Regional Leader in the Energy Sector

Transcription

1 Regional Leader in the Energy Sector 1

2 Over than 100 year of energy Foundation 1896 Private and vertically integrated company serving the market of Bogotá. Law142 & 143 Utilities Law 1997 Transformation 51,51% 51,51% Diversification 72% Growth 82,34% 98% Consolidation 100% 99,5% Expansion Codensa absorbs EEC New Corporate Strategy 20% Sale of the major shareholder Minor stake divestitures Street Lighting Bogotá 1992 Hidroelectric Power station El Guavio Agreement 1 Transformation into a company by shares Participation Private capital up to 49% Internacionalization Merger Transcogas - TGI (Ecogas) 97,91% 75% IPO EEB 100% 60% Acquisition 100% 51% 40% 15,6% 2

3 EEB Corporate Structure EEB is focused on natural monopolies in regulated sectors around three businesses, with a clear competitive strategy Urban Energy Solutions Total 6.0 mm Customers Electricity Distribution 3.5 mm Customers in Colombia Natural Gas Distribution 2.1 mm Customers in Colombia Natural Gas Distribution Peru 440K Customers Main Subsidiaries 51.3% 60% (1) 100% 16.2% 25% Interconnecting for Market Development Total 12.5 KM Transmission Grid Electricity Transmission 1,500 KM Transmission Grid in Colombia 9,500 KM Transmission Grid in Peru 400 KM Transmission Grid in Central America 1,100 KM Transmission Grid in Brazil Natural Gas Transportation 4,000 KM of Pipelines Main Subsidiaries 100% 99.97% (2) 100% 100% 95.3% 40% 40% Low Emission Generation Power Generation Main Subsidiaries 14,975 GWh Power Generated in % Source: Company Filings. (1) EEB effective ownership via direct and indirect stakes. (2) Ownership through GEBBRAS Special Purpose Vehicle, acquired on August 21,

4 INVESTMENTS Highlights FINANCIAL Highlights MAIN INVESTMENTS APPENDIX 4

5 INVESTMENTS Highlights FINANCIAL Highlights MAIN INVESTMENTS APPENDIX 5

6 Key Investment Highlights EEB represents an extraordinary opportunity to participate in a leading diversified platform across regional energy markets 1 Leading Participant in Relevant Energy Markets EEB s subsidiaries have market leading participations across the energy chain and are well positioned to benefit from the expected growth in electricity and natural gas markets in the region 4 Track Record of Creating Value for Shareholders EEB receives a stable flow of dividends from its subsidiaries with dividend policies that promote maximum payout ratios. In turn, EEB pays out an attractive and reliable amount of dividends to its shareholders 2 Strong Footprint in Attractive Energy Markets in LatAm Sound industry dynamics as well as strong growth outlooks for electricity and natural gas sectors in Colombia, Peru, Brazil and Guatemala provide significant growth opportunities for EEB and its subsidiaries 5 Continued Access to Financial Markets to Fund Expansions EEB has successfully accessed the debt and equity markets in recent years to help finance important investment plans. Several liability management transactions undertaken to reduce EEB s overall financial costs 3 Growing Revenue Base Propelled by Disciplined Capex Planning Due to the industry s regulated framework, EEB s distribution and transportation businesses provide stable streams of predictable earnings. Carefully selected brownfield projects also provide significant growth opportunities 6 Strong Shareholders and Partners EEB has strong relationships with its shareholders, including the Government of Bogotá, as well as with its partners (e.g. Grupo Enel, Gas Natural, ISA, Furnas, etc.) 6

