GRUPO ENERGÍA DE BOGOTA First Quarter 2014 Results

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1 GRUPO ENERGÍA DE BOGOTA First Quarter 2014 Results May 14th, 2014

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 or financial advice on any subject. This information does not constitute an offer of any sort and is subject to change without notice. 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. 2

3 Table of contents 1. EEB Overview and Key Updates 1Q Expansion Projects Review 3. TGI 31.92% stake acquisition 4. Financial Review 1Q Questions and Answers 3

EEB Overview Transportation and distribution of energy

Generation 51.5% 2.5% Services Electricity Transmission 40.

2% 99.9%* Transport 100%* Gas Natural 68.

0%* * Controlled by EEB Focus on natural monopolies Growth

4 EEB Overview Transportation and distribution of energy with involvement in other areas in the energy sector Generation 51.5% 2.5% Services Electricity Transmission 40.0% 1.8% 95.7%* 40.0% Distribution 51.5% 82.0%* 51.0%* 16.2% 99.9%* Transport 100%* Gas Natural 68.1%* EEB Movilidad Distribution 15.6% 100%* 60.0%* 25.0% 75.0%* * Controlled by EEB Focus on natural monopolies Growth in controlled subsidiaries Sound regulatory framework Ample access to capital markets 4

5 Key Updates Acquisition of 57.6% of ISAGEN On February 27 th 2014, the BoD confirmed its interest of participating in the bid to acquire 57.6% of Isagen shares offered by the National Government EEB participation will seek to acquire control. EEB is waiting SIC s decision to the appealing made on February 21. On March 27th EEB has prequalified to participate in the process The process is standstill pending on the high courts decision. Dividends Decreed: On March 27 th, EEB Shareholders Meeting approved payment of dividends of COP 590,530 million (USD mm), equivalent to 70% of profits generated during COP per share, three installments: May 27 th / June 26 th / November 27 th Contugas inagurated the ICA regional pipeline Before the deadline, Contugas, jointly with the Ministry of Energy and Mines and Enbridge Technology Inc., an international inspector, on April 30 th, signed the final act of testing. This is a requirement for the Commercial Operation set forth in concession contract, which certifies that the infrastructure has met the applicable standards. At the closing of March 2014, the company has over 14,700 customers presently receiving gas (Of the 26,158 total sales in households). At the end of February 2014, the first large user of natural gas was enabled (Textiles del Valle). Subsequently, a GNV station has been enabled as well as a Paper mill. At the beginning of 2Q 2014, some fishing companies and 2 steelmakers will be connected and serviced (among other large customers). 5

6 Key Updates Sogamoso - Norte - Nueva Esperanza Project EEB was awarded the Sogamoso-Norte-Nueva Esperanza transmission project whose revenues have a NPV amounting USD 171 mm. The project includes the construction, operation and maintenance of the Norte substation (500kW) and the transmission line Sogamoso-Norte-Nueva Esperanza (500 kv). This project is part of the Expansion Plan UPME Acquisition of 31.92% of TGI On December 11th 2013, EEB s Board of Directors decided to exercise EEB s Right of First Offer (ROFO) under the Shareholder s Agreement for the acquisition of a 31.92% stake in TGI, after the end of the lock-up period (3 years). Offer was submitted on March 25th 2014 The offer, for a value of USD 880 million, was accepted by The Rohatyn Group (formerly CVCI) on April 3rd 2014, This transaction, which is part of EEB s USD 7.5 billion investment plan will generate positive value for EEB s shareholders. 6

7 2. Expansion Projects Review 7

Expansion Projects Controlled Subsidiaries Colombia Natural Gas Transportation CAPEX Exec. 1T2014: USD 8.

9% Electricity Transmission Tesalia 77% CAPEX : Executed 2014: USD 8.88 Chivor II Norte 22% mm SVC Tunal 38.

24 mm Total investment: USD 500 mm By the end of 2016 it is expected to have 455,000 customers connected.

02 mm Total inverstmet: USD 358 mm Under construction:1q 14: 92%.

