Grupo Energía de Bogotá First Half 2016 Key Results and Developments August 18th 2016
DISCLAIMER The information provided herein is for informational and illustrative This presentation may contain statements that are forward-looking purposes only and is not, and does not seek to be, a source of legal, within the meaning of Section 27A of the Securities Act and Section investment or financial advice on any subject. This presentation does 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking not purport to address any specific investment objectives, financial statements are based on current expectations, projections and situation or particular needs of any recipient. It should not be regarded assumptions about future events and trends that may affect EEB and by recipients as a substitute for the exercise of their own judgment. are not guarantees of future performance. This information does not constitute an offer of any sort and is subject to change without notice. EEB is no obligation to update or keep 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. current the information contained herein. State securities laws. Accordingly, the shares are being offered and EEB expressly disclaims any responsibility for actions taken or not sold in the United States only to qualified institutional buyers as defined taken based on this information. EEB does not accept any under Rule 144A under the Securities Act, and outside the United responsibility for losses that might result from the execution of the States in accordance with Regulation S of the Securities Act. proposals or recommendations presented. EEB is not responsible for any content that may originate with third parties. EEB may have We converted some amounts from Colombian pesos into U.S. dollars provided, or might provide in the future, information that is inconsistent solely for the convenience of the reader at the TRM published by the with the information herein presented. No representation or warranty, SFC as of each period. These convenience translations are not in either express or implied, is provided in relation to the accuracy, accordance with U.S. GAAP and have not been audited. These completeness or reliability of the information contained herein. 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
Contenido 01 EEB Overview 02 Expansion Projects 03 Financial Performance 04 Q&A
01 EEB Overview
EEB Corporate Structure EEB generally controls its subsidiaries or partners with world class operators following a long track record of success. Electricity Natural Gas Services Generation Transmission Distribution Transport Distribution 100% 15.6% 51.5% 51.5% 100% 51% (1) Colombia 2.5% 1.7% 100% 99.97% (2) 16.2% 25% 100% (3) 40% Peru 66% (3) 40% 95.3% Guatemala 100% (4) Brazil (1) EEB ownership through DECSA Special Purpose Vehicle. (2) EEB ownership Companies in process of merger Selling process Law 226 directly and indirectly through IELAH Spain (additional 31.92%). (3) EEB effective ownership via direct and indirect stakes. (4) Through GEBBRAS Special Purpose Vehicle acquired on August 21, 2015 51% stake in four 5 concessions for ~USD158 mm.
KEY UPDATES Corporate Highligths Dividends Payment ISAGEN Divestiture 05/07/2016: EEB paid dividends for its minority Bogota’s municipality council authorized EEB on March shareholders , in one (1) installment, as following: 31 st 2016 to divest ISAGEN shares. Extraordinary Dividend: COP ~49.98 per share, related On April 20 th, the first phase addressed to the solidarity with the release of occasional reserves approved on sector (Law 226/95) started and it was open until June July 6 th 2015. 20 th 2016 Ordinary dividend: COP ~24.43 per share, approved in On July 21th, the second phase addressed to the the shareholders meeting last march 31 st 2016. general public and it was open until July 28 th 2016. After that date, the share was offer to any Open Tender Offer 05/07/2016: EEB paid dividends for its major shareholder , - OPA (Oferta Publica de Acciones) . Bogotá Municipality, as following: On July 29 th EEB accepted the BRE Colombia 40% of the ordinary dividend: COP ~24.43 per share. Investment and BRE Colombia Hydro Investment The remaining 60% of the ordinary dividend will be paid Limited L.P. tender offer. The Acceptance consists of up to October 28 th 2016 sixty-eight million seven hundred sixteen thousand (68.716.000) ordinary shares owned by EEB in Isagen 05/07/2017: EEB will start the payment of the extraordinary S.A. E.S.P. dividend, COP ~49.98 per share, for its major shareholder in 10 annual installments until 2026, with the respective On September 2016, EEB expects the final acceptance interest recognition. by the purchaser (OPA) and to receive COP ~284,000 Mm for this sale. 6