7 1 Leading Participant in Relevant Energy Markets EEB s subsidiaries have market leading participations across the energy chain in Colombia, Peru and Guatemala Electricity Distribution Market Share (%) (Kwh) 22.1% # 1 Colombia Transmission Market Share (%) (% NTS (1) Revenues Gtm) Electricity 20.8% # 1 Guatemala Guatemala Colombia Peru Brazil Transmission Market Share (%) (% NTS (1) Revenues) 12.6% Generation Market Share Inst. Capacity (%) 22.7% Market Share Generation (%) 21.0% Natural Gas # 2 Colombia # 3 Colombia Transmission Market Share (%) (% NTS (1) Revenues Peru) Electricity 66.3% # 1 Peru Market Share (%) (# of clients) Distribution Transport Market Share(%) (Transported volume) 65.4% 84.7% # 1 Colombia # 1 Colombia (2) (2) Natural Gas Distribution Market Share (%) (Demand volume) 81.0% # 1 Peru Source: Company fillings. (1) National Transmission System. (2) Under divestiture process through Law 226/1995. Transmission Market Share (%) (Km of kv lines) Electricity 1.1% Brazil 7

8 2 Strong Footprint in LatAm Natural Gas Markets EEB is well positioned to benefit from the expected growth in the natural gas sector via its investments in TGI, Gas Natural, Promigas, Calidda & Contugas. Colombia Natural Gas Footprint Peru Natural Gas Footprint Northern Producers: Chevron Ecopetrol Lower and Middle Magdalena Valley Medellin Cali 1.97 tcf 1.89 tcf Ballena Bucaramanga Bogota Cusiana Eastern Producers: 3.15 tcf Neiva Ecopetrol Equion Upper Magdalena Valley References Natural Gas Reserves City Field Proved Reserves 14,626 BCF Residential Industrial Natural Gas Pipeline Main grid expansion Natural Gas Demand (mmcfd) Natural Gas Demand (mmcfd) E Source: ANH, MEM, UPME (base case) E 8

9 2 And in LatAm Electricity Markets As Well Peru Sound electricity industry dynamics expected to positively impact EEB s performance, via its investments in Codensa, Emgesa, REP- CTM among others Colombia Electricity Demand (GWh) E Guatemala E E Source: ANH, MEM, UPME (medium scenario). 9

10 3 Growing Revenue Base As a result of participating in a regulated industry, EEB s revenues are stable and predictable (81% of total revenues come from regulated businesses) (COP mm) GAS NATURAL CALIDDA $ Natural Gas Distribution Revenue $ $ $ $ $ (COP mm) Electricity Distribution Revenue CODENSA $ $ $ EEC EMSA $ $ $ (USD mm) $872 $1,076 $1,133 $1,145 $1,216 $1,282 (USD mm) $1,809 $2,092 $1,973 $1,711 $1,415 $1,503 Natural Gas Transportation Revenue Electricity Transmission Revenue (COP mm) PROMIGAS TGI $ $ $ $ $ $ (COP mm) CTM REP EEB Tran. $ $ $ $ $ $ (USD mm) $423 $536 $578 $571 $643 $794 (USD mm) $426 $358 $289 $295 $317 $356 Source: Company filings. Note: Total of operating revenues per company aggregated figures for comparable purposes. Figures converted at an average exchange rate of USD/COP for 2011: $1,942.7; 2012: $1,768.2, 2013:$1,926.8; 2014: $2018.8, 2015:$ , 2016:$3, CAGR calculated in local currency. 10

11 Propelled by a Solid Capex Plan 3 Revenue growth has been sustained by a strong capex plan at the subsidiary and the associate level. Executed Capex by Companies (1) ( USD Mm) Executed Capex by Segment (1) ( USD Mm) Executed Capex by Country (1) ( USD Mm) Executed Capex by Investment (1) ( USD Mm) Source: Company filings. (1) Excludes Brazil GEBBRAS Capex. 11

12 Propelled by a Solid Capex Plan 3 Revenue growth has been sustained by a strong capex plan at the subsidiary and the associate level. Projects Update (2016) Projects Update (2016) UPME Project Status EAR (1) USD MM On Stream Chivor II Norte 54.9% /05/2017 Cartagena Bolívar 58.9% /11/2017 Río Córdoba 53.3% /07/2017 Armenia 96.0% /04/2017 Tesalia 85.0% /05/2017 On-going projects: Nueva Esperanza, Norte. New and existing demand Quality service and continuity Control operational risk Smart metering Sogamoso Norte 40.8% /09/2017 Refuerzo Suroccidental 500 kv 18.3% /09/2018 Ecopetrol San Fernando (2) 50.4% /06/2017 Río Cordoba Transformadores (2) 79.2% /08/2017 La Loma 500 Kv 62.1% /03/2017 La Loma 110 Kv (2) 9.5% /06/2018 On-going projects: CONCESION - MANTARO MARCONA LA PLANICIE INDUSTRIALES FRIASPATA MOLLEPATA and ORCOTUNA Substation Drummond Rio Cordoba (2) 24.2% /07/ Source: Company filings. (1) Expected annual revenues. (2) Revenues are in COP, EOP: COP 3,

