajira, VIM8, SN-15, SSJN1, and Cicuco.

&nbsp;&nbsp;&nbsp;&nbsp;(2) It mainly corresponds to the exit of Rygberg's association contract in Ecopetrol America.

&nbsp;&nbsp;&nbsp;&nbsp;(3) It mainly includes a) Saturno block in Ecopetrol Brazil related to the entry bond, b) dry wells in Hocol S.A.: Bololó and Pilonera, and failure of Chinchorro well, and c) dry well in Ecopetrol S.A.: Boranda Norte 1.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial interest is capitalized based on the weighted average rate of loan costs.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Corresponds to the effect of adoption of the IAS 16 amendment, includes Ecopetrol S.A. and Hocol S. A..

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**16.** **Right-of-use assets**

The movement of right-of-use assets and lease liabilities for the period ended September 30, 2022, is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Right-of-use assets** | **Right-of-use assets** | **Right-of-use assets** | **Right-of-use assets** | **Right-of-use assets** | **Right-of-use assets** |
|  | <br>**Pipelines** | <br>**Lands and** <br>**buildings** | <br>**Plant and**<br>**equipment** | <br>**Vehicles**  | **Right-of-**<br>**use**<br>**assets** | **Lease**<br>**liabilities**<br>**(Note 20.1)** |
| **Balance as of December 31, 2021** | **77019** | **199070** | **121384** | **99205** | **496678** | **1165099** |
| &nbsp;&nbsp;Additions | 33688 | 69656 | 61004 | 85226 | **249574** | 249574 |
| &nbsp;&nbsp;Amortization of the period | (18133) | (43240) | (42356) | (71827) | **(175556)** |  |
| &nbsp;&nbsp;Remeasurements(1) | (110) | (5828) | 5105 | 11952 | **11119** | 16183 |
| &nbsp;&nbsp;Disposals | (3109) | (1599) | (17966) | (214) | **(22888)** | (23280) |
| &nbsp;&nbsp;Finance cost  |  |  |  |  | **—** | 50366 |
| &nbsp;&nbsp;Payment of capital and interests |  |  |  |  | **—** | (311696) |
| &nbsp;&nbsp;Reclassifications/transfers | (540) | 208 | 551 | (43) | **176** | (2238) |
| &nbsp;&nbsp;Exchange difference | 5526 | 24106 | 4445 | 12152 | **46229** | 52195 |
| **Balance as of September 30, 2022 (Unaudited)** | **94341** | **242373** | **132167** | **136451** | **605332** | **1196203** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Corresponds mainly to updating rates and conditions in lease contracts

.

**17.** **Intangible assets**

The movement of intangibles assets for the period ended September 30, 2022, with their corresponding amortizations, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Licenses** <br>**and**<br>**software** | <br>**Other**<br>**intangibles** | <br>**Concessions**<br>**and rights** | <br>**Easements** | <br>**Total** |
| **Cost** |  |  |  |  |  |
| **Balance as of December 31, 2021** | **1118811** | **940080** | **13503441** | **1733379** | **17295711** |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions/capitalizations | 198295 | 11507 | 488761 | 3434 | 701997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) related to business combination (Note 12) |  | 12670 | (117270) | (318389) | (422989) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals | (6208) |  | (95875) |  | (102083) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation | 46737 | 210171 | 2250536 | 57336 | 2564780 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassifications/transfers | 4158 | (1068) | 530 | 16958 | 20578 |
| **Balance as of September 30, 2022 (Unaudited)** | **1361793** | **1173360** | **16030123** | **1492718** | **20057994** |
| **Accumulated amortization and impairment losses** |  |  |  |  |  |
| **Balance as of December 31, 2021** | **(689817)** | **(153292)** | **(878125)** | **(65961)** | **(1787195)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | (94266) | (22889) | (472193) | (4265) | (593613) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposals | 3231 |  | 95875 |  | 99106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation | (39181) | (147467) | (579720) |  | (766368) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassifications/transfers | 107 | (274) | 25 |  | (142) |
| **Balance as of September 30, 2022 (Unaudited)** | **(819926)** | **(323922)** | **(1834138)** | **(70226)** | **(3048212)** |
| &nbsp;&nbsp;Balance as of December 31, 2021 | 428994 | 786788 | 12625316 | 1667418 | 15508516 |
| &nbsp;&nbsp;**Balance as of September 30, 2022 (Unaudited)** | **541867** | **849438** | **14195985** | **1422492** | **17009782** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**18.** **Impairment of non-current assets**

According to the behavior of the key market assumptions, as of September 30, 2022, no factors or circumstances were identified that indicate that the book value of its assets may be above its recoverable value, considering the market conditions, the international prices and indicators of crude oil and products, and the geopolitical context, particularly, produced by the conflict between Russia and Ukraine (See note 2.4).

As of September 30, 2022, no indicators of impairment exist for non-current assets, especially considering the higher prices of crude oil and products during the nine-month period of 2022. The most significant movements in 2022 are presented mainly by the impairment recognized in office-type containers of $5,540 in Refinería de Cartagena S.A.S. and a recovery of $24 in Invercolsa. In 2021, the movement corresponds to the recovery related to materials for $4,320 in Refinería de Cartagena S.A.S. and Cenit, and an impairment recognition in Ocensa and ISA for $2,557.

**19.** **Goodwill**

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Interconexión Eléctrica S.A. E.S.P. (1) | 3643922 | 3092045 |
| Oleoducto Central S.A. | 683496 | 683496 |
| Hocol Petroleum Ltd | 537598 | 537598 |
| Invercolsa S.A. | 434357 | 434357 |
| Andean Chemical Limited | 127812 | 127812 |
| Esenttia S.A. | 108137 | 108137 |
|  | **5535322** | **4983445** |
| Less Impairment Hocol Petroleum Ltd | (297121) | (297121) |
| **Total** | **5238201** | **4686324** |

---

(1)The variation corresponds to the updating related to the final purchase price allocation in business combination process.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**20.** **Loans and borrowings**

**20.1.**Composition of loans and borrowings

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest rate\*** | **Interest rate\*** | | |
|  | **2022** | **2021** | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  |  |  | **(Unaudited)** |  |
| **Local currency** |  |  |  |  |
| &nbsp;&nbsp;Bonds | 9.8% | 9.1% | 5197949 | 4941024 |
| &nbsp;&nbsp;Syndicate loans | 11.8% | 5.4% | 443541 | 600452 |
| &nbsp;&nbsp;Lease liabilities (1) | 7.6% | 6.3% | 829123 | 823922 |
| &nbsp;&nbsp;Commercial loans and others | 10.2% | 7.8% | 1775097 | 1516377 |
|  |  |  | **8245710** | **7881775** |
| **Foreign currency** |  |  |  |  |
| &nbsp;&nbsp;Bonds (2) | 6.1% | 5.7% | 77547079 | 66603695 |
| &nbsp;&nbsp;Commercial and syndicate loans | 4.6% | 3.5% | 20810085 | 18750580 |
| &nbsp;&nbsp;Loans from related parties (Nota 31) | 2.7% | 0.3% | 770036 | 1483701 |
| &nbsp;&nbsp;Lease liabilities (1) | 6.0% | 6.0% | 367080 | 341177 |
|  |  |  | **99494280** | **87179153** |
|  |  |  | **107739990** | **95060928** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current |  |  | 22614434 | 9206283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non–current |  |  | 85125556 | 85854645 |
|  |  |  | **107739990** | **95060928** |

---

\* Weighted average effective interest rate for the end of each period.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Corresponds to the present value of the payments to be made during the term of the operating lease contracts for pipelines, tanks, real estate, and vehicles, recognized because of the implementation of IFRS 16 – Leases. See Note 16.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Corresponds to the increase in the exchange rate of $609 Colombian pesos per dollar.

During 2022, proceeds obtained from loans and borrowings totaled $10,458,560. The most significant loans and borrowings were obtained by: a) Ecopetrol S.A. for $6,010,259, which entered into i) a financing line for $5,384,315 (USD$1,200 million) for the advance payment of the credit contracted for the acquisition of ISA, and ii) a short-term financing with BNP Paribas for $625,944 (USD$160 million), and b) Interconexión Eléctrica S.A. E.S.P. for $4,369,744, of which $2,063,735 relates to an international issuance of corporate bonds issued by its the subsidiary, Consorcio Transmantaro S.A. for the repurchase of its 2023 international bond, and the remaining balance related to loans obtained to cover investment plans and projects in Brazil, Peru, and Chile.

The repayment of loans and borrowings totaled $11,614,789, and it mainly includes the advance payment of the credit contracted for the acquisition of ISA and the repurchase of international bonds issued by Consorcio Transmantaro S.A.

**20.2.** **Fair value**

The fair value of the financial obligations is $99,947,506 and $99,258,034 as of September 30, 2022 (unaudited) and December 31, 2021, respectively.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**20.3.**Maturity

The following is the maturity profile of loans and borrowings as of September 30, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Up to 1 year**  | **1 – 5 years** | **5-10 years** | **> 10 years** | **Total** |
| **Local currency** |  |  |  |  |  |
| &nbsp;&nbsp;Bonds | 380320 | 1276812 | 1528337 | 2012480 | 5197949 |
| &nbsp;&nbsp;Syndicate loans | 253128 | 190413 |  |  | 443541 |
| &nbsp;&nbsp;Lease liabilities | 167326 | 412358 | 248716 | 723 | 829123 |
| &nbsp;&nbsp;Commercial loans and others | 283806 | 565368 | 619110 | 306813 | 1775097 |
|  | **1084580** | **2444951** | **2396163** | **2320016** | **8245710** |
| **Foreign currency** |  |  |  |  |  |
| &nbsp;&nbsp;Bonds | 11776966 | 25921456 | 22370391 | 17478266 | 77547079 |
| &nbsp;&nbsp;Syndicate loans | 1891747 | 4193005 | 28142 |  | 6112894 |
| &nbsp;&nbsp;Commercial loans  | 6977769 | 7325784 | 266320 | 127318 | 14697191 |
| &nbsp;&nbsp;Lease liabilities | 113336 | 220051 | 33693 |  | 367080 |
| &nbsp;&nbsp;Loans from related parties | 770036 |  |  |  | 770036 |
|  | **21529854** | **37660296** | **22698546** | **17605584** | **99494280** |
| **Balance as of September 30, 2022 (Unaudited)** | **22614434** | **40105247** | **25094709** | **19925600** | **107739990** |

---

**20.4.** **Loans designated as hedging instrument**

As of September 30, 2022 (unaudited), Ecopetrol Business Group has designated USD$14,089 million of debt in foreign currency as a hedging instrument; of which, USD$9,117 million correspond to the hedge of investments in companies with dollar functional currency and USD$4,972 million to the cash flow hedge for future crude oil exports. See Note 30.1 – Exchange rate risk.

**20.5.**Guarantees and covenants (unaudited)

As of September 30, 2022, the total value of the current guarantees provided by Interconexión Eléctrica S.A. E.S.P. and its companies, within the framework of the definition of paragraph 14 of IFRS 7, used to support growth in its different business units and ensure strategic commercial and operational viability amount to $20,252,997, mainly in: a) Chile for $15,132,439 in ISA Intervial, Ruta de la Araucaria, Ruta del Maipo, Ruta de los Ríos, Ruta del Loa, and ISA Interchile, b) Colombia in Ruta Costera for $2,679,000, and c) Brazil in ISA CTEEP for $2,441,558.

The syndicated loan acquired by Oleoducto Bicentenario de Colombia S.A.S. establishes as a requirement that this subsidiary maintain an established relationship of leverage and solvency and cash flow/debt service.

#### 21 . Trade and other payables

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Current** |  |  |
| &nbsp;&nbsp;Suppliers | 11780282 | 10470260 |
| &nbsp;&nbsp;Dividends payable (1) | 1958736 | 58668 |
| &nbsp;&nbsp;Withholding tax | 970447 | 717720 |
| &nbsp;&nbsp;Partner's advances | 900259 | 1060349 |
| &nbsp;&nbsp;Insurance and reinsurance | 478976 | 294114 |
| &nbsp;&nbsp;Deposits received from third parties  | 145989 | 136310 |
| &nbsp;&nbsp;Related parties (Note 31) | 73403 | 66598 |
| &nbsp;&nbsp;Agreements in transport contracts  | 31816 | 33883 |
| &nbsp;&nbsp;Hedging operations (2) | 13101 | 2032 |
| &nbsp;&nbsp;Various creditors  | 736940 | 728297 |
|  | **17089949** | **13568231** |
| **Non-current** |  |  |
| &nbsp;&nbsp;Suppliers | 24544 | 8260 |
| &nbsp;&nbsp;Various creditors  | 38988 | 62347 |
|  | **63532** | **70607** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Corresponds mainly to dividends payable by Ecopetrol S.A. for $1,589,000 (2021: $3,714), Interconexión Eléctrica S.A. $215,150 (2021: 53,976), Inversiones de Gases de Colombia S.A. $74,696 (2021: 978), Oleoducto de Colombia S.A. $45,155 , and Oleoducto de los Llanos Orientales S.A. $34,735 .

&nbsp;&nbsp;&nbsp;&nbsp;(2) Corresponds to the balance payable for the liquidation of swap contracts acquired to hedge the price risk of export crude oil.

The book values of trade accounts and other accounts payable approximate their fair values due to the short-term nature of these accounts.

**22.** **Provisions for employees' benefits**

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Post-employment benefits |  |  |
| &nbsp;&nbsp;Health | 6751292 | 6636809 |
| &nbsp;&nbsp;Pension | 3748424 | 2159530 |
| &nbsp;&nbsp;Education | 431243 | 443761 |
| &nbsp;&nbsp;Bonds | 515969 | 320833 |
| &nbsp;&nbsp;Other plans | 108051 | 91476 |
| Termination benefits - Voluntary retirement plan | 675210 | 746585 |
|  | **12230189** | **10398994** |
| Social benefits and salaries | 874892 | 856198 |
| Other long-term benefits | 135209 | 123853 |
|  | **13240290** | **11379045** |
| Current | 2217195 | 2296253 |
| Non-current | 11023095 | 9082792 |
|  | **13240290** | **11379045** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**22.1.**Plans assets

The assets of the plan are represented by the resources delivered to the Autonomous Pension Funds for the payment of the pension liability of the obligations for pension and pension bonds; what concerns health and education oversees Ecopetrol S.A.. The destination of the resources of the autonomous patrimonies, as well as their yields, cannot be changed or returned to the Company until all the obligations are fulfilled.

Plan asset balance is $10,429,486 and $12,068,525 as of September 30, 2022 (unaudited) and December 31, 2021, respectively. 53,65% (2021 – 36.99%) are fair value level 1 and 46.35% (2021 – 63.01%) are under level 2 category.

**23.** **Accrued liabilities and provisions**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Abandonment**<br>**and dismantling**<br>**costs** | <br>**Litigations** | **Environmental**<br>**contingencies**<br>**and others** | <br>**Total** |
| **Balance as of December 31, 2021** | **11890319** | **703966** | **1637922** | **14232207** |
| &nbsp;&nbsp;Abandonment cost update | (188752) |  |  | (188752) |
| &nbsp;&nbsp;Additions  | 842 | 55573 | 290573 | 346988 |
| &nbsp;&nbsp;Uses | (433543) | (24409) | (203844) | (661796) |
| &nbsp;&nbsp;Financial cost | 250943 | 8132 | 9700 | 268775 |
| &nbsp;&nbsp;Foreign currency translation | 142899 | 53342 | 70517 | 266758 |
| &nbsp;&nbsp;Reversal of provision for sale of assets (1) | (188540) |  |  | (188540) |
| &nbsp;&nbsp;Transfers | 2492 | (8762) | (22056) | (28326) |
| **Balance as of September 30, 2022 (Unaudited)** | **11476660** | **787842** | **1782812** | **14047314** |
| &nbsp;&nbsp;Current | 538453 | 65059 | 514798 | 1118310 |
| &nbsp;&nbsp;Non-current | 10938207 | 722783 | 1268014 | 12929004 |
|  | **11476660** | **787842** | **1782812** | **14047314** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Corresponding to the provision for abandonment associated with the assets related to the participation of Ecopetrol S.A. in Casanare, Estero, Garcero, Orocué and Corocora Join Venture (CEGOC), which were sold to Perenco Oil and Gas Colombia. This transaction closed on August 26, 2022.

**23.1.**Contingencies

#### Refinería de Cartagena S.A.S
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Court of arbitration** 

On April 29, 2022, the International Chamber of Commerce extended the time for the arbitration process to November 20, 2022.

Once the arbitration process is completed, the filing of an annulment appeal may proceed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Investigations of control entities** 

Prosecutor's Office:

To date, three legal proceedings are being carried out arising from the events related to the expansion and modernization project of the Refinería de Cartagena (the "project").

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**Process 1 – No. 110016000101201600023 - MOA - PIP and EPC**

This process is being carried out against some ex-members of the Board of Directors and ex-workers of the Cartagena Refinery, workers of the Chicago Bridge and Iron Company (CB&I) and the Statutory Auditor of the Cartagena Refinery between 2013 and 2015, for the crimes of improper interest in the execution of contracts, embezzlement by appropriation in favor of third parties, illicit enrichment of individuals in favor of third parties and ideological falsehood in public documents.

On March 29, 2022, a hearing was held to lift the house arrest measure for Felipe Laverde Concha and on April 5, 2022, the 34th Municipal Criminal Court with a Function of Guarantees granted him freedom due to the expiration of terms.

From July 25 to 29, 2022, the preparatory hearing was held, where the interlocutory order of decree of evidence was issued, against which the defenders filed appeals. The appeals were granted and will be resolved by the Superior Court of Bogotá.

**Process 2 – No. 110016000101201800132 Business line**

This process is being carried out against ex-members of the Board of Directors and an ex-employee of the Refinería de Cartagena for the crimes of aggravated unfair administration and obtaining a false public document against ex-members of the Board of Directors of the Refinery and an ex-President of this company.

On November 18, 2019, the preparatory trial hearing was installed, which has been resumed on several occasions, but to date it is suspended pending rescheduling.

No changes occurred in the status of this litigation since December 31, 2021.

**Process 3 – No. 110016000101201800134 - Subscription of the PMC Contract - Foster Wheeler**

This process is carried out against two ex-workers of Refinería de Cartagena who acted as ex-President in property and ex-President in charge, for the crime of entering a contract without legal requirements, for the period for which the accusation is made.

On February 7, 2022, the oral trial began, and the evidence requested by the FGN, and the defense was taken. On April 5, 2022, the practice of evidence concluded.

On May 10, 2022, at the hearing of closing arguments, the 9th Circuit Criminal Judge announced the sense of the conviction against two former workers of the Cartagena Refinery for entering a contract without legal requirements.

On August 18, 2022, a sentence was handed down imposing the minimum sentence for the crime charged, equivalent to 64 months in prison and a fine of 66.66 current monthly legal minimum salaries in Colombia (SMLMV as its acronym in Spanish), a decision against which appeals were filed, which will be resolved by the Superior Court of Bogotá.

The defendants will remain free until the appeals are resolved and, if applicable, the extraordinary appeal before the Supreme Court of Justice.

Office of the Comptroller General (Contraloría General de la Nación – CGR):

**Financial Audit for the 2021**

The CGR carried out a financial audit of Refinería de Cartagena between January 20, 2022, and May 31, 2022.

On July 5, 2022, the improvement plan for two findings that are administrative in nature was uploaded to the CGR's SIRECI application.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**Fiscal Responsibility Process**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) PRF-2018-00684-PRF-017-2018

Due to the late entry into operation that generated lost profits, the CGR is carrying out an independent process in which various requirements have been met.

Through order 0167 dated February 3, 2022, the CGR has ended the litigation related to the tax liability process for lost profits, that is, for the possible damage associated with the late entry into operation of the refinery, which was initially estimated at $1,936 million dollars. Since the Company did not have a provision recorded for this matter, the resolution of this litigation has no impact in the interim condensed consolidated financial statements.

Among the fundamentals for the decision are the non-existence of the damage and the non-accreditation of injury to public property, since the circumstances that caused the late entry into operation of the refinery were due to a series of situations unrelated to the managerial decisions of those investigated, such as, the winter wave, the labor abnormality presented in the execution of the project, among others.

By order of March 1, 2022, the Fiscal and Sanctioning Decision Chamber of the CGR decided to confirm the termination of this litigation. Additionally, it ordered to carry out "monitoring and supervision of the investment and production of the refinery to determine losses due to foregone profits, as a consequence of the damage determined in the ruling with fiscal responsibility No. 749 of April 26, 2021, and confirmed by order 801119 -158-021 of July 6, 2021".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) PRF-80011-2018-33300

No changes occurred in the status of this litigation since December 31, 2021.

**24.** **Equity**

**24.1.**Subscribed and paid–in capital

Ecopetrol's authorized capital is $36,540,000, and is divided in 60,000,000,000 ordinary shares, of which 41,116,694,690 have been subscribed, represented by 11.51% (4,731,906,273 shares) of non-government entities and people, and 88.49% (36,384,788,417 shares) held by Government entities. The value of the reserve shares amounts to $11,499,933 comprised by 18,883,305,310 shares. As of September 30, 2022, and December 31, 2021, subscribed and paid-in capital is $25,040,067. There is no potential dilution of shares.

**24.2.**Additional and paid–in capital

It mainly corresponds to: (i) surplus with respect to its nominal value derived from the sale of shares upon capitalization in 2007, for $4,457,997, (ii) $31,377 the value generated by the process of placing the shares on the secondary market, arising from the calling of guarantees from debtors in arrears, according to the provisions of Article 397 of the Code of Commerce, (iii) surplus over nominal value arising from the sale of shares awarded in the second round, which took place in September 2011, in the amount of $2,118,468, and (iv) additional paid-in capital receivable of $(143).

**24.3.**Equity reserves

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Legal reserve | 6407256 | 4737788 |
| Fiscal and statutory reserves | 509082 | 509082 |
| Occasional reserves (1) | 1982295 | 5377359 |
| **Total** | **8898633** | **10624229** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Ecopetrol's General Shareholders' Meeting, held on March 30, 2022, approved the 2021 profit distribution project, and recognized a reserve of $8,889,900 (2021: $5,377,359) to support financial sustainability of the Company and flexibility in the development of its strategy. The Extraordinary General Assembly of June 17, 2022, approved the modification of the destination of a part of the occasional reserve to distribute it as an extraordinary dividend for $6,907,605 .

The movement of the equity reserves in the periods ended September 30, is the following:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **September 30,** <br>**2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Opening balance** | 10624229 | 9635136 |
| &nbsp;&nbsp;Release of reserves | (5886441) | (5066156) |
| &nbsp;&nbsp;Appropriation of reserves | 11068450 | 6055249 |
| &nbsp;&nbsp;Dividends declared | (6907605) |  |
| **Closing balance** | **8898633** | **10624229** |

---

**24.4.**Retained earnings and payment of dividends

The Group distributes dividends based on its financial statements prepared under International Financial Reporting Standards accepted in Colombia (NCIF, as its acronym in Spanish).

The Ordinary General Assembly of Shareholders of Ecopetrol S.A., held on March 30, 2022, approved the profit distribution project for fiscal year 2021 and defined the distribution of dividends in the amount of $11,512,675 (distribution during 2021: $698,984). The due date for the payments of the ordinary and extraordinary dividends to the minority shareholders was April 21, 2022, and, throughout 2022, in the case of the majority shareholder.

Additionally, the Extraordinary General Assembly of Ecopetrol S.A. of June 17, 2022, approved the modification of the destination of a part of the occasional reserve to distribute it as an extraordinary dividend for $6,907,605. The payment was made in June 2022, for minority shareholders in a single payment, and for the majority shareholder, the entirety of this dividend was offset with the receivable account related to the Fuel Price Stabilization Fund, therefore, did not imply a cash outflow.

As of September 30, 2022, dividends of $11,186,951 (2021: $1,424,456) were paid by the following companies within the Ecopetrol Group: Ecopetrol S.A. $10,037,445 (2021: $696,387), Interconexión eléctrica S.A. E.S.P $356,773, Oleoducto Central S.A. $516,284 (2021: $484,829), Inversiones de Gases de Colombia S.A. $126,161 (2021: $103,203), Oleoducto de los Llanos Orientales S.A. $104,205 (2021: $99,263) and Oleoducto de Colombia S.A. $46,083 (2021: $40,774).

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**24.5.**Other comprehensive income

The following is the composition of the other comprehensive results attributable to the shareholders of the parent company, net of deferred income tax:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Foreign currency translation and others (1) | 25569813 | 17244256 |
| Hedges of a net investment in a foreign operation | (7919862) | (4364466) |
| Loss on defined benefit obligation | (1555320) | (517278) |
| Cash flow hedging - Future crude oil exports | (2540214) | (945250) |
| Cash flow hedging - Derivative financial instruments | (20687) | (61502) |
| Financial instruments measured at fair value | 725 | 2134 |
|  | **13534455** | **11357894** |

---

(1)The variation mainly corresponds to the increase in the exchange rate during 2022.

**24.6.**Earnings per share

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **September 30,** |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| Profit attributable to Ecopetrol's shareholders | 24770909 | 10217081 |
| Weighted average number of outstanding shares | 41116694690 | 41116694690 |
| **Net basic earnings per share (Colombian pesos)** | **602.5** | **248.5** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

#### 25 . Revenue from contracts with customers

---

| | | |
|:---|:---|:---|
|  | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| **National sales** |  |  |
| &nbsp;&nbsp;Mid-distillates (1) | 28031166 | 11431003 |
| &nbsp;&nbsp;Gasolines (1) | 20610595 | 10337295 |
| &nbsp;&nbsp;Natural gas (2) | 3016677 | 2280859 |
| &nbsp;&nbsp;Services | 2643135 | 2127151 |
| &nbsp;&nbsp;Electric power transmission services (3) | 1934461 | 156362 |
| &nbsp;&nbsp;Plastic and rubber | 1216431 | 1185041 |
| &nbsp;&nbsp;L.P.G. and propane | 807235 | 613302 |
| &nbsp;&nbsp;Asphalts | 634240 | 446739 |
| &nbsp;&nbsp;Fuel gas Service | 621349 | 537301 |
| &nbsp;&nbsp;Roads and construction services (3) | 255736 | 22607 |
| &nbsp;&nbsp;Aromatics | 242045 | 176646 |
| &nbsp;&nbsp;Polyethylene | 220975 | 272295 |
| &nbsp;&nbsp;Crude oil | 214587 | 136644 |
| &nbsp;&nbsp;Fuel oil | 4499 | 20920 |
| &nbsp;&nbsp;Other income – Gas contracts | 2679 | 5527 |
| &nbsp;&nbsp;Other products | 506575 | 284853 |
| &nbsp;&nbsp;Cash flow hedging (4) |  | (8) |
|  | **60962385** | **30034537** |
| **Foreign sales** |  |  |
| &nbsp;&nbsp;Crude oil (2) | 43946601 | 22608325 |
| &nbsp;&nbsp;Diesel | 1896842 | 2935295 |
| &nbsp;&nbsp;Roads and construction services (3) | 3209685 | 274729 |
| &nbsp;&nbsp;Electric power transmission services (3) | 3750829 | 505048 |
| &nbsp;&nbsp;Fuel oil | 3628416 | 1634934 |
| &nbsp;&nbsp;Plastic and rubber | 1621076 | 1558910 |
| &nbsp;&nbsp;L.P.G. and propane | 242581 | 58079 |
| &nbsp;&nbsp;Natural gas | 189665 | 39172 |
| &nbsp;&nbsp;Gasolines | 157685 |  |
| &nbsp;&nbsp;Cash flow hedging (4) | (968534) | (231014) |
| &nbsp;&nbsp;Other products (5) | 1261563 | 667793 |
|  | **58936409** | **30051271** |
|  | **119898794** | **60085808** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes the value corresponding to the application of Resolution 180522 of March 29, 2010, and other regulations that modify and add to it (Decree 1880 of 2014 and Decree 1068 of 2015), which establishes the procedure to recognize the subsidy for refiners and importers of regular motor gasoline and ACPM, and the methodology for calculating the net position (value generated between the parity price and the regulated price, which can be positive or negative). As of September 30, 2022, the value recognized for price differential corresponds to $26,584,199 (2021: $6,916,763).

&nbsp;&nbsp;&nbsp;&nbsp;(2) With the implementation of the IAS 16 Amendment on the management of the sale of products obtained in the project stage or extensive tests mandatory as of January 1, 2022, the Group recognizes as of that date, the income received from the product of the sale of hydrocarbons in the stage prior to their declaration of commerciality of the oil fields. The cost related to these revenues is disclosed in Note 26 – Cost of sales. As of September 30, 2022, the value recognized for extensive tests is as follows: natural gas for national sales $34,197 and crude oil for foreign sales $104,493 .

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;(3) Corresponds to the income derived from the energy transmission and road concession contracts of Interconexión Eléctrica S.A. E.S.P.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Includes the result of hedges for future exports (Note 30.3) for $(576,875) (2021: (151,791)) and operations with derivative financial instruments for $(391,659) (2021: (79,231)).

&nbsp;&nbsp;&nbsp;&nbsp;(5) Includes income from telecommunications services provided by Interconexión Eléctrica S.A. E.S.P. and the sale of asphalt, and other products by other Group Companies.

**26.** **Cost of sales**

---

| | | |
|:---|:---|:---|
|  | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Costs variables** |  |  |
| &nbsp;&nbsp;Imported products (1) | 23243685 | 11265184 |
| &nbsp;&nbsp;Purchases of crude in associations and concessions | 11712144 | 6801926 |
| &nbsp;&nbsp;Hydrocarbon purchases - ANH (2) | 6929845 | 3965823 |
| &nbsp;&nbsp;Depreciation, depletion, and amortization | 4985749 | 4956510 |
| &nbsp;&nbsp;Gas royalties in cash | 1073435 | 750987 |
| &nbsp;&nbsp;Electric Energy | 1074527 | 773844 |
| &nbsp;&nbsp;Hydrocarbon transportation services | 869983 | 664965 |
| &nbsp;&nbsp;Purchases of other products and gas | 879966 | 581821 |
| &nbsp;&nbsp;Processing materials | 828599 | 643876 |
| &nbsp;&nbsp;Services contracted in association | 239872 | 201624 |
| &nbsp;&nbsp;Extensive tests | 43289 |  |
| &nbsp;&nbsp;Others (3) | (1505246) | (3657378) |
|  | **50375848** | **26949182** |
| **Fixed cost** |  |  |
| &nbsp;&nbsp;Depreciation and amortization | 3382811 | 2238338 |
| &nbsp;&nbsp;Maintenance | 2652864 | 1737586 |
| &nbsp;&nbsp;Construction services | 1888186 | 183359 |
| &nbsp;&nbsp;Labor costs | 2438632 | 1800954 |
| &nbsp;&nbsp;Contracted services | 1919342 | 1292292 |
| &nbsp;&nbsp;Contracted services in associations | 1175197 | 919203 |
| &nbsp;&nbsp;Taxes and contributions | 725640 | 685268 |
| &nbsp;&nbsp;Materials and operating supplies | 452560 | 386994 |
| &nbsp;&nbsp;Hydrocarbon transportation services | 133837 | 42815 |
| &nbsp;&nbsp;General costs  | 313324 | 213451 |
|  | **15082393** | **9500260** |
|  | **65458241** | **36449442** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Imported products correspond mainly to gasoline, naphtha, and diluent to facilitate the transportation of heavy crude oil.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Corresponds mainly to royalty crude purchases made by Ecopetrol from the National Hydrocarbons Agency (ANH), derived from national production.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Corresponds to i) result of the process of use and valuation of core inventories, ii) measurement at net realizable value (NRV) and iii) other capitalizable charges to projects. The variation corresponds to a higher level of sold inventories of crude oil.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**27.** **Administrative, operation and project expenses**

---

| | | |
|:---|:---|:---|
|  | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Administration expenses** |  |  |
| &nbsp;&nbsp;General expenses | 1269973 | 962822 |
| &nbsp;&nbsp;Labor expenses | 1208844 | 856232 |
| &nbsp;&nbsp;Depreciation and amortization | 314566 | 74294 |
| &nbsp;&nbsp;Taxes | 51244 | 41209 |
|  | **2844627** | **1934557** |
| **Operation and project expenses** |  |  |
| &nbsp;&nbsp;Commissions, fees, freights, and services | 896113 | 453032 |
| &nbsp;&nbsp;Taxes | 562837 | 349726 |
| &nbsp;&nbsp;Labor expenses | 270162 | 224535 |
| &nbsp;&nbsp;Exploration expenses | 637590 | 536293 |
| &nbsp;&nbsp;Depreciation and amortization | 73700 | 115038 |
| &nbsp;&nbsp;Fee for regulatory entities | 123128 | 114843 |
| &nbsp;&nbsp;Maintenance | 82440 | 119253 |
| &nbsp;&nbsp;Other | 187553 | 80363 |
|  | **2833523** | **1993083** |

---

**28.** **Other operating income (expense)**

---

| | | |
|:---|:---|:---|
|  | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| Litigation and contingencies | (310406) | (400136) |
| Loss on sale of assets (1) | (38309) | (56548) |
| Impairment of current assets | (46434) | (18795) |
| Other income  | 92478 | 39922 |
|  | **(302671)** | **(435557)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) It mainly corresponds to the end of Rygberg's association contract in Ecopetrol America, and the profit on the sale of the total participation of Ecopetrol S.A. in the Casanare, Estero, Garcero, Orocué and Corocora Association (CEGOC). This sale of fields was made to itse partner Perenco Oil and Gas Colombia.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**29.** **Financial results**

---

| | | |
|:---|:---|:---|
|  | **Nine-month period ended September 30,**  | **Nine-month period ended September 30,**  |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
| **Finance income** |  |  |
| &nbsp;&nbsp;Yields and interests | 612914 | 130398 |
| &nbsp;&nbsp;Results from financial assets | 124493 | 87747 |
| &nbsp;&nbsp;Gain on derivatives valuation/ settlement | 11834 | 7497 |
| &nbsp;&nbsp;Other financial income | 138157 | 17121 |
|  | **887398** | **242763** |
| **Financial expenses** |  |  |
| &nbsp;&nbsp;Financial cost of loans and borrowings | (3886375) | (1867718) |
| &nbsp;&nbsp;Financial cost of other liabilities (1) | (1559080) | (698534) |
| &nbsp;&nbsp;Results from financial assets | (125493) | (75174) |
| &nbsp;&nbsp;Other financial expenses | (304929) | (132869) |
|  | **(5875877)** | **(2774295)** |
| **Foreign exchange**  |  |  |
| &nbsp;&nbsp;Foreign exchange loss | (377527) | (10387) |
| &nbsp;&nbsp;Realized gain of other comprehensive income from the sale of joint ventures |  | 361728 |
|  | **(377527)** | **351341** |
|  | **(5366006)** | **(2180191)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) It includes the financial expense for the updating of the liability for abandonment costs, and the interest, net of post-employment benefits and other long-term employee benefits.

**30.** **Risk management**

**30.1.** **Exchange rate risk**

The Group operates both in the local (Colombia) and international markets, for this reason, it is exposed to exchange rate risk, to a greater extent due to fluctuations in exchange rates, especially the peso/US dollar rate.

As of September 30, 2022, the Colombian peso appreciated 15.31% from a closing rate of $3,981.16 on December 31, 2021, to $4,590.54 pesos per dollar. When the Colombian peso depreciates, export revenues, when converted to pesos, increase, and imports and foreign debt service become more expensive.

The book values of financial assets and liabilities denominated in foreign currency are presented in the following table:

---

| | | |
|:---|:---|:---|
|  | **September 30,**  | **December 31,**  |
| **(USD$ Millions)** | **2022** | **2021** |
|  | **(Unaudited)** |  |
| Cash and cash equivalents | 454 | 388 |
| Other financial assets | 1078 | 408 |
| Trade receivables and payables | 196 | 423 |
| Loans and borrowings | (15886) | (15514) |
| Other assets and liabilities | 2 | 702 |
| **Net liability position** | **(14156)** | **(13593)** |

---

Of the total net position, USD$(13,499) million correspond to net liabilities of companies with Colombian peso functional currency, of which USD$(14,089) correspond to loans used as hedging instruments whose valuation is recognized in other comprehensive income,

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

the exchange difference valuation of the remaining net liabilities for USD$590 million affects the statement of profit and loss. Likewise, USD$(657) million of the net position correspond to monetary assets and liabilities of Group companies with a functional currency other than the Colombian peso, whose valuation is recognized in the profit or loss statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.2.** **Sensitivity analysis for exchange rate risk** 

The following is the effect that a variation of 1% and 5% would have in the exchange rate of Colombian pesos against the U.S. United States dollar, related to the exposure of financial assets and liabilities in foreign currency as of September 30, 2022:

---

| | | |
|:---|:---|:---|
| **Scenario / variation in the**<br>**exchange rate** | **Effect on income**<br>**before taxes +/–** | **Effect on other**<br>**comprehensive income +/** |
| 1% | 3094 | 646743 |
| 5% | 15471 | 3233713 |

---

**30.3.**Cash flow hedge for future exports

To express in the consolidated financial statements, the effect of the existing natural hedge between exports and indebtedness, understanding that the exchange rate risk materializes when exports are made, on September 30, 2015, the Board of Directors designated the sum of USD$5,440 million of Ecopetrol's debt as a hedging instrument for its future revenues from crude oil exports, for the period 2015 – 2023. As of September 30, 2022, the current balance of this hedging corresponds to USD$1,300 million.

In 2021 an additional USD$3,672 million were designated as a hedging instrument for its future revenues from crude oil exports, for the period 2022 – 2026; in accordance with IFRS 9 – Financial Instruments. The total amount designated as of September 30, 2022, for this hedging corresponds to USD$4,972 million.

The following is the movement of this non-derivative hedging instrument:

---

| | | |
|:---|:---|:---|
|  | **September 30,**  | **December 31,**  |
| **(USD$ Millions)** | **2022** | **2021** |
|  | **(Unaudited)** |  |
| **Opening balance** | **4972** | **1300** |
| &nbsp;&nbsp;Reassignment of hedging instruments | 682 | 675 |
| &nbsp;&nbsp;Realized exports | (682) | (675) |
| &nbsp;&nbsp;Designation of new hedges |  | 3672 |
| **Closing balance** | **4972** | **4972** |

---

The following is the movement in the other comprehensive income:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Opening balance** | **(945250)** | **(136470)** |
| &nbsp;&nbsp;Exchange difference | (3029837) | (1533744) |
| &nbsp;&nbsp;Realized exports (Note 25) | 576875 | 249976 |
| &nbsp;&nbsp;Ineffectiveness | (949) | 24496 |
| &nbsp;&nbsp;Deferred tax | 858947 | 450492 |
| **Closing balance** | **(2540214)** | **(945250)** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

The expected reclassification of exchange differences accumulated in other comprehensive income to profit or loss is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Year** | **Before taxes** | **Taxes** | **After taxes** |
| 2022 (Oct-Dec) | 2035396 | (712387) | 1323009 |
| 2023 | (72675) | 25436 | (47239) |
| 2024 | 690910 | (241819) | 449091 |
| 2025 | 663040 | (232064) | 430976 |
| 2026 | 591350 | (206973) | 384377 |
|  | **3908021** | **(1367807)** | **2540214** |

---

**30.4.**Hedge of a net investment in a foreign operation

The Board of Directors approved the application of hedge accounting of net investment from June 8, 2016. The measure seeks to reduce the volatility of non-operating income due to the exchange difference. The hedge of a net investment applies to a portion of the investments the Company has in foreign currency, in this case in subsidiaries with the US dollars as their functional currency, using as hedging instrument a portion of the Company's debt denominated in U.S. dollars.

Ecopetrol designated as hedged items its net investments in Oleoducto Central S.A. (Ocensa), Ecopetrol América LLC., Hocol Petroleum Ltd. (HPL) and Refinería de Cartagena S.A.S. (Reficar); and as a hedging instrument a portion of its debt denominated in US dollars in a total amount equivalent to USD$5,200 million.

