investors report 1h 2013 · and egasa-egesur). the volume transported in jun-13 for export was...

Investors Report

1 half 2013

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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]

Bogotá D.C., August 30th, 2013

INVESTORS REPORT 1H 2013 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY AND RELEVANT EVENTS ...................................................................................................... 2

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

1.2. Summary of EEB financial results 1H 2013 .............................................................................................................. 2

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

2. FINANCIAL PERFORMANCE GRUPO ENERGÍA DE BOGOTÁ .................................................................................... 5

3. PERFORMANCE OF CONTROLLED COMPANIES ........................................................................................................ 7

3.1. EEB – Transmission Business ........................................................................................................................................ 8

3.2. DECSA – EEC ........................................................................................................................................................ 10

3.3. TGI .......................................................................................................................................................................... 10

3.4. CALIDDA ................................................................................................................................................................ 11

3.5. CONTUGAS ........................................................................................................................................................... 11

3.6. TRECSA ................................................................................................................................................................. 12

3.7. EEBIS Guatemala ................................................................................................................................................... 12

4. PERFORMANCE OF COMPANIES WITHOUT CONTROL ........................................................................................... 13

4.1. EMGESA ................................................................................................................................................................ 13

4.2. CODENSA .............................................................................................................................................................. 15

4.3. PROMIGAS ............................................................................................................................................................ 16

4.4. GAS NATURAL ...................................................................................................................................................... 17

4.5. REP and CTM Perú ................................................................................................................................................ 18

5. ANEXXES ....................................................................................................................................................................... 21

Annex 1: Legal notice, clarifications and definitions of EBITDA included in this report ........................................................ 21

Annex 2: Consolidated income statement and adjusted EBITDA, UDM and Quarterly ...................................................... 22

Annex 3: Link to EEB´s consolidated and stand-alone financial statements ........................................................................ 23

Annex 4: Overview of EEB ................................................................................................................................................... 23

Annex 5: Technical and regulatory terms ............................................................................................................................. 24

Annex 6: Tables and graphics footnotes. ............................................................................................................................. 24

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1. EXECUTIVE SUMMARY AND RELEVANT EVENTS

1.1 Overview of the power and natural gas sectors

Table No. 2 - Overview of the natural gas sectors 2Q 13

Colombia Perú

Reserves, proved and probable - TCF 5.4 23.1

Domestic demand - mm cfd 1,028 1,128

Change in domestic demand 2Q 13 / 2Q 12

% 18.9 NA

Explanation for demand variation

The increase in demand during the second quarter was mainly due to an increase in thermal demand, borne by a significant reduction of the aggregate level of the reservoirs in the country due to a decline in rainfall during this period.

In the first quarter the volume

transported (mar-13) was 1.

054MMPCD 1, 128MMCPD

transported in Jun-13. The

main variation was due to the

increase in the consumption

of thermals (Enersur, Kallpa

and Egasa-Egesur). The

volume transported in jun-13

for export was 610MMPCD Sources: UPME, CON, MEM, Osinergim

1.2. Summary of EEB financial results 1H 2013

Table No 3 - EEB´s consolidated financial indicators

COP Million 2Q 13 2Q 12

Operating revenue 943,195 747,311

Operating income 340,898 268,498

Consolidated Adjusted EBITDA Qtrly. 232,594 202,007

Consolidated EBITDA LTM 1,621,817 1,478,074 EBITDA Consolidado UDM 1,621,817 1,478,074

Dividends and reserves declared to EEB 799,800 523,278

Net income 718,900 605,428

Dividends and reserves declared by EEB 403,604 319,964 Latest international credit ratings:

S&P – May 13 Fitch – Nov 12: Moody’s - Nov 12

: BBB- stable : BBB- stable Baa3 stable

Footnotes in annex 6

Table No 1 - Overview of the electricity 2Q 13

Colombia Perú Guatemala

Installed capacity – MW 14,454 7,620 1,282

Demand – GWh 21,459 21,459 2,255 Demand growth 2Q 13 / 2Q 12- % 2.64 6.10 1.8 Growth drivers 2Q 13 / 2Q 12

Decline of the industry and the sector mining and quarrying.

