Empresa de Energía de Bogotá, profile picture
Uploaded byEmpresa de Energía de Bogotá
PDF, PPTX432 views

Tgi earnings call 3 q presentation

TGI is the largest natural gas pipeline system in Colombia, with a network of nearly 4,000 km that transports over half of the country's gas consumption. It has experienced strong growth since its privatization in 2006. TGI has a stable and predictable cash flow due to regulated tariffs indexed to the US dollar. The document provides an overview of TGI, its history, financial and operating highlights including growing revenues, EBITDA and consistent financial performance with low leverage. It also discusses the positive Colombian economic environment and TGI's experienced management team and shareholders.

Embed presentation

Download as PDF, PPTX
October 2014 Strictly Private and Confidential TGI 3Q RESULTS
2 Table of contents 1. TGI overview and history 2. Key updates 3. Financial and operating highlights 4. Questions and Answers Appendix 1. Economic industry and regulatory environment 2. Shareholders and management team 3. EEB Overview
1. TGI overview and history
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
Company history TGI history Pipeline networkHighlights  Owns ~61% of the national pipeline network (3,957 km) and transports 52% 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  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  Creation of Ecogas 1997 2005  Start of Ecogas Privatization Process 2006  Ecogas assets awarded to EEB  Creation of TGI  Inaugural bond issuance  Transfer of first BOMT pipeline (GBS)  Pipelines exchange with Promigas  CVCI capitalization  Transfer of second BOMT pipeline (Centragas)  Cusiana expansion phase I: start of operations  Refinancing of subordinated debt with EEB 2008  TGI takes over the O&M of owned pipelines  Refinancing of bonds issued in 2007  Cusiana expansion phase II: start of operations  TGI takes over the O&M of compressor stations  Awarded investment grade rating by Moody’s and Fitch 2010  Awarded investment grade rating by S&P  Headquarters relocation from Bucaramanga to Bogotá  Redesign of organizational structure 2012 2013 2007 2009 2011 2014  EEB acquired 31.92% stake in TGI from TRG (formerly CVCI) 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. 5  Sabana Compressor starts operations  Contugas Concession starts operations  TGI´s first dividend Payment
2. Key Updates 6
7 Key updates  Since 2H 2011, TGI designed 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 28th, 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  TGI’s current ratings are as follows: Baa3 Stable OutlookBBB Stable Outlook BBB- Stable Outlook Fitch upgraded TGI’s credit rating to BBB on Oct 28, 2014
Hedge Restructuring Key updates • During the first quarter of 2014, TGI executed synthetic unwinds to cap losses related to 3 of 4 cross-currency swaps booked in 2009 • On September 2014, TGI executed the forth synthetic unwind hedging the whole cross-currency swaps booked in 2009
TGI’s acquisition 9  EEB closed the TGI 31,92% share acquisition on the first half of 2014  To bridge the acquisition EEB used cash on hand and short term financings  USD $ 645 MM were disbursed on September 2014 trough credit facilities to IELAH  On September 2014 IELAH repaid to TGI the USD 129 MM short term loan that bridged the acquisition  TGI is currently working on the merger with IELAH, this merger is expected to take place the 2Q 2015 Key updates  In ordinary session held on October 29th 2014, the General Shareholders Meeting approved the distribution of reserves and the net profits of the first eight months of 2014, amounting ~ USD 250 mm Dividends Declared  On July 7th TGI started operations of La Sabana Compression Station  Civil work continues end up the project which to the date has a completion of 91%. La Sabana Compression Station
3. Financial and operating highlights 10
11 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 Gas Losses Load factor (MMscfd) (%) (%) 3,702 3,529 3,774 3,774 3,957 3,957 3,957 2008 2009 2010 2011 2012 2013 3Q-14 478 478 548 618 730 730 730 2008 2009 2010 2011 2012 2013 3Q-14 427 437 485 560 604 628 652 90% 92% 90% 92% 85% 88% 92% 2008 2009 2010 2011 2012 2013 3Q-14 371 396 422 420 422 454 500 2008 2009 2010 2011 2012 2013 3Q-14 0.1% 0.2% 0.6% 0.5% 0.5% 0.4% 0.0% 2008 2009 2010 2011 2012 2013 3Q-14 66% 69% 71% 58% 59% 61% 63% 2008 2009 2010 2011 2012 2013 3Q-14
