Grupo Nutresa S A : 1Q24 Separate Financial Statements

Grupo Nutresa S. A.

Condensed Separate Interim Financial Statements as of March 31ˢᵗ, 2024 and 2023

(Unaudited information)

Condensed Separate Interim Financial Statements

First Quarter

Separate Statement of Financial Position

As of March 31ˢᵗ, 2024 (Unaudited information) and December 31st, 2023 (values expressed in millions of Colombian Pesos)

	Notes		March 2024		December 2023
ASSETS
Current assets
Cash and cash equivalents	5	$	89	$	16.130
Trade and other receivables	6		18.354		8.371
Other assets			1.558		195
Total current assets		$	20.001	$	24.696
Non-current assets
Trade and other receivables	6		105		107
Investments in subsidiaries	7		6.417.784		6.518.697
Investments in associated	8		200.284		209.405
Equity investments at fair value			66.448		50.125
Deferred tax assets	9.4		209		-
Right-of-use assets			43		50
Other assets			15		19
Total non-current assets		$	6.684.888	$	6.778.403
TOTAL ASSETS		$	6.704.889	$	6.803.099
LIABILITIES
Current liabilities
Trade and other payables	10		16.408		188.588
Tax charges	9.2		3.909		3.542
Right-of-use liabilities			48		50
Employee benefits liabilities	11		3.694		3.895
Total current liabilities		$	24.059	$	196.075
Non-current liabilities
Employee benefits liabilities	11		2.671		2.655
Deferred tax liabilities	9.4		-		487
Right-of-use liabilities			-		5
Total non-current liabilities		$	2.671	$	3.147
TOTAL LIABILITIES		$	26.730	$	199.222
SHAREHOLDER EQUITY
Share capital issued			2.301		2.301
Paid-in-capital			117.170		117.170
Reserves			5.938.264		5.217.676
Retained earnings			(10.720)		3
Other comprehensive income, accumulated			427.183		546.139
Earnings for the period			203.961		720.588
TOTAL SHAREHOLDER EQUITY		$	6.678.159	$	6.603.877
TOTAL LIABILITIES AND EQUITY		$	6.704.889	$	6.803.099

The Notes are an integral part of the Condensed Separate Interim Financial Statements.

Carlos Ignacio Gallego Palacio	Jaime León Montoya Vásquez	Joaquin Guillermo Molina Morales
President	General Accountant	External Auditor - Professional Card No. 47170-T
	Professional Card No. 45056-T	Designed by PwC Contadores y Auditores S.A.S.

Grupo Nutresa

2

Condensed Separate Interim Financial Statements

First Quarter

Separate Comprehensive Income Statement

From January 1st to March 31ˢᵗ (values expressed in millions of Colombian Pesos) (Unaudited information)

	Notes	January-March		January-March
	2024		2023
Operating revenue		204.188		343.444
Portfolio dividends	$	-	$	126.963
Share of profit for the period of subsidiaries	7	213.237		221.339
Share of profit for the period of associates	8	(9.049)		(4.858)
Gross profit	$	204.188	$	343.444
Administrative expenses	12	(1.675)		(1.071)
Exchange differences on operating assets and liabilities	13	157		(42)
Other operating income, net		1		11
Operating profit	$	202.671	$	342.342
Financial income		4		8
Financial expenses		(129)		(404)
Exchange differences on non-operating assets and liabilities	13	(9)		(2)
Income before tax	$	202.537	$	341.944
Current income tax	9.3	-		(1)
Deferred income tax	9.3	1.424		1.700
Net profit for the period	$	203.961	$	343.643
Earnings per share (*)
Basic, attributable to controlling interest (in Colombian pesos)		445,57		750,71
(*) Calculated on 457.755.869 shares
OTHER COMPREHENSIVE INCOME
Items that are not subsequently reclassified to profit and loss of the period:
Equity investments at fair value		376		(127.854)
Income tax from items that will not be reclassified	9.4	(754)		-
Total items that are not subsequently reclassified to profit and loss of the period	$	(378)	$	(127.854)
Items that may be subsequently reclassified to profit and loss of the period:
Share of other comprehensive income of subsidiaries	7	(129.254)		95.809
Share of other comprehensive income of associates	8	(72)		1.386
Income tax from items that will be reclassified	9.4	25		(485)
Total items that may be subsequently reclassified to profit and loss of the period:	$	(129.301)	$	96.710
Other comprehensive income, net taxes	$	(129.679)	$	(31.144)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$	74.282	$	312.499
The Notes are an integral part of the Condensed Separate Interim Financial Statements.

