Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

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Empresa de Energía de Bogotá - EEB A Regional Leader in the Energy Sector

description

Presentación sobre los programas y proyectos futuros de la empresa para los próximos años.

Transcript of Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Page 1: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Empresa de Energía de Bogotá - EEB

A Regional Leader in the Energy Sector

Page 2: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

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 or financial advice

on 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

on 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.

Page 3: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

EEB Overview Wide energy Portfolio: Network and Services

Focus on natural monopolies

Growth in controlled subsidiaries

Sound regulatory framework

Ample access to capital markets

3

100%*

100%*

Page 4: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Leaders in every market

Electricity transmission

Market share (%)

(Km of 220-138 kV lines )

Electricity transmission

Market share (%)

(Km of lines)

Electricity distribution

Market share (%)

(Kwh)

Electricity generation

Installed Capacity (%)

(Generation)

# 1 Peru

# 2 Colombia

# 1 Colombia

# 2 Colombia

Gas distribution

Market share (%)

(No. clients) 59.0%

Gas transportation

Market share (%)

(Average volume transported) 88.0%

Gas distribution

Market share (%)

(No. clients)

100.0%

# 1 Colombia

# 1 Colombia

# 1 Perú

57.6%

8.22%

26.6%

20.72%

Electricity transmission

Project ongoing

(850 Km L/T and 24 S/E)

# 1 Guatemala

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*Estimated market share once in operation.

Page 5: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Focus on natural monopolies and attractive

energy markets

Page 6: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Strong Presence in Relevant Countries Natural Gas

Source: ANH, MEM, UPME, Concentra

333

417 484

528

950

2009 2010 2011 2012 2015E

Natural Gas Demand - Perú - MMCFD

8.46

7.06 6.63

7.01 6.41

2009 2010 2011 2012 2013

Natural Gas Reserves - Colombia - Tcf

12.00 12.50 12.46

15.38

2009 2010 2011 2012

Natural Gas Reserves - Perú - Tcf

810 860 892 905

1,047 1,083

2009 2010 2011 2012 2013 2016E

Natural Gas Demand - Colombia - GBTUD

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Page 7: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Strong Presence in Relevant Countries Electricity

Source: ANH, MEM, UPME

54,679 56,148

57,157

59,367 60,885

65,125

2009 2010 2011 2012 2013 2016E

Electricity Demand - Colombia - GWh

7,926 8,134 8,473 8,730 8,945 10,064

2009 2010 2011 2012 2013 2016E

Electricity Demand - Guatemala - GWh

27,003

32,314 36,779 37,321

39,669

48,411

2009 2010 2011 2012 2013 2016E

Electricity Demand - Perú - GWh

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Page 8: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Stable and Growing Income*

8 * Total of Operating Revenues per company – aggregated figures for comparable purposes.

Predictability and stability in regulated revenues. 81% of revenues comes from regulated business.

422.4 495.7

605.9

871.6

1,076.2 1,114.4

982.7

2008 2009 2010 2011 2012 2013 2014 3Q

Natural Gas Distribution - USD mm

GAS NATURAL CÁLIDDA TOTAL

1,317.7

1,584.2 1,730.3 1,808.7

2,092.1 1,972.1

1,499.1

2008 2009 2010 2011 2012 2013 2014 3Q

Electricity Distribution - USD mm

CODENSA DECSA EMSA TOTAL

279.6

365.2 401.9

439.1 536.4

578.1

486.9

2008 2009 2010 2011 2012 2013 2014 3Q

Natural GasTransportation - USD mm

TGI PROMIGAS TOTAL

136.2 152.4 162.1 181.5

207.3

288.9

220.4

2008 2009 2010 2011 2012 2013 2014 3Q

Electricity Transmission - USD mm

REP CTM EEB Transmisión TOTAL

Page 9: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Growth through controlled subsidiaries and

Brownfield opportunities

Page 10: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Consolidated Financial Results Evolution EBITDA

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81% 67%

56% 55% 61% 44% 45%

48% 47% 19%

33% 44%

45% 39%

56%

55%

52% 53%

2006 2007 2008 2009 2010 2011* 2012** 2013 2014 IIIQ LTM

Consolidated Adjusted EBITDA & Normalized Dividends (USD Million)

