2. New Controlling
shareholder
Diversification
Vertically
integrated private
sector company
serving the
Bogota market
EEB acquires 40% of the shares of
REP (2002) and CTM (2006)
Contugas created in Peru (2008)
EEB, through DECSA, acquires EEC (2009)
TRECSA created in Guatemala (2009)
TGI capitalized by CVCI in USD 400 million
(2010) to finance expansion plan.
Equity Offering: USD 400 MM in capital (2011)
Acquisition of a control stake in Calidda in Peru
and a minority participation in Promigas in
Colombia (2011)
EEB was awarded with four transmission
projects in Colombia : (2012) Armenia / Alferéz /
Tesalia and (2013) Chivor Project
Our Beginning
Internationalization
Expansion
City of Bogota
acquires 100% of the
company
Capitalization by Endesa:
separation of the generation
(Emgesa) and distribution
(Codensa) businesses
Public-private model
EEB acquires Transcogas (2005)
and TGI (2007); the two companies
have been merged
EEB and TGI issue USD 1.36
billion in international bonds to
acquire Ecogas (2007)
Over a Century of Energy
2002 2006199719591896 2009
Transformation
2012-2013
2
3. EEB Strategy and Overview
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.
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
3
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%
USD Million F 12
Operating revenue 896
Operating income 316
Consolidated EBITDA LTM 724
Net Income 391
Consolidated - Covenants F 12
Leverage Ratio 1.88
Interest Coverage Ratio 8.82
4. 4
Electricity transmission
Market share (%)
(Km of 220-138 kV lines ) 62.0%
# 1 Peru
Electricity transmission
Market share (%)
(Km of lines)
8.1%
# 2 Colombia
Electricity distribution
Market share (%)
(Electricity distributed Kwh)
26.6%
# 1 Colombia
Electricity generation
Market share (%)
(Generation)
# 2 Colombia
22.2%
4
Gas distribution
Market share (%)
(No. clients) 59.0%
# 1 Colombia
Gas transportation
Market share (%)
(Average volume transported)
# 1 Colombia
87.7%
Gas distribution
Market share (%)
(No. clients)
# 1 Peru
100.0%
Leader in Natural Gas and Electricity
9. 9
*Includes dividends declared based on an early close of Gas Natural’s, Emgesa’s and Codensa’s
financial statements. Such dividends would normally have been declared in 2011.
**Includes dividends declared by Codensa early in 2011 by value of COP 167,941 MM
Consolidating the Strategy
85%
59%
56% 55%
80%
39%
45%15%
41%
44%
45%
20%
61%
55%
2006 2007 2008 2009 2010* 2011 2012**
Dividends vs. EBIT
Dividends EBIT
Investment plan 2013 – 2017
USD 3 billion
COP 1,4 Billion
10. Strong Presence in Attractive Markets
Sources: UPME, ANH, MEM y OSINERMIN
843
884
831
894
994
2009 2010 2011 2012 2015E
Natural Gas Demand- Colombia - mmcfd
8.5
7.1
6.6
7.1
2009 2010 2011 2012
Reservas Gas Natural - Colombia - Tcf
26.0
23.1
21.5 21.5
2009 2010 2011 2012*
Natural Gas Reserves - Peru - Tcf
333
417
484
528
950
2009 2010 2011 2012 2015E
Natural Gas Demand - Peru - mmcfd
10
13. 13
Electricity Transmission – Peru
Capex USD 94 mm
Expansions and new
concessions
Starts operation in 2012
Electricity Transmission - Peru
Capex USD 324 mm
Expansions and new
concessions in operation
2012/2013
Natural Gas Transportation
and Distribution - Colombia
Capex USD 123 mm
Starts operation in 2014
Electricity Generation -
Colombia
Capex USD 837 mm
Starts operation in 2014
Additional capacity 400 MW
Consolidating the Strategy
Natural Gas Transportation -
Colombia
Capex USD 633 mm
La Sabana 2Q14,
Electricity Transmission -
Guatemala
Capex USD 411 mm
Starts operation in 2014
Transportation and distribution
of natural gas - Peru
Capex USD 499 mm
First residential client was
connected in 1Q12;
construction completed 2013.
Natural Gas Distribution - Peru
Capex USD 540 mm
Plans to connect 455,000
customers by 2016
EEB Transmission - Colombia
Capex USD 287 mm
Substations in operation
between 2013-2015
Distribution of Electricity -
Colombia
Capex USD 140 mm
In operation 2011/ 2012
EEB and its consolidated subsidiaries will invest USD
831 mm in 2013
EEB’s unconsolidated affiliates will invest USD 902
mm in 2013
Engineering and services
Capex USD 74 mm
Sugarmills connected to
national grid in operation in
2014
14. Financial plan 2013 - 2017
14
2.24 1.74
1.71
1.81
1.88
4.5
4Q 11 1Q 12 2Q 12 3Q 12 4Q 12
Net Debt/ Consolidated adjusted EBITDA LTM
Net Debt/ Consolidated adjusted EBITDALTM Covenant
USD Million
Cash Generation 1,263
Loans 1,306
Equity 430
TOTAL 3,000
Leverage ratio target: 2.5x
EBITDA.
