Corporate Presentation Organizacin Terpel S.A. March 2018 - - PowerPoint PPT Presentation

Corporate Presentation

Organización Terpel S.A.

March 2018

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Organización Terpel, much more than fuel

1st Fuel distributor

in Colombia

43%

Market Share*

1st

Service Station network in Colombia 2.008

SS Fuel + VNG

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Countries in which Terpel has presence

$15

$COP Trillion

Consolidated Revenue

• Dec. 2017

2,5

Billion Gallons

Consolidated Volume

• Dec. 2017

$690

$COP Billion

Consolidated EBITDA

• Dec. 2017

(*) Source: Issuer’s calculation based on volume reported by Colombian Ministry of Treasury and Public Credit Tax Support Direction Office, through the collection of overall surcharge tax. Figure includes volume of Large Consumers Non-Intermediaries (LCNI) and Imports. Figures as of December 2017.

AAA

Terpel’s bonds risk rating

Fitch Ratings S&P

$2,6

$COP Trillion

Market Capitalization

• Dec. 2017

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Merger of Terpel regional companies and Gazel acquisition.

More than 49 years providing Colombia mobilization solutions

Terpel fundation Terpel regional companies foundation, 1st lubricants factory, Entrance to aviation and marine sectors. Establishment of Organización Terpel (OT), Establishment of SIE. Ecomex & Lutexsa acquisition Petrolera Nacional and Repsol YPF Chile acquisition. COPEC acquires control. OT – Gazel merge, Entrance to Dom. Republic aviation market. 1st Bonds Issuance, Terpel Centro, SIE and Proenergía merger, Terpel’s share listed in BVC. 2nd Bonds Issuance

1972 1993 2000 2001 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014

2017

1968 2015 2016

Mexico (Ecomex) sale ExxonMobil acquisition pending for approval from Industry and Commerce Superintendence

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Inversiones Valín Radysade Fdo. Pensiones Protección Inversiones Organización Terpel Chile

• S. A.

Lutexsa S.A Adesgae Cía Ltda. Noliber S.A

Organización Terpel Chile S.A Gazel Perú S.A.C Organización Terpel Coporation

(Islas Vírgenes)

Petrolera Nacional S.A (Panamá)

VonPort Masser Orlyn S.A Transmarine Transport Fuel Petroleum

Organización Terpel Republica Dominicana Terpel Energía S.A.S Wayco Int Palmares 77 SAS Morgan Stanley Otros Accionistas

Ownership structure

2,8% 2,4% 2,6% 2,4% 2,6% 25,6% 58,5% 99% 99% 99% 99% 99% 100% 99% 99% 99% 99% 100% 100% 100% 100% 100% 3,1% Corporate Structure as of 31st December 2017

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COPEC one of the biggest companies in Chile, main investor and a long term player

39,79%

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Best infraestructure Best price Best service

Pillars of our corporate strategy

Making people the center of our strategy has driven the progress in transforming oil and gas distribution sector. We generate

memorable experiences throughout our business lines in order to

become the number one brand in costumers heart.

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Regional presence

No. No. No. Ranking % Market Share* Business Lines

39% Liquid 46% VNG 81% Aviation

131

• 33

2 23%

• 5
• 2

32% 58

• 5

5 6% 38***

• 11

2 12% VNG

VNG-Liq Fuels-LPG

1 2.008** 20 40

(*) Source: Terpel Dic-17; Colombia Oct-17; Peru: share in Lima market (**) 1903 liquid fuel SS (232 owned) and 287 VNG SS, (182 SS sale both liquid fuels and VNG) (***) 35 VNG SS, 12 liquid fuel SS y 15 LPG

• No. SS Dic-16: Colombia-> 1986, Panama-> 127, Ecuador-> 58, Mexico-> 8, Peru-> 38
• No. Conv. Stores Dic-16: Colombia-> 32, Panama-> 27, Ecuador-> 5, Peru-> 6

NOTE: Results from Mexico were consolidated until September 2017. At that time the operation was sold.

