Grupo Energía de Bogotá

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1 Grupo Energía de Bogotá 1Q 2017 Key Results and Developments May 23 rd

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. EEB is no obligation to update or keep current the information contained herein. EEB expressly disclaims any responsibility for actions taken or not taken based on this information. EEB does not accept any responsibility for losses that might result from the execution of the proposals or recommendations presented. EEB is not responsible for any content that may originate with third parties. EEB 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 Agenda EEB Overview Key Updates 1Q 2017 Expansion Projects Financial Performance 1Q Q&A 3

4 01 EEB Overview 4

5 EEB Corporate Structure 01 EEB 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

EEB s strategic business units 01 EEB 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

6 EEB s strategic business units 01 EEB is focused on natural monopolies in regulated sectors around three businesses, with a clear competitive strategy. Urban Energy Solutions 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 440k Customers Interconnecting for Market Development 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 23% Market share generation In Colombia 14,975 GWh Power generated in

7 02 Key Updates 1Q

8 02 Key Updates - Corporate Highlights First Bond Issuance Local Market On February 28 th, EEB completed its first bond issuance in the local market for COP 650,000 million, with an overdemand of COP 1.3 billion. Credit Rating Issuance and Issuer: AAA Local by Fitch Ratings Colombia. Maturities of 7,15 and 25 years, increasing exposure of EEB to COP. Highest Dividends in History Shareholders meeting EEB authorized to pay dividends to its shareholders amounting to COP 908,936 million, equivalent to COP 99 per share, with a dividend yield of 5.5%. The proposal payment date for all shareholders are: First Installment (50%) : Until July 5 th, 2017 Second Installment (50%) : Until October 31 st, 2017 On July 5 th EEB will pay the first installment of the release of occasional reserves to the District of Bogota, amounting COP 35,000 mm + interest (CPI + 4,15%), for a total of COP 66,000 mm Shareholders Assembly also approved statutory reform which includes mainly changes in corporate governance. 8

9 Key Updates Natural Gas Segment 02 TGI Resolution 026 of 2017 published in April, which addresses issues related to compensation and competitive processes for projects included in the Natural Gas Supply Plan, includes the following projects that are complementary to the TGI system: Bidireccioality Yumbo Mariquita Loop 10, Mariquita - Gualanday Bidireccionalidad Barrancabermeja Ballena Compressors El Cerrito Popayán Additionally, it defines projects that, given their location, are complementary to the TGI system, and which will have a competitive selection process, which are mentioned below: Regasification Pacífic Plant Buenaventura Yumbo - Pipeline Bid process is expected be lauched during 2H 2017 and awarded process expected in 1H As of year-end, the average transported volume through TGI s infrastructure was 428 mmcfd (14.0 MM3D), which represents a market share of 46.9% of the transported volume during 1Q

10 Key Updates Natural Gas Segment 02 Cálidda Fitch Ratings upgraded the corporate credit rating for Calidda in local and foreign currencies to 'BBB from 'BBB-', stable outlook. BBB Stable Outlook Calidda s client base and invoiced volume both increased during 1Q 17 by 26% and 8%, respectively, compared to 1Q 2016 s figures. (464,785 vs 369,542 clients). And volume (751 mmcfd vs 698 mmcfd) During 2016, our network length was enlarged by 266 km, wherewith the distribution system reached a total of 7,691 km of underground pipelines. Total Revenues of 1Q 2017 have increased by 13% due to higher distribution revenues mainly from additional contracted Take or Pay volume, and higher connection fees from the NGV segment The EBITDA grew 21% mainly due to the higher income mentioned above (higher distribution revenues of natural gas) and a lower operational expenses during 1Q 16 10

11 03 Expansion Projects 11

4 USD Mm) Executed Capex by Country (1) (1Q 17 194.

12 Expansion Projects 03 Revenue growth has been sustained by a strong capex plan Executed Capex by Companies (1) (1Q USD Mm) Executed Capex by Segment (1) (1Q USD Mm) Executed Capex by Country (1) (1Q USD Mm) Executed Capex by Investment (1) (1Q USD Mm) Guatemala 5,6% Colombia 43,1% Perú 51,3% Source: Company filings (1) Excludes Brazil GEBBRAS Capex 12

13 Expansion Projects (Direct invesment in Colombia) 03 Revenue growth has been sustained by a strong capex plan. Projects Update (1Q 17) UPME Projects Progress EAR (1) USD MM On Stream Chivor II 55.2% /06/2017 Cartagena Bolívar 63.4% /11/2017 Río Córdoba 64.3% /07/2017 Armenia 96.0% /08/2017 Tesalia 86.0% /05/2017 Sogamoso Norte 42.3% /09/2017 Refuerzo Suroccidental 500 kv 19.5% /09/2018 Ecopetrol San Fernando 53.5% /06/2017 Río Cordoba Transformadores 89.7% /08/2017 La Loma 500 kv 61.9% /08/2017 La Loma 110kV 21.1% /06/2018 Conexión Drummond Ltd 29.2% /07/ (1) Expected annual revenues. 13

14 Expansion Projects Investments and Funding Sources Controlled Companies Funding Investments EEB Capex Profile USD mm % (USD mm) Executed Capex $1,557 50% Expected Capex (1) $1,580 50% Cash Generation After Dividends $1,130 Incremental Debt $450 TOTAL $3,137 (1) Mainly concentrated on electricity transmission businesses (COL / Overseas). (2) 2014 Incliudes M&A transaction IELAH Equity Portion (3) 2015 Includes M&A transaction Brazil Equity portion 14

