August 2013
Strictly Private and Confidential
TGI 1H 2013 results
2
Table of contents
1. TGI overview and history
2. Financial and operating highlights
3. Sizeable expansion projects are w...
1. TGI overview and history
4
Overview
Stable and growing Colombian economy with sound investment environment
Constructive and stable regulatory frame...
Company history
TGI history
Pipeline network
Natural gas reserves
City (population)
References
Highlights
Source: Company ...
2. Financial and operating highlights
7
Solid operational performance
Source: Company information.
Network length
(km)
Capacity
(mmscfd)
Firm Contracted Capacit...
8
Source: UPME and Company information.
(1) As of June 30, 2013.
(2) 46,7% of market share of gas transported directly by ...
9
Stable and predictable cash flow generation
 TGI’s revenues are highly predictable, with approximately 94% coming from ...
10
And long term firm contracts
Source: Company information.
(1) Includes 36 clients.
TGI’s capacity is covered by firm co...
11
Strong and consistent financial performance
Revenues EBITDA and EBITDA margin
Funds from operations (1)
(US$ in million...
12
Financial debt breakdown – Jun. 2013 (2)
Subordination Agreement
 The lender is EEB (major shareholder)
 No repayment...
13
 In May 2013 TGI’s board approved a new organizational structure for TGI with the objective of aligning it with
its st...
14
3. Sizeable expansion projects are well underway
Sizeable expansion projects are well underway
Source: Company information.
Cusiana Apiay San Fernando La Sabana compressio...
16
4. Questions and answers
17
Investor Relations
For more information about TGI contact our Investor Relations team:
http://www.tgi.com.co
http://www...
18
Appendix 1 – EEB Overview
EEB Strategy and Overview
68.1%
25%
15.6%
Electricity
Transmission
40%40%
1.8%
98.4%
Generation
51.5% *
2.5%
Distribution
...
20
Appendix 2 – Economic and industry eviroment
Source: Banco de la República, DNP, MINHACIENDA., Bloomberg
5-year CDS Foreign currency reserves
Real GDP growth and infla...
Strong growth of Colombia’s natural gas sector
Source: UPME and Concentra.
Highlights
 The natural gas industry in Colomb...
Vast reserves of natural gas
Natural gas reserves location
Natural gas
reserves
City (population)
References
0.71 tcfVMM
1...
CAGR: 12 -16
Coast: 7.8% Interior:
1,8%
200
300
400
500
600
MMSCFD
Coast Interior
Strategically located pipeline network
S...
Regulatory framework established
to attract private sector investment
 Law 142 (1994) establishes system
of open entry to...
26
77% of revenues from top tier clients with solid credit ratings, all raised to investment grade in
tandem with sovereig...
Appendix 3 – Shareholders and
management team
(68.05% of TGI)
Leading energy holding company with interests across the electricity
and natural gas sectors in Colombia, ...
29
Ricardo Roa
Barragán
CEO
20  Mechanical Engineering degree from the Universidad Nacional and post-graduate degree in
E...
Disclaimer
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securit...
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Tgi 1 h 13_conference_call

  1. 1. August 2013 Strictly Private and Confidential TGI 1H 2013 results
  2. 2. 2 Table of contents 1. TGI overview and history 2. Financial and operating highlights 3. Sizeable expansion projects are well underway 4. Questions and answers Appendix 1. EEB Overview 2. Economic, industry and regulatory environment 3. Shareholders and management team
  3. 3. 1. TGI overview and history
  4. 4. 4 Overview Stable and growing Colombian economy with sound investment environment Constructive and stable regulatory framework Largest natural gas pipeline system in Colombia Stable and predictable cash flow generation, strongly indexed to the US Dollar Strong and consistent financial performance Experienced management team with solid track record in the sector Expertise, financial strength and support of shareholders Natural monopoly in a regulated environment Strategically located pipeline network
