TGI 2012 Results and Significant Developments March14 2013 Table of - - PowerPoint PPT Presentation

March14 2013

TGI 2012 Results and Significant Developments

2

Table of contents

• 1. EEB Overview
• 2. TGI Overview, History
• 3. Significant developments
• 4. Financial and operating highlights
• 5. Sizeable expansion projects are well underway
• 6. Questions and Answers

Appendix

1.

Economic, industry and regulatory environment

2.

Shareholders and management team

• 1. EEB Overview

4

EEB Strategy and Overview

Strategy

• Transportation and distribution of energy.

Key facts

• 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.
• More than 100 years’ experience in the sector; founded in 1896.
• 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 biggest issuers of equity and debt in

Colombia.

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

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% 99.94%

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

40% 25% 68.1%

• 2. TGI Overview and History

6

TGI Overview

Stable and growing Colombian economy with sound investment environment Constructive and stable regulatory framework Largest natural gas pipeline system in Colombia Stable and predictable cash flow generation, strongly indexed to the US Dollar Strong and consistent financial performance Experienced management team with solid track record in the sector Expertise, financial strength and support of shareholders Natural monopoly in a regulated environment Strategically located pipeline network

Company history

7

TGI History

Pipeline network

Natural gas reserves City (population) References

Highlights

Source: Company information and ANH.

1.19 tcf

Center

2.49 tcf

North

3.36 tcf

Eastern

Producers: Chevron Ecopetrol Producers: Ecopetrol & Equion

South

Valledupar (350k) Currumaní (27k) Bucaramanga (1.1mm) Bogota (7.9mm) Neiva (477k) Cali (2.7mm) Pereira (682k) Manizales (430k) Medellin (3.3mm)

0.02 tcf Pipeline owned by TGI Pipeline owned by a third party References BOMT

 Owns approximately 57% of the national

pipeline network (3,957 km) and transports 48% of the gas consumed in the country −Serves approximately 70% of Colombia’s population, reaching the most populated areas. −Has access to the two main production regions, La Guajira and Cusiana/Cupiagua

 25% interest in Contugas (Peru)

−30-year concession for natural gas transportation and distribution

 TGI was created as a result of the privatization of Ecogás and has experienced remarkable growth since

then, under the leadership of its controlling shareholders, EEB and CVCI

Creation of Ecogas

1997 2005

Alienation of Ecogas assets

2006

Ecogás awarded to EEB

2007

Creation of TGI and bond issuance Transfer of 1st BOMT (GBS) and pipelines exchange with Promigas Transfer of 2nd BOMT (Centragas) and CVCI capitalization Cusiana expansion phase I begins operations Subordinated debt is refinanced.

2009 2008

TGI assumes the O&M

• f owned pipelines

2012

Refinancing of 2007 Bond issue Cusiana expansion phase II begins

• perations (3Q)

TGI assumes the O&M

• f Compressor stations.

Moody´s and Fitch give investment grade rating to TGI

2011 2010

Source: Company information. Villavicencio (384k)

Ballena expansion begins Operations TGI-Transcogas merger

• 3. Significant Developments

9

Key Updates

 Since 2H 2011, TGI designed a strategy to improve its credit ratings in order to (i) reduce financial

expenses, (ii) provide better access to debt capital markets and (iii) broaden its potential investor base

 This is TGI’s second investment grade rating (Moody’s rated TGI Baa3 in March 2012)  These ratings reflect TGI´s improving financial results, its stable and predictable cash flow

generation, the conclusion of its expansion projects, and the constant improvement in its credit metrics

 TGI’s current ratings are as follows:

Baa3 Stable Outlook BBB- Stable Outlook BB Positive Outlook Fitch upgraded TGI’s credit rating to BBB- on Nov. 2, 2012

10

Update on tariff review process with CREG

 In September 2011, CREG issued resolution 110 of 2011, updating TGI’s gas transportation tariffs

• This new tariff scheme resulted in increased revenues for TGI and fully compensated the

