INVESTORS REPORT 3Q 2013 · Investors Report Third Quarter 2013 Contact: Grupo Energía de Bogotá Investors Relations Office Telephone: 571 3268000 ext 1675 / 1827 E mail: [email protected]

Investors Report

Third Quarter 2013

Bogotá D.C., 15 November 2013

INVESTORS REPORT 3Q 2013

1.EXECUTIVE SUMMARY AND RELEVANT FACTS .............................................................................................................. 1

1.1. Outlook of electric power and natural gas sectors serviced ..................................................................................... 1

1.2. Summary of EEB financial results 3Q 2013 ............................................................................................................. 2

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

2.FINANCIAL PERFORMANCE OF GRUPO ENERGÍA DE BOGOTÁ ................................................................................... 6

3.PERFORMANCE OF CONTROLLED COMPANIES ............................................................................................................. 9

3.1. EEB – Transmission Business ...................................................................................................................................... 10

3.2. DECSA – EEC ............................................................................................................................................................. 12

3.3. TGI 12

3.4. CALIDDA ...................................................................................................................................................................... 13

3.5. CONTUGAS ................................................................................................................................................................. 14

3.6. TRECSA ....................................................................................................................................................................... 14

3.7. EEBIS Guatemala ........................................................................................................................................................ 15

4.PERFORMANCE OF COMPANIES WITHOUT CONTROL................................................................................................. 16

1.4. EMGESA ................................................................................................................................................................ 17

1.5. CODENSA ............................................................................................................................................................. 19

1.6. PROMIGAS ............................................................................................................................................................ 21

1.7. GAS NATURAL ...................................................................................................................................................... 22

1.8. REP and CTM Perú ............................................................................................................................................... 23

5.ANNEXES ............................................................................................................................................................................ 25

Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report ....................................................... 25

Annex 2: Definitions of EBITDA included in this report. Consolidated adjusted EBITDA reconciliation .............................. 25

Annex 3: EEB Consolidated Adjusted EBITDA UDM and Quarterly ................................................................................... 26

Annex 4: Link to EEB´s consolidated and stand-alone financial statements ....................................................................... 28

Anexo 5: Términos técnicos y regulatorios ......................................................................................................................... 28

Annex 6: Tables and graphics footnotes. ............................................................................................................................ 29

Annex 7: Overview of EEB .................................................................................................................................................. 30

Investors Report

Third Quarter 2013

Contact: Grupo Energía de Bogotá Investors Relations Office Telephone: 571 3268000 ext 1675 / 1827 E mail: [email protected] / [email protected] / [email protected]

1. EXECUTIVE SUMMARY AND RELEVANT FACTS

1.1. Outlook of electric power and natural gas sectors serviced

Table N° 1 - Overview of the electricity 3Q 13

Colombia Perú Guatemala

Installed capacity – MW 14,473 8,218* 1,282

Demand - GWh 45,379 29,485 2,247

Demand growth 3Q 13 / 3Q 12 - % 2,9 6,3 -0.5

Growth drivers 3Q 13 / 3Q 12

Value extracted from the annual statistics of the COES in 2012. It is estimated that until September of 2013 the value is at 8,218 MW

The increase in demand at a 6.3% from 3Q 12 to 3Q 13 is influenced mainly by the regulated customers.

The Guatemala Energy demand fell slightly in 3Q 2013 over 2Q 2013 and 3Q 2012 as a result of higher hydro generation and a more efficient dispatch that allowed a reduction in losses of the system.

Sources: XM, UPME, COES – Perú, AMM – Guatemala

*Value extracted from the annual statistics of the COES in 2012. It is estimated that until September of 2013 the value is at 8,218 MW

Table N° 2 - Overview of natural gas sectors 3Q 13

Colombia Perú

Reserves, proved and probable - TCF (2012) 5.7 23.1

Domestic demand - Mm cfd 1,262 GBTUD* 1,219 MM PCD

Change in domestic demand 3Q 13 / 3Q 12 % 17.9 3.1

Explanation for demand variation

The two main causes of the growth of domestic demand were (*) the thermoelectric consumption (+ 35.6%) caused by levels lower than water inputs in the country; and (*) increased consumption of NGV. Since different companies joined and in the form of bonds have given a boost to the conversion of petrol vehicles to natural gas, in such a way that in the run of the year 2013 have become approximately 23,000 vehicles, increasing by 5.4% converted units.

The variation between 2012-3Q/3Q-2013 was mainly due to the consumption of Lima.This was mainly due to increased consumption of Enersur, Kallpa, Egasa-Egesur and consumption of Lima.

Sources: UPME, CON, MEM, Osinergim * Include only July August 2013

mailto:[email protected]



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Third Quarter 2013


1.2. Summary of EEB financial results 3Q 2013

At the closing of 3Q 2013, net profit in Grupo Energía de Bogotá reached COP 784 billion, growing COP 148 billion

when compared to the same period of the previous year, meaning an increase of 23%. Results are explained by

increases in operational revenues, amounting to 1.45 trillion at the closing of September, vis-à-vis COP 1.16 trillion at

the closing of the same month last year, representing an increase of 25%, due mainly to growth in revenues in the

natural gas business: transport in Colombia, TGI, (new tariff structure in place 1Q 13) and coming on stream of

Cusiana Phase II (August 1st 2012) and distribution in Peru, Cálidda.

On the other hand, operational profit grew by 29%, reaching COP 535 billion at the closing of September 2013,

compared to COP 416 billion for the same period in the previous year, as a result of a sound behavior of revenues

and decreased growth in operational expenses in the natural gas transport business.

Non-operational results show an increase of COP 276 billion in terms of decreed dividends in favor of EEB,

particularly those from Emgesa, Codensa, Gas Natural and Promigas, as well as a reduction in COP 156 billion in

financial expenses, related to EEB and TGI’s debt management operations performed in recent years (2011 – 2012)

Thus, these two line items exceed the effect of net expenditures in the difference in the foreign exchange account,

resulting from the Group’s financial obligations denominated in USD, which were the result of the devaluation of COP

during this year, although such record is only for accounting purposes and does not relate to cash expenditure.

Lastly, it is important to highlight that Group’s consolidated EBITDA, including dividends received from participated

companies at the closing of September 30, grew by 35% when compared to the same period in 2012, amounting COP

1.49 trillion.

Table N° 3 - EEB´s consolidated financial indicators

COP Million 3Q 13 3Q 12

Operating revenue 1,451,107 1,161,375

Operating income 535,747 416,207

Consolidated Adjusted EBITDA Qtrly. 248,733 202,007

Consolidated Adjusted EBITDA LTM 1,668,543 1,455,541

Consolidated EBITDA LTM 1,668,543 1,455,541

EBITDA YTD 1,491,682 1,102,533

Dividends and reserves declared to EEB 799,853 523,953

Net income 784,297 635,756

Dividends and reserves declared by EEB 403,604 319,964 Latest international credit ratings: 1,451,107 1,161,375

S&P – May 13 BBB-; stable Fitch – Nov 13 BBB-; stable

Moody’s - Nov 12 Baa3; stable




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Third Quarter 2013


1.3. Relevant facts of EEB and Grupo Energía de Bogota

03.07.13. By means of Resolution 2121 of 3 July 2013, EEB was authorized by the Ministry of Finance and Public

Credit to begin negotiations aimed at entering into foreign credit operations, similar or related thereof, amounting to

USD 479 million or its equivalent in other currencies, which resources will be destined to partially finance the electric

power expansion plan in Colombia, Guatemala and Peru from 2013-2017. Furthermore, the Ministry authorized the

Company to begin negotiations to grant guarantees to its affiliate companies in Guatemala, TRECSA and EEBIS, for

up to US$ 230 million or its equivalent in other currencies.

