A Regional Leader in the Energy Sector
2
The proposed transaction involves the sale of a minority interest in EEB, a
holding company with a strong participation in energy markets in Colombia,
Peru, Guatemala and Brazil.
Proposed Transaction Overview
Transaction
Background
Ecopetrol recently sold a portion of its 6.87% of the outstanding shares owned of EEB through
“Round 1” of Ley 226
On July 27, 2015, 352,872,414 were sold to the Colombian Pension Funds
Secondary
Offering –
Round 2
The proposed transaction, “Round 2,” involves
the sale of the remainder of Ecopetrol’s stake, or
~3.03% of the outstanding shares of EEB
The minimum price for the offering is COP 1,815
per share based on COP 1,740 per share offered
in Round 1, adjusted by inflation according to
Ecopetrol Divesture Decree
Key Transaction Terms
Ticker:
Type:
Offered Shares:
Price:
Format:
Selling Agents:
EEB-CO
Secondary Sale
278,225,586
COP 1,815
Secondary Block
Trade
EEB Corporate Structure
3
EEB generally controls its subsidiaries or partners with world class
operators following a long track record of success.
Transmission Distribution Distribution
Electricity
Transport
Natural Gas Services
Generation
51.5%
2.5% 1.7% 51%(1)
16.2%
99.97%(2)
15.6% 100%
25%
100%(3)
66%(3)
100% 51.5%
99.9%
95.3% 100%
100%
100%
40%
40%
51%(4)
51%(4)
51%(4)
51%(4)
Source: Company filings.
(1) EEB ownership through DECSA Special Purpose Vehicle. (2) EEB ownership directly and indirectly through IELAH Spain (additional 31.92%).
(3) EEB effective ownership via direct and indirect stakes. (4) Acquired on March 27, 2015 for ~USD158 mm.
Colombia
Peru
Guatemala
Brazil
Investment Highlights
EEB’s subsidiaries have market leading participations across the energy chain and are well positioned to benefit from the expected
growth in electricity and natural gas markets in the region
Key Investment Highlights EEB represents an extraordinary opportunity to participate in a leading
diversified platform across regional energy markets.
Key Investment Highlights
Leading Participant in Relevant Energy Markets 1
Sound industry dynamics as well as strong growth outlooks for electricity and natural gas sectors in Colombia, Peru and Guatemala
provide significant growth opportunities for EEB and its subsidiaries
Strong Footprint in Attractive Energy Markets in LatAm 2
Due to the industry’s regulated framework, EEB’s distribution and transportation businesses provide stable streams of predictable
earnings. Carefully selected brownfield projects also provide significant growth opportunities
Growing Revenue Base Propelled by Disciplined Capex Planning 3
EEB receives a stable flow of dividends from its subsidiaries with dividend policies that promote maximum payout ratios. In turn,
EEB pays out an attractive and reliable amount of dividends to its shareholders
Track Record of Creating Value for Shareholders 4
EEB has successfully accessed the debt and equity markets in recent years to help finance important investment plans, including the
acquisition of a 32% stake in TGI. Several liability management transactions undertaken to reduce EEB’s overall financial costs
Continued Access to Financial Markets to Fund Expansions 5
EEB has strong relationships with its shareholders, including the Government of Bogotá, as well as with its partners (e.g. Endesa,
Gas Natural, ISA, etc.)
Strong Shareholders and Partners 6
5
Leading Participant in Relevant Energy Markets
6
1
Electricity
EEB’s subsidiaries have market leading participations across the energy
chain in Colombia, Peru and Guatemala.
Natural Gas
Generation
Market Share Inst. Capacity (%)
Market Share Generation (%)
# 3 Colombia
19.1%
21.2%
Transmission
Market Share (%)
(Km of lines)
# 2 Colombia
10.1%
Distribution
Market Share (%)
(Kwh)
# 1 Colombia
26.6%
Transmission
Market Share (%)
(Km of 220-138 kV lines)
# 1 Peru
57.6%
Transmission
Project Ongoing
(850 Km L/T and 24 S/E)
# 1 Guatemala
Distribution
Market Share (%)
(No. clients)
# 1 Colombia
59.0%
Transportation
Market Share (%)
(Average volume transported)
# 1 Colombia
87.0%
Distribution
Market Share (%)
(No. clients)
# 1 Perú
100.0%
Source: Company filings.
860 892 905
1,047 1,106
1,285
2010 2011 2012 2013 2014 … 2018E
2,900 2,774
3,982
4,459 4,700
5,161
2010 2011 2012 2013 2014 … 2018E
Source: ANH, MEM, UPME (medium scenario).
Perú
Strong Footprint in LatAm Natural Gas Markets…
7
2
Colombia
Natural Gas Footprint Natural Gas Footprint
Natural Gas Demand (mpcd) Natural Gas Demand (mpcd)
Proved Reserves
14,626
BCF
Residential
Industrial
Natural Gas Pipeline
Main grid expansion
EEB is well positioned to benefit from the expected growth in the natural gas
sector via its investments in TGI, Gas Natural, Promigas, Calidda & Contugas.