During 2021, the Company made an extension for USD$1,229 million to add a greater amount in Reficar. Additionally, during the year, debt principal payments were made for USD$270 million (June USD$163 million and December USD$107 million). The total value hedged on December 31, 2021, is USD$8,208 million.

During 2022, an extension was made for USD$750 million to add a larger amount in Permian and additionally, capital payments of USD$167 million were made. The total hedged balance as of September 30, 2022, is USD$8,791 million.

Additionally, ISA Colombia made a net investment hedge on the investments in the companies REP, ISA Peru, CTM and PDI for a value of USD$326 million. The hedging instrument corresponds to a green international bond issued on November 26, 2021.

The following is the movement in the other comprehensive income:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| **Opening balance** | **4364465** | **1494926** |
| &nbsp;&nbsp;Exchange difference | 5507846 | 4577887 |
| &nbsp;&nbsp;Deferred tax | (1864116) | (1708348) |
| **Closing balance** | **8008195** | **4364465** |

---

**30.5.** **Commodity Price risk**

The price risk of raw materials is associated with the Group's operations, both exports and imports of crude oil, natural gas, and refined products. To mitigate this risk, the Group has implemented hedges to partially protect the results from price fluctuations, considering that part of the financial exposure under contracts for the purchase of crude oil and refined products depends on the international oil prices.

The risk of such exposure is partially hedged in a natural way, as an integrated Group (with operations in the exploration and production, transportation and logistics and refining segments) and carries out both crude exports at international market prices and sales of refined products at prices correlated with international prices.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

The Group has a policy for the execution of (strategic and tactical) hedges and implemented processes, procedures, and controls for their management.

The main purpose of the strategic hedging program is to protect the Group's consolidated financial statements from the volatility of market variables in each period, to protect income and thus cash flow. During 2022, a hedging plan was executed to protect the cash against low price scenarios below the budget base price, in this sense, put options were purchased. The balance of these financial instruments as of September 30 corresponds to $220,594.

On the other hand, tactical hedges allow to capture value in trading operations and Asset Backed Trading (ABT), thereby mitigating the market risk of specific operations. In the trading activity, commitments in physical spot and forward contracts could represent an exposure to commodity price risk, in particular the risk associated with the volatility of the price of crude oil and refined products. Although this exposure is part of the natural risk of the production, refining, and marketing activity made by Ecopetrol, sometimes marketing, to maximize value capture, can concentrate the exposure to risk in terms of time and/or or indicator that differs from the Company's natural price risk profile. As of the date of this report, Ecopetrol S.A. recognizes a total net asset position in swaps for $3,637 (Dec 2021: liability $34,395) and Ecopetrol Trading Asia PTE. LTD, a total net liability position in swaps for $17,237. These transactions with derivatives are recognized under cash flow hedge accounting.

**30.6.** **Risk and opportunities related to climate**

According to the process of identification, assessment, and management of climate-related risks and opportunities by Ecopetrol, the following identification is presented below:

● **Physical risks:** related to the Company's exposure and vulnerability to the impacts of climate change and climate variability in Colombia, which could affect the availability of water and increase the exposure of assets and operations to possible damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o For Ecopetrol, the risks classified as acute are those caused by extreme climatic events whose frequency and intensity have been increasing due to the gradual increase in global temperature. In Colombian territory, it is reflected in the occurrence of the climatic variability phenomenon "El Niño", and its opposite phase "La Niña".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Risks classified as chronic are those that result from a medium and long-term change in climate conditions, which for the Company can be reflected in the rise in sea level or changes in the level and frequency of rainfall.

● **Transition risk:** related to the challenges that the company has identified to move towards a low-carbon, sustainable and competitive operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Regulatory risk, associated with regulatory changes that may directly affect the Company in the short and medium term. Among the regulatory changes, the following can be highlighted: (i) new information requirements for the application or modification of current and future licenses, of which the Company does not have the information available, (ii) new regulations for the detection and repair of leaks, burning and venting of gas, (iii) disclosure requirements on environmental and social matters by the Financial Superintendence of Colombia, (iv) new requirements for the verification of projects, among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Legal risk, associated with the negative reactions and lawsuits against the climate action of Ecopetrol S.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Risk of assets trapped in the traditional business of hydrocarbon production, transportation, and refining, considering factors such as fuel demand prospects and asset profit horizons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Market risk, related to the change in preferences in the use of low-carbon products in the long term, which implies a risk for the Company of not being able to meet market demand and of not advancing effectively in the development of these products.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Reputational risk, associated with the impossibility of responding in a timely way to the expectations and demand of investors and other interest groups to establish ambitious objectives regarding climate change, which would affect the image of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Technological risk, associated with the negative effects on the profitability of the business if there is no preparation and capacity to adapt to new technologies because of the transition process.

The opportunities derive from the analysis of risks associated with the climate, the review of the energy transition scenarios, the implementation of the decarbonization plan and the alignment with the 2040 strategy. Opportunities have been identified related to the diversification of the traditional business, the incorporation into the portfolio of sustainable and low-emission businesses, the diversification in energy power and infrastructure markets, and the strengthening of energy efficiency and renewable energies.

**30.7.** **Capital management**

The main objective of Ecopetrol Business Group's Capital Management is to ensure a financial structure that will optimize the Company's cost of capital, maximize the returns to its shareholders and allow access to financial markets at a competitive cost to cover its financing needs.

The following is the leverage index over the periods reported:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2022** | **December 31,** <br>**2021** |
|  | **(Unaudited)** |  |
| Loans and borrowings (Note 20) | 107739990 | 95060928 |
| Cash and cash equivalents (Note 6) | (12917748) | (14549906) |
| Other financial assets (Note 9) | (3199418) | (2934734) |
| **Net financial debt** | **91622824** | **77576288** |
| **Equity**  | **102689797** | **90583772** |
| **Leverage (1)** | **47.15%**  | **46.13%** |

---

(1)Net financial debt / (Net financial debt + Equity)

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**31.** **Related parties**

The balances with associated companies and joint ventures as of September 30, 2022 (unaudited), and December 31, 2021, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Accounts**<br>**receivable** | **Loans**<br>**receivable** | **Other**<br>**assets** | **Accounts**<br>**payable** | **Loans**<br>**payable** | **Other**<br>**liabilities** |
| **Joint ventures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equion Energía Limited | 42 |  | 889 | 3205 | 770036 | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ecodiesel Colombia S.A. | 3957 |  |  | 61433 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica do Madeira S.A. | 52555 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Garanhuns S.A. | 12610 | 68 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Paraguaçu S.A. |  | 7 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Ivaí S.A. |  | 137 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivex S.A. |  | 335 |  |  |  |  |
| **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gases del Caribe S.A. E.S.P. | 93009 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas Natural del Oriente S.A. E.S.P. | 3592 |  |  | 7031 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gases de la Guajira S.A. E.S.P. | 1797 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Extrucol S.A. | 936 |  |  | 389 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;E2 Energía Eficiente S.A. E.S.P. | 11238 |  |  | 1345 |  |  |
| **Balance as of September 30, 2022 (unaudited)** | **179736** | **547** | **889** | **73403** | **770036** | 95 |
| &nbsp;&nbsp;Current | 179736 | 212 | 889 | 73403 | 770036 | 95 |
| &nbsp;&nbsp;Non-current |  | 335 |  |  |  |  |
|  | **179736** | **547** | **889** | **73403** | **770036** | **95** |
|  | (Note 7) | (Note 7) | (Note 11) | (Note 21) | (Note 20) |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Accounts**<br>**receivable** | **Loans**<br>**receivable** | **Other**<br>**assets** | **Accounts**<br>**payable** | **Loans**<br>**payable** | **Other**<br>**liabilities** |
| **Joint ventures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equion Energía Limited (1) | 925 |  | 1386 | 12997 | 1483701 | 233 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ecodiesel Colombia S.A. | 1521 |  |  | 46452 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Garanhuns S.A. |  | 28 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Paraguaçu S.A. |  | 28 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Aimorés S.A. |  | 28 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interligação Elétrica Ivaí S.A. |  | 28 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivex S.A. |  | 335 |  |  |  |  |
| **Associates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas Natural del Oriente S.A. E.S.P. |  |  |  | 5211 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Extrucol S.A. |  |  |  | 283 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;E2 Energía Eficiente S.A. E.S.P. | 6797 |  |  | 1655 |  |  |
| **Balance as of December 31, 2021** | **9243** | **447** | **1386** | **66598** | **1483701** | **233** |
| &nbsp;&nbsp;Current | 9243 | 112 | 1386 | 66598 | 1483701 | 233 |
| &nbsp;&nbsp;Non-current |  | 335 |  |  |  |  |
|  | **9243** | **447** | **1386** | **66598** | **1483701** | **233** |
|  | (Note 7) | (Note 7) | (Note 11) | (Note 21) | (Note 20) |  |

---

#### Loans payable:
&nbsp;&nbsp;&nbsp;&nbsp;(1) Deposits held by Equion in Ecopetrol Capital AG.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

The main transactions with related parties for the periods ended September 30, are detailed as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2021** | **2021** |
|  | <br>**Sales and**<br>**services** | **Purchases of**<br>**product and**<br>**other** | <br>**Sales and**<br>**services** | **Purchases of**<br>**product and**<br>**other** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| **Joint ventures** |  |  |  |  |
| &nbsp;&nbsp;Equion Energía Limited | 430 | 15423 | 15829 | 52536 |
| &nbsp;&nbsp;Ecodiesel Colombia S.A. | 13993 | 468589 | 26144 | 314780 |
|  | **14423** | **484012** | **41973** | **367316** |
| **Associates** |  |  |  |  |
| &nbsp;&nbsp;Gas Natural del Oriente S.A. E.S.P. |  | 26783 |  | 19545 |
| &nbsp;&nbsp;Extrucol S.A. | 10 | 2222 |  | 1124 |
| &nbsp;&nbsp;E2 Energía Eficiente S.A. E.S.P. | 65137 | 2202 | 41907 | 7329 |
|  | **65147** | **31207** | **41907** | **27998** |
|  | **79570** | **515219** | **83880** | **395314** |

---

**32.** **Segments information**

The description of the business segments can be seen in note 4.20 of the consolidated financial statements December 31, 2021.

The following information by segments is reported based on the information used by the Board of Directors, as the highest body for making strategic and operational decisions of the business segments. The performance of the segments is based mainly on analyzes of income, costs, expenses, and results for the period generated by each segment, which are monitored periodically.

The information disclosed in each segment is presented net of the transactions carried out between the Group companies.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**32.1.**Statement of profit or loss by segment

Below is the profit and loss statement by segment as of and for the periods ended September 30:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** |
|  | <br>**Exploration**<br>**and**<br>**Production** | <br>**Refining and**<br>**Petrochemicals** | <br>**Transportation**<br>**and Logistics** | **Concessions,**<br>**electricity**<br>**transport**<br>**and roads** | <br>**Eliminations** | <br>**Total** |
| Third party sales | 47423709 | 60987163 | 1995275 | 9578562 | (85915) | 119898794 |
| Inter-segment sales | 22583663 | 5127399 | 7873394 | 1995 | (35586451) |  |
| **Revenue from contracts with customers** | **70007372** | **66114562** | **9868669** | **9580557** | **(35672366)** | **119898794** |
| Costs of sales | (34896814) | (59242324) | (2681117) | (3954326) | 35316340 | (65458241) |
| &nbsp;&nbsp;**Gross profit** | **35110558** | **6872238** | **7187552** | **5626231** | **(356026)** | **54440553** |
| Administration expenses | (1537478) | (487623) | (339903) | (754149) | 274526 | (2844627) |
| Operation and projects expenses | (1871806) | (866722) | (225224) |  | 130229 | (2833523) |
| Impairment of non–current assets |  | (5516) |  |  |  | (5516) |
| Other operating expenses | (193586) | (31033) | (24523) | (51033) | (2496) | (302671) |
| &nbsp;&nbsp;**Operating income** | **31507688** | **5481344** | **6597902** | **4821049** | **46233** | **48454216** |
| Financial results |  |  |  |  |  |  |
| Financial income | 656434 | 59308 | 80522 | 404771 | (313637) | 887398 |
| Financial expenses | (2117736) | (974944) | (207257) | (2843762) | 267822 | (5875877) |
| Foreign exchange (loss) gain | (102929) | (244300) | (60892) | 30594 |  | (377527) |
|  | **(1564231)** | **(1159936)** | **(187627)** | **(2408397)** | **(45815)** | **(5366006)** |
| Share of profit of associates and joint ventures | 8741 | 171348 | (1001) | 477592 |  | 656680 |
| &nbsp;&nbsp;**Profit before income tax expense** | **29952198** | **4492756** | **6409274** | **2890244** | **418** | **43744890** |
| Income tax expense | (10809210) | (2664643) | (2276607) | (463605) |  | (16214065) |
| &nbsp;&nbsp;**Net profit for the period** | **19142988** | **1828113** | **4132667** | **2426639** | **418** | **27530825** |
| Net profit (loss) attributable to: |  |  |  |  |  |  |
| Owners of the parent | 19209590 | 1684580 | 3339949 | 536372 | 418 | 24770909 |
| Non–controlling interest | (66602) | 143533 | 792718 | 1890267 |  | 2759916 |
|  | **19142988** | **1828113** | **4132667** | **2426639** | **418** | **27530825** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** |
|  | <br>**Exploration**<br>**and**<br>**Production** | <br>**Refining and**<br>**Petrochemicals** | <br>**Transportation**<br>**and Logistics** | **Concessions,**<br>**electricity**<br>**transport**<br>**and roads** | <br>**Eliminations** | <br>**Total** |
| Third party sales  | 25466140 | 31909679 | 1795516 | 1035873 | (121400) | 60085808 |
| Inter–segment sales | 18145864 | 3128811 | 6989536 |  | (28264211) |  |
| **Revenue from contracts with customers** | **43612004** | **35038490** | **8785052** | **1035873** | **(28385611)** | **60085808** |
| Costs of sales | (28434970) | (33495298) | (2321831) | (397187) | 28199844 | (36449442) |
| &nbsp;&nbsp;**Gross profit** | **15177034** | **1543192** | **6463221** | **638686** | **(185767)** | **23636366** |
| Administration expenses | (1164805) | (518004) | (299640) | (97644) | 145536 | (1934557) |
| Operation and projects expenses | (1132911) | (671309) | (246802) | (11) | 57950 | (1993083) |
| Impairment reversal (loss) of non–current assets |  | 3529 | (1754) | (12) |  | 1763 |
| Other operating (expenses) income | (397809) | (27012) | 6341 | (16157) | (920) | (435557) |
| &nbsp;&nbsp;**Operating income** | **12481509** | **330396** | **5921366** | **524862** | **16799** | **19274932** |
| Financial results |  |  |  |  |  |  |
| Financial income | 384275 | 17043 | 28766 | 30928 | (218249) | 242763 |
| Financial expenses | (1772996) | (834954) | (187959) | (176527) | 198141 | (2774295) |
| Foreign exchange (loss) gain | (103969) | (46466) | 307627 | 194149 |  | 351341 |
|  | **(1492690)** | **(864377)** | **148434** | **48550** | **(20108)** | **(2180191)** |
| Share of profit of associates and joint ventures | 12569 | 163982 | (161) | 49524 |  | 225914 |
| &nbsp;&nbsp;**Profit before income tax expense** | **11001388** | **(369999)** | **6069639** | **622936** | **(3309)** | **17320655** |
| Income tax expense | (3898652) | 111777 | (1913888) | (344906) |  | (6045669) |
| &nbsp;&nbsp;**Net profit (loss) for the period** | **7102736** | **(258222)** | **4155751** | **278030** | **(3309)** | **11274986** |
| Net profit (loss) attributable to: |  |  |  |  |  |  |
| Owners of the parent | 7210942 | (395371) | 3291205 | 113614 | (3309) | 10217081 |
| Non–controlling interest | (108206) | 137149 | 864546 | 164416 |  | 1057905 |
|  | **7102736** | **(258222)** | **4155751** | **278030** | **(3309)** | **11274986** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**32.2.**Sales by product

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** |
|  | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** | **Nine-month period ended September 30, 2022 (Unaudited)** |
|  | <br>**Exploration** <br>**and**<br>**Production** | <br>**Refining and**<br>**Petrochemicals** | <br>**Transportation** <br>**and Logistics** | **Concessions,**<br>**electricity**<br>**transport**<br>**and roads** | <br>**Eliminations** | <br>**Total** |
| **National sales** |  |  |  |  |  |  |
| &nbsp;&nbsp;Mid-distillates |  | 28049021 |  |  | (17855) | 28031166 |
| &nbsp;&nbsp;Gasolines |  | 23859630 |  |  | (3249035) | 20610595 |
| &nbsp;&nbsp;Gas natural | 3783528 |  |  |  | (766851) | 3016677 |
| &nbsp;&nbsp;Services | 386472 | 315302 | 9868669 | 208024 | (8135332) | 2643135 |
| &nbsp;&nbsp;Electric power transmission services |  |  |  | 1934461 |  | 1934461 |
| &nbsp;&nbsp;Roads and construction services |  |  |  | 255736 |  | 255736 |
| &nbsp;&nbsp;Fuel gas service |  | 627753 |  |  | (6404) | 621349 |
| &nbsp;&nbsp;Plastic and rubber |  | 1216431 |  |  |  | 1216431 |
| &nbsp;&nbsp;Asphalts | 32966 | 601274 |  |  |  | 634240 |
| &nbsp;&nbsp;L.P.G. and propane | 550211 | 280473 |  |  | (23449) | 807235 |
| &nbsp;&nbsp;Crude oil | 21711604 | 491440 |  |  | (21988457) | 214587 |
| &nbsp;&nbsp;Polyethylene |  | 220975 |  |  |  | 220975 |
| &nbsp;&nbsp;Aromatics |  | 242045 |  |  |  | 242045 |
| &nbsp;&nbsp;Fuel oil | 2663 | 1836 |  |  |  | 4499 |
| &nbsp;&nbsp;Other income – Gas contracts | 2679 |  |  |  |  | 2679 |
| &nbsp;&nbsp;Other products | 14053 | 1835614 |  |  | (1343092) | 506575 |
|  | **26484176** | **57741794** | **9868669** | **2398221** | **(35530475)** | **60962385** |
| **Foreign sales** |  |  |  |  |  |  |
| &nbsp;&nbsp;Crude oil | 43996345 | 92147 |  |  | (141891) | 43946601 |
| &nbsp;&nbsp;Diesel |  | 1896842 |  |  |  | 1896842 |
| &nbsp;&nbsp;Electric power transmission services |  |  |  | 3750829 |  | 3750829 |
| &nbsp;&nbsp;Roads and construction services |  |  |  | 3209685 |  | 3209685 |
| &nbsp;&nbsp;Plastic and rubber |  | 1621076 |  |  |  | 1621076 |
| &nbsp;&nbsp;Gasolines |  | 157685 |  |  |  | 157685 |
| &nbsp;&nbsp;Fuel oil |  | 3628416 |  |  |  | 3628416 |
| &nbsp;&nbsp;Natural gas | 189665 |  |  |  |  | 189665 |
| &nbsp;&nbsp;L.P.G. and propane | 242581 |  |  |  |  | 242581 |
| &nbsp;&nbsp;Cash flow hedging | (932542) | (35992) |  |  |  | (968534) |
| &nbsp;&nbsp;Other products | 27147 | 1012594 |  | 221822 |  | 1261563 |
|  | **43523196** | **8372768** | **—** | **7182336** | **(141891)** | **58936409** |
|  | **70007372** | **66114562** | **9868669** | **9580557** | **(35672366)** | **119898794** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** | **Sales by product - Segments** |
|  | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** | **Nine-month period ended September 30, 2021 (Unaudited)** |
|  | <br>**Exploration** <br>**and**<br>**Production** | <br>**Refining and**<br>**Petrochemicals** | <br>**Transportation** <br>**and Logistics** | **Concessions,**<br>**electricity**<br>**transport**<br>**and roads** | <br>**Eliminations** | <br>**Total** |
| **National sales** |  |  |  |  |  |  |
| &nbsp;&nbsp;Mid-distillates |  | 11443166 |  |  | (12163) | 11431003 |
| &nbsp;&nbsp;Gasolines  |  | 12093001 |  |  | (1755706) | 10337295 |
| &nbsp;&nbsp;Gas natural  | 2936420 |  |  |  | (655561) | 2280859 |
| &nbsp;&nbsp;Services | 77252 | 283327 | 8785052 | 55251 | (7073731) | 2127151 |
| &nbsp;&nbsp;Electric power transmission services |  |  |  | 156362 |  | 156362 |
| &nbsp;&nbsp;Roads and construction services |  |  |  | 22607 |  | 22607 |
| &nbsp;&nbsp;Fuel gas service |  | 542862 |  |  | (5561) | 537301 |
| &nbsp;&nbsp;Plastic and rubber |  | 1185041 |  |  |  | 1185041 |
| &nbsp;&nbsp;Asphalts | 16526 | 430213 |  |  |  | 446739 |
| &nbsp;&nbsp;L.P.G. and propane | 396167 | 238293 |  |  | (21158) | 613302 |
| &nbsp;&nbsp;Crude oil | 17666119 |  |  |  | (17529475) | 136644 |
| &nbsp;&nbsp;Polyethylene |  | 272295 |  |  |  | 272295 |
| &nbsp;&nbsp;Aromatics |  | 176646 |  |  |  | 176646 |
| &nbsp;&nbsp;Fuel oil | 9609 | 11311 |  |  |  | 20920 |
| &nbsp;&nbsp;Other income – Gas contracts | 5527 |  |  |  |  | 5527 |
| &nbsp;&nbsp;Other products | 13246 | 1603863 |  |  | (1332256) | 284853 |
| &nbsp;&nbsp;Cash flow hedging |  | (8) |  |  |  | (8) |
|  | **21120866** | **28280010** | **8785052** | **234220** | **(28385611)** | **30034537** |
| **Foreign sales** |  |  |  |  |  |  |
| &nbsp;&nbsp;Crude oil | 22608325 |  |  |  |  | 22608325 |
| &nbsp;&nbsp;Diesel |  | 2935295 |  |  |  | 2935295 |
| &nbsp;&nbsp;Electric power transmission services |  |  |  | 505048 |  | 505048 |
| &nbsp;&nbsp;Roads and construction services |  |  |  | 274729 |  | 274729 |
| &nbsp;&nbsp;Plastic and rubber |  | 1558910 |  |  |  | 1558910 |
| &nbsp;&nbsp;Fuel oil |  | 1634934 |  |  |  | 1634934 |
| &nbsp;&nbsp;Natural gas | 39172 |  |  |  |  | 39172 |
| &nbsp;&nbsp;L.P.G. and propane | 58079 |  |  |  |  | 58079 |
| &nbsp;&nbsp;Cash flow hedging | (231021) | 7 |  |  |  | (231014) |
| &nbsp;&nbsp;Other products | 16583 | 629334 |  | 21876 |  | 667793 |
|  | **22491138** | **6758480** | **—** | **801653** | **—** | **30051271** |
|  | **43612004** | **35038490** | **8785052** | **1035873** | **(28385611)** | **60085808** |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**33.** **Relevant events (unaudited)**

-**New company in Ecopetrol Business Group**

Ecopetrol defined a new company that will be integrated into its Business Group to consolidate its position as a global marketer of refined, petrochemical, and industrial products, as well as crude oil and natural gas.

The company, called Ecopetrol US Trading LLC, will begin operations during the second half of 2023. Ecopetrol S.A. is the indirect owner of 100% of the shareholding through its subsidiary Ecopetrol USA Inc.

Ecopetrol US Trading will be focused on viable business with new clients and suppliers of crude oil, refined products, petrochemicals, and natural gas, mainly from the Americas and Europe.

**-** **Tax Reform**

On August 8, 2022, the MHCP submitted a tax reform bill to Congress proposing several changes to the Colombian tax regime, including (i) a new permanent equity tax applicable to Colombian individuals and non-residents, (ii) an increase in the dividend tax rate for local and foreign shareholders, (iii) an increase in the long-term capital gains tax rate (increasing from 10% to 15%); (iv) elimination and the limitation of specific tax benefits and exemptions, such as the rule that exempted the taxing of capital gains from the sale of publicly listed shares (currently applicable to sale of less than 10% of the total shares in circulation, which would be limited to 3% of the total shares in circulation as from 2023), (v) an income tax surcharge for companies engaged in the extraction of crude oil and coal from 0%, 5%, 10% or 15% and based on international prices, (vi) non-deductible of royalties, and (vii) the introduction of a minimum tax based on effective tax rate determined on accounting profits. The tax reform bill was approved by the Congress on November 11, 2022, and is expected to become effective starting January 1, 2023, once approved by the President.

**-** **Investment plan 2023 approval**

On December 9, 2022, Ecopetrol S.A. informed that the Board of Directors had the general organic investment plan for the Ecopetrol Group with an estimated amount between COP $25.3 and COP $29.8 trillion by 2023. Individual investment projects will be assessed at the time by the Board of Directors according to their materiality. The plan seeks to advance the four pillars of the 2040 Strategy, and the roadmap for the country's energy transition.

● The General Investment Plan 2023 approved by the Board of Directors, is aligned with the Ecopetrol Group's commitment to accelerate the transition path and energy sovereignty of the country, maintaining competitive returns for all its shareholders in line with its 2040 Strategy "Energy that Transforms".

● About 23% of the plan is aimed at cementing diversification into new low-emission businesses, which includes investments in hydrogen production, renewable energy, carbon capture and electricity transmission, leveraging diversification at the Ecopetrol Group scale.

● The plan seeks to reduce about 400,000 tons of CO2e emissions and incorporate about 900 MW of renewable energy and more than 50,000 tons of green hydrogen by 2025.

● The commitment to self-sufficiency in gas includes investments between COP $3.6 trillion and COP $4.1 trillion for exploration and production projects in Piedemonte Llanero, the Continental Caribbean and Offshore. The plan calls for the creation of at least two new regional energy communities and about 107,000 new gas-connected homes.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

● Nearly COP $5.4 trillion are allocated to the electricity transmission business with the objective of enabling more than 6,000 kilometers of new transmission lines for non-conventional renewable energies by 2025.

● The hydrocarbons business foresees in 2023 a production between 720,000 and 725,000 equivalent barrels per day, a refining load between 420,000 and 430,000 barrels per day, with transported volumes of more than one million barrels per day, ensuring continuity of fuel import substitution and the stability of the country's trade balance.

● In accordance with the Sostecnibilidad (sustainability + technology) objectives of the strategy, the plan includes investments close to COP $2.3 trillion in decarbonization projects, integrated water management and improvement of fuel quality, among others.

● Social investment resources for regional development and community well-being amount to COP $472 trillion focused on road infrastructure, education, and access to public services such as water and gas.

● More than COP $405 trillion will be allocated to science, technology, and innovation projects, essential to leverage business development and catalyze advances in technologies for the energy transition.

● The plan generates competitive returns at brent levels of $80 USD/Bl, with a ROACE of more than 10% , EBITDA margin of more than 40% and transfers to the nation of more than COP $40 trillion in 2023.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**Exhibit 1. Consolidated companies, associates, and joint ventures (Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Ownership** | | | | | | | |
| | | **Interest** | | | | | | | |
| <br>**Company** | <br>**Functional**<br>**Currency** | **Ecopetrol** | <br>**Activity** | <br>**Country/**<br>**Domicile** | **Geographic**<br>**area of**<br>**operations** | <br>**Net equity** | **Profit (loss)**<br>**for the**<br>**period** | <br>**Total**<br>**assets** | <br>**Total**<br>**liabilities** |
| **Subsidiaries** |  |  |  |  |  |  |  |  |  |
| Refinería de Cartagena S.A.S. | U.S. Dollar | 100% | Hydrocarbons refining, marketing and distribution | Colombia | Colombia | 20605032 | (421262) | 39779436 | 19174404 |
| Cenit transporte y logística de hidrocarburos S.A.S. | Colombian peso | 100% | Storage and transportation through hydrocarbon pipelines | Colombia | Colombia | 15163439 | 3382807 | 17249389 | 2085950 |
| Ecopetrol Global Energy S.L.U. | U.S. Dollar | 100% | Investment vehicle | Spain | Spain | 15014671 | 603348 | 15014712 | 41 |
| Oleoducto Central S.A. - Ocensa | U.S. Dollar | 72.65% | Transportation through hydrocarbon pipelines | Colombia | Colombia | 3666652 | 1912225 | 7877072 | 4210420 |
| Hocol Petroleum Limited. | U.S. Dollar | 100% | Investment vehicle | Bermuda | Bermuda | 4685585 | 286365 | 4680301 | (5284) |
| Ecopetrol América LLC. | U.S. Dollar | 100% | Hydrocarbons exploration and exploitation | United States of America | United States of America | 2592569 | 19295 | 3141427 | 548858 |
| Hocol S.A. | U.S. Dollar | 100% | Exploration, exploitation, and production of hydrocarbons | Cayman Islands | Colombia | 4115544 | 293019 | 5774738 | 1659194 |
| Esenttia S.A. | U.S. Dollar | 100% | Production and commercialization of polypropylene resin | Colombia | Colombia | 2720871 | 184905 | 3631698 | 910827 |
| Ecopetrol Capital AG | U.S. Dollar | 100% | Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group | Switzerland | Switzerland | 2990763 | 193324 | 10725300 | 7734537 |
| Oleoducto Bicentenario de Colombia S.A.S. | Colombian peso | 100% | Pipeline transportation of crude oil | Colombia | Colombia | 1290918 | 159653 | 2239345 | 948427 |
| Oleoducto de Colombia S. A. - ODC | Colombian peso | 73% | Pipeline transportation of crude oil | Colombia | Colombia | 359650 | 299535 | 729015 | 369365 |
| Black Gold Re Ltd. | U.S. Dollar | 100% | Reaseguradora para compañías del Grupo Empresarial Ecopetrol | Bermuda | Bermuda | 1156174 | 18212 | 1628764 | 472590 |
| Andean Chemicals Ltd. | U.S. Dollar | 100% | Investment vehicle | Bermuda | Bermuda | 1931217 | 90881 | 1931820 | 603 |
| Oleoducto de los Llanos Orientales S. A. - ODL | Colombian peso | 65% | Pipeline transportation of crude oil | Panama | Colombia | 657625 | 349191 | 1474252 | 816627 |
| Interconexión Eléctrica S.A. E.S.P. | Colombian peso | 51.41% | -Provision of the public electricity<br>transmission service<br>- Development of infrastructure<br>projects and their commercial<br>exploitation and<br>- Software development, Information<br>technology and telecommunications<br>activities and services | Colombia | Latin America | 26679398 | 1769822 | 71831521 | 45152123 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Company** | <br>**Functional**<br>**Currency** | **Ownership**<br>**Interest**<br>**Ecopetrol** | <br>**Activity** | <br>**Country/**<br>**Domicile** | **Geographic**<br>**area of**<br>**operations** | <br>**Net equity** | **Profit**<br>**(loss) for**<br>**the period** | <br>**Total**<br>**assets** | <br>**Total**<br>**liabilities** |
| Inversiones de Gases de Colombia S.A. Invercolsa S.A. | Colombian peso | 51.88% | Holding with investments in transportation and distribution companies of natural gas and LPG in Colombia | Colombia | Colombia | 534939 | 201657 | 690883 | 155944 |
| Alcanos de Colombia S.A. E.S.P. (1) | Colombian peso | 29.61% | Provision of the home public service of fuel gas, the construction and operation of gas pipelines, distribution networks, regulation, measurement, and compression stations. | Colombia | Colombia | 361893 | 99578 | 778549 | 416656 |
| Metrogas de Colombia S.A E.S.P. (1) | Colombian peso | 33.49% | Provision of the public service of commercialization and distribution of fuel gas; the exploration, exploitation, storage, use, transportation, refining, purchase, sale and distribution of hydrocarbons and their derivatives. | Colombia | Colombia | 62426 | 11701 | 128027 | 65601 |
| Gases del Oriente S.A. E.S.P. (1) | Colombian peso | 48.50% | Provision of the home public service of fuel gas distribution and the development of all complementary activities to the provision of said service. | Colombia | Colombia | 105148 | 26826 | 208678 | 103530 |
| Promotora de Gases del Sur S.A. E.S.P. (1) | Colombian peso | 31.44% | Promote the linking of national or foreign capital, public or private, to achieve the gas massification project. | Colombia | Colombia | 56341 | 20694 | 87347 | 31006 |
| Combustibles Líquidos de Colombia S.A E.S.P. (1) | Colombian peso | 41.61% | Wholesale commercialization of fuel gas, the provision of the home public LPG distribution service and the development of complementary activities to the provision of said service. | Colombia | Colombia | 60946 | 1982 | 86965 | 26019 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Company** | <br>**Functional**<br>**Currency** | **Ownership**<br>**Interest**<br>**Ecopetrol** | <br>**Activity** | <br>**Country/**<br>**Domicile** | **Geographic**<br>**area of**<br>**operations** | <br>**Net equity** | **Profit (loss)**<br>**for the**<br>**period** | <br>**Total**<br>**assets** | <br>**Total**<br>**liabilities** |
| Ecopetrol USA Inc. | U.S. Dollar | 100% | Hydrocarbons exploration and exploitation | United States of America | United States of America | 12942797 | 951305 | 12964617 | 21820 |
| Ecopetrol Permian LLC. | U.S. Dollar | 100% | Hydrocarbons exploration and exploitation | United States of America | United States of America | 8186502 | 935866 | 8750801 | 564299 |
| Ecopetrol Oleo é Gas do Brasil Ltda. | Real | 100% | Hydrocarbons exploration and exploitation | Brazil | Brazil | 1953495 | (335789) | 1981669 | 28174 |
| Esenttia Masterbatch Ltda. | Colombian peso | 100% | Manufacture of polypropylene compounds and masterbatches | Colombia | Colombia | 390328 | 234728 | 524679 | 134351 |
| Ecopetrol del Perú S. A. | U.S. Dollar | 100% | Hydrocarbons exploration and exploitation | Peru | Peru | 70365 | (75) | 71994 | 1629 |
| ECP Hidrocarburos de México S.A. de C.V. | U.S. Dollar | 100% | Offshore exploration | Mexico | Mexico | 47635 | (11296) | 54563 | 6928 |
| Ecopetrol Costa Afuera S.A.S. | Colombian peso | 100% | Offshore exploration | Colombia | Colombia | 12973 | (473) | 13270 | 297 |
| Esenttia Resinas del Perú SAC | U.S. Dollar | 100% | Commercialization polypropylene resins and masterbatches | Peru | Peru | 15971 | 1475 | 67742 | 51771 |
| Topili Servicios Administrativos S de RL De CV. | Mexican pesos | 100% | Specialized management services | Mexico | Mexico | 17 | (32) | 22 | 5 |
| Kalixpan Servicios Técnicos S de RL De CV. | Mexican pesos | 100% | Specialized services related to oil and gas industry | Mexico | Mexico | 27 | (30) | 32 | 5 |
| Ecopetrol Singapore PTE. LTD | Singapore dollar | 100% | Holding company with investment in an international trading company for crude oil and refined products | Singapore | Asia | 110014 | 119263 | 110135 | 121 |
| Ecopetrol Trading Asia PTE. LTD | Singapore dollar | 100% | International marketing of crude oil and refined products | Singapore | Asia | 110125 | 119367 | 2845291 | 2735166 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Company** | <br>**Functional**<br>**currency** | **Ownership**<br>**Interest**<br>**Ecopetrol** | <br>**Activity** | <br>**Country/**<br>**Domicile** | **Geographic**<br>**area of**<br>**operations** | <br>**Net equity** | **Profit (loss)**<br>**for the**<br>**period** | <br>**Total**<br>**assets** | <br>**Total**<br>**liabilities** |
| **Associates** |  |  |  |  |  |  |  |  |  |
| Serviport S.A. (2) | Colombian peso | 49% | Services to support the loading and unloading of oil trucks, supply of equipment for the same purpose, technical inspections, and load measurements | Colombia | Colombia | 17139 | (103) | 39452 | 22313 |
| Sociedad Portuaria Olefinas y Derivados S.A. (3) | Colombian peso | 50% | Construction, use, maintenance, adaptation and administration of port facilities, ports, private docks, or service to the public | Colombia | Colombia | 4628 | 589 | 7888 | 3260 |
| **Joint ventures** |  |  |  |  |  |  |  |  |  |
| Equion Energía Limited | U.S. Dollar | 51% | Hydrocarbons exploration and exploitation | United Kingdom | Colombia | 1470547 | 10820 | 1551795 | 81248 |
| Ecodiesel Colombia S.A. (3) | Colombian peso | 50% | Production, commercialization and distribution of biofuels and oleochemicals | Colombia | Colombia | 123872 | 45918 | 234961 | 111089 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Indirect participation through Inversiones de Gases de Colombia S.A. - Invercolsa S.A.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Information available as of August 31, 2022, the investment is totally impaired.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Information available as of August 31, 2022.

