Presentación de PowerPoint€¦ · • Commissioning of the Cusiana –Apiay project, which increases capacity from 33 Mscfd to 64.2 Mscfd, and of the Apiay –Villavicencio –Ocoa

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GEB Earnings Results2Q 2018September 13/2018

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Disclaimer

The information provided herein is for informational and illustrative purposesonly and is not, and does not seek to be, a source of legal, investment orfinancial advice on any subject. This presentation does not purport to addressany specific investment objectives, financial situation or particular needs ofany recipient. It should not be regarded by recipients as a substitute for theexercise of their own judgment. This information does not constitute an offerof any sort and is subject to change without notice. GEB is no obligation toupdate or keep current the information contained herein.

GEB expressly disclaims any responsibility for actions taken or not takenbased on this information. GEB does not accept any responsibility for lossesthat might result from the execution of the proposals or recommendationspresented. GEB is not responsible for any content that may originate withthird parties. GEB may have provided, or might provide in the future,information that is inconsistent with the information herein presented. Norepresentation or warranty, either express or implied, is provided in relationto the accuracy, completeness or reliability of the information containedherein.

This presentation may contain statements that are forward-looking withinthe meaning of Section 27A of the Securities Act and Section 21E of the U.S.Securities Exchange Act of 1934. Such forward-looking statements are basedon current expectations, projections and assumptions about future eventsand trends that may affect GEB and are not guarantees of futureperformance.

The shares have not been and will not be registered under the U.S. SecuritiesAct of 1933, as amended (the “Securities Act”) or any U.S. State securitieslaws. Accordingly, the shares are being offered and sold in the United Statesonly to qualified institutional buyers as defined under Rule 144A under theSecurities Act, and outside the United States in accordance with Regulation Sof the Securities Act.

We converted some amounts from Colombian pesos into U.S. dollars solelyfor the convenience of the reader at the TRM published by the SFC as of eachperiod. These convenience translations are not in accordance with U.S. GAAPand have not been audited. These translations should not be construed as arepresentation that the Colombian peso amounts were, have been or couldbe converted into U.S. dollars at those or any other rates.

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1.GEB Overview

2. Key Updates

3.Expansion Projects

4. Financial Performance

5.Q&A

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GEB Overview1

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Power Distribution

Natural Gas Distribution

3.8 mm clients in Power Distribution

2.9 mm clients in Natural Gas Distribution

13,580 km of Transmission Lines

4,200 km of Gas Pipelines

Power Transmission

Natural Gas Transportation

USD$579 mm YTDConsolidated Revenues

2Q 2018

USD$569mm YTDConsolidated EBITDA

2Q 2018

USD$6.3bnMarket Cap.

June 30, 2018

~USD$157 mmCAPEX 2Q 2018

11.7%2Q 2017 – 2Q 2018

10.9%2Q 2017 – 2Q 2018

5.6%Dividend Yield

Avg. 2011 – 2Q 2018

Approved a profit distribution of over COP$1.055.835 mm

GEB will pay its shareholders a record dividend of COP$115 per share

Power Generation

3,467 MW in Installed Capacity

14,765 GWh in Power Generation

GEB is a leading energy company in LatAm, composed by a diversified portfolio of Power and Natural Gas companies, classified in threestrategic business lines:

GEB at a Glance1.1

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Leading Participant in Relevant Energy MarketsGEB’s subsidiaries have market leading participations across the energy chain in Colombia, Peru andGuatemala

Guatemala

Colombia

Peru

Brazil

Guatemala# 1 Guatemala(1)

(Private Company)Market Share% Revenues NTS

Power Transmission

20.90%(1)

Transmission Network(10)867 km

Market Share% Distributed Volume

Natural Gas Dist. / Transp.