18.07.13 ECOPETROL S.A. informed the Colombian Financial Superintendence that its Board of Directors had

approved carrying out the required processes to transfer title of its investment in Empresa de Energía de Bogotá S.A.

E.S.P and thus contribute to fund its investment plan. According to ECOPETROL S.A. the administrative and

governmental authorizations required in this transfer of title process have not been granted to date. It further stated

that the date in which such transfer may be carried out has not been defined. The date in which such sale may be

conducted has not been defined. The legal process applicable in this case will be framed within Law 226 of 1995,

amidst which article 60 of the Political Constitution is performed, as regards the sale of state owned stock, taking

measures for its democratization and enacting other provisions thereto.

15.08.13. EEB’s Board approved to start the administrative and legal processes for acquiring interest in ISAGEN.

EEB’s Board approval confirms its interest in seeking new business opportunities in Colombia and in the region. Based on this authorization EEB have started administrative and legal processes in order to prepare an offer as soon

as it is communicated to the market. In the same way, currently EEB is analyzing the best way for participating in this

process, which might include strategic alliances.

17.09.13. Ministry of Mines and Energy issued Resolution 9 0772 whereby it adopted the Transmission Referenced

Expansion Plan 2013-2027. This plan recommends 9 projects which will be executed through public biding

processes. Additionally, it was announced that also the 5 projects included in the Expansion Plan 2012-2015 will be

included in the biding processes. Estimated investment amount for the 14 projects is USD 2,200 MM in terms of

constructive units. The opening of these processes is expected by 4Q 13 and 1H 14.

24.10.13 BVC published its fourth quarter rebalance of the COLCAP Index. EEB, which is part of the COLCAP index

maintains position 15, representing a 2.251% basket share participation, and COLEQTY index, in which it holds

position 18, representing a 2.390% basket share participation.

01.11.13 For a second consecutive year, Fitch Ratings ratified EEB’s corporate debt rating in local and foreign

currency, maintaining rating ‘BBB-’ with stable perspective. This rating also applies to EEB 2021 notes amounting

USD 610 million issued in 2011. Locally, Fitch Ratings also confirmed EEB’s ‘AAA(col)’ rating, the highest in terms of

credit quality.

15.11.13.. Empresa de Energía de Bogotá S.A. E.S.P successfully reopened its bond expiring on November 2021

through private placement led by the Deutsche Bank, who acted as the runner bank. Face-value amount of this

reopening reached US$112 million, at a price of 101.75, which meant a yield to maturity of 5.847%, a lower rate

when compared to the initial coupon rate of 6.125%; the remaining maturity is eight (8) years. This reopening is

totally fungible with bonds issued in the initial transaction, which will increase bonds liquidity and potential valuation

on secondary markets. The transaction was authorized by the General Directorate of Public Credit and National




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Third Quarter 2013


Treasury by means of Resolution 2121 of 3 July 2013 and Resolution 3690 of 5 November 2013, and had been

issued a favorable opinion from the Colombian National Planning Department – DNP on 17 May 2013.Resources

thereof, together with additional resources from the company’s cash generation will be used to finance investments in

Guatemala, hence strengthening the transmission infrastructure in this Central American country, through its affiliates

Trecsa and EEBIS.

27.11.13. La Empresa Energía de Bogotá (EEB), held the second and last payment of dividends to the Capital

district, amounting to COP 153.9 billion, pursuant to the shareholder meeting last March 21, when he decreed

dividends by COP 403.6 billion, which represented an increase of 26% compared to what was declared in 2012.

TGI

− 01.11.13 Fitch Ratings ratified TGI corporate debt rating in local and foreign currency, maintaining ‘BBB-’ grade,

with stable perspective.

− TGI’s Board of Directors approved investments amounting to USD 20 million for the implementation of the Two-

way pipeline Ballena – Barranca to transport natural gas in both directions, as well as investments amounting to

USD 5 million to make adjustments to the interconnection system with Venezuela to import gas from that

country.

Cálidda

− By means of Supreme Decree. N° 029-2013-E "Provisions to Improve Operations of Natural Gas", were

approved, introducing a series of changes to National Regulations for the Construction of Facilities, amongst

which one may highlight the following: () the obligation of construction companies to build internal facilities that

will allow supply to those multifamily buildings located in districts where such infrastructure actually exists or may

exist, () the extension of terms in the promotion to connect household customers (discount in internal facilities),

() the authorization to the Concessionaire to outsource enabling activities for the supply of internal facilities, and

() the authorization for improvements in materials, design and implementation of internal facilities, provided the

latter is aligned with laws in force and industry international standards.

− During 3Q 2013, 16,238 connections have been performed, a historic record in September which reached 6,177

connections. Closing of September, Cálidda has 165,850 connected to its network.

− The Five-year Plan (2014 -18) was submitted to the regulating entity in Perú during July 2013, which will be

jointly approved in May 2014, together with the rate proposal (2014 - 2017). It is worth mentioning that the rate

proposal was submitted to the Regulator on October.

Contugas

− 30.09.13. Contugas had the financial closing of its new 6-year bullet type financing of USD 310MM. This is a

new syndicate loan in which Banco de Bogotá, Davivienda and CAF have participated. It will be used to pay the

bridge loan granted in 2012 for USD 215MM and finance the rest the investments costs and pending project

expenses.




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Third Quarter 2013


− 30.09.13 Contugas has over 2.950 “enabled” clients (with more than 16.000 household sales performed and

13.000 internal facilities built pending enabling; of the latter, 1.820 facilities have been connected to the gas

service and will be declared “enabled” upon execution of the addendum to the concession contract, which

execution is foreseen during 4Q 2013.

CTM

- 27.08.13. Board of directors accepted the assignment of the right to conduct the design, financing, construction,

operation and maintenance of a 500kV transmission line of 900 Km in length and its associated substations.

This project was awarded by Proinversión on July 18th

2013 to ISA S.A. The referenced investments amounts to

USD 413 million and will generate annual revenues close to USD 41.5 million. The concession term extends for

30 years as of the beginning of operations. Comprehensive management of the project will be the responsibility

of REP. This project is highly significant to ensure electric power supply to the south of Peru and maintain

economic growth. Construction works will take 38 months.

REP

- REP is the power company with the best reputation in Perú according to.the second edition of Merco Peru,

where 100 leading companies holding the best reputation attended together will the 100 most responsible

companies with the best corporate governance, Red de Energía del Perú was ranked number.1 within the

energy sector and 80 in the total ranking. This ranking is prepared by Monitor Empresarial de Reputación

Corporativa (MERCO – for its Spanish acronym), the only monitor verified in the world and audited by KPMG;

the ranking is based on the perceptions from top managers, financial analysts, NGO representatives, union

members, consumers, journalists, opinion leaders and citizens.