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

**Exhibit 2. Consolidated companies, associates, and joint ventures – Interconexión Eléctrica S.A. E.S.P.**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Company** | **Ownership**<br>**Interest**<br>**ISA** | <br>**Activity** | <br>**Country/** <br>**Domicile** | **Geographic** <br>**area of** <br>**operations** | <br>**Net equity** | **Profit (loss)** <br>**for the**<br>**period** | <br>**Total assets** | <br>**Total** <br>**liabilities** |
| **Subsidiaries** |  |  |  |  |  |  |  |  |
| Consorcio Transmantaro | 60.00% | Electric power | Peru | Peru | 2047606 | 210796 | 8476483 | 6428877 |
| Interligação Eléctrica Evrecy | 35.82% | Electric power | Brazil | Brazil | 204913 | (42116) | 225450 | 20537 |
| Fundo de Investimento Assis | 35.81% | Trust - Special Purpose Entity | Brazil | Brazil | 121919 | 4269 | 121919 |  |
| Fundo de Investimento Barra Bonita Renda Fixa Referenciado | 35.77% | Trust - Special Purpose Entity | Brazil | Brazil | 11873 | 2479 | 11873 |  |
| Fundo de Investimento Referenciado di Bandeirantes | 17.06% | Trust - Special Purpose Entity | Brazil | Brazil | 341888 | 16468 | 341888 |  |
| Fundo de Investimento Xavantes Referenciado di | 15.40% | Trust - Special Purpose Entity | Brazil | Brazil | 522517 | 35529 | 522517 |  |
| Interconexiones Viales | 65.00% | Roads | Chile | Chile | 3044 | (2650) | 3656 | 612 |
| Interligação Elétrica Aguapeí | 35.82% | Electric power | Brazil | Brazil | 543971 | 68226 | 605626 | 61655 |
| Interligação Elétrica Biguaçu | 35.82% | Electric power | Brazil | Brazil | 357213 | 29756 | 427764 | 70551 |
| Interligação Elétrica De Minas Gerais | 35.82% | Electric power | Brazil | Brazil | 271566 | (33417) | 298559 | 26993 |
| Interligação Elétrica Itapura | 35.82% | Electric power | Brazil | Brazil | 175044 | 20631 | 188340 | 13296 |
| Interligação Elétrica Itaquerê | 35.82% | Electric power | Brazil | Brazil | 464935 | 44866 | 545366 | 80431 |
| Interligação Elétrica Itaúnes | 35.82% | Electric power | Brazil | Brazil | 426261 | 39039 | 460751 | 34490 |
| Interligação Elétrica Norte E Nordeste | 35.82% | Electric power | Brazil | Brazil | 314059 | 26937 | 450167 | 136108 |
| Interligação Elétrica Pinheiros | 35.82% | Electric power | Brazil | Brazil | 550509 | 57631 | 615028 | 64519 |
| Interligação Elétrica Riacho Grande | 35.82% | Electric power | Brazil | Brazil | 76184 | (1243) | 84574 | 8390 |
| Interligação Elétrica Serra Do Japi | 35.82% | Electric power | Brazil | Brazil | 466645 | 51278 | 522507 | 55862 |
| Interligação Elétrica Sul | 35.82% | Electric power | Brazil | Brazil | 183835 | 9819 | 209914 | 26079 |
| Interligação Elétrica Tibagi | 35.82% | Electric power | Brazil | Brazil | 201486 | 13391 | 234054 | 32568 |
| Internexa | 99.42% | Information and communications technologies | Colombia | Colombia | 113389 | (9866) | 549217 | 435828 |
| Transamerican Telecomunication S.A. | 99.42% | Information and communications technologies | Argentina | Argentina | 20908 | (2265) | 43213 | 22305 |
| Internexa Brasil Operadora de Telecomunicações | 99.42% | Information and communications technologies | Brazil | Brazil | 41658 | (22433) | 291102 | 249444 |
| Internexa Chile | 98.43% | Information and communications technologies | Chile | Chile | 23835 | 1889 | 78272 | 54437 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Company** | **Ownership** <br>**Interest** <br>**ISA** | <br>**Activity** | <br>**Country/** <br>**Domicile** | **Geographic** <br>**area of** <br>**operations** | <br>**Net equity** | **Profit (loss)**<br>**for the**<br>**period** | <br>**Total** <br>**assets** | <br>**Total**<br>**liabilities** |
| Internexa Participações | 99.42% | Investment vehicle | Brazil | Brazil | 38103 | (21083) | 38933 | 830 |
| Internexa Peru | 99.42% | Information and communications technologies | Peru | Peru | 75418 | 4033 | 394048 | 318630 |
| ISA Bolivia | 100.00% | Electric power | Bolivia | Bolivia | 129343 | 7877 | 138416 | 9073 |
| ISA Capital Do Brasil | 100.00% | Investment vehicle | Brazil | Brazil | 4902563 | 536782 | 4904914 | 2351 |
| ISA CTEEP | 35.82% | Electric power | Brazil | Brazil | 13609080 | 1493200 | 25918741 | 12309661 |
| ISA Interchile | 100.00% | Electric power | Chile | Chile | 1400049 | (25287) | 6961298 | 5561249 |
| ISA Intercolombia | 100.00% | Electric power | Colombia | Colombia | 94919 | 36169 | 331964 | 237045 |
| ISA Intervial Chile | 100.00% | Roads | Chile | Chile | 3294754 | 240366 | 4099171 | 804417 |
| ISA Intervial Colombia | 100.00% | Roads | Colombia | Colombia | 579 | 13 | 579 | - |
| ISA Inversiones Chile | 100.00% | Investment vehicle | Chile | Chile | 4007871 | 245561 | 4011877 | 4006 |
| ISA Inversiones Costera Chile | 100.00% | Investment vehicle | Chile | Chile | (53317) | (57162) | 611625 | 664942 |
| ISA Inversiones Tolten | 100.00% | Investment vehicle | Chile | Chile | 40 | (3) | 40 | - |
| ISA Investimentos E Participações | 100.00% | Investment vehicle | Brazil | Brazil | 1089564 | 154558 | 1089591 | 27 |
| ISA Perú | 99.99% | Electric power | Peru | Peru | 223977 | 20603 | 1107192 | 883215 |
| ISA REP | 60.00% | Electric power | Peru | Peru | 638585 | 196436 | 2173961 | 1535376 |
| ISA Transelca | 100.00% | Electric power | Colombia | Colombia | 956311 | 166923 | 1755872 | 799561 |
| Linear Systems RE | 100.00% | Other businesses | Bermudas | Bermudas | 33188 | 3523 | 98499 | 65311 |
| Proyectos de Infraestructura del Perú | 100.00% | Electric power | Peru | Peru | 17147 | 4629 | 137825 | 120678 |
| Ruta Costera | 100.00% | Roads | Colombia | Colombia | 176642 | (12644) | 2580975 | 2404333 |
| Ruta de La Araucanía | 100.00% | Roads | Chile | Chile | 337645 | 48713 | 653193 | 315548 |
| Ruta de Los Ríos | 75.00% | Roads | Chile | Chile | 97779 | 28959 | 237528 | 139749 |
| Ruta del Bosque | 100.00% | Roads | Chile | Chile | 92730 | (19445) | 118570 | 25840 |
| Ruta del Loa | 100.00% | Roads | Chile | Chile | 254451 | 31019 | 825723 | 571272 |
| Ruta del Maipo | 100.00% | Roads | Chile | Chile | 2241823 | 209465 | 7222823 | 4981000 |
| Ruta del Maule | 100.00% | Roads | Chile | Chile | 4863 | (4657) | 13414 | 8551 |
| Sistemas Inteligentes en Red | 99.77% | Other businesses | Colombia | Colombia | 8960 | 1356 | 17765 | 8805 |
| XM | 99.73% | Electric power | Colombia | Colombia | 37818 | 8836 | 280987 | 243169 |

---

[**Table of Contents**](#TOC)

**Ecopetrol S.A.**

Notes to consolidated condensed interim financial statements

September 30, 2022

(Figures expressed in millions of Colombian pesos, unless otherwise stated)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Company** | **Ownership**<br>**Interest**<br>**ISA** | <br>**Activity** | <br>**Country/** <br>**Domicile** | **Geographic** <br>**area of**<br>**operations** | <br>**Net equity** | **Profit (loss)**<br>**for the**<br>**period** | <br>**Total assets** | <br>**Total**<br>**liabilities** |
| **Joint ventures** |  |  |  |  |  |  |  |  |
| Interligação Elétrica do Madeira | 51.00% | Energy transport | Brazil | Brazil | 3254901 | 295254 | 6055398 | 2800497 |
| Interligação Elétrica Garanhuns | 51.00% | Energy transport | Brazil | Brazil | 854101 | 139573 | 1224720 | 370619 |
| Interligação Elétrica Paraguaçu | 50.00% | Energy transport | Brazil | Brazil | 937376 | 112230 | 1350712 | 413336 |
| Interligação Elétrica Aimorés | 50.00% | Energy transport | Brazil | Brazil | 622194 | 92762 | 896390 | 274196 |
| Interligação Elétrica Ivaí | 50.00% | Energy transport | Brazil | Brazil | 699677 | 73148 | 3324360 | 2624683 |
| Transmissora Aliança de Energia Elétrica | 14.88% | Energy transport | Brazil | Brazil | 5835107 | 1139815 | 13533058 | 7697951 |
| Interconexión Eléctrica Colombia Panamá-Panamá | 50.00% | Energy transport | Panama | Panama | 32317 | (21722) | 33280 | 963 |
| Interconexión Eléctrica Colombia Panamá Colombia | 1.17% | Energy transport | Colombia | Colombia | 267 | (2) | 268 | 1 |
| Transnexa (1) | 50.00% | Telecommunications transport | Ecuador | Ecuador |  |  |  |  |
| Derivex | 40.35% | Manage the negotiation system of operations on derivative financial instruments of electrical energy | Colombia | Colombia | 207 | (666) | 207 |  |
| Parques del Río | 33.00% | Roads | Colombia | Colombia | 110 | (23) | 110 |  |
| Conexión Kimal Lo Aguirre S.A. | 33.33% | Energy transport | Chile | Chile | 119475 |  | 119475 |  |
| **Associates** |  |  |  |  |  |  |  |  |
| ATP Tower Holdings | 24.70% | Telecommunications transport | United States of America | United States of America | 1856906 | (108497) | 4166273 | 2309367 |

---

(1)Transnexa is in the process of liquidation and the investment is fully impaired.

## Exhibit 99.2

#### Exhibit 99.2

#### UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The following table with unaudited pro forma condensed combined financial information for the twelve months ended December 31, 2021, presents the combined financial information of Ecopetrol S.A. and ISA, adjusted to give effect to Ecopetrol S.A.'s acquisition of 51.4% of the outstanding shares of ISA (the "Acquisition"), for the consideration set forth in note 1.2 thereto (the "pro forma financial information"). For more information, see Exhibit 4.20 to Ecopetrol S.A.'s annual report on Form 20-F for the fiscal year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (the "SEC") on April 26, 2022 (the "2021 Annual Report"). Assumptions and estimates underlying the unaudited adjustments to the pro forma financial information are described in the accompanying notes, which should be read in conjunction with the pro forma financial information.

The historical consolidated financial information has been adjusted to give effect to pro forma events that are directly attributable to the Acquisition and/or factually supportable as if such events occurred on January 1, 2021. All financial information included in the unaudited proforma condensed combined statement of income and related notes are expressed in millions of Colombian pesos, except otherwise noted.

The adjustments to the pro forma financial information have been made solely for the purpose of presenting the pro forma financial information, which are necessary to comply with the applicable disclosure and reporting requirements of the SEC. The pro forma financial information is presented for illustrative purposes only and is not intended to represent Ecopetrol S.A.'s actual consolidated results of operations following the Acquisition, nor are they necessarily indicative of Ecopetrol S.A.'s future consolidated results of operations.

The pro forma financial information was prepared using the acquisition method of accounting with Ecopetrol S.A. considered to be the acquirer of ISA. Under the acquisition method of accounting, the purchase price is allocated to the acquired underlying ISA tangible and intangible assets and liabilities are assumed based on their respective fair market values with any excess purchase price allocated (the "PPA") to goodwill.

The pro forma adjustments and related assumptions are described in the accompanying notes to the pro forma financial information. Ecopetrol believes that the assumptions used to derive the pro forma adjustments are reasonable given the information available.

Further, the pro forma combined income statement data included herein do not reflect any cost savings from operating efficiencies, any other potential synergies or the costs necessary to achieve any such savings or synergies. The pro forma combined financial information is based on the historical financial statements of Ecopetrol S.A. and ISA, as adjusted to give pro forma effect to the Acquisition as if the Acquisition occurred on January 1, 2021. The pro forma financial information should be read in conjunction with the historical financial statements of each of Ecopetrol S.A. and ISA and their notes included in the 2021 Annual Report or in the current report on Form 6-K filed with the SEC on January 10, 2023.

Pro forma adjustments were made to reflect:

● the Acquisition of ISA by Ecopetrol S.A.;

● changes in depreciation and amortization expenses resulting from fair value adjustments to tangible and intangible assets;

● changes in fair value of interest rate and foreign exchange rates resulting from the debt incurred to fund the Acquisition; and

● the effects of deferred and current taxes in respect of the pro forma adjustments.

------

**Ecopetrol S.A.**

**Unaudited Pro Forma Condensed Combined Statement of Income Data**

**For the Twelve Months Ended December 31, 2021**

**(In millions of Colombian pesos, except for basic and diluted earnings per share)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | |  | |
|  | <br>**Ecopetrol S.A. (1)** | <br>**ISA S.A. (2)** | **Pro forma**<br>**adjustments** |  | **Total combined**<br>**pro forma** |
| Revenue  | 91881204 | 7003740 | (90889) | (d) | 98794055 |
| Cost of sales  | (55581776) | (2595970) | (118166) | (a) | (58295912) |
| **Gross Profit**  | **36299428** | **4407770** | **(209055)** |  | **40498143** |
| Operating expenses  | (6568370) | (456924) | (129582) | (b) | (7154876) |
| Impairment of non-current assets, net  | (33351) | (7529) |  |  | (40880) |
| **Operating Income**  | **29697707** | **3943317** | **(338637)** |  | **33302387** |
| Finance results, net  | (3698054) | (1522739) | (298138) | (c)(d) | (5518931) |
| Share of profit of associates and joint ventures  | 426164 | 342018 |  |  | 768182 |
| **Profit before income tax expense** | **26425817** | **2762596** | **(636775)** |  | **28551638** |
| Income taxes | (8795263) | (666086) | 196272 | (e) | (9265077) |
| **Net profit** | **17630554** | **2096510** | **(440503)** |  | **19286561** |
| **Net profit attributable to:**  |  |  |  |  |  |
| Owners of parent  | 15649143 | 1156411 | (902407) |  | 15903147 |
| Non-controlling interest  | 1981411 | 940099 | 461904 |  | 3383414 |
|  | **17630554** | **2096510** | **(440503)** |  | **19286561** |
| **Basic and diluted earnings per share** | **380.60** |  |  | (f) | **386.78** |
| Common shares | 41116694690 |  |  |  | 41116694690 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents the historical audited consolidated statement of profit or loss for the year ended December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the historical unaudited statement of profit or loss for period from January 1, 2021 to August 31, 2021.

#### Notes To the Unaudited Pro Forma Condensed Combined Financial Information
1. Description of the Transaction and Basis of Presentation

On August 20, 2021, Ecopetrol completed the Acquisition. On such date, the closing conditions of the Inter-Administrative Agreement (the "SPA") signed on August 11, 2021, between Ecopetrol and the Colombian Ministry of Finance and Public Credit ("MHCP") for the acquisition of 569,472,561 shares of ISA equivalent to 51.4% of the outstanding shares were fulfilled. On August 20, 2021, Ecopetrol S.A. acquired control of ISA. As ISA was controlled by the Ecopetrol Business Group´s controlling shareholders the transaction was between entities under common control.

The accounting for transactions of entities under common control are not provided for in IFRS, as such, based on the guidance of International Accounting Standards ("IAS") 8, *Accounting Policies, Changes in Accounting Estimates and Errors*, paragraphs 10 through 12, the Ecopetrol Business Group developed and applied an accounting policy that it applied to this transaction, considering the most recent pronouncements of other standard-setting bodies that use a similar conceptual framework to develop accounting standards, other accounting literature and industry practices. Given that the Ecopetrol Business Group concluded that the transaction had commercial substance, since the consideration transferred was settled in cash and determined based on the market value of the shares acquired (25,000 Colombian pesos per share) and involved significant minority interest (48.6%) the Ecopetrol Business Group accounted for the transaction as a business combination pursuant to IFRS 3, *Business Combination*.

The Acquisition represents a transformational step for the Ecopetrol Business Group in the development of the strategy of energy transition, decarbonization and diversification of the business. With this acquisition, the Ecopetrol Business Group is positioned, through a single operation, as a key player in the electricity business, with prospects for future growth.

ISA is a multi-Latin business group with operations in the Electric Power Transmission, Toll Roads Concessions and Telecommunications businesses. As of December 31, 2021, ISA had 50 subsidiaries, 11 joint ventures and 1 associate, and operated in 6 countries in South and Central America.

The consideration transferred corresponds to the payment made to the former controlling shareholder of ISA, reduced by the dividends received at the time of the closing of the transaction.

Acquisition-related costs correspond to fees for legal and financial advice and commissions.

------

The unaudited pro forma condensed combined financial information does not reflect any cost savings, operating synergies or revenue enhancements that Ecopetrol may achieve as a result of the Acquisition.

1.2 Total Consideration (in millions of Colombian pesos)

---

| | |
|:---|:---|
| Consideration paid in cash | (14236814) |
| Dividends received by Ecopetrol S.A. from ISA (1) | 371011 |
| Deferred taxes (1) | (35033) |
| Total consideration | (13900836) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) In December 2021, ISA paid dividends to Ecopetrol S.A. of COP$371,011 million, constituting a deferred tax of COP$35,033 million, which was offset from the consideration transferred, pursuant to the SPA.

**1.3 Estimated fair value of assets acquired and liabilities assumed**

Acquired assets and assumed liabilities at the date of acquisition:

---

| | |
|:---|:---|
|  | **Fair Value**<br>**(in millions of Colombian pesos)** |
| **Assets** |  |
| &nbsp;&nbsp;Cash and cash equivalents | 4983234 |
| &nbsp;&nbsp;Accounts receivable | 27487774 |
| &nbsp;&nbsp;Inventories | 120300 |
| &nbsp;&nbsp;Other financial assets | 1093941 |
| &nbsp;&nbsp;Current tax assets | 477504 |
| &nbsp;&nbsp;Other assets | 682445 |
| &nbsp;&nbsp;Investments in subsidiaries and joint ventures (1) | 5014749 |
| &nbsp;&nbsp;Property, plant, and equipment (2) | 17640458 |
| &nbsp;&nbsp;Right of use assets  | 230207 |
| &nbsp;&nbsp;Intangible assets (3) | 14326479 |
| &nbsp;&nbsp;Deferred tax assets  | 2075849 |
| **Total assets** | **74132940** |
| **Liabilities** |  |
| &nbsp;&nbsp;Loans  | 27203432 |
| &nbsp;&nbsp;Leases  | 255503 |
| &nbsp;&nbsp;Accounts payable | 1358692 |
| &nbsp;&nbsp;Employee Benefits | 973210 |
| &nbsp;&nbsp;Tax liabilities | 1897786 |
| &nbsp;&nbsp;Provisions and contingencies (4) | 947883 |
| &nbsp;&nbsp;Other liabilities | 1708349 |
| &nbsp;&nbsp;Deferred tax liabilities  | 9953146 |
| **Total liabilities** | **44298001** |
| **Total identifiable net assets** | **29834939** |
| &nbsp;&nbsp;Non-controlling interest (5) | (18973080) |
| &nbsp;&nbsp;Goodwill derived from the acquisition (6)  | 3038977 |
| **Total consideration (see Note 1.2)** | **13900836** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) The fair value of the associates and joint ventures was determined by the methodologies of discounted cash flows, market value and market multiples. The fair value adjustment of associates and joint ventures totaled COP$1,281,598 million, of which COP$558,659 million relates to Transmissora Aliança de Energia Elétrica S.A. (TAESA) and COP$367,659 million relates to ATP.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The fair value adjustment of property, plant and equipment amounts to COP$5,233,557 million. The methodologies used to estimate the fair value of the property, plant and equipment and the transmission line easements were the replacement cost and market value estimate through quotations of similar assets. The key assumptions used to estimate the fair value of those assets were: replacement value of fixed assets, market quotations, and the assets useful lives.

&nbsp;&nbsp;&nbsp;&nbsp;(3) The fair value adjustment of intangible assets with contractual rights was COP$4,596,134 million and such fair value was determined using the Multi–period Excess Earnings Method (MEEM) methodology, which considers the contractual rights' fair value estimates. Such estimates were calculated based on the contractual revenues and the adjusted operational margin of each intangible asset. The projected operational profit was deducted by an amount determined based on the corresponding income tax

------

rate applicable in the applicable jurisdiction, and the estimated contributory asset charges. The projected excess earnings were discounted to present value using a discount rate comprised of weighted average cost of capital, which included an intangible asset premium.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The fair value adjustment of contingent liabilities (defined as present obligations that arise from past events) that can be measured reliably was determined to be COP$225,983 million, based on the advice of ISA's legal advisors on basis of the expected outcome of the underlying disputes.

&nbsp;&nbsp;&nbsp;&nbsp;(5) The non-controlling interest fair value adjustment was measured based on Ecopetrol S.A.'s pro rata share ownership of ISA's identifiable net assets. This number has two main components: (i) the non-controlling interest fair value adjustment in ISA's subsidiaries, mainly ISA CTEEP, ISA REP, and Consorcio Transmantaro (COP$890,575 million); and (ii) Ecopetrol S.A.'s non-controlling interest in ISA (COP$10,265,482 million).

&nbsp;&nbsp;&nbsp;&nbsp;(6) Goodwill derived from the acquisition represents the future profitability of the businesses and potential upsides such as the possibility to expand some of the existing businesses, management's know-how to identify new business opportunities and to finance them. Recognized Goodwill is not deducted for tax purposes in Colombia.

Acquisition-related costs such as fees for legal and financial advice and commissions were recognized in the historical consolidated financial statements of Ecopetrol S.A. for the year ended December 31, 2021.

2. Pro Forma Adjustments and Assumptions

2.1. IFRS and accounting policies alignment adjustments

No significant differences between Ecopetrol's and ISA's accounting policies were identified in the preparation of the unaudited pro forma condensed combined financial information.

2.2 Pro forma adjustments

a) Depreciation of property, plant, and equipment

Ecopetrol identified and valued COP$5,233,557 million in property, plant and equipment assets acquired in the acquisition of ISA. The following table summarizes the estimated fair values of ISA identifiable tangible assets and their estimated useful lives and uses a straight-line method of depreciation:

---

| | | |
|:---|:---|:---|
|  | <br>**Estimated**<br>**fair value**<br>**(in millions of**<br>**Colombian pesos)** | **Depreciation**<br>**expense for the eight**<br>**months ended**<br>**August 31, 2021**<br>**(in millions of**<br>**Colombian pesos)** |
| Plant and equipment | 1235297 | 54926 |
| Transmission line | 3619113 | 55768 |
| Buildings | 194747 | 2722 |
| Lands | 139862 |  |
| Others | 44538 | 4750 |
|  | **5233557** | **118166** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

b) Amortization of intangible assets

Ecopetrol identified and valued COP$4,596,134 in intangible assets acquired in the Acquisition. The following table summarizes the estimated fair values of ISA's identifiable intangible assets and their estimated useful lives and uses a straight-line method of amortization:

---

| | | |
|:---|:---|:---|
|  | <br>**Estimated**<br>**fair value**<br>**(in millions of**<br>**Colombian pesos)** | **Depreciation**<br>**expense for the**<br>**eight months ended**<br>**August 31, 2021**<br>**(in millions of**<br>**Colombian pesos)** |
| Concessions (1) | 3353577 | 129582 |
| Easements | 984770 |  |
| Brands | 257787 |  |
|  | **4596134** | **129582** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes Transelca S.A. E.S.P.'s concession arrangement of COP$612,485 million, which has no expiration date based on the terms and conditions of the agreement; hence, this intangible asset has an indefinite useful live and is tested for impairment annually, as required by IAS 36, *Impairment of Assets.* 

**c) Interest expense on current borrowings and financing**

The following adjustments have been recorded to interest expense on the debt to finance the acquisition of ISA:

---

| | |
|:---|:---|
|  | **Interest expense for the eight**<br>**months ended**<br>**August 31, 2021 (in millions of**<br>**Colombian pesos)** |
| Bonds (1) | 237067 |
| Commercial loan (2) | 38837 |
| **Total estimated interest expenses** | **275904** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) The adjustment to record interest expense assumes the US$1.25 billion 4.625% Notes due 2031 and the US$750 million 5.875% Notes due 2051, that were issued in October 2021 to partially refinance the commercial loans of US$3,672 million that were obtained to finance the Acquisition, were obtained on January 1, 2021, and were outstanding for the entire year ended December 31, 2021. The interest coupon rates assumed for the purpose of preparing this pro forma information are 4.625% and 5.875%, with maturities of 10 and 30 years, respectively.

A devaluation of the Colombian peso as compared with the U.S. dollar by 1% and 5% would result in an increase in interest expense of COP$2,766 and COP$13,831, respectively, for the year ended December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The adjustment to record interest expense assumes commercial loans with international banks of US$1,672 million to finance the acquisition of ISA were obtained on January 1, 2021, and were outstanding for the entire year ended December 31, 2021. The interest rate assumed for the purpose of preparing this pro forma information is 3-month-LIBOR plus 80 basis points, with maturity in August 2023. An increase of the 3-month-LIBOR by 1% and 5% would result in an increase in interest expense of COP$71 and COP$354, respectively, for the year ended December 31, 2021.

**d) Hedging operations**

Ecopetrol designates certain loans as a hedging instrument in respect of its exposure to exchange rate risk in future crude oil exports. Ecopetrol designated US$3,672 million of foreign currency debt (commercial loans and the Notes previously described) as a hedging instrument used to hedge the cash flows of future crude oil exports.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | |  | |  | |
|  |  | <br>**Bonds** |  | <br>**Commercial**<br>**loan** |  | **Pro forma**<br>**adjustments**<br>**for hedged** |
| Hedge for future exports |  | 50,230 |  | 40,659 |  | **90,889** |
| Financial cost due to hedge ineffectiveness |  | 12,288 |  | 9,946 |  | **22,234** |
|  |  |  |  |  |  | **113,123** |

---

The adjustment to record the hedge accounting assumes that the hedging instrument was issued on January 1, 2021. The ineffective portion is recognized in the statement of profit or loss and the realization of hedge for future exports.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

e) Deferred and Current Taxes Expense

Deferred tax liability recognized in the PPA, comprises primarily the temporary differences generated between the tax and accounting basis for property, plant and equipment and intangible assets measured at fair value, using the applicable statutory rate across jurisdictions. The impact of the pro forma adjustments previously described in income taxes is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | |  |
| ***Current tax*** | **Adjustments to pro**<br>**forma combined**<br>**statement of income data**<br>**before income taxes** | <br>**Statutory tax**<br>**rate** | <br>**Pro forma income**<br>**tax adjustment** |  |
| Interest expense | (275904) | 31% | 85530 | (c) |
| Hedge effect  | (113123) | 31% | 35068 | (d) |
| ***Deferred tax*** |  |  |  |  |
| PP&E and intangible assets (1) | (247748) | (2) | 75674 | (a)(b) |
|  | **(636775)** |  | **196272** |  |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) The adjustment reflects the variation to the tax bases of plant and equipment property assets and intangibles assets of the PPA.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The tax rate is applicable according to the jurisdiction: Colombia 31%; Brazil 34%; Chile 27%; Peru 29,5%.

**e) Functional and presentation currencies**

The pro forma financial information is presented in Colombian Pesos, which is Ecopetrol's functional and reporting currencies. The adjustments of subsidiaries with functional currencies different from Ecopetrol's functional currency were translated initially to US Dollars and then to Colombian Pesos using the following average exchange rates for the period from January 1, 2021, to the Acquisition date.

---

| | | |
|:---|:---|:---|
| **Month** |  | **USD/COP** |
| January |  | 3,491.32 |
| February |  | 3,554.50 |
| March |  | 3,612.77 |
| April |  | 3,650.78 |
| May |  | 3,735.67 |
| June |  | 3,685.04 |
| July |  | 3,829.42 |
| August |  | 3,881.18 |

---

f) Earnings per share

The following table reflects the pro forma net income and share data used in the basic and diluted pro forma earnings per share calculations:

---

| | |
|:---|:---|
|  | **For the twelve**<br>**months ended**<br>**December 31,**<br>**2021** |
| **Numerator** |  |
| Net income attributable to equity holders of the parent for basic earnings (in millions of Colombian pesos) | 15903147 |
| **Denominator** |  |
| Pro forma weighted average number of shares | 41116694690 |
| **Basic and diluted earnings per share (COP)** | **386.78** |

---

g) Intercompany transaction

There are no transactions between Ecopetrol S.A. and its consolidated subsidiaries and ISA to be eliminated in the unaudited pro forma condensed combined financial information.

------

## Exhibit 99.3

**Exhibit 99.3**

**INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. <br>AND SUBSIDIARIES**

**CONSOLIDATED FINANCIAL <br>STATEMENTS**

**AS OF AND FOR THE YEAR ENDED<br>DECEMBER 31, 2020**

------

**Independent auditor's report**

To the shareholders

Interconexión Eléctrica S.A. E.S.P. and its subsidiaries

We have audited the consolidated financial statements of Interconexión Eléctrica S.A. E.S.P. and subsidiaries (hereinafter, the Company), which comprise the consolidated statement of financial position as of December 31, 2020 and the related consolidated statements of income and other comprehensive income (loss), changes in shareholders' equity and cash flows for the year then ended, and the related notes (collectively referred to as the "consolidated financial statements").

**Management´s Responsibilities for the Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Financial Information Standards Accepted in Colombia; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

**Auditor's Responsibilities**

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Basis for Qualified Opinion**

The Company's consolidated financial statements do not disclose comparative information in respect of the preceding period as specified in International Accounting Standards 1, *Presentation of Financial Statements.* In our opinion, disclosure of this information is required by Financial Information Standards Accepted in Colombia.

**Qualified Opinion**

In our opinion, except for the omission of the information described in the Basis for Qualified Opinion paragraph, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and the consolidated results of its operations and its cash flows for the year then ended in accordance with Financial Information Standards Accepted in Colombia.

------

**Accounts Receivable from the Brazilian Government**

As described in Note 5 of the consolidated financial statements, CTEEP, a subsidiary of Interconexión Eléctrica S.A. E.S.P. through ISA Capital do Brasil, recorded a net balance of accounts receivable from the Sao Paulo State of approximately $1,175,056 million, related to the impacts of Law 4.819 of 1958, which granted to the employees of companies subject to the control of the Sao Paulo State benefits already granted to other public servers. CTEEP has undertaken legal actions before the respective State authorities to collect these accounts receivable. The accompanying financial statements do not include adjustments that could result from the outcome of this uncertainty. Our opinion is not modified by this matter.

---

| | |
|:---|:---|
|  | /s/ Cesar Colodete Lucas |
|  | Independent Auditor |
| Medellín, Colombia |  |
| October 26, 2021 |  |

---

------

**INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF FINANCIAL POSITION**

**As of December 31, 2020**

Amounts expressed in millions of Colombian pesos

---

| | | |
|:---|:---|:---|
|  | **Note** | **2020** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | 4 | 3781713 |
| Trade receivables | 5 | 4084344 |
| Other financial assets | 5.2 | 1086663 |
| Current tax receivable | 18.3 | 260466 |
| Inventories | 8 | 100645 |
| Other assets | 6 | 394877 |
| Loans receivable from related parties | 5 | 77 |
| **Total current assets** |  | **9708785** |
| **Non-current assets** |  |  |
| Restricted cash | 7 | 217646 |
| Investments in associates and joint ventures | 9 | 3124526 |
| Investments in financial instruments |  | 17102 |
| Trade receivables | 5 | 18845842 |
| Other financial assets | 5.2 | 148 |
| Inventories | 8 | 64521 |
| Property, plant, and equipment | 10 | 12179180 |
| Intangible assets | 11 | 8277346 |
| Other assets | 6 | 128094 |
| Deferred tax assets and other tax receivable | 18.2-18.3 | 1613592 |
| Loans receivable from related parties | 5 | 17287 |
| **Total non-current assets** |  | **44485284** |
| **Total assets** |  | **54194069** |
| **LIABILITIES AND EQUITY** |  |  |
| **Current liabilities** |  |  |
| Loans and borrowings | 13 | 1266015 |
| Accounts payable | 14 | 996635 |
| Employee benefits | 19 | 120979 |
| Current tax payable | 18.4 | 376021 |
| Provisions | 17 | 368985 |
| Other liabilities and deferred revenue | 20 | 274406 |
| **Total current liabilities** |  | **3403041** |
| **Non-current liabilities** |  |  |
| Loans and borrowings | 13 | 21202820 |
| Accounts payable | 14 | 222268 |
| Employee benefits | 19 | 781100 |
| Provisions | 17 | 247877 |
| Other liabilities and deferred revenue | 20 | 1541354 |
| Deferred tax liabilities and tax payable | 18.2 18.4 | 6649416 |
| **Total non-current liabilities** |  | **30644835** |
| **Total liabilities** |  | **34047876** |
| **EQUITY** |  |  |
| Subscribed and paid-in capital | 21.1 | 36916 |
| Additional paid-in capital | 21.2 | 1428128 |
| Reserves | 21.5 | 6241845 |
| Retained earnings |  | 5266872 |
| Other comprehensive income |  | 194014 |
| **Equity attributable to equity holders of the parent** |  | **13167775** |
| Non-controlling interests |  | 6978418 |
| **Total equity** |  | **20146193** |
| **Total equity and liabilities** |  | **54194069** |

---

See notes accompanying to consolidated financial statements.

------

**INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME (LOSS)**

**Year ended as of December 31, 2020**

Amounts expressed in millions of Colombian pesos, except otherwise noted.

---

| | | |
|:---|:---|:---|
|  | **Note** | **2020** |
| Revenues from contracts with customers | 22 | 9110847 |
| Operating costs | 24.1 | (3864858) |
| **Gross profit** |  | **5245989** |
| Administrative expenses | 24.2 | (726339) |
| Effect of periodic tariff review | 25 | 1056979 |
| Share of profit of associates and joint ventures | 26 | 519366 |
| Other income |  | 115334 |
| **Operating profit** |  | **6211329** |
| Financial results | 27 | (1372872) |
| **Profit before taxes** |  | **4838457** |
| Income tax expense | 18.1 | (1074232) |
| **Net profit for the year** |  | **3764225** |
| **OTHER COMPREHENSIVE INCOME** |  |  |
| <u>Items that will not be reclassified to profit or loss in subsequent periods</u>: |  |  |
| Remeasurement losses from defined benefit plans, net of taxes |  | (51194) |
|  |  | **(51194)** |
| <u>Items that may be reclassified to profit or loss in subsequent periods:</u> |  |  |
| Unrealized losses from cash-flow hedges, net of taxes |  | (125368) |
| Foreign currency translation losses |  | (3797001) |
|  |  | **(3922369)** |
| **Other comprehensive loss for the year, net of tax** |  | **(3973563)** |
| **TOTAL COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAX** |  | **(209338)** |
| **Net profit attributable to:** |  |  |
| Non-controlling interest |  | 1705034 |
| Owners of parent |  | 2059191 |
|  |  | **3764225** |
| **Comprehensive loss attributable to:** |  |  |
| Owners of the parent company |  | 1473282 |
| Non-controlling interest |  | (1682620) |
|  |  | **(209338)** |
| **Basic and diluted earnings per share attributable to equity holders of the parent (Colombian Pesos)** | 21.3 | **1859** |

---

See notes accompanying to consolidated financial statements.

------

**INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**Year ended as of December 31, 2020**

Amounts expressed in millions of Colombian pesos.

---

| | | |
|:---|:---|:---|
|  |  | **2020** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Collections from trade receivables |  | 7887505 |
| Payments to suppliers for the provision of goods and services |  | (3042266) |
| Payments to and on behalf of employees |  | (916637) |
| Other payments |  | (254819) |
|  |  | **3673783** |
| Income taxes paid |  | (907034) |
| **Net cash flows from operating activities** |  | **2766749** |
| **CASH FLOWS USED IN INVESTMENT ACTIVITIES** |  |  |
| Acquisition of subsidiaries, net of cash acquired | 2.3 | (793129) |
| Acquisition of interest in joint ventures |  | (146304) |
| Purchase of properties, plant, and equipment |  | (1287898) |
| Purchase of intangible assets |  | (672148) |
| Cash advances and loans granted to related parties |  | (484131) |
| Dividends received |  | 108922 |
| Interest received |  | 84664 |
| Other cash inflows |  | 107609 |
| **Net cash used in investment activities** |  | **(3082415)** |
| **CASH FLOWS USED IN FINANCING ACTIVITIES** |  |  |
| Proceeds from loans and borrowings | 13 | 4926611 |
| Repayment of loans and borrowings |  | (2553392) |
| Repayment of lease liabilities | 12 | (71040) |
| Dividends paid |  | (1252876) |
| Interest paid |  | (1334485) |
| Other cash outflows |  | (193160) |
| **Net cash used in financing activities** |  | **(478342)** |
| Effects of exchange rate variation in cash and cash equivalents |  | 2088520 |
| **Net increase in cash and cash equivalents** |  | **1294512** |
| **Cash and cash equivalents at the beginning of the year** |  | **2487201** |
| **Cash and cash equivalents at the end of the year** |  | **3781713** |

---

See notes accompanying to consolidated financial statements.

------

**INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY**

**Year ended as of December 31, 2020**

Amounts expressed in millions of Colombian pesos

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** |
|  |  |  | **RESERVES** | **RESERVES** | **RESERVES** | **RESERVES** | **RESERVES** |  |  |  |  |
|  |  |  |  |  |  | **For rehabilitation** |  |  |  |  |  |
|  |  |  |  |  |  | **and** |  |  | **Other**  |  |  |
|  | **Subscribed and** | **Additional**  |  | **By tax**  | **For equity**  | **replacement of**  | **Total**  | **Retained** | **comprehensive** | **Non-controlling**  | **Total** |
|  | **paid-in capital** | **paid-in capital** | **Legal** | **regulation** | **strengthening** | **STN assets** | **reserves** | **earnings** | **income** | **interest** |  |
| **NOTE** | **21.1** | **21.2** |  |  | **21.5** |  |  |  |  |  |  |
| **Balance as of December 31, 2019** | **36916** | **1428128** | **18458** | **898802** | **4391329** | **37434** | **5346023** | **4851186** | **779923** | **8661038** | **21103214** |
| Appropriation approved by the General Shareholders' Meeting |  |  |  |  | 895822 |  | 895822 | (895822) |  |  |  |
| Ordinary dividends at COP 675 per share and per share settled on 1.107.677.894 outstanding shares |  |  |  |  |  |  |  | (747683) |  |  | (747683) |
| Foreign currency translation |  |  |  |  |  |  |  |  | (409347) | (3387654) | (3797001) |
| Remeasurement losses from defined benefit pension plan and unrealized losses from cash-flow hedges |  |  |  |  |  |  |  |  | (176562) |  | (176562) |
| Net profit for the year |  |  |  |  |  |  |  | 2059191 |  | 1705034 | 3764225 |
| **Balance as of December 31, 2020** | **36916** | **1428128** | **18458** | **898802** | **5287151** | **37434** | **6241845** | **5266872** | **194014** | **6978418** | **20146193** |

---

See notes accompanying to consolidated financial statements.

------

**INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF DECEMBER 31, 2020**

(Amounts expressed in millions of Colombian pesos, except otherwise noted)

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **General information** 

Interconexión Eléctrica S.A. E.S.P. ("ISA" or the "Company"), with headquarters in Medellín, was incorporated as joint stock company by public deed No. 3057, issued by the 8<sup>th</sup> Notary Office of the Notarial Circuit of Bogotá on September 14, 1967.

On November 22, 1996, by public deed No. 746 issued by the Sole Notary Office of Sabaneta, ISA changed its legal nature to Mixed Utility Company, incorporated as a Joint Venture of commercial and national nature, linked to the Ministry of Mines and Electricity, with indefinite term, and subject to the legal regime provided for by Law 142 of 1994, a situation that materialized on January 15, 1997 with the entry of private contributions.

In accordance with the considerations of the Constitutional Court in its ruling C-736 dated September 19, 2007, ISA has a special legal nature by being defined as a Mixed Utility Company, decentralized by services, which is part of the executive branch of the public power with special and legal regime of private law.

Headquarters are in Medellín, calle 12 Sur # 18-168.

The principal activities of ISA and its subsidiaries (collectively, "The Group") are:

&nbsp;&nbsp;&nbsp;&nbsp;● The provision of the Electricity Transmission services.

&nbsp;&nbsp;&nbsp;&nbsp;● The development of information and telecommunication technology systems, activities, and services.

&nbsp;&nbsp;&nbsp;&nbsp;● The direct or indirect participation in activities and services related to the transport of other energies.

&nbsp;&nbsp;&nbsp;&nbsp;● The provision of technical and non-technical services related to its principal activities.

&nbsp;&nbsp;&nbsp;&nbsp;● The development of infrastructure projects and their commercial operation.

&nbsp;&nbsp;&nbsp;&nbsp;● The investment in other companies.

&nbsp;&nbsp;&nbsp;&nbsp;● Design, construction, operation, and maintenance of road infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Basis of Preparation** 

The Group prepares its consolidated financial statements in accordance with Financial Information Standards Accepted in Colombia ("NCIF"), which are compiled and updated through Decree 2270 of 2019 based on Decree 2420 of 2015 and subsequent modifications and other legal provisions applicable to entities supervised and/or controlled by the Colombian Superintendence of Corporations and General Accounting Office ("Contaduría General de la Nación"). The Financial Information Standards Accepted in Colombia correspond to International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

The Group´s consolidated financial statements as of and for the year ended December 31, 2020, prepared under Financial Information Standards Accepted in Colombia do not present any significant differences as compared with International Financial Reporting Standards issued by the IASB.

The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments and debt and equity financial assets that have been measured at fair value.

The consolidated financial statements are presented in Colombian pesos and all values are rounded to the nearest million, except when otherwise indicated.

The Group has prepared the consolidated financial statements on the basis that it will continue to operate as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **Consolidation principles** 

The consolidated financial statements include the financial statements of ISA and all of its subsidiaries, including structured entities that are controlled by ISA as of December 31, 2020. Subsidiaries are entities over which the Group exerts direct or indirect control.