Carlos Ignacio Gallego Palacio	Jaime León Montoya Vásquez	Joaquin Guillermo Molina Morales
President	General Accountant	External Auditor - Professional Card No. 47170-T
	Professional Card No. 45056-T	Designed by PwC Contadores y Auditores S.A.S.

Grupo Nutresa

3

Condensed Separate Interim Financial Statements First Quarter

Separate Comprehensive Income Statement

From January 1st to March 31ˢᵗ (values expressed in millions of Colombian Pesos) (Unaudited information)

Share capital	issued	Paid-in-capital		Reserves
Equity at December 31st of 2023	2.301		117.170	5.217.676
Profit for the period	-		-	-
Other comprehensive income for the period	-		-	-
Comprehensive income for the period	-		-	-
Transfer to accumulated results	-		-	-
Appropriation of reserves	-		-	720.588
Realization of other comprehensive income	-		-	-
Equity at March 31st of 2024	2.301		117.170	5.938.264
Equity at December 31st of 2022	2.301		546.832	4.818.785
Profit for the period	-		-	-
Other comprehensive income for the period	-		-	-
Comprehensive income for the period	-		-	-
Transfer to accumulated results	-		-	-
Cash dividends (Note 10)	-		-	(618.135)
Appropriation of reserves (Note 10)	-		-	883.029
Equity at March 31st of 2023	2.301		546.832	5.083.679

The Notes are an integral part of the Condensed Separate Interim Financial Statements.

Retained earnings 3 - -

-

720.588 (720.588) (10.723) (10.720)

3 - - -

883.029 - (883.029) 3

Earnings for

periodthe 720.588 203.961 -

203.961

(720.588) - - 203.961

883.029 343.643 - 343.643

(883.029) - - 343.643

Other

comprehensive income, accumulated 546.139 - (129.679)

(129.679)

- - 10.723 427.183

4.697.745 - (31.144) (31.144)

- - - 4.666.601

Total

6.603.877 203.961 (129.679)

74.282

- - - 6.678.159

10.948.695 343.643 (31.144) 312.499

- (618.135) - 10.643.059

Carlos Ignacio Gallego Palacio	Jaime León Montoya Vásquez	Joaquin Guillermo Molina Morales
President	General Accountant	External Auditor - Professional Card No. 47170-T
	Professional Card No. 45056-T	Designed by PwC Contadores y Auditores S.A.S.

Grupo Nutresa

4

Condensed Separate Interim Financial Statements

First Quarter

Separate Cash-flow Statement

From January 1st to March 31ˢᵗ (values expressed in millions of Colombian Pesos) (Unaudited information)

		January-March		January-March
		2024		2023
Cash flow from operating activities
Dividends received	$	178.184	$	112.108
Dividends paid (Note 10)		(154.264)		(108.257)
Collection from sales of goods and services		-		3
Payments to suppliers for goods and services		(1.689)		(894)
Payments to and on behalf of employees		(3.089)		(3.656)
Income taxes		(13)		(4)
Other cash (outflows) inflows		(19.173)		764
Net cash flow (used in) from operating activities	$	(44)	$	64
Cash flow from investment activities
Purchase of other equity instruments (Note 5)		(15.947)		-
Other cash inflows		4		8
Net cash flow (used in) from investment activities	$	(15.943)	$	8
Cash flow from financing activities
Interest paid		(38)		-
Paid leases		(7)		(7)
Other cash outflows		-		(3)
Net cash flow used in financing activities	$	(45)	$	(10)
(Decrease) increase in cash and cash equivalent from activities	$	(16.032)	$	62
Net foreign exchange differences (Note 13)		(9)		(2)
Net (Decrease) increase in cash and cash equivalents		(16.041)		60
Cash and cash equivalents at the beginning of the period		16.130		75
Cash and cash equivalents at the end of the period	$	89	$	135
The Notes are an integral part of the Condensed Separate Interim Financial Statements.

