Investor Report 3Q 2014

Transcription

1 Bogotá D.C., November 6, 2014 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND HIGHLIGHTS Overview of electricity and Natural Gas Sectors Served Summary of Financial Results EEB Highlights of EEB and Grupo Energía de Bogotá FINANCIAL PERFORMANCE OF GRUPO ENERGÍA DE BOGOTÁ PERFORMANCE OF CONTROLLING COMPANIES DECSA EEC Transportadora de Gas Internacional-TGI CALIDDA CONTUGAS TRECSA EEBIS Guatemala y Perú PERFORMANCE OF COMPANIES WITHOUT CONTROL EMGESA CODENSA PROMIGAS GAS NATURAL REP y CTM Perú Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report Annex 2: Clarifications Annex 3: Definitions of EBITDA / Consolidated adjusted EBITDA reconciliation Annex 3: EEB Consolidated Adjusted EBITDA LTM and Quarterly Annex 4: Link to EEB s consolidated and stand-alone financial statements Anexo 5: Technical and regulatory terms Annex 6: Tables and graphics footnotess Annex 7: Overview of EEB... 32

2 1. EXECUTIVE SUMMARY AND HIGHLIGHTS 1.1 Overview of electricity and Natural Gas Sectors Served Table N 1 Overview of the electricity 3Q 14 Colombia Peru Guatemala Installed Capacity MW 14,700 ND 2,979 Demand GWh 16,277 3,491 2,393 Demand Growth 3Q 14 / 3Q 13 - % Growth Drivers 3Q 14 / 3Q 13 The growth of electricity demand presented a higher growth driven by regulated and unregulated markets. Likewise, mining and quarrying grew 21.8% the second-highest growing sector. Two power plants recently began operation (i) El parque Eólico Marcona (Ica) in late April/2014 with an installed capacity of 32 MW; (ii) Huanza hydroelectric plant, which began producing at 100% capacity in May/2014. The Huanza hydroelectric belongs to Egehuanza, a subsidiary of Cia. De Minas Buenaventura and provides 90.6 MW to the system Economic and population growth Sources: XM, UPME, COES Perú, AMM Guatemala * Value extracted from the COES Annual Statistics of Table N 2 Overview of the natural gas sectors 3Q 14 Colombia Reserves,proved and probable TPC (2012) Domestic demand 1,007 GBTUD 1,142 MMPCD Change in domestic demand 3Q 14/ 3Q13 - % Explanation for demand variation Demand has increased by the growth of domestic demand and consumption of Vehicular natural gas -NGV- and Thermoelectric generation. Regarding NGV consumption, its growth was driven by the conversion of vehicles from gasoline to natural gas. The thermoelectric consumption, which experienced a slight increase of 3.7%, mainly due to the low probability of occurrence of El Niño phenomenon in the third quarter, increasing the consumption of this sector to a lesser extent. Peru The rate of change in demand is mainly due to less gas being exported even though domestic consumption, especially consumption by power generators, has indeed had an increase of approx. 27MMPCD Sources: UPME, CON, MEM, Osinergim, Concentra.

3 1.2 Summary of Financial Results EEB Table N 3 EEB s consolidated financial indicators COP Millons 3Q 14 3Q 13 Operating revenue 1,708,003 1,451,107 Operating income 610, ,747 Consolidated Adjusted EBITDA Qtrly 255, ,733 Consolidated Adjusted EBITDA LTM 1,976,886 1,668,543 Dividends and reserves declared to EEB 892, ,853 Net income 936, ,297 Dividends and reserves declared by EEB 590, ,604 Latest internacional credit ratings L/T: S&P August 14 BBB-; stable Fitch October 14 BBB; stable Moody s - August 14 Baa3; positive Grupo Energía de Bogotá reported its net income results for, which grew by 19.4% when compared to the same period in 2013, reaching COP 936,690 million, whereas operational income grew by 14%, totaling COP 610,649 million. The natural gas transportation business in Colombia, operated by Transportadora de Gas Internacional S.A. ESP (TGI), continues leading results with a contribution of 68% in terms of generation of operating profit, followed by the natural gas distribution business in Peru, contributing with 30%. On the other hand, the most dynamic business segments in terms of growth were natural gas distribution in Peru, equivalent to COP 22,865 million (+49%), and electric power distribution in Colombia, with COP 6,365 million (+21.6%). Non-operational results grew by 35%, when compared to the first nine months of 2013, mainly by growth in dividends declared on non-consolidated affiliates by 11.6%. Also, profit of the foreign exchange account (accounting effect) decreased by 45.8% vis-a-vis the same period in 2013, explained mainly by re-expressing in COP active and passive positions expressed in USD and due to devaluation during the reported period. EBITDA for the past twelve months as of September 2014 reached COP 1.9 trillion, representing growth of 18.5% vis-a-vis the same period in EBITDA YTD reached COP 1.6 trillion, representing growth of 13.5% when compared to EBITDA YTD of Highlights of EEB and Grupo Energía de Bogotá In the performance of the purchase transaction of a stake of 31.92% from The Rohatyn Group (formerly Citi Venture Capital International -CVCI) in Transportadora de Gas Internacional S.A. TGI- announced on 4 April 2014, Empresa de Energía de Bogotá S.A. E.S.P. EEB- incorporated the company Transportadora de Gas Iberoamericana S.L. domiciled in Madrid, Spain. The company Transportadora de Gas Iberoamericana S.L. was incorporated with an initial capital of TWO HUNDRED AND NINETY THREE THOUSAND NINE HUNDRED AND THIRTY FIVE EUROS ( ) EEB completed the acquisition of 31.92% of shares in Transportadora de Gas Internacional S.A- TGI- for USD 880 million announced to the market on 4 April EEB, through its recently incorporated special purpose vehicle Transportadora de Gas Iberoamericana S.L, acquired the company Inversiones en Energía Latino América Holdings, S.L.U.,-IELAH- owner of 31.92% of TGI shares. With this acquisition, EEB increased direct and indirect stake in TGI, up to a total of 99.97%. To that end, on 26 June 2014, EEB capitalized in USD 264 million the company Transportadora de Gas Iberoamericana S.L, -TGISL, special purpose vehicle incorporated in Spain by EEB for this transaction, as per the financing plan announced last April. To this capital contribution, USD 616 may be added in

4 short-term intercompany loans obtained by TGISL, to complete the total value of the transaction amounting to USD 880 million Progress on the NIIF implementation project was presented to the Board of Directors, and the latter authorized management to report the preliminary opening statements as of 1 January 2014, according to that set forth in Law 1314 of 2009, Decree 2784 of 2012 and Resolutions and Circulars issued by the Superintendence of Public Utility Services of Colombia and the Financial Superintendence of Colombia Transportadora de Energía de Centroamérica -TRECSA, subsidiary to Grupo Energía de Bogotá, was disbursed a USD 87 million loan granted by Citibank Guatemala for one year. These resources will be used to finance investments for the time span, related to the execution of PET , which purpose is the construction of approx. of 850 Km of high-pressure transmission lines and 12 new substations, as well as the enhancement of 12 existing substations. The purpose of this project is to provide the cheapest, more reliable and easily accessible energy service to the people of Guatemala Empresa de Energía de Bogotá S.A. ESP EEB in its capacity as sole shareholder of the company, Transportadora de Gas Iberoamericana, S.L.U. -TGI S.L.U- who is also the sole shareholder of Inversiones En Energía Latino América Holdings, S.L.U. (hereinafter, IELAH ), informs that on 12 August 2014, the sole shareholders of the previously mentioned companies approved the merger by inversed absorption between IELAH, as absorbing entity and its sole shareholder, TGI S.L.U., as the absorbed company. As a result thereof, IELAH will subrogate to the position of TGI S.L.U, which will extinguish without winding up. Transferring by means of universal succession all its assets and liabilities to its fully participated subsidiary, IELAH. As per the foregoing, on 19 August 2014 was granted the deed and presented in the Mercantile Registry of Madrid by inscription, therefore this date will be the official date for all legal effects The rating assigned by Moody s to Empresa de Energía de Bogotá S.A. ESP (EEB), head of Grupo Energía de Bogotá, was ratified as investment grade at Baa3, while its perspective was raised from stable to positive. Such change reflects the expectation of a disciplined execution of the current investment plan , valued in USD 7.5 billion, and anticipated prudent financing of its future growth investments. Moody s highlighted the adequate capital structure of the Company, which considers the use of debt at the level of its subsidiaries, equity and resources from partners, allowing it to maintain long-term metrics adjusted to investment grade. Similarly, the rating agency acknowledges the strength of the Group thanks to its constant flow of dividends of non-controlled companies and moderate indebtedness of EEB and its controlled companies. In addition it highlights that in the short-term there might be an improvement in such rating due to the completion of some projects currently underway, both by controlled subsidiaries and non-consolidated affiliates are complete, and which coming on stream is foreseen for next year. Another factor to consider such improvement would be the successful refinancing of loans for the acquisition of 31.92% of Transportadora de Gas Internacional S.A. ESP (TGI), at this subsidiary level The risk rating agency, Standard and Poor s -S&P- upgraded foreign and local long term debt rating of Empresa de Energía de Bogotá S.A. ESP (EEB) from BB+ to BBB-, which correspond to investment grade. In addition, S&P affirmed EEB and Transportadora de Gas Internacional S.A. ESP TGI- rating as corporate issuers, maintaining for both companies BBB- with stable outlook. The improved rating of EEB s corporate debt, comprising mainly by the international bond Reg. S/144a amounting to USD 749 million due on 2021, derives from the mitigation of the structural subordination resulting from the geographic diversity and the regulated business in which EEB operates, from the operating assets it maintains at headquarter level and its moderate debt concentration at the TGI level. S&P indicates that as a result of the foregoing, EEB has the necessary endorsement before the potential