12 Strong contract structure and stable and predictable cash flow generation  TGI’s revenues are highly predictable, with approximately 98% coming from regulated tariffs that are reviewed at least every 5 years, ensuring cash flow stability and attractive rates of return  Main sectors served by the Company (72(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 remaining life of 8 years − 82.8% of regulated revenues are fixed tariffs, not dependent on transported volume − 63%(2) of revenues 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- 2014 By Client By Sector Ecopetrol 15% Gas Natural 19% Gases de Occidente 16% EPM 12% Isagen 7% Others 31% Distributor 55% Refinery 13% Thermal 20% Commercial 3% Vehicles 4% Others* 6%
13 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 - YTD (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) 238 252 294 338 390 465 480 2008 2009 2010 2011 2012 2013 LTM-14 3Q 194 196 222 257 289 359 378 82% 78% 75% 76% 74% 77% 79% 2008 2009 2010 2011 2012 2013 LTM-14 3Q 84 96 104 114 129 268 254 2008 2009 2010 2011 2012 2013 LTM-14 3Q 13.9 69.1 174.1 387.0 185.1 31.9 27.8 2008 2009 2010 2011 2012 2013 3Q-14
14 Strong and consistent financial performance Total debt / EBITDA Financial debt breakdown (3) 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. Total debt includes senior debt, subordinated debt and mark-to-market. Note: Ratios calculated in local currency. (1) Senior Net debt excluding EEB´s short term intercompany Loans. Including the ICL the ratio lowers to 1.2x (2) Interest coverage ratio calculated as EBITDA / Net interest (3) Senior debt stands for the US$750 million Senior Unsecured Notes due 2022. Subordinated debt stands for intercompany loan with EEB. Senior net debt (1) / EBITDA Interest coverage (2) 2.0 2.0 2.0 2.5 4.0 5.9 6.4 2008 2009 2010 2011 2012 2013 3Q-14 6.5 5.6 5.4 4.9 4.2 3.5 3.4 2008 2009 2010 2011 2012 2013 3Q-14 3.7 3.3 3.4 2.7 2.4 1.5 1,6 2008 2009 2010 2011 2012 2013 3Q-14
4. Questions and answers
16 Investor Relations For more information about TGI contact our Investor Relations team: Antonio José Angarita Vega CFO +57 (1) 3138400 - ext 2110 antonio.angarita@tgi.com.co Sergio Andrés Hernández Acosta Finance Manager +57 (1) 3138400 - ext. 2450 sergio.hernandez@tgi.com.co Fabián Sánchez Aldana IR Advisor - EEB +57 (1) 3268000 - ext. 1827 fsanchez@eeb.com.co http://www.tgi.com.co
Appendix 1 – Economic industry and regulatory environment
Source: Banco de la República, DNP, MINHACIENDA., Bloomberg 5-year CDS Foreign currency reserves Real GDP growth and inflation Foreign direct investment (US$ 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 5% 5% 7% 7% 4% 2% 4% 7% 4% 4% 4%6% 5% 4% 6% 8% 2% 3% 4% 2% 2% 3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (e)- Real GDP growth Inflation 0 100 200 300 400 500 600 700 01-04 06-04 11-04 04-05 09-05 02-06 07-06 12-06 05-07 10-07 03-08 08-08 01-09 06-09 11-09 04-10 09-10 02-11 07-11 12-11 05-12 10-12 03-13 08-13 01-14 06-14 9 10 11 11 14 15 15 21 24 25 28 32 37 44 47 -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% 0 10 20 30 40 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 International reserves Debt as % of GDP 2 3 2 2 3 10 7 9 11 7 6 15 15 16 5 - 3.0 6.0 9.0 12.0 15.0 18.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2Q
695 731 723 810 860 892 905 1047 1072 1083 1270 2006 2007 2008 2009 2010 2011 2012 2013 2014- 1H 2016 2018 CAGR: 2006-2013: 5,6% CAGR: 2013-2018: 4,3% … Source: UPME, ANH, Concentra 1 Mining and Energy Planning Unit. Reserves as 2012. 2 National Hydrocarbons Agency. Reserves as 2012. Energy sources 2012 Growing Demand of Natural Gas Significant Availability of Natural Gas  Reserves mostly located in the north and east regions of the country  Key fields (Ballena, Chuchupa, Cusiana and Cupiagua) concentrate virtually all of the natural gas production  Long distances between production and main consumption areas  Minimal gas storage capacity across the country Total Domestic Demand (mmcf/d) Expected 2013A-2018E Growth by Sector Natural Gas in Colombia: Increasing Demand and Vast Reserves (0.0)% 0.8% 1.9% 17.0% 6.3% 13.2% Petro- chemical Industrial Residential Power Generation NGV Refinery 19 Data from UPME as of 31-Dec-2012 Data from ANH as of 31-Dec-2013 11.7 6.4 RESERVES PER UPME RESERVES PER ANH Proved Probable + possible Yet to Find Conventional Non Conventional Organic 9,1% Coal 9,8% Natural Gas 25,1% Hydro 12,9% Oil 43,2% (Million Equivalent Oil Tons)