13 Track Record of Creating Value Share Price Appreciation 4 EEB s shares over the last year have been provided stable returns in a volatile market environment. Price (Indexado 100) Volume (COP mm) Historical Share Price Evolution Last 12 Months Volumen Acción EEB COLCAP Colombia Colcap 19.6% % / / / / / / / / / / / /2016 Ticker EEB: CB Part of COLCAP, and COLIR and DJSI As of December 30 th 2016 EEB s marketcap was USD 5.9 Billion Average Target Price COP1,970 (USD 0.65) (1) Dividend Payout Ratio 2016: 70% Avg : 80% Dividend Yield 2017: 5.5% Avg : 4.4% - Source: Bloomberg since January1st 2015 until December 30t 2016 (1) Average target price calculated as the average of the following brokers: Credicorp: COP1,860; BTG: COP1,960; Acciones y Valores: COP1,900; Corredores Davivienda: COP 2,200; Alianza Valores: COP1,900; Valores Bancolombia: COP1,800. Larrainvial: COP 2,100: Corficolombiana COP

14 4 Track Record of Creating Value Share Price Appreciation EEB receives a stable stream of dividends from subsidiaries with dividend policies that promote maximum payout ratios. Dividends per Share (1)(2) Dividend Yield (COP / Share) $82,0 $34,9 $44,0 $64,3 $119,9 $50,0 $24,4 $99,0 8,0% (COP / Share) 6,0% $1.175 $ ,0% 3,0% 3,5% 2,0% $ ,3% $1.700 $1.720 $ ,1% 4,3% 7.1% $ ,4% $2.000 $1.500 $1.000 $500 4Q 10 1Q 11 1Q 12 1Q 13 1Q 14 4Q 14 1Q 15 3Q 15 1Q 16 1Q 17 (USD) $ $0.02 $0.02 $0.03 $ $0.02 $0.01 $0.03 0,0% $ Avg Closing Share Price at the End of the Previous Year in COP Dividend Yield 150% 141% 100% 50% $ $ Dividend Payout Ratio Evolution (3) $ $ $ % $ $ % $ $ $ % $ % $ % 70% 71% $ $ $ % 58% $ $ $ $ $ (COP mm) $ $ $ % Avg Net Profit Dividends Value Dividend Payout + Including Released Reserves Source Company filings. (1) The values of years prior to 2011 dividend were adjusted split 100:1, which applied since the Outstanding shares after that day: 9,181,177,017. (2) EEB decreed no dividends neither 1Q 11 nor 1Q 15 due to an anticipated close of the financial statements. (3) Dividends are declared based on standalone financial staements $0 14

15 Continued Access to Financial Markets to Fund Expansions 5 EEB has successfully accessed the debt and equity capital markets in recent years, helping finance important investments. Transactions Executed in the Capital Markets (USD mm) EEB Bond (1) 8.75% USD 610 M TGI Bond (1) 9.5% USD 750 M CAF Facility USD 100M IPO USD 415 M LM (1) Bond EEB 6.125% USD 610 M LM (1) TGI Bond 5.7% USD 750 M Facility Contugas USD 310 M Cálidda Bond (1) 4.375% USD 320 M Facility Contugas USD 24 M Facility IELAH USD 645 M Facility Contugas USD 8 M Facility Cálidda USD 30 M Facility TRECSA USD 87 M Facility Cálidda USD 24 M EEB Local Bond Issuance USD 225 M Re Opening (1) EEB Bond USD 139 M Facility EEBIS USD 48 M Outstanding Bonds (2016) (USD mm) $749 mm EEB 2021 EEB/Subsidiaries Moody s Baa2; stable S&P BBB-; stable Fitch BBB; stable Issuer Baa2 BBB- AAA (Col) Associates Local AAA $1,300 mm S&P BBB; stable Fitch BBB; stable $450 mm Local AAA $750 mm TGI 2022 Moody s Baa3; stable S&P BBB-; stable Fitch BBB; stable Issuer Baa3 BBB- BBB $547 mm Local AAA Fitch AAA, Stable $487 mm Local AAA $320 mm Cálidda 2023 Moody s Baa3; Stable S&P BBB-; stable Fitch BBB; stable Issuer Baa3 BBB- BBB Source: EEB, Companies Fillings, Bloomberg. (1) Bonds issuance under Rule 144A/ Reg S; LM: Liability Management. $786 mm Local AAA - F1 + (col) Fitch BBB; stable S&P BBB-; stable Moodys Baa2; stable $270 mm Local AAA 15