Company for its O&M expenses

• The expected increase in TGI’s regulated revenues was approximately 5%

 However, TGI considered that Res. 110 did not correctly reflect the costs of its past investments and

future investment plan

• TGI therefore presented an appeal to CREG to review its decision
• This appeal put the application of the new tariffs on hold until it was resolved

 The appeal process took 14 months and involved interaction with Government officials and

international experts appointed by CREG

 In November 19 2012, CREG issued Resolution 121 where the appeal was solved and issued new

tariffs that will apply for the next 5 years

• New tariffs are expected to increase TGI´s regulated revenues by approximately 10%
• TGI is still not completely satisfied with the outcome and is taking all necessary legal actions to

further pursue its claims

 Despite the continuing legal actions, the new tariffs are being applied

• O&M tariffs have been in force since December 2012
• Investment tariffs are being gradually implemented, a process expected to end by March 2013

Key Updates

11

Completion of Cusiana Phase II Expansion Project

Key Updates

Natagaima Bogota Neiva Mariquita Cali Ibagué Dina Cusiana La Belleza Barrancabermeja Puerto Salgar Aipe Gualanday Cogua Tunja Vasconia E.C Puente Guillermo E.C. Mariquita E.C. Padua E.C. Vasconia E.C. Miraflores Loops New compression stations Existing compression stations to be repowered

Commercial Operation Date: August 2012 Total cost: USD 296 million Increased network length: 187 kms Increased transportation capacity:110 mmscfd. % of additional capacity contracted: 91% Incremental revenues: Approx. US$ 56 million/year Capacity expansion successfully proven

12

Takeover of the O&M Activities of the Compression Stations

Key Updates

 O&M activities for TGI’s compression stations had been

subcontracted with a third party (Exterran)

• This O&M contract expired on July 27, 2012

 On April 2012, TGI’s board approved the direct takeover of

the O&M activities of 12 of its 13(1) compression stations

 Estimated annual savings of approximately US$ 3 million  Helps the development of the Reliability-Centered

Maintenance model (RCM) to improve O&M activities

 Strengthens TGI’s know-how in gas transportation systems

O&M

 As a result, TGI hired 133 new employees  During the past 6 months, results have been very positive

• For the period Aug-Dec 2012 actual savings were
• approx. US$ 2,5 million

(1) Under the Ecogas asset disposition plan, Apiay Compressor station must be operated by ECOPETROL.

• 4. Financial and operating highlights

14

Solid operational performance

Source: Company information.

Network length

(km)

Capacity

(mmscfd)

Firm Contracted Capacity

(mmscfd)

Transported Volume Gas Losses Load factor

3,702 3,529 3,774 3,774 3,957 2008 2009 2010 2011 2012 371 396 422 420 422 2008 2009 2010 2011 2012

(mmscfd) (%) (%)

427 437 485 560 604 2008 2009 2010 2011 2012 66.1% 69.1% 71.2% 57.6% 58.9% 2008 2009 2010 2011 2012 0.10% 0.20% 0.57% 0.54% 0.52% 2008 2009 2010 2011 2012 478 478 548 618 730 2008 2009 2010 2011 2012

15

Source: UPME and Company information. (1) As of December 31, 2012. (2) 48% of market share of gas transported directly by TGI. Most of the 14% transported by “Others” is natural gas transported by TGI through the TGI Pipeline System to other pipeline systems.

 TGI is the largest natural gas transportation

company in the country − Holds 48%(2) market share in the Colombian natural gas transportation sector and owns ~57% of the pipeline network

 TGI’s extensive pipeline network (3,957 km)

allows the Company to take advantage of new business

• pportunities

and participate in expansion projects in different regions

 Other industry participants face high barriers of

entry to access TGI’s gas transportation market in a cost-efficient manner

 TGI initiated expansion plans outside Colombia

by acquiring a 25% stake in Contugas (Peru) − 30-year natural gas distribution concession − Expected to begin operations in 2H 2013 – 1H 2014.