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Structured entities are established through contractual agreements with financial institutions for the management of resources that do not have voting rights. Structured entities over which ISA exerts control are Fundo de Investimento Referenciado di Bandeirantes, Fundo de Investimento Xavantes Referenciado di, Fundo de Investimento Assis and Fundo de Investimento Barra Bonita Renda Fixa Referenciado through the subsidiary ISA CTEEP.

The Group controls an entity when it exerts control over it (through existing rights that grant it the authority to direct the entity´s relevant activities); when it is exposed to or has rights to variable returns from its involvement with the entity and it has the ability to affect those returns through its power over the same. This occurs when ISA has less than the majority of the voting rights over an investee but still has the power over the investee to direct the entity's relevant activities unilaterally.

The Group considers all relevant facts and circumstances when evaluating whether it controls an investee, including:

&nbsp;&nbsp;&nbsp;&nbsp;● The percentage of voting rights, and the participation and dispersion of percentages of voting rights held by others;

&nbsp;&nbsp;&nbsp;&nbsp;● Potential voting rights held by the Group and others;

&nbsp;&nbsp;&nbsp;&nbsp;● Rights arising from contractual agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;● Any additional facts or circumstances indicating that the Group has, or lacks, the current ability to direct relevant activities when decision-making is needed, including voting patterns in previous shareholders' meetings.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which the Group's control commences over the subsidiary, until the date on which control ceases.

All intercompany assets and liabilities, revenues, expenses, and cash flows related to the Group's intercompany transactions are eliminated in consolidation. Non-controlling interest represents the portion of the income, other comprehensive income and net assets in subsidiaries that are not attributable to ISA's shareholders.

On the date the Group obtains control over an entity, the subsidiary´s assets and liabilities are recorded at fair value, excluding certain assets and liabilities that are recorded following the valuation principles set out in other IFRS.

Investments in subsidiaries are recorded based on financial statements as of the reporting date, under Financial Information Standards Accepted in Colombia ("NCIF") and translated into Colombian pesos according to the provisions of IAS 21, based on their functional currency and using the U.S. dollar as reference currency. The income and financial position of subsidiaries of ISA that use a functional currency that is different from the presentation currency, are translated into the presentation currency as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Assets and liabilities are translated into Colombian pesos at the closing rate, which corresponds to the Representative Market Rate (RMR) on the balance sheet date, certified by the Financial Superintendence of Colombia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Revenue and expense items are translated into Colombian pesos at the average exchange rate in force at the end of each period, unless it changes significantly, in which case the exchange rates of the date when the transaction is performed, are to be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Equity is stated at the historical exchange rate on the acquisition or contribution date, and at the average exchange rate on the date of generation, in the case of accumulated income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If applicable, exchange differences that arise are recognized in other comprehensive income and are accumulated in equity, in gains (losses) from conversion exchange differences (attributed to the non-controlling interest, as appropriate).

Accounting policies of the Group's subsidiaries, associates, and jointly controlled companies are applied consistently. In the investments in associates and joint ventures, the Group applies the equity method of accounting.

An associate is an entity over which the Company is able to exercise significant influence, through the power to participate in decisions about its operating and financial policies.

In general, the significant influence is presumed in cases where the Group's interest in an associate exceed 20%, even though, as in the case of control, it must be evaluated.

A joint venture is an agreement whereby the parties exerting joint control have rights to the net assets of the entity. Joint control only occurs when the decisions on relevant activities require the unanimous consent of the parties sharing control.

The equity method is a method of accounting whereby the investment in associates and jointly controlled entities is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets. The net profit or loss for the period and other comprehensive income of the entity that applies the equity method include its share of the profit or loss for the period and other comprehensive income of the entity. Dividends received from these entities are recorded as lower value of the investment in the associate or jointly controlled entity.

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Transactions that imply a loss of control or significant influence over an associate or a jointly controlled entity are accounted for by recognizing any retained interest at its fair value, and the gain or loss resulting from the transaction is recognized in the income for the period, including the corresponding items of other comprehensive income.

Regarding transactions that do not imply a loss of control or significant influence over the associate or jointly controlled entity, the equity method remains being applied and the portion of the gain or loss recognized in other comprehensive income relating to the reduction in the stake of the property is reclassified in income.

The following is the ownership interest that ISA holds in its consolidated subsidiaries as of December 31, 2020:

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| | |
|:---|:---|
| **Subsidiary** | **2020** |
| ISA TRANSELCA | 100.00 |
| XM (\*) | 99.73 |
| SISTEMAS INTELIGENTES EN RED | 99.77 |
| ISA INTERCOLOMBIA | 100.00 |
| INTERNEXA | 99.42 |
| RUTA COSTERA | 100.00 |
| ISA INTERVIAL COLOMBIA | 100.00 |
| ISA REP | 60.00 |
| ISA PERÚ | 100.00 |
| CONSORCIO TRANSMANTARO | 60.00 |
| PROYECTOS DE INFRAESTRUCTURA DEL PERÚ | 100.00 |
| INTERNEXA PERÚ | 99.42 |
| ORAZUL ELECTRICITY GROUP | 100.00 |
| ORAZUL ELECTRICITY TRANSMISION | 99.98 |
| ETENORTE | 99.98 |
| ETESELVA | 99.98 |
| ISA INVERSIONES CHILE | 100.00 |
| ISA INVERSIONES MAULE |  |
| ISA INTERVIAL CHILE | 100.00 |
| RUTA DEL MAIPO | 100.00 |
| RUTA DE LA ARAUCANÍA | 100.00 |
| RUTA DE LOS RÍOS | 75.00 |
| RUTA DEL BOSQUE | 100.00 |
| RUTA DEL MAULE | 100.00 |
| RUTA DEL LOA | 100.00 |
| ISA INVERSIONES TOLTEN | 100.00 |
| ISA INTERCHILE | 100.00 |
| INTERNEXA CHILE | 98.43 |
| ISA INVERSIONES COSTERA CHILE | 100.00 |
| INTERCONEXIONES VIALES | 65.00 |
| ISA CTEEP | 35.82 |
| ISA CAPITAL DO BRASIL | 100.00 |
| INTERLIGAÇÃO ELÉTRICA PINHEIROS | 35.82 |
| INTERLIGAÇÃO ELÉTRICA DE MINAS GERAIS | 35.82 |
| INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI | 35.82 |
| EVRECY PARTICIPAÇÕES | 35.82 |
| INTERLIGAÇÃO ELÉTRICA TIBAGI | 35.82 |
| INTERLIGAÇÃO ELÉTRICA AGUAPEÍ | 35.82 |
| INTERLIGAÇÃO ELÉTRICA ITAQUERÊ | 35.82 |
| INTERLIGAÇÃO ELÉTRICA ITAPURA | 35.82 |
| INTERLIGAÇÃO ELÉTRICA NORTE E NORDESTE | 35.82 |
| INTERLIGAÇÃO ELÉTRICA SUL | 35.82 |
| INTERLIGAÇÃO ELÉTRICA ITAÚNES | 35.82 |
| INTERLIGAÇÃO ELÉTRICA BIGUAÇU | 35.82 |
| INTERLIGAÇÃO ELÉTRICA RIACHO GRANDE | 35.82 |
| ISA INVESTIMENTOS E PARTICIPAÇÕES | 100.00 |
| INTERNEXA BRASIL OPERADORA DE TELECOMUNICAÇÕES | 99.42 |
| INTERNEXA PARTICIPAÇÕES | 99.42 |
| ISA BOLIVIA | 100.00 |
| INTERNEXA ARGENTINA | 99.42 |
| LINEAR SYSTEMS RE | 100.00 |

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(\*) XM is the subsidiary responsible for managing the electricity trading system in Colombia. As part of its responsibility as the sole intermediary of the Electricity Sector in Colombia, XM collects cash from third-party agents and distributes them to the third-party beneficiaries under a pass-through arrangement. As of December 31, 2020, XM had cash and accounts payable balances of COP 590,842, managed under this pass-through-type of arrangement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**2.3** **Business combinations** 

**2.3.1** **ORAZUL ELECTRICITY GROUP**

The Group, through its subsidiary ISA PERU, entered into an agreement for the acquisition of 100% interest in ORAZUL ELECTRICITY GROUP and 0.004% interest in ORAZUL ELECTRICITY TRANSMISSION. On August 24, 2020, upon meeting the closing conditions the acquisition was completed.

ORAZUL ELECTRICITY GROUP holds a 99.976% ownership in ORAZUL ELECTRICITY TRANSMISSION, which holds a 99.999% interest in ETENORTE and ETESELVA, concessions acquired in perpetuity that operate six electric electricity transmission lines in Peru, totaling 746 kilometers of circuit. The transmission lines located in central and northern Peru in the departments of Ancash, Cajamarca, Huánuco, Lambayeque, and Uyacali operate in the Peruvian Primary Transmission System (SPT) and Secondary Transmission System (SST).

This transaction had the purpose of increasing the Group's presence in the Peruvian market and increased its market share to 73% based on revenue, thus consolidating its position as the largest electricity transmission company in Peru.

The consideration paid for the acquisition of control of ORAZUL ELECTRICITY GROUP was COP 595,095 (USD 158,254,066).

**Assets acquired and liabilities incurred at acquisition date**

The fair value of assets acquired, liabilities assumed, and non-controlling interests, as well as the residual goodwill, were determined based on the preliminary valuation prepared by an independent consulting firm, considering the financial statements as of August 31, 2020.

Fair value of assets and liabilities as of the acquisition date are detailed below:

---

| | |
|:---|:---|
|  | **August** <br>**24, 2020** |
| **Current assets** | **32806** |
| Cash and cash equivalents | 26484 |
| Accounts receivable from customers and other accounts receivable | 3831 |
| Other | 2491 |
| **Non-current assets** | **697493** |
| Property, plant, and equipment (Note 10) | 87440 |
| Intangible asset (Rights-of-use) (Note 11) | 610012 |
| Other | 41 |
| **Total assets** | **730299** |
| **Current liabilities** | **3419** |
| Accounts payable to suppliers and other accounts payable | 325 |
| Current taxes | 1904 |
| Other | 1190 |
| **Non-current liabilities** | **182308** |
| Deferred taxes (Note 18) | 182308 |
| **Total liabilities** | **185727** |
| **Total net assets at fair value** | **544572** |
| Non-controlling interest measured at fair value | (38) |
| Goodwill | 50561 |
| **Consideration paid in cash** | **595095** |

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The goodwill of COP 50,561 comprises the expected synergies arising from the acquisition.

The deferred tax liabilities are mostly comprised of the deferred tax arising from the difference between tax and book basis of the intangible asset (Rights-of-use) recognized as part of the purchase price allocation.

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Below are the net flows of cash and cash equivalents:

---

| | |
|:---|:---|
|  | **2020** |
| Cash and cash equivalent acquired (included in cash flows from investing activities) | 26484 |
| (-) Costs related to the acquisition (included in cash flows from operating activities) | (6066) |

---

**Effect of the acquisition**

The impact on the Group's income statement between the acquisition date and December 31, 2020 is shown below, as well as the impact of the acquisition had it occurred on January 1, 2020.

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| | | |
|:---|:---|:---|
| **From 31.08.2020 to 31.12.2020** | **&nbsp;&nbsp;&nbsp;&nbsp;**  | **COP** |
| Revenues |  | 15,771 |
| Profit before taxes |  | 7,042 |
| **From 01.01.2020 to 31.12.2020 (Unaudited)** |  |  |
| Revenues |  | 44,989 |
| Profit before taxes |  | 23,225 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3.2** **RUTA COSTERA** 

On October 24, 2019, the Group, through its subsidiary INTERCONEXIONES VIALES, signed a share purchase and sale agreement for the acquisition of 100% stake of RUTA COSTERA, owned by MHC Ingeniería y Construcción de Obras Civiles S.A.S., Constructora MECO S.A., Constructora Colpatria S.A. and Castro Tcherassi S.A.

On October 22, 2020, the acquisition transaction was completed once the closing conditions were met, including authorizations from the National Infrastructure Agency (ANI), insurers and concession funders.

RUTA COSTERA was incorporated in Colombia and entered into Concession Contract No. 004 with ANI on September 10, 2014. This Fourth Generation (4G) Concession has six operating units with 146 kilometers of roads and connects two main cities (Tranche 1: Cartagena-Barranquilla 110 km, and Tranche 2: Circunvalar de la Prosperidad between Malambo and Barranquilla, 36 km of double lane). The project comprises the Gran Manglar Viaduct, located on Ciénaga de la Virgen, Cartagena (5.4 km)

This transaction represents an important movement for implementing the strategy in the Road Concessions business unit in which the Group intends to participate in Colombia and Peru, consistent with its objective of diversifying its main electricity transmission business unit.

The purchase price to control RUTA COSTERA was COP 531,454.

**Assets acquired and liabilities incurred at acquisition date**

The fair value of assets acquired and liabilities incurred, as well as the calculation of the gain resulting from the purchase in advantageous terms, were determined according to the valuation made by an independent consulting firm.

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Fair value of identifiable assets and liabilities as of the acquisition date are detailed below:

---

| | |
|:---|:---|
|  | **October 22, 2020** |
| **Current assets** | **303092** |
| Cash and cash equivalents (Note 4) | 285694 |
| Accounts receivable from customers and others | 2935 |
| Current taxes | 1720 |
| Other | 12743 |
| **Non-current assets** | **1906169** |
| Concession financial asset (Notes 5 and 23) | 1899866 |
| Accounts receivable from customers and others | 1018 |
| Property, plant, and equipment | 3575 |
| Intangible assets | 148 |
| Other | 1562 |
| **Total assets** | **2209261** |
| **Current liabilities** | **12709** |
| Accounts payable to suppliers and others | 5631 |
| Employee benefits | 1293 |
| Current taxes | 1029 |
| Other | 4756 |
| **Non-current liabilities** | **1625985** |
| Loans and borrowings (Note 13) | 1516108 |
| Accounts payable to suppliers and other accounts payable | 6916 |
| Deferred taxes (Note 18) | 46010 |
| Contingent liabilities and provisions | 2711 |
| Other | 54240 |
| **Total liabilities** | **1638694** |
| **Total net assets at fair value** | **570567** |

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The transaction resulted in the following accounting impacts at acquisition date:

---

| | | |
|:---|:---|:---|
|  |  | |
|  |  | **October 22,**<br>**2020** |
| **Purchase price** |  | **531,454** |
| Net assets acquired at fair value |  | 570,567 |
| **Gain on bargain purchase** |  | **39,113** |

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Below are the net flows of cash and cash equivalents:

---

| | |
|:---|:---|
|  | **2020** |
| Cash and cash equivalent acquired (included in cash flows from investing activities) | 285694 |
| (-) Costs related to the acquisition (included in cash flows from operating activities) | (1700) |

---

**Effect of the acquisition**

The impact on ISA's income statement between the purchase date and December 31, 2020 is shown below, as well as what could be the impact if the acquisition had occurred on January 1, 2020.

---

| | | |
|:---|:---|:---|
| **From 31.10.2020 to 31.12.2020** |  | **COP** |
| Revenues |  | 94,659 |
| Profit before taxes |  | 7,267 |
| **From 01.01.2020 to 31.12.2020 (Unaudited)** |  |  |
| Revenues |  | 214,698 |
| Profit before taxes |  | 15,391 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **Application of standards implemented in Colombia as of January 1, 2020** 

According to Decree 2270 of 2019, the following standards came into force within the technical regulatory framework.

ISA concluded that the adoption of these standards and interpretations did not have a material impact on the consolidated financial statements.

**2.4.1** **IFRIC 23 – Uncertainty over income tax treatments**

This interpretation clarifies how to apply the requirements for the recognition and measurement of IAS 12 when there is uncertainty over income tax treatments. In this case, an entity will recognize and measure its deferred or current tax asset or liability by applying IAS 12 requirements based on the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits, and tax rates determined by applying this interpretation.

The Group conducted a practical analysis of IFRIC 23, determining that to recognize and measure deferred and current tax assets and liabilities when there is uncertainty about the acceptance of a tax treatment, the interpretation that is most likely to be accepted by the entities in charge of examining tax returns should be applied. The Group also concluded that an impact on the financial statements should only result from the application of this IFRIC when an item with uncertain treatment is estimated differently, by applying the interpretation with the highest tax acceptance.

The Group applied this standard in advance, from 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4.2** **IAS 1 – Presentation of financial statements** 

The amendments align the definition of "Material" between IAS 1 – Presentation of Financial Statements and IAS 8 – Accounting policies, changes in accounting estimates, and errors, and clarify certain aspects of the definition. The new definition establishes that "Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4.3** **IAS 19 – Employee benefits** 

Amendments to IAS 19 define the accounting treatment of any amendment, curtailing, or settlement of a plan that occurs during a financial year. Said changes specify that when a plan is amended, curtailed, or settled during the reporting year, the entity is required to:

&nbsp;&nbsp;&nbsp;&nbsp;● Determine the current cost of the service for the remaining period after the plan is amended, curtailed, or settled, applying the actuarial assumptions that are used to recalculate the net liability (asset) for defined provisions, reflecting the benefits offered and the plan assets after that event.

&nbsp;&nbsp;&nbsp;&nbsp;● Determine the net interest for the remaining period after the plan is amended, curtailed, or settled, by using: the net liability (asset) of the defined benefit that reflects the benefits offered under the plan and plan assets after that event, and the discount rate used to recalculate that net liability (asset) of the defined benefit.

The amendments also clarify that the entity first shall determine any past service cost, or settlement gain or loss, regardless of the effect of the asset ceiling. This amount is recognized as a profit or loss. The effect of the asset ceiling after the plan amendment, curtailment, or settlement is then determined and any changes in such effect, excluding amounts included in net interest, are recorded in other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4.4** **IFRS 3 – Business combinations** 

This interpretation clarifies that, to be considered a business, a set of activities and assets acquired must include, at least, an input and a substantive process where these contribute significantly to the capacity to create outputs. It restricts the definitions of a business and outputs by focusing on goods and services provided to customers and by eliminating the reference to the capacity to reduce costs. It provides guidance and graphic examples to help entities assess whether a substantive process has been acquired. It eliminates the assessment on market participants' capacity to replace any missing inputs or processes and continue the production of outputs, and adds an optional concentration test, which allows for a simplified assessment about a set of activities and assets acquired not being a business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4.5** **Conceptual framework** 

It contains definitions of concepts related to:

&nbsp;&nbsp;&nbsp;&nbsp;● Measurement: including factors considered when selecting measurement bases.

&nbsp;&nbsp;&nbsp;&nbsp;● Presentation and disclosure: including when to classify revenues or expenses in other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;● Non-recognition: including guidance on when assets or liabilities should be removed from the financial statements.

Additionally, it updates definitions of assets and liabilities as well as criteria to include them in the financial statements. Likewise, it clarifies the meaning of some concepts.

&nbsp;&nbsp;&nbsp;&nbsp;**2.5** **Standards issued by the IASB not yet effective in Colombia** 

Standards and interpretations that have been issued by the International Accounting Standards Board (IASB) but not yet effective in Colombia on the date of these financial statements are disclosed below. The Group will adopt these standards on the date they become effective, according to the decrees issued by the local authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.1** **IFRS 17 – Insurance contracts** 

In May 2017, the IASB issued IFRS 17, which is a new comprehensive accounting standard for insurance contracts that includes measurement, recognition, presentation, and disclosure. Once effective, IFRS 17 will replace IFRS 4, issued in 2005. IFRS 17 applies to all kinds of insurance contracts regardless of the type of issuing entity, as well as certain guarantees and financial instruments with discretionary participation features. There are few exceptions to this standard.

The main purpose of this standard is to provide an accounting model for insurance contracts that is more useful and confidential for insurers. Unlike IFRS 4 requirements, which mainly seek to protect previous local accounting policies, IFRS 17 provides a comprehensive model for these contracts, including all relevant issues. The essence of this standard is a general model, supplemented by:

&nbsp;&nbsp;&nbsp;&nbsp;● a specific adaptation for contracts with direct participation features (Variable Fee Approach),

&nbsp;&nbsp;&nbsp;&nbsp;● a simplified approach (the Premium Allocation Approach), mainly for short-term contracts.

IFRS 17 is effective for reporting periods beginning on or after 1 January 2023, with comparative figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. This standard is not applicable to the Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.2** **Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform** 

The amendments provide several exemptions that apply to all hedging relationships that are directly affected by the Interest Rate Benchmark Reform. A hedging relationship is affected if the reform results in uncertainty about the time and/or amount of cash flows based on benchmark rates of the hedged item or hedging instrument.

To date, the amendments have not been incorporated into the Colombian accounting framework by any decree. The Group is assessing the potential effect of this standard on its financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.3** **Amendment to IAS 1 – Presentation of Financial Statements – Classification of Liabilities as Current or Non-current** 

In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classification of liabilities as current or non-current. The amendments clarify the following:

● The meaning of the right to defer settlement of a liability.

● That the right to defer settlement of the liability should be granted at the end of the period.

● That the classification is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability.

● That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification.

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The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must be applied retrospectively. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.4** **Amendment to IFRS 3 – Business Combinations – Reference to the conceptual framework** 

In May 2020, the IASB issued the amendments to IFRS 3 – Business Combinations – Reference to the conceptual framework. The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting, issued in March 2018, without significantly changing its requirements. The Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential 'day 2' gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 or IFRIC 21, if incurred separately.

At the same time, the Board decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements.

The amendments are effective for annual reporting periods beginning on or after 1 January 2022 and apply prospectively

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.5** **Amendment IAS 16 – Property, plant and equipment – Proceeds before intended use** 

In May 2020, the IASB issued Property, Plant and Equipment – Proceeds Before Intended Use, which prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss.

The amendment is effective for annual reporting periods beginning on or after 1 January 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.6** **Amendment to IAS 37 – Provisions, Contingent Liabilities, and Contingent Assets – Cost of Fulfilling a Contract** 

In May 2020, the IASB issued amendments to IAS 37 to specify which costs a company should include when assessing whether a contract will be onerous or loss-making.

According to the amendments, a 'directly related cost approach' shall be applied. Costs directly related to a contract to provide goods or services comprise both incremental costs and an allocation of other costs that relate directly to contract activities. General and administrative costs are not directly related to the contract and shall be excluded, unless those costs are explicitly chargeable to the counterparty under the contract.

The amendments are effective for annual reporting periods beginning on or after 1 January 2022. The Group will apply these amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.7** **Amendment to IFRS 1 – First-time adoption of international financial reporting standards** 

The amendment permits a subordinate company that applies paragraph D16 (a) of IFRS 1 to measure cumulative translation differences (CTD) using amounts reported by the parent based on the date of transition to IFRS of such parent. This amendment also applies to associates or joint ventures that choose to apply paragraph D16 (a) of IFRS 1.

The amendment is effective for annual reporting periods beginning on or after 1 January 2022 with earlier adoption permitted."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.8** **Amendment to IFRS 9 – Financial instruments: '10 per cent' Test for Derecognition of Financial Liabilities** 

The amendment to IFRS 9 clarifies the fees a company includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These are only fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or the lender on behalf of the other. The entity shall apply the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.

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An entity applies the amendment prospectively to fair value measurements on or after the beginning of the first annual reporting period beginning on or after 1 January 2022 with earlier adoption permitted. The amendments are not expected to have a material impact on the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5.9** **IAS 41 – Agriculture – Taxation of fair value measurements** 

As part of its 2018-2020 annual improvements to the IFRS process, the IASB issued an amendment to IFRS 41 – Agriculture. The amendment to IAS 41 removed paragraph 22 requirement to exclude cash flows from taxation when measuring the fair value of assets within the scope of IAS 41.

An entity applies the amendment prospectively to fair value measurements on or after the beginning of the first annual reporting period beginning on or after 1 January 2022 with earlier adoption permitted. The amendments are not expected to have a material impact on the Group

&nbsp;&nbsp;&nbsp;&nbsp;**2.6** **Significant accounting judgements, estimates and assumptions** 

The preparation of the consolidated financial statements requires that management use judgments, estimates, and assumptions that affect the reported amounts for revenues, expenses, assets and liabilities, and its disclosures, including contingent liabilities. Uncertainty in these judgements and estimates could result in material adjustments in the carrying value of assets or liabilities in future periods. Management expects that variations, if any, would have no significant effect on the consolidated financial statements.

The determination if an information is material is a matter of judgment and depends on the facts and circumstances involved. These estimates are based on management´s experience and its best estimate regarding present and future events, and on the best use of the information available on the date of issuance of these consolidated financial statements. Actual results may differ from these estimates but are adjusted once they are known.

In applying the accounting policies of the Group, management has exercised the following judgements that have the most significant effects on the amounts recognized in the financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;● **Identification of Cash Generating Units (CGUs):** The CGU is the identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from the sale or provision of services, arising from other assets or groups of assets.

The identification of CGUs involves significant judgment, mainly the identification of an asset's CGU on the basis of independent cash inflows generated by the asset.

&nbsp;&nbsp;&nbsp;&nbsp;● **Disbursements incurred for concessions recognized as intangible assets, financial assets, or as contract asset under IFRIC 12 (Service Concession Arrangements):** Management of each of the companies that have entered into concession agreements determines the classification of the concession disbursements as intangible assets, contract assets, or financial assets, based on the characteristics of such agreements. Disbursements incurred related to concession agreements accounted for under the financial asset model are recognized as a contract asset during the construction phase and as a financial asset after construction is completed, based on the cash flows receivable under the concession and a discount rate that is reflective of a separate financing transaction between the parties under the concession contract for contract assets and for financial assets a discount rate that reflects the passage of time before payment is due and the counterparty credit risk. Disbursements incurred related to concessions under the intangible asset model are capitalized as an asset to the extent they meet the requirements of IAS 38 – Intangible assets (See Notes 3.8 and 3.9).

&nbsp;&nbsp;&nbsp;&nbsp;● **Impairment of non-financial assets:** Impairment exists when the carrying value of an asset exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices less incremental costs of disposing of the asset. The value in use calculation is based on a discounted cash-flow (DCF) model and the projections of expected future cash flows that do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the performance of the assets being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives recognized by the Group.

&nbsp;&nbsp;&nbsp;&nbsp;● **Estimation of assets and liabilities at fair value in a business combination:** At the acquisition date, the Group estimated the fair value of acquired assets and assumed liabilities based on the requirements of IFRS 3. Fair value of non-financial assets included in a business combination is determined in reference to the expected cash-flows that the asset will generate based on assumptions consistent with or available to other market participants.

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&nbsp;&nbsp;&nbsp;&nbsp;● **Useful lives values of property, plant, and equipment**: The estimation of useful lives of property, plant, and equipment components involves judgments and assumptions that could be affected if circumstances change. The Group reviews these assumptions annually and adjusts them prospectively if any adjustments are identified.

&nbsp;&nbsp;&nbsp;&nbsp;● **Provision for legal and administrative proceedings:** The Group is subject to claims relating to regulatory and arbitration proceedings, tax assessments and other claims arising in the normal course of business. Management evaluates these claims based on their nature, the likelihood that they materialize and the amounts involved, to decide on the amounts recognized and/or disclosed in the financial statements.

This analysis, which may require considerable judgment, includes the assessment of current legal proceedings brought against the Group and claims not yet initiated. A provision is recognized when the Group has a present obligation derived from a past event, it is likely that an outflow of resources of economic benefits will be required to settle the obligation, and a reliable estimate of the amount of such obligation can be made.

&nbsp;&nbsp;&nbsp;&nbsp;● **Recovery of deferred tax assets:** The use of professional judgment is required to determine whether deferred tax assets should be recognized in the statement of financial position. To recognize deferred tax assets, management is required to evaluate the probability that the company generates taxable income in future periods. The estimates of future taxable income are based on financial projections and the application of tax laws. Depending on how much future cash flows and taxable income significantly differ from estimates, there could be an impact on the Group's ability to realize the net deferred taxable assets recognized on the statement of financial position.

Additionally, future changes in tax laws could limit the capacity of the Group to obtain tax deductions in future periods. Any difference between estimates and subsequent real disbursements is recorded in the year when it occurs.

&nbsp;&nbsp;&nbsp;&nbsp;● **Provision for major maintenance and replacement:** The Group has contractual obligations under its concession agreements in Perú to provide for major replacement and maintenance activities that are required under the contracts. Provision amounts are based on qualitative and quantitative analysis performed by the Group´s maintenance area and an estimate of disbursements for major maintenance and replacements that considers the current market prices of the components to be replaced at the time the provision is recognized. The provision amounts are recognized based on the present value of the estimated future cash outflows, based on a risk-free discount rate. (Notes 3.9.1 and 17).

&nbsp;&nbsp;&nbsp;&nbsp;● **Traffic projections for concessions:** the Group´s compensation for the services provided under the concession contracts for certain Chilean concessions accounted for under the financial asset model in IFRC 12 (RUTA DEL MAIPO, RUTA DEL MAULE, RUTA DEL BOSQUE, RUTA DE LA ARAUCANÍA and RUTA DEL LOA) is determined through the estimated Present Value of Revenues (VPI) which is based on traffic studies performed by an independent entity based on GDP projections and other variables according to the concession.

&nbsp;&nbsp;&nbsp;&nbsp;● **Employee benefits**: The present value of defined benefit pension plans and other post-employment medical benefits and long-term benefits is based on actuarial valuations. These valuations include formulating several hypotheses which could differ from future real events, such as the determination of the discount rate, future salary increases, future pension increases, and mortality rates. Due to the complexity of the valuation, its long-term nature, and underlying hypotheses, the calculation of the defined benefit obligation is highly sensitive to changes in these hypotheses. All of them are reviewed on each closing date.

The mortality rate is based on the country's public mortality rates. The future salary and pension increase are based on expected future inflation rates. (See Note 19).

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Summary of significant accounting policies** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Foreign currency transactions and balances** 

The consolidated financial statements are presented in Colombian Pesos, which is the Group's functional currency. For each Group entity, its functional currency is determined based of the main economic environment where it operates.

The statements of profit or loss and cash flows of subsidiaries with functional currencies different from the Group's functional currency are translated at the exchange rates on the dates of the transaction or based on the monthly average exchange rate. Assets and liabilities are translated at the closing rate, and other equity items are translated at exchange rates at the time of the transaction. All resulting exchange differences are recognized in other comprehensive income. On disposal of all or significant part of a foreign operation, the cumulative translation adjustment related to the particular foreign operation is reclassified to profit or loss.

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Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency spot rates at the transactions date. Monetary items denominated in foreign currencies are translated at the functional currency spot rates prevailing at the reporting date. Differences arising on settlement or translation or monetary items are recognized in profit or loss, in financial results, net, except those resulting from cash flow hedges, which are recognized in other comprehensive income within equity. When the hedged item affects the financial results, exchange differences accumulated in equity are reclassified to profit or loss as part of operating results.

Non–monetary items measured at fair value that are denominated in a foreign currency are translated using the exchange rates prevailing on the date when the fair value is determined. The gain or loss arising on translation of non–monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **Classification of balances as current and non-current** 

The Group presents its current and non-current assets and its current and non-current liabilities as separate categories in its statement of financial position.

An asset will be classified as current when:

● the entity expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

● it holds the asset primarily for the purpose of trading;

● it expects to realize the asset within twelve months after the reporting period; or

● the asset is cash or cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

A liability will be classified as current when:

● the entity expects to settle the liability in its normal operating cycle.

● it holds the liability primarily for the purpose of trading;

● the liability is due to be settled within twelve months after the reporting period; or

● the entity does not have unconditional rights to defer settlement of the liability for at least 12 months after the reporting period.

● the conditions of a liability that could cause their settlement, at the other party's choice, through the issuance of equity instruments, do not affect its classification. The company will classify all others as non-current liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **Investments in jointly controlled entities and associates** 

An associate is an entity over which the Group exerts significant influence. Significant influence is the power to influence the investee's financial and operating policy decisions but not to control it, either individually or jointly.

A Joint venture is an agreement whereby the parties exerting joint control have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an agreement, which exists only when decisions about the relevant activities require unanimous consent.

Considerations used to determine the significant influence or joint control are similar to those needed to determine the control over subsidiaries. The Group's investment in its associates and joint ventures is accounted for using the equity method.

Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying value of the investment is adjusted to recognize changes in the participation of the Group in the net assets of the associate or joint venture from the acquisition date. The goodwill related to the associate or joint venture is included in the carrying value of the investment.

The statement of profit or loss reflects the Group's participation in the results of the operations of the associate or joint venture. Any changes in other comprehensive income of these associates are presented as part of other comprehensive income for the Group. Also, when a change has been directly recognized in the equity of the associate or joint venture, the Group recognizes its participation in any changes, from time to time, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associate or joint venture are eliminated proportional to the participation in the associate or joint venture.

The results under the equity method of the participation of the Group in the results of an associate or joint business is recognized in the income statement and represents the result after taxes of the Group's interest in the associate or joint venture.

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&nbsp;&nbsp;&nbsp;&nbsp;**3.4** **Business combinations and goodwill** 

The Group recognizes business combinations using the acquisition method. Identifiable assets acquired and liabilities assumed are initially measured at fair value on the acquisition date, subject to certain exceptions.

On the acquisition date, the acquirer will separately recognize the identifiable assets acquired, the liabilities assumed, any non-controlling interest in the acquiree, and any goodwill or bargain purchase resulting from the acquisition.

The company that acted as buyer will recognize the goodwill generated as an asset on the acquisition date, measured as the difference between (i) the aggregate of the consideration transferred, the amount of any non-controlling interest and in a business combination achieved in stages the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree and (ii) the net amount on the acquisition date of the identifiable assets acquired and the liabilities assumed.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non–controlling interest and any previous interest held over the net identifiable assets acquired and liabilities assumed). After initial recognition goodwill is measured at cost less any accumulated impairment loss, which cannot be reversed in subsequent periods according to IAS 36. Goodwill is not amortized but tested for impairment annually.

The acquirer will identify the acquisition date as the date on which control of the acquiree is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;**3.5** **Inventories** 

Consumable inventories (spares and supplies) are recognized as inventory and then charged to expense, maintenance or project to the extent that such items are consumed.

The cost of other inventories is determined based on the weighted average cost method, which includes acquisition costs (deducting commercial discounts, rebates and other similar items), transformation, and other costs incurred to bring inventory to their current location and condition, such as transportation costs.

&nbsp;&nbsp;&nbsp;&nbsp;**3.6** **Property, plant, and equipment** 

Property, plant, and equipment are valued at their acquisition cost -historical cost- or construction cost, less depreciation and accumulated impairment losses, if any. Cost also includes:

&nbsp;&nbsp;&nbsp;&nbsp;● Import tariffs and non-recoverable indirect taxes imposed on the acquisition, after deducting trade discounts and rebates

&nbsp;&nbsp;&nbsp;&nbsp;● All costs directly related to placing the asset, in the conditions necessary for its operation in the manner intended by the management

&nbsp;&nbsp;&nbsp;&nbsp;● Borrowing costs attributable to the acquisition of a qualifying asset -an asset that requires a substantial period of time for being ready for use or sale, and from which it is expected to obtain future benefits

&nbsp;&nbsp;&nbsp;&nbsp;● The estimate of costs related to dismantling, removal and environmental rehabilitation of areas affected by the construction of the Group's assets

Expenses for maintenance, preservation, and repair of these assets are recorded directly in income as a cost for the period in which they are incurred.

Additions and expansion, upgrading, or improvement costs are capitalized as higher value of the respective assets, if they extend their useful life, production capacity and operational efficiency, and improve the quality of services, or bring a significant reduction of costs.

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Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:

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| | |
|:---|:---|
|  | **Useful life** |
| Transmission lines | 63 years |
| Buildings | 100 years |
| Fiber optics | 25 years |
| Machinery and equipment | 15 years |
| Telecommunications equipment | 15 years |
| Furniture, office equipment, laboratory equipment | 10 years |
| Communications equipment | 10 years |
| Transportation, traction, and lifting equipment | 10 years |
| Supervision and Maneuvers Center Equipment | 6 years |
| Computer equipment and accessories | 5 years |

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An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;● **Assets under construction and assembly** 

Assets used during the course of the construction for management, production, supply, or non-defined purposes are recorded at cost, less any recognized impairment loss. Such construction and assembly assets are classified in the corresponding categories of property, plant, and equipment when they are ready for their intended use, and the depreciation of these assets begins on that day i.e., when they are at the location and in the conditions required for operating as intended.

&nbsp;&nbsp;&nbsp;&nbsp;● **Borrowing costs** 

Borrowing costs related to the acquisition, construction or production of a qualifying asset that requires a substantial period of time to get ready for its intended use are capitalized as part of the cost of such asset when it is probable that future economic benefits associated with the item will flow to the Group and costs can be measured reliably. Other borrowing costs are recognized as finance costs. Projects that have been suspended but that the Group intends to continue to pursue their development in the future, are not considered qualifying assets for the purpose of capitalization of borrowing costs

&nbsp;&nbsp;&nbsp;&nbsp;● **Asset components** 

A fixed asset component is an item that can be seen as part of other asset, but due to its own characteristics, the role it plays, and the type of strategies or activities followed during its technical or service life, it may be classified as a separate asset.

Each property, plant, and equipment component shall be identified and separated from the other assets in order to depreciate them during their useful lives and make their treatment and accounting control easier. Important spare parts and permanent maintenance equipment that the company expects to use for more than one period normally comply with specifications to be classified as property, plant, and equipment. Similarly, if spare parts and assisting equipment of a fixed asset could only be used for such asset, they will be classified as part of the property, plant, and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;**3.7** **Other assets** 

Includes advances to third-party service providers for the purchase of information and telecommunication technology services that are amortized during the periods in which services are received by the Group. Prepaid expenses mainly include insurance premiums, recognized in income on a straight-line basis through the contractual term.

&nbsp;&nbsp;&nbsp;&nbsp;**3.8** **Intangible assets** 

An intangible asset is recognized when the condition of being identifiable and separable is met, when the item generates future economic benefits, and when the Group is able to control such benefits.

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Intangible assets are initially recognized at their acquisition or production cost, and then valued at their cost less their corresponding accumulated amortization and impairment losses experienced by the assets, if any.

An intangible asset is derecognized upon its disposal, or when no future economic benefits are expected. The resulting gain or loss, which is calculated as the difference between the proceeds obtained from the sale and the carrying amount of the asset, is recognized in income when the asset is derecognized.

Residual values, useful lives, and amortization methods are reviewed at each year-end and are applied prospectively, if necessary. Useful lives of intangible assets with definite lives are as follows:

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| | | |
|:---|:---|:---|
|  |  | **2020** |
| Software |  | 3 years |
| Licenses |  | 10 years |
| Concessions |  | 20-40 years |
| Rights-of-use |  | 20-30 years |
| Customer list |  | 10-15 years |

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&nbsp;&nbsp;&nbsp;&nbsp;● **Easements** 

Easements are rights obtained for the use of a strip of land for the installation of a transmission line. This involves restrictions by the owner on land use and authorizations to the Group for construction, operation, and maintenance. These assets have indefinite useful lives and are not amortized.

Such intangible assets are permanent rights and although the transmission lines to which these easements are related do have a useful life of 63 years the rights do not expire and the Group can either replace the transmission lines when their useful lives end, or to use such rights for any other service related to electricity transmission and telecommunications.

&nbsp;&nbsp;&nbsp;&nbsp;●  ***Software* and licenses** 

*Software* is amortized using the straight-line method over a maximum period of three years. Licenses are amortized by the same method during periods in which it is expected to receive benefits, according to studies of feasibility for recovery.

Project studies and research charges are treated as expenses when incurred.

&nbsp;&nbsp;&nbsp;&nbsp;**3.9** **Concessions** 

The Group operates electricity transmission concessions in Colombia, Perú, Chile, Bolívia and Brazil and road concessions in Colombia and Chile under public service concession arrangements where the grantor controls or regulates the services to be provided by the concessionaire, to whom the services are provided and at what price.

