Corporate Presentation Organizacin Terpel S.A. April 2013 1 - - PowerPoint PPT Presentation

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Corporate Presentation

Organización Terpel S.A.

April 2013

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Organización Terpel: more than just fuel

Colombia's largest distributor of fuels

42% liquid fuels

• Mkt. share*

46% VNG Mkt. share*

Consolidated income as of Dec. 2012**

COP $12.1

trillion COP The most extensive network of Service Stations in Colombia

2,013 liquid fuels

and VNG SS** Sales as of Dec. 2012

1,873 MM gals. of

fuel,

421M m³ of VNG

and 7.8 MM gals. of lubricants Corporate risk rating and issuance rating

AAA

Fitch Ratings Colombia Consolidated EBITDA as of Dec. 2012***

COP $482,168

million COP Presence in 6

countries of the

region in different lines of business

USD $11.1 MM

Investments for the benefit of groups of interest from 2004 to 2012

(*) Source: Issuer's calculations based on the volume reported by Colombian Ministry of Treasury and Public Credit Tax Support Direction Office, through the collection of the overall surcharge. Figures as of Dec. 2012 ** Figures as of March, 2013 *** Figures do not include Peru

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More than 40 years providing Colombia with mobilization solutions

1968 1972-1993 2000-2001 2004-2006 2007 2008-2009 2010 2011 2012

Foundation

• f Terpel

Entrance to aviation and marine businesses 1st lubricant factory Foundation of the other Terpel companies Creation Organización Terpel (OT) Creation of SIE Capitalization

• f OT

Acquisition of Ecomex & Lutexsa Acquisition

• f Gazel

COPEC acquires control Entrance into the Dominican Republic OT - Gazel merger Acquisition

• f Repsol

YPF Chile Acquisition

• f

Petrolera Nacional

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Wide National and Regional Coverage

No. No. Ranking % Mkt. share* Lines of business

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• 1

100% (VNG

• nly)
• 4

2 43% Aviation 88

• 3

19% 2,013** 20 1 42% SS 46% VNG 64% Aviation 57

• 6

7% 20

• 2

10% (VNG

• nly)

(*) Source: Issuer's calculations. Figures as of March, 2013 (**) 1,877 liquid fuel SS and 284 VNG SS, of which 148 SS are both VNG and liquid fuels.

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Corporate Structure

34.61% 28.46% 67.41% 52.7% 98.2% 14.4% 4.13%

Terpel Centro

99% 99% 100% 99% 100% 100%

Organización Terpel Dominican Republic Other shareholders Organización Terpel Chile S.A. Inversiones Organización Terpel Chile Ltda GNC Inversiones SAS Petrolera Nacional S.A. (Panama) Operaciones y Servicios de Combustibles SAS C.I. Terpel Combustibles S.A.S PGN Gas Sur S.A.C PGN Gas Norte S.A.C. Combustibles Ecológicos Mexicanos S.A. Peruana de Gas

95% 100%* 96,64% 50% 50%

(*) After January, 2013, demerger

6 GAZEL MARKET SHARE**

2012 SALES VOLUME OF LIQUID VNG

TERPEL MARKET SHARE*

2012 SALES VOLUME OF LIQUID FUELS

42% 58%

Others

TERPEL VOLUME GROWTH VS. MARKET*

Terpel in Colombia

GAZEL VOLUME GROWTH VS. MARKET**

46% 54%

Others

(*) Source: Issuer's calculations based on the volume reported by the Tax Support Direction Office, through the collection of the overall surcharge. Figures as of December, 2012 (**) Source: Issuer's calculations

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Pillars of Our Corporate Strategy

In 2017, thanks to a highly

effective team, we will be

the leaders in market

share, with the best brand positioning, and we will be

recognized for being the

number one in service

and for our commitment to

the country. The best infrastructure The best price

The best service

NETWORK

8 The market leader with 42% of share in liquid fuels and 46% in VNG* The largest distribution network of liquid fuels and VNG in Colombia (2,013 SS**) Wide national coverage: presence in 30 states Conversions to VNG in exchange for consumption Financing Program It represents Colombia's 67% of the volume, 74% of EBITDA, and 68% of CAPEX

VOLUME (MM gals.)

CAGR:4.7%

SS (Service Stations)

(*) Source: Issuer's calculations based on the volume reported by the Tax Support Direction, through the collection

• f the overall surcharge. Figures as of March, 2013 (**), 1,877 liquid fuel SS and 284 VNG SS, of which 148 SS

supply both VNG and liquid fuels.

9 A new model of convenience stores that

• ffers a unique experience thanks to the

sale of traditional food products of the region. A smaller format of supplementary service stores with a wide range of services (food, WiFi). A modern, agile and innovative system of auto-car wash. A fast and agile service where you can find snacks and

• ther

products while pumping gas. Self-service with vending and teller machines for customers. A wide network of ATMs, flat tire service, and filter sales that completes Terpel services.

Supplementary Services

Other SS

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Corporate Mobility (Fleets)

Presence in the main road corridors, logistic, and tourist centers in the country Pioneer in the decentralized supply and centralized billing model

• Chip for the electronic fuel pump
• Fuel control and management system

180 fuel customers 209 VNG customers

VOLUME (MM gals.)

CAGR:23.2%

28.7 31.6 40.6 53.6

2009 2010 2011 2012

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Lubricants

The Bucaramanga plant supplies the local market and exports to Ecuador and Chile ICONTEC certified plant (ISO 9001, ISO 14001) and accredited laboratory that meets ISO/IEC 17025 (2005) international standards Automotive lubricants with state-of-the-art technology and environmental benefits 20.8% market share in 2012*. Second place in sales in the retail channel In 2012, Terpel Celerity Bio Anti-Smoke (for 2- stroke motorcycles) was nominated to the Accenture Innovation Award It represents Colombia's 0.5% of volume, 6% of EBITDA and 6% of CAPEX

VOLUME (MM gals.)

