GRUPO ENERGÍA DE BOGOTA - PowerPoint Presentation

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GRUPO ENERGÍA DE BOGOTAFirst Quarter 2014 Results

May

14th, 2014

DisclaimerThe 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.

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Table of contents

EEB Overview and Key Updates – 1Q 2014

Expansion

P

rojects Review

TGI 31.92% stake acquisition

Financial Review – 1Q 2014Questions and Answers

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EEB OverviewTransportation and distribution of energy with involvement in other areas in the energy sector

25.0%

Electricity

Transmission

Generation

40.0%

40.0%

1.8%

95.7%*

51.5%

2.5%

Distribution

51.5%

16.2%

51.0%*

82.0%*

Distribution

Transport

Gas Natural

75.0%*

68.1%*

99.9%*

*

Controlled

by

EEB

15.6%

60.0%*

100%*

Services

4

100%*

EEB Movilidad

Key Updates

Acquisition of 57.6% of ISAGEN

On February 27

th

2014, the

BoD

confirmed its interest of participating in the bid to acquire 57.6% of Isagen shares offered by the National GovernmentEEB participation will seek to acquire control. 

EEB is waiting SIC’s decision to the appealing made on February 21.

On March 27th EEB

has

prequalified to participate in the process

The process is standstill pending on the high courts decision.

Dividends Decreed:

On March 27

th

, EEB Shareholders’ Meeting approved payment of dividends of

COP 590,530

million (USD 300.4 mm), equivalent to 70% of profits generated during 2013.

COP 64.32 per share, three installments: May 27

th / June 26th / November 27thContugas inagurated the ICA regional pipelineBefore the deadline,

Contugas

, jointly with the Ministry of Energy and Mines and Enbridge Technology Inc., an international inspector, on

April 30th

, signed the final act of testing. This is a requirement for the Commercial Operation set forth in concession contract, which certifies that the infrastructure has met the applicable standards.At the closing of March 2014, the company has over

14,700

customers presently receiving gas (Of the 26,158 total

sales in households)

.At the end of February 2014, the first large user of natural gas was enabled (Textiles del Valle). Subsequently, a GNV station has been enabled as well as a Paper mill. At the beginning of 2Q 2014, some fishing companies and 2 steelmakers will be connected and serviced (among other large customers

).

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Sogamoso - Norte - Nueva Esperanza Project EEB was awarded the Sogamoso-Norte-Nueva Esperanza transmission project

whose revenues have a NPV amounting

USD 171

mm.The

project includes the construction, operation and maintenance of the Norte substation (500kW) and the transmission line

Sogamoso

-Norte-Nueva Esperanza (500 kv).This project is part of the Expansion

Plan

UPME

2013-2027

Acquisition of 23.6% of

TGI

On

December 11th 2013

, EEB’s Board of Directors decided to exercise EEB’s Right of First Offer (ROFO) under the Shareholder’s Agreement for the acquisition of a 31.92% stake in TGI, after the end of the lock-up period (3 years).Offer was submitted on

March 25th 2014The offer, for a value of USD 880 million, was accepted by The Rohatyn Group (formerly CVCI) on

April 3rd 2014

,

This transaction, which is part of EEB’s USD 7.5 billion 2013-2017 investment plan will generate positive value for EEB´s

shareholders.Mobility Projects (Electric transportation projects)On December 11th 2013, EEB’s Board of Directors authorized the Company to participate in electric transportation projects that incorporate an important electrical component , once profitability and convenience are assessed.On April 14th Empresa de Movilidad de Bogotá SAS ESP

was established with the following objectives:

Generation, distribution and sale of electric energy to massive transportation systems of passengers, freight and other modalities.

Planning, preparation of studies and designs, supply, construction, installation, supervision, operation and maintenance of electric and gas infrastructure.

Manage the electrical component and gas projects of massive transportation systems.Key Updates6

2. Expansion Projects Review

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Guatemala

Expansion Projects

Controlled Subsidiaries

Natural Gas

Transportation

CAPEX

Exec

. 1T2014:

USD 8.75 mm

Construction

: Sabana

Station

: 48.8%

Planification

: Regional

Syst

. (4Q 14)

Electricity

Transmission

CAPEX :

Executed

2014:

USD

8.88 mm

Total

Investment: USD 308 mmNatural Gas DistributionCAPEX Exec. 1T2014: USD 16.24 mm

Total

investment

: USD 500 mmBy the end of

2016 it is expected to have 455,000 customers connected.Natural Gas Transportation and Distribution CAPEX: Executed 2014: USD 25.02 mmTotal inverstmet: USD 358 mm

Under construction:1Q 14: 92%.

Full operation

2Q 14

Electricity Transmission CAPEX Exec. 1T2014: USD 11.02 mmTotal Investment: USD 376 mm

Started

operation

(partially): 4Q13Under construction:1Q 14: 67

%.Delivered 2015 Engineering and ServicesCAPEX: Executed 2014: USD 0.51 mmSugarmills Investment: USD 44 mmUnder construction IQ 14: 34%

Full operation 2014-15

Colombia

Perú

Under

Construction

1Q 14:

Armenia –

54.9%

Tesalia

– 77%

Chivor

II Norte –

22%

SVC Tunal –

38.5%

CAPEX Executed 1Q 2014

Controlled Subsidiaries

USD 74.49 Millions

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Expansion ProjectsNon Controlled SubsidiariesElectricity Generation

CAPEX Exec. 2014:

USD 102.12 mm

Quimbo Project (400 MW)

Total investment: USD 1,093 mm

Exec 2013: USD 279 mm

Accum. Exec: USD 564.8mmExecution 1Q 14: 64.8%

Electricity

Distribution

CAPEX Exec. 2014:

USD 20.5 mm

Projects executed:

New and existing demand

Quality service and continuity

Control operational risk

Electricity Transmission CAPEX Exec. 2014:

USD

24.27 mm

Extensions and new concessions; 2013- 2014

Electricity Transmission CAPEX Exec 2014: USD 14.38 mmExtensions and new concessions; 2013 - 2014CAPEX Executed 2014 Non Controlled Subsidiaries USD 176.9 Millions

Natural Gas Transportation and Distribution

CAPEX Exec.

