investors report 1q 2016 · 2 gerencia de financiamiento y relación con inversionistas, teléfono:...

1 Gerencia de Financiamiento y Relación con Inversionistas, Teléfono: +57(1) 3268000 ext 1675/1827

E mail:[email protected] www.grupoenergiadebogota.com/inversionistas

Investors Report 1Q 2016

Bogotá D.C., May 24th

2016

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY AND RELEVENT FACTS .........................................................................................................2

1.1. Overview of power and natural gas sectors serviced .........................................................................................2

1.2. Summary of EEB financial results 1Q 2016 ..........................................................................................................2

1.3. Relevant facts of EEB and Grupo Energía de Bogotá .........................................................................................3

2. PERFORMANCE OF SUBSIDIARY COMPANIES. ..........................................................................................................3

2.1. EEB Transmission ..................................................................................................................................................4

2.2. DECSA – EEC ..........................................................................................................................................................5

2.3. TGI ............................................................................................................................................................................5

2.4. CALIDDA ..................................................................................................................................................................7

2.5. CONTUGAS .............................................................................................................................................................8

2.6. TRECSA ...................................................................................................................................................................8

2.7. EEBIS Guatemala ....................................................................................................................................................8

3. PERFORMANCE OF ASSOCIATES COMPANIES ..............................................................................................................9

3.1. EMGESA ................................................................................................................................................................ 10

3.2. CODENSA .............................................................................................................................................................. 12

3.3. PROMIGAS ............................................................................................................................................................ 13

3.4. GAS NATURAL ...................................................................................................................................................... 14

3.5. REP and CTM Perú ............................................................................................................................................... 14

4. ANNEXES ....................................................................................................................................................................... 16

Annex 1: Legal Notice & Clarifications ............................................................................................................................ 16

Annex 2: Definitions of EBITDA included in this report. ................................................................................................ 16

Annex 3: Statement of Comprenhensive Income, 1Q2016 ............................................................................................. 17

Annex 4 : EEB Consolidated and Standalone Financials as of 4Q 2015 ....................................................................... 17

Annex 5: Equity Method .................................................................................................................................................... 18

Annex 7: Terms Technical and regulatory ....................................................................................................................... 18

Annex 8: Overview of the parent company – EEB .......................................................................................................... 19




1. EXECUTIVE SUMMARY AND RELEVENT FACTS

1.1. Overview of power and natural gas sectors serviced

Electricity Demand

Table No 1 – Overview of electric power sectors 1Q 2016

(GWh) Colombia Peru Guatemala

Installed capacity – MW 16,501 10,150 2,385 Demand – GWh 16,614 10,820 1,683

Demand variation 1Q 2016/ 1Q 2015 - % 4.5 -6.9 -26.1

Table No. 2 Overview of natural gas sectors 1Q 2016

(mpcd) Colombia Perú

Proven and probable reserves– TPC (2012)

5.5 21.071

Internal Demand - mm pcd 1,108 1,206 Variation in internal demand 1Q 16/1Q 15

8.9% 3.4%

Explanation of demand variation

The two main reasons behind the rise in the demand relate to industrial – refinery and thermal electric consumption. Thermal electric consumption experienced an increase of 14.3%, because during the last three quarters of 2015 and the beginning of 2016 the El Niño phenomenon conditions were maintained.

It is mainly due to higher levels of exported gas (Pampa Melchorita 97.6 MMCFD) and for the Chilca-Termochilca (18.5MMCFD) station.

Fuentes: UPME, CON, MEM, Osinergim

1.2. Summary of EEB financial results 1Q 2016

Table N° 3 - EEB´s consolidated financial indicators

USD Mm 1Q 2016 1Q 2015

Revenue 306.9 275.5 Cost of Sales 189.6 157.3 Profit from operating activities 104.9 71.0 EBITDA YTD 428.7 182.0

Profit (loss), attributable to: [Owners of parent] 168.3 68.1

Latest international credit ratings:

S&P BBB-/Negative 03/09/2014

Fitch BBB/AAA(col)/Stable

27/10/2015

Moody’s Baa2/Stable 04/09/2015

Financial results reported by Grupo Energía de Bogotá at the closing of 1Q 2016; Revenues of consolidated

operations of EEB, parent company of Grupo Energía de Bogotá – GEB - reached COP 927,537 million, growing

by 30.7%, equivalent to +COP 217,868 million when compared to 1Q of the previous year, mainly as a result of (i)

increased gas sales (+COP 64,105 million) due to new internal installations to clients and greater internal sales to

industrial clients on account of the Fishing season (Cálidda and Contugas) and (ii) increased revenues in the

transport of natural gas in Colombia (+COP 101,224 million) due to greater transported volume in TGI. S.A.

E.S.P. and the effect of a higher exchange rate in the tariff component expressed in US$ (iii) increased revenues

on electricity distribution in Colombia +COP 22,264 million, on account of growth in the average price per GWh,

and (iv) the start up of UPME projects at EEB S.A. E.S.P.’s local transmission level and some TRECSA

substations in Guatemala).

The results of operational activities reached COP 317,225 million at the closing of 1Q 2016 and when compared

to the same period of 2015 it exhibits growth of 47.81%, of which the main contributors were the gas transport




and distribution businesses, which experienced higher operational revenues and some controlled costs and

expenses during the period.

Financial revenues increased by 29.5% as a result of (i) appreciation of hedging operations COP 9,297 million

and (ii) decreased in financial yields of COP 1,969 million.