Promigas

− Implementation of a new tariff structure to the natural gas system in the Caribbean coast starting from Nov.

20th, 2012.

− Promigas selected to benefit with connection of natural gas for more than 150 000 users in the North of Peru,this

will maintain its growth strategy. Promigas continues with its purpose of supporting and promoting economic

and social development in different regions through the massive use of natural gas.




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2. FINANCIAL PERFORMANCE OF GRUPO ENERGÍA DE BOGOTÁ

Table N° 4 - EEB’s consolidated financial results

COP Million Variance

USD Million

3Q 13 3Q 12 %

3Q 13 3Q 12

Operating revenue 1,451,107 1,161,375 24.9 757.9 645.0

Cost of sales -749,282 -597,582 25.4 -391.3 -331.9

Gross profit 701,825 563,793 24.5 366.6 313.1

Operating expenses -166,078 -147,586 12.5 -86.7 -82.0

Operating profit 535,747 416,207 28.7 279.8 231.2

Dividends 799,853 523,953 52.7 417.8 291.0

Non-operating expenses -431,744 -167,045 158.5 -225.5 -92.8

Net income before taxes and minority interest 903,856 773,115 16.9 472.1 429.4

Minority interest -52,280 -83,25 -37.2 -27.3 -46.2

Provision for income tax -67,279 -54,109 24.3 -35.1 -30.1

Net income 784,297 635,756 23.4 409.6 353.1

Operational revenues grow due to () increase in the distribution of natural gas in Peru resulting from new residential

and commercial enabled connections/clients and connected to Cálidda and Contugas networks; and () Greater fixed

and variables charges resulting from new TGI natural gas transport contracts with carriers, due in part to the coming

on stream of (Cusiana Phases I and II and Ballena – Barranca) together with TGI’s tariff readjustment in force from

2013-2017.

On the other hand, operation costs and expenses have also increased as a result of growth in TGI’s infrastructure,

mainly due to increase maintenance, fuel gas and depreciation of infrastructure.

In TGI, operational expenses show lover fees and reduced tax on equity resulting from a reclassification and

acknowledgment of the former as non-operational expense.

Non-operational results are led by dividends received from non-controlled companies, amounting to COP 799 billion,

due to reduced financial expenses on account of debt management operations undertaken by TGI and EEB in 2011

and 2012. The devaluation of the Colombian peso during the first nine months of 2013, had a negative impact on the

foreign exchange account, moving from revenues of COP 184 billion as of September 2012 to expenses of COP 200

billion as of September 2013, as a result of updating financial obligations of the Group denominated in USD, which is

only for accounting purposes and does not correspond to cash expenditures.

Finally net profit close in COP 784,297 million, which means a growth of 23.4% compared to the same period of previous year.




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Table N° 5 - EEB’s Financial indicators

COP Million USD Million

3Q 13 3Q 12 Var % 3Q 13 3Q 12

Consolidated adjusted EBITDA Qtrly 248,733 202,007 23.1 129.91 112.19

Consolidated adjusted EBITDA LTM 1,668,543 1,455,541 14.6 871.46 808.40

Consolidated EBITDA LTM 1,668,543 1,455,541 14.6 871.46 808.40

Consolidated EBITDA margin % 61.2 63.5 -3.5 61.2 63.5 OM: > 2.25

Increased in consolidated EBITDA is explained by improved operational results generated from controlled

subsidiaries. Also there is an increase in revenues on account of dividends, resulting from improved performance of

participated companies.

NOTE: According to the definitions of the contract on the notes issued by EEB on November 2011, leverage indicators

and interest coverage are calculated based on year to date EBITDA, which includes capital reductions received by EEB

from its affiliate companies.

Table N° 6 - EEB´s Consolidated debt structure

3Q 13 Part. 3Q 12 Part.

3Q 13 3Q 12

COP Million % COP Million % USD Million USD Million

Financial debt in COP 5,948 0.1 174,41 5.2 3.1 96.9

Financial debt in USD 3,820,481 94.1 2,958,191 88.0 1,995.4 1,643.0

Derivatives position 235,654 5.8 227,144 6.8 123.1 126.2

Total financial debt 4,062,084 100 3,359,745 100.0 2,121.6 1,866.0

Net debt/ Consolidated Adjusted EBITDA LTM – OM:< 4.5 1.60 1.81

Consolidated Adjusted EBIDTA LTM/ Interests – OM: >2.5 9.10 7.97

202,007 176,861

1,010,355

232,594 248,733

3Q 12 4Q 12 1Q 13 2Q 13 3Q 13

Graphic 2 - Consolidated Adjusted EBITDA -Quarterly COP MM

3Q 12 4Q 12 1Q 13 2Q 13 3Q 13

ConsolidatedAdjusted EBITDA -

LTM1,455,5411,279,3941,604,9161,621,8171,668,543

QoQ % -2% -12% 25% 1% 3%

Graphic 1 - Consolidated Adjusted EBITDA - LTM COP MM




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The interest coverage indicator shows an small decrease due to higher financial expenses originated by new

indebtedness in some subsidiaries in the present year.

Graphic 3 – Evolution debt indicators

Indebtedness in USD increased as a result of an issuance of a bond in Cálidda and a new syndicated loan in

Contugas.

7 14 14 14

128

14

229

7

610

750

320

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Graphic 4 - Consolidated Debt Maturity Profile USD MM – Total USD 2,121 MM




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3. PERFORMANCE OF CONTROLLED COMPANIES

Table N° 7 – Financial indicators of Controlled investments 3Q 13

COP Million USD million

EEB TGI Calidda* EEB TGI Calidda*

Trans Trans

Operational revenue 78,126 648,369 510,213 40,8 347.0 296.8

Operational income 37,534 406,217 67,894 19,1 217.2 37.5

EBITDA LTM 64,324 650,060 118,440 33.6 350.2 66.7

Net income 784,297 112,530 14,096 409,6 60.4 9.5

*USD Thousands

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

Graphic 5 – Controlled companies investment GEB 2013

USD 814.6 MM

Table N° 8 - Overview of the EEB group – Controlled companies expansion projects

Project / Company Country Sector USD MM Status In operation

La Sabana – TGI Colombia T NG 55 Under construction 3Q 14

Cusiana/Apiay – TGI Colombia T NG 247 Planning 4Q 15

Sistemas regionales - TGI Colombia T NG 67 Planning 14

ICA Perú - Contugas Perú T + D NG 350 Under construction 1Q 14

Lima Callao - Cálidda Perú

D NG -Network expansion 500 Under construction 16-18

Guatemala - TRECSA Guatemala T E 376 Under construction 14-15

Subestaciones - EEB Colombia T E 308 Under construction 13-15

Ingenios – EEBIS Guatemala T E 44 Planning 15

TGI 16%

Contugas 32%

Cálidda 16%

Trecsa 16%

EEBIS 4%

EEB Transmission

16%




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3.1. EEB – Transmission Business

Table N° 9 - EEB´s selected transmission business indicators

3Q 13 3T 12 Var %

Operating income - COP MM 37,534 39,405 -7.1

EBITDA Qtrly. - COP MM 16,538 15,843 4.4

EBITDA LTM - COP MM 64,324 64,83 -0.8

Investments - COP MM 53,931 22,423 140.5

Infrastructure availability - % (1) 99.95 99.93 0.020

Compensation for unavailability - % (2) 0.1116 0.0010 11060.0

Maintenance program compliance - % (3) 100 100 0.0

Participation in Colombia’s transmission activity - % (4) 7.95 8.1 -1.9

Footnotes in annex 6

Technical indicators show stability in the operational management of the company while maintaining higher tax

regulation compliance without detriment to the company.