Natural gas transportation market share (1) Natural gas transported volume (1)

(mmscfd) (% of natural gas transported volume)

Largest natural gas pipeline system in Colombia

TGI has a dominant market position, holding a natural monopoly with high barriers of entry

Source: Natural gas transportation companies’ Electronic Bulletin of Operations Source: Natural gas transportation companies’ Electronic Bulletin of Operations

TGI 48% PROMIGAS 38% OTHERS 14% 422.2 339.5 45.0 36.2 22.9 11.9 4.8

Ecopetrol 22% Gas Natural 26% G.Occidente 17% EPM 8% Isagen 4% Others 23%

16

Stable and predictable cash flow generation

 Approximately 94% coming from regulated tariffs  Main sectors served by the Company present stable consumption patterns (no seasonality)  Excellent contract quality

− 100% of TGI’s contracts are firm contracts with an average life of 8,4 years − 82% of regulated revenues are fixed tariffs, not dependent on transported volume (expected to increase with the new regulatory scheme) − Approximately 76%(1) of EBITDA denominated in US Dollars Key financial data Revenues breakdown

(US$ in millions – LTM average exchange rate) (% of revenues)

By client By sector

Source: Company information – 2012 figures are preliminary. (1) TGI calculations

TGI’s revenues are highly predictable as a result of regulated tariffs and stable consumption

Source: TGI as of Dec. 31- 2012

196 198 224 261 293 2008 2009 2010 2011 2012 EBITDA Distributors 55% Refinery (Ecopetrol) 7% Thermal 10% Traders 17% Vehicle 9% Others 2%

17

77% of revenues from top tier clients with solid credit ratings, all raised to investment grade in tandem with sovereign rating

With a robust customer base

17

Source: Company information. (1) Residential users refer to the number of residencies served, not the population, which would be approximately five times larger.

 Largest gas producer in Colombia  Publicly traded company controlled by the Colombian government  Strong corporate governance  Ratings: Baa2/BBB- foreign; AAA local  Firm contract for 8 years  Main gas distributor in Colombia  Controlled by Spanish gasNatural Fenosa; EEB holds 25% of the

company’s shares

 Ratings: AAA local  Firm contract for 12 years  Gas distributor in the Southwest region of Colombia  Private company controlled by Promigas with dominant presence in

the state of Valle del Cauca

 Ratings: AAA local  Firm contract for 8 years  Main electricity generator in Colombia and gas distributor in the

Northwest region of the country

 Controlled by the City of Medellin  Ratings: Baa3/BBB foreign ; AAA local.  Firm contract for 8 years  Third electricity generator in Colombia  57% controlled by the Colombian government  Ratings: Baa3/BBB- foreign ; AA+/BB+ local  Firm contract for 8 years

TGI’s main clients Main clients served

 Refineries  Thermal generators  Trading  Residential (2.4mm users) (1)  Small businesses.  Industries  Natural Gas for Vehicles  Residential (914k users) (1)  Industries  Natural Gas for Vehicles  Residential (720k users) (1)  Thermal generation  Thermal generation  Trading

18

And long term firm contracts

Source: Company information. (1) Includes 36 clients.

TGI’s capacity is covered by firm contracts (average life of 8.4 years) with top-tier clients

(1)

OTHERS (1)

 In 2008, the Company contracted its capacity on a long term basis, with most of the contracts

maturing 2021

 Commercial strategy to ensure a timely rollover of the contracts

19

Strong and consistent financial performance

Revenues EBITDA and EBITDA margin Funds from operations (1)

(US$ in millions – average exchange rate for each period)

Source: Company information – 2012 figures are preliminary. Note: Ratios calculated in local currency.

Historical Capex

(US$ in millions – average exchange rate for each period) (US$ in millions – average exchange rate for each period) (US$ in millions – average exchange rate for each period)

14 69 174 387 185

2008 2009 2010 2011 2012

196 198 224 261 293

81.7% 78.2% 76.2% 76.8% 75.0%

2008 2009 2010 2011 2012 EBITDA EBITDA Margin 84.2 96.5 108.1 116.9 132.5 2008 2009 2010 2011 2012 240 253 295 339 391 2008 2009 2010 2011 2012

(1)FFO calculated as net income plus depreciation, amortization and provisions, adjusted for effect from exchange rate and hedges. On 2012 FFO includes the LM transaction premium~ USD 69 million (one time event)

