Eeff Kallpa q2-2023

Kallpa Generación S.A.
Unaudited Condensed Interim Financial Statements

June 30, 2023
(Including Independent Auditors´ Report on Review of
Condensed Interim Financial Statements)
INDEPENDENT AUDITORS’ REPORT ON REVIEW OF
CONDENSED INTERIM FINANCIAL STATEMENTS
To the Shareholders and Board of Directors
Introduction
We have reviewed the accompanying condensed statement of financial position of Kallpa

Generación S.A. as at June 30, 2023, the condensed statements of profit or loss and other
comprehensive income for the six and three-month periods ended as at June 30, 2023, the
condensed statements of changes in equity and cash flows for the six-month period then ended,
and notes to the condensed interim financial statements. Management is responsible for the
preparation and presentation of these condensed interim financial statements in accordance with
IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on these condensed
interim financial statements based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements
2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A
review of interim financial statements consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review
is substantially less in scope than an audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying condensed interim financial statements as at and for the six and three-month periods
ended June 30, 2023 are not prepared, in all material respects, in accordance with IAS 34 Interim
Financial Reporting.
Lima, Peru
July 27, 2023
Countersigned by:
Ronald J. Villalobos (Partner)

Peruvian Public Accountant
Registration N° 60262
Unaudited Condensed Interim Financial Statements

June 30, 2023
Contents Page
Unaudited Condensed Statement of Financial Position 1
Unaudited Condensed Statement of Profit or Loss and Other Comprehensive Income 2
Unaudited Condensed Statement of Changes in Equity 3
Unaudited Condensed Statement of Cash Flows 4
Notes to the Unaudited Condensed Interim Financial Statements 5 - 22
Unaudited Condensed Statement of Financial Position
As at June 30, 2023 and December 31, 2022
June 30, December 31, June 30, December 31,

In thousands of U.S. dollars Note 2023 2022 In thousands of U.S. dollars Note 2023 2022
Assets Liabilities
Current assets Current liabilities
Cash 3 39,668 36,404 Trade payables 9 54,145 62,828
Trade receivables 4 103,109 102,812 Other payables 10 38,405 24,393
Other receivables 5 516 611 Income tax payables 10 39,274 2,586
Account receivables from related parties 17 - 394 Lease liabilities from financial contracts 11 35,187 37,238
Inventories 6 18,636 18,096 Lease liabilities from operating contracts 1,358 1,391
Prepaid expenses 7,168 933 Account payables to related parties 17 - 721
Total current assets 169,097 159,250 Total current liabilities 168,369 129,157
Non-current assets Non-current liabilities

Property, plant, and equipment 7 1,466,081 1,489,249 Debentures 11 992,709 991,742
Right-of-use assets 7 214,497 216,339 Lease liabilities from financial contracts 11 95,206 110,461
Intangible assets 8 109,921 110,495 Lease liabilities from operating contracts 5,056 5,610
Other receivables 5 12,705 12,091 Deferred income tax liabilities 389,729 397,337
Account receivables from related parties 17 3,891 3,827 Asset retirement obligation 12 11,417 10,917
Total non-current assets 1,807,095 1,832,001 Total non-current liabilities 1,494,117 1,516,067
Total liabilities 1,662,486 1,645,224
Equity 13
Share capital 238,426 238,426
Additional capital 19,619 23,719
Legal reserve 47,685 47,685
Retained earnings 7,976 36,197
Total equity 313,706 346,027
Total assets 1,976,192 1,991,251 Total liabilities and equity 1,976,192 1,991,251
The notes on pages 5 to 22 are an integral part of these unaudited condensed interim financial statements.
1
Unaudited Condensed Statement of Profit or Loss and Other Comprehensive Income
For the six-month and three-month periods ended June 30, 2023, and 2022
Six-month period Three-month period

ended June 30 ended June 30
In thousands of U.S. dollars Note 2023 2022 2023 2022
Revenue 14 339,883 284,471 172,154 142,771
Costs of sales (176,765) (154,062) (86,232) (80,412)
Depreciation and amortization 7(d) (38,354) (32,577) (19,193) (17,010)
Gross profit 124,764 97,832 66,729 45,349
Administrative expenses (10,862) (7,492) (6,208) (4,153)
Other income 5,224 4,934 2,819 2,848
Other expenses (49) (22) 1,976 (22)
Operating profit 119,077 95,252 65,316 44,022
Finance income 618 80 460 48
Finance costs (35,528) (26,028) (13,834) (13,279)
Net foreign exchange difference 1,437 820 1,141 (2,031)
Net finance costs (33,473) (25,128) (12,233) (15,262)
Profit before income tax 85,604 70,124 53,083 28,760
Income tax expense 15 (37,925) (27,640) (23,329) (3,548)
Profit for the period 47,679 42,484 29,754 25,212
Other comprehensive income or loss
Items that will not be reclassified to
profit or loss
Revaluation of property, plant, and equipment, net - 27,950 - 27,950
Total comprehensive income for the period 47,679 70,434 29,754 53,162
2
Unaudited Condensed Statement of Changes in Equity
For the six-month period ended June 30, 2023, and 2022
Number of Share Additional Revaluation

shares capital capital Legal reserve Retained Total
In thousands of U.S. dollars Note (note 13) (note 13) (note 13) reserve (note 13) earnings equity
Balance as of January 1, 2022 665,803,506 238,426 48,769 47,685 - 9,829 344,709
Comprehensive income for the period
Profit for the period - - - - - 42,484 42,484
Other comprehensive income
Revaluation reserve - - - - 27,950 - 27,950
Total comprehensive income for the period - - - - 27,950 42,484 70,434
Transactions with owners of the Company
Dividends paid 13.E - - - - - (32,000) (32,000)
Total transactions with owners of the Company - - - - - (32,000) (32,000)
Balance as of June 30, 2022 665,803,506 238,426 48,769 47,685 27,950 20,313 383,143
Balance as of January 1, 2023 665,803,506 238,426 23,719 47,685 - 36,197 346,027
Comprehensive income for the period
Profit for the period - - - - - 47,679 47,679
Total comprehensive income for the period - - - - - 47,679 47,679
Transactions with owners of the Company
Dividends paid 13.E - - (4,100) - - (75,900) (80,000)
Total transactions with owners of the Company - - (4,100) - - (75,900) (80,000)
Balance as of June 30, 2023 665,803,506 238,426 19,619 47,685 - 7,976 313,706
3
Unaudited Condensed Statement of Cash Flows
For the six-month period ended June 30, 2023 and 2022
Six-month period ended