References
Natural Gas Reserves
City
Field
Bucaramanga
Bogota
Neiva
Cali
Medellin
3.15 tcf
1.97 tcf
Eastern Producers:
Ecopetrol Equion
Upper Magdalena Valley
Lower and Middle Magdalena Valley
Northern Producers: Chevron Ecopetrol
1.89 tcf
Ballena
Cusiana
56,148 57,157 59,367 60,885
63,964
73,867
2010 2011 2012 2013 2014 … 2018E
…And in LatAm Electricity Markets As Well
8
2
Colombia Electricity Demand
(GWh)
Perú Guatemala
Source: ANH, MEM, UPME (medium scenario).
Sound electricity industry dynamics expected to positively impact EEB’s
performance, via its investments in Isagen, ISA, Codensa, Emgesa, among others.
32,314 36,779
40,940 43,559 43,102
67,492
2010 2011 2012 2013 2014 … 2018E
8,134 8,473 8,730 8,945 9,231
12,630
2010 2011 2012 2013 2014 … 2018E
$3,311,701$3,513,739
$3,699,245 $3,802,041
$4,092,963
$2,125,147
2010 2011 2012 2013 2014 2Q 15
$1,237,673
$1,693,167
$1,902,952
$2,183,395
$2,530,768
$1,136,694
2010 2011 2012 2013 2014 2Q 15
Growing Revenue Base…
9
3
Natural Gas Distribution Revenue Electricity Distribution Revenue
Natural Gas Transportation Revenue Electricity Transmission Revenue
(COP mm)
As a result of participating in a regulated industry, EEB’s revenues are stable
and predictable (81% of total revenues come from regulated businesses)
(COP mm) (COP mm)
Source: Company filings.
Note: Total of operating revenues per company – aggregated figures for comparable purposes.
Average COP/USD exchange rates used for every year were the following; 2010:$1,914; 2011: $1,943; 2012: $1,768, 2013:$1,927; 2014: $2,393, 2Q 2015:$2,585.
(COP mm)
$647 $872 $1,076 $1,109 $1,133 $440 (USD mm) $1,730 $1,809 $2,092 $1,973 $1,711 $822 (USD mm)
$769,161$820,851
$948,514
$1,113,894
$1,365,600
$691,098
2010 2011 2012 2013 2014 2Q 15
$402 $423 $536 $578 $571 $267 (USD mm) $366 $426 $358 $289 $295 $162 (USD mm)
$700,443
$826,676
$632,706
$556,743
$705,122
$418,157
2010 2011 2012 2013 2014 2Q 15
REP
CTM
EEB Transmission
TGI
PROMIGAS
GAS NATURAL
CALIDDA
CODENSA
EEC
EMSA
… Propelled by a Solid Capex Plan
10
3
Associates
Revenue growth has been sustained by a strong capex plan at the subsidiary
and the associate level.
Source: Company filings.
(1) Excludes Brazil acquisition amount – USD158 mm.
(2) Expected annual revenues.
Executed Capex by Segment(1) Executed Capex by Segment
Projects Update (2Q 2015)
UPME Project Status EAR(2)
USD MM On Stream
Armenia 89.3% $1.28 2Q 2015
Tesalia 85.3% 10.9 4Q 2015
Chivor II Norte 47.0% 5.52 3Q 2015
Bolívar-TermoCartagena 17.2% 11.2 1Q 2017
Sogamoso-Norte 21.7% 21.2 3Q 2017
Rio Cordoba Substation 17.0% 1.81 4Q 2016
Southwest Reinforcement Project Awarded 24.37 3Q 2018
Río Cordoba Transformadores Project Awarded 0.6 4Q 2016
La Loma Project Awarded 1.29 4Q 2016
Ecopetrol San Fernando 1.8% N.A 2Q 2017
Projects Update
El Quimbo Project (400 MW)
Total investment: USD1,231 mm
Execution 1H15: 94.3%
Full operation: 4Q15
Subsidiaries
$10
$16
$47
$202
$13
$23
$52
$59
Gas Transportation
Electricity Distribution
Gas Distribution
Electricity Transmission
EEC4.0% TGI
6.0% Contugas
3.0%
Cálidda14.0%
Trecsa5.0%
EEBIS GTM/PE3.0% EEB Trans.
