Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de Bogotá
1. Empresa de Energía de Bogotá - EEB
A Regional Leader in the Energy Sector
2. 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.
3. 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%*
4. 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.
17. 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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23. 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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24. 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%
25. 25
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
26. 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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27. 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-
28. 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
Generation Transmission 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
29. 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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30. 30
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
31. 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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