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 strategic investors and to provide adequate cost recovery and regulated returns
CREG RESOLUTIONS 083 AND 112 OF 2014  Establishes regulations for natural gas market.  Definition of contractual arrangements in the primary market.  Definition of marketing mechanisms.  Defines secondary market with its respective regulations.  The following reliability aspects in the Decree have not yet been defined by the Regulatory Commission:  The CREG will establish the reliability criteria which shall secure the demand coverage and must set the rules for the evaluation and remuneration of these investment projects. CREG RESOLUTION 047 OF 2014 Recent Regulatory Decisions The regulatory framework for natural gas transportation in Colombia is in a stage of important definitions. The main recent regulatory decisions are: CREG RESOLUTION 089 OF 2013 21 DECREE 2100 OF 2011  Establishes the principles that will be considered in the next natural gas transportation tariff update process.  The resolution mentions the principles that will be kept from the actual tariff methodology.  Remuneration based on contracts.  Price cap methodology.  It also mentions aspects that must be evaluated.  System expansion based on government signals.  Tariff calculation based on historical demand and not projected.  The resolution CREG 083 proposes the methodology to determine the WACC for regulated activities including gas transportation.  The resolution CREG 112, proposes the value for the Beta Adjustment (Delta Beta - Δβ) , which recognizes the difference between the reference market in the USA and the Colombian Regulatory framework.  Both resolutions were available for agents comments’, and the final resolutions are expected to be issued at the end of the year.
Appendix 2 – Shareholders and management team
23 David Riaño CEO 19  Electrical Engineer (Universidad de La Salle); Masters in Industrial Engineering (Universidad de Los Andes); Masters in Economics (Pontificia Universidad Javeriana)  Over 19 years of experience in technical and economic regulation of gas and electricity sector (CREG, Colombian Electricity Generators Association, Superintendency of Energy and Gas, Superintendency of Public Services)  Former Regulatory Affairs Manager at TGI SA ESP  CEO of TGI since October 2014 Antonio J. Angarita CFO 20 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 A. Torres Vice-President of Legal Affairs 20  Lawyer (Universidad de Los Andes); Business Law (Universidad de Los Andes)  Over 20 years of experience in the Oil and Gas Industry  Former General Counsel at Petrobras Colombia  Degree in Civil Engineering and MBA from Universidad de los Andes (Bogotá)  Over 20 years of experience in financial management in different industries, former IRO in EEB, CFO in Bayport Colombia, Regional CFO in Amnet Central America (Tigo Home), Financial Controller and Financial Planning Manager in Colombia Movil (Tigo), Head of Financial Planning in ETB, Head of Management Control in Codensa and Advisor of the CFO in EEB.  TGI’s CFO since July 2014 Jorge Gonzalez COO 20  Civil Engineer (Universidad de Los Andes); Specialization Studies in Finance (Universidad de Los Andes)  Over 17 years of experience in the natural gas industry  Former NGV Manager at Gas Natural S.A.E.S.P. Carlos Toledo Vice-President for Administration and services 8  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  Vice-President for Administration and Public Relations since May 2012.
Appendix 3 – EEB Overview
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 3Q 2014 Operating revenue 844.7 Operating profit 302.0 EBITDA LTM 974.5 Net Income 463.2 Consolidated - Covenants 3Q 2014 Leverage Ratio 2.33 Interest Coverage Ratio 10.22 Focus on natural monopolies Ample access to capital markets Ambitious projects in execution Growth in controlled subsidiaries Sound regulatory framework Experienced management and partners
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.
Tgi earnings call 3 q presentation