Cash
Generation
42%
Credits
44%
Equity
14%
16. Colombia
Peru
Guatemala
Regulatory framework developed since
1993
Independent regulatory (CREG), planning
(UPME), and audit (SSP) agencies
Laws 142 and 143 of 1994 give CREG the
authority to regulate public service
monopolies where competition is not
possible, and to promote competition
among providers of public services in all
other cases
CREG implemented an objective
methodology in order to: i) supply demand
based on economic and financial viability
criteria and ii) ensure efficient, safe, and
reliable operation.
The Government of Peru restructured the
electricity sector in 1992 and privatized some of
the most important electricity companies
The transmission system is in private sector
hands and returns are ensured through
concession agreements
Tariffs for natural gas transportation and
distribution are established in accordance with
the conditions of the concession during an
initial period. Thereafter, they are determined
periodically based on the NRV of actual and
projected investments
Independent regulators: COES, OSINERGMIN,
MINAM-OEFA, INDECOPI
Stable and Effective Regulation for Strategic Sectors
Regulatory framework based on the General
Electricity Law of 1996
Flexible and investor-friendly regulations are a
model for the rest of Central America
MEM is responsible for elaborating energy policies
and the CNEE is responsible for regulating the
electricity subsector
Chile
Regulatory framework established in 1982
Independent regulatory (CNE), audit (SEC),
and coordination (CDEC) agencies
CNE defines tariff and revenue structure based
on objective economic and financial criteria
There is no legal monopoly in favor of a sole
provider for high and extra-high tension
transportation lines
16
18. Proven Track-record
EEB – USD 610 mm
Local AAA
Moody’s Baa3, stable
S&P BB+; stable
Fitch BBB-; stable,
TGI – USD 750 mm
Moody’s Baa3; stable
S&P BBB-; stable
Fitch BBB-; stable
Outstanding bonds USD million
Total USD 4,179 mm
18
EMGESA – USD 1655 mm
Local AAA
S&P BBB-; stable
Fitch BBB-; stable
Codensa – USD 556 mm
Local AAA
Fitch AAA; estable
CTM Perú – USD 450 mm
Local AAA
Promigas – USD 487 mm
Local AAA
ISAGEN – USD 460 mm
Local AA+
External BB+
ISA – USD 596 mm
Local AAA
Total USD 6,154 mm
Cálidda – USD 320 mm
Moody´s Baa3; estable
S&P BBB-;estable
Fitch BBB-; estable
Gas Natural – USD 270 MM
Local AAA
TGI Bond
750
EEB Bond
610
EEB´s Bond
Debt
Management
8.75% a 6.125%
610
Re-IPO
400
TGI´s Bond
Debt
Management
9.5% a 5.7%
750
Cálidda Bond
320
2007 2011 2012 2013
20. Financial Highlights
20
* The value of dividend payments made prior to 2011 are adjusted for the 100:1
stock split effective 06.20.11. Shares outstanding as of Nov. 2011: 9,181,177,017
1,053,942
1,601,354
1,082,047
1,279,394
2009 2010 2011 2012
Consolidated EBITDA LTM – COP MM
723,213
1,092,944
305,294
690,701
2009 2010 2011 2012
Net Income - COP MM
33.95
82.02
34.85
43.96
1Q 10 4Q 10 1Q 11 1Q12 1Q13
Dividends declared - Per Share*
*Electricity distribution includes dividends declared by Condensa early in
2011 by value of COP 167,941 MM
EEB
Transmission,
Trecsa &
EEBIS
5% TGI
37%
Decsa/EEC
6%
Cálidda &
Contugás
7%
Emgesa
22%
Codensa
16%
Gas Natural
4%
Others
3%
EBITDA´s Breakdown 2012
COP 1,447,335 MM*
22. Ticker EEB:CB
Market cap of USD 7,061 million
as of 31 March 2013
Trading volume has tripled since the
Nov. 2011 stock placement.
Actually the average volume is
2,394,171
EEB is part of IGBC, COLCAP and
COL20 indexes. COLCAP is a
tradeable Index.
Stock indicators
22
Recomendation Target Price Date
Corredores Asociados Buy COP 1,600 23/04/2013
Credicorp Capital Buy COP 1,675 24/04/2013
Acciones y Valores Buy COP 1,550 15/04/2013
Serfinco Buy COP 1,652 30/05/2013
Average Target Price COP 1,619
COLCAPEEB
24. Corporate Governance
24
Board of Directors
Decides, controls and
evaluates company
policies.