Financial expenses increased by 20.2% as a result of (i) increase of interests in financial obligations, (ii)

commissions and bank expenses and (iii) appreciation of hedging operations.

Net exchange rate difference reached COP 64,736 million, increasing by 196.3% vis-à-vis 1Q 15.

Earnings attributable to the Group’s controlling side corresponding to 1Q 2016 experienced an increase when

compared to the same quarter of 2015, amounting to 146.9% resulting from an increase in operational activities

results, and the positive exchange rate difference and growth of its shareholding stake.

Lastly, Group earnings increased by 147.5%, which represents COP 530,541 million. On the other hand, EBITDA

reached COP 1.2 billion at the closing of 1Q 2016.

1.3. Relevant facts of EEB and Grupo Energía de Bogotá

03.04.2016 Empresa de Energía de Bogotá S.A. E.S.P. informs the general public by means of a relevant

information mechanism pursuant to Decree 2555 of 2010 and other applicable standards, that on 31 March 2016

Contract 636 of 2016 of the Bogota District Council was executed and published, whereby it authorizes Empresa

de Energía de Bogotá S.A. E.S.P. to sell its stake in Isagen S.A. E.S.P., representing 2.52% of outstanding

shares in such company.

31.03.2016 After analyzing the results of the company, the General Shareholders Assembly of Empresa de

Energía de Bogotá (EEB), parent company of Grupo Energía de Bogotá, decided to distribute dividends

amounting to COP224,350 million, equivalent to 70% of profits during the 2015 period, of which over COP

171,000 million correspond to the Capital District.

10.03.2016 The Finance Commission of the Bogota Council approved the sale of share of Empresa de Energía

de Bogotá in ISAGEN, with 11 votes in favor and 3 against; the decision moves to the plenary session of the

Council. The argument of the share price, was among the arguments used to approve such process.

22.02.2016 The Board of Directors of Transportadora de Gas Internacional (TGI) S.A., ESP, affiliate of Empresa

de Energía de Bogotá (EEB), appointed Mr. Julian García Salcedo, a civil engineer, as its new President.

19.01.2016 During special session of the Board and pursuant to the Bylaws of the company, the Board of

Directors after thorough discussions on the company’s evolution in recent years, approved changing the

company’s CEO. EEB’s Board of Directors appointed Ms. Astrid Álvarez Hernández, a civil engineer from

Universidad Javeriana, specialized on environmental engineering from Universidad de los Andes and holds an

MA from Ohio University.

2. PERFORMANCE OF SUBSIDIARY COMPANIES.

Table No. 4 - Summary of expansion projects EEB Group - controlled companies 1Q 16

Project / Cia. Country Sector * Executed USD Mm

Status in operation

Lima Callao – Cálidda Perú D GN 19.3 In construction 2016-2017 TGI – Colombia Colombia T G N 1.9 In construction 2016-2016 EEC – Colombia Colombia D E 3.2 In construction 2016

Guatemala – TRECSA Guatemala T E 18.1 On stream* 2016 Proyectos UPME – EEB Colombia T E 5.7 In construction 2015-2018

T: Transportation; D: Distribution; GN: Natural Gas ; E: Electricity




*Partially on stream

*Figures not includes GEBBRAS Capex

2.1. EEB Transmission

Table N° 5 - EEB´s selected transmission business indicators

1Q 16 1Q 15 Var %

Investments - USD Mm 5.7 8.1 -29.6

Infrastructure availability - % (1) 99.91 100 0.0

Compensation for unavailability - % (2) 0.1522 0.200 -0.23

Maintenance program compliance - % (3) 100 100 0.0

Participation in Colombia’s transmission activity - % (4) 12.7 10.1 25.9

Table 6 - Progress Investment projects EEB transmission business

UPME Project as of 1Q 16 On stream EAI Progress

Chivor II 08/07/2017 5.5 51%

Cartagena Bolívar 07/03/2017 11.6 37%

Río Córdoba 30/11/2016 1.8 36%

Armenia 26/11/2015 1.3 95%

Tesalia 14/02/2016 10.9 81%

Sogamoso Norte 30/09/2017 21.1 30%

Refuerzo Suroccidental 500 kV 30/09/2018 24.3 9%

Ecopetrol San Fernando 30/04/2017 6.3 27%

Río Córdoba Transformadores 30/11/2016 0.6 37%

La Loma 500Kv 30/11/2016 1.3 39%

Loma 110kV 30/06/2018 6.9 0%

Conexión Drummond 220kV 30/11/2016 EAI: Expected Annual Income – USD Millions




2.2. DECSA – EEC

Table N° 7 - EEC’s selected indicators - Controlled by DECSA*

1Q 16 1Q 15 Var %

Number of clients 95.8 107.9 -11.2 Operating revenue - USD Mm 34.3 31.6 8.3 Operating income - USD Mm 5.3 3.2 65.2 EBITDA Qtrly. - USD Mm, 8.2 6.1 35.7 EBITDA Margin LTM - % 22.7 21.3 6.6 Net Income - USD Mm 2.2 1.8 27.0 Losses - % 10.1 9.8 3.6 Net Debt / EBITDA LTM 1.2 1.4 -11.3 EBITDA LTM / interest LTM 12.2 12.2 0.2

Operational profits grew at a greater pace given increased revenues on account of energy sales and some lower

related costs. Revenues increased by COP 20,704 million due to the increase in consumption experienced in the

regulated market, which allowed sales in excess of 10.7 GWh vis-à-vis the same month in 2015, similarly, there is

a positive effect due to the tariff, given that to date the new regulatory methodology has not been implemented.