More Related Content

PPTX
Tgi & cálidda earnings call 2014
byEmpresa de Energía de Bogotá
 
PDF
TGI earnings call 2Q 14 vf
byEmpresa de Energía de Bogotá
 
PDF
TGI presentation conference call 1Q 2014 vf
byEmpresa de Energía de Bogotá
 
PDF
TGI Results and Key Development 2015
byGrupo Energía Bogotá
 
PDF
Tgi conference call 3T13
byEmpresa de Energía de Bogotá
 
PDF
Eeb ppt corporate en vf
byGrupo Energía Bogotá
 
PDF
Tgi 1 h 13_conference_call
byGrupo Energía Bogotá
 
PDF
EEB ppt corporate en vf
byGrupo Energía Bogotá
 
Tgi & cálidda earnings call 2014
byEmpresa de Energía de Bogotá
 
TGI earnings call 2Q 14 vf
byEmpresa de Energía de Bogotá
 
TGI presentation conference call 1Q 2014 vf
byEmpresa de Energía de Bogotá
 
TGI Results and Key Development 2015
byGrupo Energía Bogotá
 
Tgi conference call 3T13
byEmpresa de Energía de Bogotá
 
Eeb ppt corporate en vf
byGrupo Energía Bogotá
 
Tgi 1 h 13_conference_call
byGrupo Energía Bogotá
 
EEB ppt corporate en vf
byGrupo Energía Bogotá
 

What's hot

PDF
Credit suisse mlp conference presentation
byEnLinkMidstreamLLC
 
PPTX
Tgi & cálidda earnings call 1 q 2015
byEmpresa de Energía de Bogotá
 
PDF
Eeb ppt corporate en vf
byGrupo Energía Bogotá
 
PDF
Citi MLP / Midstream Infrastructure Conference
byEnLinkMidstreamLLC
 
PDF
Barclays ceo energy power conference - sept 9 - final
byEnLinkMidstreamLLC
 
PDF
Investor Presentation August 2015
byEnLinkMidstreamLLC
 
PDF
Tax, fiscal, general provisions of Petroleum Industry Act 2021 - Nigeria
byMaureen Omodiagbe
 
PDF
Goldman Sachs Power, Utilities, MLP & Pipeline Conference
byEnLinkMidstreamLLC
 
PPTX
Corporate presentation 1 q 15 s.a vf
byGrupo Energía Bogotá
 
PDF
2015 credit suisse final
byinvestor_phillips66
 
PDF
Eni in 2008
byEni
 
PDF
Phillips 66 2015 baml-p66.com
byinvestor_phillips66
 
PDF
Citi conference presentation final - 8.20.14
byEnLinkMidstreamLLC
 
PDF
TGP Q3 2020 Earnings Presentation
byTeekay Corporation
 
PDF
Goldman sachs presentation
byEnLinkMidstreamLLC
 
PDF
2015 credit-suisse-final v001-h4mb7r
byinvestor_phillips66
 
PDF
Corporate Presentation CPFL Energia - Março 2016
byCPFL RI
 
PDF
Morgan Stanley Winter MLP & Diversified Natural Gas Bus Tour
byEnLinkMidstreamLLC
 
Credit suisse mlp conference presentation
byEnLinkMidstreamLLC
 
Tgi & cálidda earnings call 1 q 2015
byEmpresa de Energía de Bogotá
 
Eeb ppt corporate en vf
byGrupo Energía Bogotá
 
Citi MLP / Midstream Infrastructure Conference
byEnLinkMidstreamLLC
 
Barclays ceo energy power conference - sept 9 - final
byEnLinkMidstreamLLC
 
Investor Presentation August 2015
byEnLinkMidstreamLLC
 
Tax, fiscal, general provisions of Petroleum Industry Act 2021 - Nigeria
byMaureen Omodiagbe
 
Goldman Sachs Power, Utilities, MLP & Pipeline Conference
byEnLinkMidstreamLLC
 
Corporate presentation 1 q 15 s.a vf
byGrupo Energía Bogotá
 
2015 credit suisse final
byinvestor_phillips66
 
Eni in 2008
byEni
 
Phillips 66 2015 baml-p66.com
byinvestor_phillips66
 
Citi conference presentation final - 8.20.14
byEnLinkMidstreamLLC
 
TGP Q3 2020 Earnings Presentation
byTeekay Corporation
 
Goldman sachs presentation
byEnLinkMidstreamLLC
 
2015 credit-suisse-final v001-h4mb7r
byinvestor_phillips66
 
Corporate Presentation CPFL Energia - Março 2016
byCPFL RI
 
Morgan Stanley Winter MLP & Diversified Natural Gas Bus Tour
byEnLinkMidstreamLLC
 

Viewers also liked

PPT
Measuring Social Media to track Conversions
byLiam Copeland
 
PDF
3Q earnings presentation geb vf1
byEmpresa de Energía de Bogotá
 
PPT
Credit Suisse Hires Veteran Tech Banker From Merrill - NYTimes.com
byrickefron
 