Investments of the period include the amounts associated with the construction of the expansion projects in

Colombia national transmission system.

Progress on EEB investment projects in the Transmission Business:

Armenia Project: At the closing of 30 September 2013, the Environmental Public Hearing took place on 15

August 2013 at the Filandia Colegio Bethlemitas Aula Máxima, highlighting the inappropriate handling of the

meeting by the ANLA moderator. EEB was notified on 24.09.13 of Judicial Decree 3129 from ANLA, regarding

additional information, which was delivered on 24 October 2013. In the Contractor’s construction yard for the

transmission lines, INGEDEMCO there are metallic structures, conductor wires, guard wire and fixtures.

Regarding the substation, GIS arrived in Colombia on 13 July 2013. The liquidation process and payment of

levies and VAT was completed and customs (DIAN) authorized the release of the equipment on 23 August. On

26 September, equipment and fixtures inspection took place in the Buenaventura port, while waiting for the

resolution granting the environmental license to the project. Regarding easements, 54 tower sites have been

negotiated and are ready for registering deed in public record and legal inspection, representing 65.1% of the total

tower lines of the project. Progress of project is at 67%.

Alférez Project: As of 30 September 2013, Notice of Environmental License for the Project – Resolution 563 of 7;

June 2013, on 11 June 2013, programming of compliance activities regarding Environmental License of the




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construction process. The structures, insulators, conductor wire and guard wire of transmission lines are at 100%

at the EIP Contractors yard, and civil works are also at 100%. Regarding substation, GIS arrived at the Colombian

port on August 3. Once the liquidation process and payment of levies and VAT was completed, Customs (DIAN)

authorized the entrance to the country. On 29 August, twenty-one (21) skid plates have arrived to the site,

progress of GIS building is at 99% and progress of the control building is at 70%. The response from the Ministry

of Mines and Energy is required, regarding a request to modify the Operation Start up Date set by EEB. Even

though with the initiation of the construction phase, the project’s performance has improved, in-house reviews

evidence that it will not be possible to start operation before 30 November 2013, due mainly to delays in the

environmental licensing process. Progress of project is at 95%.

Tesalia Project: As of 30 September 2013, for the Tesalia – Altamira stretch (51.4km), by means of Resolution

No. 0942 of 17.09.13, ANLA granted the Environmental License. Regarding the design of the line, the completion

of the final design report is in progress. Regarding the Tesalia – Alférez stretch (191km), where 66 km of

templates were placed, progress of 35% and the reinstatement activity was initiated, showing progress of 3%. As

regards the Environmental Impact Study, socialization activities in non-ethnical communities were reactivated as

such activities had been interrupted due to the Agrarian strike. As per Security Deed No. 003, the Commander of

mobile brigade 26 stated some difficulties to ensure security conditions, which will interrupt indefinitely the survey

stage in the municipality of Rio Blanco, district la Herrera in the Tolima department. The foregoing represents a

civil disorder situation beyond the company’s control. With respect to previous consultation process in three

indigenous communities, the pre-consultation was obtained on 16.09.13 on the Protected Settlement Las

Mercedes. As regards the Tesalia substation, there is progress in electrical and civil studies and designs of said

substation and the enhancement of Altamira substation. Progress in the project is at 59.01%.

Norte Project: By September 30th, 2013. The progress in the detailed design of the transmission lines shows

an advance of 48%. Also the environmental diagnosis of alternatives is being developed within the framework of

the environmental management with an advance of 96%. 90% Of the total of socialization meetings have been

conducted in accordance with schedule. According to the results of the study of flooding of the chosen sites for

the substations, confirmed these lots to continue with your purchase. The project presents an advance of 10%

with respect to the scheduled 13%

SVC Tunal 1: By September 30th

, 2013. Boot order was given to EPC contractor on August 1. The activities

began with the detailed design of the project with an advance of 8%. There has been a progress in the

management contract for the premises where the SVC, which is owned by the DADEP-Department

administrative of the Ombudsman of the space public in Bogotá, will be built. In environmental management is

being developed document for modification of the environmental management plan of substation Tunal and other

necessary permissions with an advance of 20%. The project presents a 4% equal to the programmed advance.




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3.2. DECSA – EEC

Increase in operational revenues is due to greater sales of electric power.

Operational profit grows at a lesser pace when compared to growth in operational revenues, mainly as a result of an

increase in () costs on account of maintenance to networks, lines and pipelines and the inventory of networks, () due

to readjustments of prices to operating contracts from higher dispersion levels to those calculated upon execution

thereof, () greater operating requirements aimed at improving safety, and () increase in the number of personnel vis-

à-vis staff 2012.

3.3. TGI

Table N° 10 - EEC’s selected indicators - Controlled by DECSA*

3Q 13 3Q 12 Var %

Number of clients 262,315 252,271 4.0

Operating revenue - COP MM 212,767 208,582 2.0

Operating income - COP MM 37,148 40,952 -9.3

EBITDA Qtrly. - COP MM 46,91 53,312 -12.0

EBITDA LTM - COP MM 67,103 70,184 -4.4

Net Income - COP MM 19,192 23,784 -19.3

Dividends and reserves declared to EEB - - -

Losses - % (1) 4.5% 5.9% -23.9

(*) Controlled by DECSA


Tabla N° 11 - TGI’s selected indicators

3Q 13 3Q 12 Var %

Operating revenue -COP MM 648,369 516,32 25.6

Operating income -COP MM 406,217 282,71 43.7

EBITDA YTD - COP MM 515,443 385,133 33.8

EBITDA LTM - COP MM 650,060 499,841 30.1

Net income - COP MM 112,530 169,775 -33.7

Transported volume - Mm cfd 446 421 6.1

Firm contracted capacity - Mm cfd 630 619 1.6

International debt ratings

S&P - May 13: BBB-, stable

Fitch - Nov 13: BBB-, stable

Moody’s Marzo 12 Baa3, stable




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Third Quarter 2013


Operational results at the end of the quarter are growing by 43.7%, due to increase in operational revenues,

which increased by 25.6% at the closing of 3Q 2013, when compared to the same period of the previous year,

mainly as a result of: () New rate scheme, entering into force as of 1Q 2013, () Start-up of Cusiana Phase II; ()

Increase of in firm contracts; and () increase in transported volume.

Regarding non-operational line items, the loss of the valuation on hedging operations and the difference in the

exchange rate have only an accounting effect and not a cash effect, and they represent the accounts showing

greater impact during the period, resulting in net profit of COP 112,530 million, COP 57,245 million less, when

compared to 3Q 2012.