Concessions that meet the above criteria and where the Group has an obligation to return the assets to the grantor or the grantor retains any residual interest over the infrastructure at the end of the concession term are accounted for under IFRIC 12 – Service concession arrangements. These include electricity concessions in Perú (except Orazul), Bolívia and Brazil and road concessions in Colombia and Chile; see Note 23.

Group assets that were constructed to operate concessions where the grantor has no residual interest over the infrastructure and the Group has no obligation to return the assets are accounted for under IAS 16. These include electricity concessions in Colombia and the Orazul concession in Perú.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.9.1** **IFRIC 12 – Services concession arrangements** 

**Financial asset model**

The concessions where the Group has a contractual right to receive money or other financial asset from the grantor in exchange for the services provided under the concession agreements are accounted for under the financial asset model. Concession infrastructure under construction is initially recorded as contract assets, in accordance with IFRS 15 and IFRIC 12, considering that the Group is entitled to consideration for performance completed to date, and, only when the construction phase ends, has the right to charge for the services provided.

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For electricity concessions in Brazil, when construction is finalized, concession infrastructure assets remain as contract assets, considering that under the respective concession agreements the obligations linked to the remuneration for the construction services remain during the concession period, represented by the network construction, operation and maintenance. For the other Group concessions under this model the contract asset is reclassified as a financial asset (accounts receivable) when the performance obligations related to construction services are fulfilled, since from that point nothing more than the passage of time is necessary for the consideration to be received. The costs related to the infrastructure construction are recognized as incurred in the statement of income. The construction or upgrade services revenues are recognized in accordance with the stage of completion of the construction service, based on the costs actually incurred, including construction margin.

When adjusting the amount of consideration for the concession contract asset financing component, the Group uses the discount rate which reflects the Group's estimation of the financing of the transmission infrastructure investments. This reflects the rate that discounts the nominal amount of the consideration to the price that the customer would pay in cash for the goods or services when (or as) they transfer to the customer. The interest rates implicit in the contract are defined at the beginning of the concessions and take into account the credit risk of the counterparties.

**Intangible asset model:**

Concessions where the Group does not have a contractual right to receive money or other financial asset from the grantor but has the right to charge users in exchange for the services provided are accounted for under the intangible asset model. The costs incurred by the Group to construct the concession infrastructure are recognized as intangible assets which are amortized using the straight-line over the concession term (see Notes 11 and 23). Operating and maintenance costs related to the concession are recognized in income as incurred after the concession infrastructure is ready for its intended use and the Group receives from the grantor the right to charge a fee for the services. Revenue is recognized based on services delivered and the fee stablished under the concession agreements.

The Group´s concessions in Perú (except Orazul) include a contractual obligation to perform replacements and major maintenance based on conditions established by the grantor which are accounted for as a provision for significant replacements and maintenance (Notes 2.6 and 17).

**3.10** **Impairment of non-financial assets**

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or CGU's fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The recoverable amount of an asset is the higher amount of the fair value less costs of disposal or its value in use. If the recoverable amount of an asset (or of a CGU) is lower than its net carrying amount, such amount (or that of the CGU) is reduced to its recoverable amount, recognizing an impairment loss in profit or loss.

Fair value less costs of disposal is usually higher than the value in use for the asset's in the production segment due to some significant restrictions in the estimation of future cash flows, such as: a) future capital expenses that improve the CGU performance, which could result in expected increase of net cash flows, and b) items before taxes that reflect specific business risks, resulting in a higher discount rate.

Fair value less costs of disposal is determined as the sum of the future discounted cash flows adjusted to the estimated risk. The estimations of expected future cash flows used in the assessment of impairment of the assets include estimates of futures commodity prices, supply and demand estimations, and the margins of the products.

Fair value less costs of disposal, as described above, is compared to valuation multiples and quoted prices of shares in companies comparable to the Group, in order to determine if it is reasonable.

When an impairment loss is recorded, future amortization expenses are calculated on the basis of the adjusted recoverable amount. Impairment losses may be recovered only if the reversal is related to a change in estimations used after impairment loss was recognized in previous periods. These recoveries do not exceed the carrying amount of the assets net of depreciation or amortization that would have been determined if such impairment had not been recognized.

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Goodwill is tested for impairment annually in the last quarter and when circumstances indicate that the carrying value may be impaired.

Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

**3.11** **Leases**

At the beginning of a contract, the Group assesses whether a contract is, or contains, a lease. This situation arises if the contract transfers the right to control the use of an identified asset for a period of time in exchange for a consideration. To assess whether a contract conveys the right to control an identified asset, the regulations of IFRS 16 are used.

<u>The Group as a lessee</u>

On the commencement date of the lease, the Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying asset during the lease term. The interest expense on the lease liability and the depreciation expense on the right-of-use asset are recognized separately.

In subsequent recognition, the Group makes a remeasurement of the lease obligation upon the occurrence of events such as: a) changes in the lease term, b) changes in future lease payments resulting from variations in an index or in the rate used for determine the payments. The amount of the remeasurement of the obligation will be recognized as an adjustment to the asset for the right of use.

<u>The Group as a lessor</u>

Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operational. Rental income is recognized in the statement of income on a straight-line basis over the lease terms; see Note 12.

<u>Right-of-use assets</u>

The Group recognizes right-of-use assets on the commencement date of the lease (that is, the date on which the underlying asset is available for use) as part of its property, plant and equipment balance (see Note 10). The right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are amortized in a straight-line basis during the lease term. Right-of-use assets are subject to impairment assessment. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

<u>Lease liabilities</u>

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of the lease payments to be made during the term of the lease. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. Variable payments that do not depend on an index or rate are recognized as expenses in the period in which an event or condition indicates that the payment will occur.

In order to calculate the present value of the lease payments, the Group uses the incremental borrowing rate on the lease's commencement date. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

<u>Short-term leases and low-value asset leases</u>

The Group elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets).

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**3.12** **Financial assets and liabilities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.12.1** **Financial assets** 

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15.

The Group classifies its financial assets in the following categories:

● **Financial assets measured at fair value through profit or loss** 

Financial assets are held for trading and financial assets designated at the time of the initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired to be sold or repurchased in the short term. They are recognized at their fair value and losses or profits arising at the time of re–measurement are recognized in the statement of profit or loss.

● **Financial assets at amortized cost** 

This category is the most relevant to the Group. The Group's financial assets at amortized cost includes trade receivables, other receivables, loans to associates, and loans to employees.

Loans and receivables are non–derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables, including trade and other receivables, are measured initially at fair value and then at amortized cost using the effective interest rate method, less impairment.

Loans to employees are initially recorded using the present value of the future cash flows, discounted at the current market rate for similar loans. If the interest rate is less than the current market rate, fair value will be less than the amount of the loan. This difference is recorded as a benefit to employees.

The Group measures financial assets at amortized cost if both of the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;● The asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows

&nbsp;&nbsp;&nbsp;&nbsp;● The contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment analysis. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.

<u>De–recognition of financial assets</u>

The Group derecognizes a financial asset only upon the expiration of the contractual rights to the cash flows of the asset or, when it has transferred its rights to receive such cash flows or has assumed the obligation to pay the cash flows received in full without material delay to a third party and (a) it has transferred substantially all the risks and benefits inherent in the ownership of the financial asset or (b) it has neither transferred nor retained substantially all the risks and benefits of the asset, but has transferred control of the asset.

When the Group does neither transfer nor retain substantially all the risks and benefits of the asset or transfer control of the asset, the Group continues to recognize the transferred asset, to the extent of its continuing participation, and it also recognizes the associated liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.12.2** **Financial liabilities** 

Financial liabilities correspond to the financing obtained by the Group through bank credit facilities and bonds, accounts payable to suppliers and creditors.

Bonds and bank credit facilities (this is the category most relevant to the Group) are initially recognized at their fair value, net of directly attributable transactions cost. After initial recognition, interest–bearing credit facilities and bonds are subsequently measured at

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amortized cost, using the effective interest rate (EIR) method. The effective interest method amortization is included as a financial expense in the statement of profit or loss. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss.

Accounts payable to suppliers and creditors are short–term financial liabilities recorded at nominal value, since it does not significantly differ from fair value.

<u>Derecognition</u>

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. When an existing financial liability has been replaced by another from the same lender, under substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de–recognition of the original liability and recognized as a new liability. The difference between the respective carrying amounts is recognized in the statement of profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.12.3** **Derivative financial instruments and hedging operations** 

Financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Changes in the fair value of derivatives are recognized as gains or losses in the statement of profit or loss, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income and later reclassified to profit or loss when the hedge item affects profit or loss.

Changes in fair value of derivative contracts, which do not qualify or are not designated as hedges are recorded in profit or loss.

Derivatives embedded in the host contract are accounted for as separate derivatives at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss.

For purposes of hedge accounting, hedges are classified as:

&nbsp;&nbsp;&nbsp;&nbsp;● Cash flow hedges: hedges of the exposure to variability in cash flows attributable to a particular risk associated with all, or a component of, a recognized asset or liability or a highly probable forecast transaction, and that could affect profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;● Hedges of net investments in foreign operations.

&nbsp;&nbsp;&nbsp;&nbsp;● Fair value hedges: hedges of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or a component of any such item, that is attributable to a particular risk and that could affect profit or loss.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine whether they have been highly effective throughout the financial reporting periods for which they were designated.

&nbsp;&nbsp;&nbsp;&nbsp;● **Fair value hedge** 

The gain or loss on the hedging instrument is recognized in profit or loss, or in other comprehensive income if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income.

The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts remain in other comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;● **Cash flow hedges** 

The effective portion of the gain or loss on the hedging instrument is recognized in Other Comprehensive Income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss.

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The amounts previously accumulated in OCI are recognized in profit or loss when the hedged transaction affects the statement of profit or loss. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability.

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked or when the hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in other comprehensive income remains separately in equity until the forecast transaction occurs is recognized in the consolidated statement of profit or loss. When it is no longer expected that the initially hedged transaction will occur.

&nbsp;&nbsp;&nbsp;&nbsp;● **Hedges of a net investment in a foreign operation** 

Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net investment, are accounted for in a way similar to cash flow hedges.

Gains or losses on the hedging instrument relating to the effective portion of the he\|dge are recognized as OCI while any gains or losses relating to the ineffective portion are recognized in the statement of profit or loss. On the disposal of a foreign operation, the cumulative value of any such gains or losses recorded in equity is transferred to the statement of profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.12.4** **Offsetting assets and financial liabilities** 

Financial assets and liabilities are offset are reported net in the financial statements if, and only if, there is a legally enforceable right at the closing date, requiring receiving or pay the amounts recognized at their net value, and when there is an intention to offset on a net basis to realize assets and settle liabilities simultaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.13** **Fair value measurement** 

The fair value of an asset or liability is defined as the price that would be received when selling an asset or the price that would be paid when transferring a liability in an orderly transaction between market participants on the measurement date.

Fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the primary market, i.e., the market with higher volume and level of activity for the asset or liability. In the absence of a primary market, it is assumed that the transaction takes place in the most advantageous market the company has access to, that is, the market that maximizes the amount to be received when selling the asset or the market that minimizes the amount that would be paid to transfer the liability.

To determine the fair value, the Group uses valuation techniques that are appropriate to the circumstances and on which there are sufficient data for measuring, maximizing the use of relevant observable input data and minimizing the use of unobservable input data.

Taking into account the hierarchy of input data used in valuation techniques, assets and liabilities measured at fair value are classified at the following levels:

&nbsp;&nbsp;&nbsp;&nbsp;● Level I: quoting prices (unadjusted) in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;● Level II: valuation techniques for which the data and variables that have a significant effect on the determination of the fair value recorded are observable, either directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;● Level III: internal valuation techniques, using company estimated variables not observable for the asset or liability (there is no market information observable).

When measuring fair value, the company considers the characteristics of the asset or liability, in particular:

&nbsp;&nbsp;&nbsp;&nbsp;● For non-financial assets, an estimation of the fair value considers the capacity of a market participant to generate economic benefits by making the highest and best use of the asset, or by selling it to other market participant that would make the highest and best use of the same.

&nbsp;&nbsp;&nbsp;&nbsp;● For liabilities and own equity instruments, the fair value entails that the liability will not be settled, and the equity instrument will not be canceled, nor otherwise will be extinguished on the measurement date. The fair value of the liability reflects the effect of the default risk, i.e., the risk that a company does not meet an obligation, which includes but is not limited to the company's own credit risk.

&nbsp;&nbsp;&nbsp;&nbsp;● In the case of financial assets and liabilities with offset positions at market risk or counterpart credit risk, the fair value is measured on a net basis that is consistent with the way market participants would price the net exposure to risk on the measurement date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.14** **Provisions** 

Provisions are recognized when the Group has a present obligation -legal or implicit- as the result of a past event; it is probable that a resource outflow is needed to settle such obligation, and a reliable estimate regarding the amount of the obligation can be made.

The amount recognized as provision should be the best estimate of the disbursement required to settle the present obligation at the end of the period that is reported, considering the corresponding risks and uncertainties. When a provision is measured using the cash flows estimated to settle said obligation, its carrying amount reflects the present value of that cash flow (when the effect of the value of money over time is material).

Certain contingent conditions may exist on the date of issuance of the statement of financial position. These may result in a loss for the companies and will only be resolved in the future, when one or more events occur or may occur; such contingencies are estimated by the management and its legal advisors. The estimation of loss contingencies necessarily involves an exercise of judgement and it is a matter of opinion.

If the estimation of the contingency indicates that it is probable that a material loss will occur and the amount of the liability can be estimated, then it is recorded in the statement of financial position. In addition, if the estimation indicates that a potential loss is not probable and its amount is known, or is probable but the amount of the loss cannot be estimated, then the nature of the contingency is disclosed in a note to the statement of financial position, with an estimate of the potential range of loss. Loss contingencies estimated as remote are not disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.15** **Income tax** 

Income tax expense for the period comprises current and deferred income tax. Tax assets and liabilities are measured at the amounts expected to be recovered from or paid to tax authorities and the income tax expense is recognized in income, except when it is related to items recognized directly in equity, in which case it is recognized in equity.

The tax rates and tax laws used to compute the tax amounts are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and

generates taxable income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.15.1** **Current tax** 

The current tax payable is based on taxable income generated in the year. Taxable income differ from profit before taxes in the income statement due to permanent differences related to income or expense items that are taxable or deductible, and due to temporary differences related to income or expense items that are taxable or deductible in future years. The current tax liability is calculated by using tax rates in force at the end of the period.

The Group periodically evaluates positions taken in tax returns with respect to situations in which tax laws are subject to interpretation and, when appropriate, recognize provisions for the amounts they expect to pay to tax authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.15.2** **Deferred tax** 

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities included in the statement of financial position and the corresponding tax bases used for determining taxable income. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset the assets and liabilities by current tax and are related to income taxes applied by the same tax authority on the same taxable company.

Deferred tax assets are recognized for all the deductible temporary differences, including tax losses, to the extent it is more likely than not that there is expected future taxable income against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be recovered.

The carrying amount of deferred tax assets is reviewed on each closing date and reduced to the extent that it is no longer likely that there will be sufficient taxable income available to allow the use of all or part of the deferred tax asset. The deferred tax related to items recorded directly in equity is recognized in equity.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation

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authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.16** **Employee benefits** 

Employee benefits include all compensations to employees and former employees related to the provision of services to the entity. These are salaries, short-term and long-term benefits, termination benefits and post-employment benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.16.1** **Current benefits** 

Obligations regarding current employee benefits are recognized as expenses as the related service is provided. Employment obligations are adjusted at the end of each period, based on legal provisions and labor agreements in force.

This benefit is recognized when there is a current legal or implicit obligation to make a payment as a result of a service provided by the employee in the past and at the time the obligation can be estimated reliably. The obligation is recognized by the amount expected to be paid within the next year after the cut-off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.16.2** **Long term employee benefits** 

Some Group companies grant their employees benefits associated with their time of service, such as quinquennium (seniority premium and five-year period payments).

The fair value of the plan assets is deducted from the present value of the benefit obligation when determining the deficit or surplus. The calculation is performed annually supported by certified independent actuaries, based on the projected credit unit method. Any actuarial gain or loss is recognized in income for the corresponding period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.16.3** **Post-employment benefits** 

&nbsp;&nbsp;&nbsp;&nbsp;● **Defined contribution plans** 

The defined contribution plan is a post-employment benefit by which the Group pays fixed contributions to a pension fund, and by which it has no legal obligation to pay additional amounts. The obligations for payment of contributions to defined benefit pension plans are recognized as employment benefit expense in income for the periods in which employees provide the services.

&nbsp;&nbsp;&nbsp;&nbsp;● **Defined benefit plans** 

In the case of defined benefit plans, the obligation and the cost of such benefits is determined by using the projected unit credit method, based on independent actuarial calculations performed on an annual basis.

The liability recognized in the statement of financial position regarding defined benefit pension plans is the present value of the defined benefit obligation on the date of the statement of financial position, less the fair value of the plan assets. The present value of the defined benefit obligation is determined by discounting the estimated cash outflow.

Actuarial gains and losses arising from adjustments based on experience and changes in actuarial assumptions are charged or credited in other comprehensive income for the period in which they arise.

Past service costs are recognized immediately in income, unless changes in the pension plan are conditioned to the fact that the employee continues providing services for a specific period -the period granting the right-. In this case, the past service costs are amortized by the straight-line method during the period that grants the right.

&nbsp;&nbsp;&nbsp;&nbsp;● **Other post-employment obligations** 

Some Group companies grant their retired employees benefits such as complementary health plan, health assistance, education assistance and calamity loan, after the employment relation. The right to access these benefits depends on the conditions defined in individual and collective agreements.

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The obligation and the cost of such defined benefit plans are determined by the projected unit credit methodology on an annual basis. Actuarial gains and losses arising from changes in actuarial assumptions are charged or credited in the statement of comprehensive income for the period in which they arise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.16.4** **Termination benefits** 

These benefits are determined by using the Projected Unit Credit method, with actuarial valuations conducted at the end of each annual period being reported. The new measurement, which includes actuarial gains and losses, is immediately reflected in the statement of financial position, charged or credited to other comprehensive income for the period in which it is incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.17** **Onerous contracts** 

Present obligations arising from an onerous contract are recognized as a provision when the unavoidable costs of meeting the obligations of the contract exceed the economic benefits expected to be received from it. On the date of the statements of financial position, the Group has no provisions for onerous contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.18** **Recognition of revenues, costs, and expenses** 

Revenues, costs and expenses are recorded on an accrual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.18.1** **Revenues from contracts with customers** 

The Group recognizes revenues from ordinary activities for the transfer of goods or services to customers in exchange for an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services.

Revenues are recognized only when all the following criteria are met:

Step 1: Identify the contract with the customer.

Step 2: Identify the performance obligations in the contract.

Step 3: Determine the price of the transaction.

Step 4: Allocate the price of the transaction to the performance obligations in the contract.

Step 5: Recognize ordinary revenues when (or as) the entity satisfies a performance obligation.

The following criteria apply for the recognition of revenues:

&nbsp;&nbsp;&nbsp;&nbsp;● **Revenues from contracts with customers for electricity transmission and other associated services** 

Revenues from electricity transmission services are recorded when performance obligations are met based on the underlying conditions in the contracts which includes the requirements established by the electricity market regulators in the countries in which the Group operates. This is generally achieved when the performance obligations agreed with the regulatory entities are met, considering the execution period and service quality standards established under the contracts.

&nbsp;&nbsp;&nbsp;&nbsp;● **Revenues from concession arrangements** 

Concession revenues accounted for under IFIRC 12, applicable to electricity transmission companies in Brazil, Bolivia, Peru, and road concession companies in Colombia and Chile are measured at the fair value of the consideration received or receivable, taking into account the payment conditions defined in the contracts. The following specific criteria must be met to recognize revenues in accordance with the application of IFRIC 12:

&nbsp;&nbsp;&nbsp;&nbsp;● **Construction services.** Revenues and costs from project construction services are recognized in the comprehensive income statement, according to the completion percentage method for those projects on the date of statement of financial position which includes an estimated profit margin determined based on macroeconomic characteristics and conditions of the project and the flows estimated from cash collections in relation with cash flows estimated for the construction of infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;● **Operation and maintenance services.** Revenues from operation and maintenance services to third-parties are recognized as the service is delivered based on the performance obligations established in the contracts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;● **Financial returns of concessions recorded as financial asset or contract asset.** The companies that recognized their concessions as financial asset or contract asset according to IFRIC 12, recognize interests of the account receivable credited to income, by using the effective interest rate method.

&nbsp;&nbsp;&nbsp;&nbsp;● **Dividend income** 

Dividends are recognized once shareholders' rights to receive the payment have been established –provided that the economic benefits will flow to the company and ordinary revenues can be measured reliably. Dividends are accrued when approved by the companies over which the Group has no control, joint control, or significant influence.

&nbsp;&nbsp;&nbsp;&nbsp;● **Interest income** 

Interest income is recognized when it is probable that the Group will receive economic benefits associated with the transaction. Interest income is recognized on an accrual basis, by reference to the outstanding principal and the effective interest rate applicable, which is the discount rate that exactly matches the cash flow receivable or payable estimated throughout the expected life of the financial instrument to the net carrying amount of the financial asset on initial recognition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.19** **Basic and diluted earnings per share** 

Earnings per share is calculated by dividing the income attributable to the controlling shareholders of ISA, by the weighted average of common shares outstanding in the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.20** **Distribution of dividends** 

Dividends to shareholders are recognized as a liability in the financial statements of Group companies ISA in the period in which the Shareholders' Meeting approves such dividends, or when the corresponding obligation is in place according to the applicable legal provisions or policies established by the Shareholders' Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.21** **Capital stock** 

Common shares are classified in equity. Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction from the amount received, net of taxes.

The repurchase of ISA´s shares is recognized directly in equity at their acquisition cost and the difference between this amount and the nominal value of the shares is recognized as additional paid-in capital. Rights are suspended for own shares reacquired and, therefore, they do not take part in the distribution of dividends.

ISA is listed in the Colombia Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.22** **Additional paid-in capital** 

Corresponds to the difference between the amounts paid for the shares issued and their nominal value, and the difference between the issuance value of the shares and their re-acquisition costs for shares repurchased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.23** **Related parties** 

Related parties are considered those in which one party has the ability to control, or has joint control of the other, or exercises significant influence over the other party in making financial or operational decisions or is a member of key management personnel (or close relative of a member). The Group considers related parties to be associates, joint ventures, key management executives and key management personnel of the Group´s controlling shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.24** **Information by business segment** 

The Group presents the information related to its business segments in its consolidated financial statements in accordance with paragraph 4 of IFRS 8 – Operation segments.

The operations of the Group are performed through three business segments: 1) Electric power, 2) Road concessions and 3) Telecommunications and information technology. Segments are determined based on management objectives and corporate strategic plans, considering that these businesses: (a) are engaged in different commercial activities, which generate sales revenue and incur costs

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and expenses; (b) the operational results are revised regularly by the Group's Governance that makes operational decisions to allocate resources to the various segments and assess their performance; and (c) there is differentiated financial information available. Internal transfers represent sales to inter–company segments and are recorded and presented at market prices.

See information by segments in Note 30.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.25** **Other liabilities and deferred revenue** 

Other liabilities are recognized at the amounts payable according to the underlying commitments, including the effect of amortized cost when payment obligations are fulfilled in the long-term. Deferred revenue is recognized based on the amounts received, reflecting the obligation assumed to deliver services in the future, and is recognized as revenues in the statement of comprehensive income as the performance obligations are met.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Cash and cash equivalents** 

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| | |
|:---|:---|
|  | **2020** |
| Cash and banks | 918038 |
| **Total cash** | **918038** |
| Fixed income investments <sup>(1)</sup> | 2433644 |
| Marketable securities <sup>(2)</sup> | 430031 |
| **Total cash equivalents** | **2863675** |
| **Total cash and cash equivalents** | **3781713** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes term deposits with a maturity of less than 90 days from the investment date.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes highly liquid marketable securities that are readily convertible to cash.

There are no restrictions on cash and cash equivalent balances.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Trade receivables, Other financial assets and Loans receivable from related parties** 

&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Trade receivables and Loans receivable from related parties** 

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| | |
|:---|:---|
|  | **2020** |
| Clients and concessions (Note 23) | 21066796 |
| Accounts receivable from the State of São Paulo <sup>(1)</sup> | 1516050 |
| Other receivables | 669433 |
| VAT receivable (MOP) <sup>(2)</sup> | 51175 |
| Loans to employees <sup>(3)</sup> | 46588 |
| Loans to related parties | 17365 |
| Dividends receivable | 9468 |
|  | **23376875** |
| Less – impairment | (429325) |
| **Total** | **22947550** |
| Current | 4084421 |
| Non-current | 18863129 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Accounts receivable of ISA CTEEP from the State of São Paulo for labor benefits regulated by Law 4819 of 1958. As of December 31, 2020, this accounts receivable amounts to COP 1,516,050 and impairment amounts to COP 340,994 for a net balance of COP 1,175,056.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Account receivable with the Ministry of Public Works of Chile (MOP), corresponding to VAT paid by concessionaire companies to providers of operation and maintenance services, as well as construction services charged to MOP. Concessionaires are entitled to recover such tax by invoicing MOP through the construction and/or exploitation services.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Loans to employees mainly comprise loans granted for acquisition of housing, vehicles, and education.

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The movement of expected credit loss provision is as follows:

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| | |
|:---|:---|
|  | **2020** |
| Initial balance | (504597) |
| Provisions of year charged to profit or loss | (9852) |
| Portfolio write-off | 2602 |
| Recovery of provisions | 5652 |
| Exchange rate effect | 76870 |
| **Final balance** | **(429325)** |

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There are no restrictions over accounts receivable in any significant amount. The Group does not have individual clients representing 10% or more of its revenues for the year ended December 31, 2020.

As of December 31, 2020, the current and overdue portions of accounts receivable is as follows:

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| | |
|:---|:---|
|  | **2020** |
| Current | 19468599 |
| **Overdue** |  |
| Overdue between 1 and 90 days | 134771 |
| Overdue between 91 and 180 days | 45298 |
| Overdue between 181 and 360 days | 84163 |
| Overdue between 1 and 3 years | 211353 |
| Overdue between 3 and 5 years | 236581 |
| Overdue above 5 years | 886031 |
| **Total overdue** | **1598197** |
| **Total accounts receivable from clients and concessions** | **21066796** |

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ISA and its companies charge interest on overdue accounts to its customers at the maximum rate authorized by law in each country.

&nbsp;&nbsp;&nbsp;&nbsp;**5.2** **Other financial assets** 

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| | |
|:---|:---|
|  | **2020** |
| Rights on trusts and mutual funds | 644999 |
| Time deposits over 90 days | 441664 |
| Derivatives <sup>(1)</sup> | 148 |
|  | **1086811** |
| Current | 1086663 |
| Non-current | 148 |
| **Total other financial assets** | **1086811** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) It includes USD/BRL exchange rate *forward* transactions to mitigate the foreign exchange risk from obligations undertaken in dollars.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Other assets** 

Balances as of December 31, 2020, comprise the following:

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| | |
|:---|:---|
|  | **2020** |
| Prepaid expenses <sup>(1)</sup> | 107160 |
| Advances for the purchase of goods and services <sup>(2)</sup> | 292264 |
| Judicial deposits <sup>(3)</sup> | 32362 |
| Other <sup>(4)</sup> | 91185 |
|  | **522971** |
| Current | 394877 |
| Non-current | 128094 |
| **Total non-financial assets** | **522971** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Prepaid expenses related to insurance, fees, travel expenses, among others.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Advances granted to suppliers to purchase supplies and equipment to be used in company projects.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Mainly includes legal deposits related to labor, tax, and regulatory contingencies.

&nbsp;&nbsp;&nbsp;&nbsp;(4) As of December 31, 2020, mainly includes right´s received from the government that the Group can use to compensate future taxes payable. Such rights were received as payment resulting from an expropriation of a plot of land that will be used in a urban development project, and the gain resulting from the difference between the cost reflected in the Group´s accounting records and the rights received was recognized in Other operating income (expenses).

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Restricted cash** 

Restricted cash mainly includes: ISA INTERCHILE for COP 177,835 from syndicated loans held by the company, which are used mainly for property, plant and equipment, and VAT payments; INTERLIGAÇÃO ELÉTRICA NORTE E NORDESTE for COP 11,383 for the guarantee granted to Banco del Nordeste, and ISA for COP 8,529, associated with the trusts created for the execution of FAER, FAZNI projects and management and payment trusts created for Unidad de Planeación Minero Energética (UPME) projects.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Inventories** 

Inventories balance comprise the following:

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| | |
|:---|:---|
|  | **2020** |
| Materials for provision of services <sup>(1)</sup> | 166911 |
| Inventory in transit | 1246 |
|  | **168157** |
| Provision <sup>(2)</sup> | (2991) |
| **Total inventories** | **165166** |
| Current | 100645 |
| Non-current | 64521 |
| **Total inventories** | **165166** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Inventories for delivering electricity services and project construction services to ensure continuity and allow compliance with system availability indicators.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The recognized provision for inventories is the result from the inventory impairment evaluation conducted by the companies. The following is the movement of the provision for inventories:

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| | |
|:---|:---|
|  | **2020** |
| Initial balance | (2811) |
| Increase | (385) |
| Inventories write-off | 190 |
| Business combination | (73) |
| Exchange rate effect | 88 |
| **Final balance** | **(2991)** |

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As of December 31, 2020, there are no pledges on inventories.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Investments in associates and joint ventures** 

The composition of investments in joint ventures and associates, as of December 31, 2020 are detailed below:

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| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Investments with joint control** | <br>**Main activity** | **Place and**<br>**creation of**<br>**transactions** | <br>**Ownership**<br>**(%)** | **2020** |
| INTERLIGAÇÃO ELÉTRICA DO MADEIRA <sup>(1)</sup> | Electricity | Brazil | 51.00 | 1089928 |
|  | Transmission |  |  |  |
| INTERLIGAÇÃO ELÉTRICA GARANHUNS<sup>(1)</sup> | Electricity | Brazil | 51.00 | 249515 |
|  | Transmission |  |  |  |
| INTERLIGAÇÃO ELÉTRICA PARAGUAÇU | Electricity | Brazil | 50.00 | 253652 |
|  | Transmission |  |  |  |
| INTERLIGAÇÃO ELÉTRICA AIMORÉS | Electricity | Brazil | 50.00 | 168019 |
|  | Transmission |  |  |  |
| INTERLIGAÇÃO ELÉTRICA IVAÍ | Electricity | Brazil | 50.00 | 126636 |
|  | Transmission |  |  |  |
| TRANSMISSORA ALIANÇA DE ENERGIA ELÉTRICA | Electricity | Brazil | 14.88 | 783833 |
|  | Transmission |  |  |  |
| INTERCONEXIÓN ELÉCTRICA COLOMBIA PANAMÁ – PANAMÁ | Electricity | Panama | 50.00 | 1140 |
|  | Transmission |  |  |  |
| INTERCONEXIÓN ELÉCTRICA COLOMBIA PANAMÁ – COLOMBIA | Electricity | Colombia | 1.17 | 3 |
|  | Transmission |  |  |  |
| TRANSNEXA <sup>(2)</sup> | Telecommunications | Ecuador | 50.00 |  |
|  | Transmission |  |  |  |
| DERIVEX | Derivative financial | Colombia | 40.35 | 581 |
|  | instruments |  |  |  |
| PARQUES DEL RÍO | Road concessions | Colombia | 33.00 | 55 |
| **Total investments with joint control** |  |  |  | **2673362** |
| **Investments in associates** |  |  |  |  |
| ATP TOWER HOLDINGS | Telecommunications | United States | 24.69 | 451164 |
|  | Transmission |  |  |  |
| **Total investments in associates** |  |  |  | **451164** |
| **Total investments in associates and joint ventures** |  |  |  | **3124526** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Investment held under Joint Venture agreements by CTEEP

&nbsp;&nbsp;&nbsp;&nbsp;(2) TRANSNEXA is currently undergoing a liquidation process; the investment is 100% impaired.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Financial information on investments in associates and joint ventures** 

The summarized financial information on the Group's investments in associates and material joint ventures as of and for the year ended December 31, 2020, is presented below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Statement of financial position** | **Current**<br>**assets** | **Non-current**<br>**assets** | **Current**<br>**liabilities** | **Non-current**<br>**liabilities** | **Cash and cash**<br>**equivalents** |
| **December 31, 2020** |  |  |  |  |  |
| Transmissora Aliança de Energia Elétrica | 1262053 | 7026001 | 408655 | 4022859 | 439203 |
| Interligação Elétrica do Madeira | 562720 | 3831078 | 254024 | 2004885 | 241292 |
| Interligação Elétrica Paraguaçu | 9553 | 680137 | 13778 | 169111 | 9337 |
| Interligação Elétrica Garanhuns | 74784 | 682136 | 36100 | 222498 | 9640 |
| Interligação Elétrica Aimorés | 10785 | 443117 | 10597 | 107676 | 10573 |
| Interligação Elétrica Ivaí | 689885 | 1053577 | 139562 | 1351004 | 686641 |
| ATP Tower Holding | 242890 | 3122824 | 184567 | 1354210 | 151496 |
| **Total significant entities** | **2852670** | **16838870** | **1047283** | **9232243** | **1548182** |
| Other | 11203 | 10256 | 2353 |  | 10459 |
| **Total** | **2863873** | **16849126** | **1049636** | **9232243** | **1558641** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Comprehensive income statement** | <br>**Revenues** | <br>**Comprehensive**<br>**income / (loss)** | **Depreciation**<br>**and**<br>**amortization**<br>**expenses** | <br>**Interest**<br>**expense** | <br>**Tax expense**<br>**(benefit)** |
| **Year ended December 31, 2020** |  |  |  |  |  |
| Transmissora Aliança de Energia Elétrica | 32042 | 1566410 | (15714) | (177499) | (198479) |
| Interligação Elétrica do Madeira | 498100 | 116884 | (3835) | (196986) | 8 |
| Interligação Elétrica Paraguaçu | 367051 | 218863 | (82) |  | (59101) |
| Interligação Elétrica Garanhuns | 93210 | 24170 | (17709) | (73) | (9696) |
| Interligação Elétrica Aimorés | 262421 | 137260 | (65) |  | (40132) |
| Interligação Elétrica Ivaí | 937147 | 176019 | (70) | (113229) | (71867) |
| ATP Tower Holding | 263213 | (110686) | (183533) | (89327) | (4671) |
| **Total significant entities** | **2453184** | **2128920** | **(221008)** | **(577114)** | **(383938)** |
| Other | 98 | 8789 | (17) | (141) | (891) |
| **Total** | **2453282** | **2137709** | **(221025)** | **(577255)** | **(384829)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Property, plant, and equipment** 

The following is the balance of property, plant, and equipment:

---

| | |
|:---|:---|
|  | **2020** |
| Grids, lines, and cables | 12913087 |
| Plants and ducts | 6723088 |
| Buildings | 609701 |
| Lands | 255010 |
| Machinery and equipment | 593592 |
| Communication and computing equipment | 208523 |
| Transportation, traction, and lifting equipment | 68104 |
| Furniture, chattels, and office equipment | 50586 |
| **Subtotal property, plant, and equipment** | **21421691** |
| &nbsp;&nbsp;Less – accumulated depreciation | (11548867) |
| &nbsp;&nbsp;Less – impairment | (20) |
| **Total property, plant and equipment in operation** | **9872804** |
| Work in progress | 2306376 |
| **Total property, plant, and equipment** | **12179180** |
| Total property, plant, and equipment | 11954611 |
| Total finance lease assets | 224569 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **Movement of property, plant, and equipment** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Balances as**<br>**of December**<br>**2019** | <br>**Additions** | **Business**<br>**combinations**<br>**(1)** | <br>**Transfers** | <br>**Sales and** <br>**derecognitions** | <br>**Depreciation** | <br>**Exchange**<br>**difference** | **Balances as** <br>**of December**<br>**2020** |
| Grids, lines, and cables | 5362508 | 140394 | 77930 |  | (5808) | (188392) | 110459 | 5497091 |
| Plants and ducts | 2840664 | 595797 |  | 50763 | (7345) | (155907) | 30119 | 3354091 |
| Buildings | 468485 | 40961 | 5898 |  | (885) | (30396) | (8883) | 475180 |
| Lands | 250630 | 4217 | 148 |  |  |  | 15 | 255010 |
| Machinery and equipment | 178937 | 24288 | 1734 |  | (1411) | (36865) | (8519) | 158164 |
| Communication and computing equipment | 79071 | 41590 | 2528 |  | (986) | (31526) | (192) | 90485 |
| Transportation, traction, and lifting equipment | 22817 | 8494 | 3700 |  | (334) | (11337) | (1043) | 22297 |
| Furniture, chattels, and office equipment | 18818 | 6188 | 138 |  | (58) | (3740) | (860) | 20486 |
| Work in progress <sup>(2)</sup> | 2093839 | 259553 | 136 | (50763) |  |  | 3611 | 2306376 |
| **Total** | **11315769** | **1121482** | **92212** | **—** | **(16827)** | **(458163)** | **124707** | **12179180** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) It mainly relates to the acquisition of Orazul, see Note 2.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The balance of work in progress mainly includes:

&nbsp;&nbsp;&nbsp;&nbsp;● In ISA INTERCHILE COP 194,646 related to expansion works in Nueva Maitencillo and Nueva Pan de Azúcar, 220 kV substations.

&nbsp;&nbsp;&nbsp;&nbsp;● In ISA:

- UPME 03-2014 230/500kV Northwestern Interconnection Project for COP 1,003,265.

- Costa Caribe 500 kV Interconnection project for COP 428,582.

- UPME 09-2016 Copey – Cuestecitas 500 kV and Copey – Fundación 220 kV for COP 257,219.

The Group currently holds insurance policies for combined material damages, terrorism, and consequential losses, intended to ensure the loss and damage of its fixed assets, except transmission lines and towers.

As of December 31, 2020, there are no operating and/or economic factors that could indicate that the net book value of property, plant, and equipment cannot be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Intangibles** 

---

| | |
|:---|:---|
|  | **2020** |
| Software | 193640 |
| Licenses | 79555 |
| Easements <sup>(1)</sup> | 538707 |
| Concessions <sup>(2)</sup> | 9141009 |
| Rights-of-use <sup>(3)</sup> | 1235054 |
| Customer list | 46088 |
| Goodwill and brands <sup>(4)</sup> | 1097921 |
| **Subtotal intangibles** | **12331974** |
| Less – intangible amortization | (4054628) |
| **Total intangibles** | **8277346** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Easements correspond to rights acquired by the Group in order to implement its operating assets, mainly the transmission lines. These assets are acquired in perpetuity and the right remains over time.

&nbsp;&nbsp;&nbsp;&nbsp;(2) It corresponds mainly to concessions in Peru, Bolivia, and Colombia, which are treated as intangible assets according to their characteristics. See Notes 3.9 and 23.

------

---

| | |
|:---|:---|
|  | **2020** |
| Concessions | 9141009 |
| Less – intangible amortization | (2740928) |
| **Total concessions** | **6400081** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(3) It mainly includes the rights to use infrastructure and intangible assets recognized through business combinations in Brazil and Peru.