June 30
In thousands of U.S. dollars Note 2023 2022
Cash flows from operating activities
Collections from clients 428,180 352,934
Other collections from operating activities 5,278 5,433
Collection of interest 608 40
Payment to suppliers (272,505) (248,103)
Payment to employees (4,688) (5,193)
Payment of contributions and others related to employees (2,775) (2,969)
Cash generated from operating activities 154,098 102,142
Income tax paid (8,664) (2,075)
Net cash provided by operating activities 145,434 100,067
Cash flows from investing activities
Proceeds from sales of property, plant, and equipment 19 21
Acquisition of property, plant and equipment (16,220) (14,096)
Acquisition of intangibles (437) (501)
Net cash used in investing activities (16,638) (14,576)
Cash flows from financing activities
Dividends paid, net of tax (78,996) (31,598)
Interest paid (25,954) (23,844)
Payment of subordinated financial leases 11 (20,502) (7,157)
Payment of lease liabilities from operating contracts (818) (817)
Payment of transaction costs (41) (207)
Payment of short-term borrowings 11 - (67,546)
Proceeds from short-term debt 11 - 62,607
Net cash used in financing activities (126,311) (68,562)
Net increase in cash 2,485 16,929
Cash at January 1 36,404 31,979
Effects of variations in exchange difference on cash held 779 (1,215)
Cash at June 30 3 39,668 47,693
Non-cash transactions
Battery Energy Storage System Financial lease 11 2,964 -
Combined cycle Las Flores Financial lease 11 - 38,519
4
Notes to the Unaudited Condensed Interim Financial Statements
1. Background and Business Activity and Other

Kallpa Generación S.A. (hereinafter, “the Company” or “Kallpa”) is a subsidiary of Inkia Americas
S.A.C., established in Peru, and a direct and indirect subsidiary of Nautilus Inkia Holdings SCS
(hereinafter, “NIH”), established in Luxembourg. Inkia Americas S.A.C. and NIH are the direct
owners of 74.9% and 25.1%, respectively of the Company. The legal domicile of Kallpa is Las
Palmeras 435, 7th floor, San Isidro, Lima, Peru.
The Company business activity is the generation and commercialization of electrical energy. After
the merger, the combined entity has a total installed capacity of 1,826 MW as follows:
Commercial operation Source used to operate Installed

Plant/Turbine date/Acquisition date power station capacity (MW) Location
Kallpa I July 2007 Natural gas 188 Chilca
Kallpa II June 2009 Natural gas 210 Chilca
Kallpa III March 2010 Natural gas 212 Chilca
Kallpa IV August 2012 Steam 298 Chilca
Las Flores April 2014 Natural gas 210 Chilca
Las Flores TV June 2022 Steam 115 Chilca
CDA August 2016 Hydroelectric 593 Huancavelica
1,826
The Company’s combined cycle plants have an aggregate capacity of 1,233 MW: (i) Kallpa combined-
cycle generation plant in Chilca (45 kms south of Lima) with three natural gas-fired turbines and one
steam turbine that have an aggregate capacity of 908 MW; and (ii) Las Flores combined-cycle
generation plant, with one natural gas-fired turbine and one steam turbine that have an aggregate
capacity of 325 MW, also located in Chilca, 3km away from Kallpa plant’s site. The commercial
operation date (“COD”) of the Kallpa combined-cycle was achieved on August 8, 2012, Las Flores
plant acquisition became effective on April 1, 2014, and the COD of the Las Flores combined-cycle
was achieved on June 9, 2022.
The Company’s hydropower plant, with an installed capacity of 593 MW, is the largest privately-
owned hydroelectric power plant in Peru. On August 25, 2016, the Company declared the COD of the
plant, consisting of a 6-kilometer headrace tunnel and a 17-kilometer transmission line with a
capacity of 545 MW. On October 27, 2017, COES declared the COD of the 10 MW mini-hydro, built to
take advantage of the Mantaro river ecological water flow. On March 28, 2019, after running
additional effective capacity tests, COES approved a capacity increase of 13 MW. On March 11,
2021, after running additional effective capacity tests, COES approved a capacity of 7 MW,
increasing total capacity to 575 MW. On December 11, 2022, the upgrade of turbine II and the
improvement of the design of turbines I and III in the CDA hydro power plant were completed. These
works added 18 MW, increasing CDA’s total capacity to 593 MW. The effective capacity tests were
run and approved in March 2023.
In August 2019, the Company started an asset optimization program, that included the conversion of
Las Flores open cycle natural gas plant to a combined cycle and the upgrade of Kallpa’s turbines II
and III. The combined cycle project was constructed under an EPC with Siemens S.A.C. and
Siemens Energy Inc; while the upgrades of Kallpa’s turbines II and III under the long-term service
agreement with Siemens S.A.C. and Siemens Energy Inc. The conversion of Las Flores plant was
financed through a financial lease with BCP for a total principal amount of US$ 141,023 million
(note 11).
In November 2022, Kallpa began the development of a Battery Energy Storage System (hereinafter
BESS project) which represents a 34 MW high-capacity lithium-ion battery that will be incorporated
into our combined cycle Kallpa plant. This investment will allow the Kallpa combined cycle plant to
operate at full capacity, and release more low-carbon efficient energy to the system, among other
benefits.
5
Finally, the Company could be affected by seasonal patterns throughout the year and, therefore, the
operating margin could vary by month during the year. Additionally, weather variations, including
hydrological conditions, could also have an impact on generation output. Nevertheless, this risk is
mitigated due to the technological diversification of the Company’s assets (combined cycle and
hydro).
2. Basis for the Preparation of Financial Statements
A. Basis of accounting
These condensed interim financial statements have been prepared in accordance with IAS 34:
Interim Financial Reporting and should be read in conjunction with the Company’s last annual audited
financial statements as at and for the year ended December 31, 2022. Selected explanatory notes
are included to explain events and transactions that are significant to an understanding of changes in
the financial position and performance of the Company since the last annual consolidated financial
statements as at and for the year ended December 31, 2022. These condensed interim financial
statements do not include all of the information required for a full annual set of financial statements
prepared in accordance with IFRS.
These condensed interim financial statements were approved by the Company’s Management on
July 19, 2023.
B. Significant Accounting Policies

