Corporate Presentation Organizacin Terpel S.A. March 2017 - - PowerPoint PPT Presentation

Corporate Presentation

Organización Terpel S.A.

March 2017

2

Organización Terpel, much more than fuel

1st Fuel distributor

in Colombia

43%

Market Share*

1st

Service Station network in Colombia 1.896

SS Fuel + VNG

6

Countries in which Terpel has presence

$14

$COP Trillion

Consolidated Revenue

• Dec. 2016

2,5

Billion Gallons

Consolidated Volume

• Dec. 2016

$660

$COP Billion

Consolidated EBITDA

• Dec. 2016

(*) 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 2016.

AAA

Terpel’s bonds risk rating

Fitch Ratings

$2,1

$COP Trillion

Market Capitalization

• Dec. 2016

3

More than 48 years providing Colombia mobilization solutions

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

2015 2016

1968

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. Merger of Terpel regional companies and Gazel 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

4

Ownership structure

3,1% 2,8% 2,4% 2,6% 2,4% 2,6% 25,6% 58,51% 99% 99% 99% 99% 99% 100% 99% 99% 99% 99% 100% 100% 100% 100% 100%

Inversiones Valin 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 Combustibles Ecológicos Mexicanos S.A 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 Other Shareholders

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

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Best infraestructure Best price Best service

Pillars of our corporate strategy

We will be market leaders in 2017, with a highly

effective team, with the best brand position and

known as the best company in terms of service, and

social commitment with the country.

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Regional presence

(*) Source: Terpel dic-16 (**) Market Share in Mexico City is 100% (***) 1876 liquid fuel SS (224 owned) and 287 VNG SS, (177 SS sale both liquid fuels and VNG) (****) 34 VNG SS, 11 liquid fuel SS y 14 LPG

• No. SS dic-15: Colombia-> 1948, Panama-> 116, Ecuador-> 57, Mexico-> 8, Peru-> 35

No. No. Ranking % Market Share* Business Lines

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• 1

56%** (VNG)

• 5

2 32% 127

• 2

24%

38% LiqFuels 44% VNG 81% Aviation

58

• 5

7% 38****

• 2

12%

VNG Liq Fuels LPG

1 1.986*** 20

TERPEL IN COLOMBIA

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

TERPEL MARKET SHARE*

2016 liquid fuels volume sales

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

2016 VNG volume sales

GAZEL VOLUME GROWTH Vs. MARKET**

(*) Source: Issuer’s calculation based on volume reported by Tax Support Direction Office, through the collection of overall surcharge tax. Figures as of December 2016. For 2016 market volume includes LCNI and Imports. Without LCNI+Imp the market would growth 3,5% and Terpel’s Market Share would be 45,3%. (**) Source: Issuer’s calculations. Figures in equivalent gallons. Figures as of December 2016.

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Service Stations (SS)

Market leader with 44% in VNG, 40% in gasoline and 37% in Diesel.* More than 324 SS were remodeled with new

• image. In total,896 SS have the new brand

image. Largest distribution network of liquid fuels and VNG in Colombia (1.986 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 527 liquid fuel SS and 279 VNG SS. It represents 73% of volume and 61% 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 2016, include volume of LCNI and Imports. ** 1.876 liquid fuel SS (224 owned) and 287 VNG SS, (177 SS sale both liquid fuels and VNG)

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

Suplementary Services

Otros SSCC The convenience store’s network with greater coverage in the country.

A new model of convenience stores that

• ffers

a unique experience

• ffering traditional local food products

in each region. Wide portfolio of services: food, restrooms, Wi-Fi, playground and rest areas.

14 Ziclos for vehicles + 2 Ziclos for Motorcycles: A

modern, agile and innovative system of auto-car wash.

16 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.

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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 6% of CAPEX in Colombia.

Lubricants

Lubricants Plant certifications

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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 9% 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.

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 3% 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

0,4% of total volume.

Colombian Seaports

16 ISO certifications Leader in sustainability at a global level as a result of the second evaluation conducted under Dow Jones Sustainability Index (DJSI). 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

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Terpel’s senior management experience in the industry

Daniel Perea

Corporate & Legal AffairsVP

11 years

Sylvia Escovar

President 14 years

Maria Mercedes Carrasquilla

Human & Administrative Resources VP

4 years

Kenneth Siefken

Marketing VP 15 years

Oscar Bravo

Corporate Finance VP 12 years

Tony Quintero

Commercial VP: Fuels 19 years

Juan Pablo Giraldo

Lubricants VP 9 years

José Carlos Barreto

Operations & Logistics VP 10 years

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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 José Oscar Jaramillo Botero Bernardo Dyner Rezonzew Jorge Alberto Bunster Betteley

GENERAL SHAREHOLDERS ASSEMBLY PRESIDENT

Tax Auditor Internal Auditor Authorities (SFC, SISoc.)

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.

FINANCIAL INFORMATION

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Consolidated operational results

(*) From 2013, figures include Peru results.

VOLUME SALES PERFORMANCE*

Millon Galons

VOLUME SALES BREAKDOWN PER COUNTRY 2016* EBITDA PERFORMANCE*

COP$ Billion

EBITDA BREAKDOWN PER COUNTRY 2016*

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Regional value generation

EBITDA Vs. VOLUME

COP$ Billion Vs. Million Gallons

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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 CAPEX BREAKDOWN PER BUSINESS LINES

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Debt indicators

DEBT/EBITDA PERFORMANCE EBITDA/INTERESTS PERFORMANCE

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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