Carlos Ignacio Gallego Palacio	Jaime León Montoya Vásquez	Joaquin Guillermo Molina Morales
President	General Accountant	External Auditor - Professional Card No. 47170-T
	Professional Card No. 45056-T	Designed by PwC Contadores y Auditores S.A.S.

Grupo Nutresa

5

Condensed Separate Interim Financial Statements

First Quarter

Notes for the Condensed Separate Interim Financial Statements

A three-month Intermediate period, between January 1ˢᵗ and March 31ˢᵗ of 2024 and 2023, except for the Separate Statement of Financial Position, that is presented, for comparability purposes at March 31ˢᵗ, 2024 and December 31st, 2023.

(Values are expressed as millions of Colombian Pesos, except for the values in foreign currency, exchange rates, and number of shares).

Note 1. CORPORATE INFORMATION

1.1 Entity and corporate purpose

Grupo Nutresa S.A., (hereinafter referred to as: Grupo Nutresa, the Company, or Nutresa, indistinctly), is a corporation of Colombian nationality, incorporated on April 12, 1920, with its headquarters in the City of Medellin, Colombia; its terms expire on April 12, 2050. The Corporate Business Purpose consists of the investment or application of available resources, in organized enterprises, under any of the forms permitted by law, whether domestic or foreign, and aimed at the use of any legal economic activity, either tangible or intangible assets, with the purpose of safeguarding its capital.

The Company is the Parent of Grupo Nutresa, and constitutes an integrated and diversified food industry group that operates mainly in Colombia and Latin America.

The Annual Separate Financial Statements are the basis for the distribution of dividends and other appropriations by the Shareholders.

Conclusion of material agreements between shareholders

On 15 June 2023, a Framework Agreement and a contract for transactions in judicial proceedings were signed. The purpose of the Fram ework Agreement is: (i) for IHC, JGDB, and Nugil to hold a stake of not less than 87% of the shares of Grupo Nutresa S.A., once it has been split and excluded from investments in Sura and Argos (hereinafter "Nutresa Alimentos"; (ii) that Nutresa Alimentos ceases to be a shareholder in Sura and Argos; (iii) that IHC, JGDB, and Nugil cease to be shareholders in Sura; and (iv) that Sura and Argos cease to be shareholders in Nutresa Alimentos.

In order to fulfil the purpose of the Framework Agreement, it was agreed to carry out the following steps, which are subject to certain conditions:

a. The symmetrical split of the Company without dissolving, to separate the investments that the Company has in Sura and in Argos, so that both in Nutresa Alimentos and in the spin-off (the "Investment Company") there is total agreement of all current shareholders

of the Company in equal proportion to its share in the Company.

b. The registration of the Investment Company and its shares in the National Register of Securities and Issuers (RNVE) of the Financial Superintendence of Colombia (SFC) and the Colombian Stock Exchange (BVC).

c. Once the decisions have been taken by the assembly, the Company shall request the authorization of the SFC to carry out the Company and registration of the Investment Company and its shares in the RNVE and the BVC.

d. Once approved by the assembly the division and registration of the Investor Society and its shares in the RNVE and the BVC, IHC, JGDB, Nugil, Argos and Sura will sign a fiducia contract in order to contribute the actions that each has in Nutresa and Sura, according to corresponds to an autonomous heritage with compartments.

e. After the Division has been completed, Argos and Sura will launch a Takeover Offer (IPO) on the shares of Nutresa Alimentos, as follows:

i. The offer will be for minimum 1 share and maximum for the number of shares equivalent to 23,1% of the total shares of the Nutresa Food;