  5. 5. Company history TGI history Pipeline network Natural gas reserves City (population) References Highlights Source: Company information and ANH. 1.19 tcfCenter 2.49 tcfNorth 3.36 tcf Eastern Producers: Chevron Ecopetrol Producers: Ecopetrol & EquionSouth Valledupar (350k) Currumaní (27k) Bucaramanga (1.1mm) Bogota (7.9mm) Neiva (477k) Cali (2.7mm) Pereira (682k) Manizales (430k) Medellin (3.3mm) 0.02 tcf Pipeline owned by TGI Pipeline owned by a third party References BOMT  Owns ~57% of the national pipeline network (3,957 km) and transports 47% of the gas consumed in the country − Serves ~70% of Colombia’s population, reaching the most populated areas (Bogota, Cali, Medellin, Bucaramanga and the coffee region and Piedemonte Llanero, among others) − Has access to the two main production regions, La Guajira and Cusiana/Cupiagua  25% interest in Contugas (Peru) − 30-year concession for natural gas transportation and distribution  TGI was created as a result of the privatization of Ecogás and has experienced remarkable growth since then, under the leadership of its controlling shareholders, EEB and CVCI Villavicencio (384k) 5 Creation of Ecogas 1997 2005 Alienation of Ecogas assets 2006 Ecogás awarded to EEB 2007 Creation of TGI and bond issuance Transfer of 1st BOMT (GBS) and pipelines exchange with Promigas Transfer of 2nd BOMT (Centragas) and CVCI capitalization Cusiana expansion phase I begins operations Subordinated debt is refinanced. 2009 2008 TGI assumes the O&M of owned pipelines 2012 Refinancing of 2007 Bond issue Cusiana expansion phase II begins operations (3Q) TGI assumes the O&M of Compressor stations. Moody´s and Fitch give investment grade rating to TGI 2011 2010 Source: Company information. Ballena expansion begins Operations TGI-Transcogas merger 2013 Standard & Poor’s gives investment grade rating to TGI
  6. 6. 2. Financial and operating highlights
  7. 7. 7 Solid operational performance Source: Company information. Network length (km) Capacity (mmscfd) Firm Contracted Capacity (mmscfd) Transported Volume Gas Losses Load factor (mmscfd) (%) (%) 3702 3529 3774 3774 3957 3957 2008 2009 2010 2011 2012 2013 1H 478 478 548 618 730 730 2008 2009 2010 2011 2012 2013 1H 427 437 485 560 604 628 2008 2009 2010 2011 2012 2013 1H 0.10% 0.20% 0.57% 0.54% 0.52% 0.41% 2008 2009 2010 2011 2012 2013 1H 66.1% 69.1% 71.2% 57.6% 58.9% 59.7% 2008 2009 2010 2011 2012 2013 1H 371 396 422 420 422 436 2008 2009 2010 2011 2012 2013 1H
  8. 8. 8 Source: UPME and Company information. (1) As of June 30, 2013. (2) 46,7% of market share of gas transported directly by TGI. Most of the 15% transported by “Others” is natural gas transported by TGI through the TGI Pipeline System to other pipeline systems.  TGI is the largest natural gas transportation company in the country − Holds 46.7%(2) market share in the Colombian natural gas transportation sector and owns ~57% of the pipeline network  TGI’s extensive pipeline network (3,957 km) allows the Company to take advantage of new business opportunities and participate in expansion projects in different regions  Other industry participants face high barriers of entry to access TGI’s gas transportation market in a cost-efficient manner Natural gas transportation market share (1) Natural gas transported volume (1) (mmscfd) (% of natural gas transported volume) Largest natural gas pipeline system in Colombia TGI has a dominant market position, holding a natural monopoly with high barriers of entry Source: Natural gas transportation companies’ Electronic Bulletin of Operations Source: Natural gas transportation companies’ Electronic Bulletin of Operations TGI 46.7% Promigas 38.3% Others 15.0% 435.8 357.7 43.6 43.5 29.5 12.5 6.1