&nbsp;&nbsp;&nbsp;&nbsp;(4) It mainly includes goodwill recognized in ISA CTEEP for COP 476,010, ISA PERÚ for COP 46,153, ISA for COP 243,256 and ISA CAPITAL DO BRASIL for COP 297,471.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1** **Intangible assets movement** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Balance as** <br>**of December**<br>**2019** | <br>**Additions** | **Business**<br>**combinations**<br>**(2)** | <br>**Derecognition** | <br>**Amortizations** | **&nbsp;&nbsp;&nbsp;&nbsp;**<br>**Exchange**<br>**rate effect** | **Balance as** <br>**of December**<br>**2020** |
| Software | 95271 | 46546 |  | (21530) | (15863) | (141) | 104283 |
| Licenses | 14207 | 11402 |  | (35) | (6485) | (801) | 18288 |
| Easements | 520189 | 1906 |  |  |  | 16612 | 538707 |
| Concessions and rights-of-use<sup>(1)</sup> | 6170898 | 838094 | 556823 | (1987) | (339480) | 105167 | 7329515 |
| Customer list | 26790 | 34 |  |  | (3572) | (4983) | 18269 |
| Goodwill and brands | 229049 |  | 46153 |  | (4773) | (2145) | 268284 |
| **Total** | **7056404** | **897982** | **602976** | **(23552)** | **(370173)** | **113709** | **8277346** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Acquisitions, mainly in CONSORCIO TRANSMANTARO, for COP 594,960, associated to the investment in YANA and COYA projects.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Goodwill and rights-of-use recognized in the purchase of grupo Orazul, see note 2.1.1.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Leases** 

**12.1 The Group as lessee**

Lease agreements are related to properties, grids and lines, lands, vehicles, substations components, and computer and communication equipment used in the Group´s operations.

Property and land leases have average lease terms between 6 and 10 years; substation components have 8-year terms; grids and lines have 4-year terms; vehicles have 5-year terms, and computer equipment have a 3-year term.

In general, the Group's contracts are adjusted for inflation.

Below are the carrying amounts and movements of lease liabilities:

---

| | |
|:---|:---|
|  | **2020** |
| **Initial balance** | **226284** |
| Additions | 86234 |
| Business combinations | 1440 |
| Disposals | (20424) |
| Accrued interest | 14131 |
| Exchange difference | (9422) |
| Lease payments | (71040) |
| **Final balance (See note 14)** | **227203** |

---

------

Maturities of lease liabilities are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Less than one year | 56207 |
| Between one and five years | 98378 |
| More than five years | 72618 |
| **Total** | **227203** |

---

The amounts recognized in the income statement are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Revenues from sublease of leased assets |  |
| Depreciation expense of leased assets | (61929) |
| Interest expense on lease liabilities | (14131) |
| Lease fees of operating leases recognized as an expense |  |
| Short-term lease expenses | (10374) |
| Lease expenses of low-value assets | (2642) |
| **Total net amount recognized in the consolidated income statement** | **(89076)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2** **The Group as lessor** 

**Operating leases**

The Group has operating leases of electricity infrastructure, dark fiber, buildings, machinery, telecommunication equipment and land. These leases have remaining terms between 1 and 12 years. Usually, lease payments are updated according to the market indexes.

Assets under operating leases are insured and have no repurchase agreements or residual value guarantees.

Lease revenues recognized in the year amount to COP 12,361.

Future minimum receivables from operating leases are:

---

| | | |
|:---|:---|:---|
|  |  | **2020** |
| Less than one year |  | 13,076 |
| Between one and five years |  | 49,688 |
| More than five years |  | 34,002 |

---

**Finance leases**

The Group has finance lease agreements of electricity infrastructure with an average term of 12 years. Usually, lease payments are updated according to the market indexes.

Assets under finance leases are insured and have no repurchase agreements or residual value guarantees.

Net lease receivables and movements are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| **Initial balance** | **348775** |
| Additions | 113142 |
| Interest | 45437 |
| Exchange difference | 9541 |
| Payments received from lessees | (48544) |
| **Final balance** | **468351** |

---

Lease receivables are recognized as other accounts receivable, see Note 5.1.

------

The minimum future collections from finance leases and the current value of minimum lease payments are as follows:

---

| | | |
|:---|:---|:---|
|  | **2020** | **2020** |
|  | <br>**Minimum**<br>**payments** | **Current**<br>**value of**<br>**payments** |
| Less than one year | 48247 | 8114 |
| Between one and five years | 145771 | 30733 |
| More than five years | 641337 | 429504 |
| **Total minimum lease payments** | **835355** | **468351** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Financial liabilities** 

---

| | |
|:---|:---|
|  | **2020** |
| Bonds <sup>(13.1)</sup> | 14194433 |
| Loans <sup>(13.2)</sup> | 8274402 |
|  | **22468835** |
| Current | 1266015 |
| Non-current | 21202820 |
| **Total financial** liabilities | **22468835** |

---

During the year, the companies of the Group have complied with the payment of principal and interest on their liabilities.

The Group is subject to covenants related to the compliance with financial ratios derived from contracts with financial entities. The main financial rations the Group is subject to are as follows:

Net debt/EBITDA ratio

Net debt/Net debt + Net equity ratio

EBITDA/Net financial results ratio

Debt Service Coverage ratio

Debt/Equity ratio

EBITDA/Financial expenses ratio

As of December 31, 2020, the Group is in compliance with all financial and non-financial covenants.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**13.1**Bonds

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **2020** | **2020** |
| <br>**Country** | <br>**Original**<br>**currency** | <br>**Date of**<br>**issuance** | <br>**Maturity date** | <br>**Interest rate** | **Nominal**<br>**value** | **Amortized cost**<br>**value** |
| COLOMBIA | COP and USD | October 2011 to August 2020 | October 2021 to November 2047 | Variable: CPI + 2.84% to 5.38% Fixed: 3.67% to 6.99% | 4528091 | 4403542 |
| PERU | PEN and USD | January 2011 to April 2019 | July 2021 to April 2034 | Fixed rate: 3.75% to 6.50% | 4101722 | 4260115 |
| BRAZIL | BRL | July 2016 to December 2020 | July 2021 to May 2044 | Variable: IPCA + 3.50% to 6.04%; CDI + 1.68& to 6% | 2200308 | 2167552 |
| CHILE | USD and UF | March 2001 to June 2019 | March 2021 to December 2030 | Fixed rate: 2.30% to 7.37% | 3526633 | 3363224 |
| **TOTAL BONDS** |  |  |  |  | **14356754** | **14194433** |

---

During 2020 the Group issued bonds for a total of COP 2,227,852.

Maturities of outstanding bonds are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Current | 640820 |
| Non-current | 13553613 |
| 2022 | 754758 |
| 2023 | 2263254 |
| 2024 | 996430 |
| 2025 and after | 9539171 |
| **Total** | **14194433** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2** **Bank loans** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **2020** | **2020** |
| <br>**Country** | <br>**Original**<br>**currency** | <br>**Date of**<br>**issuance** | <br>**Maturity date** | <br>**Interest rate** | **Nominal**<br>**value** | **Amortized cost**<br>**value** |
| COLOMBIA | COP and USD | February 2015 to December 2020 | July 2020 to July 2035 | Variable: CPI +2.99% to 9%; IBR + 1.65% to 8.20%Fixed: 5.50 to 7.40%  | 2472033 | 2476014 |
| PERU | PEN and USD | February 2016 to August 2020 | March 2021 to December 2025 | Variable rate: Libor + 1.25% to 3.22% Fixed rate: 0.98% to 3.80% | 901329 | 900891 |
| BRAZIL | BRL and USD | March 2009 to November 2020 | January 2021 to March 2032 | Variable rate: TJLP + 0% to 2.62%; CDI + 1.80% to 5.40%; Libor + 0.47% to 3.50% Fixed rate: 3 to 10% | 946568 | 952162 |
| CHILE | CLP, USD and UF | March 2011 to October 2020 | January 2021 to June 2050 | Variable rate: TAB + 0.35% to 1.50%; LIBOR + 1.60% to 2.25% Fixed rate: 0.32% to 4.53% | 4086700 | 3945335 |
| **TOTAL FINANCIAL OBLIGATIONS** |  |  |  |  | **8406630** | **8274402** |

---

During 2020, the Group acquired loans for a total of COP 2,698,760.

Maturities of outstanding loans are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Current | 625195 |
| **Non-current** | 7649207 |
| 2022 | 2140418 |
| 2023 | 875224 |
| 2024 | 567218 |
| 2025 and after | 4066347 |
| **Total** | **8274402** |

---

Some obligations are secured (Note 32) or have covenants obligations (Note 33).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3** **Derivative Financial Instruments** 

The fair value of derivative financial instruments used in cash-flow hedging transactions related to bonds and bank loans are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Company** | **Derivative** | **Subjacent** | **2020** |
| ISA REP | Cross currency swap | Bonds | 76739 |
| RUTA DEL MAIPO | Cross currency swap | Bonds | 81112 |
| ISA INTERCHILE <sup>(1)</sup> | Interest rate swap | Ban loans | 285452 |
| ISA CTEEP | Cross currency swap | Bank loans |  |
| **Total** |  |  | **443303** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The total nominal value of this instrument is USD 716,653,828 at a fixed interest rate of 2,51%, This swap is registered as of December 2020 for an amount of USD 83,161,734.

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Accounts payable** 

---

| | |
|:---|:---|
|  | **2020** |
| Suppliers and creditors <sup>(1)</sup> | 740390 |
| Related Parties | 62 |
| Dividends <sup>(2)</sup> | 215505 |
| Retention on agreements | 32517 |
| Other accounts payable | 3226 |
| Lease liabilities <sup>(Note 12)</sup> | 227203 |
| **Total accounts payable** | **1218903** |
| Current | 996635 |
| Non-current | 222268 |
|  | **1218903** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Accounts payable to suppliers originate mainly from the purchase of goods and services for the development of operations of the Group. These liabilities do not bear interest, and in general they are paid according to the payment policies established by each company.

&nbsp;&nbsp;&nbsp;&nbsp;(2) ISA CTEEP´s dividends payable to non-controlling shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Risk management** 

Given the nature of the Group´s various businesses and companies, their geographic position and various rights and obligations the Group is exposed to different financial risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1** **Market risk** 

Market risk corresponds to unfavorable variations in relation to the fair value or expected future cash flows of financial instruments, caused by adverse changes in variables such as exchange rates, domestic and international interest rates, market indexes (macroeconomic variables), raw materials (commodities), among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1.1** **Interest rate risk and macroeconomic variables** 

This risk corresponds to unfavorable changes in fair value or future cash flows of financial instruments, and it is caused by the variation (volatility) of domestic and international interest rates and macroeconomic variables that are indexed to these flows thus affecting their value.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;● **Financial obligations** 

As of December 31, 2020, indexation related to interest rates and macroeconomic variables affecting the Groups financial obligations are shown below. In most cases the revenue structure of the Group entities that are the debtors to these transactions offsets the risks related to such indexes.

---

| | | |
|:---|:---|:---|
| | **Debt participation per rates** | **Debt participation per rates** |
| <br>**Rate** | **Balance as of**<br>**December 2020** | <br>**Share (%)** |
| Fixed Rate | 5695557 | 25.0% |
| CPI | 4286670 | 18.8% |
| UF | 3795125 | 16.7% |
| Libor (3M) | 3425538 | 15.1% |
| IPCA (Broad Consumer Price Index) | 1604853 | 7.1% |
| CDI | 1115711 | 4.9% |
| TAB | 928616 | 4.1% |
| UVR | 668269 | 2.9% |
| IBR (6M) | 405997 | 1.8% |
| Libor(6M) | 358807 | 1.6% |
| TJLP (Long Term Interest Rate) | 302798 | 1.3% |
| IBR (3M) | 170957 | 0.7% |
| **Total** | **22758898** | **100%** |

---

**Financial instruments - Liquidity surplus**

The Group invests it´s liquidity surplus in financial instruments with the objective to keep them until their due date; therefore, it is normally not exposed to interest rate risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.2** **Exchange rate risk** 

The Group is exposed to exchange rate risk arising mainly from its investments in foreign entities and from assets and liabilities indexed in foreign currencies.

In situations where there is no natural hedge that could compensate the exchange rate risk, the Group may enter into financial hedging operations to cover this risk.

Hedge operations for financial risks are considered as mitigation tools for market risk.

As part of its Market Risk hedging strategy (Exchange Rate, Interest Rate, Price), the Group acquires derivative financial instruments such as forwards and swaps at the best available conditions in each market (see note 13.3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.3** **Credit and counterparty risk** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.3.1** **Credit risk (customers):** 

This risk is related to the potential default of counterparties for services rendered by Group companies, financial institutions in which it keeps investments and contracts financial instruments. In this regard, the majority of the Group´s businesses is highly regulated and contractual measures exists that reduce such risk.

The Group performs a continuous analysis of the financial strength of its counterparties, by classifying them according to their risk level and financial guarantees in the event of a default of payments. Similarly, the Group continuously monitors national and international market conditions for early alerts of major changes that may have an impact on the timely payment of obligations from customers.

For the receivables that are considered exposed to credit risk, the Group makes individual analysis of each customer's situation to determine the value of impairment to recognize in financial statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.3.2** **Credit risk - surplus liquidity:** 

This risk is mainly mitigated through the selection of financial institutions of renowned strength and positive risk ratings given by locally or internationally authorized agencies. In addition, the Group uses allocation models that analyze both quantitative (financial indicators) and qualitative (risk grading) variables when investing its surplus liquidity.

------

As of December 31, 2020, no financial institutions where the Group manages its excess liquidity presented any indicators related to this risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.4** **Liquidity risk** 

The Group defines liquidity risk as the potential lack of capacity to obtain enough funds for the fulfillment of its obligations, without incurring in unacceptably high costs. The Group constantly monitors its short-term cash flow needs, which permits liquidity needs to be identified timely.

On the other hand, the Group maintains tools to achieve additional liquidity, such as the issuing of commercial papers and credit facilities with local and foreign entities that enable the fulfillment of temporary requirements for funds when so required.

---

| | |
|:---|:---|
| **16** | **Financial instruments** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.1** **Classification of financial assets by nature and category** 

**Fair value of financial assets**

As of December 31, 2020, the carrying values of financial assets measured at amortized cost present no significant difference to their fair values. Fair value is presented in the following table, based on the categories of financial assets, compared with its current and non-current carrying value included in the financial statements:

---

| | | |
|:---|:---|:---|
| | **2020** | **2020** |
| <br>**Financial assets** | **Amortized cost** | **At Fair value** |
| Accounts receivable <sup>(5.1)</sup> | 2348684 | 1735737 |
| Other financial assets <sup>(5.2)</sup> | 441664 | 644999 |
| **Total current** | **2790348** | **2380736** |
| Restricted cash <sup>(7)</sup> |  | 217646 |
| Investments in financial instruments <sup>(9)</sup> |  | 17102 |
| Accounts receivable <sup>(5.1)</sup> | 9539863 | 9323266 |
| Other financial assets <sup>(5.2)</sup> |  | 148 |
| **Total non-current** | **9539863** | **9558162** |
| &nbsp;&nbsp;**Total** | **12330211** | **11938898** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.2** **Classification of financial liabilities by nature and category** 

**Fair value of financial liabilities**

As of December 31, 2020, the carrying values of financial liabilities measured at amortized cost present no significant differences in relation to their fair values. Fair value is presented in the following table, based on the categories of liabilities, compared with current and non-current carrying value included in the financial statements.

---

| | | |
|:---|:---|:---|
| | **2020** | **2020** |
| <br>**Financial assets** | **Amortized cost** | **At Fair value** |
| Financial liabilities and bonds <sup>(13.1) (13.2)</sup> | 1265875 |  |
| Derivative instruments <sup>(13.3)</sup> |  | 140 |
| Accounts payable <sup>(14)</sup> | 1186693 |  |
| **Total current** | **2452568** | **140** |
| Financial liabilities and bonds <sup>(13.1) (13.2)</sup> | 20759657 |  |
| Derivative instruments <sup>(13.3)</sup> |  | 443163 |
| Accounts payable <sup>(14)</sup> | 1100365 |  |
| **Total non-current** | **21860022** | **443163** |
| &nbsp;&nbsp;**Total** | **24312590** | **443303** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3** **Fair value of financial instruments** 

**Fair value hierarchies**

Financial instruments recognized at fair value in the statement of financial position are classified hierarchically according to the criteria described in Note 3.13.

The following tables show the financial assets and liabilities measured at fair value as of December 31, 2020:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Financial instruments** | **2020** | **2020** | **Fair value measured at the end of period** | **Fair value measured at the end of period** | **Fair value measured at the end of period** |
| **At fair value** | **Current** | **Non-current** | **Level I** | **Level II** | **Level III** |
| **Financial assets** |  |  |  |  |  |
| Restricted cash |  | 217646 | 217646 |  |  |
| Financial assets | 1735737 | 9323266 |  | 11059003 |  |
| Financial instruments |  | 17102 |  | 17102 |  |
| Other financial assets | 644999 | 148 | 644999 | 148 |  |
| **Total** | **2380736** | **9558162** | **862645** | **11076253** | **—** |
| **Financial liabilities** |  |  |  |  |  |
| Derivative instruments | 140 | 443163 |  | 443303 |  |
| **Total** | **140** | **443163** | **—** | **443303** | **—** |

---

---

| | |
|:---|:---|
| **17** | **Provisions** |

---

---

| | |
|:---|:---|
|  | **2020** |
| Contingencies <sup>(1)</sup> | 81705 |
| Other estimated liabilities and provisions <sup>(2)</sup> | 535157 |
|  | **616862** |
| Current | 368985 |
| Non-current | 247877 |
|  | **616862** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) It corresponds to provisions recognized related to contingencies against the Group and which, based on management´s estimate supported by its internal and external legal counsels, are more likely than not to be unfavorable. (See Note 31).

&nbsp;&nbsp;&nbsp;&nbsp;(2) Mainly includes:

● Liabilities from goods and services received pending invoicing for COP 203,165.

● Provision for major maintenance and replacements of the Group´s concessions in Perú for COP 230,490; see Note 3.9.1.

---

| | |
|:---|:---|
| **18** | **Income tax** |

---

Relevant income tax aspects applicable to the Group:

In accordance with Law 2010/2019 (Tax Reform) the tax provisions applicable to individual companies in Colombia for the taxable year 2020 are the following:

The income tax rate applicable to national companies and foreign entities will be 32% for the year 2020, 31% for the year 2021 and 30% for the year 2022 and subsequent years.<br>

For the years 2019 and 2020, the presumptive income rate will be 1.5% and 0.5%, respectively, of the taxpayer's net equity from the immediately previous year. From 2021 the applicable tax rate will be 0%.<br>

The income tax for tax free trade zone users will be 20%. If the company located in the free zone has a Legal Stability Agreement (hereinafter LSA), the income tax rate will continue to be 15% during the term of said contract.<br>

For fiscal year 2020, the Group had subsidiaries that were subject to a 32% income tax rate.<br>

- The tax depreciation percentages are adjusted based on the table established in Law 1819 of 2016.

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- Tax losses generated as of January 1, 2017 may be offset against ordinary net income obtained in the following 12 taxable years.

- Following the Article 290 of Law 1819 of 2016, any excess between estimated income reported and CREE that has not yet been offset may be offset in accordance to the formula provided for this purpose in said article and subject to the term established in Article 189 of the Colombian Tax Code.

A 7.5% withholding is established for dividends distributed to companies domiciled in Colombia and 10% when paid to non-residents.

VAT paid for the acquisition, construction or formation and importation of capital assets of any industry may be deducted from the income tax. Regarding assets ready for use, the discount may only beapplied from the moment the asset is puto in operation and depreciation begins

**Statute of limitations of tax returns in Colombia**

By general rule, the statute of limitations for the income tax return corresponds to 3 years counted as from the due date to file the return or the filing date, when these have been lately filed. Returns filed by taxpayers that have made transactions, subject to the transfer pricing regulations, have a five-year statute of limitations, for the tax returns that are filed as of January 1, 2020.

For tax returns with favorable balances, the statute of limitations will be 3 years as of the filing date of the request for refunds or offsetting.

For tax returns in which tax losses are carried forward, the statute of limitations will be 6 years (5 years from 2020) counted as of their filing date.

With respect to tax returns where tax losses are calculated, the statute of limitations will be 12 years and if the losses are carried forward within the last 2 years of the 12–year period, the statute of limitations will be extended up to 3 additional years from the year of offsetting.

In addition, to determine the income tax, the following must be considered:

● For fiscal years 2020, 2019 and 2018, the Group had foreign subsidiaries that were subject to statutory income tax rates ranging from 27% to 34%.

● On June 27, 2008, ISA and the – Colombian Ministry of Mines and Energy- signed a legal stability agreement for the electricity transmission activity for a 20-year period. This agreement basically provided for stabilization of income tax regulations, including the income tax rate, deduction of the inflationary element of financial expenses, special deduction of 40% for new investments in real productive fixed assets, tax discount by VAT paid at import of machinery for electricity transmission and presumptive income as 3% of net assets, as well as the time limit of the equity tax.

This agreement ensures that in the event of adverse changes to the rules stabilized in the agreement, those rules will continue to apply during the term thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.1** **Income tax recognized in the consolidated statement of income** 

Income tax recorded in the comprehensive income statement corresponding to year 2020, is as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Current tax expense | 668357 |
| Deferred tax expense | 405875 |
| **Total income tax expense** | **1074232** |

---

------

The reconciliation of income tax expense is as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Profit before taxes | 4838457 |
| **Income tax expense at nominal rates** | **1397864** |
| **Increase (decrease) in the tax expense resulting from:** |  |
| Effect of tax rates in foreign jurisdictions | 36843 |
| Non-deductible expenses | 144545 |
| Effect of tax losses/presumptive income surplus | (300147) |
| Change in tax rates | (23458) |
| Fixed asset tax benefit | (73287) |
| Difference in tax treatment of concession assets in Costera Colombia | (60195) |
| Other tax effects | (47933) |
| **Income tax expense at effective rate** | **1074232** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.2** **Deferred tax assets and liabilities** 

Deferred tax assets and liabilities as of December 31, 2020, are as follows:

---

| | | |
|:---|:---|:---|
|  | **2020** | **2020** |
|  | **Beginning of** <br>**the period** | **End of** <br>**the period** |
| **Deferred tax assets** |  |  |
| Loss carry forwards | 1237661 | 1528963 |
| Provisions | (446273) | 79473 |
| **Total deferred tax asset** | **791388** | **1608436** |
| **Deferred tax liability** |  |  |
| Property, plant, and equipment | (1219984) | (1393670) |
| Intangible assets | (87375) | (247594) |
| Concession assets | (3531633) | (3502035) |
| Accounts receivable/ financial assets | (2757) | (636401) |
| **Total deferred tax liabilities** | **(4841749)** | **(5779700)** |

---

Annual variations in the deferred tax balance were recognized as shown below:

---

| | |
|:---|:---|
|  | **2020** |
| **Net deferred tax variation** |  |
| Beginning of the period | (4050361) |
| End of the period | (4171264) |
| **Variation of the year** | **(120903)** |
| **Variation of the year** |  |
| Recognized in the income statement | 405875 |
| Recognized in other comprehensive income | 32342 |
| Foreign currency translation | (317314) |
| **Deferred tax variations** | **(120903)** |

---

------

As of December 31, 2020, tax loss carryforwards and presumptive income surplus are recognized in the following companies.

---

| | | | |
|:---|:---|:---|:---|
|  | **Country** | **Tax base** | **Deferred tax** |
| **Tax Losses/Presumptive Income Surplus** |  |  |  |
| RUTA DE LA ARAUCANÍA | Chile | 657331 | 177479 |
| RUTA DEL BOSQUE | Chile | 11234 | 3033 |
| RUTA DEL MAIPO | Chile | 2848850 | 769190 |
| RUTA DEL LOA | Chile | 33187 | 8961 |
| ISA INTERVIAL CHILE | Chile | 6797 | 1835 |
| ISA INVERSIONES CHILE | Chile | 30299 | 8181 |
| ISA INVERSIONES COSTERA CHILE | Chile | 5026 | 1357 |
| ISA INTERCHILE | Chile | 1991835 | 537580 |
| INTERNEXA CHILE | Chile | 56544 | 15267 |
| RUTA COSTERA | Colombia | 20267 | 6080 |
| **Total** |  | **5661370** | **1528963** |

---

Additionally, there is a balance of tax loss carry forwards and presumptive income surplus as of December 31, 2020, on which deferred tax was not recognized since there is no reasonable expectation for these companies to obtain future taxable income to compensate for such losses:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Country** | <br>**Tax base** | **Deferred tax**<br>**not yet**<br>**recognized** |
| **Tax Losses/Presumptive Income Surplus** |  |  |  |
| RUTA DEL BOSQUE | Chile | 280458 | 75724 |
| RUTA DEL MAULE | Chile | 79811 | 21549 |
| ISA INTERVIAL COLOMBIA | Colombia | 1492 | 454 |
| RUTA COSTERA | Colombia | 1178 | 353 |
| ISA CAPITAL DO BRASIL | Brazil | 40929 | 13916 |
| ISA INVESTIMENTOS E PARTICIPAÇÕES | Brazil | 944 | 321 |
| INTERNEXA BRASIL OPERADORA DE TELECOMUNICAÇÕES | Brazil | 196999 | 66980 |
| INTERNEXA PARTICIPAÇÕES | Brazil | 76634 | 26056 |
| **Total** |  | **678445** | **205353** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.3** **Tax receivable** 

---

| | |
|:---|:---|
|  | **2020** |
| Other taxes, rates, and contributions | 265,622 |
|  | **265,622** |
| Current | 260,466 |
| Non-current | 5,156 |
|  | **265,622** |

---

This item includes withholding tax that will be offset in subsequent periods, mainly sales tax and municipal taxes.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**18.4** **Tax payable**

---

| | |
|:---|:---|
|  | **2020** |
| Contributions payable <sup>(1)</sup> | 873896 |
| Other taxes <sup>(2)</sup> | 138489 |
| Income tax provision | 233352 |
|  | **1245737** |
| Current | 376021 |
| Non-current | 869716 |
|  | **1245737** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Mainly includes PIS and COFINS contributions in Brazil.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Other taxes payable, including withholding tax, territorial taxes, and VAT.

---

| | |
|:---|:---|
| **19** | **Employee benefits** |

---

---

| | |
|:---|:---|
|  | **2020** |
| **Post-employment benefits** |  |
| Retirement pensions <sup>(19.1.1)</sup> | 488508 |
| Prepaid medical assistance plans <sup>(19.1.3)</sup> | 247022 |
| Education allowance <sup>(19.1.3)</sup> | 33779 |
| Electricity allowance <sup>(19.1.4)</sup> | 6738 |
| Social security pension contribution allowance <sup>(19.1.5)</sup> | 5455 |
| Plan assets <sup>(19.1.6)</sup> | (11244) |
| **Non-current benefits** |  |
| Seniority and quinquennium bonus <sup>(19.2)</sup> | 18672 |
| Severance <sup>(19.2)</sup> | 2586 |
| Interest payable <sup>(2)</sup> | 949 |
| **Termination benefits** |  |
| Termination benefits <sup>(19.3)</sup> | 4726 |
| **Total actuarial calculation** | **797191** |
| **Total employee benefits - non-current** | **781100** |
| **Total employee benefits - current** <sup>(1)</sup> | **16091** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) In addition to these benefits, the current portion incorporates the following items:

---

| | |
|:---|:---|
|  | **2020** |
| Severance and severance interests | 7421 |
| Vacations | 22697 |
| Extra-legal payments | 7244 |
| Bonuses | 33190 |
| Retirement pensions | 16091 |
| Other | 34336 |
| **Total actuarial calculation** | **120979** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1** **Post-employment benefits** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1.1** **Retirement pensions** 

The Group sponsors defined benefit retirement plans in Colombia (ISA, ISA TRANSELCA, and XM) and Brazil (ISA CTEEP)

The present value of the pension obligation as of December 31, 2020, was calculated based on actuarial studies in accordance with IAS 19 based on the projected credit unit method.

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salary increases, they are applied until the date on which the participant is expected to end the service. However, if the service in recent years leads to significant additional benefits related to previous years, benefits are linearly attributed from the date when service by the employee entitles to benefits under the plan, until such date when subsequent services lead to no additional material amount of benefits under the plan.

The primary actuarial variables used in the valuation were:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2020** | **2020** | **2020** | **2020** |
| <br>**Variables** | <br>**ISA** | **ISA**<br>**TRANSELCA** | <br>**XM** | <br>**ISA CTEEP** |
| Discount rate | 6.60% | 6.70% | 6.90% | 6.81% p. a. |
| Future salary increase | 4.50% | 4.00% | 4.50% | 1.87% p. a. |
| Future pension increase | 3.50% | 3.50% | 3.50% | 3.20% a. a. |
| Inflation rate | 3.50% | 3.50% | 3.50% | 3.20% a. a. |
| Minimum salary increase | 4.00% | 4.50% | 4.50% | 0.00% |
| Rate of return on assets | 0.00% | 0.00% | 0.00% | 0.00% |
| Mortality chart | 2008 valid | 2008 valid | 2008 valid | AT-1949  |
|  | rentiers | rentiers | rentiers | male |
| Number of people covered by pension plan | 403 | 186 | 19 | 4161 |
| Number of people covered by contributions plan |  | 186 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1.2** **Prepaid medical assistance plans** 

The Group prepaid medical assistance benefits for employees in Colombia (ISA, ISA INTERCOLOMBIA, ISA TRANSELCA, and XM) under which it assumes following percentages on premiums related to health plans corresponding to prepaid medical assistance and hospitalization policy:

● For wages up to 4.3 current minimum legal monthly wages (SMLMV), 90% of the premium value.

● For wages between 4.3 and 5,5 legal monthly minimum salaries (SMLMV), eighty percent (80%) of the premium value.

● For wages above 5.5 legal monthly minimum salaries (SMLMV), seventy percent (70%) of the premium value.

In addition, ISA and ISA INTERCOLOMBIA provide a health assistance benefit of 1.70 SMLMV and 1.54 SMLMV, respectively, to employees and their beneficiaries.

The benefit obligation was determined through the projected unit credit methodology.

The primary actuarial variables used in the valuation were:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2020** | **2020** | **2020** | **2020** |
| <br>**Variables** | <br>**ISA** | **ISA**<br>**INTERCOLOMBIA** | **ISA** <br>**TRANSELCA** | <br>**XM** |
| Discount rate | 6.80% | 7.20% | 7.00% | 7.30% |
| Salary increase | 4.50% | 4.50% | 4.00% | 4.50% |
| Initial increase rate for benefit cost | 4.50% | 4.50% | 4.50% | 4.50% |
| Final increase rate for benefit cost | 4.50% | 4.50% | 4.50% | 4.50% |
| Rate of return on assets | 0.00% | 0.00% | 0.00% | 0.00% |
| Mortality chart | 2008 valid | 2008 valid | 2008 valid | 2008 valid |
|  | rentiers | rentiers | rentiers | rentiers |
| Turnover rate | "2003 SOA | "2003 SOA Pension |  | 110% of chat  |
|  | Pension Plan | Plan Turnover Study" |  | "2003 SOA  |
|  | Turnover Study" | with an adjustment | N/A | Pension Plan |
|  |  | factor at 50% |  | Turnover Study" |
| Number of people covered by medical plan | 1017 | 515 | 387 | 203 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1.3** **Educational allowance** 

When Group employees in Colombia (ISA, ISA INTERCOLOMBIA, ISA TRANSELCA, and XM) retire they are entitled to an educational allowance for each child until they reach 25 years old, provided they are single and not working.

The allowance is paid per school year or semester.

Benefit amounts are as follows:

**ISA and ISA INTERCOLOMBIA**

---

| | | |
|:---|:---|:---|
| | **Amount to be recognized for each period** | **Amount to be recognized for each period** |
| <br>**Educational level** | **Beneficiaries of the**<br>**collective labor convention** | **Beneficiaries of the**<br>**labor collective pact** |
| Daycare, kindergarten, primary and secondary, for each child | 2.7 SMLMV (annual) | 4.5 SMLMV (annual) |
| Technology, technical, professional and specialization in technology, for each child | 1.5 SMLMV (per semester) | 2.25 SMLMV (per semester) |
| Children with learning disabilities, whatever age. | 3.0 SMLMV (annual) | 4.5 SMLMV (annual) |

---

**ISA TRANSELCA**

---

| | |
|:---|:---|
| <br>**Educational level** | **Amount to be recognized for each period**<br>**Beneficiaries of the collective labor**<br>**convention** |
| Maternity aid, kindergarten and/or primary | COP 295,626 (annual) |
| Financial aid for secondary studies and/or technical courses | COP 418,790 (annual) |
| University and/or intermediate degrees aid | COP 592,348 (per semester) |
| Physical and mental rehabilitation | COP 592,348 (annual) |

---

**XM**

---

| | |
|:---|:---|
| <br>**Educational level** | **Amount to be recognized for each period**<br>**Beneficiaries of the labor collective pact** |
| Employee | 3.5 SMLMV (per semester) |
| Daycare / Preschool Primary / Secondary (children) | 5 SMLMV (annual) |
| Technology / Professional Technician / Specialization studies (children) | 5 SMLMV (annual. payable per semester) |
| Specially | 3.5 SMLMV (annual) |

---

The benefit obligation was calculated through the projected unit credit methodology.

The primary actuarial variables used in the valuation were:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **DECEMBER 2020** | **DECEMBER 2020** | **DECEMBER 2020** | **DECEMBER 2020** |
| <br>**Variables** | **ISA** | **ISA INTERCOLOMBIA** | **ISA TRANSELCA** | **XM** |
| Discount rate | 7.20% | 7.10% | 6.70% | 7.30% |
| Minimum salary increase | 4.50% | 4.50% | 3.50% | 4.50% |
| Rate of return on assets | N/A | N/A | N/A | N/A |
| Mortality chart | 2008 valid | 2008 valid | 2008 valid | 2008 valid  |
|  | rentiers | rentiers | rentiers | rentiers |
| Turnover rate | "2003 SOA | "2003 SOA Pension | N/A | 110% of chat  |
|  | Pension Plan | Plan Turnover Study" |  | "2003 SOA  |
|  | Turnover Study" | with an adjustment |  | Pension Plan  |
|  |  | factor at 50% |  | Turnover Study" |
| Number of people covered by education plan | 178 | 375 | 51 | 146 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1.4** **Electricity allowance** 

When employees of ISA TRANSELCA in Colombia retire they are entitled to an electricity allowance of up to 80% of the residential consumption of the employee's permanent housing.

The benefit obligation was calculated through the projected unit credit methodology.

The primary actuarial variables used in the valuation were:

---

| | |
|:---|:---|
| <br>**Variables** | **DECEMBER**<br>**2020** |
| Discount rate | 7.10% |
| Inflation rate | 3.50% |
| Rate of return on assets | 0.00% |
| Mortality chart | 2008 valid rentiers |
| Turnover rate | N/A |
| Number of people covered by education plan | 155 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1.5** **Social security pension contribution allowance** 

The Group employee´s in ISA TRANSELCA are entitled to an allowance equivalent to the employee´s contribution to Colombian Social Security system, between the date the employee leaves the Group until its retirement.

The obligation for social security pension contribution allowance was determined through the projected credit unit methodology.

The primary actuarial variables used in the valuation were:

---

| | |
|:---|:---|
| <br>**Variables** | **DECEMBER**<br>**2020** |
| Discount rate | 7.10% |
| Future salary increase | 4.00% |
| Future pension increase | 3.50% |
| Inflation rate | 4.00% |
| Minimum salary increase | 4.00% |
| Rate of return on assets | N/A |

---

------

Movements in employee benefits for the year ended December 31, 2020, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | <br>**Pension** | **Medical**<br>**assistance**<br>**plan** | <br>**Education**<br>**allowance** | <br>**Electricity**<br>**allowance** | **Contributions**<br>**to social**<br>**security** | <br>**Total** |
| **Balance as of December 31, 2019**  | **227846** | **234630** | **27474** | **5852** | **5340** | **501142** |
| Reclassification - plan assets to retirement pensions <sup>(1)</sup> | (34980) |  |  |  |  | (34980) |
| Current period service costs | 12025 | 2984 | 1074 |  |  | 16083 |
| Interest expense | 15509 | 16542 | 2023 | 396 | 355 | 34825 |
| Actuarial (gains)/losses from experience | 571555 | (2132) | 432 | 883 | 296 | 571034 |
| Actuarial gains/(losses) from change in demographic assumptions |  | (2489) | (347) |  |  | (2836) |
| Actuarial gains/(losses) from financial assumptions | (65360) | 8176 | 3679 |  |  | (53505) |
| Benefits directly paid by the company | (15977) | (10689) | (556) | (393) | (536) | (28151) |
| Other changes <sup>(2)</sup> | (205378) |  |  |  |  | (205378) |
| Exchange rate effect | (16732) |  |  |  |  | (16732) |
| **Balance as of December 31, 2020**  | **488508** | **247022** | **33779** | **6738** | **5455** | **781502** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) As of December 31, 2020, ISA CTEEP had an actuarial deficit of COP 252,302. The variation from actuarial surplus to actuarial deficit between December 2019 and December 2020 resulted from a readjustment in annuities of more than 23% (cumulative variation in the IGP-DI over the period).

&nbsp;&nbsp;&nbsp;&nbsp;(2) It is related to the calculation of ISA CTEP's pension liability by yield on the fair value of plan assets (less interest on the asset's fair value) and change in the ceiling for the recognition of onerous assets/liabilities at the end of the year (less interest on the ceiling for the recognition of onerous assets/liabilities).

Sensitivity analysis:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Assumptions** | <br>**Pension** | **Medical**<br>**assistance**<br>**plan** | <br>**Education**<br>**allowance** | <br>**Electricity**<br>**allowance** | **Contributions**<br>**to social**<br>**security** |
| **Change in discount rate** |  |  |  |  |  |
| Discount rate increase by +1% | 3153695 | (28506) | (4543) | (657) | (533) |
| Discount rate decrease by -1% | 4021163 | 35186 | 5736 | 783 | 640 |
| **Benefit increase change** |  |  |  |  |  |
| Increase in benefit increase by +1% |  |  | 6028 | 802 |  |
| Decrease in benefit increase by -1% |  |  | (4826) | (682) |  |
| **Change in medical trend** |  |  |  |  |  |
| Increase in medical trend by +1% |  | 32144 |  |  |  |
| Decrease in medical trend by -1% |  | (26337) |  |  |  |
| **Obligation base** | **488508** | **247022** | **33779** | **6738** | **5455** |
| **Average duration of the plan** | **11.80** | **14.42** | **14.69** | **11.60** | **11.50** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1.6** **Plan assets** 

---

| | |
|:---|:---|
|  | **2020** |
| XM | (11244) |
| ISA CTEEP |  |
| **Total plan assets** | **(11244)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.2** **Long term employee benefits** 

Group employees in Colombia (ISA, ISA INTERCOLOMBIA, and XM) receive benefits associated to the length of service with the company, such as severance, seniority premium, and five-year period payments (quinquennium).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.2.1** **Quinquennium** 

The benefit consists of the five-year period payment of a fixed sum when the employee reaches five-year service in the company, and subsequently, every five-year service period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.2.2** **Seniority premium** 

The benefit consists of the annual payment of one day's salary per each year of service with the company, in the month of completion of each year of service. The benefit begins when participant completes five years of service with the company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.2.3** **Severance** 

In ISA INTERCOLOMBIA, this benefit is granted in cause of termination of the employment contract and includes retirement, disability and death benefits. This benefit is based on the employee´s service period and average monthly salary.

