Financial Statements Report Third Quarter 2016

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2 Outline 1. Major events 2. Industry 3. Financial results 4. Construction (part 1) Backlog 5. Investment portfolio (part 2) 6. Pipeline 7. Ownership structure and free float evolution 8. Stock performance 9. Events after the financial closure

3 1. Major events Subscription of Amendment No. 7 to contract entered into and between the Agencia Nacional de Infraestructura and Concesion Cesar Guajira S.A.S., whose purpose is to modify the scope of the project due to the no-installation of the Urumita and Cuestecitas toll stations. Liquidation of the contract between Sociedad Operadora de Aeropuertos Centro Norte S.A. Airplan S.A. and El Condor S.A., whose objective was the repaiving of the Los Garzones de Monteria airport runway and after the delivery of the construction within the contractually established term. The construction was submitted to the satisfaction of Airplan S.A. 3

4 2. Industry Quaterly GDP Construction: 5.8% Infrastructure works: 1.9% Buildings: 11% Annual percentage changes I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III Buildings Infrastructure works Construction 4

5 3. Financial Results Consolidated Financial Statements Beginning in the second quarter of 2015, Construcciones El Condor S.A. included in its consolidated financial statements the information of the societies Vias de las Americas S.A.S., Cesar Guajira S.A.S. y Ruta al Mar S.A.S., acting in conformity with relevant information published in the second, third and fourth quarters of Because in the third quarter of 2015 Construcciones El Condor S.A. was not the majority stakeholder in Ruta al Mar S.A.S., the consolidated information recorded in the same quarter of 2016 does not have corresponding figures for complete comparison. Income Statement Operating Revenues As of September 2016 As of September 2016 Operating revenues Operating costs GROSS PROFIT OPERATING PROFIT NET PROFIT EBITDA 417,413 (363,851) 53,562 29,174 25,882 49,796 Construcciones El Condor S.A.* Vias de las Americas S.A.S. Red Vial del Cesar S.A.S. Concesion Cesar Guajira S.A.S. Concesion Ruta al Mar S.A.S. TOTAL OPERATING REVENUES * Adjusted revenues excluding construction services for concessions. 262, , ,227 17, ,414 Amounts in MM COP 5

6 3. Financial Results Consolidated Financial Statements Beginning in the second quarter of 2015, Construcciones El Condor S.A. included in its consolidated financial statements the information of the societies Vias de las Americas S.A.S., Cesar Guajira S.A.S. y Ruta al Mar S.A.S., acting in conformity with relevant information published in the second, third and fourth quarters of Because in the third quarter of 2015 Construcciones El Condor S.A. was not the majority stakeholder in Ruta al Mar S.A.S., the consolidated information recorded in the same quarter of 2016 does not have corresponding figures for complete comparison. Balance Sheet Financial Debt As of September 2016 As of September 2016 Current assets Non - current assets TOTAL ASSETS Current liabilities Non - current liabilities TOTAL LIABILITIES Non - controlling interests EQUITY TOTAL LIABILITIES + EQUITY 1,090, ,131 2,010, , ,020 1,212,167 48, ,267 2,010,433 Construcciones El Condor S.A. Vias de las Americas S.A.S. Red Vial del Cesar S.A.S. Concesion Cesar Guajira S.A.S. Concesion Ruta al Mar S.A.S. TOTAL FINANCIAL DEBT 543, , ,536 It s important to note that consolidated financial statements will reflect the effect of individual concessions debt, whose values are very representative due to their Project Finance qualities. Amounts in MM COP 6

7 3. Financial Results Individual Financial Statements Operating Results third quarter rd. Quarter rd. Quarter 2015 Variation Sale of goods Service provision Operating revenues Operating costs GROSS PROFIT Administrative expenses Other revenues Other expenses Other income or losses OPERATING PROFIT 2,749 89,720 92,469 (76,360) 16,110 (6,822) 916 (1,663) (37) 8,503 2, , ,007 (125,957) 28,050 (5,980) 1,650 (943) (62) 22, % (40.8%) (40.0%) (39.4%) (42.6%) 14.1% (44.5%) 76.4% (39.5%) (62.6%) Amounts in MM COP The reduction in operating revenues is generated by the delay in the beginning of the construction phase of some projects. The company expects a recovery in the upcoming quarters. The operating income presented a decrease of 62,2% explained by a lower level of invoicing and an increase in administrative costs 7

