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Grupo Energía de Bogotá
2016 Key Results and Developments
March 23rd 2017
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,
investment or financial advice on any subject. This presentation does
not purport to address any specific investment objectives, financial
situation or particular needs of any recipient. It should not be regarded
by recipients as a substitute for the exercise of their own judgment.
This information does not constitute an offer of any sort and is subject
to change without notice. EEB is no obligation to update or keep
current the information contained herein.
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. No representation or warranty,
either express or implied, is provided in relation to the accuracy,
completeness or reliability of the information contained herein.
This presentation may contain statements that are forward-looking
within the meaning of Section 27A of the Securities Act and Section
21E of the U.S. Securities Exchange Act of 1934. Such forward-looking
statements are based on current expectations, projections and
assumptions about future events and trends that may affect EEB and
are not guarantees of future performance.
The shares have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”) or any U.S.
State securities laws. Accordingly, the shares are being offered and
sold in the United States only to qualified institutional buyers as defined
under Rule 144A under the Securities Act, and outside the United
States in accordance with Regulation S of the Securities Act.
We converted some amounts from Colombian pesos into U.S. dollars
solely for the convenience of the reader at the TRM published by the
SFC as of each period. These convenience translations are not in
accordance with U.S. GAAP and have not been audited. These
translations should not be construed as a representation that the
Colombian peso amounts were, have been or could be converted into
U.S. dollars at those or any other rates.
3
Agenda
01 EEB Overview
03
Expansion Projects
04 Financial Performance 2016
05 Q&A
02 Key Updates 2016
4
EEB Overview 01
5
EEB Corporate Structure 01 EEB generally controls its subsidiaries or partners with world class operators following a long track record of success.
VT
Urban Energy Solutions Interconnecting for Market
Development Low Emission
Generation
6
EEB’s strategic business units 01 EEB is focused on natural monopolies in regulated sectors around three businesses, with a clear competitive strategy.
3.5
Electricity
Distribution
Million of customers in
Colombia
Natural Gas
Distribution Perú
440k
Power Generation
23% Market share generation
In Colombia
1,500
Electricity Transmission
Km of transmission
grid in Colombia
9,500 Km of transmission
grid in Perú
400 Km of transmission grid
in Centroamérica
Natural Gas transportation
4,000 Km of
pipelines
Natural Gas
Distribution Colombia
2.1 Million of
customers
1,100 Km of transmission
grid in en Brasil
14,975 GWh Power generated in
2016
Urban Energy
Solutions
Interconnecting for
Market
Development
Low Emission Generation
Customers
6.0 Million of
customers
Total
12.5k Km of
transmission
grid
Total
7
Key Updates 2016 02
8
Key Updates - Corporate Highlights
02
First Bond Issuance Local Market On February 28th, EEB completed its first bond issuance in the local market for COP 650,000 million, with an over-
demand of COP 1.3 billion.
Credit Rating Issuance and Issuer: AAA Local by Fitch Ratings Colombia
The main results were:
General Results (COP mm)
Bid To Cover: 2.33x
283,000
423,010
7 years
187,000
284,380
25 years
180,000
598,530
15 years
Bid to cover 1.52x 1.49x 3.33x
Rate CPI + 3.19% CPI + 3.85% CPI + 4.04%
Demanded Amount Placed Amount
27.7%
43.5%
28.8%
Placement by Series Placement by Investor
4.9%
27.4%
30.2%
6.4%
24.5%
A25 A15 A7
Insurance
Investment Funds
Brokers
Other legal persons
Natural persons
Trust & Consortiums
Credit Companies
Pension Funds
9
Key Updates - Corporate Highlights
02
EEB’s credit ratings: Investment Grade
On September 30th , Standard & Poor’s affirmed the EEB corporate debt and issuer rating in ‘BBB-‘, and change outlook.
from negative to stable.
On October 19th, Fitch Ratings affirmed EEB’s corporate debt and issuer rating in ‘BBB’, stable outlook.
On November 16th, Moody’s ratings affirmed EEB’s corporate debt and issuer rating in ‘Baa2’, stable outlook.