20

Strong and consistent financial performance

Total debt / EBITDA Financial debt breakdown (2)

Subordination Agreement



The lender is EEB (major shareholder)



No repayment of principal allowed before payment of senior debt



Interest can only be paid if there is no default or event of default and if the payment does not trigger any such scenario



Subordinated debt acceleration is not allowed until senior debt is not repaid

Source: Company information. Total debt includes senior debt, subordinated debt and mark-to-market. 2012 figures are preliminary. Note: Ratios calculated in local currency. (1) Interest coverage ratio calculated as EBITDA / Net interest (2) Senior debt stands for the US$750 million Senior Unsecured Notes due 2022. Subordinated debt stands for intercompany loan with EEB.

Total senior net debt / EBITDA Interest coverage (1)

Sub Debt: 370mm (30%) Senior Debt: 750 mm (60%) Hedges M2M: 122 mm ( 10%) 6.5 5.6 5.4 4.9 4.2 2008 2009 2010 2011 2012 3.7 3.3 3.4 2.7 2.4 2008 2009 2010 2011 2012 2.0 2.0 2.1 2.5 4.0 2008 2009 2010 2011 2012

• 5. Sizeable expansion projects are well underway

Sizeable expansion projects are well underway

Source: Company information.

Cusiana Apiay San Fernando La Sabana compression plant Regional Transportation Systems

TGI has additional projects to be implemented in the coming years, which are fully financed

New cities New pipelines TGI pipelines TGI pipelines

Casa máquinas Cuarto contro l Variadores de velocidad Potencia eléctrica Oficina s Venteo

Key highlights:



Historically the Apiay region has had a notable oil and gas development

• There are a substantial number of oil extraction facilities that
• perate with gas and whose energy requirements are

estimated to increase in the future



The project consists in the construction of a 150 km 20” loop between Cusiana and Apiay and a new 50 km 10” pipeline from Apiay to the San Fernando generation facilities.



Will increase capacity by approximately 70 mmscfd at an estimated cost of US$ 244 million (+/-20%)



Client is Ecopetrol



Engineering and environmental studies underway



MOU signed with Ecopetrol on 2012.



Transportation contract negotiation in process



RFP for EPC expected on 1H 2013.



Expected commercial operation start date: 2015 Key highlights:

 La Sabana compression plant is the solution to the needed

expansion of the transportation system serving Bogotá and its surrounding area

 The project consists in the construction of a compression station

that will increase the transportation capacity from 143 to 215 mmscfd

 The cost of the station will be approximately US$ 57 million  The compression equipment will use the MOPICO technology,

for environmental reasons

 Land already acquired  The MOPICO compressor supply contract is under negotiation

and will be signed soon.

 RFP for EPC almost ready.  Site works are expected to begin at the 2H 2013. The station is

expected to begin operations during 2014 Key highlights:



Several small projects to increase the natural gas coverage near Bogotá are underway, these projects include:

• Cundi Suroccidental: a 90 km pipeline, with diameters of 6’’, 3”

and 2” − Serving several small cities southwest of Bogotá − Estimated cost of US$ 21 million

• Cundi Noroccidental: a 19 km 4” pipeline serving the city of Pacho

− Estimated cost of US$ 6 million

• Boyacá Central: a 45 km 4” and 2” pipeline

− Serving several small cities in Boyacá − Estimated cost of US$ 8 million



Tariffs issued by CREG didn't fully remunerate TGI´s expected investment



TGI is working with CREG to resolve this issue



Project development is currently on hold



However, if TGI’s investments are not fully remunarted we won’t execute the expansions

• 6. Questions and Answers

24

Investor Relations

For more information about TGI contact our Investor Relations team: Sergio Andrés Hernández Acosta Finance Director +57 (7) 6320002 - ext. 2450 sergio.hernandez@tgi.com.co http://www.tgi.com.co http://www.grupoenergiadebogota.com.co Santiago Pardo de la Concha CFO +57 (7) 6320002 - ext 2110 santiago.pardo@tgi.com.co Rafael Andrés Salamanca Rodriguez Investor Relations Office +57 (1) 3268000 – ext1675 rsalamanca@eeb.com.co