65.0%
Capex by Company (2Q’15)
$1
$11
$18
$52
$248
$6
$19
$82
$58
$199
Gas Distribution
Electricity Distribution
Electricity Transmission
Gas Transportation
Electricity Generation
Promigas3.2%
Gas Natural0.4%
REP5.5%
Codensa15.8%
Emgesa75.1%
Capex by Company (2Q’15)
(COP mm)
2Q 2015
2Q 2014
(COP mm)
2Q 2015
2Q 2014
On-going projects: Nueva Esperanza, Norte
Concluded first stage of Public Lightning
Modernization project
Started Bacatá Substation operations
(0.5 MW)
Sep 14 Nov 14 Jan 15 Feb 15 Apr 15 Jun 15 Jul 15 Sep 15
COP1,000
COP1,100
COP1,200
COP1,300
COP1,400
COP1,500
COP1,600
COP1,700
COP1,800
COP1,900
0
5,000
10,000
15,000
20,000
25,000
EEB Shares Traded ('000) Empresa de Energia de Bogota (EEB) COLCAP (Indexed to EEB Share Price)
MSCI EM LatAm (Indexed to EEB Share Price) S&P 500 (Indexed to EEB Share Price)
11
Historical Share Price Evolution – Last 12 Months
Colombia
Colcap
• Ticker EEB: CB
• As of September 24, 2015 EEB’s market capitalization was USD5.2 Billion
• The stock is part of COLCAP, COLEQTY and COLIR
• Target Price as of September 24th, 2015 was COP1,839(1)
Potential upside return: 4.5%
Track Record of Creating Value – Share Price
Appreciation 4
EEB’s shares have outperformed the Colcap, MSCI EM LatAm and the S&P 500
over the last year providing stable returns in a volatile market environment.
Source: Factset as of September 24, 2015.
(1) Average target price calculated as the average of the following brokers: Credicorp: COP1,810; BTG: COP1,820; Gobal Securities Colombia: COP1,900;
Asesores en Valores: COP1,740; Corredores Asociados: COP1,940; Ultrabursatiles: COP1,850 & Valores Bancolombia: COP1,810.
MSCI EM
LatAm
S&P 500
(6.0%)
(-3.3%)
(-11.1%)
(-32.7%)
$34.0
$82.0
$34.9 $44.0
$64.3
$119.9
1Q 10 4Q 10 1Q 11 1Q 12 1Q 13 1Q 14 4Q 14
12
$98
$354
$571
$157
$391 $438
$577
$369
$138 $143
$368
$165
$228
$307
$460
$258
141%
40%
64%
105%
58% 70%
80%
58%
$0
$100
$200
$300
$400
$500
$600
$700
0%
20%
40%
60%
80%
100%
120%
140%
160%
2008 2009 2010 2011 2012 2013 Ene-Oct 2014 Avg 2008-2014
Net Profit Dividends Value Dividend Payout + Including Released Reserves
(COP / Share)
Source Company filings.
(1) The values of years prior to 2011 dividend were adjusted split 100:1, which applies the 20.06.11 shares. Outstanding shares of November 11: 9,181,177,017.
(2) EEB decreed no dividends in 1Q 11 due to an anticipated close of the financial statements.
$0.04 $0.02 $0.02 $0.03 (USD) $0.02 $0.05
(USD mm)
Track Record of Creating Value – Dividends Paid 4 EEB receives a stable flow of dividends from subsidiaries with dividend
policies that promote maximum payout ratios.
Dividend Yield Dividends per Share(1)(2)
Dividend Payout Ratio Evolution
(COP / Share)
--
$1,190
$1,745
$1,175 $1,270
$1,535 $1,700
$1,436
2.9%
4.7%
3.0% 3.5%
4.2%
7.1%
4.2%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2010 2011 2012 2013 2014 2015 Avg 2010-2015
Closing Share Price at the End of the Previous Year in COP Dividend Yield
TGI Bond 9.5%$750 mm
Liability Management EEB Bond 6.125%
$610 mmRe Opening EEB Bond
$139 mmTRECSA Loan
$87 mm
Cálidda Bond 4.375%$320 mm
IELAH SyndicatedLoan
$645 mmCAF Loan $100 mm
EEB Bond 8.75%$610 mm
Re-IPO$415 mm
Liability Management TGI Bond 5.7%
$750 mm
Contugas Syndicated Loan
$310 mm
Contugas Addition $24 mm(1)
2007 2008 2011 2012 2013 2014
$596 mm
Local AAA
Fitch BBB; stable
S&P BBB-; stable
Moodys Baa2; stable
$460 mm
Local AAA
S&P BBB-; stable
Fitch BBB-; stable
Moodys Baa3; neg
13
Transactions Executed in the Capital Markets
Outstanding Bonds
Controlled Subsidiaries Non-Controlled Subsidiaries
Issuer Baa3 BBB- AAA (Col)
$749 mm
EEB 2021
Moody’s Baa3, positive
S&P BBB-; stable
Fitch BBB; stable
$750 mm
TGI 2022
Moody’s Baa3; stable
S&P BBB-; stable
Fitch BBB; stable
Issuer
Baa3
BBB-
BBB
$320 mm
Cálidda 2023
Moody´s Baa3; stable
S&P BBB-; stable
Fitch BBB-; stable
Issuer
Baa3
BBB-
BBB-
$1,655 mm
Local AAA
S&P BBB-; stable
Fitch BBB-; stable
$450 mm
Local AAA
$556 mm
Local AAA
Fitch AAA; stable
$487 mm
Local AAA
$270 mm
Local AAA
Continued Access to Financial Markets to Fund
Expansions 5
EEB has successfully accessed the debt and equity capital markets in
recent years, helping finance important investments.