EEB’s current ratings are as follows:
Baa2 Stable Outlook
BBB Stable Outlook
BBB- Stable Outlook
Shareholders Assembly Proposal Dividends
In the next Shareholders meeting EEB propose declared dividends to its shareholders amounting to COP 908,936 million,
equivalent to COP 99 per share, with a dividend yield of 5.5%.
The proposal payment date for all shareholders are:
First Installment (50%) : Until July 5th, 2017
Second Installment (50%) : Until October 31st, 2017
10
Key Updates - Corporate Highlights
02
Accounting Policies Changes
EEB decided to early adopt IAS 27 "Consolidated and Standalone Financial Statements" was recognized, recognizing the
Equity Method of the associates in the Standalone financial statements.
TRECSA Impairment
An impairment test was carried out on the company, resulting in adjustment of USD 8.2 million.
Occasional reserves release 2015
On July 6th 2015, EEB’s shareholders meeting approved the release of occasional reserves amounting to COP 458,851
million.
The extraordinary dividend of COP ~49.98 per share was paid out to minority shareholders in one installment in July 5th
2016.
For the major shareholder, the District of Bogotá, holding a stake of 76.28% in EEB, this dividend will be paid in 10 equal
annual installments plus the recognition of interests of (CPI+4.15%), until 2026.
Starting 2016, the account payable corresponding to these dividends has been reclassified as a long term liability.
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Key Updates – Natural Gas Segment 02 TGI
Moody’s Ratings and Fitch Ratings ratified the corporate credit rating for TGI in local and foreign currencies, holding the
Investment Grade Rating, stable outlook. On the other hand, Standard & Poor’s ratified the corporate debt and issuer
ratings as BBB-, improving perspective from negative to stable, aligning the TGI outlook with its parent company, EEB.
Thus, TGI continued to hold in 2016 an investment grade rating by the three major international credit rating
agencies.
Second package of completion of the regulatory useful life: Considering the completion of the regulatory useful life
period according to the provisions of the CREG Resolution, for 18 gas pipelines composing the TGI’s transportation
system. Capex for these projects has an approximate value of USD 56.4 Mm (USD 16.8 Mm for replacement with 5 new
gas pipelines, and USD 39.6 Mm from Capex for maintenance of the remaining 13 gas pipelines).
As of year-end, the average transported volume through TGI’s infrastructure was 494 mmcfd (14.0 MM3D), which
represents a market share of 50.5% of the transported volume during 2016.
Baa3 Stable Outlook
BBB Stable Outlook
BBB Stable Outlook
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Key Updates – Natural Gas Segment
02
Cálidda
Fitch Ratings upgraded ratified the corporate credit rating for Calidda in local and foreign currencies to 'BBB‘ from 'BBB-' , stable
outlook.
Calidda’s client base and invoiced volume both increased during 2016 by 27% and 6%, respectively, compared to 2015’s figures.
(438,400 vs 345,136 clients).
During 2016, our network length was enlarged by 1,435 km, wherewith the distribution system reached a total of 7,425 km of
underground pipelines.
Total Revenues of 2016 have decreased 1% due to the reduction in natural gas prices, a pass-through concept for Cálidda. However,
Total Adjusted Revenues increased by 4% driven by higher distribution revenues, mainly from Take-or-Pay contracts, and pipeline
relocation services.
The EBITDA and Adjusted EBITDA margin grew mainly due to the higher income mentioned above (higher demand of natural gas)
and a lower operational expenses (-10% vs. 2015).
BBB Stable Outlook
13
Expansion Projects 03
14
Expansion Projects
03
Revenue growth has been sustained by a strong capex plan
Executed Capex by Segment(1) (2016 | 950.5 USD Mm) Executed Capex by Companies(1) (2016 | 950.5 USD Mm)
Executed Capex by Country(1) (2016 | 950.5 USD Mm)
Source: Company filings
(1) Excludes Brazil – GEBBRAS Capex
Executed Capex by Investment(1) (2016 | 950.5 USD Mm)
15
Expansion Projects
03
Revenue growth has been sustained by a strong capex plan.
On-going projects: Nueva Esperanza, Norte.