2014:

USD 13.98 mmTotal investment: USD 137 mmLiquefaction Plant: Invest. USD 34 mm Pipeline Mamonal – Sincelejo: USD 70 mm

Colombia

Perú

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Natural Gas

Distribution

CAPEX Exec.

2014:

USD

1.66 mm

3. TGI’s Stake Acquisition10

Acquisition of 23.6% of TGI* Bank charges and reserve funds are not included. ** Transaction payment

will

be done to IELAH Luxembourg

SPV

1/ Trust

USD 264* MMEquity

EEB S.A. ESP

IELAH

Inversiones en Energía Latinoamérica Holding S.L.

USD 880 MM**

TGI S.A. ESP

SPV

2

TGI

Local Short-

term

Debt

/ Cash on BalanceUSD 264* MM

Banks 2019

USD 616* MM

DebtColombiaSpain

Phase

1

Phase

3ColombiaIELAHInversiones en Energía Latinoamérica Holding S.L. SPV 1SPV 2

Spain

Phase

2

11Total offer amount: USD 880 million

Source: Company

information.

Note: Ratios calculated in local currency

Total Debt Includes MM USD 616 associated to EEB Financed Acquisition

Total Debt

(1)

/ EBITDA

(x)

Key Updates –Credit Metrics Impacts

Total Net Debt

(1)

/ EBITDA

(x)

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Ratings

Threshold

: 4.0: 1.0

Cash available will allow to reduce total debt

Moody’s

Fitch

Ratings

S&P

EEB

Affirmed

Baa3 /

Outlook

Stable

Affirmed

BBB- / Outlook

Stable

Affirmed

BBB- / Outlook

Stable

TGIAffirmed Baa3 / Outlook Stable

Affirmed

BBB- / Outlook

StableAffirmed

BBB- / Outlook Stable

Following EEB's announcement to increase its majority stake on TGI, the actions taken by the rating agencies are as follows

:

Banks offers for funding the transaction were already received this week.

4. Financial Review – 1Q 201413

Consistent Financial PerformanceConsolidated Results - Operational14

Operating Revenues (+20.6%):

Growth

is explained mainly

by increase of revenues

in

natural

gas business:

Calidda

: new connections (Residential and Commercial) and higher volume distributed

TGI: tariff scheme in force and

Cusiana

Phase

II

Operating Profit (+26.8%):

O

perational

costs and expenses showed a moderate increase due to:

TGI operational costs and expenses decreased by 12.1%,

mainly due to a decrease in personnel services and general services and fuel gas

costs.Contugas and Cálidda show increases mainly in costs related to fees, maintenance activities in the gas network and the cost of internal installations by third parties

At the end of 1Q 2014 operational Profits from controlled subsidiaries participate

with

51%

of the total

adjusted

EBITDA, compared to 15% of participation in 2006.

Dividends from

non-controlled companies participates with the remaining

49%

EBITDA

Evolution

Consolidated

Results

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.

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Consistent Financial PerformanceConsolidated Results – Non Operational

Dividends:

Increase

of

COP 47,715 million

in terms of decreed dividends in favor of EEB, particularly those from

Emgesa

,

Codensa

and Gas Natural.

Foreign Exchange Account:

The r

evaluation

of

COP had a positive impact on the foreign exchange account, as

a result of updating financial obligations of the Group denominated in USD, which is only for accounting purposes and does not correspond to cash expenditures.

Non Operating Expenses:

Financial Expenses:

Increase

in

COP 10,098 million, due to increase in financial debt in 2013

Calidda

: USD 320 mm bond

Contugas: USD 280 mm syndicated loan (USD 65 mm net) EEB: USD 139 mm, reopening bond 2021.

Net Income :

Increase in 11.2%

* EMSA, ISA, ISAGEN, REP-CTM,

Others

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Consolidated Current Debt Maturity

Profile

– USD MM

Debt Indicators

Consolidated Results

Indebtedness

in

USD

increased as a result of

new debt issuance in 2013.

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Consolidated

Debt

Composition

– USD MM

EEB Share Performance 1Q 2014Ticker EEB:CB

As at

May 13

th, 2014 EEB’ market capitalization

was

USD 7.7 Billion

Trading volume tripled after the Equity Offering Nov 2011.The stock is part of COLCAP, COL20, and

COLEQTY

Average Target Price: COP

1,711

(USD

0.87

)

Dividend Payout Ratio 2013: 70% Avg

2008 - 2013: 79%

Dividend Yield 2013: 3.5% Avg

2008 - 2013:

3.3%

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Questions and AnswersConference Dial-In Numbers:

Conference

ID

45689144Participant Toll-Free Dial-In Number: +1 (877) 359-9508

Participant International Dial-In Number: +1 (224)

357-2393

Participant ITFS Dial-In Numbers:Chile: 12300206168Colombia: 018005180165Perú: 080052957

United Kingdom:

08000288438

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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 1827fsanchez@eeb.com.co

Antonio Angarita

Investor Relations

Officer GEB +57 (1) 3268000 - ext 1546

aangarita@eeb.com.coRafael Andres SalamancaInvestor Relations Advisor GEB+57 (1) 3268000 – ext 1675rsalamanca@eeb.com.co20