8 3. Financial Results Individual Financial Statements EBITDA third quarter rd. Quarter rd. Quarter 2015 Variation GROSS PROFIT Administrative expenses Depreciation Amortization EBITDA EBITDA MARGIN NET PROFIT NET MARGIN CONSTRUCTION EBITDA CONSTRUCTION EBITDA MARGIN 16,110 (6,822) 5,000 3,438 17, % 7, % 17, % 28,050 (5,980) 4, , % 9, % 27, % (42.6%) 14.1% 6.9% 433.2% (35.3%) (19.4%) (35.3%) Amounts in MM COP The EBITDA presents a decrease of 35% associated with a lower level of income and an increase in administrative costs The amortizations show an important increase. EBITDA margin for the quarter: 19,2%. 8

9 3. Financial Results Individual Financial Statements Operating Results as of September 2016 As of September 2016 As of September 2015 Variation Operating revenues Operating costs GROSS PROFIT Administrative expenses Other revenues Other expenses Other income or losses OPERATING PROFIT 262,342 (222,105) 40,237 (17,866) 3,111 (5,677) , ,933 (294,619) 83,314 (16,080) 11,865 (5,463) 79, ,923 (30.6%) (24.6%) (51.7%) 11.1% (73.8%) 3.9% (99.6%) (86.8%) Amounts in MM COP A decrease in operational income was generated due to lower construction incomes resulting from delay in the beginning of the construction phase of some projects and the deferment of project segment releases in projects which are in the construction phase. Additionally, the reduction in investment dividends (Grupo Odinsa), which went from $ million to $329 million, also impacted this item. Operating profit was not comparable due to a non-recurring event (profit on the sale of Odinsa participation) in

10 3. Financial Results Individual Financial Statements EBITDA as of September 2016 As of September 2016 As of September 2015 Variation GROSS PROFIT Administrative expenses Depreciation Amortization Dividends EBITDA EBITDA MARGIN NET PROFIT NET MARGIN 40,237 (17,866) 14,777 6, , % 24, % 83,314 (16,080) 13,341 2,697 80, , % 122, % (51.7%) 11.1% 10.8% 129.8% (73.5%) (79.7%) Amounts in MM COP The decrease in EBITDA is explained mainly by the lower profit on the sale of investments (non-recurring event which occurred in the second quarter of sale of 5.44% of Odinsa shares), in addition to the lower level of operating income explained previously. The EBITDA margin was 16,5%. 10

11 3. Financial Results Individual Financial Statements Balance Sheet ASSETS Current Assets Non - Current Assets TOTAL ASSETS Amounts in MM COP As of September 2016 As of December ,964 1,011,474 1,633, , ,585 1,503,533 Variation 4.5% 11.3% 8.6% Assets composition Non - Current Assets Related parts accounts receivable equity contributions in concessionary partnerships through capital and subordinated debt. Principal increases were presented in Concesion Pacifico 3, Vias del Nus, Ruta al Mar, Cesar Guajira y Pacifico 2. 62% 38% Current Assets Non - Current Assets 11

12 3. Financial Results Individual Financial Statements Balance Sheet LIABILITIES Current Liabilities Non - Current Liabilities TOTAL LIABILITIES Amounts in MM COP As of September , , ,476 As of December , , ,063 Variation 26.8% 1.9% 17.0% Debt profile Long term 31% Short term 69% Current liabilities Increase in commercial accounts payable. Increase in financial obligations. DEBT RATIO Total Assets Total Debt DEBT RATIO As of September ,633, , % As of December ,503, , % Variation 8.6% 17.3% 8.0% 12