16 Strong Shareholders and Partners 6 EEB has strong relationships with its shareholders, including the Government of Bogotá, as well as with its partners (e.g. Enel Group, Gas Natural, ISA, Furnas etc) Ownership Structure December 2016 Key Partners (2016) 61 million clients + 30 countries USD 75,933 mm revenues 23 million clients + 20 countries USD 25,708 mm revenues + 7 million clients 2 countries USD 1,339 mm revenues +4 countries USD3,985 mm revenues 12 Brazil States USD 6,123 mm revenues 16

17 INVESTMENTS Highlights FINANCIAL Highlights Overview of MAIN INVESTMENTS APPENDIX 17

18 Consolidated Financial Results EEB has exhibited sound growth rates in terms of revenues and operating profit. Operating Revenues Operating Profit (COP mm) $ $ $ $ $ $ (COP mm) $ $ $ $ $ $ (USD mm) $732 $895 $1,015 $1,287 $1,234 $1, (USD mm) $283 $316 $316 $345 $386 $355 Consolidated Adjusted EBITDA Net Income to Common Shareholders (COP mm) $ $ $ $ $ $ (COP mm) Lower net income due to Emgesa, Codensa and Gas Natural declaring extraordinary dividends at the end of 2010 based on partial year results $ $ $ $ $ $ (USD mm) $705 $819 $922 $973 $871 $ (USD mm) $157 $391 $438 $404 $366 $424 Source: Company filings. Note: Figures for the years are presented under ColGaap standards. Figures for 2014, 2015 & 2016 are presented under IFRS standards. Figures converted at an average exchange rate of USD/COP for 2011: $1,942.7; 2012: $1,768.2, 2013:$1,926.8; 2014: $2018.8, 2015:$ , 2016:$3, CAGR calculated in local currency. 18

19 Evolution of EBITDA Operational EBITDA has increased from 19% to 70% of Consolidated Adjusted EBITDA over the last 10 years demonstrating increased strength of EEB s controlled assets. (COP mm) Normalized Consolidated Adjusted EBITDA (1) Consolidated Adjusted EBITDA by Subsidiary Consolidated Adjusted EBITDA by Segment EEB has significantly increased its operational EBITDA generation (USD mm) Source: Company filings. Note: Figures for the years are presented under ColGaap standards. For 2014, 2015 & 2016 are presented under IFRS.. Figures converted at an average exchange rate of USD/COP for 2011: $1,942.7; 2012: $1,768.2, 2013:$1,926.8; 2014: $2018.8, 2015:$ , 2016:$3, CAGR Calculated in Local Currency. (1) Normalized of timing differences in dividends declared and paid excludes dividends declared based on an early financial closure 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 of 2011, were included in excludes dividends declared based on an early financial closure of Gas Natural, Emgesa and Codensa s financial statement, these figures are included in 2015, when such dividends would normally have been declared. 19

20 Financial Plan Investments and Funding Sources 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 Source: Company filings. (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 20