Growth in line with the growth of the GDP 2012

Industrial and population growth

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

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At closing of 1H 2013, net profit of Grupo Energia de Bogota amounted to 718 billion pesos, 113 billion pesos in excess of

the results obtained during the same period of the previous year, growing by 19%. This result is mainly explained by growth

of 72 billion pesos in operational incomes, where it is worth noting the results obtained in the natural gas transport business

in Colombia, due to the new tariff scheme and the coming on stream of Phase II of Cusiana in August 2012, which allowed

TGI to increase its operational revenues by 42% when compared to 1Q of the previous year. Also Cálidda and Contugas,

engaged in the business of distributing natural gas in Peru, continue their expansion process and connecting new clients,

leading to increases in operation costs and expenses.

The non-operating income benefited from the increase in 276 billion pesos in dividends enacted in favour of EEB, particularly

those from Codensa, Emgesa and Natural Gas, as well as the reduction in 152 billion financial expenses related to the

management of EEB and TGI debt operations carried out in 2011 and 2012 respectively.

The devaluation of the Colombian peso during 1Q 2013, impacted negatively the foreign exchange account, from a revenue

of 197 billion pesos as of June 2012 to an expenditure of 218 billion pesos as of June 2013, as a result of the update of

financial liabilities of the Group denominated in USD, booking done for accounting purposes and does not correspond to

cash expenditures

1.3. Relevant Events of EEB and Grupo Energía de Bogotá

22.05.13. Empresa Energía de Bogotá (EEB), headquarters of Grupo Energía de Bogotá, fulfilled the mandate set forth

by the General Assembly of shareholders of the 21.03.13, to pay a total of COP 95,746 billion in dividends to minority

shareholders of the Company. The General Shareholders Meeting decided to distribute to its shareholders the profits

generated in the year of 2012, COP 403,605 billion which implied an increase in the dividend of 26% in relation to the

enacted in 2011. Regarding the company´s major shareholder (City of Bogotá) payment is made in two equal

installments, one carried out on June 20 by value of COP 153,929 million and another planned for Nov. 27 by COP

153,929 million.

16.04.13 EEB was awarded the UPME-03-2010 tender, an electric interconnection project that is part of the National

Transmission System (STN – for its Spanish acronym) and which will reinforce the electric power service in the center

of the country, the Llanos Orientales and the city of Bogota. The award of the Energy Mining Planning Unit – UPME (for

its Spanish acronym), includes the design, equipment acquisition, construction, operation and maintenance of Chivor II

and Norte 230 V Substations and the double circuit line with over 160 Km that runs from the East of the country and

connects these substations with the western part of the city of Bogotá. The project will have presence in the

departments of Boyacá and Cundinamarca. This award, valued in USD101 million, joins the projects assigned in 2012:

Armenia, Alférez and Tesalia, which position to EEB as the main executor of the expansion of the country's electricity

transmission system.

18.04.13 The Board of Directors appointed Mr. Mauricio Cabrera, Mr. Mauricio Cardenas Muller and Ms Claudia L.

Castellanos as members of the Audit Committee. Also the board appointed Mr. Fernando Arbeláez, Mr. Alberto José

Merlano and Mrs. Claudia L. Castellanos Rodriguez.as members of the Corporate Governance Committee.

18.04.13 The Board of Directors authorized management to establish a company in Peru to render engineering services

in the natural gas transport and distribution sector and in the electric power sector.