TERPEL IN COLOMBIA

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(*) Source: Issuer’s calculation based on volume reported by Tax Support Direction Office, through the collection of overall surcharge tax. Service Stations, Industry and Aviation figures as of December 2017. Historical figures were restated including LCNI and Imports in market volume. (**) Source: Issuer’s calculations. Figures in equivalent gallons. Figures as of December 2017.

Terpel remained as the leader company in the fuel distribution industry in Colombia

TERPEL MARKET SHARE*

2017 liquid fuels volume sales

TERPEL VOLUME GROWTH Vs. MARKET* GAZEL MARKET SHARE**

2017 VNG volume sales

GAZEL VOLUME GROWTH Vs. MARKET**

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Service Stations (SS)

Market leader with 46% in VNG, 40% in gasoline and 38% in Diesel.* More than 262 SS were remodeled with new

• image. In total, 1.158 SS have the new brand

image. Largest distribution network of liquid fuels and VNG in Colombia (2.008 SS**) Wide national coverage: operation in 30 Colombian regions. Conversion to VNG in exchange for consumption through a Financing Program. Pioneer in decentralized supply and centralized billing model through a chip offered in an interconnected network of about 550 liquid fuel SS and 280 VNG SS. It represents 73% of volume and 67% of CAPEX in Colombia.

* Source: Issuer’s calculation based on volume reported by Tax Support Direction Office, through the collection of overall surcharge tax. Figures as of December 2017. Ii includes volume of LCNI and Imports. ** 1.903 liquid fuel SS (232 owned) and 287 VNG SS, (182 SS sale both liquid fuels and VNG)

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Bathrooms, a wide network of ATMs, flat tire service, additives and other products that complement Terpel services.

Suplementary Services

The convenience store’s network with greater coverage in the country. A new model of convenience stores that offers a unique experience

• ffering traditional local food products in each region. Wide portfolio of

services: food, restrooms, Wi-Fi, playground and rest areas.

12 Ziclos for vehicles: A modern, agile and

innovative system of auto-car wash.

7 Deuna: Kiosks located close to the pump. This is a fast service

provided through tablets where costumers can buy snacks and other products while pumping.

40 Altoque Stores

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ICONTEC certified plant (ISO 9001, ISO 14001, ISO 18001, IQNET , ICONTEC) Accredited laboratory that complies with ISO/IEC 17025 international standards. Automotive lubricants with state-of-the-art technology and environmental benefits. Lubricants portfolio customized to each kind of vehicle that offers innovation and high technology to customers: Terpel Maxter, Terpel Oiltec y Terpel Celerity. Invention patent for Terpel Celerity product:

“synthetic base lubricants composition that allows to generate a higher performance for the engine”.

It represents 0,5% of volume and 4% of CAPEX in Colombia.

Lubricants

Lubricants Plant certifications

ISO 9001 2015 ISO 14001 2015 NTC 2218 NTC 1399 NTC 1295 NTC 3382 ONAC ISO/IEC 17025 2005 Rating 100%

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Industrial costumers

Wide portfolio of products and integrated services including programs focused on security and environmental impact prevention as well as optimization of customer’s operation. Fuel supply to approximately 422 costumers. It represents 8% of volume and 3% of CAPEX in Colombia. Focus on mining, petroleum, transportation, construction and agro-industry industries. Fuel supply to industrial costumers through internal facilities.

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Aviation

(*) Source: Issuer’s calculations based on Ecopetrol information as of Dec.17.

Market leader with 81% market share*. Supply of JET A1 and Avgas in 20 Colombian airports . Principal supplier for El Dorado airport through Allied company as the operator. IATA (International Air Transportation Association) strategic partner, as a result of safe and reliable

• perations.

Pioneer in Latin America with certifications in quality, security and environment. NORSOK S-006 Norwegian certification in industrial security, occupational health and environmental management. It represents 18% of volume and 6% of CAPEX in Colombia

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Marine

Terpel is participating in the supply of bunker fuels for large cargo vessels arriving to Colombian seaports. This is a growing market in which Terpel begun

• perations. At the end of 2016 it represented

0,5% of total volume.