73.53%(3)

# 1 Peru(3)

Market Share% Revenues NTS

Power Transmission

65.9%(2)

# 1 Peru(2)

Peru

Clients(11) 600K

Trans. Network(13) ~10,994 km

Brazil

Market Share% Network NTS (km)

Power Transmission

0.77%(9)

Transmission Network 1,100 km(10)

Colombia

# 1 Colombia(8)

Market Share% National Network (km)

Natural Gas Transportation

54%(8)

# 1 Colombia(4)

Market Share% Subscriptions

Power Distribution

24.7%(4)

Clients 3.4mm(10)

#1 Colombia(6)

Market Share% Power Generated

Power Generation

20.7%(6)

Generation ‘1714,835 GWh(12)

# 2 Colombia(7)Natural Gas Distribution

Market Share% Connected Users

32.6%(7)

Clients 2.1mm(10)

# 2 Colombia(5)

Market Share% Revenues NTS

Power Transmission

17.8%(5)

Trans. Network 1,503 km(10)

Trans. Network 3,994 km

• Source: GEB.• Notes: (1) AMM, November 2017 (http://www.amm.org.gt//ite.php?fecha=09-2017&anio=2017); (2) COES, September 2017 (http://www.coes.org.pe/portal/); (3) Perupetro, September 2017

(http://www.minem.gob.pe/_estadisticaSector.php?idSector=5); (4) SSPD, December 2017 (http://reportes.sui.gov.co/fabricaReportes/frameSet.jsp?idreporte=ele_com_094); (5) XM, December 2017P (http://www.xm.com.co); (6) XM, December 2017 (http://www.xm.com.co); (7) Minminas, September 2017 (Natural Gas Coverage Report as of 3Q 2017); (8) Market share of TGI as of December 2016 (Promigas – Natural Gas Sector Report 2017) and excluding Promigas; (9) MME/ANEEL/ONS, September 2017 (http://www.mme.gov.br/web/guest/secretarias/energia-eletrica/publicacoes/boletim-de-monitoramento-do-sistema-eletrico/boletins-2017 ); (10) GEB corporate presentation; (11) GEB 3Q17 earnings release pages 8 and page 10; (12) XM, December 2017 (http://www.xm.com.co) (13) 3Q17 ISA REP-CTM corporate presentation page 3.

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Key Updates2

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2Q 2018 – Corporate HighlightsHighest Dividends in History

• Cálidda reported an increase of residential clients in an additional 148 thousand.• Cálidda decreed dividends in USD$52.7 million.• Capitalization to Trecsa in USD$11.9 million and to Contugas together with TGI in the 2018 cumulative in USD$41 million.• On June 28, 2018 the first dividend payment was made corresponding to 50% of the amount decreed on the value of the 2017

profit (COP $ 527,917 million). The second payment will be on October 25 and in total $ 115 / share will be paid.

• On July 4, a notice of offer for the second stage of democratization was published.• On July 23, the results for the award of the second stage of democratization were presented.• On July 31, the second stage of democratization was completed with the recording in the disposed shares account.• On August 1, GEB informs of changes in its share composition.

• Gas Natural S.A. E.S.P. informed that on June 1, 2018, Gamper Acquireco S.A.S. acquired a stake of 43.71% in the Company(16.137.037 shares), which added to the stake of Gamper AcquireCo II S.A.S. (one of its affiliates and also part of BrookfieldInfrastructure Group), equals 11.22% of the Company (4.142.772 shares), and gives Gamper Acquireco S.A.S and GamperAcquireCo II S.A.S joint control in the Company with a stake of 54.93% in the Company (20.279.809 shares).

• The arbitration claims initiated by Consorcio Graña & Montero (CG&M) – Conciviles against Contugas, were for an initial amount ofUSD 80 million. Nevertheless, after the evidentiary hearing and the allegations of the parties, the tribunal decided that the onlyamount in favor of CG&M was for USD 38.4 million, and also deciding that CG&M was to pay to Contugas the replacement of somevalves; thus, the final amount to be paid from Contugas was approximately USD 30 million.

Key Updates 2Q 2018 – GEB2.1

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2Q 2018 – Corporate Highlights

• TGI continues to have control and operate the largest gas pipeline network in Colombia:✓ Gas pipeline: 3,994 km, Capacity: 784.9 MMscfd✓ Average of firm hired capacity: 716.3 MMscfd✓ Covers 54% of the Colombian market

• On march 11 early payment was made on the syndicated loan acquired through the merger with IELAH in the amount of USD$44million, leaving a remaining balance of USD$40 million.

• Commissioning of the Cusiana – Apiay project, which increases capacity from 33 Mscfd to 64.2 Mscfd, and of the Apiay – Villavicencio– Ocoa section, from 17.2 Mscfd to 22 Mscfd, including completion of construction of two compression stations (Paratebueno andPompeya).