15 04 Financial Performance 1Q

16 Financial Performance 04 Consolidated Results (as of 1Q 2017) Operating Revenue 1Q 17 by Segment Operating Profit 1Q 17 by Segment (1) (COP 771,425 mm) % (COP 296,707 mm) % Electricity Transmission Natural Gas Distribution % Electricity Transmission Natural Gas Distribution % Natural Gas Transportation % Natural Gas Transportation % On YoY Basis: 1Q 17 compared to 1Q 16 showed a decrease of 16.8% Due to EEC was merged with Codensa since October 1st, 2016, revenues from the segment Electricity Distribution are reported with Codensa data, non-controlled subsidiary. (+3.9%; COP 2,704 mm) Electricity Transmission: coming on stream of UPME Projects awarded. Tesalia y Quimbo/Cali (-20.3%; COP 76,501 mm) Natural Gas transportation: decrease in TGI s revenues due to FX conversion effects and less transported volume. (+5.7%; COP 21,524 mm) Natural Gas distribution: increase in Cálidda s revenues, mainly from higher transported volume and FX conversion effects.. On YoY Basis: 1Q 17 vs 1Q 16 operating profit showed a decrease of 16.3%, Due to lower income from natural gas transported volume due to Niño Phenomenon. (+11.0%; COP 3,331 mm) Electricity Transmission: higher revenues from new projects combined with controlled costs. Some costs at the level of TRECSA related to activated easements. (-19.5% COP 46,210 mm) Natural gas Transportation: Lower revenues also combined with lower costs from maintenance (-2.0%; COP 1,447 mm) Natural gas distribution: higher revenues, combined with 10% increase costs due to new users connected to the network. (1) Excludes administrative expenses & net of other expenses and gains 16

17 Financial Performance 04 Consolidated Results (as of March 2017) On YoY Basis: 1Q 17 compared to 1Q 16 (+84.7%, COP 27,232 mm) Finance income: increased due to interest returns on financial investments. (+6.2%, COP 7,951 mm) Finance expenses: increased mainly to debt interest payments, and banking commissions (-95.2%, COP 61,670 mm) Net Exchange Difference: Net Exchange difference increase due to a revaluation during the period of 4%, which impact positively liabilities denominated in foreign currency. (+15.7%, COP 36,580 mm) Equity Method: increase in equity method of Associates mainly from Emgesa & Codensa due to operational performance. (+598,7%, COP 72,006 mm) Taxes: Due to increase on deferred tax at the level of TGI. Fx effects. (+0.94%, COP 4,968 mm) Net Income: grew due to operational results, financial income and equity method contribution from associates. 1 Includes administrative expenses & net of other expenses, other gains 17

Financial Performance 04 Ebitda Evolution 2006 1Q 2017 LTM Normalized Consolidated Adjusted EBITDA (1) Consolidated Adjusted EBITDA by Subsidiary (2) (COP mm) Operational Ebitda Dividends 539.

18 Financial Performance 04 Ebitda Evolution Q 2017 LTM Normalized Consolidated Adjusted EBITDA (1) Consolidated Adjusted EBITDA by Subsidiary (2) (COP mm) Operational Ebitda Dividends % 81% % 67% % 56% % 55% % 39% 61% 44% % % 48% 45% % % 75% % 44% 36% 30% 25% Consolidated Adjusted EBITDA by Segment Q 17 LTM (USD mm) Lower EBITDA from lower revenues due to the EEC merger effect and lower transportedvolume in TGI Lower decreed dividends from associates companies Source: Company filings. Note: Figures for the years are presented under ColGaap standards. For 2014, 2015 & 2016 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 18

Financial Performance 04 Description of Indebetness (as of March 2017) Net Debt / Consolidated Adjusted EBITDA (1)(2) Consolidated Adjusted EBITDA / Net Interest (1)(2) 4,50x 2,78x 2,63x 2,40x 2,56x

19 Financial Performance 04 Description of Indebetness (as of March 2017) Net Debt / Consolidated Adjusted EBITDA (1)(2) Consolidated Adjusted EBITDA / Net Interest (1)(2) 4,50x 2,78x 2,63x 2,40x 2,56x 2,84x (USD mm) USD COP PEN 3,4% 96,6% $ Q 16 2Q 16 3Q 16 4Q 16 1Q 17 Consolidated Debt Composition Debt Maturity Profile (3)(4) 6,4% 2,9% 93,6% 97,1% $1.737 $ ,2% 97,8% $ ,7% 99,3% $ ,2% 98,0% $ ,00% 99,0% $ ,34% 90,7% $2.791 (USD mm) 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. 120,0 44,7 588,0 36,9 773,7 758,7 328,7 66,0 8,7 8,7 8,7 4,4 83,9 53,

20 05 Q&A Session 20

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

21 INVESTOR RELATIONS For more information about Grupo Energía de Bogotá (GEB) contact our Investor Relations team: Felipe Castilla Canales +57 (1) Ext 1501 Fabián Sánchez +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 DE 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 DE BOGOTÁ S.A ESP.

Grupo Energía de Bogotá

Grupo Energía de Bogotá 2016 Key Results and Developments March 23 rd 2017 1 Disclaimer The information provided herein is for informational and illustrative purposes only and is not, and does not seek