KEY UPDATES Corporate Highligths Ecopetrol selling process TRECSA Financing Ecopetrol S.A. made public the announcement to Offer the June 15 th , the Ministry of Finance by resolution No. 1733, second phase of the Program to sell and award the shares it authorized EEB to guarantee payment obligations of its owns. This stake sale is ruled by Law 226 of 1995. subsidiary Transportadora de Energía de Centroamérica S.A. – TRECSA, for up to EIGHTY SEVEN MILLION Ecopetrol’s final share value was COP 1,815 which was DOLLARS (US$87,000,000). according to Law final value after applying CPI indexation to initial price of phase one (COP1,740/share) . (TRECSA ) signed a credit agreement, due on June 29 th 2028, with Citibank Europe PLC UK Branch and Canadian 3.03% of Ecopetrol’s stake in EEB was offered to export agency EDC (Exporting Development Canada), to international investors and no orders were placed. finance the project PET 1-2009. On May 23 rd , Ecopetrol announced the second offering of its The disbursement was made on August 8 th . EEB’s participation of 3.03%. On June 1 st 2016 the auction was open in the Colombian Securities Exchange. In this second auction, Ecopetrol sold 191,639,698 shares , EEBIS Financing 77% was acquired by the pension funds and the remaining June 23 rd , the Ministry of Finance by resolution No. 1902, 23 % was allocated to retail investors. authorized EEB to guarantee payment obligations of its At this date, Ecopetrol has an outstanding shares of subsidiary EEB Ingeniería y Servicios S.A. – EEBIS, for up 86,585,888, 0.94% of EEB’s total shares. to FORTY EIGHT MILLION DOLLARS (US$48,000,000). 7
KEY UPDATES Natural gas transportation & distribution activities TGI Cálidda IELAH Merging: Cálidda ´ s client base has increased 32% compared to first On May 11 th 2016 TGI finalized the merger with IELAH; half of 2015, at the closing of the first half 2016 Calidda has a which was the Final Phase of the acquisition plan. As a client base of ~ 396,000 clients result the remaining debt of that entity will be in TGI ´ s BS During the first half, 804 km of network were built, whereby Current outstanding debt of IELAH is USD 219 MM (1) , the distribution system has reached a total of 6,793 km of after three partial repayments done: i) March 2015 (USD 76 MM) ; ii) September 2015 (USD 175 MM); underground pipelines. iii) On March 11 th 2016 (USD 175 MM). The EBITDA finalize in USD 113.2 Mm, increasing in 13% compared with the same period of 2015. This increase was Moody’s Rating Action mainly due to higher distribution services, mainly from Take- or- Pay contracts, and residential clients’ connection services On June 2 nd , Moody’s ratings affirmed TGI’s corporate debt • and issuer rating in “Baa3 ” stable outlook. and lower operational expenses in USD from services and contracts in Soles. (1) Excluding intercompanies loans 8
02 Expansion Projects
EXPANSION PROJECTS REVIEW Revenue growth has been sustained by a strong capex plan at the subsidiary and the associate level . Subsidiaries Projects Update (2Q 2016) Executed Capex by Segment (1) Capex by Company (2Q 16) (USD Mm) USD 74.6 Mm EAR(2) UPME Project Status On Stream USD MM 2Q 2016 2Q 2015 Chivor II 53,80% 5.5 08/07/2017 44,20% Cartagena Bolívar 11.6 07/03/2017 Río Córdoba 43,20% 1.8 30/11/2016 31.2 Electricity Transmission EEC Armenia 95,04% 1.3 26/11/2015 23.4 EEB 6.7% Trans. Tesalia 81,30% 11.0 14/02/2016 17.5% TGI 22.6 Sogamoso Norte 35,80% 21.1 30/09/2017 21.1% Gas Distribution EEBIS 47.5 GTM/PE Refuerzo Suroccidental 10.2% 14,60% 24.4 30/09/2018 5.0 500 kV Contugas Electricity Distribution Trecsa 9.9 0.8% Ecopetrol San Fernando 38,40% 6.3 30/04/2017 14.2% Cálidda Río Cordoba 46,10% 0.6 30/11/2016 29.5% 15.7 Transformadores Gas Transportation 15.5 48,03% La Loma 500 Kv 1.3 30/11/2016 La Loma 100 Kv 4,30% 6.9 30/06/2018 Drummond Rio Cordoba 20.62% 0.87 30/11/2016 Source: Company filings. (1) Excludes Brazil – GEBBRAS Capex (2) Expected annual revenues.
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