GEB Earnings Results 3Q 2017 November 23/2017

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1 GEB Earnings Results 3Q 2017 November 23/2017 1

2 Disclaimer The information provided herein is for informational and illustrative purposes only and is not, and does not seek to be, a source of legal, investment or financial advice on any subject. This presentation does not purport to address any specific investment objectives, financial situation or particular needs of any recipient. It should not be regarded by recipients as a substitute for the exercise of their own judgment. This information does not constitute an offer of any sort and is subject to change without notice. GEB is no obligation to update or keep current the information contained herein. GEB expressly disclaims any responsibility for actions taken or not taken based on this information. GEB does not accept any responsibility for losses that might result from the execution of the proposals or recommendations presented. GEB is not responsible for any content that may originate with third parties. GEB may have provided, or might provide in the future, information that is inconsistent with the information herein presented. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. This presentation may contain statements that are forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of Such forward-looking statements are based on current expectations, projections and assumptions about future events and trends that may affect EEB and are not guarantees of future performance. The shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act ) or any U.S. State securities laws. Accordingly, the shares are being offered and sold in the United States only to qualified institutional buyers as defined under Rule 144A under the Securities Act, and outside the United States in accordance with Regulation S of the Securities Act. We converted some amounts from Colombian pesos into U.S. dollars solely for the convenience of the reader at the TRM published by the SFC as of each period. These convenience translations are not in accordance with U.S. GAAP and have not been audited. These translations should not be construed as a representation that the Colombian peso amounts were, have been or could be converted into U.S. dollars at those or any other rates. 2

3 01 GEB Overview 02 Key Updates 3Q Expansion Projects Q&A Financial Performance 3Q 17 3

4 01 GEB Overview 4

5 GEB Corporate Structure 01 GEB generally controls its subsidiaries or partners with world class operators following a long track record of success. Urban Energy Solutions Interconnecting for Market Development Low Emission Generation VT 5

01 GEB s Strategic Business Units GEB is focused on natural monopolies in regulated sectors around three businesses, with a clear

5 Million of customers in Colombia Natural Gas Distribution Colombia 2.

5k Km of transmission grid 1,500 9,500 Electricity Transmission Km of transmission grid in Colombia Km of transmission grid in Perú 400

6 01 GEB s Strategic Business Units GEB is focused on natural monopolies in regulated sectors around three businesses, with a clear competitive strategy. Urban Energy Solutions - UES Total 6.0 Million of customers Electricity Distribution 3.5 Million of customers in Colombia Natural Gas Distribution Colombia 2.1 Million of customers Natural Gas Distribution Perú 500k Customers Interconnecting for Market Development - IDM Total 12.5k Km of transmission grid 1,500 9,500 Electricity Transmission Km of transmission grid in Colombia Km of transmission grid in Perú 400 1,100 Km of transmission grid in Centroamérica Km of transmission grid in en Brasil Natural Gas transportation 4,000 Km of pipelines Power Generation Low Emission Generation - LEG 23% Market share generation In Colombia 14,975 GWh Power generated in

7 Key Updates 02 3Q

8 02 Key Updates 3Q GEB Highest Dividends in History (1) On July 5 th the first payment of dividends of 50% of this year was made. Second payment was made on October 31 th. In total GEB paid COP$99 / share. On August 14 th finalized the first phase of the divestment in non-core assets. No bids were presented for the investments in Interconexión Eléctrica S.A. ESP - ISA; Banco Popular S.A. and Grupo Nutresa S.A. In the case of Promigas, some bids were presented which were assigned acoording to the process regulation. GEB reports that Ministerio de Hacienda y Crédito Público through Resolution No of 2017 authorized GEB to enter into an inter-company external loan with EEB Peru Holdings Ltd., a subsidiary of the Group, for up to USD$100,000,000. On October 12 th, Fitch Ratings affirmed the credit rating (BBB), with stable outlook of the corporate debt of Grupo Energía Bogotá S.A ESP and its Transportadora de Gas Internacional S.A ESP notes that corresponds to investment grade. On October 20 th, Completion of the Disposal Program of the Shareholding of Ecopetrol in Grupo Energía Bogotá S.A. E.S.P. On October 20 th, The Standard & Poor's agency maintains the credit rating of Empresa de Energía de Bogotá in investment grade and retained the "stable" perspective. On October 25 th, GEB changed their corporate denomination and launched the new brand. On November 15 th GEB issued a second tranche local bonds up to an initial amount of COP$650,000 millions. On November 21 th, 2017, GEB reached a new high share price of COP$2,070 pesos, with a target price of COP$2,181 by market analysts. (1) Normalized Dividends 8