  9. 9. 9 Stable and predictable cash flow generation  TGI’s revenues are highly predictable, with approximately 94% coming from regulated tariffs that are reviewed al least every 5 years, ensuring cash flow stability and attractive rates of return  Main sectors served by the Company (77(1)% of revenues) present stable consumption patterns (no seasonality)  The Company enjoys excellent contract quality − 100% of TGI’s contracts are firm contracts with an average life of 8,5 years − 82% of regulated revenues are fixed tariffs, not dependent on transported volume (expected to increase with the new regulatory scheme) − Approximately 76%(2) of EBITDA denominated in US Dollars Revenues breakdown (% of revenues) Source: Company information. (1) Includes Distributors, Ecopetrol´s refinery and Natural gas for Vehicles. (2) TGI calculations (3) Ecopetrol accounts for most of this revenue. TGI’s revenues are highly predictable as a result of regulated tariffs and stable consumption Source: TGI as of June 30- 2013 Ecopetr ol 16% Gas Natural 24%Gases de Occiden te 17% EPM 12% Isagen 7% Others 24% By Client Distribut or 59% Refinery 11% Thermal 15% Traders 5% Vehicle 7% Others 3% By Sector Key financial data - Ebitda 196 198 224 261 289 330 2008 2009 2010 2011 2012 LTM Jun 13 US$ in millions – LTM average exchange rate)ues)
  10. 10. 10 And long term firm contracts Source: Company information. (1) Includes 36 clients. TGI’s capacity is covered by firm contracts (average life of 8.4 years) with top-tier clients (1)  In 2008, the Company contracted its capacity on a long term basis, with most of the contracts maturing 2021  TGI has in place a commercial strategy to ensure a timely rollover of the contracts  Retail distributors (regulated users), including Gas Natural, Gases de Occidente, EPM are forced by regulation to have their gas transport needs under firm contracts OTHERS
  11. 11. 11 Strong and consistent financial performance Revenues EBITDA and EBITDA margin Funds from operations (1) (US$ in millions – average exchange rate for each period) Source: Company information Historical Capex (US$ in millions – average exchange rate for each period) (US$ in millions – average exchange rate for each period) (US$ in millions – average exchange rate for each period) (1)FFO calculated as net income plus depreciation, amortization and provisions, adjusted for effect from exchange rate and hedges. On 2012 FFO includes the LM transaction premium~ USD 69 million (one time event) 240 253 295 339 391 435 2008 2009 2010 2011 2012 LTM Jun 13 196 198 224 261 289 330 82% 78% 76% 77% 74% 76% 2008 2009 2010 2011 2012 LTM Jun 13 84.2 96.5 108.1 116.9 132.5 239.7 2008 2009 2010 2011 2012 LTM Jun 13 14 69 174 387 185 19 2008 2009 2010 2011 2012 2013 1H
  12. 12. 12 Financial debt breakdown – Jun. 2013 (2) Subordination Agreement  The lender is EEB (major shareholder)  No repayment of principal allowed before payment of senior debt  Interest can only be paid if there is no default or event of default and if the payment does not trigger any such scenario  Subordinated debt acceleration is not allowed until senior debt is not repaid Source: Company information. Note: Ratios calculated in local currency (1) Interest coverage ratio calculated as EBITDA / Net Interest (2) Senior debt stands for the US$750 million Senior Unsecured Notes due 2022. Subordinated debt stands for intercompany loan with EEB. Strong and consistent financial performance Hedges; 109 mm (9%) Sub debt; 370 mm (30%) Senior debt; 750mm (61%) Total Debt / EBITDA (x) 6.5 5.6 5.4 4.9 4.2 3.9 2008 2009 2010 2011 2012 LTM Jun 13 2.0 2.0 2.1 2.5 4.0 5.5 2008 2009 2010 2011 2012 LTM Jun 13 4.4 3.8 3.7 3.4 3.0 2.7 2008 2009 2010 2011 2012 LTM Jun 13 Total Senior Debt / EBITDA (x) Interest coverage (1) (x)
  13. 13. 13  In May 2013 TGI’s board approved a new organizational structure for TGI with the objective of aligning it with its strategic vision and objectives  The new structure was in part based on the recommendations of a study by CT Partners, an internationally recognized HR consulting firm  TGI’s Board also decided to relocate the company’s headquarters from Bucaramanga to Bogotá  The new organizational structure is as follows: Organizational Structure
  14. 14. 14 3. Sizeable expansion projects are well underway