Operational EBITDA Dividends

240.9

471.3 416.4

515.6

586.4

818.5

921.7

705.0

974.6

EEB Transm, Trecsa & EEBIS Gt

2.0%

TGI 39.8%

Decsa/EEC 3.9%

Cálidda, Contugás & EEBIS Pe

7.5%

Emgesa 21.8%

Codensa 13.5%

Gas Natural 3.3%

Promigás 4.5%

ISA, REP & CTM 3.1%

Otros; 0.59%

Consolidated Adjusted EBITDA 3Q 2014 LTM by Subsidiary

Normalized Dividends: *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.** Anticipated dividends declared by Codensa on first

half 2011, were included in 2012.

Page 11: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Ambitious projects under execution

Page 12: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Consolidating the Strategy Controlled Subsidiaries

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Projects Update

EEB Transmission

• Armenia – 64%,

• Tesalia – 77%

• Chivor II Norte – 37%

• SVC Tunal – 83%.

• Bolívar-TermoCartagena – 2.1%

• Sogamoso-Norte-Nueva Esperanza: 5%

• UPME awarded projects: Rio Cordoba

TGI

• La Sabana Compression Station – 91%

TRECSA

• Guatemala’s interconnection System – 76%

Page 13: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

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Consolidating the Strategy Non-Controlled Subsidiaries

Projects Update

EMGESA

• Quimbo Project (400 MW)

• Total investment: USD 1,093 mm

• Execution 3Q-14: 80%

• Full operation: 1H 15

CODENSA

• On-going projects: Nueva Esperanza, Norte, Bacatá Substations

• New and existing demand

• Quality service and continuity

• Control operational risk

Page 14: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Financial Plan 2013-2018 Investments & Funding Sources

Composition of Investments

Brownfields: 70%

Greenfields: 30%

14 OM: Offering Memorandum of USD.749,000,000 EEB 6.125% Senior Notes due 2021

As of September 2014 is already executed and compromised

USD 2,200 Mm (29%)

2013-2018 Funding Sources USD Millons

Cash Generation 1,700 Financial Debt 3,320

Third Parties (Contributions of Capital) 2,480

TOTAL 7,500

Compromised Resources (29%) 2,200

Resources that will be compromised

2014-2018 5,300

1.60 1.48 1.39 1.25

2.33

4.5

3T - 13 4T -13 1T - 14 2T -14 3T -14

Net Debt / Consolidated Adjusted EBITDA

9.10

11.06 10.96 11.44

10.22

2.25

3T - 13 4T -13 1T - 14 2T -14 3T -14

Consolidated Adjusted EBITDA/Interest

1.60 1.48 1.39 1.25

2.33

4.5

3T - 13 4T -13 1T - 14 2T -14 3T -14

Net Debt / Consolidated Adjusted EBITDA

9.10

11.06 10.96 11.44

10.22

2.25

3T - 13 4T -13 1T - 14 2T -14 3T -14

Consolidated Adjusted EBITDA/Interest

1.60 1.48 1.39 1.25

2.33

4.5

3Q - 13 4Q -13 1Q - 14 2Q -14 3Q -14

Net Debt / Consolidated Adjusted EBITDA

9.10

11.06 10.96 11.44

10.22

2.25

3Q - 13 4Q -13 1Q - 14 2Q -14 3Q -14

Consolidated Adjusted EBITDA/Interest

Page 15: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Access to Capital Markets

Page 16: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Access to Capital Markets

GEB Transactions

USD Million

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EEB

Baa3

BBB-

BBB

TGI

Baa3

BBB-

BBB

CÁLIDDA

Baa3

BBB-

BBB-

7.1 106.8

25.2 139.5

25.0

974.6

7.1

749 750

320

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Debt Maturity Profile- GEB USD million

Page 17: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

EEB Share Performance

Ticker EEB:CB

As of September 30th, 2014 EEB’ market capitalization was USD 7.3 Billion

Trading volume tripled after the Equity Offering Nov 2011.