Nine members, three
independent
Audit Committee
Made up by three
independent board
members
Corporate Governance
Committee
Three board members. At least
one of them must be
independent
Contracts Committee
Analysis of contracting
procedures and
recommendations to the
Executive Committee
CEO
Appointed for a 4 year
term; may be reappointed
or removed freely
Executive Committee
Policies, guidelines and
decisions related to
operating and financial
management
External controls
Tax Review, External Audit,
specialized audits, City
Controllers Office,
SSPD and SFC
Shareholders’ Meeting
Peak governance body
Global Responsibility
Committee
Approval of material
issues in the context of
sustainable
25. Management team with proven track record
Board of Directors - Principals
Gustavo Petro
Fernando Arbelaez Bolaños
Mauricio Trujillo Uribe
Alberto José Merlano Alcocer
Jorge Reinel Pulecio Yate
Saúl Kattan Cohen
Mauricio Cabrebra Galvis
Claudia Lucia Castellanos
Mauricio Cárdenas Müller
Independent
board members
25
Chief Executive Officer
Sandra Stella Fonseca
(Appointed in 2013)
Electric Engineer. Master in Energy Studies at the University of Sheffield in UK (United Kingdom) and MBA in Industrial
Management University of Sheffield also in UK. Has held management in a Energy and Regulation consultant company and
has participated in energy (electricity and gas) sector projects, economic impact studies, technical and socio-environmental
investment.
Economist with a Masters in Public Policy. directors
of budget in the Executive Direction of the Legal
Administration, Secretary of Hábitat de Bogotá,
Planning Secretary of Bogotá; among other public
offices.
Financial VP
Jorge Pinzón Barragán
(Appointed in 1997)
Economist. Former Consultant at the Institute of
Territorial Credit. Analyst of Economic Analysis Division
of the Office of Exchange Banco de la República. Mr.
Pinzon has held several management positions at EEB
since 1982.
EEB´s Shareholders Outstanding shares %
Distrito Capital de Bogotá 7,002,392,200 76.3
Ecopetrol S.A 631,098,000 6.9
AFP 547,571,338 6.0
Corficolombiana S.A 327,150,500 3.6
Retail Investors 672,964,979 7.3
Total 9,181,177,017 100
Electrical Engineer with two postgraduates
degrees in Marketing and Business Admin.
Former Consultant at INETEC. Mr. Moreno has
held several positions at EEB
TransmissionVP
Ernesto Moreno
Restrepo
(Appointed in 1997)
Public services VP
Catalina Velasco
(Appointed in 2011)
26. Cautionary Statements
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.
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.
26
27. Annex: Acquisitions and Recent Projects
Transaction
2007: the second interconnection line with Ecuador started operations: 387 km long -COP 152,000
MM
2012-13: EEB was awarded with 4 transmission projects to build transmission assets worth USD 287
MM
Results
2007: EEB acquired the assets of Ecogás for USD 1,360 billions. TGI was created to manage these
assets with equity of approximately USD 340 MM (98% held by EEB); the balance of the transaction
was financed with debt
2010: CVCI capitalized TGI and acquired 31.9% of its equity for USD 400 MM
The three expansion projects (Guajira,Cusiana Phase I and II) are now in operation increasing
transportation capacity by about 53%.
2009: EEB (51%) and Codensa (49%), through Decsa, acquired 82% of EEC.
2012: A restructuring of the company, seasonal effect and an increase of rates have brought about a 10
% increase of the EBITDA margin.
2011: Cálidda was acquired; the company has strong growth potential. It is expected to reach a total of
1.5 million clients by 2020.
2012: By December achieved 103,000 commercial y residential consumers. In November, the first
capitalization tranche was paid by USD 35 MM, from the total capital increase authorized, USD 60 MM.
100%
68%
51%
66%
2009: The most important energy infrastructure project in Guatemala, with approx. 850 km of
transmission lines, and serving the entire country
2012: Obtained 47% of municipal guarantees required.
2009: Construction and operation of a network for transportation and distribution of natural gas to meet
demand in southern Peru
The market area is expected to have the highest growth in demand for gas in coming years as the
result of steel, agro-industrial, and petrochemical projects that are being developed in the region.
2012: By 3Q 12’ the project was 60% completed.
98%
75%
27
28. 61 million
40 countries
USD 94,418 million
Annex : World-class Partners
Clients:
Coverage:
Sales 11:
20 million
25 countries
USD 24,944 million
2 million
4 countries
USD 127 million
9 countries
USD 2,465 million
25 countries
USD 7 billion*
*Resources invested or comitted
28