Progress in TGI Investment Projects:

The construction of the natural gas compression station La Sabana, which is part of the gas pipeline expansion

project having the same name, progresses by means of two contracts:

− EPC Contract to prepare basic and detailed design, procurement (except compression units) construction,

assembly, installation and start up of station; to date, basic project engineering has been completed,

progress is made in preparing detailed engineering, in the purchase of long-term delivery equipment in

charge of EPC, and the mobilization in site of temporary facilities for the construction stage. The EPC

auditing contract was ordered to start on August 2013.

− Purchase of compression units and ancillary systems, contracted with a German company, which will

deliver the compression units during 1Q 2014.

− With respect to licenses, the project has the environmental license granted by the National Authority for

Environmental Licenses (ANLA – for its Spanish acronym) on January 2013. For the construction license,

there is a planned strategy to obtain the license by stages. The first partial construction license was granted

in September and will allow the commencement of earth movements and fencing of the station. For the

total construction license, which will enable carrying out cementing and structure works, the documents

including detailed engineering were submitted in October 2013.

3.4. CALIDDA

Table N° 12 - Cálidda’s selected indicators

3Q 13 3Q 12 Var %

Number of clients 141,146 94,093 50.0

Operating revenue - USD Thousands 296,765 265,933 18.8

Operating income – USD Thousands 37,529 36,085 -1.6

EBITDA YTD – USD Thousands 50,500 48,288 -1.6

EBITDA LTM – USD Thousands 66,659 64,631 2.2

Net Income – USD Thousands 9,540 19,923 -73.5

Cálidda in its annual variation with respect to September 2012, evidences greater operational revenues on gas

sales due to greater distributed volume (+5%, +USD 2.3MM) and a greater average rate (+60%, +USD 29MM).




Investors Report

Third Quarter 2013


Operational profit grew at a lesser pace when compared to operational revenues, as a result of increase costs in

the sale of gas due to greater volume (+5%, +USD 2.3MM) and a greater average rate (+60%, +USD 39.5MM).

Net profit also decreased as a result of increase in non-operational expenses due to payment of the debt (+USD

7.7MM), foreign exchange (+USD 7.4MM), interests in notes (+USD 7MM) offset with financial expenses vis-à-vis

discounted value (-USD 5.8MM).

Progress in Calidda investment projects:

The construction of the Main Grid Expansion project, which was concluded in May, increased the capacity of

Cálidda’s natural gas distribution system from 255 MMCFD to 420 MMCFD. The commercial operation was initiated

on August 4th.

On June 2013 were completed construction in charge of Cálidda for the interconnection of the new thermal power

plant: Termochilca

3.5. CONTUGAS

30.09.13 Contugas closed its 6-year bullet type financing amounting to USD 310 million. This is a syndicate loan in

which Banco de Bogotá, Davivienda and CAF have participated. This new financing will be used to paid the bridge

loan of 2012 amounting to US$ 215 million and to finance all other investments costs and project expenses.

Progress in Contugas investment projects:

At the closing of 3Q 2013, execution percentage was set at 86% with a cumulative investment of USD 258 million.

The project comprises over 340 Km of main network and high-pressure branch line and over 700 Km of low-

pressure polyethylene networks. Estimated capacity of the gas pipeline is 375 Mm cfd. At the closing of 3Q 13,

volume of in-firm contracts by Contugas reached 41.14 mm cfd or m3 std/day and the volume corresponding to

contracts under negotiation reached 41.14 mm cfd or m3 std/day.

Peruvian Government awarded Contugas 200 days of force majeure and due to this commercial operation will start

by April 7, 2014 and achieve year-round ratings accumulated by a number close to 30,000.

Enabling 60% of the fishing sector in Chincha.

3.6. TRECSA

Progress of Trecsa investment projects: To date progress of the project is set at 59.6%.

There are 607 (30%) structures with civil work completed and 486 (24%) structures assembled.

Municipal endorsements: There are 57 municipal endorsements (76%)

Lots: There are agreements entered into with owners of 606 km (73%), 531 km have registered deed in

public record (64%) and 373 km are available (45%) for construction works of transmission lines.

Transmission lines: There are 958 available sites (47%) for construction of structures required for

transmission lines.

Substations: Progress reached 61% in civil works of substations (work is performed in 14 substations),

progress of 43% in mounting (in 10 substations) and 9% in tests (2 substations)




Investors Report

Third Quarter 2013


ECUT: 1649 forests licenses have been obtained (ECUTS before then INAB) representing 65% of total

estimated licenses.

Easements or rights of way:

TRECSA will start in December 2013 entry into partial operation throughout the Pacific and La Vega

substations. Its entry into full operation will be in 2015.

3.7. EEBIS Guatemala and Perú

Guatemala EEB engineering and services is constituted, a joint-stock company whose objective is to provide

comprehensive solutions for electrical engineering and associated areas.

Progress of EEBIS Guatemala investment projects:

Currently the company is executing a project consisting in the construction of 90km of transmission lines, 4

new substations and enlargement of existing 3. This project will develop with 5 sugar mills located in the

southwest of the country. The contract was formalized and made official on July 11th. The investment in the

project amounts to USD 43.4 million approximately. An advance in recruitment, to date is the following:

contract by EIA and the fieldwork for the design of LT. The contract for design of substations was signed on

September 27th

.

Progress of EEBIS Peru investment projects:

Board of Directors session of GEB that was held the last April 18th 2013, authorized the creation of a

subsidiary in Peru, in order to materialized the market opportunities offered by this country, particularly in the

energy sector (gas and electricity). The company was constituted on June 25th 2013.

The Business Plan was structured from the perspective of five points (i) structure of the environment -

market (ii) ideological structure; (iii) structure mechanics; (iv) human resources and (v) financial structure.




Investors Report

Third Quarter 2013


4. PERFORMANCE OF COMPANIES WITHOUT CONTROL

Table N° 13 - Non-controlled investments financial indicators 3Q 13


Emgesa Codensa Gas Natural Promigas REP CTM

Operating revenue 1,811,743 2,384,261 962,139 213,655 89.8 61.1

Operating income 1,008,344 619,625 259,774 98,073 29.4 30.7

EBITDA YTD 1,460,359 1,095,762 283,540 113,894 55.2 48.7

Net income 646,141 389,189 202,567 368,258 16.4 4.5

Dividends and reserves declared to EEB 405,659 264,951 62,630 57,593 8 -

Capital reductions to EEB - - - - - -

*EBITDA YTD

Table N°14 - Expansion projects of non-controlled companies 3Q 13

*Note: Investments by 3Q 2013 for COP 149,069 MM oriented to the improvement of the services quality to the strengthening of the infrastructure-oriented maintenance and expansion of networks.