The stock is part of COLCAP, COLEQTY and COLIR

Average Target Price As of 3Q 2014: USD 0.96 COP 1,943

EEB Share Performance 3Q 2013 – 3Q 2014

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Page 18: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Creating Value to shareholders

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0.017 0.016 0.017

0.043

0.018

0.025

0.033

1Q 08 1Q 09 1Q 10 1Q 10 1Q 11* 1Q 11 1Q 13 1Q 14

Dividends per Share - USD

0.58

0.91

0.60

0.72 0.80

0.72

6.9%

0.0%

3.0% 3.5%

4.2%

3.5%

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2010 2011 2012 2013 2014 Avg 2008-2013

Dividend Yield Evolution

Closing Share price at the end of the year USD Dividend Yield

97.7

353.8

571.0

157.1

390.6

437.8

334.7

91.8 142.6 368.0 109.0 228.3 306.5 207.7

94%

40%

64% 69%

58%

70% 62%

141%

40%

64%

105%

58%

70% 68%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

0%

20%

40%

60%

80%

100%

120%

140%

160%

2008 2009 2010 2011 2012 2013 Avg 2008-2013

Evolution Dividend Payout Ratio (USD Mllion)

Net Profit Dividends Dividend payout on last year profit Dividend payout + Including realeased reserves

Page 19: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Financial Highlights

Page 20: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

353.8

571.0

157.1

390.6

437.8 461.8

2009 2010 2011 2012 2013 3Q 2014

Net Income (USD Millions)

203.6

140.2

283.5

315.9 315.5 301.0

2009 2010 2011 2012 2013 3Q 2014

Operating Profit (USD Millions)

455.3 487.2

731.8

896.4

1,016.4

842.0

2009 2010 2011 2012 2013 3Q 2014

Operating Revenues (USD Millions)

515.6

944.0

557.0

723.5

921.7 974.6

2009 2010 2011 2012 2013 3Q 2014

LTM Consolidated EBITDA (USD Millions)

Consolidated Financial Results

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Page 21: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

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

[email protected]

Nicolas Mancini Suarez

Financing and Investor Relations Manager GEB

+57 (1) 3268000 - Ext 1536

[email protected]

Rafael Andres Salamanca

Investor Relations Advisor GEB

+57 (1) 3268000 – Ext 1675

[email protected]

Felipe Castilla Canales

Chief Financial Officer - GEB

+57 (1) 3268000

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Page 22: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

ANNEXES

Page 23: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

New parent company

Transformation

Private and

vertically integrated

company serving

the market of

Bogotá.

EEB acquires 40% of REP’s (2002) and CTM

(2006) stocks.

Contugas is constituted in Peru (2008)

Through DECSA, EEB acquires EEC (2009)

TRECSA is constituted in Guatemala (2009)

Capitalization of Citi Venture Capital International

CVCI in TGI for USD 400 million (2010) for expansion

Acquired control of Calidda in Peru and a minority

shareholding in Promigas Colombia (2011).

Foundation

Growth Bogota district acquires

100% of the company

Capitalization Endesa: separation of

generation (Emgesa) and distribution

(Codensa) businesses

Public-private model

EEB acquires Transcogas (2005) and

Ecogas (2007). Today, the two

companies are merged.

To acquire Ecogas, EEB and TGI

issue bonds in international markets

by USD1,360 million (2007)

Annex: Over than 100 year of energy

2002 2006 1997 1959 1896 2012-2014 2009-2011

Internationalization

Diversification

EEB continues its expansion in

Transmission Colombia

(UPME Projects): 2012:

Armenia/Alferéz/Tesalia; 2013:

Norte, Chivor II and SVC

Tunal; 2014: Second

Transmission Line Bolívar -

Cartagena 220 kV, Sogamoso

- Norte – Nueva Esperanza

500 Kv, Substation Rio

Cordoba 220 kV

EEB acquired 31.92% of TGI

(2014) owned by The Rohatyn

Group, (formerly CVCI)

amounting USD 880 million.