The accounting policies applied by the Company in these condensed consolidated interim financial
statements are the same as those applied by the Company in its financial statements as at
December 31, 2022.
C. Use of estimates and judgements

The preparation of these condensed interim financial statements requires Management to make
judgments, estimates and assumptions that affect the application of Company´s accounting policies
and the reported amounts of assets and liabilities, income and expense. Actual results may differ
from these estimates.
In preparing these condensed interim financial statements, the significant judgments made by
Management in applying the Company’s accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the financial statements as at and for the year
ended December 31, 2022.
D. Measurement of fair values

Some of the Company´s accounting policies and disclosures require the measurement of fair value
of financial assets and liabilities.
When measuring the fair value of an asset or a liability, the Company uses market observable data as
far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
6
If the inputs used to measure the fair value of an asset or a liability might be categorized in different
levels of their fair value hierarchy, then the fair value measurement is categorized in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
The Company recognizes transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.
Further information about the assumptions made in measuring fair values included in note 16 –
Financial Instruments.
Measurement of revaluation of property, plant and equipment
i. Fair value hierarchy

The fair value of property, plant and equipment was determined by external, independent property
valuers, having appropriate recognized professional qualifications and recent experience in the
location and category of the property being valued.
The fair value measurement for all of the property, plant and equipment has been categorized as a
Level 2 fair value based on the inputs to the valuation technique used.
ii. Valuation techniques and significant unobservable inputs

The following table shows the valuation technique used in measuring the fair value of investment
property, as well as the significant unobservable inputs used.
Inter-relationship between
Significant key unobservable inputs
unobservable and fair value
Valuation techniques inputs measurement
Market comparison (appraisal): The fair value is
estimated considering the current or recent quoted
prices for identical assets considering their
characteristics (location, condition, etc.) Not applicable Not applicable
3. Cash
Comprises the following:
June 30, December 31,

In thousands of U.S. dollars 2023 2022
Checking accounts (a) 39,662 36,399
Petty cash 6 5
39,668 36,404
(a) The Company holds checking accounts in foreign and local currency at different financial
entities. Checking accounts are available and mainly earn interest at market rates ranging
from 0.07% to 7.85% in soles and from 0.15% to 4.90% in U.S dollar as at June 30, 2023
(from 0.15% to 1.00% in soles and from 0.07% to 0.90% in U.S dollar as at December 31,
2022).
The credit quality that safeguards the Company´s bank deposits have the same evaluation as
compared to December 31, 2022.
7
4. Trade Receivables

Non-regulated customers 62,911 66,557
Regulated customers 39,590 35,730
COES (a) 695 434
Other 95 264
Subtotal (c) 103,291 102,985
Impairment loss allowance (d) (182) (173)
Total 103,109 102,812
Trade receivables are denominated in U.S. dollars (non-regulated customers) and soles indexed to
U.S. dollars (COES and regulated customers). They have current maturity and do not generate
interest, except in the case of payment delays. Trade receivables as of June 30, 2023, corresponds
to approximately 121 non-regulated and 7 regulated customers (100 non-regulated and 7 regulated
customers as of December 31, 2022).
(a) The Committee of Economic Operation of the National Interconnected System (COES) as the
system operator, acts as a clearing house and settles the payments for power generation
companies.
(b) As of June 30, 2023, this amount includes US$ 20 thousand for related parties (US$ 17
thousand as of December 31, 2022) (note 17).
(c) As of June 30, 2023, and December 31, 2022, past due trade receivables (over 360 days)
represent less than 1% of the total balance of trade receivables. Those mainly correspond to
trade receivables with non-regulated customers.
(d) The aging of trade accounts receivable is as follows:

Unexpired 100,778 101,145
Less than 30 days 2,142 1,584
31 to 60 days 21 82
61 to 180 days 168 1
181 to 360 days - -
More than 360 days 182 173
103,291 102,985
5. Other Receivables

Current portion
Related to employees 165 134
Advances to suppliers - 3
Other receivables 351 474
516 611
Non-current portion
Import tax (Kallpa EPC Projects) 18 12,705 12,091
12,705 12,091
13,221 12,702
8
6. Inventories

Mechanical spare parts 13,044 12,858
Electrical spare parts 4,591 4,365
Other supplies 1,001 977
18,636 18,200
Write-off (b) - (104)
18,636 18,096
(a) Mechanical spare parts are related mainly to items used in programmed maintenance for
Kallpa I, Kallpa II, Kallpa III, Kallpa IV, Las Flores and Cerro del Aguila plants enabling
appropriate operations until major maintenance.
(b) As of June 30, 2023, the previous write-off of inventories was destroyed, according
requirements of the Peruvian law.
In accordance with Management’s opinion, it is not necessary to recognize any impairment on

inventories as of June 30, 2023.
7. Property, Plant and Equipment


Cost
Beginning balance 2,213,853 2,099,170
Additions
Work in progress (f) 11,608 88,467
Replacement units 637 6,924
Office equipment 502 897
Units in transit 417 55
Plant and equipment 182 272
Vehicles 98 10
Buildings and other constructions 27 175
Others 5 24
Buildings and other constructions – revaluations - 311
Lands - 51
Plant and equipment – revaluations - 39,335
Total additions 13,476 136,521
Others
Buildings and other constructions 148 (6,679)
Plant and equipment 148 (3,701)
Units in transit - (2,411)
Total others 296 (12,791)
Disposals
Office equipment (131) (74)
Vehicles (27) (36)
Buildings and other constructions (16) -
Plant and equipment - (8,936)
Others - (1)
Total disposals (174) (9,047)
9