On the other hand, there are “other revenues” in excess of COP 1,376 million, highlighting greater revenues on

measurement equipment amounting to COP 349 million, Other Revenues from new businesses and

standardization of COP 803 million.

EBITDA increased by COP 9,235 million vis-à-vis the amount reached during the same quarter of 2015 mainly on

account of greater revenues due to energy sales, specifically in the Regulated Market. In addition, other revenues

increased due to the sale of energy measurement equipment and normalization equipment and new supplies.

An increase in National Demand of 712 GWh was experienced, equivalent to 4.5%, driven mainly by the

regulated segment - 68% vs. 32% - non-regulated. Where the economic activity that drove the consumption of

Energy relates to the manufacturing industry and mining and quarry exploitation.

Progress of EEC projects

EEC has a project amounting to US$ 3.2 million. As of 1Q 2016 it managed to execute 16% of the investment

plan. This execution corresponds mainly to over execution of a series of projects related to business growth and

new supplies.

2.3. TGI

Tabla N° 8 - TGI’s selected indicators

1T 16 1T 15 Var %

Operating revenue -USD Thousands 117,784 109,992 7.1

Operating income -USD Thousands 73,579 67,310 9.3

EBITDA YTD – USD Thousands 99,551 94,877 4.9

Net income - USD Thousands 69,461 20,738 234.9

Transported volume - Mm cfd 566.5 469.4 20.7

Firm contracted capacity - Mm cfd 673.3 669.0 0.6

International debt ratings

S&P BBB-/Negative 03/09/15

Fitch BBB/Stable 27/10/15

Moody’s Baa3/Stable 12/06/15

At the closing of 1Q 2016, operational revenues reached US$117.8 million, growing by US$ 7.8 million (+7.1%)

when compared to results obtained during the same period in 2015. Regarding TGI’s revenues on natural gas




transport services, 79.5% was derived from fixed charges established by firm contracts, 3.7% of revenues

correspond to non-regulated revenues and 16.8% of revenues correspond to variable charges, and the increase

of natural gas demand was affected by El Niño phenomenon.

Also, operational costs and expenses jointly increased by 4.5% during 1Q 2016, to a great extent due to greater

fuel gas costs for compressor stations and the operative gas balance in the system. However, the company also

achieved cost reductions in items such as insurance (US$1 miilion) and lower expenses on wealth tax (-US$

2.3miilion).

As per the foregoing, operational profits during 1Q 2016 reached US$ 73.6 million, represented in growth of 9.3%

when compared to the same period of the previous year.

Non-operational results showed reduced expenses amounting to US$3.7 million when compared to the same

period of the previous year, due mainly to the net effect in hedging operations and greater financial yields.

Furthermore, given the fact that in 2016 the Colombian peso appreciated with respect to the US$ by 4% and that

in the same period of the previous year it experienced a devaluation of 7.7%, in this reported period, there is

evidence of lower expenses on account of the exchange rate difference (US$14.0 million) and the release of the

provision of differed tax (US$ 24.1 million), pursuant to IFRS methodology to estimate such tax.

Lastly, company’s net profit reached US$ 69.4 million1, which represents an increase of US$48.7 million when

compared to the same period of the previous year, mainly as a result of i) greater operational results amounting to

US$ 7.7 million, ii) slight growth in operational costs and expenses amounting to US$ 1.9 million, iii) lower

expenses on the difference of the exchange rate for this quarter amounting to US$14 million and iv) the release of

the provision of differed tax.

Relevant facts of TGI

Currently, the methodology to calculate WACC rate for tariffs in electric power distribution and transmission

activities and natural gas transport and distribution activities was issued by means of CREG Resolution 095 of

2015. To date, WACC rate has only been issued for the gas distribution activity. Definite remuneration

methodologies for electric power transmission and distribution activities and natural gas transport activity have not

been issued yet.

On 29 January 2016, the Companies’ Superintendence authorized the reform to the company’s bylaws, which

consists of the merger between IELAH, a special purpose vehicle domiciled in Spain bought in July 2014 to The

Rohatyn Group (former Citi Venture Capital - CVCI), through which it maintained a stake in TGI of 31.92%. The

company is currently working on completing this process, expected in 1H 2016.

On 22 February 2016, the Board of Directors appointed as president of TGI, Mr. Julian Antonio García Salcedo,

who has around 30 years of experience in the oil and gas sectors, having held a series of executive positions in

companies such as Gran Tierra Inc (oil company listed in NY and Toronto), Emerald Energy PLC and Gold Oil Plc

(oil companies listed in London), Carboandes, BP and Ecopetrol. He is a civil engineer from Universidad de los

Andes (Colombia), with masters’ in civil engineering from Colorado State University (EEUU), MBA from

Birmingham University (England) and Economics from Universidad de Los Andes.

On 29 March 2016, the General Shareholders Assembly summoned in regular session ratified and elected new

members to the company’s Board of Directors and approved the project to distribute protifs amounting to

approximately USD$22.1 million (COP 62,096 million), which were paid on 4 April to all shareholders.

