GRUPO ENERGA DE BOGOTA Third Quarter 2013 Results November 19th, - - PowerPoint PPT Presentation

GRUPO ENERGÍA DE BOGOTA

Third Quarter 2013 Results

November 19th, 2013

Disclaimer

The information provided herein is for informational and illustrative purposes

• nly and is not, and does not seek to be, a source of legal or financial advice
• n any subject. This information does not constitute an offer of any sort and is

subject to change without notice. EEB expressly disclaims any responsibility for actions taken or not taken based

• n this information. EEB does not accept any responsibility for losses that

might result from the execution of the proposals or recommendations

• presented. EEB is not responsible for any content that may originate with third
• parties. EEB may have provided, or might provide in the future, information that

is inconsistent with the information herein presented.

2

Table of contents

1.

EEB strategy and overview

2.

Third Quarter Highlights

3.

Expansion Projects Review

4.

Financial Review -3Q 2013

5.

Questions and Answers Appendix

1.

Natural Regulated Monopolies

2.

Leadership Market Position

3

• 1. EEB Strategy and Overview

4

EEB Strategy and Overview

Key facts

• More than 100 years’ experience in the sector; founded in 1896.
• Regional leader in the energy sector; major player in the entire electricity and natural gas value

chains (except E&P); operations in Colombia, Peru, and Guatemala.

• Largest stockholder is the District of Bogota - 76.2%.
• Stock listed on the Colombia stock exchange; EEB adheres to global standards of corporate

governance.

• The EEB Group is one of the largest issuers of equity and debt in Colombia

68.1% 25% 15.6%

Electricity

Transmission

40% 40% 1.8% 98.4%

Generation

51.5% * 2.5%

Distribution

51.5% * 16.2% 51% 82%

Distribution Transportation

Natural Gas

75% 60% 100%

*EEB is not the controlling shareholder and is a party to signed shareholder agreements.

40% 25% 100% 100%

5

Transportation and distribution of energy with involvement in other areas in the energy sector.

Guatemala Colombia Peru

Current Markets Potential Markets 

Operations in countries with strong growth potential

– Colombia: regional leader in electricty and natural gas and a center for

energy exports

– Peru: regional leader in mining and energy-intensive industries – Guatemala: a window for future investments in Central America 

Exploration of opportunities in America

Focus on natural monopolies Ample access to capital markets Ambitious projects in execution Growth in controlled subsidiaries Sound regulatory framework Experienced management and partners

EEB Strategy and Overview

6

• 2. Third Quarter Highlights

7

Third Quarter Highlights

03.07.13

MHCP Resolution 2121 Debt Operations of USD 479 Millions

15.08.13

EEB received the approval form the BoD to participate in ISAGEN 3Q- 16,238 new connections. Total Clients: 165,850 New tariff scheme´s proposal presented to Peruvian’s regulator Syndicated loan USD 310 mm 3Q – 2,950 clients 16,000 residential sales 13,000 installations built and pending to be habilitated

17.09.13 27.08.13

Colombian Mines and Energy Ministry adopts Expansion Plan 2013.2027

24.10.13

EEB’s share keeps its participation within COLCAP and COEQTY Indexes

30.09.13 30.09.13 01.11.13

EEB and TGI keep their ratings BBB- Stable outlook CTM BoD approved the right

• f cession of new

transmission line . 550 kV. Length 900 Km Investment: USD 413mm. REP will manage this project.

Company Highlights 3Q-2013 Gas Natural Highlights Electric Sector Highlights

14,473 8,218 1,282 5,000 10,000 15,000 20,000

Installed capacity - MW

45,379 29,485 2,247 20,000 40,000 60,000

Demand - GWh

Sources: XM, UPME, COES – Perú, AMM – Guatemala

Reserves, proved and probable - TCF (2012) 5.7 Domestic demand - GBTUD 1,262* Reserves, proved and probable - TCF (2012) 23.1 Domestic demand - GBTUD 1,219

Sources: UPME, CON, MEM, Osinergim *Only includes July/August 2013

15.11.13

EEB reopens bond 2021 for USD 112 mm

27.11.13

Second and last payment of dividends to the Capital district, amounting to COP 153.9 billon

8

• 3. Expansion Projects Review

9

Guatemala Colombia Perú

Expansion Projects Controlled Subsidiaries

Natural Gas Transportation

• CAPEX : USD 369 mm
• Construction: Estación Sabana. (3Q 14)
• Planification: Cusiana/Apiay (4Q 15)
• Sist. Regionales (4Q 14)

Electricity Transmission

• CAPEX : USD 308 mm
• Under Construction 3Q:
• Armenia – 67%
• Alferez – 95%
• Tesalia – 59%
• Chivor II Norte – 10%
• SVC Tunal – 4%