13 4. Construction Backlog balance of works hired and works to be executed TOTAL BACKLOG (December 2015) CONTRACTS TERMINATED BACKLOG ADJUSTMENT (as of September 2016) OPERATING REVENUES (as of September 2016)* OTHER CONSTRUCTION REVENUES (as of September 2016) NEW CONTRACTS (as of September 2016) TOTAL BACKLOG (as of September 2016) Amounts in MM COP Historical Backlog 3,155,328 0 (100,752) (260,643) 0 0 2,793,933 3,155,328 3,062,922 2,983,060 2,793,933 1,561,468 1,298,225 1,311,505 1,855, , T T Q3 * Adjusted operating revenues: dividends and other revenues not associated with the backlog are discounted. 13

14 4. Construction Backlog implementation 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

15 5. Investment Portfolio Concesion La Pintada S.A.S. Antioquia Share: 21,15% Financial close contracts formalized with participation from the national banks (Davivienda and Banco de Bogota) and international banks (Itau Unibanco S.A., New York Branch and Banco de Credito de Peru) Rehabilitation work for UFI 5, La Pintada Primavera, culminated within the contractual term. Availability of land ownership for the project is at 85% of the required track. The project holds all environmental licenses and permits necessary to begin construction of all UFIs. 15

16 5. Investment Portfolio Concesion Pacifico Tres S.A.S. Antioquia y Caldas Share: 48% Improvement activities continued in UFI 1 La Virginia Asia. Pre-requisite compliance continues to be worked on for the beginning of construction of the remaining UFIs. Required environmental licenses and permits for the 5 UFIs present advances of over 80% and in the majority of cases have already been approved. Availability of land ownership for the project is at 40% of the required track for almost all of the UFIs. 16

17 5. Investment Portfolio Concesion Aeropuerto El Dorado Bogotá Share: 15% National and international traffic has increased 2,7% and 6,5% respectively; achieving an increase of 3,97% in the passenger total. Likewise, aviation and non-aviation incomes have increased 7,5% and 19,5% respectively. Event prior to close: Sale of our participation in the partnership to Grupo Argos, equivalent to shares. 17

18 5. Investment Portfolio Concesion Aburra Norte S.A.S. Hatovial S.A.S. - Antioquia Share: 21,1% The Hatovial contract has a variable term based on the expected income. As of September 2016, 79,64% of the expected income has been attained. If the current rate of growth is maintained by the concession traffic (> 6%), the expected income would be reached in May 2020, 11 months before the estimated and agreed-upon period in the Amendment No. 21 of the concession contract. With relation to the Barbosa Pradera Cruce del Rio segment, the concessionary opened for operation this section on the 12th of October,

19 5. Investment Portfolio Concesion Vias de las Americas S.A.S. Colombia north zone Share: 66,67% Concession concluded the front of San Marcos, Montería - El 15 (South of Bolivar) is advancing in the construction of the second lane. Suscription of Addittional No. 12 for Monteria - El 15 was expected from the first quarter 2016, but it was just signed on June 2016, that s whythe execution that we had expected for the first half of the year was not possible, and will be executed on the second half of 2016 and the first quarter of Uraba front, which was paralyzed by the property definitions of the variants is already in construction. 19

20 5. Investment Portfolio Concesion Tunel Aburra Oriente S.A.S. Antioquia Share: 12,5% As of September 2016, Average Daily Traffic grew to vehicles, an increase of 10,67%. Work continues to be done on 5 work fronts of tunnel, open air roadways and structural foundation. The construction has an excavation percentage of 40,66%. The concession continues to work on the alignment of pre-requisite conditions for the first disbursement of the syndicated credit which was approved by various national banks. 20