New and existing demand
Quality service and continuity
Control operational risk
Smart metering
UPME Project Status EAR(1)
USD MM On Stream
Chivor II Norte 54.9% 5.5 20/05/2017
Cartagena Bolívar 58.9% 11.6 18/11/2017
Río Córdoba 53.3% 1.8 22/07/2017
Armenia 96.0% 1.28 17/04/2017
Tesalia 85.0% 10.98 18/05/2017
Sogamoso Norte 40.8% 21.1 30/09/2017
Refuerzo Suroccidental 500 kV 18.3% 24.4 30/09/2018
Ecopetrol San Fernando(2) 50.4% 4.1 18/06/2017
Río Cordoba Transformadores(2) 79.2% 0.51 08/08/2017
La Loma 500 Kv 62.1% 1.29 30/03/2017
La Loma 110 Kv(2) 9.5% 5.5 30/06/2018
Drummond Rio Cordoba(2) 24.2% 0.69 22/07/2017
88.75
On-going projects:
CONCESION - MANTARO – MARCONA
LA PLANICIE –INDUSTRIALES
FRIASPATA MOLLEPATA and ORCOTUNA Substation
Projects Update (2016) Projects Update (2016)
(1) Expected annual revenues.
(2) Revenues are in COP, EOP: COP 3,000.71
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Expansion Projects
03
2013-2020 Investments and Funding Sources – Controlled Companies
(1) Mainly concentrated on electricity transmission businesses (COL / Overseas).
(2) 2014 Incliudes M&A transaction IELAH Equity Portion
(3) 2015 Includes M&A transaction Brazil Equity portion
2013 – 2020 Funding Investments EEB Capex Profile
(USD mm)
USD mm %
Executed Capex 2013-2016 $1,557 50%
Expected Capex 2017 -2020(1) $1,580 50%
Cash Generation After Dividends 2016-2020 $1,130
Incremental Debt 2016-2020 $450
TOTAL 2013-2020 $3,137
17
Financial Performance 2016 04
18
274,508 9%
1,542,174 49%
1,316,145 42%
Electricity Distribution
Electricity Transmission
Natural Gas Distribution
Natural Gas Transportation
Financial Performance
04
Consolidated Results (as of Dec 2016)
Operating Revenue 2016 by Segment Operating Profit 2016 by Segment (1)
(COP 1,153,089 mm) (COP 3,132,827 mm)
(1) Excludes administrative expenses & net of other expenses and gains
On YoY Basis: 2016 compared to 2015 showed a decrease of 8.4%
(+40.3%; COP 78,791 mm) Electricity Transmission: coming on stream of
UPME Projects awarded.
(+8.3%; COP 100,913 mm) Natural Gas transportation: increase in TGI’s
revenues due to FX conversion effects.
(+6.5%; COP 107,239 mm) Natural Gas distribution: decrease in Cálidda’s
revenues, mainly from tariffs and FX conversion effects..
102,158 9%
157,844 14%
893,087 77%
Electricity Distribution
Electricity Transmission
Natural Gas Distribution
Natural Gas Transportation
Due to EEC was merged with Codensa since October 1st, 2016 the segment Electricity Distribution is reported with Codensa data,
non-controlled subsidiary.
On YoY Basis: 2016 vs 2015 operating profit showed an increase of 3.7%, due
to minor cost and expenses of COP 327,577 mm (-14.2%)
(+12.5%; COP 11,322 mm) Electricity Transmission: higher revenues despite
of impairment in Trecsa.
(-27.8%; COP 60,655 mm) Natural gas distribution: lower revenues, combined
with maintenance costs and new users connected to the network.
(+17% COP 129,690 mm) Natural gas Transportation: Larger Operating
Balance Agreements – OBA’s and maintenance costs.
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Financial Performance
04
Consolidated Results (as of Dec 2016)
1,079,519
Ow
ners
of
Pare
nt
1,2
88,9
84
+173,909 -509,773
+142,402
+911,481 -441,611
Non - Controlling Interest 66,944
EBIT Financial Income Financial Expenses Exchange gain (loss) Share of profit (loss) ofassociates for using
equity method
Tax income (expense) Profit (loss)
From EBIT(1) to Net Income (COP Mm)
(+60.6%, COP 65,662 mm) Finance income: increased due to interest returns on financial investments.