1. 1. The price will be a price equivalent to USD $12 per share;
   2. The price shall be payable in cash or, at the discretion of each of the accepting shareholders, in kind; and
   3. The payment in kind would consist of a combination of shares of Sura and the Investor Society as follows: 0,74 shares Sura ordinaries and 0,56 shares of the Investor Society for each share of Nutresa Alimentos.
2. Upon fulfilment of certain conditions, contributions received under the trust contract shall be returned to the parties, as appropriate.
3. The parties shall settle ongoing disputes and administrative proceedings.

Extraordinary Shareholders' Meeting of September 18, 2023, approval of Spin-off and Changes in the Framework Agreement

The following outlines what was approved and reported at the Extraordinary Shareholders Meeting:

Changes in the framework agreement:

During the shareholders' assembly, it was communicated that on Friday, September 15, 2023, the Company's Board of Directors approved modifications to the Framework Agreement concluded between Grupo Nutresa, IHC, Grupo Sura, Grupo Argos, JGDB, and Nugil on June 15. The approved changes do not alter the essence of the agreement and only modify some of the steps and operations that will be carried out to achieve the proposed objectives.

These modifications essentially consist of the following:

Grupo Nutresa

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Condensed Separate Interim Financial Statements

First Quarter

1. The exchange of shares between Grupo Sura, Grupo Argos, Nugil, IHC, and JGDB will take place through a direct exchange, replacing the initially planned fiduciary mechanism. This exchange will occur in two phases: a.) A first direct exchange, once the spin-off of Grupo Nutresa, relating to 77% of the shares of this company, is perfected, and b.) A second direct exchange that will take place after the completion of the Public Offering of Grupo Nutresa's shares.
2. It is established that the bidders in the Public Offering for the remaining 23% of the shares of Grupo Nutresa S.A. will be Grupo Sura, Grupo Argos, and an entity designated by IHC.

On December 11, Grupo Nutresa subscribed the amendment to the Framework Agreement entered into by the Company with IHC Capital Holding LLC, Grupo Argos S.A., Grupo de Inversiones Suramericana S.A., JGDB Holding S.A.S., and Nugil S.A.S.

Likewise, after verifying the occurrence of the contractual conditions required to continue with the spin-off process of the Company, Grupo Nutresa requested the Colombian Stock Exchange to suspend the trading of its shares (NUTRESA species) and the operations outside the Stock Exchange for the term of three (3) business days.

Trading of the shares was suspended as of December 12, 2023, until December 14, 2023, inclusive, which made it possible to execute the public deed by which the spin-off of December 14 was perfected.

On December 14, Grupo Nutresa subscribed Addendum No. 2 to the Framework Agreement entered into with IHC Capital Holding LLC ("IHC"), Grupo Argos S.A. ("Argos"), Grupo de Inversiones Suramericana S.A. ("Sura"), JGDB Holding S.A.S. ("JGDB") and Nugil S.A.S. ("Nugil"), whereby the parties agreed that the first exchange of shares to be carried out between Sura, Argos, Nugil, JGDB, Nugil, JGDB and IHC may begin once the public deed of spin-off of Grupo Nutresa S. A. is registered in the Commercial Registry.

Additionally, the parties agreed that the procedures to initiate the tender offer (tender offer) for the spin-off company (Grupo Nutresa S. A.) would be initiated no later than 15 business days following the later of (i) the first exchange of shares, or (ii) the commencement of trading of the shares of Sociedad Portafolio S. A. on the Colombian Stock Exchange.

On December 15, Grupo Nutresa reported that public deed No. 3851 of December 15, 2023 was notarized and registered at the Medellin Chamber of Commerce for Antioquia, which clarified the public deed of spin-off No. 3838 of December 14, 2023, both from Notary Office 20 of Medellin.