Appendix 1 – Economic and industry environment

Source: Banco de la República, DNP, MINHACIENDA., Bloomberg

5-year CDS Foreign currency reserves Real GDP growth and inflation Foreign direct investment

(US$ in billions) (% growth) (%) (US$ in billions)

Stable and growing Colombian economy with sound investment environment

Despite the recent global economic slowdown, Colombia has experienced positive economic growth and an increase in industrial activity, supported by a steady flow of investment

3% 2% 3% 4% 5% 5% 7% 7% 4% 2% 4% 6% 4% 9% 8% 7% 6% 6% 5% 4% 6% 8% 2% 3% 4% 2% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Real GDP growth Inflation 2.4 2.5 2.1 1.7 3.0 10.3 6.7 9.0 10.6 7.1 6.7 13.6 11.8

• 4.0

8.0 12.0 16.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3Q

9 10 11 11 14 15 15 21 24 25 28 32 37 36% 40% 38% 40% 34% 28% 25% 22% 19% 23% 22% 23% 22% 0% 10% 20% 30% 40% 50%

• 5

10 15 20 25 30 35 40

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

International reserves 100 200 300 400 500 600 700 800 900

637 695 731 723 810 860 783 898 995 1,111 2005 2006 2007 2008 2009 2010 2011 2012 E 2013 E 2016 E

Strong growth of Colombia’s natural gas sector

Source: UPME and Latest Company Information Available. (1) Decrease as an effect of peak demand in 2011 due to the aftereffects of the Niño phenomenon. (Accumulation of reservoirs).

Highlights

 Since 1970s, the Colombian government has launched

several initiatives to promote development in the sector

 Natural gas demand has experienced significant growth,

reaching an estimated of 783 mmscfd in 2011, as a result

• f:

− Substitution of natural gas − Growth in many industrial segments of the Colombian economy − Growth of the country’s overall population and GDP

 More than 6 million residential households, nearly

390,000 vehicles and a great portion of the national industries are served with natural gas

 It is expected that local demand for natural gas will

continue to increase at an average annual rate of about 7.3% until 2016: − The refinery, vehicle, residential and industrial sectors − Central Colombia (TGI’s region) is less “gassified” than the Atlantic Coast, with higher growth opportunities in the interior of the country

Natural gas demand Dec 2011 Demand by sector Oct 2012 Expected demand growth by sector (Base 2011)

(mmscfd)

The consumption of natural gas as a fuel source has experienced a significant increase and is expected to continue growing over the coming years

(% of total demand) (2011-2016 growth)

(1)

CAGR: 05-11: 3.5% CAGR: 11-16: 7,3%

• 1,7%

0,0% 4,0% 2,8% 1,2% 15,8%

Themoelectric Petrochemical Industrial Residential Vehicle Refinery Thermoele ctric; 25% GNV; 8% Residentia l; 24% Industrial- Refinery; 41% Petroche mical; 2%

North 67 East 30%

Others 2%

28

Vast reserves of natural gas

Source: ANH - Latest Company Information Available

Natural gas reserves location

Natural gas reserves City (population) References

1.19 tcf

Center

2.49 tcf

North

3.36 tcf

Eastern

Producers: Chevron Ecopetrol Producers: Ecopetrol Equion

South

Valledupar (350k) Currumaní (27k) Cucuta (804k) Bucaramanga (1.1mm) Bogota (7.9mm) Neiva (477k) Cali (2.7mm) Pereira (682k) Manizales (430k) Medellin (3.3mm)

0.02 tcf

Total natural gas reserves growth Natural gas reserves and production by region

Average production: 1,060 mmscfd (Dec 2011)

North 35% East 48% Others 17%

Total reserves (Dec 2010) (1): 7.1 tcf

(tcf)  Total natural gas reserves of 7.1 tcf (5.4 tcf proven and 1.7 tcf unproven)  Reserves / production ratio of 18 years

Colombia has vast natural gas reserves, which have been growing through increasing exploration activity since the initial discovery in the Guajira basin in the mid 1970s