  15. 15. Sizeable expansion projects are well underway Source: Company information. Cusiana Apiay San Fernando La Sabana compression plant Eje Cafetero branches TGI has additional projects to be implemented in the coming years, which are fully financed Casa máquinas Cuarto contro lVariadores de velocidad Potencia eléctrica Oficina s Venteo Key highlights:  Historically the Apiay region has had a notable oil and gas development • There are a substantial number of oil extraction facilities that operate with gas and whose energy requirements are estimated to increase in the future  The project consists in the construction of a 150 km 20” loop between Cusiana and Apiay and a new 50 km 10” pipeline from Apiay to the San Fernando generation facilities.  Will increase capacity by approximately 70 mmscfd at an estimated cost of US$ 247 million (+/-20%)  Client : Ecopetrol  Engineering and environmental studies underway  MOU signed with Ecopetrol on 2012.  Transportation contract negotiation in process  RFP for EPC expected on 2H 2013.  Expected commercial operation start date: 2015-2016 Key highlights:  La Sabana compression plant is the solution to the needed expansion of the transportation system serving Bogotá and its surrounding area  The project consists in the construction of a compression station that will increase the transportation capacity from 143 to 215 mmscfd  The cost of the station will be approximately US$ 55 million  The compression equipment will use the MOPICO technology, for environmental reasons  Land already acquired  The MOPICO compressor supply contract is under negotiation and will be signed soon.  RFP for EPC already posted.  Site works are expected to begin at the 2H 2013. The station is expected to begin operations during 2014 Key highlights:  Capacity Increase supported by the construction of two loops conected to the existent branches of Armenia and Chinchina:  Armenia Branch: The project consists in the construction of a 37,5km 8” loop, paralel to the existent 6” pipeline that goes from the 20” conexión to the delivery station located in La Tebaida.  Chinchiná - Santa Rosa – Dosquebradas Branch: Construction of a 7.5km 3” loop, paralel to the existing 3” pipeline that goes from the delivery station located at Chinchina to the pipeline that supplies the Municipalities of Santa Rosa and Dos Quebradas.  Expected commercial operation start date: 2016  Estimated cost : US$ 28 million Loop end Loop Start ZARZAL LA TEBAIDA Loop Start Loop End CHINCHINÁ DOS QUEBRADAS SANTA ROSA
  16. 16. 16 4. Questions and answers
  17. 17. 17 Investor Relations For more information about TGI contact our Investor Relations team: http://www.tgi.com.co http://www.grupoenergiadebogota.com.co Santiago Pardo de la Concha CFO +57 (7) 6320002 - ext 2110 santiago.pardo@tgi.com.co Rafael Andrés Salamanca Rodriguez Investor Relations Advisor +57 (1) 3268000 – ext1675 rsalamanca@eeb.com.co Antonio Angarita Investor Relations Officer +57 (1) 3268000 - ext 1546 aangarita@eeb.com.co Sergio Andrés Hernández Acosta Finance Director +57 (7) 6320002 - ext 2450 sergio.hernandez@tgi.com.co
  18. 18. 18 Appendix 1 – EEB Overview
  19. 19. EEB Strategy and Overview 68.1% 25% 15.6% Electricity Transmission 40%40% 1.8% 98.4% Generation 51.5% * 2.5% Distribution 51.5% * 16.2% 51% 82% DistributionTransportation Natural Gas 75% 60% 100% 99.94% *EEB is not the controlling shareholder and is a party to signed shareholder agreements. 40% 25% 68.1% Focus on natural monopolies Ample access to capital markets Ambitious projects in execution Growth in controlled subsidiaries Sound regulatory framework Experienced management and partners Strategy  Transportation and distribution of energy Key facts  Regional leader in the energy sector; major player in the entire electricity and natural gas value chains (except E&P).  Operations in Colombia, Peru, and Guatemala.  More than 100 years’ experience in the sector; founded in 1886.  Largest stockholder is the District of Bogota - 76.2%.  Stock listed on the Colombia stock exchange; EEB adheres to global standards of corporate governance.  The EEB Group is one of the biggest issuers of equity and debt in Colombia.
