2Q 2019 August 22, 2019 1 Disclaimer The information provided - - PowerPoint PPT Presentation

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GEB Results Presentation 2Q 2019 August 22, 2019 1 Disclaimer The information provided herein is for informational and illustrative This presentation may contain statements that are forward-looking purposes only and is not, and does not seek


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GEB Results Presentation 2Q 2019

August 22, 2019

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2 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. GEB is no obligation to update or keep current the information contained herein. GEB expressly disclaims any responsibility for actions taken or not taken based on this information. GEB does not accept any responsibility for losses that might result from the execution of the proposals or recommendations presented. GEB is not responsible for any content that may originate with third parties. GEB 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

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reliability

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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 1934. Such forward- looking statements are based on current expectations, projections and assumptions about future events and trends that may affect GEB 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.

Disclaimer

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1.GEB at a Glance 2.Key Updates 3.Financial Performance 4.Investment Projects 5.Q & A

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GEB at a Glance

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1.1. Generalities

GEB is a leading energy holding in LatAm with a diversified portfolio of Power and Natural Gas utilities, classified in three strategic business groups:

Power Distribution Natural Gas Distribution 3,8 mm of clients in Power Distribution 3,2 mm customers in Natural Gas Distribution 13.928 km of Transmission Lines 4.288 km of Gas pipelines Power Transmission Natural Gas Transportation

Revenue 2Q 2019 COP$1.178.642 mm 26,4% YoY Jun-2019 COP$2.230.522 mm 23,0% YoY 6,2% Dividend Yield(2) Dividends Approved on 2018 Net Income COP$1.193.533 mm COP$130 per share (+13%)

Power Generation 3.500 MW in Installed Capacity 7.215 GWh in Power Generation (YTD)

CAPEX 2Q 2019 USD$76,5 mm Jun-2019 USD$146,5 mm

Distribution Generation Transportation and Transmission

Stock Market Capitalization COP$19.372.284 mm USD$6,0 bn June 30 2019

(1) Net Income: Controlling Interest + Non Controlling Interest (2) Calculated based on the closing price of the share at June 30 2019

Operating Income 2Q 2019 COP$410.423 mm 14,6% YoY Jun-2019 COP$850.562 mm 32,7% YoY EBITDA 2Q 2019 COP$536.251 mm 2,6% YoY Jun-2019 COP$1.947.172 mm 16,8% YoY Net Income(1) 2Q 2019 COP$582.871 mm 21,8% YoY Jun-2019 COP$1.103.760 mm 34,5% YoY

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Key Updates

2

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2.1. Relevant Facts 2Q 2019

  • April 26: GEB received the Bonds and Loans award, in the Best Andean Syndicated Loan category for 2018, for

accomplishing favorable refinancing conditions, including an important reduction in financing costs

  • June 28: 1st payment of dividends, corresponding to COP$65 per share and totaling COP$596.767 mm
  • Our auditor expanded on the comment on the opinion from December 2018, about the determination of the

final rates for the valuation of Gebbras financial asset. The June 2019 expert opinion was issued without comment about the opinion Subsequent events to the quarter:

  • July 8: The ANLA authorized GEB to construct the Alférez - San Marcos transmission line (37,3 km), which will

reduce the risk of failures and suspensions generated by overloads of the electric power system and will potentiate the connection of new users

  • July 22: : In the development of the MHCP authorization, GEB entered into an external public debt management
  • peration to refinance USD$749 mm
  • August 9: GEB acquired 100% of the shares of Dunas Energía, PPC Perú Holdings S.R.L. and Cantalloc Perú

Holdings S.R.L., an investment that will consolidate the Company's position in the Peruvian energy sector

  • Revenue increase in 2Q 2019 vs. 2Q 2018 equal to 9,0%
  • EBITDA margin 2Q 2019 grew 6,3pp to 78,4%
  • Confirmation of Moody's Baa3 bond rating, with a stable outlook
  • Subscription of contract for the first project of Works for Taxes for COP$8.500 mm for the construction and
  • ptimization of the aqueduct’s networks system in the urban area of La Paz, Cesar
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2.2. Relevant Facts 2Q 2019

  • During the quarter, a total of 50.086 customers were connected and 372 km of polyethylene networks were built
  • As of June 2019, the Company had 852.746 connected customers in Lima and Callao and 1.448 km of polyethylene

networks and 34 km of steel networks built, raising the Company's underground networks to 10.407 km Subsequent events to the quarter:

  • In July Osinergmin approved an extension to the current five-year investment plan (May 2018 to May 2022),

recognizing additional investments of more than USD$180 mm, reaching a total of approx. USD$500 mm, and incorporating more than 120.000 additional customers, surpassing the 500.000 new users for this period

