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Tgi & cálidda earnings call 1 q 2015

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Tgi & cálidda earnings call 1 q 2015

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Tgi & cálidda earnings call 1 q 2015

  1. 1. May 27th 2015 1Q 2015 TGI RESULTS AND KEY DEVELOPMENTS
  2. 2. 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.
  3. 3. Table of contents 1. Overview 2. Key updates 3. Operational and Financial performance 4. Expansion Projects Appendix 1. EEB Overview
  4. 4. 1. OVERVIEW
  5. 5. Overview 5 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
  6. 6. Pipeline network TGI history 6 Company history Highlights  Owns ~60% of the national pipeline network (3,957 km) and transports 48% of the gas consumed in the country −Serves ~70% of Colombia’s population, reaching the most populated areas (Bogota, Cali, Medellin, the coffee region and Piedemonte Llanero, among others) −Has access to the two main production regions, La Guajira and Cusiana/Cupiagua Cartagena Refinery Barrancabermeja Refinery 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 References TGI Pipelines Natural Gas Reserves City Field Refinery Third Party Pipelines Source: Mining and Energy Planning Unit. National Hydrocarbons Agency. 1997 2005 2006 2007 2008 2009 2010 2011 2012 2013  Start of Ecogas Privatization Process  Creation of TGI  Inaugural bond issuance (Fitch Rating: BB)  Transfer of first BOMT pipeline (GBS)  Pipelines exchange with Promigas  CVCI capitalization for USD 400 Mn  Transfer of second BOMT pipeline (Centragas)  Cusiana expansion phase I: start of operations  Refinancing of subordinated debt with EEB  Awarded investment grade rating by S&P  Headquarters relocation from Bucaramanga to Bogota  Redesign of organizational structure  Creation of Ecogas  Ecogas assets awarded to EEB  TGI takes over the O&M of owned pipelines  EEB acquired the remaining stakes in Transcogas  Ballena expansion: start of operations  Merger of TGI and Transcogas  Refinancing of bonds issued in 2007 (Fitch Rating: BB+)  Cusiana expansion phase II: start of operations  TGI takes over the O&M of compressor stations  Awarded investment grade by Moody’s and Fitch 2014  EEB acquired 31.92% stake  Sabana Compressor starts operations  Fitch upgrades rating from BBB- to BBB  First dividend distributionPacific Ocean Caribbean Sea VENEZUELA
  7. 7. 2. KEY UPDATES
  8. 8. Key updates 8  Since 2H 2011 TGI has executed a strategy to improve its credit ratings in order to (i) reduce financial expenses, (ii) provide better access to debt capital markets and (iii) broaden its potential investor base  On August 2014, Standard & Poor’s affirmed the TGI corporate debt and issuer rating in ‘BBB-‘, perspective stable  On October 28th, Fitch Ratings upgraded TGI’s corporate debt and issuer rating from ‘BBB-’ to ‘BBB’, with stable perspective Baa3 Stable OutlookBBB Stable Outlook BBB- Stable Outlook TGI´s credit ratings Final steps of TGI’s stake (31.92%) acquisition by parent company (EEB)  EEB closed TGI’s stake acquisition in 2H2014, through the acquisition of 100% of IELAH (SPV) domiciled in Spain.  As part of the transaction structured by EEB, IELAH should merge with TGI and the debt of that entity will be in TGI´s BS. Currently the company is working on that merger and it is expected to close it at the end of 2015.  Current outstanding debt of IELAH is USD 569 MM, after a partial repay (USD 76 MM) done in March 2015.