  20. 20. 20 Appendix 2 – Economic and industry eviroment
  21. 21. Source: Banco de la República, DNP, MINHACIENDA., Bloomberg 5-year CDS Foreign currency reserves Real GDP growth and inflation Foreign direct investment (US$ in billions) (% growth) (%) (US$ in billions) Stable and growing Colombian economy with sound investment environment Despite the recent global economic slowdown, Colombia has experienced positive economic growth and an increase in industrial activity, supported by a steady flow of investment 3% 2% 3% 4% 5% 5% 7% 7% 4% 2% 4% 7% 4% 3% 0% 2% 4% 6% 8% 10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 [e] Real GDP growth Inflation 2 3 2 2 3 10 7 9 11 7 7 13 16 4 - 3.0 6.0 9.0 12.0 15.0 18.0 20002001200220032004200520062007200820092010201120122013 1Q 9 10 11 11 14 15 15 21 24 25 28 32 37 41 -5% 5% 15% 25% 35% 45% -5 5 15 25 35 45 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (e) International reserves Debt as % of GDP 0 100 200 300 400 500 600 700 800 900
  22. 22. Strong growth of Colombia’s natural gas sector Source: UPME and Concentra. Highlights  The natural gas industry in Colombia remained virtually undeveloped until the mid 1970s, when significant discoveries of natural gas reserves in the Guajira basin were made − Since then, the Colombian government has launched several initiatives to promote development in the sector  Natural gas demand has experienced significant growth, reaching an estimated of 848 mmscfd in 2012, as a result of the following factors: − Substitution of natural gas from other more expensive and less environment-friendly fossil fuels − Significant growth in many industrial segments of the Colombian economy − Significant growth of the country’s overall population and GDP  More than 6,6 million residential households, 450,000 vehicles and a great portion of the national industries are served with natural gas  It is expected that local demand for natural gas will continue to increase at an average annual rate of about 4,5% until 2016 − Main growth expected to come from the refinery, vehicle, residential and thermoelectric sector. − Central Colombia (TGI’s region) is less “gassified” than the Atlantic Coast, with higher growth opportunities in the interior of the country Natural gas demand Dec 2012 E Demand by sector Dec 2012 E Expected demand growth by sector (Base 2012 E) (mmscfd) The consumption of natural gas as a fuel source has experienced a significant increase and is expected to continue growing over the coming years (% of total demand) (2012-2016 growth) CAGR: 05-12: 4,2% CAGR: 12-16: 4,5% 637 695 731 723 810 860 783 848 931 1012 2005 2006 2007 2008 2009 2010 2011 2012 2013 2016 Petrochemi cal 2% Industrial - Refinery 42% Residential 23% GNV 8% Thermoelec tric 25% 3.1% -0.2% 0.4% 2.8% 10.5% 20.9% Thermoelectric Petrochemical Industrial Residential GNV Refinery Energy Sources Dec 2010 E Other 3% Coal 11% Natural Gas 24% Hydroelec tric 12%Wood 6% Oil 44%
  23. 23. Vast reserves of natural gas Natural gas reserves location Natural gas reserves City (population) References 0.71 tcfVMM 1,89 tcfNorth 2,99 tcf Eastern Producers: Chevron Ecopetrol Producers: Ecopetrol EquionVSM Valledupar (350k) Currumaní (27k) Cucuta (804k) Bucaramanga (1.1mm) Bogota (7.9mm) Neiva (477k) Cali (2.7mm) Pereira (682k) Manizales (430k) Medellin (3.3mm) 0.02 tcf Total natural gas reserves growth(1) Natural gas reserves and production by region E(2) Average production: 1,158 mmscfd (Dec 2012) Total reserves (Dec 2012) : 7,01 tcf (tcf)  2012 total natural gas reserves of 7.01 tcf (5.73 tcf proven and 1.28 tcf unproven)  VSM: Valle Superior del Magdalena VMM: Valle del Medio Magdalena VIM: Valle Inferior del Magdalena  Reserves / production ratio of 17 years Colombia has vast natural gas reserves, which have been growing through increasing exploration activity since the initial discovery in the Guajira basin in the mid 1970s  Although total natural gas reserves (proven, probable and possible) decreased in 2011, proved reserves increased by 1.1% in that year  The majority of natural gas reserves are located in the East region of Colombia (Cusiana basin), although North basin (Chuchupa / Ballena) accounts for most of the current production Barranquilla (1.3mm) Sta. Marta (431k) Cartagena (890k) Ballena 54% Cusiana - cupiagua 27% La Creciente 5% Others 14% 0 2000 4000 6000 8000 10000 2005 2006 2007 2008 2009 2010 2011 2012 GPC Probadas Probables + Posibles Total CAGR 05-09:3.0% CAGR 10-12: 2,4% 1,40 tcf VIM Producers: Pacific Hocol North 27% Others 30% East 43% Source: ANH - Latest Company Information Available. (1) 2012 Reserves shown as a total . (2) Natural Gas reserves and Production by Región are Estimated. Production: Concentra