Through the aforementioned deed, it was clarified that the shareholders of Sociedad Portafolio S. A. are all those existing investors and shareholders or those who had negotiated or carried out non-exchange operations of their shares of Grupo Nutresa S. A. at the close of the third (3) business day before the date of the public deed by which the Spin-Off Project was perfected, as listed in the list of shareholders attached to both deeds.

On January 9, 2024, Sociedad Portafolio informed that before its registration in the National Registry of Securities and Issuers and in the Colombian Stock Exchange, it adhered to the Framework Agreement, in compliance with the commitments established in the Framework Agreement.

Note 2. BASIS OF PREPARATION

The Condensed Separate Interim Financial Statements of Grupo Nutresa, for the period intermediate a three-month from January 1st to March 31ˢᵗ, 2024, have been prepared in accordance with the Accounting and Financial Information Standards, accepted in Colombia, based on the International Financial Reporting Standards (IFRS), together with its interpretations, conceptual framework, the foundation for conclusions, and the application guidelines authorized and issued, by the International Accounting Standards Board (IASB), until 2018 (Not included IFRS17) and other legal provisions, defined by the Financial Superintendence of Colombia.

2.1 Basis of measurement

The Condensed Separate Interim Financial Statements have been prepared on a historical cost basis, except for the measurements at fair value of certain financial instruments, as described in the accounting policies, herewith. The book value of recognized assets and liabilities, that have been designated as hedged items, in fair value hedges, and which would otherwise be accounted for at amortized cost and are adjusted to record changes in the fair values, attributable to those risks that are covered under "Effective hedges".

2.2 Functional and presentation currency

The Condensed Separate Interim Financial Statements in Colombian Pesos, which is both the functional and presentation currency of Grupo Nutresa. These figures are expressed in millions of Colombian Pesos, except for basic earnings per share and the representative market exchange rates, which are expressed in Colombian Pesos, as well as, other currencies (E.g. USD, Euros, Pounds Sterling, et al.), and which are expressed as monetary units.

2.3 Classification of items in current and non-current

Grupo Nutresa presents assets and liabilities, in the Statement of Financial Position, classified as current and non-current. An asset is classified as current, when the entity: expects to realize the asset, or intends to sell or consume it, within its normal operating cycle, holds the asset primarily, for negotiating purposes, expects to realize the asset within twelve months, after the reporting period is reported, or the asset is cash or cash equivalent, unless the asset is restricted for a period of twelve months, after the close of the reporting period. All other assets are classified as non-current. A liability is classified as current when the entity expects to settle the liability, within its normal operating cycle, or holds the liability primarily for negotiating purposes.

Grupo Nutresa

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Condensed Separate Interim Financial Statements

First Quarter

2.4 Going Concern

These condensed interim consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the reported carrying values and classification of assets, liabilities, and expenses that would be necessary if the going concern basis were not appropriate.

Note 3. SIGNIFICANT ACCOUNTING POLICIES

Grupo Nutresa applies the following significant accounting policies in preparing its Financial Statements:

3.1 Investments in subsidiaries

A subsidiary is an entity controlled by one of the companies that make up Grupo Nutresa Control exists when any of the Group companies has the power to direct the relevant activities of the subsidiary, which are generally: the operating activities and the financing to obtain benefits from its activities, and is exposed, or has rights, to those variable yields.

Investments in subsidiaries are measured in the Separate Condensed Financial Statements of Grupo Nutresa, using the equity method, according to the established regulations in Colombia, under which the investment is initially recorded at cost, and is adjusted with the changes in participation of Grupo Nutresa, over the net assets of the subsidiary, after the date of acquisition, minus any impairment loss of the investment. The losses of the subsidiary, that exceed Grupo Nutresa's participation in the investment, are recognized as provisions, only when it is probable that there will be an outflow of economic benefits and there is a legal or implicit obligation.

3.2 Investments in associates and joint ventures

An associate is an entity over which Grupo Nutresa has significant influence over financial and operating policies, without having control or joint control.

A joint venture is an entity that Grupo Nutresa controls jointly with other participants, where, together, they maintain a contractual agreement that establishes joint control over the relevant activities of the entity.

