GEB Earnings Results 2017 April 03/2018 1 Disclaimer The - - PowerPoint PPT Presentation

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GEB Earnings Results 2017 April 03/2018

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Disclaimer

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 or reliability of 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 EEB 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.

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GEB Overview

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Key Updates 2017

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Expansion Projects

04 Financial Performance 2017 05 Q&A

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GEB Overview

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GEB at a Glance

Regional Leader in the Energy Sector

GEB is a leading energy company in LatAm, composed by a diversified portfolio of Power and Natural Gas companies, classified in three strategic business lines:

Power Distribution Natural Gas Distribution

3.5 mm clients in Power Distribution 2.7 mm clients in Natural Gas Distribution 12,500 km of Transmission Lines 4,200 km of Gas Pipelines

Power Transmission Natural Gas Transportation

US$ 1.1bn

Consolidated Revenues

2017

US$ 823mm

Consolidated Adj. EBITDA

2017

US$ 6.5bn

Market Cap.

February 28, 2018

~US$ 378 mm

CAPEX 2017

14.1%

CAGR

2013 – 2017

8.4%

CAGR

2013 – 2017

4.7%

Dividend Yield

• Avg. 2011 – 2018

BBB / BBB- / Baa2

Fitch / S&P / Moody’s

Corporate Investment Grade Credit Rating

Power Generation

3,493 MW in Installed Capacity 14,835 GWh in Power Generation

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Guatemala Colombia Peru Brazil

Leading Participant in Relevant Latin America Energy Markets

Leader in the relevant energy markets of Latin America, with a diversified business portfolio in countries with solid macroeconomic fundamentals and stable regulatory frameworks

Guatemala

# 1 Guatemala(1)

(Private Company)

Market Share

% Revenues NTS

Power Transmission 19.9%(1)

Transmission Network(10) 400 km

Market Share

% Distributed Volume

Natural Gas Dist. / Transp. 80.0%(3)

# 1 Peru(3)

Market Share

% Revenues NTS

Power Transmission 63.6%(2)

# 1 Peru(2)

Peru

Clients(11) 580K

• Trans. Network(14) ~10,460 km

Brazil

Market Share

% Network NTS (km)

Power Transmission 0.9%(9)

Transmission Network 1,100 km(10)

Colombia

# 1 Colombia(8)

Market Share

% National Network (km)

Natural Gas Transportation 53.1%(8)

# 1 Colombia(4)

Market Share

% Subscriptions

Power Distribution 23.0%(4) Clients 3.5mm(10)

#1 Colombia(6)

Market Share

% Power Generated

Power Generation 22.2%(6)

Generation ‘17 14,835 GWh(13)

# 1 Colombia(7)

Natural Gas Distribution Market Share

% Connected Users

32.7%(7) Clients 2.1mm(10)

# 2 Colombia(5)

Market Share

% Revenues NTS

Power Transmission 15.2%(5)

• Trans. Network 1,500 km(10)

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Key Updates 2017

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• The Ministry of Finance and Public Credit through Resolution No. 3152 of 2017 authorized GEB to execute an external inter-

company borrowing with EEB Peru Holdings Ltd., a subsidiary of the Group, up to an amount of USD 100.000.000. The disbursement of these resources hasn’t yet been made.

• Fitch Affirmed local GEB's Ratings in ‘AAA(col)’; Stable Outlook.
• On October 20, the Program for the Disposal of the 0.31% Equity Interest that GEB, formerly Empresa de Energia de Bogota, has in

Ecopetrol was finalized, thus completing the total placement of the shares.

• On October, Standard & Poor's ratified the credit rating of GEB in the investment grade and maintained the "stable" outlook. (Issuer

corporate investment grade)

• The amendment to the corporate name from Empresa de Energía de Bogotá S.A. ESP, to GRUPO ENERGÍA BOGOTÁ S.A. ESP.,

was registered before the Chamber of Commerce, thus, consolidating as a Business Group.

• On October 31, the second payment of dividends of 50% was made this year. A total of $99/share was paid.
• On November 15, GEB carried out the issuance and placement of the second tranch of Internal Public Debt Bonds for COP 650,000

million, with maturity at 7, 15 and 30 years. Completing the authorized program of USD 450 mm..

• In December, the process for the award of the program for the disposal of the shares that GEB has in ISA was completed, in an

amount of COP$ 258,598 million corresponding to 100% of the offered package.

