Included in The Sustainabilty Yearbook Q2018 Report

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1 Included in The Sustainabilty Yearbook Q2018 Report

2 Agenda Relevant events Energy market Work progress in main project: Ituango Financial results as of March 2018 Note: please, see disclaimer at the end of the presentation. 2

3 Relevant events of the quarter and subsequent to the closing In March, EPM paid COP 150 thousand million surpluses to the Municipality of Medellin (corresponding to the disposal of the Isagen shares). During the year, the accumulated surpluses paid amount to COP 436 thousand million. On March 22, EPM selected the firm KPMG SAS, as its External Auditor for the period between May 1 st of 2018 and April 30 th of On April 25 th, the Board of Directors approved the acquisition of a controlling stake in Gas Natural S.A. E.S.P. through a takeover bid or a competitive takeover bid. The credit operations were authorized to finance the acquisition and the respective budget modification. 3

4 Energy Market EPM Group Commercial Power Demand Accumulated Commercial Demand 1Q 2018 [GWh] 2.6% 25% 2.7% % % 26% 41% Colombia Panamá El Salvador Guatemala % Country s demand variation 1Q2018 vs 1Q2017 Note: We report the commercial demand that depends on customers served directly by each company regardless of the distribution network to which regulated and unregulated users are connected. The country's demand reported does not include energy exports. 1Q = First Quarter % EPM Group country demand s share. Demanda País Country s demand Demanda Grupo EPM Group s demand Colombian Companies GWh International Companies GWh EDEQ CHEC CENS ESSA EPM ,9% ,8% ,1% Q2017 1T 1T 1Q2018 1Q2017 1Q2018-0,5% Total Colombian companies: 1Q2017 : 3,848 GWh 1Q2018: 4,116 GWh Var: 7.0% 9,8% COMEGSA EEGSA DEL DELSUR ENSA 1T T 2018 Total international companies: 1Q2017: 2,321 GWh ,5% ,8% 1Q2018:2,369 GWh Var: 2.1% 1, ,

5 Energy Market Spot Price USD/MWh and EPM Generation (GWh) Spot Price USD/MWh 1Q2017 1T 1Q2018 1T GUATEMALA 47,4 61,8-23,3% CHILE* 42 20% 50 EL SALVADOR 113 9% 123 PANAMA 77,9 70,7-9, COLOMBIA % During 1Q2018 in Chile and El Salvador, spot price increased, mainly by the increase in fuel prices. Contrary to Guatemala and Panama, where the spot price declined. In Colombia, in turn, the spot price increased 15%, due to the hydraulic generation component that is high and due to the climatic condition of 1Q2018 compared to 1Q2017, that had a stable behavior, but with lower water input. NOTES: First Quarter average spot prices. *Price of La Cebada node where EPM s Los Cururos plant is connected. EPM Group Power Generation in Colombia % International Subs. Power Generation [GWh] 1Q2017 1Q % T 1Q2017 1Q2018 1T Cururos CHILE Bonyic PANAMÁ 5

6 Main Infrastructure Project Ituango Hydroelectric Generation Plant 83.5% total work progress as of March 2018 Invested to date: COP 8.3 billion (USD 2.8 bn equiv.) Progress of main civil works: The Dam, 225 m high with 20 million m 3 of rock is at 85% of construction. The Spillway, (a channel to control river floods of more than 22,600 m 3 /s of water and whose construction means excavating 14 million m 3 of rock) is at 99% of construction. The Power House was concluded. Progress in power generation equipment: 1st stage/4 power generation units: 4 turbines of 300 MW each and 4 generators of 336 MVA each. The manufacture is at 100% and the assembly is at 25.3%. 25 transformers in total, of 112 MVA each. At the North Area the manufacture and assembly are at 100%. In the South Area, the manufacture is at 100%. 2 Crane bridges of 600 tons of total capacity are under operation. External civil Works: spillway and dam Civil Works at the Powerhouse: equipment s assembly (turbines and generators) 6

7 Main Infrastructure Project Ituango Hydroelectric Generation Plant Total cost: COP 11.4 billion (USD 3.8 billion equiv.) Financing allocated to date : COP 7.4 billion (USD million equiv.) Represents 64% of the total cost of the project. Disbursed to date: COP 3.6 billion (USD million equiv.) Financing Strategy: 64% debt, 36% equity Loans Agreements subscribed: Local bonds: COP million Global COP bonds: COP 2 billion Club Deal: USD 106 million BNDES: USD 111 million EDC: USD 135 million BID-IIC and other banks: USD million (signed on December 29 th,2017) 7

8 Financial Results as of March 31, 2018 Capex EPM Group Figures in COP million EPM Group 1Q2018 Ituango 423,489 Aguas Claras Park Waste-Water Treatment Plant 4% 1Q2018 Investments Colombian Water Subsidiaries 1% Colombian Power Subsidiaries 10% EPM Parent Company (excluding Ituango) 150,700 International Subsidiaries 94,295 Aguas Claras Park Waste-Water Treatment Plant 32,990 International Subsidiaries 1 COP 785 thousand million Ituango 54% Colombian Power Subsidiaries 75,272 Colombian Water Subsidiaries 7,936 EPM Parent Company (excluding Ituango) 19% Total 784,682 Power: 83% Water: 17% EPM Group Investments as of March: COP 785 thousand million 8