9 02 Key Updates 3Q TGI The latest tariff methodology was approved by CREG Resolution No. 126 in August 2010 and became effective for TGI in December 2012 (CREG Resolution No. 121). The tariff methodology review process takes place every 5 years, but the current tariff application is usually delayed. The new regulation is expected to be approved in 4Q 2017, with the updated tariffs coming into effect in 2019 (the starting point for the 5 year-period is set by the CREG approval of the new tariff methodology). Resolution CREG 090/2016 which sets regulated WACC is currently under discussion with regulator. Expected final resolution will be in 4Q TGI s revenues are highly predictable, with approximately 96% coming from regulated tariffs that are reviewed at least every 5 years, ensuring cash flow stability and attractive rates of return Main sectors served by the Company (85% of revenues) present stable revenues patterns The Company enjoys excellent contract quality: 100% of TGI s contracts are firm contracts with an average remaining life of 8 years. 90% of LTM regulated revenues are fixed tariffs, not dependent on transported volume. 65% of LTM revenues are nominated in USD$. Only 34% nominated in local currency. 9

10 02 Key Updates 3Q Cálidda As of September 2017, Calidda has made more client connections than the achieved in all of (95,595 vs 93,227 clients). Calidda s client base and invoiced volume both increased as of Q by 28% and 4%, respectively, compared to Q s figures. Over the last twelve months, our network length was enlarged by 955 km, whereby the distribution system reached a total of 8,112 km of underground pipelines. Calidda revenues and EBITDA as of Q increased by 6% and 12% respectively, driven by more distribution revenues due to a higher client base and higher connection fees from the NGV segment. On the other hand we are currently working on our new business strategy. We have redesigned our organizational structure focusing on our new business vision. With this, we will ensure that our generating and support areas have the conditions to present our customers with effective energy proposals. In Q3 2017, the monthly average total volume of natural gas produced in Peru was 1,268 MMCFD (million cubic feet per day), showing a decrease of 13.0% when compared to the monthly average total volume produced in Q of 1,459 MMCFD. 10

11 Expansion 03 Projects 11

12 03 Expansion Projects Revenue growth has been sustained by a strong capex plan Executed Capex by Companies (1) (3Q 17 YTD USD Mm*) CTM 26,1% Emgesa 6,4% Codensa 25,9% TGI 8,6% Contugas 0,4% Cálidda 9,9% EEB Trans. 13,0% REP 3,5% Trecsa 4,1% EEBIS GTM 1,5% Gas Natural 0,7% Executed Capex by Segment (1) (3Q 17 YTD USD Mm*) Interconnecti ng For Market Development 57% Urban Energy Solutions 37% Low Emission Generation 6% Executed Capex by Country (1) (3Q 17 YTD USD Mm*) Executed Capex by Investment (1) (3Q 17 YTD USD Mm*) Perú 39,9% Guatemala 5,6% Associates 62,5% Subsidiarie s 37,5% Colombia 54,6% Source: Company filings * Figures include Controlling and Non Controlling companies YDT) (1) Excludes Brazil GEBBRAS Capex 12

13 03 Expansion Projects (Direct Invesment in Colombia) Revenue growth has been sustained by a strong capex plan Proyecto UPME Projects Update (3Q 17) Progress EAR (1) USD MM Date expected (On stream) Chivor II 56.9% /02/2018 Cartagena Bolívar 79.6% /12/2017 Río Córdoba 85.8% /12/2017 Armenia 97.0% /12/2017 Tesalia 89.0% /01/2018 Sogamoso Norte 56.3% /05/2019 La Loma 500kV 65.5% /06/2018 Refuerzo Suroccidental 27.7% /09/2018 Ecopetrol San Fernando 65.6% /06/2018 Río Córdoba Transformadores 94.7% /12/2017 La Loma STR 110kV 34.0% /06/2018 Conexión Drummond Ltd 73.7% /12/2017 Transformador Altamira 1.2% /03/2019 Ampliación La Loma 500 kv(2) 0.01% /06/ ,37 (1) Expected annual revenues. (2) The income of this project, which does not correspond to EAR, is recorded as use assets. Projects that currently generate income 13