8 Expansion Projects Controlled Subsidiaries Colombia Natural Gas Transportation CAPEX Exec. 1T2014: USD 8.75 mm Construction: Sabana Station: 48.8% Planification: Regional Syst. (4Q 14) Under Construction 1Q 14: Armenia 54.9% Electricity Transmission Tesalia 77% CAPEX : Executed 2014: USD 8.88 Chivor II Norte 22% mm SVC Tunal 38.5% Total Investment: USD 308 mm Perú Natural Gas Distribution CAPEX Exec. 1T2014: USD mm Total investment: USD 500 mm By the end of 2016 it is expected to have 455,000 customers connected. Natural Gas Transportation and Distribution CAPEX: Executed 2014: USD mm Total inverstmet: USD 358 mm Under construction:1q 14: 92%. Full operation 2Q 14 CAPEX Executed 1Q 2014 Controlled Subsidiaries USD Millions Guatemala Electricity Transmission CAPEX Exec. 1T2014: USD mm Total Investment: USD 376 mm Started operation (partially): 4Q13 Under construction:1q 14: 67%. Delivered 2015 Engineering and Services CAPEX: Executed 2014: USD 0.51 mm Sugarmills Investment: USD 44 mm Under construction IQ 14: 34% Full operation

Expansion Projects Non Controlled Subsidiaries Colombia Electricity Generation CAPEX Exec. 2014: USD 102.

8% Natural Gas Distribution CAPEX Exec. 2014: USD 1.66 mm Electricity Distribution CAPEX Exec. 2014: USD 20.

CAPEX Exec. 2014: USD 13.98 mm Total investment: USD 137 mm Liquefaction Plant: Invest.

9 Expansion Projects Non Controlled Subsidiaries Colombia Electricity Generation CAPEX Exec. 2014: USD mm Quimbo Project (400 MW) Total investment: USD 1,093 mm Exec 2013: USD 279 mm Accum. Exec: USD 564.8mm Execution 1Q 14: 64.8% Natural Gas Distribution CAPEX Exec. 2014: USD 1.66 mm Electricity Distribution CAPEX Exec. 2014: USD 20.5 mm Projects executed: New and existing demand Quality service and continuity Control operational risk Natural Gas Transportation and Distribution CAPEX Exec. 2014: USD mm Total investment: USD 137 mm Liquefaction Plant: Invest. USD 34 mm Pipeline Mamonal Sincelejo: USD 70 mm CAPEX Executed 2014 Non Controlled Subsidiaries USD Millions Perú Electricity Transmission CAPEX Exec. 2014: USD mm Extensions and new concessions; Electricity Transmission CAPEX Exec 2014: USD mm Extensions and new concessions;

10 3. TGI s Stake Acquisition 10

11 Acquisition of 31.92% of TGI Total offer amount: USD 880 million Phase 1 Local Short-term Debt/ Cash on Balance USD 264* MM EEB S.A. ESP USD 264* MM Equity USD 880 MM** Colombia Spain Banks 2019 SPV 1/ Trust IELAH Inversiones en Energía Latinoamérica Holding S.L. USD 616* MM Debt Spain Phase 2 Colombia Phase 3 IELAH Inversiones en Energía Latinoamérica Holding S.L. SPV 2 TGI S.A. ESP TGI SPV 1 SPV 2 * Bank charges and reserve funds are not included. ** Transaction payment will be done to IELAH Luxembourg 11

Key Updates Credit Metrics Impacts Total Debt(1) / EBITDA Total Net Debt(1) / EBITDA (x) (x) Ratings Threshold: 4.0: 1.0 6.5 5.6 5.4 4.9 4.2 3.5 5.1 Cash available will allow to reduce total debt 5.

12 Key Updates Credit Metrics Impacts Total Debt(1) / EBITDA Total Net Debt(1) / EBITDA (x) (x) Ratings Threshold: 4.0: Cash available will allow to reduce total debt P P Source: Company information. Note: Ratios calculated in local currency (1) Total Debt Includes MM USD 616 associated to EEB Financed Acquisition Following EEB's announcement to increase its majority stake on TGI, the actions taken by the rating agencies are as follows: EEB TGI Moody s Fitch Ratings S&P Affirmed Baa3 / Outlook Stable Affirmed Baa3 / Outlook Stable Affirmed BBB- / Outlook Stable Affirmed BBB- / Outlook Stable Affirmed BBB- / Outlook Stable Affirmed BBB- / Outlook Stable Banks offers for funding the transaction were already received this week. 12

13 4. Financial Review 1Q

14 Consistent Financial Performance Consolidated Results - Operational 1Q 14 1Q 13 $ % 1Q 14 1Q 13 $ % Operating revenue 542, ,468 92, % % Cost of sales (271,649) (229,143) (42,506) 18.5% (138.2) (125.1) (13.1) 10.5% Gross profit 270, ,325 50, % % Operating expenses (53,798) (49,399) (4,399) 8.9% (27.4) (27.0) (0.4) 1.5% Operating profit 216, ,926 45, % % Operating margin 40.0% 38.0% 40.0% 38.0% 542,254 39% Operating Revenue by Segment COP Million COP Million Variance USD Million Variance 449,468 33% 216,807 13% Operating Profit by Segment COP Million 170,926 9% 43% 46% 78% 77% 13% 16% 5% 6% 4% 5% 8% 6% 2014 IQ 2013 IQ 2014 IQ 2013 IQ Operating Revenues (+20.6%): Growth is explained mainly by increase of revenues in natural gas business: Calidda: new connections (Residential and Commercial) and higher volume distributed TGI: tariff scheme in force and Cusiana Phase II Operating Profit (+26.8%): Operational costs and expenses showed a moderate increase due to: TGI operational costs and expenses decreased by 12.1%, mainly due to a decrease in personnel services and general services and fuel gas costs. Contugas and Cálidda show increases mainly in costs related to fees, maintenance activities in the gas network and the cost of internal installations by third parties 14