  9. 9.  TGI started the convergence process from ColGAAP to IFRS  Mandatory transition period began on January 1, 2014 and the issuance date of the first comparative financial statements under IFRS will be December 31, 2015  Since 2013, TGI carried out activities regarding preparation and adjustment of the resources needed to advance in the process of convergence to IFRS in accordance with legal requirements  TGI with technical support from external advisors, determined the effects that such changes will have on the financial statements  Some specific impacts are still being analyzed by TGI Transition to International Financial Reporting Standards - IFRS Key updates
  10. 10. Regulation perspectives ■ The last tariff review was approved by the CREG Resolution No. 126 in August 2010 and became effective for TGI in December 2012 (CREG Resolution No. 121). The tariff methodology review process takes place every 5 years, but the actual tariff application is usually delayed (previous tariff period was effective from December 2003 to December 2012, a total of 9 years) ■ According to CREG, new regulation is expected to be approved between 2015 – 2016, with the updated tariffs coming into effect between 2017 – 2018 (the starting point for the 5 year-period is set by the CREG approval of the new tariff methodology) ■ Based on TGI’s analysis and taking into account the latest available data parameters for its calculations(1), the new regulatory WACC is estimated at 11,63% for capacity and 14,30% for volume. (12,30% weighted average) Aug. 2010  New tariff methodolog y proposition for discussion  End of current tariff period  Final tariff methodology  Final regulatory WACC  Information request for charges  Charge approval by CREG  Request for reinstatement  Approval of final charges and implementatio n of new WACC  Approval of charges  Information reporting to CREG  Termination of public information audit stage – demands and expressions of interest from third parties Dec. 2014 Aug. 2015 Sep. 2015 Jan. 2016 Jun. 2016 Jul. 2016 Dec. 2016  Beginning of current tariff period Tariff review process – Estimated CREG schedule  Tariffs become effective for TGI Dec. 2012 5 year regulatory period (1) As of march 2015 Key updates
  11. 11. 3. OPERATIONAL AND FINANCIAL PERFORMANCE
  12. 12. Solid operational performance (1)The trend line refers to the ratio: Firm contracted capacity/available capacity. The Available capacity differs from the Total Capacity as TGI requires a percentage of it for its own use. Source: Company information. Network length (km) Capacity (MMscfd) Firm Contracted Capacity(1) (MMscfd) Transported Volume Load factor (MMscfd) (%) Pipeline & Compression Stations Reliability 3,529 3,774 3,774 3,957 3,957 3,957 3,957 2009 2010 2011 2012 2013 2014 2015 1Q 396 422 420 422 454 494 470 2009 2010 2011 2012 2013 2014 2015 1Q 99.6% 99.7% 99.8% 100.0% 96.0% 96.5% 96.5% 99.0% 2012 2013 2014 LTM 15 1Q Pipeline system Compression system 69% 71% 58% 59% 61% 64% 62% 2009 2010 2011 2012 2013 2014 LTM 15 1Q 437 485 560 604 625 668 669 92% 90% 92% 85% 88% 94% 94% 2009 2010 2011 2012 2013 2014 2015 1Q 478 548 618 730 730 734 734 2009 2010 2011 2012 2013 2014 2015 1Q
  13. 13. Stable and predictable cash flow generation  TGI’s revenues are highly predictable, with approximately 99,6% 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 (79(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 8,19 years − 89% of regulated revenues are fixed tariffs, not dependent on transported volume − Extremely low sensitivity of EBITDA to changes in exchange rate 13 Revenues breakdown (% of revenues) (1) Includes Distributors, Ecopetrol´s refinery and Natural gas for Vehicles. TGI’s revenues are highly predictable as a result of regulated tariffs and stable consumption as of March 31- 2015 By Client Distributors 62% Refinery 13% Thermal 16% Traders 3% Vehicle 4% Others 2% By Sector Ecopetrol 14% Gas Natural 25% Gases de Occidente 17% EPM 11% Isagen 8% Others 25%