Graphic 6 – Non Controlled companies investment 2013

Project Company Sector Country Capex

In operation USD million

Quimbo Emgesa G electricity Colombia 837 1H 2015

New demand Codensa D electricity Colombia 77* 13

Concession expansion REP T electricity Perú 94 13 - 15

Concession expansion and new con. CTM T electricity Perú 606 13 - 16

Expansions PROMIGAS T + D natural gas Colombia 137 13 - 14




Investors Report

Third Quarter 2013


4.1. EMGESA

Table N° 15 Overview of Emgesa 3Q 2013

Instaled capacity - MW 2,914

Capacity´s Composition 10 Hydro y 2 thermo

Generation - Gwh 9,623

Sales - Gwh 12,103

Controlled by Enel Energy Europe S.R.L

EEB’s stake 51.5% - 37.4% ordinary shares; 14.1% preferred non-voting shares

For the period under analysis, Emgesa keeps its sales structure 71% through long-term bilateral contracts and 29%

through the spot market, which average prices were greater due to low rainfall levels. Similarly, it achieved 80% of

own generation.

8,784

3,521

12,305

8,628

3,475

12,103

Contracts Spot Total

Graphic 7 - Sales GWh

3Q 12 3Q 13-1.8%

-1.3%

-1.6%

10,248

1993.9

162.6

2157

9,623

2522.2

94.2

2616

Production Contracts Spot Total

Graphic 8 - Supply GWh

3Q 12 3Q 13-6.1%

26.5% 21.3% -42.1%




Investors Report

Third Quarter 2013


Table N° 16 - Selected financial indicators of Emgesa


3Q 13 3Q 12 Var %

3Q 13

3Q 12


Cost of sales 784,427 630,742 24.3 409.7 350.3

Administrative expenses 18,972 21,960 -13.6 9.9 12.2

Operating income 1,008,344 931,235 8.2 526.6 517.2

EBITDA LTM 1,460,359 1,369,573 6.6 765.3 760.7 Net income 646,141 581,515 11.1 337.4 322.9 Dividends and reserves declared to EEB

405,659

345,963

17.3 211.9 192.1

Capital reductions to EEB - - -

Net debt / EBITDA LTM 1.37 1.38

EBITDA / Interests 12.49 10.84


Operational profit grew at a lower pace than operational revenues as a result of greater fuel consumption due to

greater thermal generation during the period and larger purchase of energy in the spot market.

Net profit increased by 11.1% due mainly to () greater operational revenues generated in the spot market activity at

greater average energy sale prices due to lower rainfall levels during 3Q 2013, () improved operational result and the

reduction of net financial expenses by 22% due to lower interest rates (DTF) and to lower inflation indicators to which

Emgesa’s debt is indexed to.

Emgesa’s Board of Directors approved the extension of the total bond amount issuance of bonds in COP 850 billion

reaching up to COP 2.75 trillion. Aldo the BoD approved the offering memo of the bonds and authorized to perform

the activities before the national authorities involved.

Progress on EMGESA’s investment projects:

Tabla N° 17 – Capex

3Q 13 3Q 12 Var %

COP Million 430,877 354,962 21.4

USD Million 225.8 197.1 14.5

Expansion investments carried out by Emgesa focused on the construction of the Hydroelectric Plant of El Quimbo

and the revamping of the generation chain in minor plants, known as Salaco. Likewise, preventive maintenance

investments were performed in hydraulic and thermal plants to ensure reliability and availability thereof. Total

investment was exceeded in 21,4%, taking into consideration greater execution of works in El Quimbo. As of 3Q

2013, COP 371.927 million had been invested in El Quimbo, COP 25.934 million in the revamping of Salaco and

COP 33.016 million in maintenance.

Hydroelectric Project El Quimbo: Accumulated investment in El Quimbo project as of 3Q 2013 amounts to USD 502

million and progress is set at 51.7%




Investors Report

Third Quarter 2013


4.2. CODENSA

Tabla No 18 - Panorámica de Codensa al 3T 13

Number of clients 2,664,243

Market Share - % 23.67%

Codensa’s Demand – Gwh 10,686

Var % Demand 3Q 13 / 3Q 12 3.39%

Loss Index 7.06%

Operating revenue – COP MM 2,384,261

EBITDA LTM – COP MM 1,095,762

Control Endesa from Spain

EEB’s stake 51.5% (36.4% ordinary shares,

15.1% preferred non-voting shares)

National 76%

Codensa 24%

Graphic 9 - National Demand Vrs Codensa

Source: Codensa - Annual Average Rate The demand for the Codensa area is calculated taking into account the incoming power by the La Guaca substation destined to Enertolima starting in 2013, increasing demand in tolls to network (OR completo) operators. For the purposes of comparisons Annual Average Rate series is recalculated since January 2011




Investors Report

Third Quarter 2013


National Energy Demand: +3.03% as of Sept. 2013, affecting growth due to a decrease in consumption in the

regulated and non-regulated markets, the latter affected by low OXY consumption due to blowing ups of the oil

pipeline and decreased in the manufacturing industry.

Energy demand in the area of Codensa: +1.21%, maintaining a slight recovery of household and commercial demand

while there is an industrial demand decrease in the central region.

Table N° 19 - Selected financial indicators of Codensa


3Q 13 3Q 12 Var % 3Q 13 3Q 12


Cost of sales 1,705,758 1,672,144 2.0 890.9 928.7

Administrative expenses 58,878 57,053 3.2 30.8 31.7

Operating income 619,625 607,534 2.0 323.6 337.4

EBITDA LTM 1,095,762 1,061,186 3.3 572.3 589.4

Net income 389,189 379,065 2.7 203.3 210.5

Dividends and reserves declared to EEB 264,951 69,624 280.5 138.4 38.7

Capital reductions to EEB - - - - -

Net debt / EBITDA LTM 0.59 0.69

EBITDA / Interests 16.07 12.94


During the period, Codensa generated operational revenues amounting to around COP 2.3 trillion, a 2% higher when

compared to 3Q 2012 as a result of () growth in Codensa’s area of influence and () greater revenues related to the

transfer of energy to networks of other operators out of Codensa’s area of influence.

Sales cost increased as a result of greater purchases of energy to service demand.

Codensa’s EBITDA between January and September 2013 reached COP 809,419 million, representing an increase of

0.8% with respect to the same period in 2012, mainly due to greater operations revenues mainly offset by a similar

increase in the cost of sales.

Financial debt of the Company shows a reduction with respect to December 2012 as a result of the expiration of

Codensa Bonds (COP 80,000 million), which were paid on February 2013 with Company’s cash.

Codensa’s net profit increased with respect to 3Q 2012, due to greater operational revenues and to lower net financial

expenses resulting from lower interests rates and lower balance of the debt.

During the first nine months, Codensa achieved the lowest physical loss index for the past ten years, reaching 7.06%.

Codensa’s Board of Directors approved the extension of the total amount of issuance and placement of bonds in COP

185 billion reaching up to COP 785 billion.




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Third Quarter 2013


Tabla N° 20 – Capex

3Q 13 3Q 12 Var %

COP Million 149,07 153,529 -2.9

USD Million 77.8 85.2 -8.7

Progress in CODENSA’s investment projects: Investments focused mainly in servicing growing demand;

() improve service quality and continuity and () control of operational risks.