Transfers
Plant and equipment 971 168,840
Buildings and other constructions 284 45,006
Work in progress (1,172) (207,330)
Replacement units (182) (6,769)
Total transfers - -
Ending balance 2,227,451 2,213,853
Accumulated depreciation
Beginning balance (508,265) (445,827)
Additions
Plant and equipment (30,752) (55,762)
Buildings and other constructions (6,953) (13,659)
Office equipment (775) (1,493)
Vehicles (154) (314)
Replacement units (91) (174)
Others (36) (71)
Total additions (38,761) (71,473)
Disposals
Vehicles 27 36
Buildings and other constructions 8 -
Plant and equipment - 8,936
Total disposals 153 9,035
Transfers
Plant and equipment (1) -
Office equipment (1) -
Replacement units 2 -
Total transfers - -
Ending balance (546,873) (508,265)
Net cost at the beginning of the period 1,705,588 1,653,343
Net cost at the end of the period 1,680,578 1,705,588
(a) Plant and equipment include significant components that correspond to parts that are
replaced during major maintenance of the thermal and hydro plants. Management depreciates
those components in accordance with their estimated useful lives, which range from 1 year
to 50 years.
(b) As of June 30, 2023, and December 31, 2022, in Management’s opinion, there were no
impairment indicators on the value of property, plant and equipment.
10
(c) Property, plant, and equipment includes right-of-uses assets as follows:

Cost
Beginning balance 269,319 220,299
Additions
Work in progress 2,964 48,992
Other equipment 27 26
Vehicles - 2
Total additions 2,991 49,020
Transfers
Buildings and other constructions - 40,664
Plant and equipment - 100,359
Work in progress - (141,023)
Total transfers - -
Ending balance 272,310 269,319
Accumulated depreciation
Beginning balance (52,980) (43,673)
Additions
Plant and equipment (3,631) (7,208)
Buildings and other constructions (817) (1,315)
Other equipment (276) (566)
Vehicles (109) (218)
Total additions (4,833) (9,307)
Ending balance (57,813) (52,980)
Net cost at the beginning of the period 216,339 176,626
Net cost of the end of the period 214,497 216,339
(d) Distribution of depreciation was as follows:
Six-month period Three-month period ended

ended June 30 June 30
In thousands of U.S. dollars 2023 2022 2023 2022
Depreciation 38,187 32,411 19,109 16,927
Administrative expenses 574 552 288 274
38,761 32,963 19,397 17,201
(e) As of June 30, 2023, and December 31, 2022, the Company has insured all plants’ assets for
property damage under its Property Damage Business Interruption (PDBI) policy. In
Management’s opinion, this insurance policy is consistent with the international industry
practice and the risk of possible losses for claims considered in the insurance policies is
reasonable, taking into consideration the Company’s types of assets.
(f) As of June 30, 2023, the main work-in-progress additions correspond to the maintenance
contracts for Chilca plant for US$ 4,212 thousand and Las Flores plant for US$ 1,415
thousand, maintenance contract to CDA for US$ 1,218 thousand, BESS project for US$ 3,636
thousand and other minor projects for US$ 706 thousand, (the construction of Las Flores
combined cycle for US$ 42,007 thousand, BESS project for US$ 11,147 thousand, turbines
upgrades TG2 & TG3 Chilca for US$ 13,181 thousand, maintenance contracts for US$ 11,255
thousand, scheduled maintenance for US$ 9,478 thousand and others as of December 31,
2022).
11
(g) As of June 30, 2023, and December 31, 2022, the Company does not have guarantees
related to the acquisition of property, plant, and equipment, besides the assets under the
subordinated financial leases for Las Flores and the combined cycle Las Flores and the assets
under the financial lease for the BESS project.
8. Intangible Assets

Other rights (a) 63,466 63,959
Public access roads (b) 23,293 23,452
Software 2,270 2,674
Easements 470 474
Project software 356 150
Licenses 78 51
Development projects (c)
RS Project 12,699 12,697
Chilia Project 5,830 5,829
Others 1,459 1,209
109,921 110,495
(a) Correspond to the option agreements signed between the Company and distribution
companies, by which distribution companies grant an option to sign addenda to the original
public tender of certain PPAs, extending the contract term, modifying the contracted capacity
and associated energy, and maintaining the current fixed prices within framework of the
Supreme Decree 022-2018 EM. As of June 30, 2023, the Company executed all option
agreements signed with distribution companies.
(b) Correspond to the disbursements made by the Company in easements and public access
roads to access the Cerro del Águila hydropower plant site. The construction of these roads
was included in the EPC contract signed with Rio Mantaro Consortium for the construction of
the hydropower plant.
(c) Development costs correspond to expenditures incurred in design and evaluation of future
power plants facilities. These projects have different level of advance such as temporal
concessions, environmental impact studies in process and others.
Management analysis indicated there were no impairment indicators on the value of the intangibles
as of June 30, 2023, and December 31, 2022.
9. Trade Payables

Energy purchases and transmission tolls (a) 24,375 25,028
Supplies and transportation 22,318 21,212
Other 3,785 6,442
Capital expenditures (b) 3,667 10,146
54,145 62,828
12
(a) Trade payables include transmission tolls paid for the use of principal transmission lines in the
Peruvian interconnected electricity system. Most of these costs are pass-through to the
Company’s customers. As of June 30, 2023, this amount includes US$ 187 thousand
payables to related parties (US$ 2,303 thousand as of December 31, 2022) (note 17).
(b) As of June 30, 2023, corresponds mainly to payables for services related to the major
maintenance for the Chilca plant and Cerro del Aguila plant (the major maintenance and
Kallpa II and III turbines upgrade, as of December 31, 2022).
10. Other Payables and Income Tax Payables