  14. 14. 172 196 226 250 323 332 328 68.1% 66.7% 66.8% 64.1% 69.4% 70.8% 70.5% 2009 2010 2011 2012 2013 2014 LTM 15 1Q Revenues (3) Gross profit and Gross margin (3) (US$ in millions – EOM exchange rate for each period) (US$ in millions – EOM exchange rate for each period) (US$ in millions – average exchange rate for each period) (1) FFO for the years 2009 - 2013 is presented under ColGaap standards as net income plus depreciation, amortization and provisions, adjusted for effect from exchange rate and hedges. 2014 and LTM 1Q 2015 is presented under IFRS as net income plus depreciation, amortization and provisions, adjusted for effect from exchange rate , hedges, and the impact of deferred taxes. (2) On 2012 FFO includes the LM transaction premium~ USD 69 million (one time event) (3) Figures for the years 2009 - 2013 are presented under ColGaap standards. 2014 and 1Q 2015 are presented under IFRS. IFRS figures are preliminary subject to changes, independent auditor’s revision and Shareholders Assembly approval TGI Financial performance (US$ in millions – EOM exchange rate for each period) 252 294 338 390 465 468 466 2009 2010 2011 2012 2013 2014 LTM 15 1Q 196 222 257 289 359 371 371 78% 75% 76% 74% 77% 79% 80% 2009 2010 2011 2012 2013 2014 LTM 15 1Q 96 108 117 133 268 305 316 2009 2010 2011 2012 2013 2014 LTM 15 1Q Funds from operations (1) (2) (3)EBITDA and EBITDA Margin(3)
  15. 15. CASH AND EQUIVALENTS (1) TOTAL ASSETS (1) LIABILITIES (1) (US$ in millions – end-of-year exchange rate for each period) (US$ in billions – end-of-year exchange rate for each period) (US$ in billions – end-of-year exchange rate for each period) TGI Financial performance PPE (1) (US$ in billions – end-of-year exchange rate for each period) 110 71 182 160 364 207 275 2009 2010 2011 2012 2013 2014 LTM 15 1Q 1.80 2.12 2.56 2.88 2.98 2.81 2.85 2009 2010 2011 2012 2013 2014 LTM 15 1Q 1.25 1.30 1.34 1.40 1.40 1.60 1.65 0.55 0.81 1.22 1.48 1.58 1.21 1.20 2009 2010 2011 2012 2013 2014 LTM 15 1Q Liabilities Equity 0.62 0.77 1.40 1.67 1.49 2.28 2.27 2009 2010 2011 2012 2013 2014 LTM 15 1Q (1) Figures for the years 2009 - 2013 are presented under ColGaap standards. For 2014 and 1Q 2015 are presented under IFRS. IFRS figures are preliminary subject to changes, independent auditor’s revision and Shareholders Assembly approval
  16. 16. (x) Note: Total debt includes senior debt, subordinated debt and mark-to-market. (1) Figures for the years 2009 - 2013 are presented under ColGaap standards. For 2014 and 1Q 2015 are presented under IFRS. IFRS figures are preliminary, subject to changes, independent auditor’s revision and Shareholders Assembly approval (2) Interest coverage ratio calculated as EBITDA / net interest Debt / EBITDA (1) Interest coverage (1)(2) (x) Net debt / EBITDA (1) (x) (x) Financial performance Senior Debt / EBITDA (1) (x) 5.6 5.4 4.9 4.2 3.5 3.3 3.3 2009 2010 2011 2012 2013 2014 LTM 15 1Q 5.1 5.1 4.2 3.7 2.5 2.7 2.6 2009 2010 2011 2012 2013 2014 LTM 15 1Q 3.8 3.7 3.4 3.0 2.5 2.3 2.3 2009 2010 2011 2012 2013 2014 LTM 15 1Q 2.0 2.0 2.5 4.0 5.9 6.3 6.6 2009 2010 2011 2012 2013 2014 LTM 15 1Q
  17. 17. 4. EXPANSION PROJECTS