5 events of financial stress. Similarly, it highlights that the company maintains a business risk profile deemed as satisfactory given its involvement in regulated business, an adequate competitive position and a constant dividends stream from non-controlled companies. At the same time, the rating agency highlights the intermediate nature of its financial risk profile and adequate cash levels, resulting in optimal long-term credit metrics EEB, head of Grupo Energía de Bogota was included for the third year in a row in the Dow Jones Sustainability Index DJSI- for emerging markets. This time, EEB moved up five points vis-à-vis last year, from 66 points in 2013 to 71 points in These results locate EEB among the leading companies in sustainability worldwide, in social, environmental and economic issues. The DJSI is the most important sustainability index at international level and constitutes a benchmark for these investors who adhere to the sustainability guidelines within their investment portfolios. In addition, it provides an effective platform to involve companies that would like to adhere to the best sustainability practices EEB disbursed, through a special purpose investment vehicle in Energía Latino América Holdings S.L. (IELAH), the resources of a long-term syndicate loan entered into with international Banks led by BBVA, Itaú and Scotiabank, for an amount of USD 645 million. These proceeds were used to repay short-term intercompany loans granted to IELAH by EEB and some of its subsidiaries to finance the purchase transaction of 31.92% of TGI, announced last 2 July. The conditions of the new loan entered into by IELAH, include a term of five years, one bullet payment at the end at an interest rate of Libor % The Board of Directors of EEB, with the aim of improving the Company s relations with its partners EMGESA and CODENSA and maintain the growth pace, soundness and expansion of the company in recent years, in Colombia and abroad, decided to change management, appointing Mr. Ricardo Roa Barragán, former General Manager of TGI, one of the most important subsidiaries of Grupo Energía de Bogotá-GEB-, as CEO, with whom it will ensure management continuity The Board of Directors of Empresa Energía de Bogotá EEB-, head of Grupo Energía de Bogotá, during its session held on 1 st October decided to authorize the Company s legal representative to enter into an irrevocable commitment granted to its subsidiary Contugas. Also, it authorized the same to enter into the documents and contracts required so that EEB may grant a subordinate loan by means of an intercompany loan to Contugas for an amount of up to USD 11.5 million : Last 17 June 2014, the Colombian Environmental Authority - Autoridad Nacional de Licencias Ambientales (ANLA), delivered the environmental license to Upme Project, Armenia Substation 230 kv and 38 km of related transmission lines, allowing the company to begin its construction. The areas of influence of said project comprise the municipalities of Circasia and Filandia, in the Quindío department, and Dosquebradas, Santa Rosa de Cabal and Pereira, in the department of Risaralda. As a protection measure of the Conservation District of Barbas Bremen, which has generated concern among the peoples of Quindio, EEB with the authorization granted by ANLA defined that the towers be installed in the District boundaries and will be located in already brownfield areas, where agricultural and other economic activities are currently undertaken and will not be place in forests or preserved areas : The Energy Mining Planning Unit - Unidad de Planeación Minero Energética - UPME, awarded Empresa Energía de Bogotá (EEB), head of Grupo Energía de Bogotá, UPME project, Río Córdoba Substation, which contemplates selecting an investor for the design, supply, construction, operation and maintenance of the 220 KV substation in the whereabouts of the municipality of Ciénaga, department of Magdalena, and its related transmission lines. The proposal of EEB was selected after offering the best present value of the annual expected revenues during the next 25 years, corresponding to USD 14.7 million. The objective of the project is to improve the

6 operating restriction in the Caribbean region in the short-term, as there is depletion in the capacity of its networks, due to growth of demand in the area, generating low pressures, pressure surges and no reliability of service : Fitch Ratings upgraded Empresa de Energía de Bogotá S.A. ESP (EEB) rating in foreign and local term debt, from BBB- to BBB, with stable outlook. The rating also applies to the international bond amounting to USD 749 million due on As a total scale, Fitch Ratings also confirmed EEB s rating of AAA (col), the highest in loan quality. In its press release, Fitch highlights the stable generation of EEB s cash flow, its sound competitive position and its adequate levels of leverage and cash, resulting from a constant flow of dividends coming from its subsidiaries, mainly Codensa, Emgesa and TGI, together with the dynamic growth strategy of the company. The rating agency also highlighted the diversification of the energy portfolio of investments EEB currently holds, which risk is low and future revenues are highly predictable as its business operates under a regulated and natural monopoly. TGI Transportadora de Gas Internacional, TGI, subsidiary of Grupo Energía de Bogotá, acquired 7.78% of the share in Oleoducto of the Pacific, a project intended to transport heavy oil from the Llanos Orientales to Buenaventura and ultimately export it to the markets of Asia Pacific and the western coast of North America. The construction of Oleoducto al Pacífico (OAP), which is to cross the three mountain ranges to connect San Martín (Meta) and Buenaventura (Valle del Cauca), with an approximate cost of USD 5,000 million, is expected to be in operation in The diameters of this 760 km length pipeline range between 30 and 36 inches and its six pumping substations are expected to transport between 250 and 400 barrels of oil per day. The partners of Colombian company Oleoducto al Pacífico SAS are Talisman, Vitol, ISA, CENIT, Enbridge, and TGI The transaction to purchase 31.92% of the company at the hands of The Rohatyn Group, by means of a special purpose vehicle Inversiones en Energía Latino América Holdings, S.L.U., IELAH, domiciled in Spain, through which The Rohatyn Group maintained its investment in TGI. Once the transaction was completed, EEB s direct and indirect stake increased to 99.97% Regarding TGI, S&P ratified the corporate debt rating and of issuer in BBB- with stable outlook, underlining the company s strengths as it operates in stable regulatory environments and its long term capacity to reduce its debt, due to its flexible financial and commercial structure, especially after the recent expansion in its natural gas transportation capacity in Colombia During its extraordinary session the General Shareholders Assembly approved the distribution of profits project for an amount of approximately COP 516,500 million (100% of the net profit, January August 2014), corresponding a dividend of COP 3,299 per share. The Board authorized changes to the rate, term and periodicity of payment of intercompany loans entered into with headquarters. The Board approved the execution of the Cusiana - Vasconia Phase III expansion project, which comprises the supply, transportation, nationalization and start-up of new natural gas compression units (Miraflores, Puente Guillermo and Vasconia). Estimated investment is USD 31.6 million. The Mariquita Gualanday project and the bi-directional gas pipeline Ballena Barracabermeja project, will not be executed given that to date there are not enough carriers to make its execution viable. In the event new demand develops, its implementation will be analyzed once more. To date, average transported volume in TGI s infrastructure amounts to Mmpcd, exceeding the company s initial company s forecast.

