Cox ABG Group (COXG) investor relations material

Deal rationale and strategic fit

• Acquisition of Mexico's only integrated utility platform, combining generation, supply, and retail, with high entry barriers and a strong client base, aligns with long-term strategy and supports growth in priority regions, especially the Americas.

• Consolidates vertical integration, enhances scale, and increases cash generation capacity, reinforcing long-term value creation and strategic fit.

• Entry into a region with favorable demand-supply dynamics and underinvestment in generation, supporting long-term growth.

• Acquisition opens new opportunities in water assets and strengthens the integrated energy and water infrastructure focus.

• Complements existing activities in Mexico, positioning the country as a strategic hub for regional expansion.

Financial terms and conditions

• Transaction valued at $4 billion (EUR 3.5 billion), executed as announced in July 2025, with a structure combining EUR 850 million equity, EUR 2.65 billion bridge facility, hybrid capital, and bank financing.

• Equity portion: EUR 500 million from parent company, EUR 350 million from strategic partners (Allianz, Gramercy, GMO), supported by international investors and major financial institutions.

• Bridge facility refinanced via $2 billion 144A/Reg S bond (5x oversubscribed), with remaining $650-700 million secured as a term loan.

• Average cost of debt: 7.25%-7.5% (downstairs), 8%-9% (upstairs), with maturities of 3-7 years.

• Achieved public ratings of BBB- (Fitch) and Ba1 (Moody's) for new bond issuance.

Synergies and expected cost savings

• Pro forma 2025 revenue projected at €2,551 million and EBITDA at €786 million, doubling and tripling previous figures, with operating cash flow projected at €592 million.

• Acquisition enables margin optimization across generation and supply businesses and high cash generation capacity due to recurring income.

• Plug-and-play integration with existing management, minimizing integration costs and risks.