PDF
Corporate presentation 4 q 14 sa
byEmpresa de Energía de Bogotá
 
PDF
TGIi & Cálidda conference call Q3 14
byEmpresa de Energía de Bogotá
 
PDF
Calidda conference call 3T 13
byEmpresa de Energía de Bogotá
 
PDF
Corporate presentation 3 q 14 vf wa
byEmpresa de Energía de Bogotá
 
PPTX
Colombia moderna
bymariaalejandraocampo
 
PPT
Frontier Sales Demo
byQAGroup
 
PDF
Libro aves y mamíferos. corpochivor
byEmpresa de Energía de Bogotá
 
PPTX
Cardioversión c
byLucio Chuquitoma Cruz
 
Measuring Social Media to track Conversions
byLiam Copeland
 
3Q earnings presentation geb vf1
byEmpresa de Energía de Bogotá
 
Credit Suisse Hires Veteran Tech Banker From Merrill - NYTimes.com
byrickefron
 
Corporate presentation 4 q 14 sa
byEmpresa de Energía de Bogotá
 
TGIi & Cálidda conference call Q3 14
byEmpresa de Energía de Bogotá
 
Calidda conference call 3T 13
byEmpresa de Energía de Bogotá
 
Corporate presentation 3 q 14 vf wa
byEmpresa de Energía de Bogotá
 
Colombia moderna
bymariaalejandraocampo
 
Frontier Sales Demo
byQAGroup
 
Libro aves y mamíferos. corpochivor
byEmpresa de Energía de Bogotá
 
Cardioversión c
byLucio Chuquitoma Cruz
 

Similar to Tgi earnings call 3 q presentation

PPTX
Tgi & cálidda earnings call 2014
byEmpresa de Energía de Bogotá
 
PDF
Tgi 1 h 13_conference_call
byGrupo Energía Bogotá
 
PDF
Tgi conference call 4Q 2013 vf
byEmpresa de Energía de Bogotá
 
PPTX
1 q 2015 earnings presentation geb vf
byEmpresa de Energía de Bogotá
 
PPTX
4 q earnings presentation geb vf1
byEmpresa de Energía de Bogotá
 
PDF
Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de...
byCámara Colombiana de la Energía
 
PDF
Corporate presentation 2 q 14 vf wa
byEmpresa de Energía de Bogotá
 
PDF
Corporate presentation 2 q 14 vf1 wa
byEmpresa de Energía de Bogotá
 
PDF
Corporate presentation 2 q 14 v ff sa
byEmpresa de Energía de Bogotá
 
PDF
Geb corporate presentation + exhibit 1 q 14 v final
byEmpresa de Energía de Bogotá
 
PDF
Corporate presentation vf 100114
byGrupo Energía Bogotá
 
PDF
Geb corporate presentation
byGrupo Energía Bogotá
 
PDF
Geb corporate presentation
byGrupo Energía Bogotá
 
PDF
2013 Full Year Results Snam
bySnam
 
PDF
2013 Full Year Results Snam
bySnam
 
PDF
2014 Full Year Results & Strategy Update
bySnam
 
PDF
2015 results and outlook 2016 2020
byEnagás
 
PDF
Fact Sheet Eni - August 2015
byEni
 
PDF
Fact sheet (May 2014)
byEni
 
PDF
Enagás Resultados 2014 y actualización estratégica 2015 2017
byEnagás
 
Tgi & cálidda earnings call 2014
byEmpresa de Energía de Bogotá
 
Tgi 1 h 13_conference_call
byGrupo Energía Bogotá
 
Tgi conference call 4Q 2013 vf
byEmpresa de Energía de Bogotá
 
1 q 2015 earnings presentation geb vf
byEmpresa de Energía de Bogotá
 
4 q earnings presentation geb vf1
byEmpresa de Energía de Bogotá
 
Ingeniero Álvaro Torres, Vicepresidente de Planeación del Grupo de Energía de...
byCámara Colombiana de la Energía
 
Corporate presentation 2 q 14 vf wa
byEmpresa de Energía de Bogotá
 
Corporate presentation 2 q 14 vf1 wa
byEmpresa de Energía de Bogotá
 
Corporate presentation 2 q 14 v ff sa
byEmpresa de Energía de Bogotá
 
Geb corporate presentation + exhibit 1 q 14 v final
byEmpresa de Energía de Bogotá
 
Corporate presentation vf 100114
byGrupo Energía Bogotá
 
Geb corporate presentation
byGrupo Energía Bogotá
 
Geb corporate presentation
byGrupo Energía Bogotá
 
2013 Full Year Results Snam
bySnam
 
2013 Full Year Results Snam
bySnam
 
2014 Full Year Results & Strategy Update
bySnam
 
2015 results and outlook 2016 2020
byEnagás
 
Fact Sheet Eni - August 2015
byEni
 
Fact sheet (May 2014)
byEni
 
Enagás Resultados 2014 y actualización estratégica 2015 2017
byEnagás
 

More from Empresa de Energía de Bogotá

PDF
Boletín Suroccidental
byEmpresa de Energía de Bogotá
 
PDF
Boletín Río Córdoba
byEmpresa de Energía de Bogotá
 
PDF
Boletín Tesalia - Alférez
byEmpresa de Energía de Bogotá
 
PDF
Presentacion corporativa 4 q 14 sa
byEmpresa de Energía de Bogotá
 
PDF
Cálidda earnings 4Q 13
byEmpresa de Energía de Bogotá
 
PDF
Calidda presentation Q1 2014 vf
byEmpresa de Energía de Bogotá
 
PDF
Calidda investor's presentation Q2 2014
byEmpresa de Energía de Bogotá
 
PDF
Calidda investor's presentation Q3 2014
byEmpresa de Energía de Bogotá
 
PDF
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
PDF
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
PDF
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
PDF
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
PDF
Geb presentacion corporativa 2 t 14 v ff sa
byEmpresa de Energía de Bogotá
 