21 Description of Indebtedness Investments and Funding Sources Net Debt / Consolidated Adjusted EBITDA (1) Consolidated Adjusted EBITDA / Net Interest (1) 3,20x 2,78x 4,50x 2,63x 2,40x 2,56x 7,30x 8,80x 7,55x 7,63x 7,40x 2,25x Q 16 2Q 16 3Q Q 16 2Q 16 3Q (USD mm) USD COP PEN 3,4% 96,6% $1.543 Consolidated Debt Composition Debt Maturity Profile (2) 0,7% 1,2% 99,3% 98,0% 2,2% 6,4% 2,9% 97,8% 93,6% 97,1% $3.009 $2.803 $2.567 $2.218 $1.737 $1.733 (USD mm) 1,00% 773,7 758,7 99,0% 588,0 328,7 125,4 44,7 36,9 8,7 8,7 8,7 8,7 4, Source: Company filings. (1) EEB isn't subject to the restricted covenants stipulated in the USD749,000,000 EEB 6.125% Senior Notes due 2021, given that EEB is rated investment grade by at least two of the three major rating agencies. (2) Debt maturity profile as of December includes 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). 21

22 INVESTMENTS Highlights FINANCIAL Highlights MAIN INVESTMENTS APPENDIX 22

23 EMGESA Company Overview EMGESA is one of the largest generators operating in Colombia with 3,469MW of installed capacity and a market share of ~21%, based on total Company Overview Summary Financials EMGESA is 51.5% owned by EEB and 48.5% owned by Endesa Company completed its 400MW El Quimbo hydro plant in Huila department in 4Q15 El Quimbo required a total investment of ~USD1,231 mm with the ability to generate ~2,000 GWh per year Other projects include 4 hydro plants with a total a installed capacity of ~1,070 MW which are expected to generate a total of ~5,400 GWh per year ~93% of all energy produced by EMGESA comes from hydro generation facilities Strong growth in underlying cash flows (EBITDA increasing by a 11.0% CAGR from ) Summary Income (COP mm) Revenues $2,144,233 $2,397,428 $2,640,021 $3,268,277 $3,514, % % Growth 12.9% 11.8% 10.1% 23.8% 7.5% -- EBITDA $1,380,920 $1,480,177 $1,730,802 $1,725,429 $1,984, % % Growth 9.9% 7.2% 16.9% (0.3%) 15.0% -- % Margin 64.4% 61.7% 65.6% 52.8% 56.5% -- Net Income $783,529 $870,141 $1,015,945 $885,455 $753,725 (1.3%) % Growth 17.3% 11.1% 16.8% (12.8%) (14.9%) -- % Margin 36.5% 36.3% 38.5% 27.1% 21.4% -- Summary Balance Sheet Dividends and Reserves Declared to EEB 345, , ,548 97, , % CapEx 646, , , , ,198 (26.4%) Net Debt 1,841,385 2,354,496 3,741,406 3,790,971 3,755, % Net Debt / LTM EBITDA 1.3x 1.6x 1.5x 2.2x 1.9x -- Key Operational Statistics (2016) Generation Evolution (2016) Energy Generated (GWh) 14,975 Energy Sales (GWh) 18,015 Installed Capacity (MW) 3,469 Fuel Mix (Based on MW) Hydro 93.7% / Thermo 6.3% Contracted Energy Sales 74% Dispatch Factor 90.8% Load Factor 51.9% (GWh) Lower generation due to lower hydro generation (-7.2%) caused by low precipitation in the year Source: Company filings.. 23