Key Updates 4Q 2017 – GEB

Highest Dividends in History(1)

(1) Normalized Dividends

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Key Updates 4Q 2017 – GEB

Highest Dividends in History(1)

(1) Normalized Dividends

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• On December 20, the program for the Disposal of 20% of the Capital District's 20% stake in Grupo Energia Bogota corresponding to

1.836.235.403 shares, was approved.

• On December 21, GEB announced the total repurchase of the EEB 2021 bond which was executed on January 23, 2018 for a total

amount of US$749.000.000 of the international bond issued under RegS/144ª and registered at the Luxembourg Stock Exchange with maturity in 2021, through the execution of an external credit agreement for the same amount, in which Bank of America N.A. acts as administrative agent with leading banks Citigroup Global Markets INC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and finally Sumitomo Mitsui Banking Corporation.

• On December 22, as part of the program for the disposal of 20% of the shares in GEB (Decree 706 of 2017), the Rules for the

Disposal of the Fist Stage are published, which includes the Shareholder's Agreement Offer.

• On January, 2018, GEB hired Alvaro Villasante as Vice-President of Low Emission Generation and Andres Baracaldo Sarmiento as

Vice-President of Urban Energy Solutions.

• UPME awarded to Grupo Energia Bogota the construction of the Colectora 500 kV Project and the Transmission Lines Colectora –

Cuestecitas y Cuestecitas – La Loma 500 kV, a project that will drive the development of non-conventional sources of renewable energies.

• This past March 22, 2018, the General Shareholders Meeting of GEB approved the project for the distribution of net income, pursuant

to which the project for the distribution of net income was approved for an dividend value of $115/share in two payments, one in June and one in October 2018.

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• Through Resolution 090 of 2016, or CREG090 / 2016, CREG proposed to the companies and users of the natural gas service, a

proposal for the methodology to compensate the natural gas transportation activity. The main changes are: i) Calculation of WACC using the rules established by Resolution CREG 095 of 2015. ii) a New model of assessment to determine the cost of efficient infrastructure iii) Shared cost system to balance the difference between the investment and the efficient value iv) Changes in the process when the assets reach their regulatory useful life and others. In accordance with Circular CREG 084 of 2017, the new methodology will be determined in Q1 2018. Nowadays, this WACC is under review by CREG.

• Also under consideration is Resolution 182 of 2017, which was published in December, and addresses issues related to the

remuneration for competitive process projects included in the Natural Gas Supply Plan, prepared by the UPME and adopted by the Ministry of Mining and Energy through Resolution 40006 of January 4, 2017.

• In addition, the aforementioned resolution defines projects that are complementary to TGI system due to their location and because

they will have a competitive selection process, as follows:

• i. Construction of the Pacific Regasification Plant
• ii. Construction of the Buenaventura - Yumbo Gas Pipeline
• On the other hand, and in compliance with the requirements established by CREG, the company submitted the information about the

characterization for the new Gas Pipeline Galán Casabe Yondo, within the process being carried out for the definition by mutual agreement of the regulated charges that apply to said gas pipeline.

• TGI’s net income reached USD 140.2 Mm and EBITDA USD 323.9 Mm respectively.

02 Key Updates 4Q 2017 – TGI

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Key Updates 4Q 2017 - Cálidda

• Cálidda achieve a new connection record, having connected more than 138,000 clients in 2017 (48% more than the additional clients

in 2016).

• Cálidda’s client base and invoiced volume both increased during 2017 by 32% and 3%, respectively, compared to 2016’s figures.
• During 2017, our network length was enlarged by 922 km, whereby the distribution system reached a total of 8,347 km of

underground pipelines.

• Cálidda’s revenues and EBITDA increased by 8% and 11%, respectively, driven by higher distribution revenues and a higher number
• f residential connections.
• 4 new cogeneration client was connected in 2017 (Ferrosalt, Solpack, Ajeper & Surpack).
• 42 new industrial plants were connected during 2017.
• 17 new NGV stations joined Calidda’s distribution system and 184,009 converted vehicles are attended in the cities of Lima and

Callao.

• Calidda added 137,188 clients in the Residential segment and 1,162 clients in the Commercial segment.
• In 2017, Calidda built 922km, out of which 43km were steel high pressure network while the remaining 879km were low pressure

polyethylene pipelines. The network now reaches 8,347km of underground pipelines.

• Cálidda’s net income reached USD 58.6 Mm and EBITDA USD 137.8 Mm respectively.