• Capitalization in Contugas for USD$13.2 million in May.• A payment of dividends to GEB was made in an amount of COP$150,038 million; the remaining will be paid in October 2018,

considering that the total declared was COP$300,077 million.• June 1 – The Cusiana Phase IV project came into operation with its compression unit No. 8, located at the gas station of Puente

Guillermo (Puente Nacional - Santander) and with an additional transportation capacity of 17 Mmpcd. At the close of the period, firmtransportation contracts with Natural Gas were signed (15 Mmpcd for the period from June 2018 until December 2024) as well ascontracts with authorized future funding with: Gases de Occidente, Emgesa, Organizacion Terpel, Alcanos de Colombia and Cogasen.

• June 9 – The Subfluvial Crossing of the Magdalena River (La Dorada – Caldas and Guaduas – Cundinamarca) came into operation,eliminating the shortage risk for 84 municipalities and 8 departments in the south-western part of the country.

• June 14 – The Loop Armenia came into operation with 37 Km of length and a capacity of 8.3 Mmpcd, supplying 8 municipalities ofQuindio, 2 municipalities of Valle del Cauca and distribution companies in the region.

Key Updates 2Q 2018 – TGI2.2

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2Q 2018 – Corporate Highlights

• Fitch Ratings reaffirmed Calidda’s 'BBB‘ long-term local and foreign Issuer Default Rating (IDR) and senior unsecured notesdue in 2023, outlook stable (01/05/18).

• Standard & Poor’s reaffirmed its ‘BBB-’ corporate credit and senior unsecured ratings for Calidda, outlook stable (02/26/18).• Moody's upgraded Calidda's Baa3 foreign currency senior unsecured rating to Baa2, outlook stable (07/10/18).• Calidda’s client base and invoiced volume both increased during Q2 2018 by 31% and 3%, respectively, compared to Q2

2017’s figures: 655,131 vs 501,589 clients and 788 vs 762 MMscfd.• During 1H 2018, our network length was enlarged by 340 km, wherewith the distribution system reached a total of 8,926 km

of underground pipelines.• Total Revenues and Total Adjusted Revenues1 as of Q2 2018 increased by 6% and 11%, respectively, driven by a higher

number connection services, mainly in the residential segment, and distribution revenues due to the combination of higherinvoiced volume and higher distribution tariff.

• Calidda’s distribution tariff was increased by 11% since May 7th, 2018, after completing a successful rate review process.Current tariff scheme2 will be valid until May 6th, 2018.

• The EBITDA grew accordingly and totaled USD 145 million (LTM), while the Adjusted EBITDA margin3 reached 60%.

1. Total Adjusted Revenues: Total Revenues less Pass-through concepts (gas, transport and IFRIC 12 revenues).2. Tariff scheme considers periodical tariff adjustments for local (Peru) and US inflation (PPI), and for steel and polyethylene international prices.3. Adjusted EBITDA Margin: EBITDA / Total Adjusted Revenues.

Key Updates 2Q 2018 – Cálidda2.3

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GEB Shareholding as of July 31, 2018

65,68%

20,44%

5,18%

8,71%Others

AFP

Number of shares outstanding:

9,181,177,017

Total Shareholders:

7.289

Note: GEB's shareholding structure is updated as of July 31, 2018. It includes the results of

democratization.

Number of shares outstanding: 9,181,177,017

Total Shareholders:

3.357

GEB Shareholding as of June 30, 2017

2.4 Shareholding Structure

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Expansion Projects GEB

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Expansion ProjectsRevenue growth has been sustained by a strong capex plan - (Direct Invesment in Colombia)

(1) Expected annual revenues.

Projects that currently generate income

3.1

Projects Update (2Q 2018) ProgressEAR (1)

USD$ mmDate expected

(On stream)

111.91

Chivor II 230 kV

Cartagena Bolivar 220 kV

Armenia 230 kV

Tesalia 230 kV

Sogamoso Norte 500 kV

La Loma 500 kV

Refuerzo Suroccidental 500 kV

Ecopetrol San Fernando 230 kV

La Loma STR 110 kV

Altamira 115 kV

Colectora 500 kV

Ampliación La Loma 500 kV

57.0%94.7%98%91%

80.1%70.3%42.3%77.9%45.9%25.7%3.2%

46.0%

5.511.61.311

21.11.3

24.46.36.9

0.6621.50.35

3Q 20183Q 20184Q 20183Q 20182Q 20194Q 20183Q 20181Q 20193Q 20191Q 20194Q 20224Q 2018

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Expansion Projects Revenue growth has been sustained by a strong capex plan