 Although total natural gas reserves (proven, probable and possible)

decreased in 2011, proved reserves increased by 1.1% in that year

 The majority of natural gas reserves are located in the East region of

Colombia (Cusiana basin), although North basin (Chuchupa / Ballena) accounts for most of the current production

Barranquilla (1.3mm)

• Sta. Marta (431k)

Cartagena (890k)

0,0 2,0 4,0 6,0 8,0 10,0 2005 2006 2007 2008 2009 2010 2011

Total Probable + possible Proven

*07-11 proven reserves CAGR: 11%

29

Strategically located pipeline network

Source: upme and Latest Company Information Available

 Natural gas demand is expected to continue to grow rapidly,

particularly in the interior of the country where TGI operates

TGI pipeline network

(users)

TGI’s pipeline network ensures natural gas demand by reaching Colombia’s major urban and industrial centers and guarantees supply through its position close to large gas reserves

 TGI’s pipeline network is connected to the two largest production

centers in the country, which provides reliability to the system

Total natural gas demand evolution by region Total natural gas demand evolution by region

1.19 tcf

Center

2.49 tcf

North

3.36 tcf

Eastern

Producers: Chevron Ecopetrol Producers: Ecopetrol Equión

South

Valledupar (350k) Currumaní (27k) Cucuta (804k) Bucaramanga (1.1mm) Bogota (7.9mm) Neiva (477k) Cali (2.7mm) Pereira (682k) Manizales (430k) Medellin (3.3mm)

0.02 tcf

Natural gas reserves City (population) References Pipeline owned by TGI Pipeline owned by a third party References BOMT

Strategically located pipeline network

TGI pipeline network

(users)

Residential natural gas users evolution by region

(mmscfd)

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2006 2007 2008 2009 2010 2011 Coast Interior

CAGR 06-11: Interior: 8.7%; Coast: 5.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Coast Interior

CAGR: 05-11 Coast: 1.0% Interior: 5.8% CAGR: 11-16 Coast: 0.7% Interior: 11,5%

30

Regulatory framework established to attract private sector investment

 Law 142 (1994) establishes system

• f open entry to the natural gas

transportation sector − No term limitation for the provision

• f the service

− Assets used in the provision of the service are not owned by the state but by the company providing such service CREG required by law to seek input from market participants

 CREG is an independent regulatory

body that controls natural gas regulation − Sets tariffs, promotes competition and monitors quality of service Tariff calculation based on the principle of financial feasibility and economic efficiency

 Tariffs are set in order to allow the

service provider to: − Recover operational costs and investments − Obtain a return on investment comparable to what an efficient company would obtain in a sector

• f similar risk

Cost recovery, attractive regulated return on investment and protection against inflation

 Transporters are given full recovery

• f operating and maintenance

expenses − Adjusted by Colombian Price Index (CPI)

 Dollar indexation of investment

remuneration tariff

 Different rates of return applied

when determining fixed and variable charges

Constructive and stable regulatory framework

Source: Company information.

The Colombian gas transportation regulatory framework was established to attract private sector investment and provide adequate cost recovery and regulated returns

Appendix 2 - Shareholders and management team

(68.05% of TGI) 32

Source: Company information.

Leading energy holding company with interests across the electricity and natural gas sectors in Colombia, Peru and Guatemala

 Founded in 1896 and controlled by the City of Bogota (with a

76.28% ownership stake)

 Participates in the electricity and natural gas sectors through

controlling and non-controlling investments − Controlling investments in electricity transmission (Energia de Bogota and Trecsa), electricity distribution (EEC), natural gas transportation (TGI) and natural gas distribution (Contugas and Calidda) − Non-controlling investments in electricity transmission (REP Peru, CTM Peru and Isa), electricity generation (Emgesa and Isagen), electricity districution (Codensa and Electrificadora del Meta), natural gas transportation (Promigas) and natural gas distribution (gasNatural Fenosa)

 US$ 723,5 Million EBITDA (2012) and US$ 8,3 Billion assets

(2012) Leading private equity in emerging markets focused on companies with compelling growth prospects across India, China, Asia Pacific, Emerging Europe, Africa and Latin America