21 5. Investment Portfolio PPP (Private Iniciative) Concesion Cesar Guajira S.A.S. (100%) Events occurring after the close: Concession accredited the financial close before the ANI. Construction phase begins. Original Project Modified project Planned intervention Values Planned intervention Values New tolls Total tolls Project scope Functional units ,3 7 New tolls Total tolls Project scope Functional units ,5 5 New contract value: $ million COP of December 2013 Stage: Preconstruction PPP: Private Iniciative Planned intervention Rehabilitation Operation and maintenance Construction Basic maintenance* Length approx. (Km) 206, ,2 116 * Only during the pre-operation stage 21

22 5. Investment Portfolio PPP (Private Iniciative) Concesion Vial de los Llanos S.A.S. (11%) Contract value: $ million COP of December 2013 Capex (infrastructure investment): $1,2 billion COP of December 2013 Stage: Preconstruction PPP: Private Iniciative On October 6th, the Amendment No. 4 to the contract was signed, through which the areas affected by the project were adjusted in order to eliminate the impact on land ownership costs. Villavicencio Granada META On November 4th, the ANI and the concession subscribed the Amendment No. 5, through which the financial close accreditation obligations and the beginning of the construction phase were suspended for a period of 30 days. In this project the parties involved will look for alternatives that will make the project viable in the most adequate conditions for the region. Planned intervention Construction Improvement Rehabilitation Length approx. (Km) 50,4 71,2 232,4 Milestones: April 10, Awarded / May 5, 2015 Contract was signed / June 6, 2015 Initiation act was signed. 22

23 5. Investment Portfolio PPP (Private Iniciative) Concesion Ruta al Mar (100%) Contract value: $ million COP of January 2014 Capex (infrastructure investment): $ million COP of January 2014 Stage: Preconstruction PPP: Private Iniciative Montería CÓRDOBA Cruz del Viso SUCRE BOLÍVAR Caucasia New tolls operating normally, Caimanera (between Tolu and Coveñas) and los Manguitos (near Planeta Rica). ANTIOQUIA Definitive designs continue to be developed; land ownership and environmental processes advancing in preparation for the beginning of construction. Financial close advances in an important fashion in terms of legal and technical due diligence. Financing structure to be announced in the coming months. Planned intervention Construction Improvement O&M Americas Length approx. (Km) 112,2 225,9 154,5 Milestones: September 18, Awarded / October 14, 2015 Contract was signed / November 27, 2015 Iniciation act was signed. 23

24 5. Investment Portfolio PPP (Private Iniciative) Vias del Nus (21%) Contract value: $ million COP of December 2013 Financial close requirements as well as required processes for the pre-construction phase are currently being advanced Milestones: December 3/ Awarded January 25/2016 Contract was signed March 9/2016 Initiation act was signed Altos de Dolores Bello Medellín ANTIOQUIA Planned intervention Operation and maintenance Construction Length approx. (Km) 97,5 24,2 24

25 6. Pipeline Additional bids Private and public work contracts Focus is on execution of the current backlog. New projects are being reviewed only if they are public work contracts or private contracts that do not demand equity. 25

26 7. Ownership structure Ownership structure as of September % 0% 5% 12% Family Pension funds 80% International Investors Individuals Corporations Total Shareholders:

27 7. Ownership structure Free float composition as of September % Pension funds 16% 61.44% International Investors Individuals Corporations 0.56% 27

28 7. Ownership structure Free float composition as of September 2016 % Shares April 2012 % Shares March 2016 % Shares September % 61.44% 38% 23% 27% 24% 22% 11% 14% 16% 0% 0.56% PENSION FUNDS INTERNATIONAL INVESTORS INDIVIDUALS CORPORATIONS 28