14 03 Expansion Projects 2017p-2022 Investments Controlled Companies GEB Capex Profile (Forecast) (USD mm) Total Capex USD$1,85 Bn p 2018p 2019p 2020p 2021p 2022p Natural Gas Outside Natural Gas Colombia Electric Power Overseas Electric Power Colombia 14

15 inancial 04 erformance 3Q 17 15

16 04 Financial Performance Consolidated Results (as of 3Q 2017) Operating Revenue 3Q 17 YTD by Segment Operating Profit 3Q 17 YTD by Segment (1) (COP$2,386,098 Mm) 238,607 10% (COP$914,149 Mm) % Electricity Transmission Natural Gas Distribution Natural Gas Transportation 907,331 38% 1,240,160 52% Electricity Transmission Natural Gas Distribution % 233,044 26% As of 3Q 17 compared to 3Q 16 showed a slight increase of 1.1% Due to EEC was merged with Codensa since October 1st, 2016, revenues from the segment Electricity Distribution are reported within Codensa data, non-controlled subsidiary through equity method %; COP$ mm Electricity Transmission: coming on stream of UPME Projects recently awarded %; (COP$ mm) Natural Gas transportation: decrease in TGI s revenues due to higher gas volume contracted by thermo power generation sectors in 3Q 16 (El Niño Phenomenon). FX conversion effects. 8.4%; COP$ mm Natural Gas distribution: increase in Cálidda s revenues, mainly from new power generation and new industrial and residential clients. As of 3Q 17 compared to 3Q 16 operating profit showed a decrease of 22.8% Due to EEC merger effect on revenues and costs and lower income from natural gas transported volume due to Niño Phenomenon. +2.5%; (COP$2.732 mm) Electricity Transmission: higher revenues from new projects combined with controlled costs % (COP$ mm) Natural gas Transportation: Lower revenues also combined with higher costs from maintenance %; (COP$ mm) Natural gas distribution: higher revenues, combined with increase in costs due to new users, and industrial clients connected to Cálidda s network. N.B. Also some of the administrative expenses were redistributed in all of the business segments lines in terms of costs, which also explains the decrease in administrative expenses. 16 (1) Excludes administrative expenses & net of other expenses and gains.

04 Financial Performance Consolidated Results (as of 3Q 2017) 3Q 17 from EBIT to profit +43,4% COP$42,888 mm Finance income: Increased due to interest returns on financial investments.

17 04 Financial Performance Consolidated Results (as of 3Q 2017) 3Q 17 from EBIT to profit +43,4% COP$42,888 mm Finance income: Increased due to interest returns on financial investments. +0,2% COP$995 mm Finance expenses: Increased mainly to debt interest payments, and banking commissions. Local bonds issuance. -127,4%, (COP$190,374 mm) Net Exchange Difference: Net Exchange difference increase due to a devaluation during the period, which impacted assets and liabilities denominated in foreign currency. +6,32%, COP$ mm Equity Method: Increase in equity method of Associates mainly from Codensa due to Merger with EEC and Brazil subsidiaries. -66,6%, COP$286,000 mm Taxes: Due to deferred tax at the level of TGI. Foreign exchange effects. 11.3%, COP$125,652 mm Net Income: Increase due to operational results mainly the EEC merger effect and El Niño Phenomenon in TGI, financial income and equity method contribution from associates and net exchange difference. *SPL equity method: Share of profit loss for using equity method 17