The main actuarial assumptions used in the valuation of the non-current benefits are:

---

| | | | |
|:---|:---|:---|:---|
| | **DECEMBER 2020** | **DECEMBER 2020** | **DECEMBER 2020** |
| <br>**Variables** | **ISA** | **ISA INTERCOLOMBIA** | **XM** |
| Seniority premium discount rate | 5.90% | 5.70% | 6.00% |
| Severance discount rate |  | 4.80% |  |
| Minimum salary increase | 4.50% | 4.50% | 4.50% |
| Rate of return on assets | N/A | N/A | N/A |
| Mortality chart | 2008 valid rentiers | 2008 valid rentiers | 2008 valid rentiers |
| Turnover rate | "2003 SOA Pension Plan Turnover Study" | "2003 SOA Pension Plan Turnover Study" with an adjustment factor at 50% | 110% of chat "2003 SOA Pension Plan Turnover Study" |
| Number of people covered by seniority premium and quinquennium | 108 | 501 | 191 |
| Number of people covered by severance |  | 17 |  |

---

These benefits are valued annually. Movements for the year ended December 31, 2020, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Severance** | **Seniority premium**<br>**and**<br>**quinquennium**  | <br>**Total** |
| **Balance as of December 31, 2019**  | **5264** | **16922** | **22186** |
| Current period service costs | 87 | 1540 | 1627 |
| Interest expense/revenue | 270 | 1014 | 1284 |
| Actuarial (gains)/losses from experience | (1884) | 1332 | (552) |
| Actuarial gains/(losses) from change in demographic assumptions |  | (228) | (228) |
| Actuarial (gains)/losses from financial assumptions | 69 | 857 | 926 |
| Benefits directly paid by the company | (1220) | (2261) | (3481) |
| Other changes |  | (504) | (504) |
| **Balance as of December 31, 2020**  | **2586** | **18672** | **21258** |

---

Sensitivity analysis:

---

| | | |
|:---|:---|:---|
| **Assumptions** | **Severance** | **Seniority/Quinquennium** |
| **Change in discount rate** |  |  |
| Discount rate increase +1% | (69) | (1134) |
| Discount rate decrease -1% | 75 | 1284 |
| **Change in salary increase** |  |  |
| Increase in salary increase in +1% | 107 | 1328 |
| Decrease in salary increase in -1% | (101) | (1192) |
| **Obligation base** | **2586** | **18672** |
| **Average term of the plan (years)** | **3.43** | **7.07** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.3** **Termination benefits** 

Termination bonuses obligations related to employees of ISA TRANSELCA amount to COP 4,726 as of December 31, 2020.

------

The primary actuarial variables used in the valuation were:

---

| | |
|:---|:---|
| **Variables** | **2020** |
| Discount rate | 6.40% |
| Inflation rate | 4.00% |
| Mortality chart | 2008 valid rentiers |
| Turnover rate | "2003 SOA Pension Plan Turnover Study" with an adjustment factor at 30% |
| Number of people covered | 154 |

---

Movements for the year ended December 31, 2020, are as follows:

---

| | |
|:---|:---|
|  | **Retirement**<br>**bonus** |
| **Balance as of December 31, 2019** | **3871** |
| Current period service costs | 142 |
| Interest expense/revenue | 248 |
| Previous services costs |  |
| Actuarial (gains)/losses from experience | 465 |
| Actuarial (gains)/losses from financial assumptions |  |
| **Balance as of December 31, 2020** | **4726** |

---

Sensitivity analysis:

---

| | |
|:---|:---|
| **Assumptions** | **Retirement bonus** |
| **Change in discount rate** |  |
| Discount rate increase by +1% | (226) |
| Discount rate decrease by -1% | 260 |
| **Change in salary increase** |  |
| Increase in benefit increase by +1% | 282 |
| Decrease in benefit increase by -1% | (249) |
| **Obligation base** | **4726** |
| **Duration of the plan** | **5.50** |

---

---

| | |
|:---|:---|
| **20** | **Other liabilities and deferred revenue** |

---

---

| | |
|:---|:---|
|  | **2020** |
| Deferred revenue <sup>(1)</sup> | 494013 |
| Other liabilities <sup>(2)</sup> | 1321747 |
|  | **1815760** |
| Current | 274406 |
| Non-current | 1541354 |
| **Total** | **1815760** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Deferred revenues and credits mainly correspond to:

● In ISA, deferred revenues from construction services for infrastructure projects and from infrastructure use rights, for COP 143,464.

● Internexa, COP 175,987, associated with advances received for the construction of fiber optics network.

&nbsp;&nbsp;&nbsp;&nbsp;(2) It mainly includes other accounts payable for pre-existing infrastructure in RUTA DEL MAIPO for COP 796,232 and RUTA DE LA ARAUCANÍA for COP 59,040 and resources delivered by ANI to RUTA COSTERA for use in future periods, in accordance with the provisions of the concession contract, amounting to COP 203,934.

---

| | |
|:---|:---|
| **21** | **Equity** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.1** **Authorized and paid-in capital and number of shares** 

ISA's authorized capital amounts to COP$36,916, and is comprised of 1,107,677,894 outstanding ordinary shares, of which 39.77% (440,480,920 shares) are held privately, 8.82% (97,724,413 shares) are held by Empresas Publicas de Medellín, a public utilities

------

company controlled by the state of Antioquia in Colombia, and 51.41% (569,472,561) are held by the Colombian Government. As of December 31, 2020, subscribed and paid–in capital amounts to COP$36,331. There are no potential dilutive shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.2** **Additional paid-in capital** 

Additional paid–in capital mainly corresponds to share premium from the Group's capitalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.3** **Earnings per share** 

Earnings per share is calculated based on the annual weighted average of outstanding shares on the date of the statement of financial position. The Company does not have instruments with possible dilution effects.

---

| | | |
|:---|:---|:---|
|  |  | **2020** |
| Profit attributable to ISA's shareholders |  | 2,059,191 |
| Average of outstanding shares for the year |  | 1,107,677,894 |
| Basic and dilutive net profit per share (Colombian Pesos) |  | 1,859 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.4** **Dividends** 

Dividends declared in 2020 by ISA are detailed below:

---

| | |
|:---|:---|
|  | **2020** |
| Net profit of previous period | 1643505 |
| Outstanding shares | 1107677894 |
| Ordinary dividend per share (in COP) | 675 |
| Extraordinary dividend per share (in COP) |  |
| Total decreed dividends per share | 675 |
| Decclared dividends | 747683 |
| Payment method | Ordinary and extraordinary dividends payable in two installments, July and December 2020 |

---

As of December 31, 2020, there is a liability amount recognized of COP 213,505, related to dividends payable to non-controlling shareholders of CTEEP, see Note 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.5** **Equity reserves** 

---

| | |
|:---|:---|
|  | **2020** |
| Equity strengthening reserve <sup>(1)</sup> | 5287151 |
| Legal under tax provisions <sup>(2)</sup> | 898802 |
| Rehabilitation and repair of STN assets | 37434 |
| Legal | 18458 |
| **Total** | **6241845** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) In compliance with Article 47 of the Statutes, the General Shareholders' Meeting created this occasional reserve, so that the company maintains its financial strength and the level of financial indicators required by credit rating agencies to support ISA´s investment qualification, and to fulfill contractual commitments acquired with financial entities. On March 29, 2020, the General Shareholders' Meeting decided to increase this occasional reserve by COP 895,822.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Corresponds to the appropriation of net profits made in compliance with Article 130 of the Colombian Tax Statute, with the purpose of obtaining tax deductions for depreciation in excess of accounting depreciations

------

---

| | |
|:---|:---|
| **22** | **Revenues from contracts with customers** |

---

---

| | |
|:---|:---|
|  | **2020** |
| Electricity transmission services | 4915021 |
| Road concessions | 1120376 |
| Construction services | 2194300 |
| Information and telecommunication technologies | 379168 |
| Connection to the STN | 260201 |
| CND-MEM Dispatch and coordination | 155723 |
| Other operating revenues | 86058 |
| **Total** | **9110847** |

---

---

| | |
|:---|:---|
| **23** | **Concessions** |

---

The asset balances and operating revenues of concessions accounted for under IFRIC 12 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Business** | **Concessionaire** | **Country** | **Assets** | **Revenues** |
| **Intangible asset (Note 11):** |  |  |  |  |
| Electricity Transmission | CONSORCIO TRANSMANTARO | Peru | 4759017 | 1290433 |
|  | ISA REP | Peru | 1442082 | 645533 |
|  | ISA PERU | Peru | 153195 | 68257 |
| **Subtotal concessions in Peru:** |  |  | **6354294** | **2004223** |
| Electricity Transmission | ISA BOLIVIA | Bolivia | 42400 | 75090 |
|  | SISTEMAS INTELIGENTES EN RED | Colombia | 3387 | 18180 |
| **Total concessions recognized as intangible assets:** |  |  | **6400081** | **2097493** |
| **Contract Asset (Note 5):** |  |  |  |  |
| Electricity Transmission | ISA CTEEP | Brazil | 8592807 | 2407674 |
|  | INTERLIGAÇÃO ELÉTRICA PINHEIROS | Brazil | 387562 | 20392 |
|  | INTERLIGAÇÃO ELÉTRICA AGUAPEÍ | Brazil | 347666 | 307682 |
|  | INTERLIGAÇÃO ELÉTRICA TIBAGI | Brazil | 112494 | 35130 |
|  | INTERLIGAÇÃO ELÉTRICA ITAPURA | Brazil | 101022 | 36121 |
|  | INTERLIGAÇÃO ELÉTRICA ITAQUERÊ | Brazil | 359778 | 223816 |
|  | INTERLIGAÇÃO ELÉTRICA ITAÚNES | Brazil | 191653 | 113528 |
|  | INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI | Brazil | 350326 | 57676 |
|  | INTERLIGAÇÃO ELÉTRICA DE MINAS GERAIS | Brazil | 77340 | 18278 |
|  | EVRECY PARTICIPAÇÕES | Brazil | 39824 | 13671 |
|  | INTERLIGAÇÃO ELÉTRICA NORTE E NORDESTE | Brazil | 294633 | 31111 |
|  | INTERLIGAÇÃO ELÉTRICA SUL | Brazil | 131190 | (5517) |
|  | INTERLIGAÇÃO ELÉTRICA BIGUAÇU | Brazil | 72708 |  |
| **Total concessions recognized as contract assets:** |  |  | **11059003** | **3259562** |
| **Financial asset (Note 5):** |  |  |  |  |
| Electricity Transmission | ISA CTEEP | Brazil | 97033 | 731521 |
|  | INTERLIGAÇÃO ELÉTRICA PINHEIROS | Brazil | 4755 | 10099 |
|  | INTERLIGAÇÃO ELÉTRICA ITAPURA | Brazil | 778 | 2544 |
|  | INTERLIGAÇÃO ELÉTRICA ITAQUERÊ | Brazil | 3735 | 3775 |
|  | INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI | Brazil | 3424 | 5827 |
|  | INTERLIGAÇÃO ELÉTRICA DE MINAS GERAIS | Brazil | 1332 | 2673 |
|  | EVRECY PARTICIPAÇÕES | Brazil | 662 | 3134 |
|  | INTERLIGAÇÃO ELÉTRICA NORTE E NORDESTE | Brazil | 5418 | 4675 |
|  | INTERLIGAÇÃO ELÉTRICA SUL | Brazil | 1651 | 1954 |
| **Subtotal concessions in Brazil:** |  |  | **118788** | **766202** |
| Road concessions | RUTA DEL MAIPO | Chile | 6102452 | 932447 |
|  | RUTA DEL MAULE | Chile | 15149 | 278838 |
|  | RUTA DE LA ARAUCANÍA | Chile | 694643 | 122815 |
|  | RUTA DEL BOSQUE | Chile |  | 82260 |
|  | RUTA DE LOS RÍOS | Chile | 226067 | 76753 |
|  | RUTA DEL LOA | Chile | 166108 | 68486 |
| **Subtotal concessions in Chile:** |  |  | **7204419** | **1561599** |
| Road concessions | RUTA COSTERA | Colombia | 1922633 | 95672 |
| **Subtotal concessions in Colombia:** |  |  | **1922633** | **95672** |
| **Total concessions recognized as financial assets:** |  |  | **9245840** | **2423473** |

---

------

---

| | |
|:---|:---|
| **24** | **Operating costs and expenses** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.1** **Operating costs** 

Operating costs for the year ended December 31, 2020, are detailed below:

---

| | |
|:---|:---|
|  | **2020** |
| Construction costs of concession contracts | 1628854 |
| Personnel costs | 495867 |
| Depreciation | 406816 |
| Amortization | 358729 |
| Materials and maintenance | 337978 |
| Services | 212625 |
| Contributions and taxes | 135017 |
| Miscellaneous | 117907 |
| Insurance | 58364 |
| Fees | 44128 |
| Communication | 27176 |
| Environmental | 25112 |
| Leases | 7258 |
| Studies and projects | 6378 |
| Advertising, printed material, and publications | 2649 |
| **Total** | **3864858** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.2** **Administrative expenses** 

Administrative expenses for the year ended December 31, 2020, are detailed below:

---

| | |
|:---|:---|
|  | **2020** |
| Personnel expenses | 289339 |
| Provisions | 136243 |
| Fees | 93512 |
| Depreciation | 51434 |
| Amortization | 39096 |
| Contributions and taxes | 21317 |
| Environmental | 21457 |
| Services | 17994 |
| Materials and maintenance | 14513 |
| Leases | 1953 |
| Insurance | 10590 |
| Advertising, printed material, and publications | 10471 |
| Miscellaneous | 7299 |
| Studies and projects | 10658 |
| Communications | 463 |
| **Total** | **726339** |

---

---

| | |
|:---|:---|
| **25** | **Effect of periodic tariff review** |

---

Amount recognized in ISA CTEEP a result of the positive outcome of ANEEL's Periodic Tariff Review (RTP) which is performed every five years and corresponds to the first review after the extension of the concession agreement 059 in 2018. Therefore, the resolution has a retroactive effect as of 2018 and considers the redefinition of all elements comprising the remuneration.

------

---

| | |
|:---|:---|
| **26** | **Share of profit of associates and joint ventures** |

---

Share of profit (losses) of associates and joint ventures are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| Transmissora Aliança de Energia Elétrica | 215238 |
| Interligação Elétrica do Madeira | 123207 |
| Interligação Elétrica Garanhuns | (58401) |
| Interligação Elétrica Paraguaçu | 109903 |
| Interligação Elétrica Aimorés | 68931 |
| Interligação Elétrica Ivaí | 92561 |
| ATP Tower Holding | (27334) |
| Others | (4739) |
| **Total** | **519366** |

---

The share of profits of associates and joint ventures includes the amounts related to the amortization of the differences between the amount paid for such investments and the book value of participations acquired, which amounted to $19,639 in 2020.

---

| | |
|:---|:---|
| **27** | **Financial results** |

---

Financial results are as follows:

---

| | |
|:---|:---|
|  | **2020** |
| **Financial income** |  |
| Marketable securities | 245760 |
| Trade receivables | 55689 |
| Return on other assets | 44257 |
| Commercial discounts | 25360 |
| Monetary variation | 27435 |
| **Total financial income** | **398501** |
| Interest on bonds | 784120 |
| Interest on other financial obligations | 350297 |
| Other interest | 105240 |
| Loss on the sale of investments | 267157 |
| Commissions and other bank expenses | 25507 |
| Miscellaneous | 15537 |
| **Total financial expenses** | **1547858** |
| Exchange difference | (223515) |
| **Financial results** | **(1372872)** |

---

---

| | |
|:---|:---|
| **28** | **Related-party balances and transactions** |

---

Related-party transactions are carried out under market conditions and prices, in conditions equivalent to those existing for arm's-length transactions.

As of the date of these financial statements, there are no granted guarantees associated with related-party balances or impairment on accounts receivable, except for the balance with Transnexa S.A. E.M.A., which is 100% impaired.

Balances and transactions between Group companies have been eliminated in the consolidation process and are not disclosed in this note.

------

Below are the Group's related-party balances and transactions:

---

| | |
|:---|:---|
|  | **2020** |
| **Statement of financial position** |  |
| **Loans receivable from related parties** | **17365** |
| ATP TOWER HOLDINGS | 16962 |
| DERIVEX | 335 |
| INTERLIGAÇÃO ELÉTRICA GARANHUNS S.A. | 25 |
| INTERLIGAÇÃO ELÉTRICA PARAGUAÇU S.A. | (5) |
| INTERLIGAÇÃO ELÉTRICA AIMORÉS S.A. | 24 |
| INTERLIGAÇÃO ELÉTRICA IVAÍ S.A. | 24 |
| TRANSNEXA S.A. **Accounts payable to related parties** |  |
| TRANSNEXA S.A. | 62 |
| **Revenues** |  |
| ATP TOWER HOLDINGS | 9 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.1** **Key Senior Management personnel** 

Thse include the members of ISA´s Board of Directors, Senior Management, and the directors who are entitled to make high-impact financial decisions.

The Senior Management is composed of the CEO and board-level employees reporting directly to the CEO.

At the end of 2020, there are no transactions other than remuneration transactions between the company and members of its Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **Remuneration of the Board of Directors** 

For attending Board meetings and committees, the members received fees established by the General Shareholders' Meeting, equivalent to 141 UVT per meeting (equivalent to COP 35.607).

The total remuneration of the Board of Directors for 2020 was COP 1,364.

As of December 31, 2020, there are no labor relations between the members of the Board and the company, or business relations between the company and close relatives of members of the Board of Directors. (See Note 3.23).

&nbsp;&nbsp;&nbsp;&nbsp;**(2)** **Accounts receivable from Senior Management** 

Accounts receivable from Senior Management in 2020 amounted to COP 1,823.

&nbsp;&nbsp;&nbsp;&nbsp;**(3)** **Remuneration of key Senior Management personnel** 

---

| | |
|:---|:---|
|  | **2020** |
| Remuneration | 11898 |
| Short-term benefits | 6179 |
| Board of Director's fees <sup>(1)</sup> | 2272 |
|  | **20349** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Fees earned by members of ISA's key Senior Management for attending the Group's Board Meetings or Steering Committees.

There are no guarantees granted in favor of key Senior Management personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.2** **Balances and transactions with the Colombian government** 

As of December 31, 2020, the Colombian Government, as controlling shareholder and acting through the Ministry of Finance and Public Credit (MHCP), holds a 51.4114% interest in ISA's subscribed and paid-in capital.

&nbsp;&nbsp;&nbsp;&nbsp;● There are no transactions other than dividends paid by ISA to the MHCP. In 2020, ISA paid dividends to the MHCP for COP 384,394.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;● Representatives of the government that are members of the Board of Directors of ISA are considered the government's key directors for ISA.

There are no transactions other than the remuneration to the members of the Board of Directors. (See Note 3.23, paragraph a).

&nbsp;&nbsp;&nbsp;&nbsp;● As of December 31, 2020, there are no significant balances with entities over which the Nation holds a controlling interest.

---

| | |
|:---|:---|
| **29** | **Operating segments** |

---

A description of the Group's business segments is included in Note 3.25 – Information by business segment.

The following segment information is reported based on the information used by the Board of Directors as the top body to make strategic and operational decisions. The performance of the segments is reviewed based primarily on an analysis of income, costs, expenses and overall results for the period generated by each segment which are regularly monitored.

The information disclosed in each segment is presented net of transactions between the Group companies.

&nbsp;&nbsp;&nbsp;&nbsp;● **Statement of comprehensive income** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Electricity** <br>**Transmission**<br>**business** | <br>**Road** <br>**concessions** | **IT and** <br>**Telecommunications** <br>**business** | **Total** <br>**Operating** <br>**segments** |
| **2020** |  |  |  |  |
| Revenues | 7074563 | 1657271 | 379013 | 9110847 |
| Operating costs | (2769886) | (844137) | (250835) | (3864858) |
| **Gross profit** | **4304677** | **813134** | **128178** | **5245989** |
| Administrative expenses | (572921) | (60206) | (93212) | (726339) |
| Effect of periodic tariff review | 1056979 |  |  | 1056979 |
| Share profit of associates and joint ventures | 546709 | (9) | (27334) | 519366 |
| Other income (expenses) | 114679 | (18268) | 18923 | 115334 |
| **Operating income** | **5450123** | **734651** | **26555** | **6211329** |
| Financial results | (831699) | (507270) | (33903) | (1372872) |
| **Profit before taxes** | **4618424** | **227381** | **(7348)** | **4838457** |
| Income taxes | (1003793) | (58348) | (12091) | (1074232) |
| **Profit for the year** | **3614631** | **169033** | **(19439)** | **3764225** |
| Non-controlling interest | 1702865 | 2095 | 74 | 1705034 |
| **Profit attributable to controlling interest** | **1911766** | **166938** | **(19513)** | **2059191** |

---

&nbsp;&nbsp;&nbsp;&nbsp;● **Statement of financial position** 

**Assets**

---

| | |
|:---|:---|
|  | **2020** |
| Electricity Transmission business | 40522417 |
| Road concessions | 12328234 |
| IT and Telecommunications business | 1343418 |
| **Total assets by bussines unit** | **54194069** |

---

**Liabilities**

---

| | |
|:---|:---|
|  | **2020** |
| Electricity Transmission business | 24269682 |
| Road concessions | 8966132 |
| IT and Telecommunications business | 812062 |
| **Total liabilities by bussines unit** | **34047876** |

---

------

---

| | |
|:---|:---|
| **30** | **Disputes and claims** |

---

As of December 31, 2020, the Group is involved as defendant in administrative, civil, and labor judicial proceedings, none of which have the potential to cause significant impacts in the Group´s financial position and results of operations.

The most significant cases and corresponding provisions are presented below; there are no other cases that individually represent 5% of more of the provision for contingencies recognized as of December 31, 2020 of COP 81,705; see Note 17.

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Company** | <br>**Nature** | <br>**Description of the proceeding** | **Estimated** <br>**value** | <br>**Probability** |
| CTEEP | Labor | Disputes related to compensation including equality, overtime, perilous conditions, among others. | 33.380 | Probable |
| CTEEP and subsidiaries | Civil | Land disputes, related to the constitution of easements, expropriations, compensation and business actions | 22.430 | Probable |
| ISA TRANSELCA | Civil | Popular and group actions | 8.360 | Probable |

---

The Group is a defendant in labor, civil, social security and tax lawsuits involving risks of loss which, which based on management´s assessment supported by its internal and third-party legal counsels are classified as possible loss. The estimated amount involved COL 515,524 as of December 31, 2020, for which no provision was recognized.

---

| | |
|:---|:---|
| **31** | **Guarantees** |

---

The Group provides guarantees to support the growth of their different business units and to ensure the viability of strategic commercial projects and operations. Guarantees within the framework of paragraph 14 of IFRS 7 corresponding to pledged assets as contingent asset/liability guarantees granted by the Group.

As of December 31, 2020, the total amount of outstanding guarantees is as follows:

Colombia COP 5,345,852 million, Brazil COP 1,547,457 million and Chile COP 202,722,141 million.

---

| | |
|:---|:---|
| **32** | **COVID-19 Implications** |

---

The Covid-19 outbreak was first reported in late 2019 in China. Subsequently, taking into account the level of expansion, the World Health Organization (WHO) declared the outbreak as a pandemic on March 11, 2020. Said status is maintained to the date of these financial statements.

Many countries have undertaken various public health measures to control the spread of COVID-19, including mandatory quarantines, forced economic shutdowns and travel restrictions, as well as economic measures to mitigate the impacts of such public health policies on their respective national economy.

The Covid-19 pandemic has also caused significant volatility in financial markets around the world. While governments have announced aid packages to the most affected people and taken macroeconomic measures to face the crisis, the COVID-19 pandemic has disrupted economies worldwide.

On March 17, 2020, Colombia Government, through Legislative Decree 417 of 2020, declared a 30-day state of national emergency in light of the health and economic crisis caused by the outbreak of COVID-19. On May 6, 2020, the Government declared a state of emergency for an additional 30 days. For the rest of 2020, the National Government and local authorities implemented sectored lockdowns, and partial closures of commerce and not essential economic activities according to the number of new cases of infected population and hospital capacity. The Government also has implemented other economic and public health measures to address the crisis, including (i) border closure for all non-citizens and non-residents; (ii) short term and low interest loans for all types of agricultural producers; (iii) payroll subsidies for companies and credit lines for different sectors of the economy; (iv) incentivizing working from home and a mandatory work from home order for 80% of Government employees and (v) reduction in the prices of gasoline, among others.

------

This situation did not generate any significant impact to the Group´s operations, particularly due to the fact that the businesses operated by ISA are long-term in nature and have predictable, regulated revenues and insignificant demand risk hence were not impacted as compared other economic sectors that experienced severe impacts and disruption of normal operations.

Nonetheless, the Group has set up a permanent crisis committee, which has taken the following measures, among others, to protect the integrity of its employees and its stakeholders: (i) permanent monitoring of the health conditions of its own and third party employees, (ii) follow-up on the pandemic's progress in the regions where we are present, (iii) implementation of working from home policies and procedures for employees in Latin America who do not need to be on site (people who should return to the facilities must not have a COVID-19 infection vulnerability condition), (iv) the suspension of all national and international travels and, (v) the suspension of visits from external parties in the company´s headquarters. These measures also include the activation of business contingency plans, which comprise alternate control centers and distributed operation, distributed and alternated work groups, training of reserve staff to operate critical positions at control centers, reinforcement in the disinfection of spaces, supply of personal protection equipment, reinforcement in team training on critical processes, and modernization of facilities to mitigate contagion.

---

| | |
|:---|:---|
| **33** | **Subsequent events** |

---

&nbsp;&nbsp;&nbsp;&nbsp;● On February 3, 2021, ISA CTEEP issued of 672.500 bonds for BRL 672.000, maturing on July 15, 2044.

&nbsp;&nbsp;&nbsp;&nbsp;● On March 2, 2021, ISA CTEEP acquired all the shares representing the capital stock of Piratininga-Bandeirantes Transmissora de Energia (PBTE). This acquisition was made through the purchase of the interests held by SF Energía S.A. (93%) and Kavom Energía (7%) in this company. The final acquisition price was BRL 1.571 million (COP 1 trillion).

&nbsp;&nbsp;&nbsp;&nbsp;● In March 2021, the Group´s Board of Directors authorized management to start the process for the future sale of its subsidiary Internexa, which represents the Group's Telecommunication segment. However, considering that such process also requires the approval of the Colombian Ministry of Finance and Public Credit ("MHCP") under law 226/1995, and the change in control of Grupo ISA as disclosed below, such process is contingent upon other additional approvals yet to be executed.

&nbsp;&nbsp;&nbsp;&nbsp;● On July 26, 2021, ISA Interchile issued its first green bond listed on the Singapore Securities Exchange for an amount of USD 1,2 billion for a 35-year term. The objective was to restructure the debt commitments acquired during the construction phase of the Cardones - Polpaico 2×500 kV Transmission Line, a key infrastructure to decarbonize the matrix and contribute to climate change mitigation.

&nbsp;&nbsp;&nbsp;&nbsp;● On August 11, 2021, Ecopetrol (a Colombian Oil and Gas Company controlled by the Colombian government) signed an inter-administrative share purchase agreement ("Inter-Administrative SPA") with the Colombian government's MHCP pursuant to which it agreed to acquire 51.4% of the outstanding shares of ISA from the MHCP (the "Acquisition") for a purchase price of COP$14,236,814,025,000, or approximately US$3,672,992,823.94 (the "Acquisition Price") based on the COP/US$ market exchange rate of COP$3,876.08 to US$1.00 in effect on August 20, 2021, the date the Acquisition was consummated. Related to this transaction, Ecopetrol and MHCP were named as defendants in a public action filed on July 21, 2021 First Section of the Administrative Tribunal of Cundinamarca by Fundación Defensa de la Información Legal y Oportunidad – Dilo Colombia ("Fundación Dilo"). The complaint sought, among other things, to prevent the MHCP from selling its ownership stake in ISA to Ecopetrol unless a competitive bid was undertaken and ISA, although named in this action, is not a defendant.

&nbsp;&nbsp;&nbsp;&nbsp;● On March 26, 2021, the ISA Board of Directors approved the issuance of bonds in the international capital markets.

------

## Exhibit 99.4

**Exhibit 99.4**

**INTERCONEXIÓN ELÉCTRICA S.A.<br>E.S.P. AND SUBSIDIARIES**

**INTERIM CONDENSED<br>CONSOLIDATED FINANCIAL<br>STATEMENTS**

**AS OF JUNE 30, 2021 AND FOR THE SIX-<br>MONTH PERIODS ENDED JUNE 30, 2021 AND 2020**

------

#### INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES

#### INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
**As of June 30, 2021 and December 31, 2020**

Amounts expressed in millions of Colombian pesos

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | | |
|  |  | **June 30, 2021**<br>**(unaudited)** | **December 31, 2020**<br>|
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| Cash and cash equivalents |  | 4745206 | 3781713 |
| Trade receivables | 3 | 3892681 | 4084344 |
| Other financial assets |  | 886540 | 1086663 |
| Current tax receivables |  | 426452 | 260466 |
| Inventories |  | 117081 | 100645 |
| Other assets |  | 372692 | 394877 |
| Loans receivable from related parties | 3 | 138 | 77 |
| **Total current assets** |  | **10440790** | **9708785** |
| **Non-current assets** |  |  |  |
| Restricted cash |  | 322747 | 217646 |
| Investments in associates and joint ventures | 4 | 3732594 | 3124526 |
| Investments in financial instruments |  | 17325 | 17102 |
| Trade receivables | 3 | 23843897 | 18845842 |
| Other financial assets |  | 991 | 148 |
| Inventories |  | 65550 | 64521 |
| Property, plant, and equipment | 5 | 12578580 | 12179180 |
| Intangible assets | 6 | 9613978 | 8277346 |
| Other assets |  | 176565 | 128094 |
| Deferred tax assets and other tax receivable |  | 1830832 | 1613592 |
| Loans receivable from related parties | 3 | 337 | 17287 |
| **Total non-current assets** |  | **52183396** | **44485284** |
| **Total assets** |  | **62624186** | **54194069** |
| **LIABILITIES AND EQUITY** |  |  |  |
| **Current liabilities** |  |  |  |
| Loans and borrowings | 8 | 2772660 | 1266015 |
| Accounts payable | 7 | 2156878 | 996635 |
| Employee benefits | 11 | 117147 | 120979 |
| Current tax payable |  | 644816 | 376021 |
| Provisions |  | 418503 | 368985 |
| Other liabilities and deferred revenue |  | 329516 | 274406 |
| **Total current liabilities** |  | **6439520** | **3403041** |
| **Non-current liabilities** |  |  |  |
| Loans and borrowings | 8 | 23361383 | 21202820 |
| Accounts payable | 7 | 237355 | 222268 |
| Employee benefits | 11 | 844516 | 781100 |
| Provisions |  | 309852 | 247877 |
| Other liabilities and deferred revenue |  | 1415415 | 1541354 |
| Deferred tax liabilities and other tax payable |  | 8122193 | 6649416 |
| **Total non-current liabilities** |  | **34290714** | **30644835** |
| **Total liabilities** |  | **40730234** | **34047876** |
| **EQUITY** |  |  |  |
| Subscribed and paid-in capital |  | 36916 | 36916 |
| Additional paid-in capital |  | 1428128 | 1428128 |
| Reserves | 15.2 | 6861491 | 6241845 |
| Retained earnings |  | 4297750 | 5266872 |
| Other comprehensive income |  | 1288773 | 194014 |
| **Equity attributable to equity holders of the parent** |  | **13913058** | **13167775** |
| Non-controlling interests |  | 7980894 | 6978418 |
| **Total equity** |  | **21893952** | **20146193** |
| **Total equity and liabilities** |  | **62624186** | **54194069** |

---

See notes accompanying the interim condensed consolidated financial statements.

------

#### INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES

#### INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME (LOSS)
**For the six-month periods ended June 30, 2021 and 2020**

Amounts expressed in millions of Colombian pesos, except otherwise noted.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Six-month period ended June 30,** | **Six-month period ended June 30,** |
|  | **Note** | | |
|  |  | **2021**<br>**(unaudited)** | **2020**<br>**(unaudited)** |
| Revenues from contracts with customers | 12 | 5171052 | 4060666 |
| Operating costs |  | (1936198) | (1724930) |
| **Gross profit** |  | **3234854** | **2335736** |
| Administrative expenses |  | (331125) | (331673) |
| Effect of periodic tariff review |  | 36291 | 776975 |
| Share of profit of associates and joint ventures |  | 276147 | 131753 |
| Other income (expenses) |  | (9120) | 106890 |
| **Operating income** |  | **3207047** | **3019681** |
| Financial results |  | (826977) | (635813) |
| **Profit before taxes** |  | **2380070** | **2383868** |
| Income tax expense | 10 | (582390) | (586594) |
| **Net profit for the year** |  | **1797680** | **1797274** |
| **OTHER COMPREHENSIVE INCOME (LOSS)** |  |  |  |
| <u>Items that will not be reclassified to profit or loss in subsequent periods:</u> |  |  |  |
| Remeasurement losses from defined benefit plans, net of taxes |  | (32102) | (3074) |
|  |  | **(32102)** | **(3074)** |
| <u>Items that will be reclassified to profit or loss in subsequent periods:</u> |  |  |  |
| Unrealized gains (losses) from cash-flow hedges, net of taxes |  | 68205 | (133069) |
| Foreign currency translation gains (losses) |  | 1357281 | (2629815) |
|  |  | **1425486** | **(2762884)** |
| **Other comprehensive income (loss) for the year, net of tax** |  | **1393384** | **(2765958)** |
| **TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR, NET OF TAX** |  | **3191063** | **(968684)** |
| **Net profit attributable to:** |  |  |  |
| Non-controlling interest |  | 703852 | 803965 |
| Owners of parent |  | 1093828 | 993309 |
|  |  | **1797680** | **1797274** |
| **Comprehensive income (loss) attributable to:** |  |  |  |
| Owners of the parent company |  | 2188587 | 735225 |
| Non-controlling interest |  | 1002476 | (1703909) |
|  |  | **3191063** | **(968684)** |
| **Basic and diluted earnings per share (Colombian Pesos)** |  | **987** | **897** |

---

See notes accompanying the interim condensed consolidated financial statements.

------

#### INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES

#### INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
**For the six-month periods ended June 30, 2021 and 2020**

Amounts expressed in millions of Colombian pesos

---

| | | |
|:---|:---|:---|
|  | **Six-month periods ended**  | **Six-month periods ended**  |
|  | **June 30,** | **June 30,** |
|  | **2021**<br>**(Unaudited)** | **2020**<br>**(Unaudited)** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Collections from trade receivables | 5166040 | 4490024 |
| Payments to suppliers for the provision of goods and services | (1574049) | (1635146) |
| Payments to and on behalf of employees | (445987) | (378822) |
| Other payments | (192659) | (426698) |
|  | **2953345** | **2049358** |
| Income tax paid | (726706) | (487228) |
| **Net cash flows from operating activities** | **2226639** | **1562130** |
| **CASH FLOWS USED IN INVESTMENT ACTIVITIES** |  |  |
| Acquisition of subsidiaries, net of cash acquired (note 2.3) | (985372) | (7458) |
| Acquisition of interest in joint ventures | (23992) | (116007) |
| Purchase of properties, plant, and equipment | (305620) | (483225) |
| Purchase of intangible assets | (423248) | (259464) |
| Cash advances and loans granted to third parties | 186380 | 96438 |
| Dividends received | 116975 | 3637 |
| Interest received | 39878 | 380196 |
| Other cash inflows (outflows) | 34585 | (61682) |
| **Net cash used in investment activities** | **(1360414)** | **(447565)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Proceeds from bonds and loans | 2898937 | 2073272 |
| Repayment of bonds and loans | (1264723) | (438876) |
| Repayment of lease liabilities | (13684) | (8607) |
| Dividends paid | (910776) | (305881) |
| Interest paid | (473107) | (580391) |
| Other cash outflows | (94673) | (106345) |
| **Net cash from financing activities** | **141974** | **633172** |
| Effects of exchange rate variation in cash and cash equivalents | (44706) | (692999) |
| **Net increase in cash and cash equivalents** | **963493** | **1054738** |
| **Cash and cash equivalents at the beginning of the period** | **3781713** | **2487202** |
| **Cash and cash equivalents at the end of the period** | **4745206** | **3541940** |

---

See notes accompanying the interim condensed consolidated financial statements.

------

#### INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES

#### INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

#### For the six-month periods ended June 30, 2021 and 2020
Amounts expressed in millions of Colombian pesos

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | **Attributable to the equity holders of the parent** | | |
|  | Subscribed <br>and paid-in <br>capital | Additional <br>paid-in <br>capital | <br>Legal | <br>By tax <br>regulation | <br>For equity <br>strengthening | For rehabilitation <br>and replacement <br>of STN assets | <br>Total <br>reserves | <br>Retained <br>earnings | Other <br>comprehensive <br>income | <br>Non-<br>controlling <br>interest | <br>**Total** |
| **NOTE** |  |  |  |  |  |  | **15.2** | **15.1** |  |  |  |
| **Balance as of December 31, 2019** | **36916** | **1428128** | **18458** | **898802** | **4391328** | **37434** | **5346023** | **4851187** | **779923** | **8661038** | **21103214** |
| Transfers approved by the General Shareholders' Meeting |  |  |  |  | 895823 |  | 895823 | (895823) |  |  |  |
| Ordinary dividends at COP 675 per share, settled on 1.107.677.894 outstanding shares |  |  |  |  |  |  |  | (747683) |  |  | (747683) |
| Foreign currency translation |  |  |  |  |  |  |  |  | (121941) | (2507874) | (2629815) |
| Remeasurement gains (losses) from defined benefit pension plan and unrealized gains (losses) from cash-flow hedges |  |  |  |  |  |  |  |  | (136143) |  | (136143) |
| Net profit for the period |  |  |  |  |  |  |  | 993309 |  | 803965 | 1797274 |
| **Balance as of June 30, 2020** | **36916** | **1428128** | **18458** | **898802** | **5287151** | **37434** | **6241846** | **4200990** | **521839** | **6957129** | **19286849** |
| **Balance as of December 31, 2020** | **36916** | **1428128** | **18458** | **898802** | **5287151** | **37434** | **6241845** | **5266872** | **194014** | **6978418** | **20146193** |
| Appropriation approved by the General Shareholders' Meeting |  |  |  |  | 619646 |  | 619646 | (619646) |  |  |  |
| Ordinary dividends at COP 1.303 per share and per share settled on 1.107.677.894 outstanding shares |  |  |  |  |  |  |  | (1443304) |  |  | (1443304) |
| Foreign currency translation |  |  |  |  |  |  |  |  | 1058656 | 298624 | 1357280 |
| Remeasurement gains (losses) from defined benefit pension plan and unrealized gains (losses) from cash-flow hedges |  |  |  |  |  |  |  |  | 36103 |  | 36103 |
| Net profit for the period |  |  |  |  |  |  |  | 1093828 |  | 703852 | 1797680 |
| **Balance as of June 30, 2021** (unaudited) | **36916** | **1428128** | **18458** | **898802** | **5906797** | **37434** | **6861491** | **4297750** | **1288773** | **7980894** | **21893952** |

---

See notes accompanying to interim condensed consolidated financial statements.

------

#### INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. AND SUBSIDIARIES

#### NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### AS OF JUNE 30, 2021 AND 2020
(Amounts expressed in millions of Colombian pesos, except otherwise noted)

**1.**General information

Interconexión Eléctrica S.A. E.S.P. ("ISA" or the "Company"), with headquarters in Medellín, was incorporated as joint stock company by public deed No. 3057, issued by the 8<sup>th</sup> Notary Office of the Notarial Circuit of Bogotá on September 14, 1967.

On November 22, 1996, by public deed No. 746 issued by the Sole Notary Office of Sabaneta, ISA changed its legal nature to Mixed Utility Company, incorporated as a Joint Venture of commercial and national nature, linked to the Ministry of Mines and Energy, with indefinite term, and subject to the legal regime provided for by Law 142 of 1994, a situation that materialized on January 15, 1997 with the entry of private contributions.

In accordance with the considerations of the Constitutional Court in its ruling C-736 dated September 19, 2007, ISA has a special legal nature by being defined as a Mixed Utility Company, decentralized by services, which is part of the executive branch of the public power with special and legal regime of private law.

Headquarters are in Medellín, calle 12 Sur # 18-168.

The principal activities of ISA and its subsidiaries (collectively, "The Group") are:

◾ The provision of the Electricity Transmission services.

◾ The development of information and telecommunication technology systems, activities, and services.

◾ The direct or indirect participation in activities and services related to the transport of other energies.

◾ The provision of technical and non-technical services related to its principal activities.

◾ The development of infrastructure projects and their commercial operation.