Source: Company filings.
(1) An additional USD8 mm will be disbursed during 2015.
(USD mm)
(USD mm)
A Regional Leader in the Energy Sector
Strong Shareholders and Partners
14
6
EEB has strong relationships with its shareholders, including the
Government of Bogotá, as well as with its partners (e.g. Endesa, Gas
Natural, ISA, etc.)
Ownership Structure – June 2015 Key Partners (2014)
Bogota D.C.76.28%
Ecopetrol3.03%
Corficol3.56%
AFPs14.05%
Retail Investors
3.08%
Shareholders Composition (Post Ecopetrol Phase I)
Source: Company filings.
20 million clients
25 countries
USD32,819 mm revenues
2 million clients
4 countries
USD994 mm revenues
9 countries
USD1,959 mm revenues
61 million clients
40 countries
USD97,266 mm revenues
Financial Highlights
$1,806,889
$1,082,047$1,279,394
$1,775,908
$2,572,071
$2,183,325
2010 2011 2012 2013 2014 2Q ´15 LTM
$932,435
$1,421,664$1,585,105
$1,958,521
$2,305,548
$2,763,536
2010 2011 2012 2013 2014 2Q ´15 LTM
$268,287
$550,659 $558,518$607,965
$790,168
$1,276,416
2010 2011 2012 2013 2014 2Q ´15 LTM
Consolidated Financial Results
16
Source: Company filings.
Note: Figures for the years 2006–2014 are presented under ColGaap standards. For 2Q15 LTM are presented under IFRS. LTM IFRS figures are estimated and preliminary,
subject to changes and independent auditor’s revision.
Operating Revenues Operating Profit
(COP mm) (COP mm)
Consolidated Adjusted EBITDA Net Income to Common Shareholders
$732 $896 $1,016 $964 $1,069 (USD mm)
(COP mm) (COP mm)
$487
$557 $724 $922 $1,075 (USD mm) $944 $157 $391 $438 $410 (USD mm) $571
$283
$1,092,944
$305,294
$690,701
$843,560
$980,855
$1,233,885
2010 2011 2012 2013 2014 2Q ´15 LTM
$316 $316 $330 (USD mm) $140
$845
$494
$477
EEB has exhibited sound growth rates in terms of revenues and operating
profit.
Lower net income
due to Emgesa,
Codensa and Gas
Natural declaring
extraordinary
dividends at the
end of 2010
based on partial
year results
(COP mm)
Evolution of EBITDA
17
Source: Company filings.
Note: Figures for the years 2006–2014 are presented under ColGaap standards. For 2Q15 LTM they are presented under IFRS.
LTM IFRS figures are estimated and preliminary, subject to changes and independent auditor’s revision. Final comparable figures will be available as of December 31, 2015.
(1) Normalized for timing differences in dividends declared and paid. 2010 excludes dividends declared based on an early close of Gas Natural, Emgesa and Codensa’s financial
statements. These figures are included in 2011, when such dividends would normally have been declared. Anticipated dividends declared by Codensa on first half 2011, were included in
2012. 2014 excludes dividends declared based on an early close of Gas Natural, Emgesa and Codensa’s financial statements. These figures are included in 2015, when such dividends
would normally have been declared.
Normalized Consolidated Adjusted EBITDA(1) Consolidated Adjusted EBITDA 2Q 15 by Subsidiary
$471 $416 $516 $586 $705 (USD mm) $241
Operational EBITDA
Dividends
81% 67%
56% 55%61% 44% 45%
48% 43% 42%19%
33%44%
45%39%
56%55%
52% 57%
58%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2Q 2015LTM
$539,319
$949,599 $934,163
$1,053,942
$1,122,343
$1,369,533
$1,447,335
$1,775,908
$1,958,127
$2,183,325
$819 $922 $818 $849
Consolidated Adjusted EBITDA 2Q 15 by Segment
EEB Transmisión, Trecsa & EEBIS Guate
4%
TGI35%
Decsa/EEC2%
Cálidda, Contugás & EEBIS Perú11%
Emgesa25%
Codensa13%
Gas Natural3%
Promigás3%
ISA, REP & CTM3%
Otros1%
EEB has significantly increased its operational EBITDA
generation
Operational EBITDA has increased from 19% to 58% of Consolidated
Adjusted EBITDA over the last 10 years demonstrating increased strength
of EEB’s controlled assets.
Electricity Generation25%
Electricity Transmission7%
Electricity Distribution15%
Natural Gas Transportation38%
Natural Gas Distribution14%
Other1%
Source: Company filings.
(1) Mainly concentrated on electricity transmission businesses (COL / Overseas).