Interest payables (a) 11,807 11,770
Kallpa II – statue barred 18 8,077 -
Payroll 5,805 3,728
Electricity Social Compensation Fund 4,292 1,567
Rural electrification act 3,085 2,377
Value-added tax 2,140 912
Energy Social Inclusion Fund 1,574 2,050
Other taxes 854 1,686
Withholding tax on dividends 485 164
Other 286 139
38,405 24,393
Income tax payable
Income tax current 46,095 16,789
Advance payment (6,821) (14,203)
39,274 2,586
77,679 26,979
(a) Corresponds mainly to the senior unsecured notes Kallpa 2026 and 2027 settled semi-
annually throughout the year.
11. Loans from Banks, Debentures and Others

The terms and conditions of outstanding loans and debentures are as follows:
Nominal Face value Carrying amount

annual June 30, December 31, June 30, December 31,
In thousands of U.S. dollars interest rate Currency Maturity 2023 2022 2023 2022
Subordinated financial leases
Las Flores combined cycle
Banco de Crédito del Perú 4.75% US$ Jun-27 114,828 128,051 113,325 126,325
Las Flores open cycle
Banco de Crédito del Perú 6.18% US$ Oct-23 3,736 11,015 3,723 10,976
118,564 139,066 117,048 137,301
Senior debt
Financial leases
Battery energy storage
system
Banco de Crédito del Perú 5.95% US$ Dic-25 13,438 10,473 13,345 10,398
Debentures
Kallpa 2027 notes 4.13% US$ Ago-27 650,000 650,000 645,955 645,505
Kallpa 2026 notes 4.88% US$ May-26 350,000 350,000 346,754 346,237
1,013,438 1,010,473 1,006,054 1,002,140
Total 1,132,002 1,149,539 1,123,102 1,139,441
13
The carrying amounts as of June 30, 2023, and December 31, 2022, comprises the following:
Current portion Non-current portion Total

June 30, December 31, June 30, December 31, June 30, December 31,
In thousands of U.S. dollars 2023 2022 2023 2022 2023 2022
Subordinated debt
Subordinated financial leases
Las Flores combined cycle (a) 27,174 26,687 87,654 101,364 114,828 128,051
Transaction costs (437) (425) (1,066) (1,301) (1,503) (1,726)
Las Flores open cycle (b) 3,736 11,015 - - 3,736 11,015
Transaction costs (13) (39) - - (13) (39)
30,460 37,238 86,588 100,063 117,048 137,301
Senior debt
Financial leases
Battery Energy Storage System I (c) 4,787 - 8,651 10,473 13,438 10,473
Transaction costs (60) - (33) (75) (93) (75)
4,727 - 8,618 10,398 13,345 10,398
Debentures
Kallpa 2027 notes (d) - - 650,000 650,000 650,000 650,000
Transaction costs - - (4,045) (4,495) (4,045) (4,495)
Kallpa 2026 notes (e) - - 350,000 350,000 350,000 350,000
Transaction costs - - (3,246) (3,763) (3,246) (3,763)
- - 992,709 991,742 992,709 991,742
Total 35,187 37,238 1,087,915 1,102,203 1,123,102 1,139,441
(a) On August 13, 2019, the Company entered into a financial lease agreement with Banco de
Crédito del Perú (“BCP”) for up to US$ 148,000 thousand to finance the construction of the
Las Flores combined cycle plant. Under the lease agreement, Kallpa has up to 36 months
disbursement period and a 5-year repayment period with quarterly payments until the
maturity of the lease. The lease bore a fixed interest rate of 3.65%.
The combined cycle reached commercial operation date on June 9, 2022, which led to the
execution of an amendment to the relevant financial lease agreement on June 30, 2022, to
set the definitive payment schedule thereunder. Total disbursements under the financial lease
for the Las Flores combined cycle amounted to US$ 141,000 thousand.
On February 1, 2021, Kallpa and BCP entered into a subordination agreement by which the
parties agreed to subordinate the principal payments of the financial leases with BCP, related
to the construction of Las Flores power plant (“Open Cycle Financial Lease”) and its upgrade
to a combined-cycle plant (“Combined Cycle Financial Lease” and together, the
“Subordinated Financial Leases”):
The payment obligations under the Financial Leases are, since February 1, 2021, subordinated
to Kallpa’s existing and future indebtedness (the “Senior Debt”), including but not limited to
Kallpa’s 2026 notes 2027 notes and the Battery Energy Storage System Financial Lease.
Pursuant to the terms of the subordination agreement, BCP will be barred from bringing
claims or exercising remedies aimed at enforcing collection of amounts owed under the
Subordinated Financial Leases should Kallpa be in default of its Senior Debt payment
obligations.
14
As part of the transaction:
i. Kallpa and BCP signed an amendment to the Open Cycle Financial Lease which
included, among others, a modification in the annual interest rate from 5.08% to
6.18% since February 2021;
ii. Kallpa and BCP signed an amendment to the Combined Cycle Financial Lease which
included, among others, a modification in the annual interest rate from 3.65% to
4.75% since February 2021 until 2023, 4.95% in 2024, 5.15% in 2025, 5.35% in 2026
and 5.55% in 2027 until maturity; and,
iii. Kallpa, BCP and La Fiduciaria S.A. signed a collateral trust agreement to secure Kallpa’s
obligations under the Combined Cycle Lease. Effective upon Kallpa exercising the
purchase option under the Open Cycle Financial Lease, all assets and equipment
related to the Open Cycle Lease will be transferred to the collateral trust.
(b) In April 2014, Kallpa entered into a capital lease agreement with BCP for US$ 107,688
thousand to finance the acquisition of the 193MW single turbine natural gas fired plant Las
Flores from Duke Energy. Under the lease agreement, Kallpa makes quarterly payments
beginning in July 2014 until the expiry of the leased in October 2023. The lease bore a fixed
interest rate of 7.15% In May 2017, Kallpa renegotiated its conditions on the existing lease
agreement reducing the fixed interest rate to 5.08% In February 2021, this lease was
subordinated to Kallpa’s senior, indebtedness (a)(i).
(c) On November 3, 2022, Kallpa entered into a financial lease agreement with BCP for up to
US$ 20,000 thousand to finance the machinery and equipment of the Battery Energy Storage
System project (notes 1). Under the lease agreement, Kallpa has up to 15 months of
disbursement period and a 2 years of repayment period with quarterly payments until the
maturity of the lease. The lease bears a fixed annual interest rate of 5.95%. As of June 30,
2023, disbursements amounted to US$ 13,438 thousand (US$ 10,473 thousand in
December 31,2022).
(d) In August 2017, the Company issued US$ 650,000 thousand senior unsecured notes in the
international capital market under rule 144A regulation S, here in after (“Kallpa 2027”), to
refinance long-term obligations, including Syndicated Loan, Shareholder Loans and payment
of Interest Rate Swap Unwind. The notes have an investment grade international rating
(BBB-). Issuance was made below par (99.870%) and is payable biannually with final bullet
maturity in August 2027 with a coupon rate of 4.125%.
(e) In May 2016, the Company issued US$ 350,000 thousand senior unsecured notes in the
international capital market under rule 144A Regulation S, to refinance short and long-term
obligations that were used to finance mainly capital expenditures including short-term loans,
local bonds, syndicated loan and financial leases for Kallpa II and III. The notes have an
investment grade international rating. Issuance was made below par (99.258%) and notes
interests are payable biannually with final maturity in May 2026 with a coupon rate of 4.875%.
12. Asset Retirement Obligation