  • In August, Moody's, Fitch and S&P Global reaffirmed Cálidda's credit ratings at Baa2, BBB and BBB-, all with a

stable outlook

  • Filing before the MHCP the request for approval for GEB and TGI to grant their guarantee for the subscription of a

new syndicated loan for USD$355 mm

  • Disbursement of short-term debt of USD$2,25 mm to finance temporary liquidity needs
  • Early fulfillment of the BOOT contract obligation consisting of the connection of more than 50,000 customers by

year 5, which by the end of June were reported in a total of 50.801

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Financial Performance

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(Consolidated)

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3.1. Operational Performance

Revenue from Operational Activities

3 months figures / Millions COP$

$932.451 $1.178.642 2Q 2018 2Q 2019 +26,4% YoY

Revenue by Business Lines | 2Q 2019 2Q 2019 Vs. 2Q 2018 +26,4% Natural Gas Distribution +28,6%; +COP$144.586 mm:

  • Cálidda: Expansion of the network; increase in distribution
  • f natural gas; and higher placement of financing loans for

residential natural gas installations Natural Gas Transportation +24,1%; +COP$74.776 mm:

  • The delta stamp fee rate for works in the Armenia Loop is

included in all contracts

  • Variable charges +45% between 2Q 2018 and 2Q 2019 due

to higher volumes transported, corresponding to take-and- pay contracts

  • Approximately 91,2% of the revenues derived from fixed

charges of "firm" transportation contracts Power Transmission +23,1%; +COP$26.829 mm:

  • GEB: UPME-04-2014 Refuerzo Suroccidental Heliconia

(Antioquia), Pereira (Risaralda), Cali (Valle), Yumbo (Valle)

COP$1.178.642 mm

650.569 55,2% 385.127 32,7% 142.946 12,1% Natural Gas Distribution Natural Gas Transportation Power Transmission

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$584.080 $759.591 2Q 2018 2Q 2019

3.2. Operational Performance

Costs of Operational Activities

3 months figures / Millions COP$

+30,0% YoY

Costs by Business Lines| 2Q 2019

COP$759.591 mm

2Q 2019 Vs. 2Q 2018 +30,0% Natural Gas Distribution +41,7%; +COP$162.002 mm:

  • Cálidda: Expansion of the network, amortization and

depreciation of new investments; increase in facilities and volumes distributed and transported

  • Contugas: Higher amortization expense of concession assets

due to the change of method to the straight line method Natural Gas Transportation -4,2% -COP$5.869 mm:

  • TGI: Environmental impact studies of the Armenia Loop and

execution of the Integrity Management Plan for the gas pipelines in 2Q 2018, which are not presented in 2Q 2019 Power Transmission +34,8%; +COP$19.378 mm:

  • GEB: Professional fees and services. In addition, since 2019,

a more specific allocation of costs is being made to the transmission branch

550.804 72,5% 133.695 17,6% 75.092 9,9% Natural Gas Distribution Natural Gas Transportation Power Transmission

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$522.570 $536.251 2Q 2018 2Q 2019 $358.095 $410.423 2Q 2018 2Q 2019

3.3. Consolidated Financial Results

EBITDA by Business Lines | 2Q 2019 EBITDA Operating Income Net Income

3 months figures / Millions COP$

+14,6% YoY +21,8% YoY

COP$536.251 mm

+2,6% YoY $450.412 $558.095 $28.175 $24.776 2Q 2018 2Q 2019 Controlling Net Income Non Controlling Net Income

Power Transmission 10,9% Natural Gas Transportation 58,4% Natural Gas Distribution 29,9% Other 0,7%

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Note: Numbers for the years 2006 to 2013 are presented under ColGaap standards. 2014 onwards are presented under IFRS

3.4. EBITDA Performance

Consolidated Adjusted EBITDA has grown over the last 10 years demonstrating increased strength of GEB´S controlled assets

Adjusted consolidated EBITDA June 2019 | LTM EBITDA by Business Lines, June 2019| LTM EBITDA by Segment, June 2019| LTM

COP$ mm USD$ mm

586 705 819 922 821 887 909 883 894 917 COP$2.924.267 mm

Transportation and Transmission 57,1% Distribution 29,9% Generation 12,8% Otros 0,2%

+14,1% YoY

COP$2.924.267 mm

+14,1% YoY

39% 56% 55% 52% 56% 65% 67% 70% 69% 68% 61% 44% 45% 48% 44% 35% 33% 30% 31% 32%

1.122.343 1.369.533 1.447.335 1.775.908 1.964.666 2.437.419 2.528.614 2.455.225 2.643.537 2.924.267 2010 2011 2012 2013 2014 2015 2016 2017 2018 jun-19