Financial Plan 2013-2019 Investments and Funding Sources
USD mm %
Cash Generation After Dividends 2013-2014 $507 15%
Incremental Debt 2013-2014 1,092 32%
Subtotal 2013-2014 $1,599 47%
Cash Generation After Dividends 2015-2019 523 15%
Incremental Debt 2015-2019 1,297 38%
Subtotal 2015-2019 $1,820 53%
TOTAL 2013-2019 $3,420 100%
USD mm %
Brownfield $878 48%
Greenfield 943 52%
18
64 80
220 229 231 199
21
84 74
148
25
35 36
90
202 143
118
91 85
75
73
880
16
200
$386
$1,213
$792
$344 $316
$274
$94
2013 2014 2015E 2016E 2017E 2018E 2019E
Electricity Colombia Electricity Overseas Natural Gas Colombia
Natural Gas Overseas Services M&A Electricity
M&A Natural Gas
2013 – 2019 Funding Investments EEB Capex Profile – Controlled Companies
(USD mm)
Composition of Investments 2015 – 2018 (1)
19
(4)
$1,543 $1,737 $1,733$2,218
$3,009 $2,9623.4%
6.4% 2.9%
2.2%
0.7% 1.5%
96.6% 93.6% 97.1%
97.8%
99.3% 98.5%
2010 2011 2012 2013 2014 2Q 2015
Total Debt % COP US$
$98 $22
$118
$22
$929
$7
$749 $750
$320
2015 2016 2017 2018 2019 2020 2021 2022 2023
Description of Indebtedness
Net Debt / Consolidated Adjusted EBITDA(1)(2)(3) Consolidated Adjusted EBITDA / Net Interest(1)(2)(3)
Consolidated Debt Composition Debt Maturity Profile
(USD mm) (USD mm)
Source: Company filings.
(1) Covenant associated to this indicator is currently suspended since the bond EEB 2021 has investment grade, granted by three risk rating agencies monitoring the latter. Covenant
established in Offering Memorandum of USD749,000,000 EEB 6.125% Senior Notes due 2021. It includes anticipated dividends.
(2) Only for comparative purposes and due to transition to IFRS, 2Q15 debt metrics have been estimated by adjusting COLGAAP’s last year figures. These figures are subject to change.
(3) Increase is mainly explained by increase of foreign exchange (USD/COP movements).
(4) Syndicated loan acquired by Contugas (USD342 mm) and additional indebtedness incurred by SPV in order to reacquire 31.92% of TGI IELAH (USD569 mm).
Indebtedness in USD increased as a result of TGI’s shares acquisition
(31.92%) through IELAH’s SPV
1.25x
2.33x 2.09x
3.03x
2.41x
4.50x
2Q 14 3Q 14 4Q 14 1Q 15 2Q 15
11.44x
10.22x
11.80x
15.47x 15.83x
2.25x
2Q 14 3Q 14 4Q 14 1Q 15 2Q 15
Overview of Main Investments
EMGESA Company Overview
21
EMGESA is one of the largest generators operating in Colombia with
3,059MW of installed capacity and a market share of ~21%, based on total
electricity generated in 2014.
EMGESA is 51.5% owned by EEB and 48.5% owned by Endesa
Company is set to complete its 400MW “El Quimbo” hydro plant in Huila
department in 4Q15
● At completion, El Quimbo is expected to have required a total investment
of ~USD1,231 mm with the ability to generate ~2,000 GWh per year
Other projects include 4 hydro plants with a total a installed capacity of ~1,070
MW which are expected to generate a total of ~5,400 GWh per year
~93% of all energy produced by EMGESA comes from hydro generation
facilities
Strong growth in underlying cash flows (EBITDA increasing by a 11.0% CAGR
from 2011 – 2014)
Energy Generated (GWh) 13,631
Energy Sales (GWh) 15,773
Installed Capacity (MW) 3,059
Fuel Mix (Based on MW) Hydro – 92.8%
Thermo – 7.2%
Contracted Energy Sales(1) 52%
Dispatch Factor 90.8%
Load Factor 51.9%
Company Overview Summary Financials
Key Operational Statistics (2014) Generation Evolution
12,092
13,294
12,748
13,631
14,119
2011 2012 2013 2014 LTM 2Q 15
(GWh)
(COP mm)
Source: Company filings.
(1) Based on 2014 revenues.
Lower generation due to
lower hydro generation
(-7.2%) caused by low
precipitation in the year
´11 - ´14
Summary Income Statement 2011 2012 2013 2014 LTM 2Q 15 CAGR
Revenues $1,899,062 $2,144,233 $2,397,428 $2,614,475 $2,652,622 11.2%
% Growth 0.7% 12.9% 11.8% 9.1% 1.5% --
EBITDA 1,256,231 1,380,920 1,480,177 1,716,611 1,686,367 11.0%
% Growth 12.9% 9.9% 7.2% 16.0% (1.8%) --
% Margin 66.2% 64.4% 61.7% 65.7% 63.6% --
Net Income 667,755 783,529 870,141 1,005,533 943,793 14.6%
% Growth 16.7% 17.3% 11.1% 15.6% (6.1%) --
% Margin 35.2% 36.5% 36.3% 38.5% 35.6% --
Summary Balance Sheet
Dividends and Reserves
Declared to EEB 80,537 343,894 405,659 822,548 469,834 117.0%
CapEx 290,407 646,645 642,787 872,495 1,138,728 44.3%
Net Debt 1,615,117 1,841,385 2,354,496 2,679,112 3,713,019 18.4%
Net Debt / LTM EBITDA 1.3x 1.3x 1.6x 1.6x 2.2x --
CODENSA Company Overview
22
CODENSA is a leading distribution company in Colombia with a market
share of ~23% and approximately 2.8 million customers.