3.2Executed Capex by Controlled Companies

2Q 2018

USD$157 mm

Transmisión GEB32.5%

TGI25.7%

Contugas3.2%

Trecsa7.9%

Cálidda26.7%

EEBIS Guatemala

4.0%

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Financial Performance GEB (Consolidated)

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Costs and Expenses(COP$ mm)

Operational Revenues(COP$ mm)

Operational Profit

(COP$ mm)

Net Profit(COP$ mm)

Financial Performance4.1

$ 802,630 $ 812,044

$ 936,322

$ 830,938$ 864,928

2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018

$ 496,180 $ 502,210

$ 706,337

$ 547,865$ 506,833

2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018

$ 306,450 $ 309,834

$ 229,985

$ 283,073

$ 355,349

2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018

$ 231,434

$ 461,597

$ 337,356 $ 342,336

$ 472,120

2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018

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180,70627.3%

370,64956%

110,53516.7%

Natural Gas DistributionNatural Gas TransportationElectricity Transmisión

855,74950.5%

620,97536.6%

219,14212.9%

Natural Gas DistributionNatural Gas TransportationElectricity Transmission

As of 2Q 2018 compared to 2Q 2017 showed an increase of 7.74%

▪ +41.81%; COP$64.611 mm Electricity Transmission:Growth as a result of: Higher income recognized from UPME (Bolivar – Cartagena COP$5,079 million, Bolivar – SantaRosa COP$4,880 million, Sogamoso – Betulia COP$10,852 million, Sogamoso – Gachancipa COP$20,582 million andSogamoso – Soacha COP$5,998 million) projects and from CEMPRO and Prónico lines of EBBIS for USD$5.7 million.

+3.34%; COP$20.074 mm Natural Gas transportation:Growth due to an increase in fixed charges and the start of operations of the Cusiana-Apiay-Ocoa project fromFebruary, which will have a positive impact in the performance of this line of business during the entire year.

+4.54%; COP$37.127 mm Natural Gas distribution:Growth due to• Contugas – Income from construction for the G&M Award; construction of networks for USD$2.6 million; newindustrial clients due to fishing season from April to June for USD$2.7 million; and increase of interests from financingto residential clients.• Cálidda – Increase in the number of internal installations for USD$6.3 million; increase in the hired capacity,which has a positive impact in transportation and natural gas consumptions in USD$4.6 million; and higher incomefrom gas distribution based on higher volumes.

Financial Performance

COP$661,890 mmCOP$1,695,866 mm

As of 2Q 2018 compared to 2Q 2017 gross profit showed an increase of 10.36%

▪ +57.7%; COP$40,461 mm Electricity Transmission:As a result of higher maintenance and operating costs in COP$4.4 million, increase in contributions for COP$4.4 millionwith respect to UPME projects; with respect to Trecsa, an increase can be seen in maintenance expenses for lines andsubstations in COP$3.9 million, including personnel costs, utilities cost and billing costs to EBBIS.

-3.0% (COP$11,520 mm) Natural gas Transportation:As a result or: Increase of personnel costs (COP$7,182 million), maintenance from rights of way (COP$3,876 million)and repairs for change of coating (COP$4,121 million).

+22.5%; COP$33.205 mm Natural gas distribution:and its behavior is related to:• Contugas – Higher supply costs, based on a higher market consumption and construction of networks (CINIIF 12expansion) in USD$2.6 million.• Cálidda – Higher amortizations and depreciation in USD$4.5 million, increase of cost of installations and increasein natural gas costs, based on transported volume (USD$3 million).

Operating Revenue by Segment | 2Q 2018 YTD Gross Profit by Segment | 2Q 2018 YTD

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• 9.35%, COP$8,439 mm Finance income: The growth is related to higher interests and returns from short term securities of GEB, TGI and Gebbras.

• -3.98%, COP$10,712 mm Finance expenses: The behavior is due to a decrease in financial expenses mainly from TGI and Cálidda, as a result of the prepayments of the debt that have been made up todate.

• 66.67%, (COP$14,265 mm) Net Exchange Difference: The net change difference is connected to the behavior of the FX rates during the analyzed period in countries where GEB is present; thus, themain cause occurred in Gebbras, as a result of the depreciation of the Real with respect to the American Dollar (USD), thus having an impact in the expenses related to a bank obligation expressed inUSD.