At the date of acquisition, the excess acquisition cost, over the net fair value of the identifiable assets, liabilities, and contingent liabilities, assumed by the associate or joint venture, is recognized as goodwill. Goodwill is included in the book value of the investment and is not amortized, nor is it individually tested for impairment.

Investments in associates or joint ventures are measured in the Separate Financial Statements, using the equity method, under which the investment is initially recorded at cost, and is adjusted with changes of the participation of Grupo Nutresa, over the net assets of the associate or joint venture after the date of acquisition minus any impairment loss on the investment. The losses of the associate or joint venture, that exceed Grupo Nutresa's shares in the investment, are recognized as a provision, only when it is probable that there will be an outflow of economic benefit and there is a legal or implicit obligation.

When the equity method is applicable, adjustments are made to homologize the accounting policies of the associate or joint venture with those of Grupo Nutresa The portion that corresponding to Grupo Nutresa of profit and loss, obtained from the measurement of at fair value, at the date of acquisition, is incorporated into the Financial Statements, and gains and losses from transactions between Grupo Nutresa and the associate or joint venture, to the extent of Grupo Nutresa´s participation in the associate or joint venture. The equity method is applied from the date of the acquisition, to the date that significant influence or joint control over the entity is lost.

The portion of profit and loss, of an associate or joint venture, is presented in the Statement of Comprehensive Income, for the period, net of taxes and non-controlling interest in the subsidiaries of the associate or joint venture. The portion of changes, recognized directly in equity and other comprehensive income of the associate or joint venture, is presented in the Statement of Changes in Equity and other comprehensive income. Cash dividends received, from the associate or joint ventures, are recognized by reducing the book value of the investment.

Grupo Nutresa periodically analyzes the existence of impairment indicators and, if necessary, recognizes impairment losses of the associate or joint venture investment. Impairment losses are recognized in profit and loss and are calculated as the difference between the recoverable amount of the associate or joint venture, which is the higher of the two values, between the value in use and its fair value minus cost to sell, and the book value.

When the significant influence over an associate or joint control is lost, Grupo Nutresa measures and recognizes any retained residual investment, at fair value. The difference between the book amount of the associate or joint venture, (taking into account the relevant items of other comprehensive income) and the fair value of the retained residual investment at its value from sale is recognized in profit and loss, for the period.

3.3 Foreign currency

Transactions made in a currency other than the functional currency of the Company are translated, using the exchange rate at the date of the transaction. Subsequently, monetary assets and liabilities denominated in foreign currencies are translated, using the exchange rates at the closing of the Financial Statements and taken from the information published by the official body responsible for certifying this information. Non-monetary items, that are measured at fair value, are translated, using the exchange rates on the date when its fair value is determined, and non-monetary items that are measured at historical cost, are translated using the exchange rates determined on the date of the original transaction.

All exchange differences, arising from operating assets and liabilities, are recognized on the Income Statement, as part of income and operating expenses. Exchange differences in other assets and liabilities are recognized as income or expense, except for, monetary items that provide an effective hedge, for a net investment in a foreign operation, and from investments in shares classified as fair value through equity. These items

Grupo Nutresa

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Condensed Separate Interim Financial Statements

First Quarter

and their tax impact are recognized in "Other comprehensive income", until disposal of the net investment, at which time are recognized in profit and loss.

3.4 Cash and cash equivalents

Cash and cash equivalents, in the Statement of Financial Position and Statement of Cash Flows, include cash on hand and banks, highly liquid investments readily convertible to a known amount of cash, and subject to an insignificant risk of changes in its value, with a maturity of three months or less from the date of purchase. These items are initially recognized at historical cost and are restated to recognize its fair value at the date of each accounting year.

3.5 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and, simultaneously, to a financial liability or equity instrument of another entity. Financial assets and liabilities are initially recognized at fair value, plus (minus) the transaction costs directly attributable, except for those who are subsequently measured at fair value.

