GEB Earnings Results 3Q 2018 1 November 15/2018
Disclaimer The information provided herein is for informational and illustrative purposes This presentation may contain statements that are forward-looking within only and is not, and does not seek to be, a source of legal, investment or the meaning of Section 27A of the Securities Act and Section 21E of the U.S. financial advice on any subject. This presentation does not purport to address Securities Exchange Act of 1934. Such forward-looking statements are based any specific investment objectives, financial situation or particular needs of on current expectations, projections and assumptions about future events any recipient. It should not be regarded by recipients as a substitute for the and trends that may affect GEB and are not guarantees of future exercise of their own judgment. This information does not constitute an offer performance. of any sort and is subject to change without notice. GEB is no obligation to update or keep current the information contained herein. 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 GEB expressly disclaims any responsibility for actions taken or not taken laws. Accordingly, the shares are being offered and sold in the United States based on this information. GEB does not accept any responsibility for losses only to qualified institutional buyers as defined under Rule 144A under the that might result from the execution of the proposals or recommendations Securities Act, and outside the United States in accordance with Regulation S presented. GEB is not responsible for any content that may originate with of the Securities Act. third parties. GEB may have provided, or might provide in the future, information that is inconsistent with the information herein presented. No We converted some amounts from Colombian pesos into U.S. dollars solely representation or warranty, either express or implied, is provided in relation for the convenience of the reader at the TRM published by the SFC as of each to the accuracy, completeness or reliability of the information contained period. These convenience translations are not in accordance with U.S. GAAP herein. 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. 2
1. GEB Overview 2. Key Updates 3. Expansion Projects 4. Financial Performance 5. Q&A 3
1 GEB Overview 4
1.1 GEB at a Glance GEB is a leading energy holding in LatAm with a diversified portfolio of Power and Natural Gas companies, classified in three strategic business groups: Power Power Natural Gas Natural Gas Power Distribution Distribution Transmission Transportation Generation 3.526 MW in Installed Capacity 3,7 mm clients in Power Distribution 13.729 km of Transmission Lines 14.765 GWh in Power Generation 3,0 mm clients in Natural Gas Distribution 4.334 km of Gas Pipelines USD$880 mm YTD USD$743 mm YTD USD$6,2bn ~USD$249 mm Consolidated Revenue Consolidated EBITDA Market Cap. CAPEX 3Q 2018 3Q 2018 3Q 2018 Sep 30, 2018 Approved a profit distribution of 5,7% 8,4% 9,3% COP$1.055.835 mm Dividend Yield 3Q 2017 – 3Q 2018 3Q 2017 – 3Q 2018 GEB paid its shareholders a record Avg. 2011 – 3Q 2018 dividend of COP$115 per share 5
1.2 Leading Participant in Relevant Energy Markets GEB’s subsidiaries have market leading participations across the energy chain in Colombia, Peru and Guatemala Colombia Guatemala Natural Gas # 1 Colombia (8) Transportation Colombia Power Transmission # 1 Guatemala (1) Market Share 54,0% (8) (Private Company) % National Network (km) Market Share Guatemala 20,9% (1) % Revenue NTS Power Distribution # 1 Colombia (4) Peru Market Share 24,0% (4) % Subscriptions Peru Power Transmission # 1 Peru (2) Market Share 65,2% (2) Power Transmission # 2 Colombia (5) % Revenue NTS Market Share 17,9% (5) Natural Gas Dist. / Transp. % Revenue NTS # 1 Peru (3) Brazil Market Share 80,2% (3) Power Generation #1 Colombia (6) % Distributed Volume Market Share 20,7% (6) Brazil % Power Generated Power Transmission Natural Gas Distribution # 2 Colombia (7) Market Share 0,8% (9) Market Share 32,5% (7) % Network NTS (km) % Connected Users • Source: GEB. • Notes: (1) AMM, November 2017 (http://www.amm.org.gt//ite.php?fecha=09-2017&anio=2017); (2) COES, September 2017 (http://www.coes.org.pe/portal/); (3) Perupetro, September 2017 (http://www.minem.gob.pe/_estadisticaSector.php?idSector=5); (4) SSPD, December 2017 (http://reportes.sui.gov.co/fabricaReportes/frameSet.jsp?idreporte=ele_com_094); (5) XM, December 2017P (http://www.xm.com.co); (6) XM, December 2017 (http://www.xm.com.co); (7) Minminas, September 2017 (Natural Gas Coverage Report as of 3Q 2017); (8) Market share of TGI as of December 2016 (Promigas – Natural Gas Sector Report 2017) and excluding Promigas; (9) MME/ANEEL/ONS, September 2017 (http://www.mme.gov.br/web/guest/secretarias/energia-eletrica/publicacoes/boletim-de-monitoramento-do-sistema-eletrico/boletins-2017 ). 6