Boletín Suroccidental
byEmpresa de Energía de Bogotá
 
Boletín Río Córdoba
byEmpresa de Energía de Bogotá
 
Boletín Tesalia - Alférez
byEmpresa de Energía de Bogotá
 
Presentacion corporativa 4 q 14 sa
byEmpresa de Energía de Bogotá
 
Cálidda earnings 4Q 13
byEmpresa de Energía de Bogotá
 
Calidda presentation Q1 2014 vf
byEmpresa de Energía de Bogotá
 
Calidda investor's presentation Q2 2014
byEmpresa de Energía de Bogotá
 
Calidda investor's presentation Q3 2014
byEmpresa de Energía de Bogotá
 
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
Geb presentacion corporativa 3 t 14 vf sa
byEmpresa de Energía de Bogotá
 
Geb presentacion corporativa 2 t 14 v ff sa
byEmpresa de Energía de Bogotá
 

Tgi earnings call 3 q presentation

  • 1.
    October 2014 Strictly Privateand Confidential TGI 3Q RESULTS
  • 2.
    2 Table of contents 1.TGI overview and history 2. Key updates 3. Financial and operating highlights 4. Questions and Answers Appendix 1. Economic industry and regulatory environment 2. Shareholders and management team 3. EEB Overview
  • 3.
    1. TGI overviewand history
  • 4.
    4 Overview Stable and growingColombian 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.
    Company history TGI history PipelinenetworkHighlights  Owns ~61% of the national pipeline network (3,957 km) and transports 52% 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  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  Creation of Ecogas 1997 2005  Start of Ecogas Privatization Process 2006  Ecogas assets awarded to EEB  Creation of TGI  Inaugural bond issuance  Transfer of first BOMT pipeline (GBS)  Pipelines exchange with Promigas  CVCI capitalization  Transfer of second BOMT pipeline (Centragas)  Cusiana expansion phase I: start of operations  Refinancing of subordinated debt with EEB 2008  TGI takes over the O&M of owned pipelines  Refinancing of bonds issued in 2007  Cusiana expansion phase II: start of operations  TGI takes over the O&M of compressor stations  Awarded investment grade rating by Moody’s and Fitch 2010  Awarded investment grade rating by S&P  Headquarters relocation from Bucaramanga to Bogotá  Redesign of organizational structure 2012 2013 2007 2009 2011 2014  EEB acquired 31.92% stake in TGI from TRG (formerly CVCI) 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. 5  Sabana Compressor starts operations  Contugas Concession starts operations  TGI´s first dividend Payment
  • 6.
  • 7.
    7 Key updates  Since2H 2011, TGI designed 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 28th, 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  TGI’s current ratings are as follows: Baa3 Stable OutlookBBB Stable Outlook BBB- Stable Outlook Fitch upgraded TGI’s credit rating to BBB on Oct 28, 2014
  • 8.
    Hedge Restructuring Key updates •During the first quarter of 2014, TGI executed synthetic unwinds to cap losses related to 3 of 4 cross-currency swaps booked in 2009 • On September 2014, TGI executed the forth synthetic unwind hedging the whole cross-currency swaps booked in 2009
  • 9.
    TGI’s acquisition 9  EEBclosed the TGI 31,92% share acquisition on the first half of 2014  To bridge the acquisition EEB used cash on hand and short term financings  USD $ 645 MM were disbursed on September 2014 trough credit facilities to IELAH  On September 2014 IELAH repaid to TGI the USD 129 MM short term loan that bridged the acquisition  TGI is currently working on the merger with IELAH, this merger is expected to take place the 2Q 2015 Key updates  In ordinary session held on October 29th 2014, the General Shareholders Meeting approved the distribution of reserves and the net profits of the first eight months of 2014, amounting ~ USD 250 mm Dividends Declared  On July 7th TGI started operations of La Sabana Compression Station  Civil work continues end up the project which to the date has a completion of 91%. La Sabana Compression Station
  • 10.
    3. Financial andoperating highlights 10
  • 11.
    11 Solid operational performance (1)Thetrend 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 Gas Losses Load factor (MMscfd) (%) (%) 3,702 3,529 3,774 3,774 3,957 3,957 3,957 2008 2009 2010 2011 2012 2013 3Q-14 478 478 548 618 730 730 730 2008 2009 2010 2011 2012 2013 3Q-14 427 437 485 560 604 628 652 90% 92% 90% 92% 85% 88% 92% 2008 2009 2010 2011 2012 2013 3Q-14 371 396 422 420 422 454 500 2008 2009 2010 2011 2012 2013 3Q-14 0.1% 0.2% 0.6% 0.5% 0.5% 0.4% 0.0% 2008 2009 2010 2011 2012 2013 3Q-14 66% 69% 71% 58% 59% 61% 63% 2008 2009 2010 2011 2012 2013 3Q-14