At initial recognition, Grupo Nutresa classifies its financial assets for subsequent measurement, at amortized cost or fair value, depending on Grupo Nutresa's business model for the administration of financial assets, and the characteristics of the con tractual cash flows of the instrument; or as derivatives designated as hedging instruments, in an effective hedge, accordingly.

1. Financial assets measured at amortized cost

A financial asset is subsequently measured at amortized cost, using the effective interest rate, if the asset is held within a business model whose objective is to keep the contractual cash flows, and the contractual terms of the same grants, on specific dates, cash flows that are solely for payments of principal and interest, on the value of outstanding capital. The carrying amount of these assets is adjusted by any estimate of expected and recognized credit loss. Income from interest of these financial assets is included in "interest and similar income", using the effective interest rate method.

Grupo Nutresa has determined that the business model for accounts receivable is to receive the contractual cash flows, which is why they are included in this category, the Group evaluates whether the cash flows of the financial instruments represent only capital and interest payments. In making this assessment, the Group considers whether the contractual cash flows are consistent with a basic loan agreement. That is, the interest includes only the consideration for the value of money over time, credit risk, other basic credit risks, and a profit margin consistent with a basic loan agreement. When the contractual terms introduce a risk, or volatility exposure, and are inconsistent with a basic loan agreement, the related financial asset is classified and measured at fair value, through profit or loss.

1. Financial assets measured at fair value with changes in other comprehensive income

The financial assets, held for the collection of contractual cash flows and for sales of the assets, where the cash flows of the assets represent only payments of principal and interest, and which are not designated at fair value, through profit or loss, are measured at fair value with changes in other comprehensive income.

For investments in equity instruments, that are not held for trading purposes, Grupo Nutresa chooses to irrevocably present gains or losses, from fair value measurement, in other comprehensive income. In the disposal of investments, at fair value, through other comprehensive income, the accumulated value of gains or losses is transferred directly to retained earnings and is not reclassified to profit or loss. Dividends received in cash, from these investments, are recognized in profit or loss for the period.

The fair values of share price investments are based on the valid quoted prices. If the market for a financial instrument is not active (or the instrument is not quoted on a stock exchange), the Company establishes its fair value using valuation techniques. These techniques include the use of the values observed in recent transactions, realized under the terms of free competition, the reference to other instruments that are substantially similar, analyses of discounted cash flows, and option models, making maximum use of market information, and giving the lesser degree of confidence possible, in internal information specific to the entity.

1. Financial assets measured at fair value through profit or loss for the period

The financial assets, different from those measured at amortized cost or at fair value, with changes in other comprehensive income, are subsequently measured at fair value, with changes recognized in profit and loss. A loss or gain on a debt instrument, that is subsequently measured at fair value, through profit or loss and is not part of a hedging relationship, is recognized in the Income Statement, for the period in which it arises, unless it arises from instruments of debt that were designated at fair value, or that are not held for trading.

1. Impairment of financial assets at amortized cost

The Group evaluates, in a prospective manner, the expected credit losses associated with the debt instruments, recorded at amortized cost and at fair value, through changes in other comprehensive income, as well as with the exposure derived from loan commitments and financial guarantee contracts. The Group recognizes a provision for losses, at each presentation date. The measurement of the expected credit losses reflects:

• An unbiased and weighted probability quantity, that is determined by evaluating a range of possible outcomes;
• The value of money in time; and
• Reasonable and supported information, available without incurring undue costs or efforts, on the filing date, with regard to past events, current conditions, and future economic condition forecasts.

1. Derecognition

A financial asset, or a part of it, is derecognized, from the Statement of Financial Position, when it is sold, transferred, expires, or Grupo Nutresa loses control over the contractual rights or the cash flows of the instrument. A financial liability, or a portion of it, is derecognized from the Statement of Financial Position, when the contractual obligation has been settled, or has expired. When an existing financial liability is replaced

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Condensed Separate Interim Financial Statements

First Quarter

by another, from the same counterparty, on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability, and the recognition of a new liability, and the difference, in the respective book value, is recognized in the Comprehensive Income Statement.