4.3. PROMIGAS

Table N° 21 - Overview of Promigas 3Q 13

Number of clients 11

Volume of sales - Mm cfd 362.1

Market share - % 37.6%

Network – km 2,367

Ingresos operacionales - COP MM 213,655

EEB’s stake - % 15.6

Table N° 23- Selected indicators of Promigas


3Q 13 3Q 12 Var % 3Q 13 3Q 12

Operating revenue 213,655 158,469 34.8 111.6 88.0

Cost of sales 99,761 72,426 26.4 47.8 40.2

Administrative expenses 98,073 39,606 147.6 51.2 22.0

EBITDA LTM 113,894 76,232 49.4 59.5 42.3

Net income 368,258 140,501 162.1 192.3 78.0

Dividends and reserves declared to EEB 57,593 29,09 98.0 30.1 16.2


Net debt (1) / EBITDA N.A. N.A. - N.A. N.A.

EBITDA / Interests(2) N.A. N.A. - N.A. N.A.

Table N° 22 – Capex Promigas

3Q 13 3Q 12 Var %

COP million 74,091 66,87 10.8

USD Million 38.7 37.1 4.2




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Third Quarter 2013



Progress of PROMIGAS investment projects:

First project of liquefaction of natural gas in Colombia for internal market development. Its entry into

operation foreseen in 3T 2014 with an estimated investment of USD 34 million and a capacity of 78,000

gallons of LNG / 5.9 Mcfd. The project is located in in the process of signing of the EPC contract for the

construction of the plant and negotiating contracts with the market

4.4. GAS NATURAL

Table N° 24 - Overview of Gas Natural 3Q 13

Number of clients 1,899,603

Volume of sales - Mm cfd 1.143

Market share - % N.A

Network – km 12737

Operating revenue - COP MM 993,017

EBITDA YTD - COP MM 297,332

Controlled by Gas Natural from Spain

EEB’s stake 25%

Graphic 10 – Sales by client - Gas Natural 3T 2013

Total 1.143 Mm3

Sales break up per clients is stable and similar to 2Q 2013, less clients have been connected to those foreseen,

mainly due to () less clients in saturated markets, () lack of technical possibilities in forest areas and illegal

neighborhoods, () due to delays in crossings of roads under concession. This situation is offset by a greater number

of clients in the new construction market and lesser reinstallations.

Domestic demand of Gas Natural is picking up in recent months, mainly due to a recovery in consumption of the

thermoelectric sector.

Industry 44%

GNV + ATR 17%

Residential and

Commercial 39%




Investors Report

Third Quarter 2013


Table N° 25 - Selected indicators of Gas Natural


3Q 13 2Q 12 Var % 3Q 13 3Q 12

Operating revenue 993,017 954,609 4.0 518.6 530.2

Cost of sales 722,303 707,716 2.1 377.3 393.1


EBITDA YTD 297,332 275,037 8.1 155.3 152.8

Net income 202,567 185,121 9.4 105.8 102.8

Dividends and reserves declared to EEB 62,63 63,726 -1.7 32.7 35.4



Operational revenues grow at a rate of 3.6% as a result of higher sales driven mainly by GNV and ATR markets.

EBITDA exceeds by COP 15.087 million (+5,3%) the goal set initially of COP 282.244 million. This variation is

explained by a greater gas margin (+COP 3.559 million) due to postponing the application of new distribution charges,

greater other revenues and margin from other sales (COP 2.862 million) for connection margin, customer financing

and third party collection, less services outside (COP +7.091 millones) reduced advertisement, adverts and PR

expenses, repair and conservation, provision and services of independent professionals, less tax due to reduced

4x1000, ICA and contributions (COP +990 million) and reduced personnel expenses (COP +584 million) due to less

staff.

Table N° 26 – Capex

3Q 13 3Q 12 Var %

COP Million 19,9 17,736 12.2

USD Million 10.4 9.9 5.5

The increase in investments by connections to industries (COP + 711 million), progress in the municipalities of La

Mesa and Anapoima (COP + 529 million) and rest (COP + 116 million). Are expected to regulate the planned level of

investment in the remainder of the year.

4.5. REP and CTM Perú

Table N° 27 - Selected financial indicators of REP

USD Million

3Q 13 3Q 12 Var %

Operating revenue 89.7 84.8 5.82

Cost of sales 50.5 48.7 3.61

Operating income 29.3 27.0 8.54 EBITDA LTM 55.1 53.4 3.13

Net income 16.4 16.2 0.85 Dividends declared to EEB 8 -

Capital reductions to EEB - -

Net debt (2) / EBITDA 3.31x 3.50x

EBITDA / Interests (3) 6.10x 5.75x





Investors Report

Third Quarter 2013


With respect to revenues, increase thereof is explained by the Start up of the Commercial Operation (POC - for

its Spanish acronym) of Enhancements N° 10 (29 April 2013) and N°11 (12 July 2013). In addition to greater

energy demand. All that partially offset by depreciation in the Exchange Rate Type.

As regards expenses, made up by Transmission Costs and Operational Expenses, depreciation and

amortization. During 3Q 2013, there was an increase of 3.61% when compared to 3Q12, resulting from (i)

increase amortization on account of POC in enhancements N°10 and 11, (ii) greater third party services on that

same account.

EBITDA and EBITDA margin, during 3Q13 there was an increase of 3.13% with respect to 3Q12, while EBITDA

margin decreased by 1.60% as a result of greater operational expenses.

As regards net profit in 3Q13 shows an increase of 0.85% with respect to 3Q12, mainly due to POC of the

aforementioned projects.

Table N° 28 - Selected financial indicators of CTM

USD Million

3Q 13 3Q 12 Var %

Operating revenue 61.1 41.1 48.6

Cost of sales 30.4 18.6 63.6

Operating income 30.6 22.4 36.3

EBITDA LTM 48.7 35.1 38.8

Net income 4.4 12.7 -65.1

Dividends declared to EEB - -

Capital reductions to EEB - -

Net debt (1) / EBITDA 7.79x 10.92x

EBITDA / Interests (2) 2.35x 3.36x


Revenues increase is due mainly to of Zapallal – Trujillo transmission lines and Talara – Piura transmission lines and

Pomacocha - Carhuamayo transmission lines in September 2013.

During 3Q13 there is an increase of cost of sales with respect to 3Q12, due to the start of the aforementioned

projects.

Net income reduction with respect to 3Q 12 is due to higher expenses on foreign exchange and financial

expenses associated to prepayments of debts replaced with in the international capital markets.




Investors Report

Third Quarter 2013


5. ANNEXES

Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report

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 Superintendency. The

exchange rates used are as follows:

− 3T 13: 1,914.65 COP/USD

− 3T 12: 1,800.52 COP/USD

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. Consolidated adjusted EBITDA reconciliation

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.