(+10.6%, COP -48,835 mm) Finance expenses: increased mainly to debt interest payments, banking commissions and major losses in hedge valuations at the level
of TGI & Calidda.
(+145.7%, COP 454,217 mm) Exchange Gain: Net Exchange difference increase due to a revaluation during the period of 4.7%, which impact positively liabilities
denominated in foreign currency.
(-21.5%, COP -250,290mm) Equity Method: decrease in equity method of Associates mainly tariff review in GOT and MGE concessions and PPA(2).
(-+27.8%, COP 295,640 mm) Net Income: grew due to operational results, net exchange difference and equity method contribution from associates.
(1) Includes administrative expenses & net of other expenses, other gains
(2) Purchase Price Acquisition
On YoY Basis: 2016 compared to 2015
20
Financial Performance
04
Ebitda Evolution 2006 - 2016
(COP mm)
Source: Company filings.
Note: Figures for the years 2006–2013 are presented under ColGaap standards. For 2014, 2015 & 2016 are presented under IFRS
(1) Normalized for timing differences in dividends declared and paid. 2010 excludes dividends declared based on an early close of Gas Natural, Emgesa 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. 2014 excludes dividends declared based on an early close of Gas Natural, Emgesa and Codensa’s financial
statements. These figures are included in 2015, when such dividends would normally have been declared.
Normalized Consolidated Adjusted EBITDA(1) Consolidated Adjusted EBITDA 2016 by Subsidiary
(USD mm)
Consolidated Adjusted EBITDA 2016 by Segment
21
Financial Performance
04
Description of Indebetness (as of Dec 2016)
Net Debt / Consolidated Adjusted EBITDA(1)(2) Consolidated Adjusted EBITDA / Net Interest(1)(2)
Consolidated Debt Composition Debt Maturity Profile
(USD mm) (USD mm)
COP| PEN USD
Source: Company filings.
(1) Covenant associated to this indicator is currently suspended since the bond EEB 2021 has investment grade, granted by two out of three risk rating agencies monitoring the latter. Covenant
established in Offering Memorandum of USD749,000,000 EEB 6.125% Senior Notes due 2021. It includes anticipated dividends.
(2) Increase is mainly explained by increase of foreign exchange (USD/COP movements).
(3) 2019:Syndicated loan acquired by Contugas (USD342 mm) and additional indebtedness incurred by SPV in order to reacquire 31.92% shares of TGI IELAH (USD184 mm outstanding debt)
Debt maturity profile as of Dec 2016.
2.56x 2.40x 2.63x 2.78x
3.20x
4.50x
20163Q 162Q 161Q 162015
7.40x 7.63x 7.55x
8.80x
7.30x
2.25x
20163Q 162Q 161Q 162015
$1,543 $1,737 $1,733
$2,218
$3,009 $2,803
$2,567
3.4% 6.4% 2.9%
2.2%
0.7% 1.2%
1.00%
96.6% 93.6% 97.1%
97.8%
99.3% 98.0%
99.0%
2010 2011 2012 2013 2014 2015 2016
125.4 44.7
588.0
36.9
773.7 758.7
328.7
8.7 8.7 8.7 8.7 4.4
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
22
Q&A Session 05
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INVESTOR RELATIONS For more information about Grupo Energía de Bogotá (GEB) contact our Investor Relations team:
Felipe Castilla
Canales
Julian Naranjo
Financing & IR
Manager
+57 (1) 326 8000
Ext 1536
CFO
www.eeb.com.co www.grupoenergiabogota.com/en/investors
+57 (1) 326 8000
Ext 1501 Fabián Sánchez
Financing & Investor
Relations Advisor
+57 (1) 326 8000
Ext 1827
Rafael Salamanca
Financing & Investor
Relations Advisor
+57 (1) 326 8000
Ext 1675
Para uso restringido GRUPO ENERGÍA DE BOGOTÁ S.A. ESP. Todos los derechos reservados. Ninguna parte de esta presentación puede
ser reproducida o utilizada en ninguna forma o por ningún medio sin permiso explícito de GRUPO ENERGÍA DE BOGOTÁ S.A ESP.