  18. 18. Description: TGI will increase existing capacity of Armenia and Chinchina branches with the construction of two new loops; Armenia Branch: 37.5 km 8” loop parallel to exiting 6” pipeline and Chinchina – Santa Rosa – Dosquebradas Branch: 7.5km 3” loop parallel to existing 3” pipeline Cost: ~$ 28 mm Status: — Engineering stage — Expected Completion: 2017 Expansion projects pipeline Description: Adapt compression stations, delivery and receipt locations along the Ballena - Barrancabermeja pipeline so that it can transport natural gas in both directions, in order to allow natural gas to be transported from the central region to the north Cost: ~$ 20 mm Expected Completion: 2016 Ballena – Barrancabermeja Bidirectionality Description: Increase capacity in 20 mmcf/d by adapting Vasconia, Miraflores, Puente Guiillermo compression stations Cost: ~$ 31 mm Expected Completion: Dec. 2015 Cusiana Phase III Cusiana - Apiay – Villavicencio - Ocoa Description: BOMT Contract Increase capacity in 32 mmscf/d. 2 New compression stations Cusiana – Apiay 32 mmcfd Apiay – Ocoa 7 mmcfd Cost: ~USD $ 48 mm Expected Completion: 1H 2017 Eje Cafetero Branches
  19. 19. Investor Relations For more information about TGI please contact to: Antonio José Angarita Vega CFO +57 (1) 3138400 - ext 2110 antonio.angarita@tgi.com.co Sergio Andrés Hernández Acosta Finance Manager +57 (1) 3138400 - ext. 2450 sergio.hernandez@tgi.com.co Fabián Sánchez Aldana IR Advisor - EEB +57 (1) 3268000 - ext. 1827 fsanchez@eeb.com.co http://www.tgi.com.co
  20. 20. Appendix 1 – EEB Overview
  21. 21. EEB Strategy and Overview Strategy  Transportation and distribution of energy Key facts  More than 100 years’ experience in the sector; founded in 1896.  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.  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 largest issuers of equity and debt in Colombia USD Million 2014 Operating revenue 963.7 Operating profit 330.3 EBITDA LTM 1,075.1 Net Income 410.0 Consolidated - Covenants 2014 Leverage Ratio 2.09 Interest Coverage Ratio 11.8 Focus on natural monopolies Ample access to capital markets Ambitious projects in execution Growth in controlled subsidiaries Sound regulatory framework Experienced management and partners
  22. 22. Cálidda´s Q1 2015 Results
  23. 23. I. Introduction and Perspectives II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board 23 Table of Contents
  24. 24. I. Introduction and Perspectives II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 24
  25. 25. Introduction and Perspectives 25
  26. 26. I. Introduction and Perspectives II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 26
  27. 27.  Cálidda has a client base of 278,028 customers. In the first quarter, 23,023 new clients have been connected . Now in the residential segment, we have presence in 17 districts of our concession area.  During the first quarter, 279 km of network were built, being mostly polyethylene (270 km), whereby the distribution system reached a total of 4,957 km of underground pipelines.  Even though Total Revenues from the first quarter decreased 9% (because of less investments – IFRIC 12), the Total Adjusted Revenues increased 23%.  In this quarter the EBITDA and adjusted EBITDA margin grew, mostly driven by an increase in the distribution tariff. Significant Developments 2) Total Adjusted Revenues exclude Pass- through and IFRIC 12 revenues. 3) EBITDA Last twelve months. 4) Adjusted EBITDA Margin excludes Pass-through and IFRIC 12 revenues. 5) Interest Coverage: EBITDA / Financial cost. 27 Significant Developments 1) Clients who are in front of Cálidda's distribution network. Operational Results ( YTD ) Q1 2015 Q1 2014 Var % Accumulated Clients: 278,028 185,941 50% Invoiced Volume (MMCFD): 695.2 663.4 5% Network Lenght (km): 4,957 3,779 31% Potencial Clients1 497,111 369,629 34% Financial Results ( YTD ) Q1 2015 Q1 2014 Var % Total Revenues (USD MM): 129.3 142.3 -9% Total Adj. Revenues (USD MM)2 : 52.1 42.3 23% EBITDA (USD MM)3 : 96.8 72.1 34% Adjusted EBITDA Margin4 : 49.5% 48.8% Interest Coverage (x)5 6.6x 5.5x 21%
  28. 28. I. Introduction and Perspectives II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 28