Investors Report

Third Quarter 2013


Annex 3: EEB Consolidated Adjusted EBITDA UDM and Quarterly

Table N° 29 – EEB’s Consolidated financial results

COP Million Variance

USD Million

3Q 13 3Q 12 % 3Q 13 3Q 12

Operating revenue (1) 1,451,107 1,161,375 24.9 757.9 645.0

Electricity transmission 78,126 78,197 -0.1 40.8 43.4

Electricity distribution 212,665 207,923 2.3 111.1 115.5

Natural gas transportation 648,369 516,318 25.6 338.6 286.8

Natural gas distribution 511,947 358,937 42.6 267.4 199.4

Cost of sales (2) -749,282 -597,582 25.4 -391.3 -331.9

Electricity transmission -34,189 -32,401 5.5 -17.9 -18.0

Electricity distribution -158,721 -148,153 7.1 -82.9 -82.3

Natural gas transportation -189,488 -180,633 4.9 -99.0 -100.3

Natural gas distribution -366,884 -236,395 55.2 -191.6 -131.3

Gross income 701,825 563,793 24.5 366.6 313.1


Electricity transmission -8,594 -6,489 32.4 -4.5 -3.6

Electricity distribution -24,544 -23,361 5.1 -12.8 -13.0

Natural gas transportation -34,441 -46,65 -26.2 -18.0 -25.9

Natural gas distribution -98,499 -71,086 38.6 -51.4 -39.5


Dividends (4) 799,853 523,953 52.7 417.8 291.0

Interest temp. investments & pension trusts (5) 40,018 45,897 -12.8 20.9 25.5

Foreign exchange (6) -200,998 184,634 -208.9 -105.0 102.5

Other revenue (8) 23,457 27,751 -15.5 12.3 15.4

Non-operating expenses (9) -117,792 -91,988 28.1 -61.5 -51.1

Financial expenses -170,359 -326,061 -47.8 -89.0 -181.1

Other expenses -6,07 -7,278 -16.6 -3.2 -4.0

Net income before taxes and minority interest 903,856 773,115 16.9 472.1 429.4

Minority interest (10) -52,28 -83,25 -37.2 -27.3 -46.2

Provision for income tax -67,279 -54,109 24.3 -35.1 -30.1

Net income 784,297 635,756 23.4 409.6 353.1 Footnotes in annex 6




Investors Report

Third Quarter 2013


Table N° 30 – GEB's Consolidated EBITDA LTM breakdown

CONSOLIDATED EBITDA LTM COP Million Variance USD Million

3Q 13 3Q 12 % 3Q 13 3Q 12


Operating costs -975,381 -793,438 22.9 -509.4 -440.7


Operating depreciation 113,329 104,375 8.6 59.2 58.0

Operating amortization 49,646 47,57 4.4 25.9 26.4

Operating Taxes 4,371 7,401 -40.9 2.3 4.1

Dividend & interests earned 849,416 748,856 13.4 443.6 415.9

Interests in autonomous equity -6,391 -17,182 -62.8 -3.3 -9.5

Administration expenses -194,36 -159,088 22.2 -101.5 -88.4

Retirement pensions 39 32,348 20.6 20.4 18.0

Amortizaciones 41,309 19,995 106.6 21.6 11.1

Amortization 5,301 4,415 20.1 2.8 2.5

Depreciation 22,226 16,933 31.3 11.6 9.4

Taxes 66,639 84,238 -20.9 34.8 46.8

Capital reductions - - - 0.0 0.0

Consolidated adjusted EBITDA 1,668,543 1,455,541 14.6 871.5 808.4

Table N° 31 – GEB's Consolidated EBITDA quarterly breakdown

CONSOLIDATED EBITDA QUARTERLY COP Million Variance

USD Million

3Q 13 3Q 12 %

3Q 13 3Q 12


Operating depreciation 27,963 28,035 -0.3 14.6 15.6

Operating amortization 13,613 11,67 16.6 7.1 6.5

Operating taxes 1,127 1,079 4.4 0.6 0.6

Dividends & interests earned 11,545 16,343 -29.4 6.0 9.1

Interests in autonomous equity -851 -5,946 -85.7 -0.4 -3.3

Administration expenses -34,535 -24,915 38.6 -18.0 -13.8

Retirement pensions 7,021 7,16 -1.9 3.7 4.0

Amortization 9,147 4,793 90.8 4.8 2.7

Depreciation 1,208 2,224 -45.7 0.6 1.2

Provisions 3,276 -421 -878.1 1.7 -0.2

Taxes 14,369 14,276 0.7 7.5 7.9

EBITDA 248,733 202,007 23.1 129.9 112.2




Investors Report

Third Quarter 2013


Annex 4: Link to EEB´s consolidated and stand-alone financial statements

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

Anexo 5: Términos técnicos y regulatorios

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




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

Investors Report

Third Quarter 2013


Annex 6: Tables and graphics footnotes.

Table 9 - EEB´s transmission business indicators

(1) Percentage of the infrastructure available in a period of time. (2) Percentage of the revenue discounted due to accumulated unavailability of specific assets above the regulatory

target. (3) Ratio between the number of maintenance operations carried out and number of scheduled maintenance operations

to be executed as part of the semi-annual Maintenance Plan. (4) Ratio of the number of transmission assets owned by EEB and the total number of transmission assets in Colombia.

Return Table 10– Selected financial indicators of EEC - DECSA

(1) Percentage of energy losses. Return

Table 16 - Selected financial indicators of EMGESA

(1) It is the result of the financial debt in force at the end of the period under analysis, less cash and temporary investments in the same period.

(2) Accrued interest on financial debts for the previous twelve months Return

Table 19 - Selected financial indicators of Codensa


(2) Accrued interest on financial debts for the previous twelve months. Return

Table 23 – Selected financial indicators of Promigas



Table 25 – Selected financial indicators of Gas Natural



Table 27 – Selected financial indicators of REP



Table 28 – Indicadores financieros seleccionados de CTM



Table 29 - Consolidated results of EEB

(1) Operating revenue for transmission services rendered directly by EEB, natural gas transmission and distribution of TGI and Cálidda, respectively; as well as energy distribution services that Decsa consolidates for its participation in EEC.

(2) Cost of sales of the transmission services rendered directly by EEB, natural gas transportation and distribution services and electricity distribution services conducted by its controlled companies. It includes personnel, materials, operation and maintenance costs, depreciation, amortization and insurances related to those activities.

(3) Transmission activity is operated directly by EEB. Administrative costs are allocated by the ABC system. (4) Dividends declared by non-controlled companies and temporary investors and pension funds autonomous equity. (5) Interests of temporary investments that are generated by pension funds autonomous equity.




Investors Report

Third Quarter 2013


(6) Refers to net losses or earnings due to exchange rate variations and its impact on assets and liabilities expressed in foreign currency.

(7) Valuation of hedging operations contracted by EEB and TGI to reduce currency risk. (8) Income from recovery of investments, leases and expenses. (9) Expenses are not related to operational activities. (10) Proportion of net income corresponding to minority investors in the company’s consolidated by EEB.

Return

Annex 7: Overview of 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.

68.1%

25%

15.6%

Electricity

Transmission

40% 40%

1.8%

98.4%

Generation

51.5% *

2.5%

Distribution

51.5% *

16.2%

51%

82%

Distribution

Transportation

Natural Gas

75%

60%

100%

*EEB is not the controlling shareholder and is a party to signed shareholder agreements.

40%

25%

100%

100%




INVESTORS REPORT 3Q 2013 · Investors Report Third Quarter 2013 Contact: Grupo Energía de Bogotá Investors Relations Office Telephone: 571 3268000 ext 1675 / 1827 E mail: [email protected]

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