CAGR: 8.8%

(*) Source: AC Nielsen

5.7 6.2 7.1 7.3

2009 2010 2011 2012

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Industrial Customers

Focus

• n

mining, petroleum, transportation, construction and agro-industry sectors Fuel supply to internal facilities of industrial customers Portfolio of products and integrated services Fuel supply to more than 700 customers It represents Colombia's 14% of the volume, 8% of EBITDA and 3% of CAPEX

VOLUME (MM gals.)

CAGR:13.4%

114.5 167.2 188.6 210.5

2009 2010 2011 2012

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Aviation

Market leader with 64% of market share Supply of JET-A1 and Avgas fuel in 20 airports in Colombia Leading operator of El Dorado airport IATA strategic partner, the International Air Transport Association, thanks to the high

• peration standards

Business with ISO certification (Quality, Safety and Environment) It represents Colombia's 15%

• f

the volume, 9% of EBITDA and 4% of CAPEX

VOLUME (MM gals.)

CAGR:12.9%

(*) Source: Issuer's calculations based on information from Ecopetrol

155 175.5 178.4 222.2

2009 2010 2011 2012

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Marine Sector

Incursion into supply of bunker fuel for large vessels that move cargo arriving in Colombian ports. Growing market in which Terpel begins

• perations.

Trading through:

• CI Terpel combustible (IFOS)
• Terpel (marine diesel)

VOLUME (MM gals.)

CAGR: -8.7%

12.7 11.3 7.9 9.6

2009 2010 2011 2012

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Regional Operations

PANAMA ECUADOR DOMINICAN REPUBLIC MEXICO PERU 16 MM gals. in 2012 sales

Exclusive supply to Lima's mass transit system

7 MM gals. in 2012 sales

The only VNG marketer

40 MM gals. in 2012 sales

Operation in 4 of the most important airports

124 MM gals. in 2012 sales

Average sales per SS 25% above market**

164 MM gals. in 2012 sales

% growth of market share : 13% (2006) vs. 18% (2012)*

(*) Source: Issuer's calculations based on information from the Energy Secretariat of Panama (**) Source: Issuer's calculations based on information from Petroecuador

SS network expansion plan Business consolidation Assessing incursion into SS and sales to industrial customers SS network expansion plan Brand positioning and strengthening of the SS network

16 INITIATIVES / PROGRAMS / CERTIFICATIONS ISO Certifications Signatories of the United Nations Global Pact Sustainability Report: B + Terpel training schools

Committed to sustainable development

Strengthening, growth, and sustainability To be the best option for our customers To generate value, trust, and development in our supply chain To operate with respect for the environment To contribute to the well-being of society and our communities To promote Terpel staff talent To act ethically, transparently, and with respect for human rights

Sustainability strategic approaches

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OT Team’s Experience in the Industry

Daniel Perea

Corporate and Legal Affairs VP

7 years Sylvia Escovar

President

10 years Olga Lucia Mora

Human and Administrative Resources VP

10 years Kenneth Siefken

Marketing VP

11 years Oscar Bravo

CFO

8 years Tony Quintero

Commercial VP: Fuels

15 years Juan Pablo Giraldo

Lubricants VP

5 years José Carlos Barreto

Operations and Logistics VP

6 years

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Corporate Government Structure

Audit and Corporate Governance Committee Compensation and Benefits Committee

BOARD OF DIRECTORS

7 Members

GENERAL SHAREHOLDERS ASSEMBLY PRESIDENT

Control Bodies Tax Auditor Internal Audit Authorities (CFS, SISoc.)

PRESIDENT

MAIN Substitute Gabriel Sanchez Juan Fernando Múnera Lorenzo Gazmuri Frederic Chaveyriat Jorge Andueza Eduardo Navarro Ramiro Méndez Claudia Betancourt Arturo Natho Jorge Garcés José Oscar Jaramillo Gabriel Jaramillo Tulio Rabinovich Bernardo Dyner

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90% 7% 1% 2% 82% 9% 7% 0.4% 3%

EBITDA GENERATION % PER COUNTRY(*) 2012 SALES VOLUME EVOLUTION (MM gals.)

CAGR: 8.4%

SALES VOLUME % BY COUNTRY(*) 2012

Consolidated Operating Results

EBITDA EVOLUTION (*) (thousand MM COP$)

CAGR: 8.0%

(*) It does not include Peru

1,458 1,565 1,683 1,858

• 200

2009 2010 2011 2012 381 434 453 482

5.3% 5.2% 4.4% 4.2% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

• 100

2009 2010 2011 2012

EBITDA margin

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8.6 6.9 6.0 5.7

2009 2010 2011 2012

CAGR: -13%

3.7 4.5 4.6 6.4

2009 2010 2011 2012 364.9 410.7 421.8 439.3

• 50.0

2009 2010 2011 2012 15.0 17.3 25.4 31.5

2009 2010 2011 2012

C CAGR: 6.4% CAGR: 28% CAGR: 19.9%

Regional Value Generation

CAGR: N.A. CAGR: N.A.

EBITDA (COP thousand million)

0.7 6.5

2009 2010 2011 2012

• 7.9
• 1.2
• 0.7
• -0.8
• 9.0
• 8.0
• 7.0
• 6.0
• 5.0
• 4.0
• 3.0
• 2.0
• 1.0

2009 2010 2011 2012

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Indicators

TRENDS OF INDEBTEDNESS INDICATOR TRENDS OF COVERAGE INDICATOR

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Contact Us

relacioninversionista@terpel.com (+57) (1) 317 53 53.