  29. 29. Commercial Performance 29 Residential & Commercial  Cálidda has residential presence in 17 districts and industrial network in more than 34 districts within Lima & Callao (Metropolitan area).  Cálidda connected residential customers in the Province of Callao and in March began commercial activities in the district of Ate.  During Q1 2015, Cálidda added 22,706 clients in the Residential segment and 309 clients in the Commercial segment. Residential Industrial Natural gas pipeline Main grid expansion Callao 18,756 34,619 63,602 103,090 163,129 254,280 277,295 0 50,000 100,000 150,000 200,000 250,000 300,000 2009 2010 2011 2012 2013 2014 Q1 2015
  30. 30. Commercial Performance 30 Clients Segments Growth Highlights  No new power generators where connected in Q1 2015.  3 new industrial plants were connected during Q1 2015.  In January, independent customers like Alicorp, Refineria La Pampilla and Andina de Cementos Unión, increased their Firm Distribution service in 2.0 MMCFD.  5 new NGV stations joined Cálidda’s distribution system and almost 200,000 converted vehicles are attended in the City of Lima. Power Generation Industrial GNV Stations 8 11 13 13 16 16 16 0 5 10 15 20 2009 2010 2011 2012 2013 2014 Q1 2015 321 360 394 429 466 489 492 0 150 300 450 600 2009 2010 2011 2012 2013 2014 Q1 2015 103 143 172 192 206 220 225 81,029 103,712 126,586 151,781 171,541 197,154 200,173 0 50,000 100,000 150,000 200,000 250,000 0 100 200 300 400 2009 2010 2011 2012 2013 2014 Q1 2015 NGV Stations Converted Vehicles
  31. 31. Commercial Performance Volume Sold (Invoiced) MMCFD  As of March 2015, Take-or- Pay contracts amounted 541 MMCFD, 79% of total invoiced volume.  In Q1 2015 the volume sold increased 5% compared to Q1 2014, due to an increase of volume mostly explained by the Power Generation segment. 31 52.2% 63.9% 71.6% 71.6% 72.5% 74.2% 74.4% 75.0% 34.0% 25.0% 19.2% 18.1% 17.2% 16.0% 15.9% 15.1% 13.4% 10.6% 8.8% 9.7% 9.6% 9.0% 9.0% 9.0% 182 303 457 508 577 679 663 695 2009 2010 2011 2012 2013 2014 Q1 2014 Q1 2015 Residential & Commercial NGV Stations Industrial Power Generation
  32. 32. Commercial Performance Volume Sold by Client Segment (MMCFD) NGV Stations Residential & Commercial IndustrialPower Generation 32 95 193 327 364 418 504 494 521 0 100 200 300 400 500 600 2009 2010 2011 2012 2013 2014 Q1 2014 Q1 2015 62 76 88 92 99 109 106 105 0 20 40 60 80 100 120 2009 2010 2011 2012 2013 2014 Q1 2014 Q1 2015 24 32 40 49 56 61 59 63 0 10 20 30 40 50 60 70 2009 2010 2011 2012 2013 2014 Q1 2014 Q1 2015 0.8 1.3 1.9 2.9 3.9 5.8 4.6 6.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2009 2010 2011 2012 2013 2014 Q1 2014 Q1 2015
  33. 33. I. Introduction and Perspective II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 33
  34. 34. Operational Performance Distribution System Infrastructure Network Efficiency  In Q1 2015, Cálidda’s has built 279 km, out of which 9 km were steel high pressure network while the remaining 270 km were polyethylene pipelines.  The total network now reaches 4,957 km of underground pipelines.  The network penetration rate has increased to 56% due to Cálidda’s commercial strategy to focus in low income districts where the savings produced by the use of natural gas against other alternative fuels are more appreciated. 34 Clients(‘000) 273 303 359 387 408 428 437 701 1,020 1,465 2,163 2,996 4,249 4,520 974 1,324 1,824 2,550 3,404 4,678 4,957 0 1,000 2,000 3,000 4,000 5,000 6,000 2009 2010 2011 2012 2013 2014 Q1 2015 km Steel Network Polyethylene Network Total 19 35 64 104 164 255 278 94 126 174 244 331 466 497 20% 28% 37% 42% 50% 55% 56% 0% 10% 20% 30% 40% 50% 60% 0 100 200 300 400 500 600 2009 2010 2011 2012 2013 2014 Q1 2015 Total Clients Potential Clients* (*) Clients who are in front of Cálidda's distribution network.