CODENSA is 51.5% owned by EEB and 48.5% owned by Endesa
Serves nearly 2.8 million customers as of 4Q 14
Reduced energy losses from over 23% in 1997 to 10.2% in 2003 and 7.2% in
2014, its lowest level in company history
Demand expected to continue to grow above national GDP during upcoming
years
Approved project for an additional 600MW of transformation capacity to meet
the growing demand from the north of Bogota and Cundinamarca
Company Overview Summary Financials
Key Operational Statistics (2014) Energy Sales & Growth
12,424
12,972
13,342
13,667 13,765
2011 2012 2013 2014 LTM 2Q 15
(GWh)
(COP mm)
Energy Sales (GWh)
Residential
Other
13,667
33%
67%
Total Customers (‘000s) 2,772
Customer Split:
Residential
Other
89%
11%
Energy Losses (% of Energy Distributed) 7.2%
Source: Company filings.
Losses
Ratio (%) 7.8% 7.3% 7.0% 7.2% 7.2%
´11 - ´14
Summary Income Statement 2011 2012 2013 2014 LTM 2Q 15 CAGR
Revenues $2,986,153 $3,141,800 $3,212,218 $3,438,884 $3,544,350 4.8%
% Growth 7.1% 5.2% 2.2% 7.1% 3.1% --
EBITDA 976,001 1,090,892 1,108,179 1,130,194 1,195,993 5.0%
% Growth (0.8%) 11.8% 1.6% 2.0% 5.8% --
% Margin 32.7% 34.7% 34.5% 32.9% 33.7% --
Net Income 457,664 510,993 535,911 507,321 489,178 3.5%
% Growth (4.7%) 11.7% 4.9% (5.3%) (3.6%) --
% Margin 15.3% 16.3% 16.7% 14.8% 13.8% --
Summary Balance Sheet
Dividends and Reserves
Declared to EEB 237,157 69,624 264,951 460,699 223,795 24.8%
CapEx 306,246 241,801 280,634 373,119 398,421 6.8%
Net Debt 650,350 524,517 545,203 585,979 973,181 (3.4%)
Net Debt / LTM EBITDA 0.7x 0.5x 0.5x 0.5x 0.8x --
TGI Company Overview
23
TGI is one of the two main natural gas transportation companies operating
in Colombia with a ~49% market share based on transported natural gas
volumes.
EEB holds a 68.1% stake in TGI and consolidates the company for financial
reporting purposes
Largest natural gas transporter in Colombia with ~49% market share
Only natural gas transporter in Colombia connecting main sources of supply
(Guajira and Cusiana) with the main consumption centers
Transports gas through a network of 3,957km of pipeline
~89% of its capacity is contracted, with firm capacity contracts extending to the
year 2021, ensuring a stable stream of cash flows
Total Nominal Capacity (MMCF/d) 730
Contracted Capacity (MMCF/d) 647
Average Volume (MMCF/d) 495
Availability Factor (%) 99.9%
Annual Load Factor (%) 62.3%
Gas Pipeline Length (km) 3,957
Company Overview Summary Financials
Key Operational Statistics (2014) Contracted Firm Capacity & Availability
560
604 621
647
671
500
550
600
650
700
2011 2012 2013 2014 LTM 2Q 15
(MMCF; %)
(COP mm)
Source: Company filings.
(1) LTM financials reported in USD and converted at average COP/USD exchange rate of $2,585 and EOP exchange rate of $2,600.
Availability (%) 99.6% 99.9% 100.0% 99.9% 100.0%
´11 - ´14
Summary Income Statement 2011 2012 2013 2014 LTM 2Q 15(1) CAGR
Revenues $626,838 $702,309 $874,645 $960,346 $1,168,320 15.3%
% Growth 12.1% 12.0% 24.5% 9.8% 21.7% --
EBITDA $481,570 $526,721 $674,163 $770,111 $967,278 16.9%
% Growth 12.0% 9.4% 28.0% 14.2% 25.6% --
% Margin 76.8% 75.0% 77.1% 80.2% 82.8% --
Net Income $25,614 $247,680 $130,067 ($102,582) ($152,930) NA
% Margin 4.1% 35.3% 14.9% (10.7%) (13.1%) --
Summary Balance Sheet
Dividends and Reserves
Declared to EEB --- --- --- 440,005 --- NA
CapEx 712,311 332,873 63,967 86,510 83,499 (50.5%)
Net Debt 1,280,496 1,266,880 982,400 1,583,874 $1,440,553 7.3%
Net Debt / LTM EBITDA 2.7x 2.4x 1.5x 2.1x 1.5x --
Appendix
Income Statement
25
Consolidated Income Statement (COP mm)
Source: Company filings.