  • 12.
    12 Strong contract structureand stable and predictable cash flow generation  TGI’s revenues are highly predictable, with approximately 98% coming from regulated tariffs that are reviewed at least every 5 years, ensuring cash flow stability and attractive rates of return  Main sectors served by the Company (72(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 remaining life of 8 years − 82.8% of regulated revenues are fixed tariffs, not dependent on transported volume − 63%(2) of revenues 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- 2014 By Client By Sector Ecopetrol 15% Gas Natural 19% Gases de Occidente 16% EPM 12% Isagen 7% Others 31% Distributor 55% Refinery 13% Thermal 20% Commercial 3% Vehicles 4% Others* 6%
  • 13.
    13 Strong and consistentfinancial performance Revenues EBITDA and EBITDA margin Funds from operations (1) (US$ in millions – average exchange rate for each period) Source: Company information Historical Capex - YTD (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) 238 252 294 338 390 465 480 2008 2009 2010 2011 2012 2013 LTM-14 3Q 194 196 222 257 289 359 378 82% 78% 75% 76% 74% 77% 79% 2008 2009 2010 2011 2012 2013 LTM-14 3Q 84 96 104 114 129 268 254 2008 2009 2010 2011 2012 2013 LTM-14 3Q 13.9 69.1 174.1 387.0 185.1 31.9 27.8 2008 2009 2010 2011 2012 2013 3Q-14
  • 14.
    14 Strong and consistentfinancial performance Total debt / EBITDA Financial debt breakdown (3) 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. Total debt includes senior debt, subordinated debt and mark-to-market. Note: Ratios calculated in local currency. (1) Senior Net debt excluding EEB´s short term intercompany Loans. Including the ICL the ratio lowers to 1.2x (2) Interest coverage ratio calculated as EBITDA / Net interest (3) Senior debt stands for the US$750 million Senior Unsecured Notes due 2022. Subordinated debt stands for intercompany loan with EEB. Senior net debt (1) / EBITDA Interest coverage (2) 2.0 2.0 2.0 2.5 4.0 5.9 6.4 2008 2009 2010 2011 2012 2013 3Q-14 6.5 5.6 5.4 4.9 4.2 3.5 3.4 2008 2009 2010 2011 2012 2013 3Q-14 3.7 3.3 3.4 2.7 2.4 1.5 1,6 2008 2009 2010 2011 2012 2013 3Q-14
  • 15.
  • 16.
    16 Investor Relations For moreinformation about TGI contact our Investor Relations team: Antonio José Angarita Vega CFO +57 (1) 3138400 - ext 2110 antonio.angarita@tgi.com.co Sergio Andrés Hernández Acosta Finance Manager +57 (1) 3138400 - ext. 2450 sergio.hernandez@tgi.com.co Fabián Sánchez Aldana IR Advisor - EEB +57 (1) 3268000 - ext. 1827 fsanchez@eeb.com.co http://www.tgi.com.co
  • 17.
    Appendix 1 –Economic industry and regulatory environment
  • 18.
    Source: Banco dela República, DNP, MINHACIENDA., Bloomberg 5-year CDS Foreign currency reserves Real GDP growth and inflation Foreign direct investment (US$ 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 5% 5% 7% 7% 4% 2% 4% 7% 4% 4% 4%6% 5% 4% 6% 8% 2% 3% 4% 2% 2% 3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (e)- Real GDP growth Inflation 0 100 200 300 400 500 600 700 01-04 06-04 11-04 04-05 09-05 02-06 07-06 12-06 05-07 10-07 03-08 08-08 01-09 06-09 11-09 04-10 09-10 02-11 07-11 12-11 05-12 10-12 03-13 08-13 01-14 06-14 9 10 11 11 14 15 15 21 24 25 28 32 37 44 47 -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% 0 10 20 30 40 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 International reserves Debt as % of GDP 2 3 2 2 3 10 7 9 11 7 6 15 15 16 5 - 3.0 6.0 9.0 12.0 15.0 18.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2Q
  • 19.
    695 731 723 810 860892 905 1047 1072 1083 1270 2006 2007 2008 2009 2010 2011 2012 2013 2014- 1H 2016 2018 CAGR: 2006-2013: 5,6% CAGR: 2013-2018: 4,3% … Source: UPME, ANH, Concentra 1 Mining and Energy Planning Unit. Reserves as 2012. 2 National Hydrocarbons Agency. Reserves as 2012. Energy sources 2012 Growing Demand of Natural Gas Significant Availability of Natural Gas  Reserves mostly located in the north and east regions of the country  Key fields (Ballena, Chuchupa, Cusiana and Cupiagua) concentrate virtually all of the natural gas production  Long distances between production and main consumption areas  Minimal gas storage capacity across the country Total Domestic Demand (mmcf/d) Expected 2013A-2018E Growth by Sector Natural Gas in Colombia: Increasing Demand and Vast Reserves (0.0)% 0.8% 1.9% 17.0% 6.3% 13.2% Petro- chemical Industrial Residential Power Generation NGV Refinery 19 Data from UPME as of 31-Dec-2012 Data from ANH as of 31-Dec-2013 11.7 6.4 RESERVES PER UPME RESERVES PER ANH Proved Probable + possible Yet to Find Conventional Non Conventional Organic 9,1% Coal 9,8% Natural Gas 25,1% Hydro 12,9% Oil 43,2% (Million Equivalent Oil Tons)