CONTUGAS, inaugurated the

Ica Regional Pipeline (2014),

Southern of Perú contributing

to the massification of natural

gas in Peru. EEB’s investment

reached USD 345 million.

TRECSA energized four new

transmission substations San

Agustín, Pacific, La Vega II

and el Rancho in Guatemala

Expansion

2002 2006 1997 1959 1896 2012-2014 2009-2011

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Page 24: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Annex: Shareholders and BoD

• Gustavo Petro Urrego Major of Bogotá

• Fernando Arbeláez Bolaños Economist

•Ricardo Bonilla González Secretary of Finance at Bogotá’s

Mayoralty

• José Orlando Rodríguez Guerrero General Manager at Terminal de

Transporte de Bogotá

• Guillermo Alfonso Jaramillo Former Secretary of Government at

Bogota’s Mayoralty

• Guillermo Perry Rubio Former Finance Minister and former

Mining and Energy Minister

• Mauricio Cabrera Galvis Consultant Economics & Investment

Banker

• Gustavo Ramírez Galindo Investment VP at Corficolombiana

• Claudia Castellanos Rodríguez Marketing VP at ECOPETROL

Independent Members

*Shareholding as of Septemeber 30th, 2014

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Shareholders Shares (Mill)

Particip %

BOGOTÁ D.C 7,003 76.28%

ECOPETROL 631 6.87%

CORFICOLOMBIANA 327 3.56%

AFPs 877 9.56%

RETAIL INVESTORS 342 3.73%

TOTAL 9,181 100.0%

BOGOTÁ D.C 76.28%

ECOPETROL 6,87%

AFPs 9,56%

RETAIL INVESTORS

3.73%

CORFICOLOMBIANA 3,56%

Page 25: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

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Shareholder meeting

Maximum steering mechanism

Corporate Governance Committee

Three members of B.D, at least one

must be independent

Board of Directors

Dictate, control and evaluate the

business policies.

Nine members, three independent

External controls

Tax audit,

External audit,

Specialized audits,

Comptroller of Bogotá,

President

Elected for a term of 4 years and may be reelected and removed freely

Global responsibility

Committee

Approval of material Affairs

within the framework of sustainable

management

Audit Committee

Consisting of the three independent

members of the B.D.

Presidency

Committee

Policies, guidelines and

decisions related to

administrative,

economic and financial

management

Procurement

Committee

Analysis of

contractual

processes and

recommendations

to the Presidency

Committee

Annex: Corporate Governance and Transparency

Page 26: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Colombia

Perú

Guatemala

Peruvian Government restructured

electricity sector in 1992 and privatized

some of the most important electrical

companies

Transmission system is run by private

companies and their remuneration is

guaranteed through concession contracts

The rates for the transport and distribution

of natural gas are set according to the

conditions of the concession for an initial

period and then periodically determined

based on VNR of the investments made

and projected

Independent regulators: OSINERGMIN,

COES, INDECOPI, MINAM-OEFA

Annex: Sound Regulatory Framework

Regulatory based on the General Law of

electricity of 1996 framework

Regulation example to the rest of Central

America due to their flexibility and approach

with the investor

The MEM is responsible for energy policy

and the CNEE is responsible for regulating

the subelectricity sector

Regulatory framework in force since 1994

Regulation (CREG), planning (UPME) and

control and surveillance (SSP and SFC)

independent agencies.

Laws 142 and 143 of the year 1994, awarded

to the CREG functions of regulation of

monopolies in the public service when

competition is not possible, and in all other

cases, to promote competition between those

who provide public services

CREG implemented objective methodology

for: i) meet the demand under the criteria of

economic and financial viability and ii) ensure

an efficient, safe and reliable operation

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Page 27: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Annex: Outstanding Bonds