Natural Gas Distribution

• CAPEX: USD 500 mm
• By the end of 2006 it is

expected to have 455,000 customers connected. Natural Gas Transportation and Distribution

• CAPEX: USD 350 mm
• Under construction:3Q 13: 86%.
• Full operation 1Q 14

Electricity Transmission

• CAPEX: USD 376 mm
• Start operation (partially) 2013
• Under construction:3Q 13: 59.6%.
• Delivered 2015

Engineering and Services

• CAPEX: USD 44 mm
• Sugarmills under construction
• 2014-15

CAPEX 2013 – GEB USD 814.6 Millions

10

Colombia Perú

Expansion Projects Non Controlled Subsidiaries

Electricity Generation

• CAPEX USD 837 mm
• Quimbo. Under construction 3Q-13: 51.7%
• Capacity 400 MW

Electricity Distribution

• CAPEX: USD 77.9 mm

Executed until 3Q 13

• Under Operation 2013

Electricity Transmission

• CAPEX: USD 606 mm
• Extensions and new

concessions; 2013- 2014 Electricity Transmission

• CAPEX: USD 94.5 mm
• Extensions and new

concessions; 2013 - 2014 CAPEX 2013 – Non Controlled Subsidiaries USD 902 Millions Natural Gas Transportation and Distribution

• CAPEX: USD 137 mm
• Under Construction 2014

11

• 4. Financial Review -3Q 2013

12

Consistent Financial Performance Consolidated Results - Operational

7% 5% 18% 15% 44% 45% 31% 35% As of 3Q -12 As of 3Q -13

Operating Revenues by segment

Natural gas distribution Natural gas transportation Electricity distribution Electricity transmission

1,161,375 1,451,107

9% 7% 9% 5% 69% 79% 12% 9% As of 3Q -12 As of 3Q -13

Operating Profit by segment

Natural gas distribution Natural gas transportation Electricity distribution Electricity transmission

416,207 535,747

Operating Revenues (+24.9%): Growth is explained mainly by increase of revenues in natural gas business: transport in Colombia, TGI, (new tariff scheme 2013 and coming on stream of Cusiana Phase II) and distribution in Peru, Cálidda. Operating Profit (+28.7%): A sound behavior of revenues and decreased growth in operational expenses in the natural gas transport business

3Q 13 3Q 12 $ % Operating revenue 1,451,107 1,161,375 289,732 24.9% Cost of sales 749,282 597,582 151,700 25.4% Gross profit 701,825 563,793 138,032 24.5% Operating expenses 166,078 147,586 18,492 12.5% Operating profit 535,747 416,207 119,540 28.7% Operating margin 37% 36% Consolidated Adjusted EBITDA LTM 1,668,543 1,455,541 213,002 14.6% COP Million Variance

Consolidated Adjusted EBITDA (+14.6%): Increased is explained by improved operational results generated from controlled subsidiaries. Also, there is an increase in revenues on account of dividends, resulting from improved performance of participated companies

13

Consistent Financial Performance Consolidated Results – Non Operational

Dividends: Increase of COP 276 billion in terms

• f

decreed dividends in favor

• f

EEB, particularly those from Emgesa, Codensa, Gas Natural and Promigas.

3Q 13 3Q 12 $ % Operating profit 535,747 416,207 119,540 28.7% Dividends 799,853 523,953 275,900 52.7% Non-operating expenses 431,744 167,045 264,699 158.5% Net income before taxes and minority interest 903,856 773,115 130,741 16.9% Minority interest 52,280 83,250

• 30,970
• 37.2%

Provision for income tax 67,279 54,109 13,170 24.3% Net income 784,297 635,756 148,541 23.4% Consolidated Adjusted EBITDA LTM 1,668,543 1,455,541 213,002 14.6% COP Million Variance

Foreign Exchange Account: The devaluation of the Colombian peso during the first nine months of 2013, had a negative impact on the foreign exchange account, as a result of updating financial obligations of the Group denominated in USD, which is only for accounting purposes and does not correspond to cash expenditures. Non Operating Expenses: Financial Expenses: a reduction in COP 156 billion, related to EEB and TGI’s debt management operations performed in recent years Net Income : Increase in 23%

* EMSA, ISA, ISAGEN, REP-CTM, Otros

66% 51% 13% 33% 12% 8% 6% 5% 3% 4% 0% 20% 40% 60% 80% 100% 120% As of 3Q - 12 As of 3Q - 13

Dividends declared by Non - controlled Companies

Emgesa Codensa Gas Natural Promigás Otros*

COP 523,953 mm COP 799,853 mm

14

Sept/2013: Operational Profits from controlled subsidiaries participate with 55% of the total adjusted EBITDA, compared to 15% of participation in 2006. Dividends from non-controlled companies participates with the remaining 45%