 Founded in 2001  Focused on Latin America, Asia, Emerging Europe and other

regions with strong growth potential

 Participates in companies covering a broad range of industries in

high-growth sectors and markets

 CVCI currently manages over U.S.$7 billion in equity investments

and committed capital

 Contributes know-how and financial discipline to TGI (31.92% of TGI)  Shareholders agreement between EEB and CVCI

− Board of Directors comprised of 7 members (5 elected by EEB and 2 elected by CVCI)

• Key corporate decisions require approval from at least 6 Directors (dividend policy, international expansion, new business lines,

indebtedness, business plan, transfer or sale of assets > US$ 150 million and investments) − CVCI has the right to propose 3 possible candidates for CFO (EEB makes the final decision) and to elect TGI’s controller − 3 committees: compensation committee, operating committee and auditing committee

Transparent corporate governance

Expertise, financial strength and support of shareholders

EEB and CVCI provide an optimal combination of operating expertise and financial support to TGI

33

Source: Company information.

Ricardo Roa Barragán

CEO 20

 Mechanical Engineering degree from the Universidad Nacional and post-graduate degree in

Engineering management systems from the Pontificia Universidad Javeriana.

 Over 20 years of experience in the private and public sectors, including experience as

Energy Business Manager of organizacion Ardila Lulle, CEO of Poliobras S.A. ESP, Marketing and Trading Manager and CEO of Electrificadora de Santander S.A. ESP (ESSA), Energy and Gas Sectorial Secretary of The National Association of Utilities (ANDESCO) and Advisor of the Colombia’s Superintendency of Domestic Public Services (Superintendencia de Servicios Públicos Domiciliarios).

 CEO of TGI since March 2012

Santiago Pardo

Vice-President of Finance 20

 Degree in Economics from Universidad de los Andes and MBA from Cornell University  Over 20 years of experience in international finance and banking, former Managing Director

(Infrastructure and Energy) of Abacus Capital, Project Finance Director of Reficar and Director of Infrastructure and Energy Finance for Citi

 Vice-President of Finance since August 2011

Jorge A. Pineda Sánchez

Vice-President of Operations 20

 Civil Engineering degree from the Universidad Industrial de Santander; specialization in Gas

Distribution Engineering from the Institute of Gas Technology of Illinois and MSc. in Engineering and Construction Management from the Universidad de los Andes

 Over 20 years of experience, including 12 years in gasNatural Fenosa as Gas Supply, Tariffs

and Regulation Manager; Cost Control Engineer for Control de Proyectos; Design Engineer for Consultoría Colombiana and extensive experience as an independent consultant in utilities and public services affairs

 Became Vice-President of Operations of TGI in February 2008, and Deputy CEO between

09/08 and 06/09

Officer Key highlights Years of relevant experience

Experienced management team with solid track record in the sector

TGI is led by an experienced and seasoned management team

Carlos Toledo

Vice-President for Administration and Public Relations 7

 Degree in Law from the Universidad UNICIENCIA.  Degree in Electrical Engineering and specialization in telecommunications from Universidad

Industrial de Santander Master’s degree in Applied Political Studies from FIIAPP.

 Master in Social Cohesion from Universidad de Mendez Pelayo, España.  Over 7 years serving the public and private sectors, including experience as IT manager of

the Bucaramanga´s Health institute , CEO of TELNETCO, and as advisor of the Santander Department Government .

 Vice-President for Administration and Public Relations since May 2012.

Disclaimer

This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of TGI, its consolidated subsidiaries and related companies to market risks and statements expressing management’ expectations, beliefs, estimates, forecasts, projections and assumptions. These forward- looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “objectives”, ”outlook”, “probably”, “project”, “will”, “seek”, “target”, “risks”, “goals”, “should” and similar terms and phrases. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Although TGI believes that the expectations and assumptions reflected in such forward-looking statements are reasonable based on information currently available to TGI’s management, such expectations and assumptions are necessarily speculative and subject to substantial uncertainty, and as a result, TGI cannot guarantee future results or events. TGI does not undertake any obligation to update any forward-looking statement or other information to reflect events or circumstances occurring after the date of this presentation or to reflect the occurrence of unanticipated events.