7 TGI maintains a market share of 48.2% at the closing of, in terms of transported volume : Fitch Ratings raised the corporate debt and issuer ratings from BBB- to BBB, with stable perspective. This improvement in the rating will also apply to its international bond amounting to USD 750 million and due on Fitch highlighted TGI s strengths as it operates in stable regulated environments and due to its long-term capacity to reduce its indebtedness level, due to the flexibility of its financial and commercial structure. The rating highlighted the fact that TGI maintain a stable and predictable generation of cash, as its rate structure in force remunerates investments, 60% of its total revenues are indexed to USD, in addition it maintains long-term contracts with main carriers. Cálidda During July 2014, Osinergmin Resolution was published, which modifies tariffs defined in May 2014 therefore all invoices have been adjusted to include these changes. During July 2014, the first cluster industry of Puente Piedra was enabled. This cluster in located in the extreme north of Lima and the first stage will group 11 new industries. In addition it enabled the second measurement station for Minera Luren, which monthly consumption is 1.4 mmpcd and it also enable the service of Hospital del Niño, which consumption is estimated in 45,000 m3/month. During September, 15 new contracts were entered into with the industry and NGV; however these contracts will be recorded as sales during October 2014, once all clients pay their connection rights. Contugas In August 2014, Osinergmin pre-published their first valuation of the pipeline Egasa and Egesur and final valuation was issued in October 10 th In addition, it is estimated that during 4Q 2014 the Ministry of Energy will release the inclusion of Egasa and Egesur on the resolution DS (compensation mechanism ). This will allow Contugas to charge the distribution fee. Contugas is currently negotiating an addendum to the Camisea Consortium (Gas Producer) to adjust the gas curve in the Supply Contract. It is estimated that in 4Q 2014, such addendum is signed. In connection with the amendment to the distribution BOOT contract in the department of Ica, to date it has been agreed with the General Hydrocarbons Directorate the subscription of the first addendum to the mentioned contract. This modification to the contract is of paramount importance of the company s activities, as it eliminated the generation of possible contingencies and/ or challenges by the Peruvian Government. To date, we are waiting the Ministry s Resolution empowering the Peruvian Government to enter into such addendum.

8 2. FINANCIAL PERFORMANCE OF GRUPO ENERGÍA DE BOGOTÁ Table N 4 EEB s Consolidated Financial Results COP Million Var USD Million 3Q 14 3Q 13 % 3Q 14 3Q 13 Operating revenue 1,708,003 1,451, Cost of sales -910, , Gross profit 797, , Operating expenses -187, , Operating profit 610, , Dividends 892, , Non- operating expenses 498, , Net income before taxes and minority interest 1,108, , Minority interest , Provision for income tax -135,623-67, Net income 936, , Consolidated operational revenues grew by 17.7% at September 2014 due to: ( ) Greater revenues from gas transportation in Colombia. TGI, due to its rate scheme in force, which remunerated the investment and is indexed to USD, which exchange rate devaluated vis-à-vis COP during the period under comparison ( ) Increases on distribution of revenues of natural gas Peru due to increased connections during the quarter in household and commercial clients enabled and connected to the Cálidda network and greater volume distributed and invoiced, ( ) due to internal installation sales of residential clients and on revenues on account of connection rights of industrial clients in Contugas. Operational profit grew at a lesser pace than operational revenues given that operational costs and expenses experienced a moderate increase in the value of outsourced operations (fees and services), consumption of supplies, personnel costs due to growth of plant and growth of infrastructure, which generated greater expenses on account of maintenance, depreciation and amortization. As a result of the foregoing, operational profit during reached COP 610,649 million, with growth in excess of 14% vis-à-vis the same period of the previous year. Regarding non-operational revenues and expenses, declared dividends of non-consolidated affiliates reached COP 892,317 million, due to good operational results of Emgesa, Codensa, Promigas and Gas Natural during On the other hand, reduced devaluation of COP during the first nine months of the year had a positive impact in the difference of the exchange rate account, moving from an expense of COP 200,998 million in 2013 to an expense of COP 109,007 million as of September 2014, as a result of re-expressing active and passive position expresses in USD, which only has accounting effects but it does not entail cash expenditures. Finally, net profit as of September 2014 closed at COP 936,690 million, which represents growth of 19.4% vis-à-vis the same period of the preceding year. Table N 5 EBB s Financial Indicators COP Millions USD Millions 3Q 14 3Q 13 Var % 3Q 14 3Q 13 Consolidated Adjusted EBITDA Qtrly 255, , Consolidated Adjusted EBITDA LTM 1,976,886 1,668, Consolidated EBITDA margin % 60.8% 61.2% 60.8% 61.2% Also, consolidated adjusted EBITDA LTM (of the last twelve months), which included dividends received from nonconsolidated affiliates, reached COP 1,976,886 million, representing an increase of 18.5% with respect to that

9 obtained in 2013, explained by (i) greater dividends and interests earned amounting to COP 188,776 million; (ii) improved operational performance by COP 40,378 million. Table N 6 EEB s Consolidated debt structure 3Q 14 Part. 3Q 13 Part. 3Q 14 3Q 13 COP COP USD USD % % Millons Millons Millions MIllions Financial debt in COP 107, , Financial debt in USD 5,978, ,820, , ,995.4 Derivates position 220, , Total Financial Debt 6,305, ,062, , ,128.6 Net Debt/Consolidated Adjusted EBITDA LTM OM: < Consolidated Adjusted EBITDA LTM/ Interest OM: > Total financial debt increased due to: (i) new debts with international Banks for USD 645 million in a special purpose financial vehicle IELAH; ii) Repayment of syndicate short-term loan in Contugas (USD 215 million) and disbursement of a new loan of USD 310 million -net USD 95 additional million-; iii) Re-opening of EEB 2021 USD 139 million bond, less repayment of debt with multilateral bank CAF, amounting to USD 14 million-; and (iv) new debt in EEC to finance investment plans. Figure No. 3 Debt Metrics Net Debt/ Consolidated Adjusted EBITDA Net Debt /Consolidated Adjusted EBITDA OM < Consolidated Adjusted EBITDA/ Interest Consolidated Adjusted EBITDA/Interest OM > Q 13 4Q 13 1Q 14 2Q 14 3Q 14 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14

10 In accordance to contract definitions of the notes contract issued by EEB in November 2011, leverage indicators and interests hedging operations are calculated based on Adjusted Consolidated EBITDA, which includes capital reductions received by EEB from its affiliates. Net leverage indicator was reduced due to increased EBITDA (+18.5%) and an increase in net debt of 72.7%. Interest coverage indicator shows a moderate reduction on account of growth of 18.5% on Adjusted EBITDA vis-a-vis an increase in net financial expense on account of interests (+5.5%). 3. PERFORMANCE OF CONTROLLING COMPANIES Table N 7 - Financial indicators of Controlled Investments 3Q 14 COP Millons USD Millonss EEB TGI Calidda EEB TGI Calidda Operating revenue 82, , , Operating income 46, , , EBITDA LTM 71, , , Net income 29, ,793 59, Table N 8 - Overview of the EEB group-controlled companies expansion projects Project / Company Country Sector USD MM Status In Operation: La Sabana TGI Colombia T GN 55 In operation In operation ICA Perú Contugas Perú T + D NG 358 In operation In operation Lima Callao Cálidda Perú D NG network expansion- 500 Under Construction Guatemala TRECSA Guatemala T E 373 Under Construction Substations EEB Colombia T E 638 Under Construction Ingenios EEBIS Guatemala T E 44 Under Construction 15 T: Transport; D: Distribution; NG: Natural Gas; E: Electricity

11 3.1. EEB Transmission Business Table N 9 EEB s selected transmission business indicators 3Q 14 3Q 13 Var % Operating income Qtrly COP MM 14,970 13, EBITDA Qtrly - COP MM 18,962 17, Investments COP MM 92,547 64, Infraestructure Availability- % (1) Compensation for unavailability - % (2) Maintenance program compliance - % (3) Participation in Colombia s transmission activity - % (4) Footnotes 6 Technical indicators show operating management stability of the company, maintaining compliance above those legally imposed without detriment to the Company. Period investments include some amounts related to the construction of expansion project in the Colombian National Transmission System. Progress of EEB investment projects in the Transmission Business: UPME NORTE Project: As of 30 September Detailed design of transmission lines has been concluded; progress at 100%. Environmental Diagnosis of Alternatives has been filed before ANLA on 31 October There is a delay of 178 days by ANLA regarding its opinion on the selected alternative. Progress is set at 37%. SVC TUNAL: As of 30 September Mounting of reactors, reactors and filters has been completed, under tests with power transformers, installation of grid and grounded grid and screen placement, mounting of 230kV lines, cabling and switchboard connection and yard equipment. Equipment individual tests will start on the third week of October. Progress is set at 83.1%.