  24. 24. CAGR: 12 -16 Coast: 7.8% Interior: 1,8% 200 300 400 500 600 MMSCFD Coast Interior Strategically located pipeline network Source: Upme, MME, Concentra Latest Company Information Available TGI pipeline network TGI’s pipeline network ensures natural gas demand by reaching Colombia’s major urban and industrial centers and guarantees supply through its position close to large gas reserves  TGI’s pipeline network is connected to the two largest production centers in the country, which provides reliability to the system Total natural gas demand evolution by region Total natural gas demand evolution by region E 1.30 tcfVIM-VMM 1,89 tcf North 2,99 tcf Eastern Producers: Chevron Ecopetrol Producers: Ecopetrol EquiónVSM Valledupar (350k) Currumaní (27k) Cucuta (804k) Bucaramanga (1.1mm) Bogota (7.9mm) Neiva (477k) Cali (2.7mm) Pereira (682k) Manizales (430k) Medellin (3.3mm) 0.02 tcf Natural gas reserves City (population) References Pipeline owned by TGI Pipeline owned by a third party References BOMT TGI pipeline network(1) Residential natural gas users evolution by region (mmscfd) CAGR 06-13: Interior: 8.5%; Coast: 4.6% CAGR: 05-12 Coast: 1.7% Interior: 6.4% (1) Reserves information to 2010.. Total natural gas demand evolution by region E 0 1 2 3 4 5 6 2006 2007 2008 2009 2010 2011 2012 2013 MillionsUsers Coast Inland 410 359 346 413 463 492 512 591 155 205 186 192 200 450 700 950 1200 1450 2010 2011 2012 2013 GBTUD Coast Inland Others Exports
  25. 25. Regulatory framework established to attract private sector investment  Law 142 (1994) establishes system of open entry to the natural gas transportation sector − No term limitation for the provision of the service − Assets used in the provision of the service are not owned by the state but by the company providing such service CREG required by law to seek input from market participants  CREG is an independent regulatory body that controls natural gas regulation − Sets tariffs, promotes competition and monitors quality of service Tariff calculation based on the principle of financial feasibility and economic efficiency  Tariffs are set in order to allow the service provider to: − Recover operational costs and investments − Obtain a return on investment comparable to what an efficient company would obtain in a sector of similar risk Cost recovery, attractive regulated return on investment and protection against inflation  Transporters are given full recovery of operating and maintenance expenses − Adjusted by Colombian Price Index (CPI)  Dollar indexation of investment remuneration tariff  Different rates of return applied when determining fixed and variable charges Constructive and stable regulatory framework Source: Company information. The Colombian gas transportation regulatory framework was established to attract private sector investment and provide adequate cost recovery and regulated returns
  26. 26. 26 77% of revenues from top tier clients with solid credit ratings, all raised to investment grade in tandem with sovereign rating Robust customer base 26 Source: Company information. (1) Residential users refer to the number of residencies served, not the population, which would be approximately five times larger.  Largest gas producer in Colombia  Publicly traded company controlled by the Colombian government  Strong corporate governance  Ratings: Baa2/BBB- foreign; AAA local  Firm contract for 8 years  Main gas distributor in Colombia  Controlled by Spanish gasNatural Fenosa; EEB holds 25% of the company’s shares  Ratings: AAA local  Firm contract for 20 years  Gas distributor in the Southwest region of Colombia  Private company controlled by Promigas with dominant presence in the state of Valle del Cauca  Ratings: AAA local  Firm contract for 8 years  Main electricity generator in Colombia and gas distributor in the Northwest region of the country  Controlled by the City of Medellin  Ratings: Baa3/BBB foreign ; AAA local.  Firm contract for 8 years  Third electricity generator in Colombia  57% controlled by the Colombian government  Ratings: Baa3/BBB- foreign ; AA+/BB+ local  Firm contract for 8 years TGI’s main clients Main clients served  Refineries  Thermal generators  Trading  Residential (2.5mm users) (1)  Small businesses.  Industries  Natural Gas for Vehicles  Residential (884k users) (1)  Industries  Natural Gas for Vehicles  Residential (776k users) (1)  Thermal generation  Thermal generation  Trading
  27. 27. Appendix 3 – Shareholders and management team