18 04 Financial Performance Ebitda Evolution Q 2017 LTM Normalized Consolidated EBITDA (1) Consolidated EBITDA by Subsidiary (2) Operational Ebitda Dividends % 67% % 56% % 55% % 39% 61% 44% % 45% % 52% 48% 44% % 64% 36% 30% % 30% Cálidda, Contugás 19.07% TGI 38.09% Emgesa 11.79% Codensa 11.70% EEB Trans. Trecsa & EEBIS; 13.21% Gas Natural; 2,95% ISA, REP & CTM; 2,00% Promigas; 1,20% Consolidated EBITDA by Segment Q 17 LTM 791 USD$ Interconnecting For Market Development 54% Lower EBITDA from lower revenues due to the EEC merger effect and lower transported volume in TGI due to El Niño Phenomenon. Low Emission Generation Source: Company filings. Note: Figures for the years are presented under ColGaap standards. For 2014, 2015 & 2017 are presented under IFRS (1) Normalized for timing differences in dividends declared and paid excludes dividends declared based on an early close of Gas Natural, Emgesa and Codensa s financial statements. These figures are included in 2011, when such dividends would normally have been declared. Anticipated dividends declared by Codensa on first half 2011, were included in excludes dividends declared based on an early close of Gas Natural, Emgesa and Codensa s financial statements. These figures are included in 2015, when such dividends would normally have been declared. (2) EBITDA excludes EMSA contribution 12% Urban Energy Solutions 34% 18

04 2,40x Financial Performance Description of Indebetness (as of 3Q 2017) Net Debt / Consolidated Adjusted EBITDA (1)(2) Consolidated Adjusted EBITDA / Net Interest (1)(2) 2,56x 4,50x 2,84x 3,17x

19 04 2,40x Financial Performance Description of Indebetness (as of 3Q 2017) Net Debt / Consolidated Adjusted EBITDA (1)(2) Consolidated Adjusted EBITDA / Net Interest (1)(2) 2,56x 4,50x 2,84x 3,17x 3,07x 7,63x 7,40x 6,54x 6,56x 6,53x 2,25x 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 Consolidated Debt Composition Debt Maturity Profile (3)(4) (USD$ Mm) USD COP I PEN 2.2% 0.7% 99.3% 2.0% 98.0% 9.5% 1.0% 99.0% 90.5% (USD$ Mm) 600,9 800,7 772,4 3.4% 96.6% 6.4% 2.9% 93.6% 97.1% 1,543 1,737 1, % 2,218 3,009 2,803 2,567 2, ,0 44,7 63,2 328,7 66,0 8,7 8,7 8,7 4,4 83,9 53, Q Source: Company filings. (1) Covenant associated to this indicator is currently suspended since the bond EEB 2021 has investment grade, granted by two out of three risk rating agencies monitoring the latter. Covenant established in Offering Memorandum of USD749,000,000 EEB 6.125% Senior Notes due It includes anticipated dividends. (2) Increase is mainly explained by increase of foreign exchange (USD/COP movements). (3) 2019:Syndicated loan acquired by Contugas (USD342 mm) and additional indebtedness incurred by SPV in order to reacquire 31.92% shares of TGI IELAH (USD184 mm outstanding debt) Debt maturity profile as of Dec (4) 2024, 2032, 2042, corresponds to the local bond maturities denominated in Colombian Pesos. 19

20 05 Q&A 20

INVESTOR RELATIONS For more information about Grupo Energía Bogotá (GEB) contact our Investor Relations team: Felipe Castilla Canales +57 (1) 326 8000 Ext 1501 Sandra Jimenez +57 (1) 326 8000 Ext

21 INVESTOR RELATIONS For more information about Grupo Energía Bogotá (GEB) contact our Investor Relations team: Felipe Castilla Canales +57 (1) Ext 1501 Sandra Jimenez +57 (1) Ext 1827 CFO Financing & Investor Relations Advisor Julian Naranjo +57 (1) Ext 1536 Rafael Salamanca +57 (1) Ext 1675 Financing & IR Manager Financing & Investor Relations Advisor

22 Para uso restringido GRUPO ENERGÍA BOGOTÁ S.A. ESP. Todos los derechos reservados. Ninguna parte de esta presentación puede ser reproducida o utilizada en ninguna forma o por ningún medio sin permiso explícito de GRUPO ENERGÍA BOGOTÁ S.A ESP. 22

Grupo Energía de Bogotá

Grupo Energía de Bogotá 1Q 2017 Key Results and Developments May 23 rd 2017 1 Disclaimer The information provided herein is for informational and illustrative purposes only and is not, and does not seek