Balance as of January 1 10,917 21,002
Addition/Decrease 296 (10,380)
Unwind of discount 204 295
11,417 10,917
15
The provision for decommissioning liabilities corresponds to Kallpa Combined Cycle, Las Flores
Combined Cycle and Cerro del Aguila hydropower plant and has been determined taking into
consideration all costs necessary to dismantle and rehabilitate the land where the plants are
currently located. The future value, considering the effect of inflation amounts to US$ 40,326
thousand and has been discounted using an annual risk-free rate ranging from 3.52% to 3.58% as of
June 30, 2023 (3.70% to 3.86% as of December 31, 2022).
As of June 30, 2023, and December 31, 2022, the net asset for the decommissioning is included in
the item of property, plant and equipment and amounts US$ 4,963 thousand and US$ 4,776
thousand, respectively.
13. Equity
A. Share capital
As of June 30, 2023, and December 31, 2022, the share capital is represented by 665,803,506
common shares with a nominal value of one sol each (equivalent to approximately US$ 0.3581) duly
authorized, issued and paid as follows:
Shareholders Number of shares %

Inkia Americas S.A.C. 498,686,827 74.90
Nautilus Inkia Holding SCS 167,116,679 25.10
665,803,506 100.00
B. Legal reserves
According to the Companies Act, the Company is required to allocate at least 10% of its net annual
income to a legal reserve after deducting accumulated losses. This allocation is required until the
reserve equals 20% of paid-in capital. In the absence of non-distributed earnings or freely available
reserves, the legal reserve must be applied to offset losses, but it must be replaced with the
earnings of the subsequent years. This reserve can also be capitalized but its subsequent
replenishment is equally mandatory. The accumulated amount of this reserve meets the established
limits.
C. Revaluation reserve
Corresponds to the US$ 39,646 thousand revaluation of plant and equipment, buildings, and other
constructions net of US$ 11,696 thousand deferred income tax, executed on June 1, 2022. On
August 18, 2022, the total amount was capitalized into additional capital (note 13.D).
D. Additional capital

Initial balance 23,719 48,769
Capitalization of revaluation reserve 13.C - 27,950
Dividends in cash 13.E (4,100) (53,000)
Final balance 19,619 23,719
E. Dividends
During the six-month period ended June 30, 2023, and 2022, the Company made cash dividend
distributions for a total amount of US$ 80,000 thousand and US$ 32,000 thousand respectively.
In January, March and June 2023, the Company declared and paid dividends for US$ 10,000
thousand, US$ 30,000 thousand, and US$ 40,000 thousand, respectively. Out of these totals,
US$ 35,900 thousand were distributed from retained earnings and US$ 4,100 thousand from
additional capital.
16
14. Revenue

Energy sales non-regulated 132,327 106,589 65,824 55,173
Energy sales regulated 132,114 112,899 67,535 56,535
Energy sales others 5,529 3,062 4,284 648
Capacity sales non-regulated 34,087 29,779 16,179 14,795
Capacity sales regulated 32,672 29,407 16,952 14,240
Capacity other 542 - 267 -
Other revenues 2,612 2,735 1,113 1,380
339,883 284,471 172,154 142,771
The estimated revenue pending of invoicing for the six-month period ended June 30, 2023, amounts
to US$ 55,020 thousand (US$ 47,979 thousand for the six-month period ended June 30, 2022).
According to Management’s evaluation, there would not be a significant variation between the
amounts invoiced and those estimated.
15. Tax Issues

Income taxes from the years 2015 to 2022, are subject to review by the tax authorities. As of
June 30, 2023, the Company is being audited by the Peruvian Tax Administration through a partial
audit related to its cost of sales for the year 2020. Any amount exceeding the provisions made to
cover the tax obligations will be charged to the results of the year in which those are finally
determined. In the opinion of the Company’s Management, as a result of an eventual assessment,
no significant liabilities affecting the financial statements will arise as of June 30,2023, and
December 31, 2022.
In accordance with current tax legislation, corporate income tax for 2023 and 2022 is calculated
based on the net taxable profit at a rate of 29.5%.
The effective tax rate for the six-month period ended June 30, 2023, was 44.30% (39.42% for the
six-month period ended June 30, 2022). The change in the effective tax rate for the six-month period
ended June 30 corresponds mainly to the impact of exchange differences in local currency.
As of June 30, 2023, and 2022, the income tax expense shown in the income statement is
composed as follows:

Current tax (45,533) (9,939) (28,579) 13,156
Deferred tax 7,608 (17,701) 5,250 (16,704)
(37,925) (27,640) (23,329) (3,548)
17
16. Financial Instruments
A. Carrying amounts and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy:
Carrying amount Fair value

Current Non-current
Amortized Other financial Amortized Other financial
In thousands of U.S. dollars cost liabilities cost liabilities Total Level 2
As of June 30, 2023
Financial assets not measured at
fair value
Cash 39,668 - - - 39,668 -
Trade receivables 103,109 - - - 103,109 -
Other receivables (*) 351 - - - 351 -
Account receivables from related parties - - 3,891 - 3,891 -
Financial liabilities not measured at
fair value
Trade payables - (54,145) - - (54,145) -
Other payables (*) (12,091) - - (12,091) -
Debentures - - - (992,709) (992,709) (952,637)
Lease liabilities from financial leases - (35,187) - (95,206) (130,393) (122,713)
Lease liabilities from operating contracts - (1,358) - (5,056) (6,414) -
143,128 (102,781) 3,891 (1,092,971) (1,048,733) (1,075,350)
(*) It does not include tax assets, tax liabilities, employee benefits and advances.
18
Carrying amount Fair value

Current Non-current
Amortized Other financial Amortized Other financial
In thousands of U.S. dollars cost liabilities cost liabilities Total Level 2
As of December 31, 2022
Financial assets not measured at
fair value
Cash 36,404 - - - 36,404 -
Trade receivables 102,812 - - - 102,812 -
Other receivables (*) 474 - - - 474 -
Account receivables from related parties 394 - 3,827 - 4,221 -
Financial liabilities not measured at
fair value
Trade payables - (62,828) - - (62,828) -
Other payables (*) - (11,909) - - (11,909) -
Account payables from related parties - (721) - - (721) -
Debentures - - - (991,742) (991,742) (942,332)
Financial leases - (37,238) - (110,461) (147,699) (140,173)
Operating contracts - (1,391) - (5,610) (7,001) -
140,084 (114,087) 3,827 (1,107,813) (1,077,989) (1,082,505)
(*) It does not include tax assets, tax liabilities, employee benefits and advances.
19
B. Fair value measurements
Valuation techniques and significant unobservable inputs

The following table shows the valuation techniques used in the determination of fair values of
financial instruments – Level 2 as at June 30, 2023, and December 31, 2022:
Financial instruments not measured at fair value
Interrelationship between
Key key unobservable inputs
Type Valuation techniques unobservable data and fair value
Loans from banks, Discounted cash flows using
debentures, and others current market interest rate Not applicable Not applicable
17. Related Party Transactions

A. Parent companies and ultimate parent Company
There are no changes in the parent and ultimate parent companies during the six-month period
ended June 30, 2023, in respect with December 31, 2022.
B. Transactions with key management
i. Loans to directors
As of June 30, 2023, and December 31, 2022, there are no loans to directors.
ii. Key management compensation
Transaction value Outstanding balances

June 30, June 30, June 30, December 31,
Short-term employee benefits 885 752 - -
Defined contribution plan 61 58 4 5
iii. Transactions with key management personnel

During the six-month period ended June 30, 2023, and 2022 there were no transactions between
the Company and key management other than those above in (ii).
C. Other related entities transactions

The Company has signed Management Services Agreements and Operation and Maintenance
Agreements (O&M) with its related companies. The Agreements are related to the services that the
Company provides for managing those companies´ operations.

In thousands of U.S. dollars Transaction type 2023 2022 2023 2022
Orazul Energy Peru S.A. Management service and - - - 159
O&M 4,486 3,870 - (721)
Orazul Energy Peru S.A. Other - reimbursement - 331 - -
Kondu S.A.C. Management service and O&M 226 - - 235
Samay I S.A. Management service and O&M
and others 17 66 - -
Samay I S.A. Acquisition of supplies - (11) - -
Aguaytía Energy del Perú S.R.L. Management service and O&M
and others 54 157 - -
Hidro Chilia S.A.C. Reimbursement of expenses - - 3,891 3,827
4,783 4,413 3,891 3,500
20
A summary of the transactions between the Company and the other related parties due to the sale
of energy and power during the period follows:

In thousands of U.S. Dollars Transaction type 2023 2022 2023 2022
Sales
Orazul Energy Peru S.A. COES 148 272 20 12
Termoselva S.R.L. (a) COES 14 56 - 5
Costs
Orazul Energy Peru S.A. COES (1,515) (2,662) (106) (116)
Kondu S.A.C. Other services (469) (199) (81) (50)
Samay I S.A. (a) COES (1,246) (5,444) - (2,001)
Samay I S.A. (a) Capacity purchase (189) (1,274) - (120)
Termoselva S.R.L. (a) COES (156) (114) - (16)
(3,413) (9,365) (167) (2,286)
(a) On February 3 and March 6, 2023, the Inkia Energy Group completed the sale of its
controlling interest in Samay I S.A. and OEG II S.A. (indirect owner of, Termoselva S.R.L. and
Aguaytía Energy del Perú S.R.L.), respectively. As a result of these transactions, Samay I S.A.,
OEG II S.A., Orazul Energy Hidrocarburos S.A., Termoselva S.R.L. and Aguaytía Energy del
Perú S.R.L. are no longer related parties of the Company.
The outstanding balances with related parties have current maturity and do not accrue interest.
None of these balances are guaranteed.
18. Contingencies
As of June 30, 2023, the main changes in contingencies since the most recent annual financial
statements are as follows:
Import Tax Assessment