9 Financial Results as of March 31, 2018 Macroeconomic Scenario CPI: Consumer Price Index PPI: Producer Price Index WPI: Wholesale Price Index (Panama and El Salvador) Concept Colombia Chile Guatemala Panama Mexico El Salvador CPI 1,58% 0,71% -0,37% 0,57% 1,24% 0,11% CPI (accumulated 12 months) 3,14% 1,81% 4,14% 0,57% 5,04% 0,91% PPI/WPI 0,24% -1,99% N.A. N.A. 1,74% 0,65% PPI/WPI (accumulated 12 months) 1,65% 4,81% N.A. N.A. 3,64% 1,26% Exchange rate (month-end) 2.780,47 605,26 7,40 N.A. 18,27 N.A. Devaluation/Revaluation -6,8-1,6 0,74% N.A. -7,08% N.A. 9

10 Financial Results as of March 31, 2018 EPM Group Income Statement Figures in COP thousand million Revenues EBITDA Comprehensive income Revenues: 8% EBITDA: 13% Comprehensive income: 28% Jan - Mar 2017 Jan - Mar 2018 EBITDA margin Operational margin Net Margin Revenues increased COP 280, 8%, explained by greater demand on the non-regulated market and long-term sales on EPM Parent Company. 3 26% 34% 28% EBITDA rose COP 145, 13% with respect to previous year. Comprehensive income rose COP 168, 28%, due to higher operating income in COP 147 and greater dividends in COP % 20% Jan - Mar 2017 Jan - Mar

11 Financial Results as of March 31, 2018 EPM Group by Colombian and International Subsidiaries Figures in COP thousand million 49% 64% 74% Revenues COP 3,851 16% EBITDA COP 1,288 Comprehensive Income COP % 33% 1% 20% 1% 14% 11% El Salvador 15% Chile 11% Mexico Guatemala 36% Chile 26% Mexico 4% Guatemala 38% Chile 16% Bermudas Panama 36% El Salvador 9% Panama 2 El Salvador 10% Panama 20% Guatemala 5 11

12 Financial Results as of March 31, 2018 EPM Group by Segments Figures in COP thousand million 5% 7% 5% Revenues COP 3,851 21% 10% 8% EBITDA COP 1,288 34% 60% 6% 6% 4 4% 35% Comprehensive Income COP % 12

13 Financial Results as of March 31, 2018 EPM Group EBITDA Figures in COP thousand million CAGR: LTM 4,877 4,732 11% 4% 7% 3% 13

14 Var. EBITDA Financial Results as of March 31, 2018 EPM Group EBITDA 50% 30% EBITDA Group Var. 17% CENS ENSA CHEC EPM HET 10% DELSUR DECA ESSA ADASA 0% 10% 20% 30% 40% 50% 60% 70% -10% EDEQ -30% EBITDA Group Margin 3-50% CURUROS -70% -90% EBITDA Margin 14

15 Financial Results as of March 31, 2018 EPM Group Statement of Financial Position Figures in COP thousand million Assets Liabilities Equity CAGR: 5.7% % Assets % % EBITDA/financial expenses Ratios Total debt Financial debt EBITDA/financial expenses Total Long Term Debt/EBITDA Total Long term debt/ebitda

16 Financial Results as of March 31, 2018 Debt Profile Figures in COP thousand million Source Companies Currency* Local Banks 11% International Banks 21% AFD 4% JBIC BID 8% COP 17,131 Local Bond 15% USD Bond 11% Global COP 27% International Subs. 19% Colombian Subs. 6% COP 17,131 EPM Parent Company 75% GTQ 3% MXN COP 7 CLP 8% COP 17,131 USD 15% *After hedging 1,258 A d a s a Maturities Average term: ,390 B B 1,250 o o n n B d d o n d ,300 G l o b a l Internal External 16

17 Disclaimer o Below is a general information presentation about Empresas Públicas de Medellín ESP and its Subsidiaries, as on the date of presentation. The materials herein contained have been summarized and do not intend to be complete. o This presentation contains forward-looking statements which are subject to several risks, uncertainties and circumstances relative to the operations and business environments of EPM. These factors could cause actual results to materially differ from any future result, expressed or implied, in such forward-looking statements. Accordingly, EPM cannot guarantee any results or future events. EPM expressly states that it will be under no obligation to update the forward-looking statements or any other information herein contained. o This presentation does not constitute any offer or invitation to offer, or a recommendation to enter into any transaction, agreement or contract with EPM. This presentation is for debate only and shall be referred to considering only the verbal information supplied by EPM, otherwise it would be incomplete. Neither this nor any of its contents may be used for any other purpose without the prior written consent of EPM. o Only for information matters and reader's convenience, figures in COP were translated in this presentation into their USD equivalent using the exchange rate of COP/USD $2.780,47 as of March 31, 2018, issued by the Colombian Financial Superintendence. Such translations do not agree with US GAAP and have not been audited. Also, they shall not be interpreted as representation of the amounts in Colombian Pesos, which could be translated into US Dollars at this or at any other rate.

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