Note: Consolidated Adjusted EBITDA defined as Revenues, less COGS, less SG&A, less pension interest, less profit in coverage valuation, less non-operational expenses
plus dividends and interest received from related companies, plus provisions, plus paid pensions, plus non operational taxes & contribution.
´11 - ´14
2011 2012 2013 2014 CAGR
Sales $1,421,664 $1,585,104 $1,958,520 $2,305,548 12.8%
Sales Growth (%) 52.5% 11.5% 23.6% 17.7% --
COGS (704,602) (823,680) (1,044,008) (1,234,877) 15.1
Gross Profit $717,062 $761,424 $914,512 $1,070,671 10.5%
Gross Margin (%) 50.4% 48.0% 46.7% 46.4% --
Operating Expenses (166,403) (202,906) (306,547) (280,503) 13.9#NUM!
Operating Profit $550,659 $558,518 $607,965 $790,168 9.4%
Other Adjustments (37,240) (59,405) 25,708 (95,754)
Depreciation & Amortization 159,670 188,816 209,448 261,896
Dividends and Interest Earned 408,959 591,465 932,787 1,615,761 41.0%
Consolidated Adjusted EBITDA $1,082,047 $1,279,394 $1,775,908 $2,572,071 24.2%
EBITDA Growth (%) (40.1%) 18.2% 38.8% 44.8% --
Depreciation & Amortization (159,670) (188,816) (209,448) (261,896) 13.2%
Financial Expense (401,790) (381,041) (231,251) (365,341) (2.3)
Foreign Exchange Gains (Losses) (28,172) 219,365 (219,917) (630,212) 117.5
Other Gains (Losses) (83,199) (47,212) (79,723) (203,576) 25.1
Earnings Before Taxes & Minority Interest $409,217 $881,690 $1,035,569 $1,111,046 28.4%
Income Taxes (57,339) (74,432) (127,849) (87,901) 11.3
Net Income $351,878 $807,258 $907,720 $1,023,145 30.6%
Net Income Margin (%) 24.8% 50.9% 46.3% 44.4% --
Minority Interest (46,583) (116,557) (64,160) (42,290) (2.4)
Net Income to Common Shareholders $305,294 $690,701 $843,560 $980,855 33.9%
Net Income to Common Shareholders Margin (%) 21.5% 43.6% 43.1% 42.5% --
Balance Sheet
26
Source: Company filings.
(1) Excludes restricted cash.
(2) Short-term debt excludes interests, commissions and other financial payables.
(3) Net Interest Expense defined as interest and financial income minus financial debt interest expense.
Consolidated Balance Sheet (COP mm)
´11 - ´14
2011 2012 2013 2014 CAGR
Cash(1) $873,814 $437,520 $1,284,129 $1,457,928 13.7%
Investments & Equivalents 71,598 219,284 364,035 356,710 49.4
Total Cash & Equivalents $945,412 $656,804 $1,648,164 $1,814,638 17.7%
Accounts Receivable 508,762 577,582 642,452 1,439,110 29.7
Other Current Assets 120,549 217,144 120,206 130,684 2.0
Total Current Assets $1,574,723 $1,451,530 $2,410,822 $3,384,432 21.1%
Net Property, Plant & Equipment 3,742,040 3,493,970 3,753,482 4,092,176 2.3
Intangible Assets 1,188,786 1,449,770 1,449,770 2,042,472 14.5
Investment in Unconsolidated Subsidiaries 2,066,221 1,767,332 1,810,915 1,896,154 (2.1)
Other Long-Term Assets 5,385,100 6,527,128 7,386,273 7,502,655 8.6
Total Assets $13,956,870 $14,689,730 $16,811,262 $18,917,889 7.9%#NUM!