  35. 35. Operational Performance (Cont’d) 35  Calidda´s pipeline current capacity is 420MMCFD (from City Gate Lurín to Lima). Independent and regulated customers located down flow Lurín use nearly 295MMCFD, equivalent to 70% of our capacity.  Cálidda has enough Gas Supply (Pluspetrol) and Gas Transportation service (TGP) to attend its regulated customers. Calidda Capacity 420 MMCFD Gas 178MMCFD Transport 204 MMCFD Edegel Ventanilla Enersur Edegel Santa Rosa Kallpa Kallpa – Las Flores Cálidda' s City Gate Thermal Plants (Clients) Conventions Cálidda Capacity = 420MMCFD Regulated Clients + Independent Clients (149MMCFD) (146MMCFD) Termochilca Fénix Independent Clients (Power Generators) = 400MMCFD Mar-15 * Based on 2014 Figures Mar-15 0 150 300 450 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Regulated Clients Independent Clients 80 120 160 200 240 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Regulated Clients
  36. 36. I. Introduction and Perspective II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 36
  37. 37. Financial Performance Total Adjusted Revenues by Segment 2 1) Total Adjusted Revenues exclude Pass-through and IFRIC 12 revenues. 2) Installation Services Revenues include revenues from connection fees and financing. 3) Others: mainly derived from network relocation and other non recurrent services. 3 37  As of March 2015, 62% of Adjusted Revenues are volume related and 38% comes from installation services revenues and other revenues.  In this quarter, other revenues have increased substantially compared to previous periods because of extraordinary revenues that came from relocation services. 4% 14% 10% 34% 30% 8% Residential & Commercial Industrial NGV Stations Power Generation Installation Services Others Q1 2015 Total Adjusted Revenues1 Q1 2015 Total Volume (MMCFD) 1% 15% 9% 75%
  38. 38. Financial Performance Million US$ Funds from Operations (FFO)1 EBITDA & Adj. EBITDA Margin (%)Total Revenues 38 Debt & Net Debt / EBITDA 2) Net Debt = Debt - Cash Balance. 1) FFO = Net Profit + Depreciation + Amortization 2 43 64 103 125 146 186 42 52 116 125 201 245 315 326 100 77 160 188 304 370 461 512 142 129 2009 2010 2011 2012 2013 2014 Q1 2014 Q1 2015 Total Adjusted Revenues Pass-through & IFRIC 12 19 29 59 64 72 91 97 44.5% 46.1% 57.6% 51.6% 49.3% 49.1% 49.5% 2009 2010 2011 2012 2013 2014 LTM Q1 2015 EBITDA Adjusted EBITDA Margin 12 18 40 43 36 57 57 2009 2010 2011 2012 2013 2014 LTM Q1 2015 3.9x 3.9x 2.8x 3.0x 4.4x 3.5x 3.3x 3.1x 3.1x 2.3x 2.3x 3.0x 2.6x 2.5x 2009 2010 2011 2012 2013 2014 LTM Q1 2015 Debt / EBITDA Net Debt / EBITDA
  39. 39. Financial Metrics Million US$ Interest Coverage3 FFO / Net Debt Debt / Capitalization2 (%)Total Debt1 3) In 2013 ratio does not include 2013’s debt prepayment penalties (USD 7.8 MM) 1) Total Debt: net of debt associated costs. 39 28 67 119 149 318 318 318 47 47 47 47 $75 114 166 196 318 318 318 2009 2010 2011 2012 2013 2014 LTM Q1 2015Senior Debt Shareholders' Subordinated Debt 41.4% 49.8% 54.1% 49.2% 56.6% 53.2% 52.6% 2009 2010 2011 2012 2013 2014 LTM Q1 2015 3.5x 3.8x 5.8x 5.5x 5.6x 6.3x 6.6x 2009 2010 2011 2012 2013 2014 LTM Q1 2015 20.9% 20.2% 28.9% 28.3% 16.8% 23.9% 23.7% 2009 2010 2011 2012 2013 2014 LTM Q1 2015 2) Capitalization: Equity + Debt
  40. 40. CapExNet Income EquityTotal Assets 40 Financial Metrics (Cont’d) Million US$ $106 $115 $141 $202 $244 $280 $287 2009 2010 2011 2012 2013 2014 LTM Q1 2015 $7 $10 $26 $27 $17 $35 $34 2009 2010 2011 2012 2013 2014 LTM Q1 2015 48 50 32 63 92 83 16 3 53 33 5 51 50 85 96 98 83 2009 2010 2011 2012 2013 2014 Q1 2015 Secondary Network Main Network $218 $289 $383 $492 $648 $696 $704 2009 2010 2011 2012 2013 2014 LTM Q1 2015
  41. 41. I. Introduction and Perspective II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 41
  42. 42. Conclusions 42
  43. 43. I. Introduction and Perspective II. Significant Developments III. Commercial Performance IV. Operational Performance V. Financial Performance and Key Metrics VI. Conclusions Annexes: (i) Strong Sponsorship with Optimal Experience (ii) Experienced and Proven Management Team & Board Table of Contents 43