24 CODENSA Company Overview CODENSA is a leading distribution company in Colombia with a market share of ~23% and approximately 3.2 million customers. Company Overview Summary Financials CODENSA is 51.3% owned by EEB and 48.3% owned by Endesa Serves nearly 3.2 million customers as of 4Q 16 Reduced energy losses from over 23% in 1997 to 10.2% in 2003 and 7.1% in 2015, its lowest level in company history Demand expected to continue to grow above national GDP during upcoming years Approved project for an additional 600MW of transformation capacity to meet the growing demand from the north of Bogota and Cundinamarca Energy Sales (GWh) Residential Other Key Operational Statistics (2016) 14,646 63% 37% Total Customers ( 000s) 3,249 Customer Split: Residential Other 89% 11% Energy Losses (% of Energy Distributed) 7.1% Summary Income (COP mm) Revenues $3,141,800 $3,212,218 $3,435,157 $3,711,866 $4,189, % % Growth 5.2% 2.2% 6.9% 8.1% 12.9% -- EBITDA $1,090,892 $1,108,179 $1,170,377 $1,238,636 $1,409, % % Growth 11.8% 1.6% 5.6% 5.8% 13.8% -- % Margin 34.7% 34.5% 34.1% 33.4% 33.6% -- Net Income $510,993 $535,911 $536,696 $516,935 $542, % % Growth 11.7% 4.9% 0.1% (3.7%) 5.0% -- % Margin 16.3% 16.7% 15.6% 13.9% 13.0% -- Summary Balance Sheet Dividends and Reserves Declared to EEB 69, , ,699 41, , % CapEx 241, , , , , % Net Debt 524, , , , , % Net Debt / LTM EBITDA 0.5x 0.5x 0.5x 0.6x 0.7x -- (GWh) Losses Ratio (%) Energy Sales & Growth % 7.3% 7.0% 7.2% 7.1% Source: Company filings.. 24

25 TGI Company Overview TGI is one of the two main natural gas transportation companies operating in Colombia with a ~51% market share based on transported natural gas volumes. Company Overview EEB holds a 99.9% stake in TGI and consolidates the company for financial reporting purposes Largest natural gas transporter in Colombia with ~51% market share Only natural gas transporter in Colombia connecting main sources of supply (Guajira and Cusiana) with the main consumption centers Transports gas through a network of 3,957km of pipeline ~92% of its capacity is contracted, with firm capacity contracts extending to the year 2026, ensuring a stable stream of cash flows Summary Financials(1) Summary Income (USD mm) Revenues $391 $465 $468 $439 $ % % Growth 15.2% 19.0% 0.6% (6.2%) -1.4% - EBITDA $ % % Growth 12.4% 22.5% 3.7% (3.0%) -1.6% - % Margin 75.0% 77.1% 79.5% 82.2% 82.0% - Net Income $ % % Margin 35.3% 15.0% 14.7% 10.2% 25.7% - Summary Balance Sheet Dividends and Reserves Declared to EEB $ 22 - CapEx $ % Senior Net Debt $ % Senior Net Debt / LTM EBITDA 2.4x 1.4x 1.7x 1.7x 2.1x - Key Operational Statistics (2016) Total Nominal Capacity (MMCF/d) 733,8 Contracted Capacity (MMCF/d) 673 Average Volume (MMCF/d) 494 Availability Factor (%) 99.9% Annual Load Factor (%) 56.1% Gas Pipeline Length (Km) 3,957 Source: Company filings. (1). TGI s functional currency is the USD.. Contracted Firm Capacity & Availability (MMCF; %) Availability (%) 85% 88% 91% 94% 94% 25

26 Cálidda Company Overview Cálidda has residential presence in 17 districts and industrial network in more than 34 districts within Lima & Callao (Metropolitan area). Company Overview Summary Financials (1) Cálidda has the concession of the Peruvian State to build and operate the system of distribution of natural gas in the Department of Lima and Callao for a period of 33 years, renewable every 10 years to a maximum of 60 years. Cálidda concession area concentrates more than 34% of the Peru s population and more than 44% of the GDP of the Peru. Calidda s pipeline current capacity is 420MMPCD (from Citi Gate Lurín to Lima). Independent and regulated customers located down flow Lurín use nearly 295MMPCD, equivalent to 70% of our capacity. During 4Q 2016, 1,435 km of network were built, the distribution system reached a total of 7,425 km of underground pipelines Summary Income (USD mm) Revenues $370 $461 $512 $541 $ % % Growth 25% 11% 6% -0.9% EBITDA $64 $72 $91 $104 $ % % Growth 12% 27% 14% - - % Margin 17% 16% 18% 19% 23.2% - Net Income $27 $17 $35 $34 $ % % Growth -37% 111% -5% 10.3% - % Margin 4% 7% 6% $ % Summary Balance Sheet Dividends and Reserves Declared to EEB $32 $30 CapEx $96 $98 $83 $85 $85-3.0% Net Debt $151 $213 $239 $266 $ % Net Debt / LTM EBITDA 2.3x 3.0x 2.6x 2.6x 2.8x Key Operational Statistics (2016) Contracted Firm Capacity Total Nominal Capacity (MMCF/d) 582 (MMCF; %) Contracted Capacity (MMCF/d) 602 Average Volume (MMCF/d) 618 Market Share (%) 81% Gas Pipeline Length (km) 7, Source: Company filings. (1) Cálidda functional currency is USD