EBITDA… Dividendos Power Transmission 14,3% Power Distribution 7,9% Natural Gas Transportation 42,8% Natural Gas Distribution 22,0% Power Generation 12,8% Other 0,2%

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3.5. From Operating Income to Net Income

Equity Participation Method | 2Q 2019

3 months figures / Millions COP$

139.739 82.742 14.406 18.758 12.639 2.045 8.587 169.669 111.558 14.064 15.763 15.327 2.667 9.455 Emgesa Codensa CTM Vanti REP EMSA Negocios Conjuntos 2Q 2018 2Q 2019 +21,4% YoY 582.871

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97% 94% 97% 98% 99% 98% 99% 85% 84% 85% 3% 6% 3% 2% 1% 2% 1% 15% 16% 15% 1.543 1.737 1.733 2.218 3.009 2.803 2.567 2.946 2.943 2010 2011 2012 2013 2014 2015 2016 2017 2018 jun-19 2,8x 2,9x 3,2x 2,8x 2,9x 4,50x jun-18 sep-18 dic-18 mar - 2019 jun - 2019

EBITDA LTM / Net Interests LTM

(1) Reasonable indebtedness limit (2) 2024, 2032, 2042 y 2047, corresponds to local maturities of bonds expressed in Colombian pesos.

Net Debt / EBITDA LTM

USD$ mm COP$ USD$

Consolidated Debt Composition Debt Maturity Profile June 2019 (2) (USD$2.926 mm)

3.6. Debt Profile

2.926 8,7X 8,3x 7,4x 7,2x 6,4x 2,25x jun-18 sep-18 dic-18 mar - 2019 jun - 2019 428 14 40 80 1.069 99 890 148 56 102 2019 2020 2021 2022 2023 2024 2028 2032 2042 2047

(1) (1)
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Investment Projects

4

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Project Update (Q2 2019) Progress EAR (1) USD$ mm Date Expected (On stream)

Chivor II 230 kV Armenia 230 kV Tesalia 230 kV Sogamoso Norte 500 kV Southwest Reinforcement 500 kV Ecopetrol San Fernando 230 kV La Loma STR 110 kV Altamira 115 kV Colectora 500 Kv 57,3% 100,0% 92,0% 57,8% 34,6% 82,2% 53,5% 86,7% 11,7% 5,5 1,3 10,9 21,1 24,4 6,0 7,0 0,7 21,5 4Q 2019 2Q 2019 4Q 2019 4Q 2020 4Q 2020 4Q 2019 3Q 2020 3Q 2019 4Q 2022

98,3

Projects that currently generate revenue

Revenue growth has been sustained by a strong investment plan - (Direct investment in Colombia)

4.1. Investment Projects – Transmission

(1) Expected annual income (2) Start of operations June 2019

(2)

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4.2. Executed CAPEX

Revenue growth has been sustained by a strong investment plan

Capex Executed by Controlling Companies

2Q 2019

USD$76,5 mm

Contugas 1,2% Trecsa 8,4% EBBIS 0,1% Calidda 45,1% TGI 11,6% Transmission 33,7%

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19 2019 - 2023 Investments - Controlled Companies

Base Scenario

$896 $1.147 $120 Total $2.163

USD$ mm

Note: From 2019 corresponds to forecasts that are adjusted annually

Capex GEB (Forecast)

Controlled Companies

4.3. Capex Forecast

Distribution Transportation and Transmission Generation Company 2018 2019P 2020P 2021P 2022P 2023P Total Transmission 140 133 140 133 132 107 645 Trecsa y EEBIS 52 46 73 7 1 1 128 TGI 73 85 82 51 66 90 375 Cálidda 119 120 112 108 111 113 565 Contugas 13 4 10 5 19 Other projects 260 43 43 43 43 432 Total 396 649 449 352 359 355 2.163

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5

Q & A

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www.geb.com.co www.grupoenergiabogota.com/en/investors

Investor Relations

Felipe Castilla

CFO GEB ir@geb.com.co +57 (1) 326 8000

Astrid Alvarez

CEO GEB ir@geb.com.co +57 (1) 326 8000

Valeria Marconi

Investor Relations Manager +57 (1) 326 8000 Ext 1536 vmarconi@geb.com.co

Sandra Jiménez

Investor Relations Advisor +57 (1) 326 8000 Ext 1827 sjimenezv@geb.com.co

Mauro Cáceres

Investor Relations Advisor +57 (1) 326 8000 Ext 1395 mfcaceres@geb.com.co

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Para uso restringido GRUPO ENERGÍA 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 BOGOTÁ S.A ESP.