  • 20.
    Regulatory framework established toattract 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 strategic investors and to provide adequate cost recovery and regulated returns
  • 21.
    CREG RESOLUTIONS 083AND 112 OF 2014  Establishes regulations for natural gas market.  Definition of contractual arrangements in the primary market.  Definition of marketing mechanisms.  Defines secondary market with its respective regulations.  The following reliability aspects in the Decree have not yet been defined by the Regulatory Commission:  The CREG will establish the reliability criteria which shall secure the demand coverage and must set the rules for the evaluation and remuneration of these investment projects. CREG RESOLUTION 047 OF 2014 Recent Regulatory Decisions The regulatory framework for natural gas transportation in Colombia is in a stage of important definitions. The main recent regulatory decisions are: CREG RESOLUTION 089 OF 2013 21 DECREE 2100 OF 2011  Establishes the principles that will be considered in the next natural gas transportation tariff update process.  The resolution mentions the principles that will be kept from the actual tariff methodology.  Remuneration based on contracts.  Price cap methodology.  It also mentions aspects that must be evaluated.  System expansion based on government signals.  Tariff calculation based on historical demand and not projected.  The resolution CREG 083 proposes the methodology to determine the WACC for regulated activities including gas transportation.  The resolution CREG 112, proposes the value for the Beta Adjustment (Delta Beta - Δβ) , which recognizes the difference between the reference market in the USA and the Colombian Regulatory framework.  Both resolutions were available for agents comments’, and the final resolutions are expected to be issued at the end of the year.
  • 22.
    Appendix 2 –Shareholders and management team
  • 23.
    23 David Riaño CEO 19 Electrical Engineer (Universidad de La Salle); Masters in Industrial Engineering (Universidad de Los Andes); Masters in Economics (Pontificia Universidad Javeriana)  Over 19 years of experience in technical and economic regulation of gas and electricity sector (CREG, Colombian Electricity Generators Association, Superintendency of Energy and Gas, Superintendency of Public Services)  Former Regulatory Affairs Manager at TGI SA ESP  CEO of TGI since October 2014 Antonio J. Angarita CFO 20 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 A. Torres Vice-President of Legal Affairs 20  Lawyer (Universidad de Los Andes); Business Law (Universidad de Los Andes)  Over 20 years of experience in the Oil and Gas Industry  Former General Counsel at Petrobras Colombia  Degree in Civil Engineering and MBA from Universidad de los Andes (Bogotá)  Over 20 years of experience in financial management in different industries, former IRO in EEB, CFO in Bayport Colombia, Regional CFO in Amnet Central America (Tigo Home), Financial Controller and Financial Planning Manager in Colombia Movil (Tigo), Head of Financial Planning in ETB, Head of Management Control in Codensa and Advisor of the CFO in EEB.  TGI’s CFO since July 2014 Jorge Gonzalez COO 20  Civil Engineer (Universidad de Los Andes); Specialization Studies in Finance (Universidad de Los Andes)  Over 17 years of experience in the natural gas industry  Former NGV Manager at Gas Natural S.A.E.S.P. Carlos Toledo Vice-President for Administration and services 8  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  Vice-President for Administration and Public Relations since May 2012.
  • 24.
    Appendix 3 –EEB Overview
  • 25.
    EEB Strategy andOverview 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 3Q 2014 Operating revenue 844.7 Operating profit 302.0 EBITDA LTM 974.5 Net Income 463.2 Consolidated - Covenants 3Q 2014 Leverage Ratio 2.33 Interest Coverage Ratio 10.22 Focus on natural monopolies Ample access to capital markets Ambitious projects in execution Growth in controlled subsidiaries Sound regulatory framework Experienced management and partners
  • 26.
    Disclaimer This presentation containsstatements 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.