Geb corporate presentation + exhibit 1 q 14 v final
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.
2
3. 3
EEB Overview
Transportation and distribution of energy with involvement in other areas
in the energy sector
Focus on natural
monopolies
Growth in controlled
subsidiaries
Sound regulatory
framework
Ample access to
capital markets
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
Market share (%)
(Generation)
# 1 Peru
# 2 Colombia
# 1 Colombia
# 2 Colombia
Gas distribution
Market share (%)
(No. clients)
59.0%
Gas transportation
Market share (%)
(Average volume transported)
85.0%
Gas distribution
Market share (%)
(No. clients)
100.0%
# 1 Colombia
# 1 Colombia
# 1 Perú
57.6%
8.0%
26.6%
20.9%
Electricity transmission
Project ongoing
(850 Km L/T and 24 S/E)
# 1 Guatemala
4
10. Consolidated Financial Results – Evolution EBITDA
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.
10
16. EEB Share Performance
Ticker EEB:CB
As of Mar 31st, 2014 EEB’ market capitalization was USD 7.5 Billion
Trading volume tripled after the Equity Offering Nov 2011.
The stock is part of COLCAP, COL20, and COLEQTY
Average Target Price As of 1Q 2014: USD 0.92 COP 1,805
16
EEB Share Performance 1Q 2013 – 1Q 2014
17. Creating Value to shareholders
* Values for years prior to the 2011 dividend were adjusted to split 100:1 which enforced the
20.06.11 stocks. Shares outstanding from Nov. 11: 9,181,177,017
* In 4Q 10 there was an advance cut of financial statements, reason why during 1Q 11 EEB
decreed no dividends. 1Q 12 normalizes this effect.
0.025
17
97.7
353.8
571.0
157.1
390.6
437.8
382.1
91.8 142.6 368.0 109.0 228.3 306.5 230.9
94%
40%
64%
69%
58%
70%
62%
141%
40%
64%
105%
58%
70% 68%
0
100
200
300
400
500
600
0%
20%
40%
60%
80%
100%
120%
140%
160%
2008 2009 2010 2011 2012 2013 Avg 2008-2013
Evolution Dividend Payout Ratio
(USD Mllion)
Net Profit Dividends Dividend payout on last year profit Dividend payout + Including realeased reserves
0.58
0.91
0.60
0.72
0.80
0.72
6.9%
0.0%
3.0%
3.5%
4.2%
3.5%
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2010 2011 2012 2013 1Q 14 Avg 2008-
2013
Dividend Yield Evolution
Closing Share price at the end of the year USD Dividend Yield
22. 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 2006199719591896 2012-20142009-2011
Internationalization
Diversification
22
EEBIS is constituted in
Guatemala (2011) and in Perú
(2013).
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 and
Sogamoso - Norte – Nueva
Esperanza 500 Kv.
EEB acquired 31.92% of TGI
(2014) owned by The Rohatyn
Group, (formerly CVCI)
amounting USD 880 million.
Expansion
2002 2006199719591896 2012-20142009-2011
23. Annex: Shareholders and BoD
23
SHAREHOLDERS SHARES (Mill)
BOGOTÁ D.C 7,003
ECOPETROL 631
CORFICOLOMBIANA 327
AFPs 874
RETAIL INVESTORS 346
BOARD OF DIRECTORS
Gustavo Petro Urrego
Major of Bogotá
Fernando Arbeláez Bolaños
Economist
Guillermo Perry Rubio
Former Finance Minister and
former Mining and Energy Minister
Alberto José Merlano Alcocer
EAAB´s CEO
Saúl Kattan Cohen
ETB’s CEO
German Corredor Avella
Former UPME’s Director
Mauricio Cabrera Galvis
Consultant Economics &
Investment Banker
Claudia Lucia Castellanos
Marketing VP at ECOPETROL
Mauricio Cárdenas Müller
Advisor Luis Carlos Sarmiento
Foundation
*Shareholding as of March 31st, 2014
Independent Members
24. 24
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
Hiring Committee
Analysis of
contractual
processes and
recommendations
to the Presidency
Committee
Annex: Corporate Governance and Transparency
25. 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
25
26. Annex: Outstanding Bonds
USD 749 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
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
Cálidda – USD 320 mm
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
26
27. 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
TransmissionGeneration 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
27
28. Annex: Acquisition and expansion projects
Transaction
The second line of interconnection with Ecuador entered into operation in 2007: 387 Km in length (COP 152,000 mm)
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 and Chivor II Norte.
EEB acquires 31.92% of Transportadora de Gas Internacional (TGI) owned by The Rohatyn Group, formerly Citi Venture Capital
International (CVCI) amounting USD 880 million.
Results
In 2007 EEB acquired the assets of Ecogas for USD 1.4 billion. TGI was established to manage those assets with an equity of close to
USD 340 mm (98% of EEB), the rest of the operation was financed with debt.
In 2010 CVCI capitalizes on TGI and acquires the 31.9% of the equity for USD 400 mm. However, 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%.
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
As of 1Q 14 Cálidda´s client base has reached 186,000 customers. A new record high in monthly connections was achieved in March,
with 8,876 new clients (vs. 3,663 connections in March 2013) and hopes to reach a total of 455,000 by 2016 and 1.5 million by 2020.
100%
68%
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 2014.98%
75%
2009: Construction and operation of a network of transport and distribution for natural gas in order to meet the demand of South Peru
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
3Q 2013: 86% Advance in the implementation of the project. To be delivered 1Q 2014.
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. 28
29. 29
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
30. 30
Annex: Relevant Macroeconomic Indicators
*Inflation YTD as of March 31st 2014
Sources: Banco de la República, DANE, Banco de Guatemala, INEI
5.5%
4.50%
3.60%
6.00%
4.70%
3.90%
Peru Colombia Guatemala
GDP Forecast Growth 2014
2013 2014