12 UPME Cartagena-Bolívar Project: As of 30 September 2014, the initiation and planning stages of the project were completed. The process to contract environmental studies was begun and performance of the contract of 24 September with DAA activity also began. The areal photo process was also conducted as well as the design of the air stretch of the Cartagena-Bolivar line. Progress is set at 2.1% as per schedule. UPME Armenia Project: As of 30 September 2014, the following aspects stand out: the Ministry of Mines and Energy issued Resolution of 29 August 2014, and to that end it modified the date of the start-up of project operation, from 30 August 2014 to 9 April Regarding rights of way, 75 plots of land for towers have been freed for titling and judicial inspection, representing 90% of total tower sites for the project. In the area of the substations, one may highlight the concrete setting activities of 16 columns of the GIS building, cable lying and execution of exothermal welding points in the perimeter of the building itself. Regarding the Transmission Lines, one may highlight the re-location of tower T24 to T27 and T74 to T76 for a total to date equivalent to km, corresponding to 50% of the total. It continues with the excavation markings, excavation and cement setting of towers. Progress is set at 64.32%. UPME Tesalia Project. The Ministry of Mines and Energy under Resolution of 29 August 2014, modified the start-up date of the project, from 30 August 2014 to 10 September For the Tesalia Altamira stretch, the reconfiguration of the Betania Jamondino line, the Tesalia Substation and the enhancement of the Altamira substation, progress is at 89.79%, highlighting that with this stretch of the project it may guarantee the connection and evacuation of energy generation of El Quimbo generation project. For this stretch as well as for the reconfiguration of the Betania Jamondino line, it conducted the mounting and lying of 100 of the tower sites. For the substations, the mounting activity shows progress of 99% and tests of Start Ups were conducted, which show progress of 84%. Regarding the stretch Tesalia Alférez transmission line, it is in the process of completing the design including the bypass of 44Km to be built, which avoids intervening identified territories of indigenous communities. With respect to environmental management for this stretch, the Environmental Impact Study was filed before ANLA on 17 September As of 30 September 2014, total project progress is set at 77.55%. UPME Sogamoso Norte NE 500kV Project : It began the preparation of the Environmental Studies corresponding to the Environmental Diagnosis of Alternative, and to that end, on 29 July 2014 the National Environmental Entity, by official document 4120-E issued the terms of reference for its preparation and submittal. Likewise, detailed designs were began for the Sogamoso Norte 500kV and Norte Nueva Esperanza 500kV transmission lines on routes with a length of approximately 360km and 124km. For Company review, the following Civil, Electric and Electro-mechanic Design Criteria were delivered. Progress of project to date is set at 5.25%, however, the S curve and the Schedule are pending approval by UPME auditing.

13 3.2. DECSA EEC Table N 10 EEC s selected indicators Controlled by DECSA(*) 3Q 14 3Q 13 Var % Number of clients 273, , Operating Revenue - COP MM 231, , Operating Income- COP MM 44,320 37, EBITDA Qtrly 20,097 18, Net income COP MM 22,693 19, Dividends and reserves declared to DECSA 2,000 8, Losses - %(1) 10.04% 11.17% -6.9 Net Debt / EBITDA LTM EBITDA LTM / Intereses LTM * Controlled by DECSA Footnotes 6 Operational revenues grow at 8.8%, due to an increase in energy sales vis-à-vis the previous quarter in COP 77,931 million and on the other hand other income growths amounts to COP 2,430 million. Operational profit grows in excess when compared to growth of operational income, mainly due to costs control in the transportation of energy and fixed costs. EBITDA for the quarter exceeded in COP 1,254 million the previous quarter of 2013, mainly due to a greater margin of contribution amounting to COP 8,480 million and a reduced growth in depreciations and amortizations. EEC declared dividends amounting to COP 2,000 MM payable in November 2014 to all shareholders. Improved performance of contribution margin due to a reduced energy loss index and greater sales and greater control on variable costs. Year to year growth in national demand is GWh, equivalent to 4.34%, mainly driven by construction, manufacturing and commercial sectors. Year to year there is reduction on the TAM index of energy losses by 1.13 percentage points, this as a result of the development of a shock plan for losses, where macro measurement equipment was installed to focus on specific areas and commercial visits were conducted. Number of clients grew by 4.2%, between 2013 and 2014 equivalent to 10,990 new clients of the regulated market, highlighting lower income areas, levels 1, 2 and 3 and the commercial segment. Progress in EEC projects AT normal status: Execution of the project is behind Schedule due to a series of delays regarding right of way and processing environmental permits. During August 2014, execution of the first 2 Km stretch was began, with right of ways processed on a specific plot of land. The final design of the line on the Muña dam is under negotiations. Normal status of MT Networks; The project has maintained its trend as per development, availability of crews and materialization of a blanket contract in the north area, which is less than that estimated in the Budget. Currently the INMEL contract is in process to support the executions of this project. Construction S/E MT-MT Quetame: The site was defined and a request will be made to the National Agency for Infrastructure - Agencia Nacional de Infraestructura-ANI regarding the property where the Substation will be built.

14 Construction Enhancement S/E: Sub execution is due to a delay generated by the need to enter into an additional contract for loading and mounting two 7.5/10 MVA transformers, supplied by WEG, delivered on port. Non-Technical Loss Control: Delay on the Measurement project. Focused on the center area of Girardot due to flaws in fittings on the existing network. Fitting the braided network as of September Measurement Project Focused on the Market Square of Villeta. Survey of data for installation was conducted in July. Other technical measures to be implemented Transportadora de Gas Internacional-TGI Table N 11 TGI s selected indicators 3Q 14 3Q13 Var % Operating revenue - COP MM 705, , Operating income - COP MM 456, , EBITDA LTM - COP MM 733, , Net Income - COP MM 157, , Transported Volume Mm pcd Contracted Firm Capacity - Mm pcd Lastest international credit ratings: S&P - Agust 14: Fitch October 14: Moody s April 14: BBB-, stable BBB, stable Baa3, stable Operational results at the closing of the quarter show an increase of 12.3% due to an increase in operational income, which grew by 8.8% at the closing of, when compared to the same period of the previous year. In addition to the rate scheme in force, which was fully applied since 1Q 2013, this increase was mainly due to increases in the transported volume (+9.2%) and the increase in in-firm contracts (+3.5). Regarding non-operational line items, these show a set of reductions of 20.1%. The difference in the exchange rate, generated by the devaluation of COP and its impact when re-expressing TGI s debt in local currency, and the loss on the valuation of hedging operations represent the accounts with greater impact during the period. Accordingly, net profit of the company increased in COP 157,793 million, exceeding by COP 45,263 million, when compared to the same period in Progress of TGI Investment Projects: La Sabana Station: Construction of the La Sabana natural gas compression station (ECGSB), which is part of the gas pipeline expansion project having the same name, shows progress of 91.5%. On 7 July, the company began the commercial operation in this station, to increase transport capacity of the gas pipeline in La Sabana from 140 MMPCD to 215 MMPCD and an expected peak of 270 MMPCD. Start-up of ECGSB represents an opportunity to ensure the supply of service for in coming years and the possibility of securing industrial development in the city of Bogota and the Cundiboyacense outskirts. Compressor No. 2 started operation on 11 September of the present year. Civil works still continue so as to conclude the project completely.

15 Enhancement Cusiana - Apiay - San Fernando: The company is currently assessing alternatives to enable viability of a project to increase the capacity in the stretch Cusiana-Apiay, considering that ECOPETROL stated that it did not require natural gas transport capacity from Cusiana to San Fernando. TGI has been introducing the enhancement project of enhancing the transport system to its major customers. It was stated that with a lower capacity than that initially projected and not having to build the gas pipeline to San Fernando, the project could be adjusted, the terms under which ECOPETROL would participate in it by hiring the capacity that would make the project viable are currently being negotiated. Cusiana phase III: The Cusiana Phase III project includes the initiating of the call for bids to supply, transport, nationalize and star-up of three natural gas compression units (Miraflores, Puente Guillermo and Vasconia). The project will enable to enhance capacity in 20 MMPCD and the total investment amounts to approximately USD 32 Million. It is estimated that the commercial operation will begin on 4Q CALIDDA Table N 12 - Cálidda s selected indicators 3Q 14 3Q 13 Var % Number of Clients 235, , Operating Revenue USD Thousands 443, , Operating profit USD Thousands 54,936 37, EBITDA LTM USD Thousands 92,498 66, Net income USD Thousands 29,171 9, During 3Q 14, 20,103 connections have been carried out, 101% more with respect to 3Q During the month of October 2014 a new record of new connections was achieved reaching 255,000 clients. At present, Cálidda has 76.5% of the local market share. As for the Residential and Commercial segments, Cálidda increased the number of clients to 20,090, coming from Peru districts where Cálidda has presence. During 3Q 14, Cálidda increased its volume sales 20% compared to the same period in This responds to energy generators added to Cálidda s distribution system such as Fénix (82 MMCPD) and Termochilca (45 MMCPD). During the first nine months of 2014, Cálidda has built an 18-kilometer high-pressure steel network and 1,028 km of secondary polyethylene network. Cálidda s distribution system accounts for a total of 4,450 kilometers underground pipelines. The expansion rate of the polyethylene network (rings) has increased considerably, reaching as of, 111,997 rings versus 53,006 rings on 3Q As of the network penetration rate reached 53% due to Cálidda s commercial strategy focused basically on medium and low income family districts where the savings derived from the consumption of natural gas uses compared to other fuels are appreciated, and therefore, having thus a greater acceptance of the service provided. The full year target for 2014 is 59%.