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Expansion Projects GEB

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Expansion Projects

Revenue growth has been sustained by a strong capex plan

Executed Capex by Companies(1) (2017 | 939.6 USD Mm*) Executed Capex by Strategic Group (1) (2017 | 939.6 USD Mm*) Executed Capex by Country(1) (2017 | 939.6 USD Mm*) Executed Capex by Investment(1) (2017 | 939.6 USD Mm*)

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GEB Transmission 17% TGI 8%

Codensa 28%

CTM 22% Urban Energy Solutions 48.3% Interconection For Energy Markets 44.2% Low Emission Generation 7.5%

Colombia 74.3% Perú 19.3% Guatemala 5.8%

Subsidiaries 40.2% Associates 59.8%

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Expansion Projects (Direct Invesment in Colombia)

Revenue growth has been sustained by a strong capex plan

Projects Update ( 4Q 2017) Proyecto UPME Progress EAR(1) USD MM Date expected (On stream) Chivor II 58.63% 5.5 06/02/2018 Cartagena Bolívar 87.30% 11.6 13/05/2018 Río Córdoba 92.94% 1.8 04/01/2018 Armenia 98.00% 1.28 26/03/2018 Tesalia 90.00% 10.9 23/08/2018 Sogamoso Norte 70.55% 21.1 08/05/2019 La Loma 500kV 65.50% 1.30 30/06/2018 Refuerzo Suroccidental 32.00% 24.4 30/09/2018 Ecopetrol San Fernando 72.28% 6.0 26/06/2018 Río Córdoba Transformadores 96.57% 0.6 04/01/2018 La Loma STR 110kV 50.44% 6.96 30/06/2018 Conexión Drummond Ltd 93.73% 0.87 04/01/2018 Transformador Altamira 7.83% 0.66 31/03/2019 Ampliación La Loma 500 kV(2) 0.01% 0.35 30/06/2018

93,32

(1) Expected annual revenues. (2) The income of this project, which does not correspond to EAR, is recorded as use assets. It does not include additional revenues of recently awarded Colectora/Cuestecita project.

Projects that currently generate income

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17% 13% 20% 26% 45% 22% 12% 27% 27% 8%

52% 24% 29% 38% 29% 44% 16%

$386 $597 $347 $227 $377

Proven Ability to Integrate, Develop and Operate Diversified Energy Businesses

Strategic Investments to Expand and Consolidate our Business

• Electri. (Col)
• Electri. (Int’l)
• Nat. Gas (Col)
• Nat. Gas (Int’l)

US$ mm

• Invested over US$1.9bn in CAPEX from 2013 to 2017,

with planned investments amounting US$1.8bn during the next five years in projects that are currently being executed or have already been approved

• Key projects include:

 UPME and other power transmission expansion projects  Proinversion power transmission expansion projects  The annual connection of 100,000 users in Cálidda, which accounts for about US$100 million  The construction of some bi-directional segments and additional minor networks at TGI  Finalizing Trecsa’s network in Guatemala

Future CAPEX Strategy in the Region

Selected Examples of our Integration and Developing Capabilities 2013 163,817(2) customers  2017 534,038(3) customers 2014 122 km(4) network  2017 400 km(5) network 2015 acquisition  4 new transmission lines in our portfolio 2014 began commercial operation  2017 100% operational with 974 km

• f pipeline network

2013 2014 2015 2016 2017

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Financial Performance GEB

(Consolidated)

2017

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12%

26%

62%

Electricity Transmission Natural Gas Distribution Natural Gas Transportation

Financial Performance

Consolidated Results (as of 2017)

Operating Profit 2017 by Segment (1)

(COP1,169,750 Mm) (COP$3,322,420 Mm)

(1) Excludes administrative expenses & net of other expenses and gains.

As of 2017 compared to 2016 showed an increase of 6.05% Due to EEC was merged with Codensa since October 1st, 2016, revenues from the segment Electricity Distribution are reported within Codensa data, non-controlled subsidiary through equity method.

• +23.62%; COP$64.840 mm Electricity Transmission: This increase was

mainly due to projects that entered into operation. TRECSA and new transmission lines (UPME) which started generating income for availability.

• 7.20%; (COP$94.751 mm) Natural Gas transportation: a reduction in the

average thermo demand due to a lower impact of the El Niño which created an increase in the demand in 2016 but which normalized in 2017 and FX conversion effects.

• 14.23%; COP$219.505 mm Natural Gas distribution: increase in Contugas

& Cálidda’s revenues, mainly from new power generation and new industrial and residential clients. As of 2017 compared to 2016 operating profit showed an increase of 2.11% Due to revenues growth from natural gas distribution segment (Peru) and from cost on the natural gas transportation segment (Colombia). +46.7%; (COP$47,736 mm) Electricity Transmission: This increase was mainly our contributions to energy funds (Prone and Foes), accounting provision from Electricaribe and depreciation due to TRECSA impairment.