  44. 44. For more information about Cálidda, please contact our Investor Relations team: http://calidda.com.pe/inversionistas/ http://www.grupoenergiadebogota.com.co Adolfo Heeren CEO adolfo.heeren@calidda.com.pe Rafael Andrés Salamanca Rodriguez Investor Relations Advisor GEB +57 1 326 8000 – ext. 1675 rsalamanca@eeb.com.co Isaac Finger CFO +51 1 625 7310 isaac.finger@calidda.com.pe Investor Relations 44 Gabriela Vasquez - Mejía Finance Management +51 1 625 7390 gabriela.vasquez-mejia@calidda.com.pe
  45. 45. Strong Sponsorship with Optimal Experience  Leading energy holding company with interests across the electricity and natural gas sectors in Colombia, Peru and Guatemala.  Founded in 1896, controlled by the Distrito de Bogotá since 1956 with a 76.2% ownership stake.  Leader in the Energy Sector: major player in the transmission and distribution of electricity and natural gas. – Only vertically-integrated and one of the largest natural gas distribution and transportation companies in Colombia. – Founded in 1974 by the government of Colombia. Currently controlled by Grupo Aval. – Major player in the gas distribution sector in Colombia through Gases de Occidente, Surtigas and Gases del Caribe. – Participation in the power distribution in Colombia and telecommunications sector in Panama and Costa Rica. – EEB has 15.6% stake in Promigas. Controlling Investments Non Controlling Investments Non Controlling Investments Controlling Shareholder – 60% Ownership in Cálidda Shareholder – 40% Ownership in Cálidda Controlling Investments 45
  46. 46. Experienced and Proven Management Team & Board Board of Directors Management Team 46 Chief Operating Officer Jorge Monterroza Years in industry: 18 years Years at Cálidda: 4 years Chief Executive Officer Adolfo Heeren Years in Industry: 17 years Years at Cálidda: 3 years Chief Commercial Officer Carlos Cerón Years in industry: 17 years Years at Cálidda: 3 years Chief Procurement Officer Patricia Pazos Years in industry: 18 years Years at Cálidda: 10 years Chief Financial Officer Isaac Finger Months in industry: 8 months Months at Cálidda: 8 months Chief Human Resources Officer Rosario Jiménez Years in industry: 6 years Years at Cálidda: 6 years Chief External Affairs Officer Tania Silva Years in industry: 3 years Years at Cálidda: 2 years Chief Legal and Regulatory Officer Amadeo Arrarte Years in industry: 13 years Years at Cálidda: 11 years Chief Strategy Officer Tatiana Rivas Years in industry: 7 years Years at Cálidda: 7 years Chief Internal Auditor Carolina Hernández Years in industry: 9 years Years at Cálidda: 7 years President Ricardo Roa Barragán Participation in the Boards of Codensa, Emgesa, Gas Natural, REP Perú, Cálidda, Contugas, Trecsa and President of Transportadora de Gas Internacional TGI. Luis Betancur Escobar Served as Director of Fondo Financiero Desarrollo Urbano. President of Colombia's restructuring of the Energy and Gas Regulatory Commission Jose Elias Melo Acosta President of Corporación Financiera Colombiana S.A Minister of Colombia's Treasury and Public Credit and Labor and Social Security departments. Antonio Celia Martínez-Aparicio President of Promigas Served on the board of directors of various companies in the natural gas sector. Mauricio Montoya Bozzi Over thirteen years of professional experience in Project Management, New Business Structuring and Strategic Planning. David Alfredo Riaño Alarcón President of Transportadora de Gas Internacional TGI. 19 years of experience in the energy sector and utilities. Luis Ernesto Mejía Castro Director of Promigas. Minister of Mines and Energy and Vice Minister of Hydrocarbons and Mines.
  47. 47. Disclaimer The information provided here 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. Cálidda and its Shareholders expressly disclaim any responsibility for actions taken or not taken based on this information. Neither Cálidda nor its Shareholders accept any responsibility for losses that might result from the execution of the proposals or recommendations herein presented. Neither Cálidda nor its Shareholders are responsible for any content that may originate with third parties. Cálidda or its Shareholders may have provided, or might provide in the future, information that is inconsistent with the information herein presented. 47

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