• -3.55%, (COP$18.683 mm) Equity Method: In the equity participation method, the largest contribution is from Emgesa with 51.9%, followed by Codensa with 29.9% and Gas Natural with 6.1%. Itshould be noted that the companies in Brazil are under joint business: GOT, MGE, TER and TSP.

• 12.09%, (COP$14,666 mm) Taxes: Differed taxes were significantly reduced mainly due to the performance of that item in TGI, in response to a regulatory change of fiscal effects, with respect to theuseful life of fixed assets. As of the close of Q2 2018, the expense for fiscal depreciation is lower as a result of a recalculation that was made.

• 6.19%, COP$47,514 mm Net Income: The performance is due to the solid generation of income in each one of the business segments and in the countries where the Company is present and cost andexpense control in the operational and administrative performance, reaching efficiencies in the development of each one of the executed activities.

2Q 2018 from EBIT to net profit

Financial Performance4.3

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39%

56% 55%

52%

56%

65%67% 70% 68%

61%

44%45%

48%

44%

35%33%

30%32%

1.122.343

1.369.5331.447.335

1.775.908

1.964.666

2.437.4192.528.614

2.455.2252.562.019

2010 2011 2012 2013 2014 2015 2016 2017 2Q 2018

Operational EBITDA

Dividends

Source: Company filings.

Note: Figures for the years 2006–2013 are presented under ColGaap standards. For 2014, 2015 & 2017 are presented under IFRS

USD$ mm586

Normalized Consolidated EBITDA(1)Consolidated EBITDA by Segment(2)

Consolidated EBITDA by Strategic Group

LTM

COP$ mm

COP$1,666,442 mm2Q 2018

Financial Performance4.4

COP$1,666,442 mm2Q 2018

Electricity Transmission

14.9%

Electricity Distribution

13.9%

Natural Gas Transportation

32.7%

Natural Gas Distribution

18.5%

Electricity Generation

19.5%

Others0.5%

Interconnecting For Market

Development

47%

Urban Energy Solutions

33%

Low Emission Generation

19%

Others0.01%

705 819 922 821 877 909 883 874

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382

29 48

830

1,069

122 87162

61112

2019 2020 2021 2022 2023 2024 2028 2032 2042 2047

(USD$2,902 mm)

Source: Company filings.(1) Increase is mainly explained by increase of foreign exchange (USD/COP movements). (2) TGI IELAH (USD$40 mm outstanding debt)(3) 2024, 2032, 2042 and 2047, corresponds to the local bond maturities denominated in Colombian Pesos.

Net Debt / Consolidated EBITDA LTM (1) Consolidated EBITDA LTM / Net Interest (1)

(USD$ mm)

COP$ USD$

Consolidated Debt Composition Debt Maturity Profile (2)(3)

Financial Performance4.5

3,17x 3,07x 2,95x 2,85x 2,83x

4,50x

2Q 17 3Q 17 4Q 17 1Q 18 2Q 18

6,56x 6,53x 7,05x

7,56x 8,72x

2,25x

2Q 17 3Q 17 4Q 17 1Q 18 2Q 18

96.6% 93.6% 97.1%97.8%

99.3%98%

99% 84.7% 84.2%3.4%6.4% 2.9%

2.2%

0.7%2%

1%

15.3% 15.8%

1.5431.737 1.733

2.218

3.0092.803

2.567

2.946 2.902

2010 2011 2012 2013 2014 2015 2016 2017 2Q 2018 LTM

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Q&A5

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Felipe Castilla

Paola Viloria

Financing & Investor

Relations Officer

+57 (1) 326 8000

Ext 1611

CFO GEB

[email protected]

www.geb.com.co

www.grupoenergiabogota.com/en/investors

[email protected]

+57 (1) 326 8000 Sandra Jimenez

Financing & Investor

Relations Advisor

+57 (1) 326 8000

Ext 1827

[email protected]

Astrid

Alvarez

CEO [email protected]

+57 (1) 326 8000

For more information about Grupo Energía Bogotá (GEB) contact our Investor Relations and financing team:

Investor Relations5.1

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Para uso restringido GRUPO ENERGÍA BOGOTÁ S.A. ESP. Todos los

derechos reservados. Ninguna parte de esta presentación puede ser

reproducida o utilizada en ninguna forma o por ningún medio sin permiso

explícito de GRUPO ENERGÍA BOGOTÁ S.A ESP.