2 Key Updates 7
2.1 Key Updates 3Q 2018 GEB • During July: Reactivated and strengthened the relationship with research analysts, and provided them with GEB’s current outlook and vision. These have translated into an increase of coverage and follow-up reports on the Company. • July 31 st : Closing of the second stage of democratization with the registration of divested shares. • August 1 st : GEB informed about changes in its shareholding structure. • September 7 th : A request was submitted before the National Planning Department (DNP) for a favorable opinion on the external indebtedness for 2018-2023 period. • September 18 th : Colombian Stock Exchange granted GEB the IR Recognition for fourth consecutive year. • September 28 th : S&P Global Ratings (S&P) reaffirmed the credit rating (BBB-) for the corporate debt of Grupo Energía Bogotá S.A. E.S.P. (GEB), a rating that corresponds to investment grade. S&P also stated that it will keep GEB’s outlook as stable for the following 24 months. These reflect the sound and stable position of the Company in relation to current projects and assets in the portfolio, and investment opportunities in the medium and long-term, mainly in Colombia and Peru. • October 2 nd : An Extraordinary General Meeting approved a Statutory Amendment, the Rules and Regulations of the Annual General Meeting, and the Nomination, Remuneration and Succession Policy of the Board of Directors. • October 9 th : Fitch Ratings reaffirmed the credit rating of Grupo Energía Bogotá S.A. E.S.P. (GEB) at investment grade "BBB" on an international scale and "AAA" on a local scale, with a stable outlook in both cases. • October 12 th : On the occasion of specific debates on the Investment Framework Agreements signed with Enel Américas and as reported by media, main controversies between the parties are related to the non-compliance of mentioned documents in regard to the percentage of dividends distribution, businesses development in new technologies, and intellectual property matters, with respect to Emgesa and Codensa. It has been decided to raise the unresolved conflicts between the parties before an arbitration tribunal, a procedure agreed to settle the differences between shareholders. 8
2.2 Key Updates 3Q 2018 TGI • Compression unit No. 8 at Puente Guillermo station started operations during the third quarter. • At the end of July: i) Initiated the commissioning of the Magdalena River Crossing, which eliminates the risk of shortage for 84 municipalities and 8 departments; and ii) Loop Armenia (37 Km of pipeline in capacity) entered into operation. • During August: Natural gas transportation agreements for the Cusiana - Sebastopol route were subscribed with EPM. Approximately 15.000 kpcd for the year 2020 and 21.400 kpcd for the years 2021 and 2022. • September 28 th : S&P Global Ratings affirmed its 'BBB-' issuer credit rating for TGI. The outlook remains stable. The company's 'bbb-' stand- alone credit profile (SACP) remains unchanged. At the same time, affirmed the 'BBB-' issue-level ratings for TGI's senior unsecured debt. • October 9 th : Fitch Ratings affirmed TGI Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs), as well as international senior unsecured bond issuance at 'BBB’ . The outlook for TGI is stable. • October 17 th : TGI successfully completed the liability management program through an issuance of international bonds for USD$750 million, an operation that had bid-to-cover ratio of 3,5x and accomplished a rate reduction from 5,70% to 5,55% with maturity 2028. • An agreement with Emgesa was subscribed for 2.000 kpcd in the Cusiana - Vasconia route for the 2020 - 2024 period. The agreement is associated to the Cusiana Phase IV expansion project that is estimated to start operations towards the end of 2019 and will represent USD$32,8 million approximately in revenue for TGI. 9
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