16 Operating profit grew at a lower rate than the operating revenues as a result of a higher cost in gas sales and transport due to a greater volume (+20%) in relation to 3Q The Take or pay contracts with generators represented 76% of the volume invoiced. As of 3Q 14, EBITDA (LTM-last twelve months) was 39% greater than EBITDA LTM 2013 due to (i) larger volume invoiced by three new energy generations plants (Fénix, Termochilca and Kallpa) and also volumes sold to more profitable segments such as residential and commercial, industrial and NGV stations; (ii) greater revenues as a result of internal residential installation services and (iii) increase of 6.37% in the average distribution tariff as of May Progress of Cálidda Investment projects: There is continuity in the projects, start-up is individual and by stretches built. However, one may highlight that both the Enhancement of the Main Network (*) and the Chilca Generators have been completed CONTUGAS The commercial start-up of Contugas s infrastructure was conducted on 30 April 2014, after entering into a joint deed with the Ministry of Mines and Energy of Peru and Enbridge Technology INC, international inspector, the final Minutes of tests certifying that these works have met all applicable standards, declaring that the natural gas system is fit for service. As of September 2014 Contugas holds over enabled clients (with over residential sales performed and 31,156 internal installations built). Progress of Contugas investments projects: The execution rate as of is of 100% having a cumulative investment of USD million. The project includes over 340 km of the main network and high-pressure branches and over 700Km of low-pressure polyethylene networks. The gas pipeline will have a capacity exceeding 300 MMPCD and will connect 50,000 residential clients in the first six years after initiating commercial operation. As of the total capacity contracted and interruptible in Contugas reached mm pcd TRECSA Progress of Tresca investments projects: As of the project s progress is 76% and cumulative investments as of 30 September 2014 amount to USD million. Project Permits Over 61 municipal endorsements achieved (83%) There are 1,227 available sites (60%) for construction works of transmission line structures.

17 Construction There are 1,035 (51%) civil work structures completed and 970 (48%) structures that have been mounted. Progress in civil works of substation is at 63% (work is being conducted in 17 substations), of which 49% are mounting (in 16 substations) and 29% are testing (10 substations) There are signed agreements with owners in 687 km (83%), 642 km (77%) have been registered and 524 km (63%) are available for construction works in transmission lines. There are 1,252 available sites (61%) for construction works of transmission line structures. At the end of this quarter the following substations are operational: Pacific substation 230 KV via the connection of the LT Escuintla II - San Jose 230 KV. Substation San Agustín 230 KV through the connection LT Guatemala Norte - Panaluya connection 230K EEBIS Guatemala y Perú Progress of EEBIS Guatemala investments projects: Anillo Pacífico Sur: Currently a project is under execution, which consists of the construction of 90km transmission lines of 230 kv, 4 new substations and enhancement of 3 existing ones to 230 kv, which are being developed jointly with 5 sugar mills located in the southwestern area of the country. Project Investment amounts to USD 51.3 million approximately. The project shows execution progress of 10% as of. Cementos Progreso: Currently the project is being implemented and it consists on the construction of a 230kv transmission line of 17km, one new I&M substation with two transformation bays of 50MVA each one, executed jointly with the main cement company in Central America. The investment of the project amounts to approximately USD 19.9 million. As of, the implementation progress of the projects is 1%. Genor: EEBIS Guatemala is currently waiting the client s start order authorization to initiate the project, which consists on the construction of a 48 KM, 230k transmission line, one new I&M substation with two transformation bays of 100MVA each and the enhancement of Substation Morales presently being built by Trecsa. The investment of the project amount to approximately USD 32.9 million under open books scheme. The Project shows an execution progress of 0% as of. Progress of EEBIS Perú investments projects: EEBIS PERÚ SAC started operation in Peru on the 6 January 2014 and during these nine (9) months the company has worked on its conformation and structure complying with the Peruvian governments legal requirements, respecting labor rights and aligned with global compact, and has developed the strategic lines of operation to fulfill it purpose: (i) It is providing services to GEB affiliates on activities related to engineering, supervision, auditing and back office and, (ii) it is participating in building investment opportunities for GEB in Peru.

18 4. PERFORMANCE OF COMPANIES WITHOUT CONTROL Table N 13 - Non-controlled investments financial indicators 3Q 14 COP Million USD million Emgesa Codensa Gas Natural Promigas REP CTM Operating revenue 2,033,437 2,556,517 1,093, , Operating income 1,250, , , , EBITDA YTD 1,359, , ,334 65, Net income 806, ,521 68, , Dividends and reserves declared to EEB 450, ,944 67,311 69, Table N 14 Expansion projects of non-controlled companies 3Q 14. Execution Project Company Sector Country Execution USD Millions In operation Quimbo Emgesa G Electricity Colombia H 15 New Demand Codensa D Electricity Colombia Concessions/ Extensions REP T Electricity Perú New Concessions/Extensions CTM T Electricity Perú System Upgrade PROMIGAS T + D Natural Gas Colombia T:Transport; D:Distribution; NG: Natural Gas; E: Electricity Capital reductions to EEB EMGESA Table N 15 Overview of Emgesa 3Q 14 Instaled Capacity - MW 3,041 Capacity s Composition 9 Hydro y 2 Thermo Generation Gwh 10,524 Sales Gwh 12,140 Control Enel Energy Group EEB s stake 51.5% % ordinary shares; 14.1% preferred non-voting shares

19 Figure No. 7 Sales / Supply GWh Emgesa s bilateral contracts sales increased as a result of an increase on internal power generation and due to high water levels in company s hydric plants. The sales make up was 67% through contracts with wholesale and non-regulated market clients, and the remaining 33% through spot market contracts and AGC (Automatic Generation Control) mechanism. Emgesa s generation represented 22.02% of the total system and was slightly higher vis-à-vis the same period in 2013 (20.6%). In terms of gross installed capacity, Emgesa represents 20.69% of the country. Table N 16 Selected Financial Indicators of Emgesa COP Millon USD Millon 3Q 14 3Q 13 Var % 3Q 14 3Q 13 Operating Revenues 2,033,437 1,811, Cost of Sales 760, , Operating expenses 23,011 18, Operating profit 1,250,110 1,008, EBITDA YTD 1,359,406 1,120, EBITDA margin 66.85% 61.82% 8.1% 66.9% 61.8% Net income 806, , Dividends and reserves declared to EEB 450, , Capital reductions to EEB Net Debt / EBITDA LTM EBITDA / Interests Footnotes 6 Operating revenues grew at a rate of 12.2% as a result of higher hydric generation, thus enhancing sales through the spot market, which in turn benefited from higher prices of the energy exchange. Operating income grew at a greater pace in relation to operating revenues as a result of lower purchases of energy on the spot market and lower fuel consumption. In addition, it benefited from enhanced water levels, higher than historic average levels, where we can highlight the performance of the Guavio Dam. Net financial expenses of the first nine months of 2014 grew 7.6% vis-à-vis the same period in the former year, amounting COP 80,064 million. This is explained by a higher financial cost due to a higher average interest rate (IBR and inflation) and a higher outstanding balance of the debt. Net profit increased 24.9% explained mainly by higher operating results and due to lower costs in sales related to enhanced water levels.