EBITDA Evolution Consolidated Results

EEB Transmission, Trecsa & EEBIS 4.4% TGI 40.4% Decsa/EEC 4.4% Cálidda & Contugás 6.2% Emgesa 22.3% Codensa 15.1% Gas Natural 3.4% Others 3.7%

Consolidated Adjusted EBITDA LTM by subsidiary

85% 59% 50% 49% 53% 47% 51% 45%

15% 41% 50% 51% 47% 53% 49% 55%

2006 2007 2008 2009 2010 2.011 2.012 2013-jun (UDM)

Dividends (*) and Adjusted EBITDA

Dividendos EBITDA Operacional

• 2010 excludes dividends declared based on an early close of Gas Natural’s, Emgesa’s and

Codensa’s financial statements. These figures are included in 2011, when such dividends would normally have been declared.

152.7 USD MM 485.6 USD MM 397.9 USD MM 504.9 USD MM 591.9 USD MM 537.7 USD MM 605.4 USD MM 871.5 USD MM 2013-Sep (UDM)

15

LTM

202,007 176,861 1,010,355 232,594 248,733 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13

Consolidated Adjusted EBITDA Quarterly COP Millions

1,455,541 1,279,394 1,604,916 1,621,817 1,668,543 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13

Consolidated Adjusted EBITDA LTM COP Millions

• 12%

25% 1% 3%

7 14 14 14 128 14 229 7 610 750 320 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Consolidated Debt Maturity Profile – USD MM

USD 1,565 USD 1,542 USD 1,737 USD 1,807 USD 1,995

4.72% 3.43% 6.36% 4.95%

95.28% 96.57% 93.64% 95.05% 100%

2009 2010 2011 1S 2012 1S 2013

Consolidated Debt Composition - USD MM

Deuda Total %COP % USD

2013-Sep 2012

Debt Indicators Consolidated Results

Indebtedness in USD increased as a result of an issuance of a bond in Cálidda and the new syndicated loan in Contugas.

16

EEB Share Performance

Ticker EEB:CB On November 18, 2013 the EEB market capitalization was

USD 7,555 million.

 Trading volumen tripled after the Equity Offering Nov 2011. The stock is part of IGBC, COL20, COLCAP and COLEQTY * Values for years prior to the 2011 dividend were adjusted to split 100:1 which enforced the 20.06.11 stocks. Shares outstanding from Nov. 11: 9,181,177,017 * In 4Q 10 there was an advance cut of financial statements, reason why during 1Q 11 EEB decreed no dividends. 1Q 12 normalizes this effect

0,016 0,018 0,018 0,043 0,000 0,020 0,023

1T 08 1T 09 1T 10 4T 10 1T 11 1T 12 1T 13

Dividend per Share – USD 17

EEB Share Price Performance 2012 -2013

• 5. Questions and Answers

18

Investor Relations

For more information about Grupo Energía de Bogotá contact our Investor Relations team:

http://www.eeb.com.co http://www.grupoenergiadebogota.com/en/investors

Fabian Sánchez Aldana Investor Relations Advisor GEB +57 (1) 3268000 – ext 1897 fsanchez@eeb.com.co Antonio Angarita Investor Relations Officer GEB +57 (1) 3268000 - ext 1546 aangarita@eeb.com.co Rafael Andres Salamanca Investor Relations Advisor GEB +57 (1) 3268000 – ext 1675 rsalamanca@eeb.com.co 19

Appendix

20

Natural Regulated Monopolies

ENFICC: Reliability - Regulated Entry Fee.

 13% Of revenues from Emgesa are derived from the charge

for reliability (ENFICC), an income secured by the regulation

Transmission Generation Distribution Distribution

Regulated 81% Non- regulated 16.5% ENFICC * 2.5%

Electricity

Transport

Natural Gas

Spot 30% Bilateral Contracts 70%

Predictability and stability in regulated

• revenues. 81% of revenues comes from

regulated business.

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Leadership Market Position

Electricity transmission Market share (%) (Km of 220-138 kV lines ) Electricity transmission Market share (%) (Km of lines) Electricity distribution Market share (%) (Kwh) Electricity generation Market share (%) (Generation) # 1 Peru # 2 Colombia # 1 Colombia # 2 Colombia Gas distribution Market share (%) (No. clients) 59.0% Gas transportation Market share (%) (Average volume transported) 85.0% Gas distribution Market share (%) (No. clients) 100.0%

# 1 Colombia # 1 Colombia # 1 Perú

57.6% 8.0% 26.6% 20.9%

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