On 27 April 2016, the Board of Directors approved two new expansion projects: i) Cusiana Phase IV (43 Mmcfd),

estimated Capex US$78 million; ii) Gas pipelines having met their regulatory useful life, replacement of 4




stretches, estimated Capex for substitution equals US$17 million and maintenance for the remaining 6 stretches,

estimated maintenance Capex amounts to US$32 million.

Year-to-date average transported volume on TGI’s infrastructure amounted to 566.5 mmcfd, and maintains its

market share of 53.7% at the closing of 1Q 2016.

Progress of TGI investment projects:

Table N° 9 Expansion Projects in Colombia 1Q 16

Description Capex New

Capacity Execution

On stream

(USD mm)

(Mmcfd) (%) On

stream

Cusiana Fase III Enhancement of compression capacity with the supply and start up of three new units.

31 20 59.7% 3Q 16

Cusiana- Apiay- Ocoa The project will increase transport capacity of the Cusiana – Apiay gas pipeline by 32 mmcfd and branch Apiay – Ocoa by 7 mcfd.

48 39.0

Project is being structured under a new execution strategy

4Q 17

Loop: Armenia / Dos Qiebradas Construction of the Armenia Loop 28 Km in 8” and 8km of Dos Quebradas Loop in 3”.

24 9 25.7% 2Q 17

For greater details on financial, operational and commercial information of TGI, please click on the following link.

2.4. CALIDDA

Table N° 10 - Cálidda’s selected indicators – USD Thousands

1T 16 1T 15 Var %

Number of clients 369,542 278,028 32.9 Operating revenue 190,097 129,300 47.0 Operating income 22,440 20,655 8.6 EBITDA YTD 29,016 26,185 10.8 EBITDA Margin 15.3 20.3 -24.6 Net Income 13,762 7,617 80.7 Net Debt / EBITDA LTM 2.6 2.6 -1.1 EBITDA LTM / interest LTM 5.8 6.3 -8.3

As of 1Q, Cálidda has 369,542 connected clients to its network, having reached 91,514 more clients than during

1Q 2015. During the 1Q of this year, a total of 24,406 clients were connected (24,114 residential).

During 1Q of this year, 371 km of networks have been built (PE: 361.5km; Steel: 8.6km). Cálidda’s distribution

system has a network extension of 6,360 km.

Greater revenues on gas and transport (+US$ 13 million), Distribution (+US$12 million), enhancement of the

network (+US$2.5 million) and relocation services (+US$6 million). Lower revenues on installations (US$ -6

million).

Greater EBITDA as a result of the renegotiation of firm contracts with generators and contracts with contractors.

In addition to network relocation revenues.

http://www.grupoenergiadebogota.com/inversionistas/informes-para-inversionistas




Progress of Cálidda’s investment projects:

Investments undertaken during 1Q were mainly related to polyethelene network extensions (US$19 million) for

household connections.

For greater details on financial, operational and commercial information of Cálidda, please click on the following

link.

2.5. CONTUGAS

At the closing of March 2016, the company has 37,208 enabled clients (with over 39,005 residential sales

conducted and 38,580 internal installations built).

Progress of Contugas investment projects:

During 1Q 2016, Contugas generated operational revenues amounting to US$11.6 million, net profit of US$4.2

million and EBITDA generation of US$ 3.4 million.

2.6. TRECSA

PET PROJECT-01-2009: Design, incorporation of easements, construction, supervision, operation and

maintenance of Transmission works that were part of tender offer PET-01-2009 of CNEE. It comprises the

construction of:

845 km of transmission lines.

11 new substations.

12 enhancements to existing substations.

2060 tower sites.

Project progress:

21 substations have construction licenses. (91%)

With the new lines’ design, 57 municipal endorsements have been obtained (75%)

With the new lines’ design, 694 km of rights of way have been incorporated (70%)

Properties A and F have been awarded their environmental license.

Due to detours, some environmental instruments have had to be updated.

To date, 2838 ECUT licenses have been obtained.

Construction of transmission lines 51% (403 km of cable laying)

Construction of Substations 66% (12 energized substations)

Construction progress 59%

2.7. EEBIS Guatemala

CEMENTOS PROGRESO (Phase 1): Design, supply, construction and start up of connection assets in San Gabriel

Station. The construction comprises:

230 kV line of approximatedly 17 km to be energized at 69kV.

Build civil works of 230kV substation in level switch breaker.

Supply and mounting of basic structure.

Supply and mounting of 40MVA transformer at 69/13.8 KV.

Supply and mounting of 50 MVA transformer at 230/13.8 KV.

http://www.grupoenergiadebogota.com/inversionistas/informes-para-inversionistas




Project progress:

Progress in transmission lines 72%

Progress in substations 64%

ANILLO PACIFICO SUR : Design, electrical studies, acquisition of land, incorporation of easements, environmental

and municipal authorizations. Construction, tests, connection and start up of facilities to connect at 230KV generation

stations of sugar mills to the National Interconnected System.

The construction comprises:

4 new substations.

2 reconfiguration of substations

1 enhancement of substation

90 km of transmission lines

243 tower sites.

Project progress.

Approved road carrier license.

100% of construction licenses and municipal endorsements.

Payment of 19.42 km of easements (21%)

23 ECUT license requirements filed.

EIS uploaded in MARN.

Construction of transmission lines 29%

Construction of Substations 52%

PRONICO: Project to Render Services for Engineering, Environmental Impact Studies, Electrical Studies –NTAUCT–

and other to Achieve Access Resolution to Station’s Transport Capacity – PRONICO – to the National Interconnected

System and the Regional Interconnected System.