USD 749 mm

Bond

Local AAA

Moody’s Baa3, positive

S&P BBB-; stable

Fitch BBB; stable,

USD 750 mm

Bond

Moody’s Baa3; stable

S&P BBB-; stable

Fitch BBB; stable EMGESA – USD 1655 mm

Local AAA

S&P BBB-; stable

Fitch BBB-; stable

Promigas – USD 487 mm

Local AAA

ISAGEN – USD 460 mm

Local AA+

External BB+

ISA – USD 596 mm

Local AAA

Total USD 6,293 mm

USD 320 mm

Bond

Moody´s Baa3; stable

S&P BBB-;stable

Fitch BBB-; stable

Natural Gas – USD 270 MM

Local AAA

Codensa – USD 556 mm

Local AAA

Fitch AAA; stable

CTM Perú – USD 450 mm

Local AAA

Controlled Subsidiaries Non-Controlled Subsidiaries

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Issuer

Baa3

BBB-

BBB

Issuer

Baa3

BBB-

BBB-

Issuer

Baa3

BBB-

BBB-

Page 28: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Annex: 81% of revenues comes from regulated

business

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

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Services

Services

Page 29: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Annex: Acquisition and expansion projects

Transaction

In 2012 and 2014, 4 projects were awarded to EEB valued at 309 mm, which consists in building transmission assets including; SVC Tunal (SVC Tunal

CREG/UPME), Second Transmission Line Bolívar - Cartagena 220 kV, Sogamoso - Norte – Nueva Esperanza project, as well as Armenia, Alferez,

Tesalia ,Chivor II Norte and Substation Rio Cordoba 220 kV

EEB constituted the partnership Transportadora de Gas Iberoamericana S.L., in order to conclude the transaction to purchase the 31.92% stake owned

by The Rohatyn Group in TGI, and include as its object, activities that allow the management and administration of securities representing the equity of

corporations and other entities.

On the 2nd of July 2014, EEB closed the acquisition of 31.92% of TGI shares by means of acquiring a SPV Inversiones en Energia Latino America

Holdings, S.L.U., IELAH at the head of which, The Rohatyn Group maintained its investment in TGI.

Results

On April 4, 2014, EEB exercised its right to buy and acquired 99.97% of TGI amounting USD 880 million.

The three expansion projects (Guajira, Cusiana phase I and II) are already in operation in increased the carrying capacity by 53%.

On July 1st 2014. TGI announced the acquisition of 7,78% of the shares of Oleoducto al Pacífico, which is a project aiming to transport heavy crude oil

from the Llanos Orientales to Buenaventura, in order to export to markets in the Asian Pacific region and the US West Coast.

On July 7, TGI inaugurated its compression plant, which increases gas transport capacity in La Sabana natural gas pipeline. This investment amounted

to COP$84 billion.

EEB (51%) and Codensa (49%) through Decsa, acquired 82 percent of EEC in 2009

Began a process of restructuring of the company which has made it possible to double the EBITDA margin

The Board of Directors approved the demand growth project which aims to recover lost customers and retaining strategic customers who

may be endangered by the level of their consumption

In June, Cálidda started connecting residential clients into a new district named Santa Anita. As a result, Cálidda is now present in 15

districts for the Residential & Commercial segment.

Cálidda is successfully executing its expansion plan in Peru. As of 3Q 2014 Cálidda’s client base has reached 250,000 customers, and

hopes to reach a total of 450,000 by 2016 and 1million by 2020.

100%

99.97%

51%

60%

It is the most important energy infrastructure of Guatemala project: approx. 850 km of lines that cover the entire country

Expected to be 47% market share (line km) by 2014.

TRECSA energized four new transmission substations San Agustín, Pacific, La Vega II and el Rancho in Guatemala

98%

75%

Area of influence will be of highest growth in natural gas demand in the coming years due to the steel, petrochemicals and agro-

industrial projects that are being developed in the region

On April 2014, CONTUGAS, inaugurated the ICA Regional Pipeline, Southern del Perú contributing to the massification of natural gas in

Peru. EEB’s investment reached USD 345 million.

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Page 30: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

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61 million clients

40 Countries

USD 94,418 mm sales

20 million clients

25 Countries

USD 24,944 mm sales

2 million clients

4 Countries

USD 127 mm sales

9 Countries

USD 2,465 sales

Annex: World Class Partner

Page 31: Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá

Annex: Relevant Macroeconomic Indicators

*Inflation YTD as of June 30th, 2014

Sources: Banco de la República, DANE, Banco de Guatemala, INEI

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