Further to that stated in Note 27 of the Company’ annual audited financial statements, Kallpa had the
following updates in Kallpa I, Kallpa II – Statue Barred and Kallpa IV - Engineering:
Kallpa I
In June 2023, the Judicial Court informed the Company through its resolution, the SUNAT's
recalculation regarding the interest paid in excess, in alleged compliance with the corresponding
Supreme Sentence.
In July 2023, Kallpa filed an opposition against Judicial Court Resolution, since SUNAT did not
consider the interest generated from the date of the payment made by the claimants until the date
of their return, nor did it expressly indicate that its refund would be made.
The refund is still pending.
Kallpa II – Statue Barred

On September 20, 2018, SUNAT filed a demand against Tax Court Resolution Nº 01959-Q-2018,
through which the Tax Court recognized that the right to collect the payment related with the
customs tax debt expired on January 2, 2013.
21
Through Resolution Nº 16 of July 31, 2020, SUNAT’s claim was declared unfounded. SUNAT
appealed such resolution. On October 30, 2020, the Court overturned Resolution Nº 16 through its
new Resolution Nº 23 and order the lower court to issue a new statement. Through Resolution
Nº 27 of November 30, 2020, the Judicial Court declared the claim unfounded, obtaining a favorable
ruling for the Company. On December 17, 2020, the Tax Administration filed an appeal.
The Superior Judicial Court issued its Resolution Nº 39 on August 16, 2021, through which it
confirmed the judgment of the first judicial instance and declared SUNAT claim unfounded. In
response to this, on August 31, 2021, SUNAT filed a new appeal before the Supreme Court. The
hearing was held on April 13, 2023, in which Kallpa’s defense arguments were presented.
On April 25, 2023, Kallpa was notified with the Supreme Court Decision 00192-2022, confirming the
position of the Tax Administration.
During the last quarter, the Company reviewed the estimate reducing the liability from S/ 36,695
thousand (US$ 10,100 thousand) to S/ 29,345 thousand (US$ 8,077 thousand) including interest, and
such amount has been recognized in the profit and loss statement as of June 30, 2023, based on
the similarity with the Kallpa I, II, and III cases.
On June 7, 2023, Kallpa filed a Constitutional Protective Action (Amparo) before the Constitutional
Court against Decision 00192-2022, due to deficiencies in the motivation. With this process, the
Company seeks the Constitutional Court to override Decision Nº 00192-2022 and, therefore, have
the Supreme Court to issue a new decision.
Kallpa IV – Engineering
On March 8, 2023, the Judicial Court ruled against Kallpa regarding the annulment of the Fiscal
Court Resolution Nº 04631-A-2021. Kallpa filed its claim before de Superior Court on March 15,
2023.
On May 31, 2023, the Superior Court issued its Resolution Nº 19 related to the Kallpa IV case, which
declare Kallpa’s claim as groundless. Kallpa disagreed with this Court´s decision therefore on
June 14, 2023, filed its demand before the Supreme Court to override the Superior Court Decision
Nº 19.
Regarding Constitutional Protective Action (Amparo), on March 28, 2023, the Company
proceeding was filed before the Superior Court.
To date, both appeals are pending to be solved.
As of June 30, 2023, the total Import Tax Assessment recorded as receivable by Kallpa is as follows:
Amount Amount
Stage (In thousands of S/) (In thousands of US$)
Kallpa I (*) Tax Administration 3,114 859
Kallpa IV – Engineering (*) Supreme Court 42,928 11,846
Subtotal (note 5) 46,042 12,705
(*) There is formally no tax exposure since all taxes were paid.
19. Subsequent Events

Subsequent to June 30, 2023, there have been no events that may have an effect on the interim
financial statements of the Company.
22

Eeff Kallpa q2-2023

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Kallpa Generación S.A.

Unaudited Condensed Interim Financial Statements

We have reviewed the accompanying condensed statement of financial position of Kallpa

July 27, 2023

Ronald J. Villalobos (Partner)

Unaudited Condensed Interim Financial Statements

June 30, December 31, June 30, December 31,

Non-current assets Non-current liabilities

Six-month period Three-month period

Number of Share Additional Revaluation

Six-month period ended

1. Background and Business Activity and Other

Commercial operation Source used to operate Installed

2. Basis for the Preparation of Financial Statements

B. Significant Accounting Policies

C. Use of estimates and judgements

D. Measurement of fair values

Measurement of revaluation of property, plant and equipment

i. Fair value hierarchy

ii. Valuation techniques and significant unobservable inputs

June 30, December 31,

June 30, December 31,

(d) The aging of trade accounts receivable is as follows:

June 30, December 31,

June 30, December 31,

June 30, December 31,

In accordance with Management’s opinion, it is not necessary to recognize any impairment on

7. Property, Plant and Equipment

June 30, December 31,

June 30, December 31,

(c) Property, plant, and equipment includes right-of-uses assets as follows:

June 30, December 31,

(d) Distribution of depreciation was as follows:

Six-month period Three-month period ended

June 30, December 31,

June 30, December 31,

10. Other Payables and Income Tax Payables

June 30, December 31,

11. Loans from Banks, Debentures and Others

Nominal Face value Carrying amount

Total 1,132,002 1,149,539 1,123,102 1,139,441

Current portion Non-current portion Total

Total 35,187 37,238 1,087,915 1,102,203 1,123,102 1,139,441

As part of the transaction:

12. Asset Retirement Obligation

June 30, December 31,

Shareholders Number of shares %

June 30, December 31,

Six-month period Three-month period

15. Tax Issues

Six-month period Three-month period

16. Financial Instruments

A. Carrying amounts and fair values

Carrying amount Fair value

Carrying amount Fair value

B. Fair value measurements

Valuation techniques and significant unobservable inputs

Financial instruments not measured at fair value

17. Related Party Transactions

B. Transactions with key management

ii. Key management compensation

Transaction value Outstanding balances

iii. Transactions with key management personnel

C. Other related entities transactions