Project Progress.

Substations’ Engineering 55%

Lines’ Engineering 50%

Environmental Management -EIS- 82%

Management of electrical studies 63%

Global weigthed average 59%

3. PERFORMANCE OF ASSOCIATES COMPANIES

Table No 11 - Non-controlled investments main financial indicators 1Q 2016

COP Mm Emgesa Codensa Gas

Natural Promigas

REP USD

Thousands

CTM USD

Thousands

Operating revenue 1,104,880 1,015,103 604,350 270,521 33,775 32,481 Operating income 1,393,048 988,696 107,235 215,754 15,865 20,059 EBITDA Quarterly 539,662 309,877 114,285 234,727 24,261 28,638 Net income 219,264 118,272 64,287 170,969 9,683 9,859




Table No 12 - Expansion projects of associates companies – Capex executed as of 1Q 16

Project Company Sector Country Capex executed

USD Millions On stream

Quimbo / Manteinance EMGESA G electricity Colombia 7.3 4Q-15 Attention new demand CODENSA D electricity Colombia 3.4 15 Extensions system GAS NATURAL D natural gas Colombia 1.1 16 Extensions system CTM D electricity Peru 62.6 15-16 Ampliaciones concesión REP T electricity Peru 6.0 15-18 extensions system PROMIGAS T + D natural gas Colombia 34.9 15-17

T: Transport; D: Distribution; GN: Natural Gas; E: Electricity

3.1. EMGESA

Table N° 13 Overview of Emgesa 1Q 2016

Instaled capacity - MW 3,459

Capacity´s Composition 11 Hydros y 2 thermos

Generation - Gwh 3,271

Sales - Gwh 4,113 Controlled by Enel Energy Group

Controlled by 51.5%: 37.4% Ordinary and 14.1% Preferred non-voting shares




Table N° 14 - Selected financial indicators of Emgesa

COP Million USD Million

1Q 2016 1Q 2015 Var % 1Q 2016 1Q 2015 Var %

Operating revenue 1,104,880 621,072 77.9 340.1 251.5 35.2

Gross income 609,743 452,983 34.6 188 183 2

EBITDA YTD 539,662 385,920 39.8 166.1 156.2 6.3

EBITDA Margin % 48.8 62.1 -0.2 48.8 62.1 -0.2

Net income 219,264 192,945 13.6 267.7 256.0 4.6

Dividends received by EEB 187,911 326,354 -42.4 57.8 132.1 -56.2

Debt / EBITDA 7.0 8.0 -11.9 8.0 7.0 8.0

EBITDA / Interests 4.6 -4.9 -193.5 4.6 -4.9 -193.5

Relevant facts of EMGESA

28.03.2016 The Board of Directors of Emgesa S.A. ESP, during its last session, approved increasing the total

debt cap of Emgesa by $324,000 million to a total cap of $4,780,000 million.

16.03.2016 The Board of Directors of Emgesa S.A. ESP approved an investment project to implement the E4E

program, which objective is to ensure the integration and traceability of business processes and update business

and control systems, for an amount of COP$13,400 million to be executed between 2016 and 2017.

01.03.2016 Emgesa S.A. ESP hereby informs the general public that the Huila Administrative Court decided, by

means of Official Document dated 22 February of 2016, issued within a collective redress, to allow the generation

of electric power of El Quimbo hydroelectric station, property of Emgesa, for a period of six months while it

implements a project to recover oxygen levels in the Quimbo-Betania stretch.

19.02.2016 The rating agency Standard & Poor’s revised the perspective of the long-term credit rating at

international level of Emgesa S.A. ESP, from stable to negative, and confirmed its current rating in BBB: The

revision of the perspective follows a similar rating upon the Republic of Colombia. See attached release issued by

Standard & Poor’s.

Progress in EMGESA’s investment projects:

Table N° 15 Capex– Emgesa

1Q 2016 1Q 2015 Var %

Million COP 10,331 46,948 -78.0

Million USD 430.24 364.69 18.0




3.2. CODENSA

Table N° 16 Overview of Codensa 1Q 2016

Instaled capacity - MW 2,889,596

Capacity´s Composition 22.7

Generation – Gwh 3,682

Sales – Gwh 0.9 Operating revenue - COP mm 7.04

Controlled by Enel Energy Group

EEB’s stake 51.5% (36.4% ordinary; 15.1% preferred

non-voting shares)

Table N° 17 - Selected financial indicators of Codensa


1T 2016 1T 2015 Var % 1Q 2016 1Q 2015 Var %

Operating revenue 1,015,103 869,893 16.7 312.4 352.2 -11.3

Gross income 407,433 389,189 4.7 125.4 157.6 -20.4

EBITDA YTD 309,877 280,509 10.5 95.4 113.6 -16.0

EBITDA Margin % 30.5 32.2 -5.3 30.5 32.2 -5.3

Net income 118,272 105,273 12.3 101.1 42.6 137.2

Dividends received by EEB 78,076 200,502 -61.1 24.0 81.2 -70.4

Debt / EBITDA 0.6 3.0 -79.0 0.6 3.0 -

EBITDA / Interests 6.92 -4.89 -241.5 6.9 8.2 -15.1

Relevant facts of Codensa

29.03.2016 The General Shareholders Assembly during regular meeting approves the distribution of profits and

the payment of dividends of 2015 period.