20 Relevant facts of EMGESA : The global rating agency Fitch Ratings ratified Emgesa s AAA rating with a stable outlook. This result is supported by the quality of assets, the complementarity between the hydrological basins where it operates and the mixed generation (85% hydric and 15% thermal) thus reducing the exposure to water levels variations in the country. Furthermore, the nearly finished construction of the Central Hidroeléctrica El Quimbo that will increase cash flow, and its moderate leverage, measured in terms of the debt to EBITDA ratio of 2,1x by of March These were all defining factors for the rating : The Emgesa s General Shareholders Assembly appointed new members for its Board of Directors. Leading the board members is Mr. Joaquín Galindo Vélez- General Manager of Endesa, other board members are Mr. Ricardo Roa Barragán- CEO of EEB and Mr. Ricardo Bonilla Gutierrez -District Treasury Secretary of Bogota. Independent members include: Ms. Maria Mercedes Maldonado Copello- District Planning Secretary, Mr. José Alejandro Herrera Lozano- Technical Sub director of the Treasury District Secretary, Ms. Luisa Fernanda Lafaurie- and Mr. Andrés López Valderrama- President of Corferias Emgesa s Board of Directors approved a payment of dividends amounting to COP 719,310 million to be present in the following General Shareholders Assembly. Of which COP 716,187 million are for regular dividends on 148,914 shares and COP 3,123 million are for preferred dividends on 20,952 shares to be distributed as set forth the in Commercial Code The General Shareholders Assembly in its general meeting declared dividends amounting to COP 719,310 million for the period covering January to August COP 372,082 of this amount will be paid to EEB during Progress of EMGESA investments projects: Table N 17 Investments 3Q 14 3Q 13 Var % COP Million 620, , USD Million Expansion investments undertaken by Emgesa were concentrated in the construction of Central Hidroeléctrica El Quimbo and the revamping of the generation chain Salaco (Progress at 93% as of 3Q 14). Likewise, maintenance investments were also undertaken in generation plants, sustainability programs in the areas of influence and on other projects related to enhance the installed capacity of the company). The total amount of investments exceeded those of 2013 as a result of a greater execution in Quimbo. Proyecto Hidroeléctrico El Quimbo: Cumulative investment in El Quimbo project as of 3Q2014 amount to USD and shows a progress of 80%

21 4.2. CODENSA Table N 18 Overview of Codensa 3Q 14 Number of clients 2,751,360 Market Share - % 23.2% Codensa s demand Gwh 10,973 Var % Codensa s demand 3Q 14 / 3Q % Losses Index (%) 7.06 Control Enel Energy Group EEB s stake 51.5% (36.4% ordinary shares; 15.1% preferred non-voting shares) Energy demand in Codensa s area grew 2.69% as of September 2014, resulting mainly from growth of sales in energy and the use of Codensa s energy lines by other energy commercializing companies. The national demand for electric power grew 4.16% as of September 2014, led mainly by the energy demand behavior of mines and quarry explorations. Table N 19 Selected Financial Indicators of Codensa COP Millon USD Millon 3Q 14 3Q 13 Var % 3Q 14 3Q 13 Operating revenues 2,556,517 2,384, Cost of sales 1,836,908 1,705, Operating expenses 67,845 58, Operating profit 651, , EBITDA YTD 846, , EBITDA margin 33% 34% % 34% Net income 394, , Dividends and reserves declared to EEB 277, , Capital reductions to EEB Net Debt / EBITDA LTM EBITDA LTM / Interests Footnotes 6 Codensa during the period, generated operating revenues of COP 2.5 billion, increased 7.2% compared to the nine first months of 2013, resulting from: ( ) 2.69% growth in demand in its area of influence; ( ) greater revenues related to sales of energy services and sales of other associated services and ( ) increased value of the generational component in the regulated tariff and increased revenues of acknowledged administration and maintenance costs (AOM) as of May Costs of sales grew 7.69% vis-à-vis the same period in 2013 as a result of enhanced purchases of energy to fulfill the demand. Codensa s EBITDA as of reached COP 846,078 million representing a 4.53% growth in relation to 3Q 2013, basically attributed to a higher operating revenues, which where compensated by a similar increase in sales costs. Financial expenses grew as a result of a higher average inflation rate during 2014 in relation to the same period in 2013, indicator indexed to 100% of the balance debt of Codensa. Codensa s debt as of 30 September 2014 reached COP 1,1billion, evidencing a reduction of 5.2% due to the first down payment of the first bonds issuance worth COP 250,000 million on the 11 March 2014 and the placement of the first batch of the third tranche of the Issuance and Placement Program for ordinary bonds worth COPS 185,000 million.

22 Hence, the net income increased slightly, 1.37% in relation to Codensa was able to reach a total loss ratio of 7.06% as of due to the development of new technologies. Relevant Facts of Codensa Fitch Ratings ratified in July Codensa s local long term rating and all local bonds issuance with a AAA and with a stable outlook, given Codensa s privileged competitive position as a natural regulated monopoly, it has predictable incomes and cash flow generation. In addition, it has an adequate cash flow performance and is endorsed by Grupo Endesa, its head office The Issuance and Placement Program for ordinary bonds of Codensa have a global cap of COP 785,000 million. A third placement tranche was announced worth COP 185,000 million, in one sole sub-series of 7 years with a coupon rate of IPC (Consumer Price Index as per its acronym in Spanish) + 3,53% EA. The funding derived from this placement will fund cash flow needs in the long run, which include working capital and investment planes The General Assembly during its extraordinary meeting voted a new board, where we can highlight the following board members Mr. José Antonio Vargas Lleras-President of the Board of Directors, Mr. Cristian Fierro Montes- General Manager of Chilectra, Mr. Ricardo Roa Barragán- CEO of EEB and Mr. Ricardo Bonilla González- Treasury District Secretary of Bogotá. Independent members include Ms. Maria Mercedes Maldonado- District Planning Secretary of Bogota, Mr. José Alejandro Herrera Lozano- Technical Sub director of the District Treasury, Mr. Orlando Cabrales- Ex Minister of Mines and Energy and Mr. Vicente Noero- President of Acerías Paz del Río The Board of Directors of Codensa approved to recommend in the next General Assembly a payment of dividends amounting to COP 352,236 million. Of which COP 349,541 million corresponds to ordinary dividends on 132,093 shares and COP 2,695 million are preferential dividends on 20,010 shares paid as set forth in the Commercial Code The General Shareholders Assembly declared dividends for the January to August 2014 period amounting to COP 352,236 million. From this total, EEB will receive COP 182,755 million that shall be paid during Tabla N 20 Investments 3Q 14 3Q 13 Var % COP MIllion 198, , USD Million Progress of CODENSA investments projects: Investments focused primarily on: ( ) Servicing demand growth that will enable to guaranty the energy supply for the country, ( ) Improve the quality of the service and ensure its continuity ( ) Control operational risks and control non-technical costs. Investments in Nueva Esperanza, Norte y Bacatá substations.

23 4.3. PROMIGAS Table N 21- Overview of Promigas 3Q14 Number of clients 11 Volume of Sales - mmpcd Market share - % 40 Network km 2,367 Operating Revenues - COP MM 282,396 EEB s stake - % 15.6 Table N 22 Investments 3Q 14 Q13 Var % COP Million 47,923 74, USD Millon Table N 23- Selected Financial Indicators of Promigas 3Q 14 COP Millon USD Millon 3Q 14 3Q 13 Var % 3Q 14 3Q 13 Operating Revenues 282, , Cost of sales 67,858 53, Operating profit 214, , EBITDA Qtrly 65,871 41, Net income 293, , Dividends and reserves declared to EEB 69,056 37, Capital reductions to EEB Net Debt (1) / EBITDA EBITDA / Interests (2) Footnotes 6 Operating revenues grew as a result of ( ) higher transported volume due to more severe hydrological conditions during 2014; ( ) Invoicing Gascaribe within the network construction contract. Operating profits grew at a faster pace with respect to operating revenues due to a lower growth on the sales cost. These increased on account of costs registered on works undertaken at Gases del Caribe and payment agreements to complete the Caño Clarín and Corpamag dredging contract. Net profits decreased in comparison to growth in Operating profits on account of the registration of the profit during 2Q of 2013 realized when selling the gas pipeline leasing, thus, evidencing a lower non-operational income. Relevant facts of Promigas Promiga s Board of Directors approved to undertake a leaseback operation on the Ballena La Mami gas pipeline stretch for a 12 years period. This operation will represent an income from sale of assets of COP 101,198 million and a profit before tax of COP 81,950 million Fitch Ratings reaffirmed their AAA long-term rate with a stable outlook. The supporting facts argued by the rating company were: a sound competitive position, a stable and predictable influx of operative cash flow, an adequate cash flow performance and an important investment program. The external debt of Promigas is rated BBB- with a stable outlook. Promigas is one of the largest natural gas transportation and distribution private companies in