  28. 28. (68.05% of TGI) Leading energy holding company with interests across the electricity and natural gas sectors in Colombia, Peru and Guatemala  Founded in 1896 and controlled by the City of Bogota (with a 76.28% ownership stake)  Participates in the electricity and natural gas sectors through controlling and non-controlling investments − Controlling investments in electricity transmission (Energia de Bogota and Trecsa), electricity distribution (EEC), natural gas transportation (TGI) and natural gas distribution (Contugas and Calidda) − Non-controlling investments in electricity transmission (REP Peru, CTM Peru and Isa), electricity generation (Emgesa and Isagen), electricity districution (Codensa and Electrificadora del Meta), natural gas transportation (Promigas) and natural gas distribution (gasNatural Fenosa)  US$ 644,3 Million EBITDA (1H-2013) and US$ 8 Billion assets (To june 2013) Leading private equity in emerging markets focused on companies with compelling growth prospects across India, China, Asia Pacific, Emerging Europe, Africa and Latin America  Founded in 2001  Focused on Latin America, Asia, Emerging Europe and other regions with strong growth potential  Participates in companies covering a broad range of industries in high- growth sectors and markets  CVCI currently manages over U.S.$7 billion in equity investments and committed capital  Contributes know-how and financial discipline to TGI (31.92% of TGI) Expertise, financial strength and support of shareholders 28 68.1% 25% 15.6% Electricity Transmission 40%40% 1.8% 98.4% Generation 51.5% * 2.5% Distribution 51.5% * 16.2% 51% 82% DistributionTransportation Natural Gas 75% 60% 100% 99.94% *EEB is not the controlling shareholder and is a party to signed shareholder agreements. 40% 25% 68.1% TGI as part of the EEB Group:
  29. 29. 29 Ricardo Roa Barragán CEO 20  Mechanical Engineering degree from the Universidad Nacional and post-graduate degree in Engineering management systems from the Pontificia Universidad Javeriana.  Over 20 years of experience in the private and public sectors, including experience as Energy Business Manager of organizacion Ardila Lulle, CEO of Poliobras S.A. ESP, Marketing and Trading Manager and CEO of Electrificadora de Santander S.A. ESP (ESSA), Energy and Gas Sectorial Secretary of The National Association of Utilities (ANDESCO) and Advisor of the Colombia’s Superintendency of Domestic Public Services (Superintendencia de Servicios Públicos Domiciliarios).  CEO of TGI since March 2012 Santiago Pardo CFO 20  Degree in Economics from Universidad de los Andes and MBA from Cornell University  Over 20 years of experience in international finance and banking, former Managing Director (Infrastructure and Energy) of Abacus Capital, Project Finance Director of Reficar and Director of Infrastructure and Energy Finance for Citi  Vice-President of Finance since August 2011 Officer Key highlightsYears of relevant experience Experienced management team with solid track record in the sector TGI is led by an experienced and seasoned management team Carlos Toledo Vice-President for Administration and Public Relations 7  Degree in Law from the Universidad UNICIENCIA.  Degree in Electrical Engineering and specialization in telecommunications from Universidad Industrial de Santander Master’s degree in Applied Political Studies from FIIAPP.  Master in Social Cohesion from Universidad de Mendez Pelayo, España.  Over 7 years serving the public and private sectors, including experience as IT manager of the Bucaramanga´s Health institute , CEO of TELNETCO, and as advisor of the Santander Department Government .  Vice-President for Administration and Public Relations since May 2012. David Riaño Manager of Regulatory Affairs 18  Electrical Engineering degree from Universidad de la Salle.  Masters of Industrial Engineering from Universidad de los Andes.  Masters of Economics from Pontificia Universidad Javeriana.  Postgraduate Specialization in Management of Engineering Projects from Universidad de la Salle.  Over 18 years of experience in technical and economic regulation of the gas and electricity sector. Worked as Executive Vice President of Colombian Electricity Generators Association, Superintendent for Energy and Gas at the Office of the Superintendent of Public Services, and Advisor to the Energy and Gas Regulatory Commission (CREG).  Regulatory Affairs Manager of TGI since March 2013.
  30. 30. Disclaimer This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of TGI, its consolidated subsidiaries and related companies to market risks and statements expressing management’ expectations, beliefs, estimates, forecasts, projections and assumptions. These forward- looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “objectives”, ”outlook”, “probably”, “project”, “will”, “seek”, “target”, “risks”, “goals”, “should” and similar terms and phrases. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Although TGI believes that the expectations and assumptions reflected in such forward-looking statements are reasonable based on information currently available to TGI’s management, such expectations and assumptions are necessarily speculative and subject to substantial uncertainty, and as a result, TGI cannot guarantee future results or events. TGI does not undertake any obligation to update any forward-looking statement or other information to reflect events or circumstances occurring after the date of this presentation or to reflect the occurrence of unanticipated events.

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