28.03.2016 The Board of Directors of Codensa S.A. ESP approved the enhancement of the global cap to the

Bond Issuance and Placement Program of Codensa in COP$560.000 million, to a total cap of COP $1.51 billio

28.03.2016 The Board of Directors of Codensa S.A. ESP approved expanding Codensa’s total debt cap by

COP$41.500 million to a total cap of COP$1.756.500 million.

28.03.2016 The Board of Directors of Codensa S.A. approved the investment project for the implementation of

the E4E program for an amount of COP$37.017 million to be executed between the years 2016 and 2017.

18.03.2016 Codensa S.A. ESP informs the market that on 15 March it entered into a credit agreement with Bank

of Tokyo – Mitsubishi UFJ, amounting to COP$ 200.000.000.000, which expires on 18 March 2019.

Progress of CODENSA’s investment projects:

Table N° 18 Capex – Codensa

1Q 2016 1Q 2015 Var %

Million COP 100,215 65,729 52.5

Million USD 33.2 25.5 30.0




3.3. PROMIGAS

Table N° 19 - Overview of Promigas 1Q 2016

Number of clients 9 Volume of sales - Mm cfd 332.3 Market share - % 40 Network – km 2,367 Profit from operating activities - COP MM 270,521 EEB’s stake through EEB Gas - % 15.6

Table No 20- Indicadores financieros seleccionados de Promigas


1Q 2016 1Q 2015 Var % 1Q 2016 1Q 2015

Operating revenue 270,521 207,166 30.6 89.5 80.4

Cost of sales 20,803 29,142 -28.6 6.9 11.3

Operating income 215,754 151,688 42.2 71.4 58.9

EBITDA YTD 234,727 163,378 43.7 77.7 63.4

EBITDA Margin (%) 86.8 78.9 10.0 86.8 78.9

Net income 170,969 118,182 44.7 56.6 45.9

Net debt (1) / EBITDA 1.76 2.2 -18.2 1.8 2.2

EBITDA / Interests(2) 8.5 8.3 2.7 8.5 8.3

Operational revenues increased as a result of an authorized tariff increase for gas transport activities as per CREG

resolution of May 2015.

Sales costs decrease as a result of an entry in 2015 of 50%, which was pending from an agreement entered with

Corpamag to complete a dredging contract of Caño Clarín.

Depreciations and amortizations increased as a result of adjustments to the calculation method to depreciate gas

pipelines under concession in March 2015.

Net profit experienced a reduction explained by increased operational expenses from greater financial costs.

Relevant facts of Promigas

22.03.2016 Promiga’s Shareholders Assembly was held on this date, attendance reached 84.24%, in which it

approved, among other issues, the partial election of the Board of Directors for the period March 2016 – 2017

22.03.2016 Project to distribute dividends approved by the Shareholders Assembly of Promigas S.A. E.S.P.

Table No 21 Capex – Promigas

1Q 2016 1Q 2015 Var %

COP Million 100,215 65,729 52.5 USD Million 33.2 25.5 30.0




3.4. GAS NATURAL

Table N° 22 - Overview of Gas Natural 1Q 2016

Control Natural Gas

EEB Participation 25%

Table N° 23 - Selected indicators of Gas Natural


1T 2016 1T 2015 Var % 1T 2016 1T 2015

Operating revenue 604,350 434,305 39.2 200.0 168.6

Cost of sales 462,505 288,082 60.5 153.0 111.8 Operating income 107,235 77,867 37.7 35.5 30.2 EBITDA Quarterly 114,285 87,794 30.2 37.8 34.1 EBITDA Margin (%) 18.9 20.2 -6.5 18.9 20.2 Net income 64,287 59,554 7.9 21.3 23.1 Net Debt / EBITDA LTM 2.6 2.7 -3.7 2.6 2.7 EBITDA LTM / interest LTM 15.8 15.2 3.8 15.8 15.2

Relevant facts of Gas Natural

30.03.2016 Project to distribute dividends approved by the Shareholders Assembly of Gas Natural.

Table No 24 - Capex- Gas Natural

1T 2016 1T 2015 Var %

COP Million 3,239 28,757 -88.7 USD Million 1.1 11.2 -90.4

3.5. REP and CTM Perú

Table N° 25 - Selected financial indicators of REP

USD Ml

1Q 2016 1Q 2015 Var %

Operating revenue 33,775 32,438 4.1

Cost of sales -15,878 -9,457 68

Operating income 15,865 15,244 4.1

EBITDA YTD 24,261 22,722 7

EBITDA Margin 71.8 70.0 2.5

Net income 9,683 8,182 18

Net debt (2) / EBITDA 1.9 2.1 -7.6

EBITDA / Interests (3) 8.1 8.4 -4.2

REP showed increased revenues and EBITDA as a result of the update of the tariff and the commercial start up of

enhancement 15 and 16 during January 2016.

REP Investment Projects:}




Enhancement 12: Amp. Transf 40MVA. Investment value US$8.4 million. Start up 1Q 2014.

Enhancement 13: New 220 kV Substation - Pariñas, Rep. Transmission line at 180 MVA (40 km). Investment value

US$ 17.2 million. Start up expected 3Q 2016.