Colombian Seaports

16 Certifications Leader in sustainability at a global level as a Terpel training schools

Terpel is compromised with sustainable development

Terpel is not only a shareholder’s asset, it is also an asset to all of its related interest groups since it recognizes the importance of growing all together in order to pursue a better future. INITIATIVES / PROGRAMS / CERTIFICATIONS SUSTAINABLE MANAGEMENT MODEL

TERPEL’S SUSTAINABLE MANAGEMENT MODEL REFLECTS THAT STRATEGY IS FOCUS ON PEOPLE

result of the evaluation conducted under Dow Jones Sustainability Index (DJSI).

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Terpel’s senior management experience in the industry

Daniel Perea

Corporate & Legal AffairsVP

12 years

Sylvia Escovar

President 15 years

Maria Mercedes Carrasquilla

Human & Administrative Resources VP

5 years

Kenneth Siefken

Marketing VP 16 years

Oscar Bravo

Corporate Finance VP 13 years

Tony Quintero

Commercial VP: Fuels 20 years

Juan Pablo Giraldo

International VP 10 years

José Carlos Barreto

Operations & Logistics VP 11 years

Rodrigo Ferreira

Lubricants VP

20 years

Organizational Structure as of 31st December 20|7

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Corporate Government structure

Audit and Corporate Governance Committee Compensation and Benefits Committee

7 Main Members

Lorenzo Gazmuri Schleyer Jorge Andueza Fouque Ramiro Méndez Urrutia Leonardo Ljubetic Garib Jorge Alberto Bunster Betteley José Oscar Jaramillo Botero Bernardo Dyner Rezonzew

GENERAL SHAREHOLDERS ASSEMBLY PRESIDENT

Tax Auditor Internal Auditor Compliance Officer

BOARD OF DIRECTORS

Control bodies

Terpel’s Corporate Government is based on procedures that ensure an appropriate governability and it is also based on an ethical auto- regulation.

External Auditor Colombian Financial Superintendence

Board of directors as of 31st December 20|7

FINANCIAL INFORMATION

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Consolidated operational results

VOLUME SALES PERFORMANCE

Million Gallons

VOLUME SALES BREAKDOWN PER COUNTRY 2017 EBITDA PERFORMANCE

COP$ Billion

EBITDA BREAKDOWN PER COUNTRY 2017

NOTE: Results from Mexico were consolidated until September 2017. At that time the operation was sold.

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Regional value generation

EBITDA Vs. VOLUME

COP$ Billion Vs. Million Gallons

NOTE: Results from Mexico were consolidated until September 2017. At that time the operation was sold.

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CAPEX BREAKDOWN PER BUSINESS LINES

Expansion strategy has strengthen Terpel’s position in the Market

CONSOLIDATED CAPEX

$COP Billion

Expansion and strengthening of the service stations network. Investments in upgrading service stations. Development of complementary services (non-oil business). Plants and airports overhaul and increase in storage capacity and vehicles conversion to VNG. CAPEX BREAKDOWN PER COUNTRY

NOTE: Results from Mexico were consolidated until September 2017. At that time the operation was sold.

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Debt indicators

DEBT*/EBITDA PERFORMANCE EBITDA/INTERESTS PERFORMANCE

NOTE: Results from Mexico were consolidated until September 2017. At that time the operation was sold. * Gross debt

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Contact

Considerations on the financial and operational information The financial and operating results presented in this document correspond to the Terpel Organization and its subsidiaries according to International Financial Reporting Standards (IFRS). The individual results of the subsidiaries are reported without intercompany eliminations, therefore, the sum of individual results may not correspond to the consolidated results. Given the merger process, conducted in August 2014, the Consolidated Financial Statements prior to that date included the Sociedad de Inversiones en Energía. Of such way that, by December 2013 Consolidated Financial Statements are taken of the Sociedad de Inversiones en Energía, comparable to the consolidated

• ne to December 2014 from Terpel fused with SIE, Proenergía and Terpel Centro.

The information contained in this document does not commit nor suggest any investment decision.

Investors contact