24 Colombia. Promigas has 2,896 kilometers (km) of gas pipelines and a transportation capacity equivalent to 766 million cubic per day Promigas presented to the General Stakeholders Assembly a payment of dividends for the period covering 1 January to 30 June 2014, amounting to COP 235,017 million of which: COP 112,325 million correspond to extraordinary dividends on 23,159,815 shares issued on 29 September 2014; COP 95,327 million to ordinary dividends on 1,134 million shares; COP 20, 427 to extraordinary dividend of $18.00 per share on 1,134 million shares payable in October 2014 and the remaining amount corresponds to legal reserve and a defined amount for future distributions The General Shareholders Assembly appointed new Board members for the period September March Leading the Board Members is Mr. José Elías Melo- President of Corficolombiana; other members include Mr. Ricardo Roa Barragán- CEO of EEB and Ms. Claudia Betancourt Azcarate- General Manager of Amalfi. Deputy members include Mr. Gustavo Ramírez Galindo- Vice president of Investments at Corficolombiana and Mr. Mauricio Maldonado Umaña- Strategic Vice president of Grupo Aval. Progress of Promigas investment projects: First Project Project Mini Loop consists on the construction of two loops between Palomino and Don Diego rivers, with an estimated length of 15 Km, to increase transportation capacity. This project was concluded with the construction of a 8 km loop given that it could attend the required transportation capacity. Second Project Loop 14 Hocol San Mateo Mamonal consists on the construction of a gas pipeline between HOCOL and San Mateo wells in 12 diameters and approximately 22 km in length, a 14 loop between San Mateo and Mamonal and approximately 163 Km in length to transport 60 million cubic feet. The project progress is 2% and it is expected to initiate operation in Third Project Microplanta GNL La Arenosa consists on the construction of a micro plant for liquefied natural gas, with a capacity of 78,000 gallons/day to reach markets that are not serviced through the Traditional Gas pipeline System and to the serve automobile market. The project progress is 51% and it is expected to initiate operation in Fourth Project Enhancement of SRT Loop Mamonal consists on the construction of a loop to service the expansion project and new requirements of clients in the industrial area of Mamonal. The project progress is 4% and it is expected to initiate operation in Fifth Project Sistema de Filtración Tramo Arenosa-Caracolí consists on the installation of a Sand Filtering Station, a line that will connect crossing of 32 diameter with 18 diameter to take gas to Caracolí. The project progress is 1% and it is expected to initiate operation in 2015.

25 4.4. GAS NATURAL Table N 24 Overview of Gas Natural 3Q 14 Number of clients 1,968,576 Volume of sales - mmpcd Market share - % 94.4 Network - km 86.5 Operating revenues - COP MM 1,093,643 EBITDA LTM - COP millon 443,485 Control Gas Natural de España EEB s stake 25% Table No 25 Selected Financial Indicators of Gas Natural COP Millon USD Millon 3Q 14 3Q 13 Var % 3Q 14 3Q 13 Operating Revenues 1,093, , Cost of sales 748, , Administratives expenses 88,900 77, Operating income 256, , EBITDA Qtrly 281,334 96, Net income 68,331 66, Dividends and reserves declared to EEB 67,311 62, Capital reductions to EEB Footnotes 6 Operating revenues grow at a 13.7% rate resulting from larger sales lead primarily by the GNV and ATR market. The EBITDA is higher than that registered in 2013 because of a greater gas margin and lower administrative costs. Table N 26 Capex 3Q 14 3Q 13 Var % COP Millon 8,119 8, USD Millon Investments undertaken during amount to COP 8,119 million of which 70% are concentrated in their distribution network REP and CTM Perú Table N 27 Selected Financial indicators of REP USD Thousands 3Q 14 3Q 13 Var % Operating Revenues Cost of sales Operating income EBITDA LTM Net income Dividends declared to EEB Capital reductions to EEB Net Debt(2) / EBITDA EBITDA / Interests (3) Footnotes 6

26 Revenues increased due to the increase of the annual supplementary fee secured as a result of the agreement in the Finished Goods Less Food and Energy index, and the increase of annual remuneration per construction expansion. Administrative expenses decreased due to lower personnel expenses and third party services. Lower financial expenses on account of larger expenses capitalized due to the expansion in constructions. Increased EBITDA due to increased revenues on operational and maintenance services, specialized technical services and complementary services held with third parties; and also related to the start-up of expansions 10 and 11; likewise, the services provided for administration of the companies affiliated to the Consorcio Transmantaro and ISA Perú. On 7 August 2014, Interconexión Eléctrica S.A. E.S.P. (ISA) was awarded the design, financing, construction, operation and maintenance of the project 200 kv transmission line Friaspata Mollepata and Substation 220/60 kv. The 94 km line in length is located in the regions of Huancavelica, Ayacucho and Junín and will be the principal link between the Ayacucho Electric System and the Sistema Interconectado Nacional (SEIN). Annual revenues: USD 5.7 Million; construction phase: 25 months from the closing date; concession term: 30 years. On Friday 11 of July the Seventh Issuance of Series A of the Third Program of Corporate Bonds took place, where REP placed a sum of USD 20 Million at a fixed interest rate of 3.75%, 7 year callable. The placement had a total demand amounting to USD 41.4 Million and the participation of all the investment groups: AFP (Pension Funds), Insurance Companies, Mutual Funds and Government Funds among others. It is important to mention that the former REP US dollars bonds placement was in February 2013 worth USD 10 Million, with an interest rate of 4.62% for a 5-year bullet payment. Exp. 13: Presents a progress of 81.7% and its start-up is expected for the 1H Exp. 14: Presents a progress of 48.6% and its start-up is expected for the 1H Exp. 15: Presents a progress of 43,8% and its start-up is expected for the 1H Exp. 16: Presents a progress of 11.5% and its start-up is expected for the 1H Table No 28 Selected Financial indicators of CTM USD Thousands Al 3T 14 Al 3T 13 Var % Operating Revenues Cost of sales and operating expenses Operating income EBITDA Net income Dividends declared to EEB Capital reductions to EEB Net Debt (1) / EBITDA EBITDA / Interests (2) Footnotes 6

27 Operating revenues as of include total year revenues related to Talara Piura transmission lines (Came on Stream -POC May 2013) as well as the whole year revenues of private contracts 500 kv Fénix transmission lines (Came on Stream -POC March 2013) and the Termochilca connection (Came on Stream -POC June 2013). It also includes revenues of Pomacocha Carhuamayo transmission lines (Came on Stream POC September 2013). Sales costs increase is explained mainly by the increased installments derived from Came on Stream POC- of the mentioned transmission lines. Likewise, operations and maintenance services provided by related companies increased on account to adjustment in tariffs and the Came on Stream POC- of the already mentioned projects. Lower financial expenses are explained basically by the debt restructuring as a result of the international bonds issuance that enabled replacement of long term loan and those with affiliates, thus reducing financial costs. The 3Q 2013 includes financial costs of the prepaid loans disbursed with the international bonds funding.

28 5. Annexes Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report This document contains projections and estimates, using words such as anticipate, believe, expect, estimate, and others having a similar meaning. Any information other than historical information included in this report, including but not limited to the Company s financial condition, its business strategy, plans, and management objectives for future operations are projections. Such projections are based on economic, competitive, regulatory and operational scenarios and involve known and unknown risks, uncertainties and other important factors that could cause the Company s results, performance or actual achievements to be materially different from the results, performance or future achievements that are expressed or implicit in the projections. For these, reasons, the results may differ from the projections. Potential investors should not take them into consideration and should not base their decisions on them. Such projections are based on numerous assumptions concerning the Company s present and future business strategies, and the environment in which the Company will operate in the future. The Company expressly states that it will be under no obligation to update or revise any projections contained in this document. The company s previous results should not be taken as a pattern for the company s future performance. Annex 2: Clarifications Only for information purposes, we have converted some of the figures in this report to their equivalent in USD, using the TRM rate for the end of the period as published by the Colombian Financial Superintendency. The exchange rates used are as follows: 3T 14: 2, COP/USD 3T 13: 1, COP/USD In the figures submitted, a comma (,) is used to separate thousands and a point (.) to separate decimals Annex 3: Definitions of EBITDA / Consolidated adjusted EBITDA reconciliation EBITDA is not an acknowledged indicator under Colombian or US accounting standards and may show some difficulties as an analytical tool. Therefore, it must not be taken on its own as an indicator of the company s cash generation. EBITDA: EBITDA for a specific period of time (LTM; Q1) has been calculated by taking operating income (loss) and adding amortization of intangibles and depreciation of fixed assets for that period. EEB Consolidated EBITDA for a period, consists of operating revenues of EEB and its consolidated subsidiaries for such period, minus the sum of (i) cost of sales, (ii) administrative expenses allocated to cost, (iii) administrative expenses and (iv) interest income on investments of pension assets, plus dividends and interest earned (which includes dividends declared by EEB s related companies, whether such dividends are actually paid or not), taxes (other than income taxes), amortization and depreciation, pension payments and provisions EEB Consolidated Adjusted EBITDA for a specific period is calculated taking the Consolidated EBITDA for such period and adding the cash flows coming from investing activities during such period to the extent attributable to capital distributions by EEB s related companies.