Enhancement 14: New 220 kV Substation - Reque – New transformer at 100 MVA. Investment value US$ 23.4

million. Operation start up 2Q 2015

Enhancement 15: Enhancement Capac – Transmission line of 144.5 Km - Approx. 700 MVA. Investment value

US·44.6 million. Operation start up 1Q 2016

Enhancement 16: New Substation – Amarilis - Revamping at LT 75 MVA. Investment value US$16.5 million.

Operation start up 1Q 2016.

Enhancement 17: Capacity enhancement of substations. Investment value US$28.8 million. Operation start up

expected for 2Q 2017.

Table N° 26 - Selected financial indicators of CTM

USD Ml

1Q 2016 1Q 2015 Var %

Operating revenue 32,481 29,129 11.5

Cost of sales -12,268 -12,477 -2

Operating income 20,059 16,496 21.6

EBITDA YTD 28,638 23,970 19

EBITDA Margin (%) 88.2 82.3 7.1

Net income 9,859 2,958 233

Net debt (2) / EBITDA 6.3 5.9 6.5

EBITDA / Interests (2) 3.9 3.7 7.2

For CTM, the increase of operational revenues and EBITDA is the result of the commercial start up of the

transmission line Machupichu Cotaruse.

CTM Investment projects:

CONCES. LT MACC-ABAY-COT: TL 421 Km. Investment value US$107 million. Operation start up 3Q 2015.

500 Kv Transmission Line CONCESION - MANTARO – MARCONA: TL 916 Km Investment value US$446.9

million. Operation start up, 2Q 2017.

CONCESSION- TL LA PLANICIE –INDUSTRIALES: TL 17.3 Km. Investment value US$51.5 million. Operation

start up 3Q 2017.

CONCESION- TT FRIASPATA MOLLEPATA and ORCOTUNA Substation: TL 94.0 Km New substation

Orcotuna. Investment value US$52.2 million. Operation start up expected for 3Q 2017.




4. ANNEXES

Annex 1: Legal Notice & Clarifications

This document contains projections and estimates, using words such as “anticipate,” “believe,” “expect,” “estimate”,

and others having a similar meaning. Any information other than historical information included in this report, including

but not limited to the Company’s financial condition, its business strategy, plans, and management objectives for

future operations are projections.

Such projections are based on economic, competitive, regulatory and operational scenarios and involve known and

unknown risks, uncertainties and other important factors that could cause the Company’s results, performance or

actual achievements to be materially different from the results, performance or future achievements that are

expressed or implicit in the projections. For these, reasons, the results may differ from the projections. Potential

investors should not take them into consideration and should not base their decisions on them. Such projections are

based on numerous assumptions concerning the Company’s present and future business strategies, and the

environment in which the Company will operate in the future.

The Company expressly states that it will be under no obligation to update or revise any projections contained in this

document.

The company´s previous results should not be taken as a pattern for the company´s future performance.

Clarifications

Only for information purposes, we have converted some of the figures in this report to their equivalent in

USD, using the TRM rate for the end of the period as published by the Colombian Financial

Superintendence. The exchange rates used are as follows:

TRM as of March 31, 2016: 3,022.35

TRM as of March 31, 2015: 2,576.05

In the figures submitted, a comma (,) is used to separate thousands and a point (.) to separate decimals.

.

Annex 2: Definitions of EBITDA included in this report.

EBITDA is not an acknowledged indicator under Colombian or US accounting standards and may show

some difficulties as an analytical tool. Therefore, it must not be taken on its own as an indicator of the

company´s cash generation.

EBITDA: EBITDA for a specific period of time (LTM; Q1) has been calculated by taking operating income

(loss) and adding amortization of intangibles and depreciation of fixed assets for that period.

EEB Consolidated EBITDA for a period, consists of operating revenues of EEB and its consolidated

subsidiaries for such period, minus the sum of (i) cost of sales, (ii) administrative expenses allocated to

cost, (iii) administrative expenses and (iv) interest income on investments of pension assets, plus

dividends and interest earned (which includes dividends declared by EEB’s related companies, whether

such dividends are actually paid or not), taxes (other than income taxes), amortization and depreciation,

pension payments and provisions.

EEB Consolidated Adjusted EBITDA for a specific period is calculated taking the Consolidated EBITDA

for such period and adding the cash flows coming from investing activities during such period to the

extent attributable to capital distributions by EEB’s related companies.




Annex 3: Statement of Comprenhensive Income, 1Q2016

Table N° 27 – Estado de Resultados Consolidado EEB

Mar 15 Mar 16 Variación % Var.