• 18.2% (COP$-162,820 mm) Natural gas Transportation: This decrease

was mainly due to non-recurrent repairs and more maintenance.

• 83.5%; (COP$131.746 mm) Natural gas distribution: This increase was

mainly due to an increase in the costs of sales of the construction of new PPE for Contugas, as well as higher costs in the natural gas supply, an increase in the volume of gas supplied due to a higher demand from clients and variations in the amortization and depreciation of Cálidda.

• N.B. Also some of the administrative expenses were redistributed in all
• f the business segments lines in terms of costs, which also explains

the decrease in administrative expenses.

Operating Revenue 2017 by Segment

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10.2%

1,761,679

53%

1,221,394

36,8%

Electricity Transmission Natural Gas Distribution Natural Gas Transportation

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Financial Performance

Consolidated Results (as of 2017)

• +17,31% COP$30,102 mm Finance income: Increased due to interest returns on financial investments.
• +17,24% (COP$87,897 mm) Finance expenses: Increased mainly to debt interest payments, and banking commissions. Local bonds issuance.
• 125,28%, (COP$178,401 mm) Net Exchange Difference: Net Exchange difference decrease due to a revaluation during the period, which impacted assets and

liabilities denominated in foreign currency.

• +13%, COP$118.061 mm Equity Method: Increase in equity method of Associates mainly from Codensa and Emgesa due to Merger with EEC and Brazil

subsidiaries.

• 69,8%, COP$308,356 mm Taxes: Due to deferred tax at the level of TGI (COP$ 270,253 mm). Foreign exchange effects.
• 16%, COP$212,967 mm Net Income: Increase due to operational results mainly, financial income and equity method contribution from associates and net

exchange difference.

2017 from EBIT to profit

*SPL equity method: Share of profit loss for using equity method

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11.2%

32%

70% 68% 65% 56% 52% 55% 56% 39% 45% 44% 33% 30% 32% 35% 44% 48% 45% 44% 61% 55% 56% 67% 2,455,225 2,466,856 2,437,419 1,964,666 1,775,908 1,447,335 1,369,533 1,122,343 1,053,942 934,163 949,599 823 822 774 821 922 819 705 586 516 416 471

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Operational Ebitda Dividends

Financial Performance

Ebitda Evolution 2007 – 2017

Normalized Consolidated EBITDA(1)

Lower EBITDA from lower revenues due to the EEC merger effect and lower transported volume in TGI due to El Niño Phenomenon.

Consolidated EBITDA by Segment(2) Consolidated EBITDA by Strategic Group

USD$

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Financial Performance

Description of Indebetness (as of 2017)

Net Debt / Consolidated Adjusted EBITDA(1)(2) Consolidated Adjusted EBITDA / Net Interest(1)(2) Consolidated Debt Composition Debt Maturity Profile (3)(4)

(USD$ Mm) (USD$ Mm)

COP I PEN USD

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2.95x 3.07x 3.17x 2.84x 2.56x 4.50x 4Q 17 3Q 17 2Q 17 1Q 17 4Q 16 7.05x 6.53x 6.56x 6.54x 7.40x 2.25x 4Q 17 3Q 17 2Q 17 1Q 17 4Q 16

1,543 1,737 1,733 2,218 3,009 2,803 2,567 2,946

2010 2011 2012 2013 2014 2015 2016 2017

121.1 590.9 189.8 180.9 875.7 1,133.2 138.1 32.2 31.6 21.2 160.7 11.0 63.9 7.1 7.1 103.7

2018 2019 2020 2021 2022 2023 2024 2025 2026 2031 2032 2033 2042 2043 2046 2047

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Q&A

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INVESTOR RELATIONS

For more information about Grupo Energía Bogotá (GEB) contact our Investor Relations and financing team: Felipe Castilla Canales Paola Viloria

Financing & Investor Relations Advisor +57 (1) 326 8000 Ext 1611

CFO

pviloria@geb.com.co

www.geb.com.co www.grupoenergiabogota.com/en/investor s

ir@geb.com.co

+57 (1) 326 8000 Ext 1501

Sandra Jimenez

Financing & Investor Relations Advisor +57 (1) 326 8000 Ext 1827

Rafael Salamanca

Financing & Investor Relations Advisor +57 (1) 326 8000 Ext 1675

rsalamanca@geb.com.co sjimenezv@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.