29 8. Stock performance Stock Quote - El Cóndor $2,000 $1,900 $1,800 $1,700 $1,600 Volume Price Average Volume $16,000 $14,000 $12,000 $10,000 $1,500 $1,400 $1,300 $1,200 $1,100 $8,000 $6,000 $4,000 $2,000 COP MM $1,000 $- 09/04/12 09/05/12 09/06/12 09/07/12 09/08/12 09/09/12 09/10/12 09/11/12 09/12/12 09/01/13 09/02/13 09/03/13 09/04/13 09/05/13 09/06/13 09/07/13 09/08/13 09/09/13 09/10/13 09/11/13 09/12/13 09/01/14 09/02/14 09/03/14 09/04/14 09/05/14 09/06/14 09/07/14 09/08/14 09/09/14 09/10/14 09/11/14 09/12/14 09/01/15 09/02/15 09/03/15 09/04/15 09/05/15 09/06/15 09/07/15 09/08/15 09/09/15 09/10/15 09/11/15 09/12/15 09/01/16 09/02/16 09/03/16 09/04/16 09/05/16 09/06/16 09/07/16 09/08/16 09/09/16 As of September, 2016 % Annual variation % Var. YTD ELCONDOR (pesos) COLCAP (points) 1,140 1, % 9.85% 5.56% 18.51% Source: Bolsa de Valores de Colombia, Construcciones El Condor S.A. 29

30 8. Stock performance El Cóndor VS Colcap Construcciones El Condor COLCAP /04/12 09/06/12 09/08/12 09/10/12 09/12/12 09/02/13 09/04/13 09/06/13 09/08/13 09/10/13 09/12/13 09/02/14 09/04/14 09/06/14 09/08/14 09/10/14 09/12/14 09/02/15 09/04/15 09/06/15 09/08/15 09/10/15 09/12/15 09/02/16 09/04/16 09/06/16 09/08/16 Market Cap Dividend yield 910, , , , , % 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 4.2% 3.1% 1.9% 2.0% 1.4% III $60 $50 $40 $30 $20 $10 $ III Dividend per share Dividend yield 30

31 9. Events after the financial closure Subscription of a settlement agreement between the ANI and Sociedad Vias de las Americas S.A.S., in relation to the arbitral lawsuit put forth by the concessionary against the ANI. The settlement agreement, which was approved in the arbitration tribunal, consists of reciprocal recognitions valued at COP $ in favor of the concessionary partnership. Construcciones El Condor S.A. and Concesion Red Vial del Cesar S.A.S. approved the merger agreement through which Construcciones El Condor absorbs its subsidiary, Concesion Red Vial del Cesar S.A.S. Subscription of an asset purchase contract between Construcciones El Condor S.A. and Grupo Argos S.A. for the divestiture of the 15% participation which Construcciones El Condor S.A. has in Opain S.A., the partnership in charge of the construction, operation and maintenance of the El Dorado airport in Bogota. Accreditation before the ANI (National Infrastructure Agency) of the financial close for the Cesar Guajira project. The construction phase begins officially. In alignment with the Company s financing strategy, Construcciones El Condor decides to participate in Odinsa s public takeover bid and sells the assets which it will receive as payment for its participation in this Company. 31

32 Disclaimer This document contains forward-looking statements on the intentions, expectations or forecasts of Construcciones El Condor S.A at the time the document was drawn up and in reference to various matters including, among others, its performance and other matters relating to the company activities and current position. These forward-looking statements or forecasts can in some cases be identied by terms such as expectation, anticipation, proposal, belief or similar, or their corresponding negatives, or by the very nature of predictions regarding strategies, plans or intentions. Such forward-looking statements or forecasts in no way constitute, by their very nature, guarantees of future performance but are conditional on the risks, uncertainties and other pertinent factors that may result in the eventual consequences diering materially from those contained in said intentions, expectations or forecasts. Construcciones El Condor S.A. does not undertake to publicly report on the outcome of any revision it makes of these statements to adapt them to circumstances or facts occurring subsequent to this presentation including, among others, changes in the business of the company, in its strategy for developing this business or any other possible unforeseen occurrence. The points contained in this disclaimer must be taken fully into account by all persons or entities obliged to take decisions or to draw up or to publish opinions on securities issued by the company and, in particular, by the analysts and investors reading this document. All the aforesaid persons are invited to consult the public documentation and information that Construcciones El Condor S.A. reports to or les with the bodies responsible for supervising the main securities markets and, in particular, with the Superintendencia Financiera de Colombia.