29 Annex 3: EEB Consolidated Adjusted EBITDA LTM and Quarterly Table N 29 EEB s Consolidated Financial Results COP Million Var USD Million 3Q 14 3Q 13 % 3Q 14 3Q 13 Operating Revenue (1) 1,708,003 1,451, Electricity Transmission 83,154 78, Electricity Distribution 231, , Natural Gas Transportation 705, , Natural Gas Distribution 688, , Cost of Sales (2) -910, , Electricity Transmission -36,531-34, Electricity Distribution -170, , Natural Gas Transportation -181, , Natural Gas Distribution -521, , Gross Income 797, , Operating Expenses -187, , Electricity Transmission (3) -16,569-8, Electricity Distribution -24,764-24, Natural Gas Transportation -47,994-34, Natural Gas Distribution -97,689-98, Operating Income 610, , Dividends (4) 892, , Interest temp Investments & pension trusts(5) 71,497 40, Foregn Exchange (6) -109, , Other revenue (8) 25,728 23, Non- operating expenses (9) -159, , Financial Expenses -215, , Other expenses -7,486-6, Net income before taxes and minority interest 1,108, , Minority Interest (10) -36,363-52, Provision for Income tax -135,623-67, Net Income 936, , Pies de página en anexo 6 Table N 30 Grupo Energía de Bogotá Consolidated EBITDA LTM Breakdown EBITDA LTM COP Millon Var USD Millon 3Q 14 3Q 13 % 3Q 14 3Q 13 Operating Rvenue 2,215,415 1,874, Operating Costs -1,205, , Operating Expenses -327, , Operating Depreciation 117, , Operating Amortization 81,433 49, Operating Taxes 5,361 4, Dividends & interests earned 1,056, , Hedging Operations -18,538-12, Interests in autonomous equity -12,032-6, Administrative expenses -198, , Retirement pensions 33,127 39, Amortization 32,256 41, Depreciation 7,787 5, Provision 106,619 22, Taxes 82,666 66, Capital Reductions Consolidated Adjusted EBITDA 1,976,886 1,668,

30 Table N 31 Grupo Energía de Bogotá Consolidated EBITDA quarterly breakdown CONSOLIDATED EBITDA QUARTERLY COP Millon Var USD Millon 3Q 14 3Q 13 % 3Q 14 3Q 13 Operating Income 176, , Operating Depreciation 30,330 27, Operating Amortization 25,746 13, Operating Taxes 1,196 1, Dividends & interests earned 40,638 5, Hedging Operations 5,167 5, Interests in autonomous equity (3,717) (851) Administrative expenses (62,059) (34,535) Retirement pensions 6,554 7, Amortization 9,337 9, Depreciation 2,242 1, Provisions 6,183 3, Taxes 17,169 14, EBITDA 255, , Annex 4: Link to EEB s consolidated and stand-alone financial statements Anexo 5: Technical and regulatory terms BLN: US billion (109) CAC: Compound Annual Growth COP: Colombian Peso CHB: Central Hidroeléctrica de Betania CTM: Consorcio Transmantaro CFD: Cubic feet per day CREG: Comisión de Regulación de Energía y Gas de Colombia. (Colombia s Energy and Gas Regulating Commission). Colombia s state agency in charge of regulating electric power and natural gas residential public utility services. D Electricity: electricity distribution, D Natural Gas: Natural Gas Distribution, DANE: Departamento Administrativo Nacional de Estadística (National Administrative Statistics Department). Agency responsible for planning, collecting, processing, analyzing, and disseminating official statistics in Colombia. G Electricity: electricity generation, Gwh: Gigawatt hour; unit of energy equivalent to 1,000,000 kwh GNV: Gas natural for vehicles IPC: Colombian Consumer Price Index KM: Kilometers LTM: Last Twelve Months MEM: Mercado de Energía Mayorista de Colombia; Wholesale Energy Market in Colombia Millones: million Ml: thousands MW: Megawatt, power unit or work which equals one million watts

31 N.A. Not applicable. SIN: Sistema Interconectado Nacional, National Interconnected System STN: Sistema de Transmisión Nacional, National Transmission System SF: Superintendencia Financiera Financial Superintendency. State entity in charge of regulating, overseeing and controlling the Colombian financial sector T Electricity: Electricity transmission, T natural Gas: natural gas transportation TRM: : Market Representative Exchange Rate; it is an average of the transactions carried out in peso dollar, and it is calculated daily by the SF UPME: State agency responsible for planning Colombia s mining and energy sectors USD: US dollars N.B. Figures in this English report in terms of one USD billion corresponds to COP 1,000,000,000 and one COP trillion corresponds to USD Annex 6: Tables and graphics footnotess Table 9 - EEB s transmission business indicators (1) Percentage of the infrastructure available in a period of time. (2) Percentage of the revenue discounted due to accumulated unavailability of specific assets above the regulatory target. (3) Ratio between the numbers of maintenance operations carried out and number of scheduled maintenance operations to be executed as part of the semi-annual Maintenance Plan. (4) Ratio of the number of transmission assets owned by EEB and the total number of transmission assets in Colombia. Return Table 10 Selected Financial Indicators EEC - DECSA (1) % Percentage of energy losses. Return Table 16 Selected Financial Indicators of Emgesa. (1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period. (2) Accrued interest on financial debts for the previous twelve months. Return Table 19 Selected Financial Indicators of Codensa (1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period. (2) Accrued interest on financial debts for the previous twelve months. Return Table 23 Selected Financial Indicators of Promigas (1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period. (2) Accrued interest on financial debts for the previous twelve months. Return Table 25 Selected Financial Indicators of Gas Natural

32 (1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period. (2) Accrued interest on financial debts for the previous twelve months. Return Table 27 Selected Financial Indicators of REP (1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period. Return Table 28 Selected Financial Indicators of CTM (1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period. (2) Accrued interest on financial debts for the previous twelve months. Return Table 29 - Consolidated results of EEB (3) Operating revenue for transmission services rendered directly by EEB, natural gas transmission and distribution of TGI and Cálidda, respectively; as well as energy distribution services that Decsa consolidates for its participation in EEC. (4) Cost of sales of the transmission services rendered directly by EEB, natural gas transportation and distribution services and electricity distribution services conducted by its controlled companies. It includes personnel, materials, operation and maintenance costs, depreciation, amortization and insurances related to those activities. (5) Transmission activity is operated directly by EEB. Administrative costs are allocated by the ABC system. (6) Dividends declared by non-controlled companies and temporary investors and pension funds autonomous equity. (7) Interests of temporary investments that are generated by pension funds autonomous equity. (8) Refers to net losses or earnings due to exchange rate variations and its impact on assets and liabilities expressed in foreign currency. (9) Valuation of hedging operations contracted by EEB and TGI to reduce currency risk. (10) Income from recovery of investments, leases and expenses. (11) Expenses are not related to operational activities. (12) Proportion of net income corresponding to minority investors in the company s consolidated by EEB. Annex 7: Overview of EEB EEB is an integrated energy company with interests in the natural gas and electricity sectors and operations in Colombia, Peru and Guatemala. EEB was founded in 1896 and is controlled by the District of Bogota (76.2% ownership). The company, as a public company in Colombia, adhered to global standards of corporate governance. EEB has an expansion strategy focused on the transmission and distribution of energy in Colombia and other countries within the region. EEB participates in the entire electricity value chain and in almost all the natural gas value chain, except for exploration and production. Since 2009, EEB shares have been traded on the Colombian stock market. In November 2011, EEB finished a Re-IPO in the Colombian stock market for approximately USD 400 million. EEB is one of the largest Colombian corporate debt issuers. In October 2007, EEB and TGI issued corporate

33 bonds in the international markets for USD 1.36 billion. In 2011 and the beginning of 2012 both companies refinanced their notes extending their maturities and lowering its costs. EEB is part of the COLCAP, COLEQTY and COLIR indexes.