Accounts Payable $221,956 $290,553 $318,998 $1,480,597 60.7%
Other Current Liabilities 400,073 383,166 288,767 223,638 (13.5)
Total Current Liabilities $622,029 $673,719 $607,765 $1,704,235 28.7%
Total Debt 3,327,389 3,164,070 4,273,262 7,198,231 21.3
Short-Term Debt(2) 240,279 219,474 79,221 34,558 (38.4)
Long-Term Debt 3,087,110 2,944,596 4,194,041 7,163,673 23.4
Other Long Term Liabilities 625,313 654,936 738,173 903,538 9.6
Total Liabilities $5,642,919 $4,492,725 $5,619,200 $9,806,004 14.8%
Minority Interest $1,068,188 1,202,345 1,386,102 512,611 (16.8)
Shareholder's Equity $8,313,951 $8,994,660 $9,805,960 $8,599,274 0.8%
Total Liabilities & Equity $13,956,870 $14,689,730 $16,811,262 $18,917,889 7.9%
Net Debt / Adj. Consolidated EBITDA 2.20x 1.96x 1.48x 2.09x --
Total Debt / Adj. Consolidated EBITDA 3.08x 2.47x 2.41x 2.80x --
Adj. Consolidated EBITDA / Net Interest Expense(3) 4.78x 8.82x 11.06x 11.80x --
Total Debt / Book Capitalization 0.40x 0.35x 0.44x 0.84x --
September 2014 Ricardo Roa Barragan
(Chief Executive Officer)
Mechanical engineer and electro-mechanic technician from
Universidad Nacional de Colombia, specialized in Engineering
Management
Formerly CEO of Transportadora de Gas Internacional
Participated as Board member of Codensa, Emgesa, Gas Natural,
REP Peru, Calidda, Contugas, Trecsa, Andesco and Naturgas,
among other renowned companies
Executive Officers
27
EEB’s Management team is comprised of the following individuals who have
an average of ~20 years of experience in the sector and an impressive track
record of managing growth.
Name & Position Biography Year Appointed
Source: Company information.
November 2013 Felipe Castilla
(Chief Financial Officer)
Civil Engineer from Universidad de los Andes. Obtained a Master
of Science degree from University of Illinois at Urbana-Campaign
(1988) and a postgraduate program in finance from EAFIT (1995)
He also held the position of CFO in REFICAR – Refineria de
Cartagena since January 2008 to February 2012.
October 1997 Ernesto Moreno Restrepo
(Transmission VP)
Electric Engineer from Universidad de los Andes, masters degree
in Marketing from Universidad EAFIT, and MBA from Universidad
del Rosario and master in General Direction of Electronic
Programming from the International Education Institute, Texas,
USA
Transmission VP since 1999
June 2013 Alvaro Torres
(VP Corporate Planning)
Electrical engineer with a master's degree and doctorate in
electrical engineering from the Rensselaer Polytechnic Institute
Consultant, researcher and teacher with extensive bibliographic
and technical production
General Manager of CONCOL
28
El Quimbo will be the first hydroelectric project built by a private company
in Colombia. The project will provide EMGESA with an additional 400MW of
installed capacity.
EMGESA Projects: El Quimbo
Project Overview
El Quimbo is a reservoir located on the Magdalena River, 12
km ahead of the Betánia hydroelectric power plant
● The project has a total area of 8,586 hectares covering 6
municipalities including Gigante, Garzón, Altamira, El
Agrado, Paicol and Tesalia
The hydroelectric project will use Francis turbines with an
installed capacity of 400MW (2 x 200MW)
The plant will generate approximately 2,216GWh per year with
an estimated load factor of 60%
The environmental license was obtained in May 2009 and
works will continue until 2015 when the dam will start
operating
Other considerations:
● El Quimbo will improve EMGESA’s operations since it will
increase its regulation capacity
● The project will provide firm electricity production until
2034 and will cover approximately 8% of the national
demand
● Will ensure the future reliability of electricity supply in
Colombia
Project Footprint
Total Investment: USD1,231 mm
Project Executed: 85%
Full Operation: 4Q15
El Quimbo
Bogotá
Betánia
Source: Company filings.
29
TGI has undertaken an aggressive expansion plan as illustrated by its
portfolio of projects.
TGI Projects
Project Overview Project Footprint
Cusiana
Phase III
Armenia
Loop
Cusiana
Apiay Ocoa
Enhance the capacity of the pipeline compression in the stretch Cusiana
Vasconia, through the provision and operational startup of three new
natural gas compression units
The project will increase capacity by 20 Mmcfd and entails an investment
of approximately USD31 mm
Operational start-up will occur during 1Q 2016
As of today the project progress is at 33.7%
Increase the pipeline’s transportation capacity of Cusiana – Apiay in 32
Mmcfd and the stretch Apiay – Ocoa in 7 Mmcfd
The project will allow supplying the natural gas demand of clients to
thermal generation, residential distribution and industrial consumption
Total investment is ~USD48 mm
Expected operation is expected for the first half of 2017
Increase current transportation capacity by 2.2 mpcd by building a
37.5km loop
Investment of USD18 mm with expected start of operations in 2Q 2017
Source: Company filings.
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. None of Ecopetrol or EEB is under no obligation to update or keep current
the information contained herein.
Each of Ecopetrol and EEB expressly disclaims any responsibility for actions taken or not taken based on this
information. Each of Ecopetrol and EEB does not accept any responsibility for losses that might result from the
execution of the proposals or recommendations presented. Each of Ecopetrol and EEB is not responsible for any
content that may originate with third parties. Each of Ecopetrol and EEB 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.
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
Fabián Sánchez Aldana
Investor Relations Advisor GEB
+57 (1) 3268000 – Ext 1827
Rafael Andrés Salamanca
Investor Relations Advisor GEB
+57 (1) 3268000 – Ext 1675
Felipe Castilla Canales
+57 (1) 326 8000 - Ext 1501
31