1. Modification

In some circumstances, the renegotiation, or modification of the contractual cash flows, of a financial asset, may lead to the derecognition of an existing financial asset. When the modification of a financial asset results in the derecognition of an existing financial asset, and the subsequent recognition of a modified financial asset, it is considered a new financial asset. Accordingly, the date of the modification will be treated as the date of initial recognition, of that financial asset.

1. Financial liabilities

Financial liabilities are subsequently measured at amortized cost, using the effective interest rate. Financial liabilities include balances with suppliers and accounts payable, financial obligations, and other derivative financial liabilities. This category also includes those derivative financial instruments, taken by the Group, that are not designated as hedging instruments, in effective hedging.

Financial obligations are classified as such, for obligations that are obtained by resources, be it from credit institutions or other financial institutions, in the country or abroad.

Financial liabilities are written-off in accounts when they are canceled, that is, when the obligation specified in the contract is met, canceled, or expires.

1. Off-settingfinancial instruments

Financial assets and financial liabilities are offset, so that the net value is reported on the Statement of Financial Position of the Separate, only if (i) there is, at present, a legally enforceable right to offset the amounts recognized, and (ii) there is an intention to settle on a net basis, or to realize the assets and settle the liabilities, simultaneously.

3.6 Taxes

This heading includes the value of mandatory general-nature taxation in favor of the State, by way of private closeouts, that are based on the taxes of the fiscal year, and responsibility of each company, according to the tax norms of national and territorial governing entities, in the countries where Grupo Nutresa operate.

1. Income tax

1. Current

Current assets and liabilities, generated from the income tax, for the period, are measured by the values expected to be recovered or paid to the taxation authorities. Expenses for income tax is recognized under current tax, in accordance with the tax clearance, between taxable incomes and accounting profit and loss, impacted by the rate of income tax in the current year, in accordance with the effective tax rules in each country. Taxes rates and tax norms or laws used to compute these values are those that are approved at the end of the reporting period, over which it is reported. Current assets and liabilities, from income tax are compensated for, if related to the same Fiscal Authority, and whose intention is to settle for a net value or realize the asset, and settle the liability, simultaneously.

(Ii) Deferred

Deferred income tax is recognized, using the liability method and is calculated on temporary differences between the taxable bases of assets and liabilities in and book value. Deferred tax liabilities are generally recognized for all temporary tax differences imposed, and all of the deferred tax assets are recognized, for all temporary deductible differences, future compensation of tax credits, and unused tax losses, to the extent that it is likely there will be availability of future tax profit, against which, they can be attributed. Deferred taxes are not subject to financial discount.

Deferred asset and liability taxes are not recognized, if a temporary difference arises from the initial recognition of an asset or liability, in a transaction that is not a business combination, and at the time of the transaction, it impacted neither the accounting profit nor taxable profit and loss; and in the case of deferred tax liability, arising from the initial recognition of goodwill.

The deferred tax liabilities, related to investments in associates, and interests in joint ventures, are not recognized when the timing of the reversal of temporary differences can be controlled, and it is probable that said differences will not reverse in the near future, and the deferred tax assets related to investments in associates, and interests in joint ventures are recognized only to the extent that it is probable that the temporary differences will reverse in the near future, and it is likely the availability of future tax profit, against which these deductible differences, will be charged. Deferred tax liabilities, related to goodwill, are recognized only to the extent that it is probable that the temporary differences will be reversed in the future.

The book value of deferred tax assets is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available for use, in part or in totality, or a part of the asset, from said tax. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized, to the extent that it is probable that future taxable profit income is likely to allow for their recovery.

Assets and liabilities from deferred taxes are measured at the tax rates, that are expected to be applicable, in the period when the asset is realized, or the liability is settled, based on income tax rates and norms, that were approved at the date of filing, or whose approval will be nearing completion, by that date.

The deferred tax is recognized in profit and loss, except that one related to items recognized outside profit in these cases it will be presented directly in reserves and retained earnings in equity.

Grupo Nutresa

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