◾ The investment in other companies.

◾ Design, construction, operation, and maintenance of road infrastructure.

**2.** **Basis of Presentation and Changes to the Group´s Accounting Policies**

**2.1** **Basis of presentation**

The Group prepares its consolidated financial statements in accordance with Financial Information Standards Accepted in Colombia ("NCIF"), which are compiled and updated through Decree 2270 of 2019 based on Decree 2420 of 2015 and subsequent modifications and other legal provisions applicable to entities supervised and/or controlled by the Colombian Superintendence of Corporations and General Accounting Office ("Contaduría General de la Nación"). The Financial Information Standards Accepted in Colombia correspond to International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

The interim condensed consolidated financial statements for the six months ended 30 June 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2020.

The Group´s interim condensed consolidated financial statements prepared under Financial Information Standards Accepted in Colombia do not present any significant differences as compared with International Financial Reporting Standards issued by the IASB.

The interim condensed consolidated financial statements were approved and authorized for issuance by the Board of Directors on October 20, 2021.

**2.2**New standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2020, except for

------

the adoption of new standards effective as of 1 January 2021. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

**2.3**Business combination

**2.3.1**Piratininga - Bandeirantes Transmissora de Energia S.A. (PBTE) business combination.

The Group entered into an agreement with Wire Fundo de Investimento em Participações Multiestratégia and Fundo de Investimento em Participações em Infraestrutura Kavom for the acquisition of 100% of the shares representing the capital stock of SF Energia Participações S.A. which in turn owns 88.88% of the shares of Piratininga - Bandeirantes Transmissora de Energia S.A. (PBTE). The final acquisition price was COP 1 billion (BRL 1,571,065 thousand) and the transfer of control occurred on March 2, 2021.

PBTE operates a 30 km underground transmission line in the city of São Paulo, which started operations in April 2020 connecting CTEEP's Piratininga II and Bandeirantes substations. The transaction was approved by the Administrative Council for Economic Defense (CADE) on January 19, 2021 and consented by the National Electricity Agency (ANEEL) on February 1, 2021.

The fair value of assets acquired, liabilities incurred, and the determination of concession intangible assets were determined based on a preliminary valuation exercise prepared by an independent consulting firm. Fair value of identifiable assets and liabilities as of the acquisition date are detailed below:

---

| | |
|:---|:---|
| **Assets and liabilities** |  |
| Cash and cash equivalents | 44274 |
| Trade receivable (concession asset) | 1371229 |
| Concession of intangible assets in the parent company | 43891 |
| Recoverable taxes | 7996 |
| Other assets | 2167 |
| Concession intangible assets | 323188 |
| **Total assets** | **1792745** |
| Loan and borrowings | 244809 |
| Suppliers | 1658 |
| Taxes payable | 3184 |
| PIS and COFINS payable | 125804 |
| Other current liabilities | 2515 |
| Deferred tax | 385128 |
| **Total liabilities** | **763098** |
| **Total net assets at fair value** | **1029647** |
| Value paid | (1029647) |

---

Below are the net flows of cash and cash equivalents:

---

| | |
|:---|:---|
|  | **2021** |
| Cash and cash equivalent acquired (included in cash flows from investing activities) | 44274 |
| (-) Costs related to the acquisition (included in cash flows from operating activities) | (5145) |

---

------

#### Effect of the acquisition
The impact on the Group's income statement between the acquisition date and June 30, 2021 is shown below, as well as the impact of the acquisition had it occurred on January 1, 2021.

---

| | | |
|:---|:---|:---|
| **From 02.03.2021 to 30.06.2021 (Unaudited)** |  | **COP** |
| Revenues |  | 58,910 |
| Profit before taxes |  | 53,523 |
| **From 01.01.2021 to 30.06.2021 (Unaudited)** |  |  |
| Revenues |  | 86,331 |
| Profit before taxes |  | 77,099 |

---

**2.4**Other significant transactions

- On March 31, 2021, the contract for the Ruta del Maule concession was terminated.

**3.**Trade receivables, Other financial assets and Loans receivable from related parties

3.1Trade receivables and loans receivable from related parties

---

| | | |
|:---|:---|:---|
|  | **June 2021** <br>**(Unaudited)** | **December** <br>**2020** |
| Clients and concessions <sup>(See note 13)</sup> | 25513474 | 21066796 |
| Accounts receivable from the State of São Paulo<sup>(1)</sup> | 1790620 | 1516050 |
| Other receivables | 792277 | 669290 |
| VAT receivable (MOP) | 57383 | 51175 |
| Loans to employees | 51675 | 46588 |
| Interest receivable | 235 | 143 |
| Loans to related parties | 475 | 17365 |
| Dividends receivable | 10764 | 9468 |
|  | **28216903** | **23376875** |
| Less – impairment | (479850) | (429325) |
| **Total accounts receivable** | **27737053** | **22947550** |
| Current | 3892819 | 4084421 |
| Non-current | 23844234 | 18863129 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) Accounts receivable of ISA CTEEP from the State of S ã o Paulo for labor benefits regulated by Law 4819 of 1958. As of June 30, 2021 this accounts receivable to COP 1,790,620 (December 2020: COP 1,516,050), and impairment amounts to COP 387,710 (December 2020: COP 340,994) for a net amount of 1,402,910 (December 2020: COP 1,175,056)

There are no restrictions over accounts receivable in any significant amount. The Group does not have individual clients representing 10% or more of its revenues for the six-month periods ended June 30, 2021 and 2020.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**4.**INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The composition of investments in joint ventures and associates, as of June 30, 2021, and December 2020, is detailed below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investments with joint control** | **Main activity** | **Country** | **Ownership %** | **Ownership %** | **Balances as of June 30,** | **Balances as** |
|  |  |  | **2021** | **2022** | **2021 (unaudited)** | **of December 31, 2020** |
| INTERLIGAÇÃO ELÉTRICA DO MADEIRA | Electricity transmission | Brazil | 51.00 | 51.00 | 1341872 | 1089928 |
| TRANSMISSORA ALIANÇA DE ENERGIA ELÉTRICA | Electricity transmission | Brazil | 14.88 | 14.88 | 929601 | 783833 |
| INTERLIGAÇÃO ELÉTRICA PARAGUAÇU | Electricity transmission | Brazil | 50.00 | 50.00 | 308010 | 253652 |
| INTERLIGAÇÃO ELÉTRICA GARANHUNS | Electricity transmission | Brazil | 51.00 | 51.00 | 307168 | 249515 |
| INTERLIGAÇÃO ELÉTRICA AIMORÉS | Electricity transmission | Brazil | 50.00 | 50.00 | 205130 | 168019 |
| INTERLIGAÇÃO ELÉTRICA IVAÍ | Electricity transmission | Brazil | 50.00 | 50.00 | 184373 | 126636 |
| INTERCONEXIÓN ELÉCTRICA COLOMBIA PANAMÁ-PANAMÁ | Electricity transmission | Panama | 50.00 | 50.00 | 8266 | 1140 |
| DERIVEX | Derivative financial instruments | Colombia | 40.35 | 40.35 | 435 | 581 |
| PARQUES DEL RÍO | Roads | Colombia | 33.00 | 33.00 | 50 | 55 |
| INTERCONEXIÓN ELÉCTRICA COLOMBIA PANAMÁ COLOMBIA | Electricity transmission | Colombia | 1.17 | 1.17 | 3 | 3 |
| TRANSNEXA <sup>(1)</sup> | Telecommunications Transmission | Ecuador | 50.00 | 50.00 |  |  |
| **Total investments in joint ventures** |  |  |  |  | **3284908** | **2673362** |
| **Investments in associates** |  |  |  |  |  |  |
| ATP Tower Holdings | Telecommunications Transmission | United States | 24.69 | 24.69 | 447686 | 451164 |
| **Total investments in associates** | **Total investments in associates** |  |  |  | **447686** | **451164** |
| **Total investments in associates and joint ventures** | **Total investments in associates and joint ventures** |  |  |  | **3732594** | **3124526** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) TRANSNEXA is currently undergoing a liquidation process; the investment is 100% impaired.

------

**4.1** **Financial information on investments in associates and joint ventures**

The summarized financial information on the Group's investments in associates and material joint ventures as of June 30, 2021 and December 31, 2020 and for the six-month periods ended June 30, 2021 and 2020 is presented below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Statement of financial position** | **Current**<br>**assets** | **Non-current**<br>**assets** | **Current**<br>**liabilities** | **Non-current**<br>**liabilities** | **Cash and cash**<br>**equivalents** |
| **June 30, 2021** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
| Transmissora Aliança de Energia Elétrica | 1676861 | 8772329 | 747287 | 4911425 | 441037 |
| Interligação Elétrica do Madeira | 572577 | 4107305 | 244901 | 2133367 | 414 |
| Interligação Elétrica Paraguaçu | 7644 | 208141 | 38976 | 21534 | 11 |
| Interligação Elétrica Garanhuns | 93715 | 799417 | 42215 | 278677 | 2831 |
| Interligação Elétrica Aimorés | 8565 | 537560 | 2952 | 133483 | 8269 |
| Interligação Elétrica Ivaí | 451829 | 1810289 | 138005 | 1755782 | 444655 |
| ATP Tower Holding | 582091 | 3274995 | 186659 | 1857574 | 470947 |
| Other | 18357 | 2033 | 228 | 2131 | 17621 |
| **Total** | **3411639** | **19512069** | **1401223** | **11093973** | **1385785** |
| **December 31, 2020** |  |  |  |  |  |
| Transmissora Aliança de Energia Elétrica | 1262053 | 7026001 | 408655 | 4022859 | 439203 |
| Interligação Elétrica do Madeira | 562720 | 3831078 | 254024 | 2004885 | 241292 |
| Interligação Elétrica Paraguaçu | 9553 | 680137 | 13778 | 169111 | 9337 |
| Interligação Elétrica Garanhuns | 74784 | 682136 | 36100 | 222498 | 9640 |
| Interligação Elétrica Aimorés | 10785 | 443117 | 10597 | 107676 | 10573 |
| Interligação Elétrica Ivaí | 689885 | 1053577 | 139562 | 1351004 | 686641 |
| ATP Tower Holding | 242890 | 3122824 | 184567 | 1354210 | 151496 |
| Other | 11203 | 10256 | 2353 |  | 10459 |
| **Total** | **2863873** | **16849126** | **1049636** | **9232243** | **1558641** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Comprehensive income statement** | | | | | |
|  | **Revenues**<br>| **Comprehensive** <br>**income** | **Depreciation and** <br>**Amortization<br>expenses** | **Interest** <br>**expense** | **Tax expense**<br>**(benefit)** |
| **Six-month period ended June 30, 2021** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
| Transmissora Aliança de Energia Elétrica | 113478 | 843987 | (6904) | (69548) | (157237) |
| Interligação Elétrica do Madeira | 516950 | 180372 | (3609) | (73883) | (168) |
| Interligação Elétrica Paraguaçu | 71905 | 19804 | (80) |  | (1688) |
| Interligação Elétrica Garanhuns | 64289 | 41250 | (152) | (11240) | (4307) |
| Interligação Elétrica Aimorés | 30123 | 13685 | (34) | (2) | (7024) |
| Interligação Elétrica Ivaí | 522119 | 72404 | (34) | (82496) | (37287) |
| ATP Tower Holding | 156832 | (89681) | (119098) | (49433) | (2789) |
| Other | 54 | (4364) | (9) | (55) |  |
| **Total** | **1475750** | **1077457** | **(129920)** | **(286657)** | **(210500)** |
|  | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** | **(unaudited)** |
| **Six-month period ended June 30, 2020** |  |  |  |  |  |
| Transmissora Aliança de Energia Elétrica | 14176 | 300233 | (5354) | (93612) | (60052) |
| Interligação Elétrica do Madeira | 211231 | (64393) | (1084) | (50450) | (36753) |
| Interligação Elétrica Paraguaçu | 164289 | 7908 | (44) | (4) | (4289) |
| Interligação Elétrica Garanhuns | 211231 | 20526 | (1084) | (50450) | (36753) |
| Interligação Elétrica Aimorés | 7289 | 4808 |  | (2627) |  |
| Interligação Elétrica Ivaí | 146256 | (17325) | (38) | (36864) | (2582) |
| ATP Tower Holding | 128127 | (56356) | (89064) | (47206) | (3949) |
| Other | 50 | (1276) |  | (72) | (347) |
| **Total** | **882649** | **194125** | **(96668)** | **(281285)** | **(144725)** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**5.**PROPERTY, PLANT AND EQUIPMENT

The following is the balance of property, plant, and equipment:

---

| | | |
|:---|:---|:---|
|  | **June 2021**<br>**(Unaudited)** | **December** <br>**2020** |
| Grids, lines, and cables | 13669413 | 12913087 |
| Plants and ducts | 6823723 | 6723088 |
| Buildings | 633762 | 609701 |
| Lands | 255989 | 255010 |
| Machinery and equipment | 622695 | 593592 |
| Communication and computing equipment | 220636 | 208523 |
| Transportation, traction, and lifting equipment | 81695 | 68104 |
| Furniture, chattels, and office equipment | 53371 | 50586 |
| **Subtotal property, plant, and equipment** | **22361284** | **21421691** |
| &nbsp;&nbsp;Less – accumulated depreciation | (11459683) | (11548867) |
| &nbsp;&nbsp;Less – impairment |  | (20) |
| **Total property, plant and equipment in operation** | **10901601** | **9872804** |
| &nbsp;&nbsp;Construction in progress | 1676979 | 2306376 |
| **Total property, plant, and equipment** | **12578580** | **12179180** |
| Total property, plant, and equipment | 12347611 | 11954611 |
| Total finance lease assets | 230969 | 224569 |

---

**5.1**Movement of property, plant, and equipment

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Balances as**<br>**of December**<br>**2020** | <br>**Additions**<br>| <br>**Transfers**<br>| <br>**Sales and** <br>**derecognitions** | <br>**Depreciation**<br>| <br>**Exchange** <br>**difference** | **Balance as of** <br>**June, 2021** <br>**(unaudited)** |
| Grids, lines, and cables | 5497091 | 144495 | 695843 | (468) | (93457) | 243371 | 6486875 |
| Plants and ducts | 3354091 | 20956 | (3128) | (104) | (86767) | 95356 | 3380404 |
| Buildings | 475180 | 9940 |  | (440) | (15668) | 12604 | 481616 |
| Lands | 255010 | 68 |  |  |  | 911 | 255989 |
| Machinery and equipment | 158164 | 12475 | (1546) | (355) | (15895) | 8258 | 161101 |
| Communication and computing equipment | 90485 | 8570 |  | (732) | (15724) | 4858 | 87457 |
| Transportation, traction, and lifting equipment | 22297 | 9546 |  | (10) | (5816) | 2121 | 28138 |
| Furniture, chattels, and office equipment | 20486 | 682 |  | (14) | (2062) | 925 | 20017 |
| Work in progress <sup>(1)</sup> | 2306376 | 36881 | (691169) |  |  | 24895 | 1676983 |
| **Total** | **12179180** | **243613** | **—** | **(2123)** | **(235389)** | **393299** | **12578580** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) The balance of work in progress mainly includes:

● In ISA INTERCHILE COP 10,264 related to expansion works in Nueva Maitencillo and Nueva Pan de Az ú car, 220 kV substations.

● In ISA:

- Costa Caribe 500 kV Interconnection project for COP 344,557.

- UPME 03-2014 230/500kV Northwestern Interconnection Project for COP 1,331,318.

- UPME 09-2016 Copey – Cuestecitas 500 kV and Copey – Fundación 220 kV for COP 206,258.

The Group currently holds insurance policies for combined material damages, terrorism, and consequential losses, intended to ensure the loss and damage of its fixed assets, except transmission lines and towers.

As of June 30, 2021, and December 31, 2020, there are no impairment indicators that could imply that the book value of property, plant, and equipment will not be recovered.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**6.**INTANGIBLE ASSETS

---

| | | |
|:---|:---|:---|
|  | **June 2021**<br>**(Unaudited)** | **December** <br>**2020** |
| Software | 212059 | 193640 |
| Licenses | 95543 | 79555 |
| Easements | 628548 | 538707 |
| Concessions <sup>(1)</sup> | 10918473 | 9141009 |
| Rights-of-use | 1089146 | 1235054 |
| Customer list | 52402 | 46088 |
| Goodwill and brands | 1261302 | 1097921 |
| **Subtotal intangibles** | **14257473** | **12331974** |
| Less – accumulated amortization | (4643495) | (4054628) |
| **Total intangibles** | **9613978** | **8277346** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) It corresponds mainly to concessions in Peru, Bolivia, and Colombia, which are treated as intangible assets according to their characteristics. See Note 13.

---

| | | |
|:---|:---|:---|
|  | **June 2021** <br>**(Unaudited)** | **December** <br>**2020** |
| Concessions | 10918473 | 9141009 |
| Less – intangible amortization | (3154354) | (2740928) |
| **Total concessions** | **7764119** | **6400081** |

---

**6.1**Intangible assets movement

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Balance as**<br>**of December**<br>**2020** | <br>**Additions**<br>| **Business** <br>**combinations**<br>| **Sales and** <br>**derecognitions**<br>| <br>**Amortizations**<br>| **Exchange**<br>**rate effect**<br>| **Balance as of**<br>**June 2021** <br>**(unaudited)** |
| Software | 104283 | 18207 |  | (2907) | (13218) | 1511 | 107876 |
| Licenses | 18288 | 10421 |  |  | (4970) | 1134 | 24873 |
| Easements | 538707 | 54410 |  |  |  | 35431 | 628548 |
| Concessions and rights-of-use | 7329515 | 364378 | 323188 |  | (165298) | 658827 | 8510610 |
| Customer list | 18269 |  |  | (73) | (1904) | 2346 | 18638 |
| Goodwill and brands | 268284 |  |  |  | (2387) | 57536 | 323433 |
| **Total** | **8277346** | **447416** | **323188** | **(2980)** | **(187777)** | **756785** | **9613978** |

---

**7.**ACCOUNTS PAYABLE

The increase in accounts payable as of June 30, 2021 was due to the recognition of dividends payable in ISA of COP 1,443,304 (2020: COP 0).

**8.**LOANS AND BORROWINGS

---

| | | |
|:---|:---|:---|
|  | **June 2021** <br>**(Unaudited)** | **December 2020**<br>|
| Bonds | 16724826 | 14194433 |
| Loans | 9409217 | 8274402 |
|  | **26134043** | **22468835** |
| Current | 2772660 | 1266015 |
| Non-current | 23361383 | 21202820 |
| **Total financial liabilities** | **26134043** | **22468835** |

---

During the periods ended June 30, 2021 and 2020, the Group was in compliance with all financial and non-financial covenants.

------

During the six-month period ended June 30, 2021 the Group issued bonds for a total of COP 1,472,851 (June 30, 2020: COP 38,857) and obtained loans for a total of COP 1,426,086 (June 30, 2020: COP 2,034,415)

**8.1**Derivative financial instruments

The fair value of derivative financial instruments used in hedging operations related to bonds and bank loans are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Derivative** | **Underlying** | **June 2021** | **December 2020** |
| **Company** |  |  | (Unaudited) |  |
| ISA Interchile <sup>(1)</sup> | Interest rate swap | Financial obligations | 209793 | 285452 |
| ISA REP | Cross currency swap | Bonds | 95496 | 76739 |
| Ruta del Maipo | Cross currency swap | Bonds | 60705 | 81112 |
| Intervial Chile | Cross currency swap | Financial obligations | 5699 |  |
| **Total derivative financial instruments** |  |  | **371693** | **443303** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) The total nominal value of this swap is USD 716,653 at a fixed interest rate of 2,51%. As of June 30, 2021, the fair value for the swap is USD 55,845, (2020: USD 83,162).

**9.** **FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES**

As of June 30, 2021, the carrying value of financial assets and liabilities measured at amortized cost present no significant difference to their fair values. Fair value is presented in the following table, based on the categories of financial assets and liabilities, compared with its current and non-current carrying value included in the financial statements.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2021 (unaudited)** | **June 30, 2021 (unaudited)** | **December 31, 2020** | **December 31, 2020** |
| **Financial assets** | | | | |
|  | **Amortized**<br>**cost** | **At Fair**<br>**value** | **Amortized**<br>**cost** | **At Fair**<br>**value** |
| Accounts receivable | 2464327 | 1428492 | 2348684 | 1735737 |
| Other financial assets | 336093 | 550447 | 441664 | 644999 |
| **Total current** | **2800420** | **1978939** | **2790348** | **2380736** |
| Restricted cash |  | 322747 |  | 217646 |
| Investments in financial instruments |  | 17325 |  | 17102 |
| Accounts receivable | 10365024 | 13479210 | 9539863 | 9323266 |
| Other financial assets |  | 992 |  | 148 |
| **Total non-current** | **10365024** | **13820274** | **9539863** | **9558162** |
| &nbsp;&nbsp;**Total** | **13165444** | **15799213** | **12330211** | **11938898** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2021 (unaudited)** | **June 30, 2021 (unaudited)** | **December 31, 2020** | **December 31, 2020** |
| **Financial liabilities** | **Amortized cost** | **At Fair value** | **Amortized cost** | **At Fair value** |
| Financial liabilities and bonds | 2772559 |  | 1265875 |  |
| Derivative instruments |  | 102 |  | 140 |
| Accounts payable | 2156878 |  | 996635 |  |
| **Total current** | **4929437** | **102** | **2262510** | **140** |
| Financial liabilities and bonds | 22989791 |  | 20759657 |  |
| Derivative instruments |  | 371592 |  | 443163 |
| Accounts payable | 237355 |  | 222268 |  |
| **Total non-current** | **23227146** | **371592** | **20981925** | **443163** |
| &nbsp;&nbsp;**Total** | **28156583** | **371694** | **23244435** | **443303** |

---

------

Fair value hierarchy of financial assets and liabilities measured at fair value as of June 30, 2021, and December 31, 2020, are shown below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2021 (unaudited)** | **June 30, 2021 (unaudited)** | **June 30, 2021 (unaudited)** | **December 31, 2020** | **December 31, 2020** | **December 31, 2020** |
|  | **Carrying** | **Fair value** | **Fair value** | **Carrying** | **Fair value** | **Fair value** |
|  | **Value** | **Level I** | **Level II** | **Value** | **Level I** | **Level II** |
| **Financial assets** |  |  |  |  |  |  |
| Accounts receivable | 14907702 |  | 14907702 | 11059003 |  | 11059003 |
| Other financial assets | 551439 | 550447 | 992 | 645148 | 644999 | 149 |
| Restricted cash | 322747 | 322747 |  | 217646 | 217646 |  |
| Investments | 17325 |  | 17325 | 17101 |  | 17101 |
| **Financial assets at fair value** | **15799213** | **873194** | **14926019** | **11938898** | **862645** | **11076253** |
| **Financial liabilities** |  |  |  |  |  |  |
| Derivative financial instruments | 371693 |  | 371693 | 443303 |  | 443303 |
| **Financial liabilities at fair value** | **371693** | **—** | **371693** | **443303** | **—** | **443303** |
| **Net assets at fair value** | **15427520** | **873194** | **14554326** | **11495595** | **862645** | **10632950** |
| **Net assets at fair value** |  |  |  |  |  |  |
| Current | 1978837 | 550447 | 1428390 | 2380595 | 644999 | 1735596 |
| Non-current | 13448683 | 322747 | 13125936 | 9115000 | 217646 | 8897354 |
|  | **15427520** | **873194** | **14554326** | **11495595** | **862645** | **10632950** |

---

**10.**INCOME TAX

The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the interim condensed consolidated statement of profit or loss are:

---

| | | |
|:---|:---|:---|
|  | **June 2021**<br>**(Unaudited)** | **June 2020**<br>**(Unaudited)** |
| Current tax expense | 443006 | 286288 |
| Deferred tax expense | 139384 | 300306 |
| **Total income tax expense** | **582390** | **586594** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**11.**EMPLOYEE BENEFITS

---

| | | |
|:---|:---|:---|
|  | **June 2021**<br>**(Unaudited)** | **Dcember**<br>**2020** |
| **Post-employment benefits** |  |  |
| Retirement pensions | 542795 | 488508 |
| Prepaid medical assistance plans | 252423 | 247022 |
| Education allowance | 35454 | 33779 |
| Electricity allowance | 6885 | 6738 |
| Pension contribution and social security allowance | 5575 | 5455 |
| Plan assets | (10963) | (11244) |
|  | **832169** | **770258** |
| **Non-current benefits** |  |  |
| Seniority and quinquennium bonus | 19782 | 18672 |
| Severance | 2665 | 2586 |
| Interest payable | 1039 | 949 |
|  | **23486** | **22207** |
| **Termination benefits** |  |  |
| Termination benefits | 4932 | 4726 |
| **Total actuarial calculation** | **860587** | **797191** |
| Total employee benefits - non-current | 844516 | 781100 |
| Total employee benefits - current (1) | 16071 | 16091 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) The current liability for employee in the statement of financial position also includes vacation, bonuses and other short-term employee benefits

**12.** **OPERATING SEGMENTS**

The following segment information is reported based on the information used by the Board of Directors as the top body to make strategic and operational decisions. The performance of the segments is reviewed based primarily on an analysis of income, costs, expenses and overall results for the period generated by each segment which are regularly monitored.

------

The information disclosed in each segment is presented net of transactions between the Group companies.

● **Statement of comprehensive income** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Electricity**<br>**Transmission**<br>**business** | <br>**Road**<br>**concessions** | **IT and**<br>**Telecommunications**<br>**business** | **Total**<br>**Operating**<br>**segments** |
| **Six-month period ended June 2021** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Revenues from contracts with customers | 3949030 | 1020099 | 201923 | 5171052 |
| Operating costs | (1329664) | (484936) | (121598) | (1936198) |
| **Gross profit** | **2619366** | **535163** | **80325** | **3234854** |
| Administrative expenses | (249786) | (33279) | (48060) | (331125) |
| Effect of periodic tariff review | 36291 |  |  | 36291 |
| Share of profit of associates and joint ventures | 298297 | (3) | (22147) | 276147 |
| Other income (expenses) | 361 | (16202) | 6721 | (9120) |
| **Operating income** | **2704529** | **485679** | **16839** | **3207047** |
| Financial results | (477811) | (334076) | (15090) | (826977) |
| **Profit before taxes** | **2226718** | **151603** | **1749** | **2380070** |
| Income tax expense | (561943) | (11094) | (9353) | (582390) |
| **Net iprofit for the year** | **1664775** | **140509** | **(7604)** | **1797680** |
| Non-controlling interest | 703734 | 15 | 103 | 703852 |
| **Net profit attributable to Owners of parent** | **961041** | **140494** | **7707** | **1093828** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Electricity**<br>**Transmission**<br>**business** | <br>**Road**<br>**concessions** | **IT and**<br>**Telecommunications**<br>**business** | **Total**<br>**Operating**<br>**segments** |
| **Six-month period ended June 2020** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Revenues from contracts with customers | 3144986 | 726917 | 188763 | 4060666 |
| Operating costs | (1221779) | (373915) | (129236) | (1724930) |
| **Gross profit** | **1923207** | **353002** | **59527** | **2335736** |
| Administrative expenses | (257977) | (29027) | (44669) | (331673) |
| Effect of periodic tariff review | 776975 |  |  | 776975 |
| Share of profit of associates and joint ventures | 145674 | (5) | (13917) | 131752 |
| Other income (expenses) | 113289 | (11011) | 4613 | 106891 |
| **Operating income** | **2701168** | **312959** | **5554** | **3019681** |
| Financial results | (424718) | (192951) | (18144) | (635813) |
| **Profit before taxes** | **2276450** | **120008** | **(12590)** | **2383868** |
| Income tax expense | (563348) | (17588) | (5658) | (586594) |
| **Net profit for the year** | **1713102** | **102420** | **(18248)** | **1797274** |
| Non-controlling interest | 801493 | 2508 | (36) | 803964 |
| **Net profit attributable to Owners of parent** | **911609** | **99912** | **(18212)** | **993309** |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**·** **Statement of financial position** 

#### Assets per business

---

| | | |
|:---|:---|:---|
|  | **JUNE 2021**<br>**(unaudited)** | **DECEMBER** <br>**2020** |
| Electricity Transmission | 47971062 | 40522417 |
| Road Concessions | 13226361 | 12328234 |
| Information and Telecommunication Technologies | 1426763 | 1343418 |
| **Total assets per business** | **62624186** | **54194069** |

---

#### Liabilities per business

---

| | | |
|:---|:---|:---|
|  | **JUNE 2021**<br>**(unaudited)** | **DECEMBER 2020**<br>|
| Electricity Transmission | 30265567 | 24269682 |
| Road Concessions | 9592048 | 8966132 |
| Information and Telecommunication Technologies | 872619 | 812062 |
| **Total liabilities per business** | **40730234** | **34047876** |

---

In March 2021, the Group´s Board of Directors authorized management to start the process for the future sale of its subsidiary Internexa. However, considering that such process also require the approval of the Colombian Ministry of Finance and Public Credit ("MHCP") under law 226/1995, and the change in control of Grupo ISA as disclosed in Note 16, such process is contingent upon other approvals to be executed. Internexa forms the Telecommunication segment of the Group and these financial statements were not adjusted to present the results of this segment as discontinued operations in the statement of income or the corresponding segment net assets as available for sale assets in the statement of financial position.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**13.**CONCESSIONS

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Business** | **Concessionaire** | **Country** | **Asset** | **Asset** | **Revenues** | **Revenues** |
|  |  |  | **June 2021**<br>**(Unaudited)** | **December 2020**<br>| **June 2021**<br>**(Unaudited)** | **June 2020**<br>**(Unaudited)** |
| **Intangible asset (Note 6):** |  |  |  |  |  |  |
| Electricity transmission | CONSORCIO TRANSMANTARO | Peru | 5407400 | 4759017 | 622113 | 550318 |
|  | ISA REP | Peru | 1536726 | 1442082 | 292322 | 314764 |
|  | ISA PERÚ | Peru | 771595 | 153195 | 56569 | 33405 |
| **Subtotal concessions in Peru:** |  |  | **7715721** | **6354294** | **971004** | **898487** |
| Electricity transmission | ISA BOLIVIA | Bolivia | 45352 | 42400 | 12298 | 44703 |
| Electricity transmission | SISTEMAS INTELIGENTES EN RED | Colombia | 3046 | 3387 | 6643 | 5930 |
| **Total concessions recognized as intangible assets:** |  |  | **7764119** | **6400081** | **989945** | **949120** |
| **Contract Asset (Note 3):** |  |  |  |  |  |  |
| Electricity transmission | ISA CTEEP | Brazil | 10179421 | 8592807 | 1233738 | 1283211 |
|  | INTERLIGAÇÃO ELÉTRICA PINHEIROS | Brazil | 461122 | 387562 | 36704 | 27776 |
|  | INTERLIGAÇÃO ELÉTRICA AGUAPEÍ | Brazil | 463029 | 347666 | 67099 | 120202 |
|  | INTERLIGAÇÃO ELÉTRICA TIBAGI | Brazil | 145186 | 112494 | 22488 | 4933 |
|  | INTERLIGAÇÃO ELÉTRICA ITAPURA | Brazil | 134163 | 101022 | 20271 | 26333 |
|  | INTERLIGAÇÃO ELÉTRICA ITAQUERÊ | Brazil | 425157 | 359778 | 29496 | 18162 |
|  | INTERLIGAÇÃO ELÉTRICA ITAÚNES | Brazil | 260896 | 191653 | 38532 | 38682 |
|  | INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI | Brazil | 417460 | 350326 | 34058 | 19792 |
|  | INTERLIGAÇÃO ELÉTRICA DE MINAS GERAIS | Brazil | 100225 | 77340 | 18146 | 5920 |
|  | EVRECY PARTICIPAÇÕES | Brazil | 55734 | 39824 | 12348 | 3667 |
|  | INTERLIGAÇÃO ELÉTRICA NORTE E NORDESTE | Brazil | 342898 | 294633 | 26078 | 17841 |
|  | INTERLIGAÇÃO ELÉTRICA SUL | Brazil | 157054 | 131190 | 13363 | (841) |
|  | INTERLIGAÇÃO ELÉTRICA BIGUAÇU | Brazil | 162330 | 72708 | 71406 |  |
|  | INTERLIGAÇÃO ELÉTRICA RIACHO GRANDE | Brazil | 6216 |  | 5571 |  |
|  | PIRATININGA BANDEIRANTES TRANSMISSORA DE ENERGÍA | Brazil | 1596812 |  | 74930 |  |
| **Total concessions recognized as contract assets:** |  |  | **14907703** | **11059003** | **1704228** | **1565678** |
| **Financial asset (Note 3):** |  |  |  |  |  |  |
| Electricity transmission | ISA CTEEP | Brazil | 42256 | 97033 | 313100 | 338300 |
|  | INTERLIGAÇÃO ELÉTRICA PINHEIROS | Brazil | 184 | 4755 | 1834 | 3928 |
|  | INTERLIGAÇÃO ELÉTRICA AGUAPEÍ | Brazil | 2341 |  | 1777 |  |
|  | INTERLIGAÇÃO ELÉTRICA TIBAGI | Brazil | 1311 |  | 1785 |  |
|  | INTERLIGAÇÃO ELÉTRICA ITAPURA | Brazil | 549 | 778 | 894 | 1073 |
|  | INTERLIGAÇÃO ELÉTRICA ITAQUERÊ | Brazil | 2893 | 3735 | 2572 |  |
|  | INTERLIGAÇÃO ELÉTRICA ITAÚNES | Brazil |  |  |  |  |
|  | INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI | Brazil | 3300 | 3424 | 2642 | 2962 |
|  | INTERLIGAÇÃO ELÉTRICA DE MINAS GERAIS | Brazil | 1015 | 1332 | 504 | 1110 |
|  | EVRECY PARTICIPAÇÕES | Brazil | 864 | 662 | 1393 | 1711 |
|  | INTERLIGAÇÃO ELÉTRICA NORTE E NORDESTE | Brazil | 2409 | 5418 | (652) | (7337) |
|  | INTERLIGAÇÃO ELÉTRICA SUL | Brazil | 1179 | 1651 | 477 | 841 |
|  | INTERLIGAÇÃO ELÉTRICA BIGUAÇU | Brazil |  |  |  |  |
|  | PIRATININGA BANDEIRANTES TRANSMISSORA DE ENERGÍA | Brazil | 13973 |  | 3890 |  |
| **Subtotal concessions in Brazil:** |  |  | **72274** | **118788** | **330216** | **349925** |
| Road Concessions | RUTA DEL MAIPO | Chile | 6656939 | 6102452 | 502319 | 392792 |
|  | RUTA DEL MAULE | Chile |  | 15149 | 22600 | 160090 |
|  | RUTA DE LA ARAUCANÍA | Chile | 656041 | 694643 | 67016 | 60186 |
|  | RUTA DEL BOSQUE | Chile |  |  | 108799 | 28636 |
|  | RUTA DE LOS RIOS | Chile | 187359 | 226067 | 36333 | 47121 |
|  | RUTA DEL LOA | Chile | 266396 | 166108 | 86587 | 38092 |
| **Subtotal concessions in Chile:** |  |  | **7766735** | **7204419** | **823654** | **726917** |
| Road Concessions | RUTA COSTERA | Colombia | 1961096 | 1922633 | 196444 |  |
| **Subtotal concessions in Colombia:** |  |  | **1961096** | **1922633** | **196444** | **—** |
| **Total concessions recognized as financial assets:** |  |  | **9800105** | **9245840** | **1350314** | **1076842** |
| **Total concessions** |  |  | **32471927** | **26704924** | **4044487** | **3591640** |

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**14.**RELATED PARTIES

Related-party transactions are carried out under market conditions and prices, i.e., in conditions equivalent to those existing for arm's-length transactions.

As of the date of these financial statements, there are no granted guarantees associated with related-party balances or impairment on accounts receivable, except for the balance with Transnexa S.A. E.M.A., which is 100% impaired.

Balances and transactions between Group companies, between ISA and its subsidiaries, and between subsidiaries, have been eliminated in the consolidation process and are not disclosed in this note.

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Below are the Group´s related-party balances and transactions:

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| | | |
|:---|:---|:---|
|  | **June 2021**<br>**(Unaudited)** | **December 2020**<br>|
| **Statement of financial position** |  |  |
| **Loans receivable from related parties** | **475** | **17364** |
| ATP TOWER HOLDINGS |  | 16962 |
| DERIVEX | 335 | 335 |
| INTERLIGAÇÃO ELÉTRICA GARANHUNS S.A. | 29 | 24 |
| INTERLIGAÇÃO ELÉTRICA PARAGUAÇU S.A. | 37 | (5) |
| INTERLIGAÇÃO ELÉTRICA AIMORÉS S.A. | 37 | 24 |
| INTERLIGAÇÃO ELÉTRICA IVAÍ S.A. | 37 | 24 |
| **Statement of comprehensive income** |  |  |
| **Revenues** |  |  |
| ATP TOWER HOLDINGS |  | 9 |

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**15.**EQUITY

**15.1**Dividends

Dividends declared in 2021, and 2020 by the Group´s parent company are detailed below:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Net profit of previous period | 2062950 | 1643505 |
| Outstanding shares | 1107677894 | 1107677894 |
| Ordinary dividend per share (in COP) | 744 | 675 |
| Extraordinary dividend per share (in COP) | 559 |  |
| Total decreed dividends per share | 1303 | 675 |
| Decclared dividends | 1443304 | 747683 |
| Payment method | Ordinary and extraordinary dividends payable in two installments, July and December 2021 | Ordinary and extraordinary dividends payable in two installments, July and December 2020 |

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**15.2**Equity reserves

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Equity strengthening reserve <sup>(1)</sup> | 5906797 | 5287151 |
| Legal under tax provisions | 898802 | 898802 |
| Rehabilitation and repair of STN assets | 37434 | 37434 |
| Legal | 18458 | 18458 |
| **Total** | **6861491** | **6241845** |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) In compliance with Article 47 of the Statutes, the General Shareholders ' Meeting created this reserve, so that the company maintains its financial strength and the level of financial indicators required by credit rating agencies to support ISA ´ s investment qualification, and to fulfill contractual commitments acquired with financial entities. On March 26, 2021, the General Shareholders ' Meeting decided to increase this reserve by COP 619,646 (2020: COP 895,822).

**16.** **SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;● On July 26, 2021, ISA Interchile issued its first green bond listed on the Singapore Securities Exchange for an amount of USD 1,2 billion for a 35-year term. The objective was to restructure the debt commitments acquired during the construction phase of the Cardones - Polpaico 2 × 500 kV Transmission Line, a key infrastructure to decarbonize the matrix and contribute to climate change mitigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;● On August 11, 2021, Ecopetrol (a Colombian Oil and Gas Company controlled by the Colombian government) signed an inter-administrative share purchase agreement (" Inter-Administrative SPA ") with the Colombian government ' s MHCP pursuant to which it agreed to acquire 51.4% of the outstanding shares of ISA from the MHCP (the " Acquisition ") for a purchase price of COP$14,236,814,025,000, or approximately US$3,672,992,823.94 (the " Acquisition Price ") based on the COP/US$ market exchange rate of COP$3,876.08 to US$1.00 in effect on August 20, 2021, the date the Acquisition was consummated. Related to this transaction, Ecopetrol and MHCP were named as defendants in a public action filed on July 21, 2021 First Section of the Administrative Tribunal of Cundinamarca by Fundaci ó n Defensa de la Informaci ó n Legal y Oportunidad – Dilo Colombia (" Fundaci ó n Dilo "). The complaint sought, among other things, to prevent the MHCP from selling its ownership stake in ISA to Ecopetrol unless a competitive bid was undertaken and ISA, although named in this action, is not a defendant.

&nbsp;&nbsp;&nbsp;&nbsp;● On September 14, 2021, the Social Investment Law, among other matters, increases corporate income tax rate from 30% to 35% starting in 2022.

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