27 INVESTMENTS Highlights FINANCIAL Highlights MAIN INVESTMENTS APPENDIX 27

28 EEB has a strong corporate governance Experienced Management and Board of Directors Corporate Governance and Transparency The government of the District of Bogotá is responsible for appointing a majority of the members of EEB s board of directors and executive officers, including EEB s president Executives Position Year of a appointment Astrid Álvarez President 2016 Leonardo Garnica Investments VP 2016 Ernesto Moreno Transmission VP 1997 Felipe Castilla Financial VP 2013 Vacancy Human Resources & Services VP Diana Vivas Legal & Regulation VP 2016 Juan Daniel Avila Sustainable Development Director 2016 Mauro Hernan Mejia Strategic Supply Chain Director 2016 Sandra Aguillón Internal Audit Director 2011 Vacancy Communications Director Board of Director (1) Possition Actual Position Year Beatriz E. Arbeláez Martínez Chairman District s Finance Secretary 2016 Jaime E. Ruiz Llano Vice-president Colvivienda CEO 2016 Roberto Holguin Director Davivienda s among others BoD Member 2017 Gisele Manrique Director Major s Office Chief Counsel 2016 Margarita Ma. Rehbein Dávila Director CFO Sanford Management 2016 Carlos A. Sandoval Reyes Director Structured Finance VP FDN 2016 Luis Fernando Uribe Director(2) Partner Uribe & Rodriguiez Lawyers 2017 Rafael Herz Stenberg Director(2) Asoc. Colom. del Petróleo VP 2016 Gustavo Ramirez Director(2) Investment VP Corficolombiana 2012 Shareholder s Meeting 2016 approved new bylaws which are accord to the OECD and Circular 028 Colombian Superintendence EEB Management policies must be approved by the BoD. The nomination and appointment of the EEB s CEO is rule by the BoD. More than 25% of the BoD are independent. High quality in disclosure standards. EEB is an issuer with IR recognition of the Colombian Securities Exchange Shareholders Meeting Peak governance body Compensation Committee and Financial insvestments Committee Made up by three independent board members External Controls Tax Review, External Audit, specialized audits, City Controllers Office, SSPD and SFC Corporate Governance Committee Three board members. At least one of them must be independent Audit and risk Committee Made up by three independent board members Strategic Supply Chain Committee and Executive Contract Committee Analysis of contracting procedures and recommendations to the Executive Committee Note: (1) The Board of Directors is responsible for establishing general business policies and guidelines, as well as long-term strategy. All directors are elected for an unlimited duration. Directors must remain in office until their successors are elected and have taken office (2) independent member. Source: Offering Memorandum. 28

29 81% of revenues comes from regulated business Predictability and stability in regulated business Generation Electricity Natural Gas Transmission Distribution Transport Distribution ENFICC (1) Bilateral 2.5% Regulated 81% Contracts: 70% Non-regulated 16.5% Spot: 30% (1) ENFICC: Reliability - Regulated Entry Fee: 13% of revenues from Emgesa are derived from the charge for reliability (ENFICC), an income secured by the regulation 29

30 Investor Relations Felipe Castilla Canales +57 (1) Ext 1501 Julian Naranjo Porras +57 (1) Ext 1536 CFO Financing and IR Manager Fabián Sánchez Aldana +57 (1) Ext 1827 Rafael Salamanca Rodriguez +57 (1) Ext 1675 Financing & Investor Relations Advisor GEB Investor Relations Advisor GEB Paola Viloria Severiche +57 (1) Ext 1611 Financing & Investor Relations Advisor GEB

31 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. 3131

32 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.