EBITDA Evolution Consolidated Results At the end of 1Q 2014 operational

adjusted EBITDA, compared to 15% of participation in 2006.

Normalized Dividends: *2010 excludes dividends declared based on an early

These figures are included in 2011, when such dividends would normally have

15 EBITDA Evolution Consolidated Results At the end of 1Q 2014 operational Profits from controlled subsidiaries participate with 51% of the total adjusted EBITDA, compared to 15% of participation in Dividends from non-controlled companies participates with the remaining 49% Normalized Dividends: *2010 excludes dividends declared based on an early close of Gas Natural s, Emgesa s 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

Consistent Financial Performance Consolidated Results Non Operational COP Million Variance USD Million Variance 1Q 14 1Q 13 $ % 1Q 14 1Q 13 $ % Operating profit 542,254 449,468 92,786 20.6% 275.9 245.

16 Consistent Financial Performance Consolidated Results Non Operational COP Million Variance USD Million Variance 1Q 14 1Q 13 $ % 1Q 14 1Q 13 $ % Operating profit 542, ,468 92, % % Dividends 832, ,091 47, % (4.7) -1.1% Consolidated Adjusted EBITDA LTM 1,880,913 1,604, , % % Non-operating expenses 714, ,851 83, % % Net income before taxes and minority interest 930, , , % % Minority interest (28,541) (13,782) (14,759) 107.1% (14.5) (7.5) (7.0) 93.3% Provision for income tax (49,045) (20,751) (28,294) 136.4% (25.0) (11.3) (13.7) 121.2% Net income 853, ,244 86, % % Dividends: Increase of COP 47,715 million in terms of decreed dividends in favor of EEB, particularly those from Emgesa, Codensa and Gas Natural. Non Operating Expenses: Financial Expenses: Increase in COP 10,098 million, due to increase in financial debt in 2013 Calidda: USD 320 mm bond Contugas: USD 280 mm syndicated loan (USD 65 mm net) EEB: USD 139 mm, reopening bond Foreign Exchange Account: The revaluation of COP had a positive impact on the foreign exchange account, as a result of updating financial obligations of the Group denominated in USD, which is only for accounting purposes and does not correspond to cash expenditures. * EMSA, ISA, ISAGEN, REP-CTM, Others Net Income : Increase in 11.2% 16

17 Debt Indicators Consolidated Results Consolidated Debt Composition USD MM Consolidated Current Debt Maturity Profile USD MM Indebtedness in USD increased as a result of new debt issuance in

7 Billion Trading volume tripled after the Equity Offering Nov 2011.

18 EEB Share Performance 1Q 2014 Ticker EEB:CB As at May 13 th, 2014 EEB market capitalization was USD 7.7 Billion Trading volume tripled after the Equity Offering Nov The stock is part of COLCAP, COL20, and COLEQTY Average Target Price: COP 1,711 (USD 0.87) Dividend Payout Ratio 2013: 70% Avg : 79% Dividend Yield 2013: 3.5% Avg : 3.3% 18

19 5. Questions and Answers Conference Dial-In Numbers: Conference ID Participant Toll-Free Dial-In Number: +1 (877) Participant International Dial-In Number: +1 (224) Participant ITFS Dial-In Numbers: Chile: Colombia: Perú: United Kingdom:

20 Investor Relations For more information about Grupo Energía de Bogotá contact our Investor Relations team: Antonio Angarita Investor Relations Officer GEB +57 (1) ext 1546 aangarita@eeb.com.co Rafael Andres Salamanca Investor Relations Advisor GEB +57 (1) ext 1675 rsalamanca@eeb.com.co Fabian Sánchez Aldana Investor Relations Advisor GEB +57 (1) ext 1827 fsanchez@eeb.com.co

GRUPO ENERGÍA DE BOGOTA 2014 Key Results and Developments

GRUPO ENERGÍA DE BOGOTA 2014 Key Results and Developments March 12th, 2015 Agenda I. EEB Overview and Key Updates 2014 II. Expansion Projects Review III. Financial Review 2014 IV. Questions and Answers