REVENUE 709,669 927,537 217,868 30.7%

Natural gas distribution 313,144 377,249 64,105 20.4%

Natural gas transportation 275,488 376,712 101,224 36.7%

Electricity distribution 81,576 103,840 22,264 27.2%

Electricity transmission 39,461 69,736 30,275 76.7%

Cost of Sales Natural gas distribution (272,773) (303,741) (30,968) 11.3%

Natural gas transportation (103,836) (139,385) (35,549) 34.2%

Electricity distribution (76,866) (90,381) (13,515) 17.5%

Electricity transmission (21,884) (39,538) (17,654) 80.6%

Administrative expenses (30,243) (49,309) (19,066) 63.0%

Other income (expense), net 10,556 12,042 1,486 14.0%

Profit from operating activities 214,623 317,225 102,602 47.1%

Finance income 24,807 32,135 7,328 29.5%

Finance costs (106,393) (127,957) (21,564) 20.2%

Exchange gain (loss) (67,193) 64,736 131,929 196.3%

Equity Method 209,103 232,376 23,273 11.1%

Profit (loss) before taxes 274,947 518,515 243,568 88.5%

Tax (Income/Expense) (60,652) 12,026 72,678 -119.8%

Profit/loss 214,295 530,541 316,246 147.5%

Other comprehensive income (16,297) (199,101) (182,804) 1121.6%

Comprehensive income 197,998 331,440 133,442 67.4%

Owners of parent 205,972 508,720 302,748 146.9%

Minority Interest 8,323 21,821 13,498 162.1%

Profit (loss) 214,295 530,541 316,246 147.5%

Table N° 28 – Consolidated EBITDA – Breakdown

COP Millones

1T2015 1T2016

(-) Operating Costs & Expenses 724,106 941,328

(-) Administrative Expenses (475,358) (573,045)

(+) Dividends (34,124) (51,058)

(+) Depreciation (Costs | Exp.) 59,055 81,758

(+) Amortización (Cost| Exp.) 25,997 28,331

(+) Tax (Cost | Exp) 39,259 63,057

(+) Provisions 2,577 4,701

(+) Financial Income 215,679 817,047

(-) Interest in Autonomous Equity (2,942) (3,148)

(-) Hedging (4,058) (13,355)

EBITDA Consolidated Adj. 550,192 1,295,616

Annex 4 : EEB Consolidated and Standalone Financials as of 1Q 2016

http://www.grupoenergiadebogota.com/inversionistas/estados-financieros

http://www.grupoenergiadebogota.com/inversionistas/estados-financieros




Annex 5: Equity Method

Table N° 29 Share Profit in Associates. Empresa 1T 15 1T 16

Emgesa 113,793 100,110 Codensa 54,851 61,655 Gas natural 13,171 16,065 Rep 8,082 12,584 Transmantaro 2,921 12,813

Promigas 14,154 26,74 Emsa 2,139 2,177 Gebbras - 0,231

TOTAL 209,103 232,376

Annex 6: Terms Technical and regulatory

BLN: US billion (109)

CAC: Compound Annual Growth

COP: Colombian Peso

CHB: Central Hidroeléctrica de Betania

CTM: Consorcio Transmantaro

CREG: Comisión de Regulación de Energía y Gas de Colombia. (Colombia’s Energy and Gas Regulating

Commission). Colombia’s state agency in charge of regulating electric power and natural gas residential public

utility services.

DANE: Departamento Administrativo Nacional de Estadística (National Administrative Statistics Department).

Agency responsible for planning, collecting, processing, analyzing, and disseminating official statistics in

Colombia.

Gwh: Gigawatt hour; unit of energy equivalent to 1,000,000 kwh

GNV: Natural Gas for vehicles

IPC: Colombian Consumer Price Index

KM: Kilometers

KWH: Unit of energy equivalent to the energy produced by a power of one kilowatt (kW) for one hour

MEM: Mercado de Energía Mayorista de Colombia; Wholesale Energy Market in Colombia

Mm: million

Ml: thousands

MW: Megawatt, power unit or work which equals one million watts

N.A. Not applicable.

Non-Regulated Electricity User: electricity consumers who have a peak demand greater than 0,10 MW or a

minimum monthly consumption above 55.0 MWh

Natural Gas Non-Regulated User: user with consumption above 100 kcfd

CFD: Cubic feet per day

Proinversión: Peruvian agency that promotes private investment in Peru

SIN: Sistema Interconectado Nacional, National Interconnected System

STN: Sistema de Transmisión Nacional, National Transmission System




SF: Superintendencia Financiera – Financial Superintendency. State entity in charge of regulating, overseeing

and controlling the Colombian financial sector

TRM: Market Representative Exchange Rate; it is an average of the transactions carried out in peso–dollar, and it

is calculated daily by the SF

UPME: State agency responsible for planning Colombia’s mining and energy sectors

USD: US dollars

Annex 8: Overview of the parent company – EEB

EEB is an integrated energy company with interests in the natural gas and electricity sectors and operations in

Colombia, Peru and Guatemala.

EEB was founded in 1896 and is controlled by the District of Bogota (76.2% ownership). The company, as a

public company in Colombia, adhered to global standards of corporate governance.

EEB has an expansion strategy focused on the transmission and distribution of energy in Colombia and other

countries within the region.

EEB participates in the entire electricity value chain and in almost all the natural gas value chain, except for

exploration and production.

Since 2009, EEB shares have been traded on the Colombian stock market. In November 2011, EEB finished

a Re-IPO in the Colombian stock market for approximately USD 400 million.

EEB is one of the largest Colombian corporate debt issuers. In October 2007, EEB and TGI issued corporate

bonds in the international markets for USD 1.36 billion. In 2011 and the beginning of 2012 both companies

refinanced their notes extending their maturities and lowering its costs. Cálidda, our Peruvian subsidiary also

issued in April/2013 a USD 320 million bond.

Since 2009, EEB is traded on the Colombian Securities Exchange and is part of the local indexes COLCAP,

COLEQTY y COLIR

(1) EEB ownership through DECSA Special Purpose Vehicle. (2) EEB ownership directly and indirectly through IELAH Spain (additional 31.92%). (3) EEB effective ownership via direct and indirect stakes. (4) Through GEBBRAS Special Purpose Vehicle acquired on August 21, 2015 51% stake in four concessions for ~USD158 mm.

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