23.05.13 EEB’s CEO, Ms. Sandra Fonseca, appointed 2 new directors of the Group: (•) Legal Counsel (Secretaria

General) the lawyer Ms. Cristina Toro, who is an expert in energy mining law, trade law and tax and customs

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legislation. The new General Secretary has over ten years of experience in public utility companies acting as General

Secretary to Central Hidroeléctrica de Caldas, affiliate to EPM, where she also acted as deputy Manager. She was the

Legal Director of Aguas de Manizales and General Secretary and Ancillary Judge to the Caldas’ Department Judicature

Sectional Council. EEB’s CEO. (•) Administrative VP, to the civil engineer, Mr. Iván Pinzón Amaya, who had been

deputy Administrative VP and Procurement Director. Mr. Pinzon Amaya is an expert in leading multinational supply

chains in the mining, oil, electric power and gas sectors – projects, exploration and production.

24.06.13. The Board of Directors of EEB, during its session, approved the following decisions: (•) to modify the

Company’s organizational and personnel structures to support Company’s current realities and its future growth. (•) to

explore and analyze a series of investment alternatives in the natural gas and electric power transport sectors in Latin

America.

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

Ministry to carry out processes to undertake foreign public credit operations, or similar or linked operations thereof, for

up to USD 479 million or its equivalent in other currencies, and said resources will be used to partially finance the

energy expansion plan in Colombia, Guatemala and Peru during the period comprising 2013-2017. Likewise, the

Ministry authorized EEB, to begin processes to grant guarantees to its affiliates in Guatemala, TRECSA and EEBIS, for

up to USD 230 million or its equivalent in other currencies. The next step for EEB will be to assess the best alternatives

in the debt market in terms of sources, term and costs, so it may obtain the respective authorizations from the Ministry

of Finance and Public Credit to execute each of the specific operations that are deemed adequate taking into account

the nature of the projects.

18.07.13. Ecopetrol S.A. informed the Colombian Financial Superintendence regarding the approval of the Board of

Directors to carry out processes tending to sell its investment in Empresa de Energía de Bogotá S.A. E.S.P and thus

contribute to financing its investment plan. According to ECOPETROL, the administrative and governmental

authorizations required by law for the sale process have been already granted. The date for such sale process to take

place has not been decided yet. The legal process to be applied in this case would be framed within Law 226 of 1995,

whereby in addition to Article 60 of the Political Constitution on the sale of state-owned stakes, other measures for its

democratization and other provisions are established.

15.08.13 The Board of Directors of Empresa de Energía de Bogotá, approved EEB’s participation in the share

acquisition process of ISAGEN S.A. ESP.

TGI − 07.05.13. The international risk-rating agency, Standard & Poor´s raised the grade of TGI’s debt in foreign currency

from “BB” to “BBB-” with stable perspective. The foregoing increase took into account the stability of long term

income, the natural coverage offered by regulations in force, due in part to the binding effect of part of the tariff to

the dollar, the coming on stream of expansion projects and the recent tariff revision and the support of its main

shareholder – EEB.

Cálidda

− Shareholders Meeting agreed to a capital increase under the mode of capitalization of retained earnings accrued as

of December 2012, amounting to USD 62.2 MM (BBB-;BBB-;Baa3).

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− 01.04.13 it issued a bond amounting to USD 320 million (2023 / 4.375% / 8x) in the international capital markets

(144A/Reg S). The resources obtained in this operation will allow financing expansion plans from 2013 and 2014,

and improve Cálidda’s debt profile.( BBB-; BBB;- Baa3)

Contugas - 02.07.13. Contugas is in the process of closing a new 6 year bullet-type financing for USD 310MM. This is a

syndicate loan in which regional and multilateral banking are participating.

- 25.07.13 Contugas completed the works of the Chincha Operations Center and it began its partial operation.

President of Peru, Mr. Ollanta Humala and CEO of Grupo Energía de Bogotá attended the event. The new

operational center, among the most modern in Latin America, is operated by Contugas and will allow to render

natural gas services to residential, commercial and industrial customers in the Province of Chincha, south of Lima.

CTM

- 27.08.13. Board of shareholders accepted the assignment for the execution of the design, financing, construction,

operation and maintenance of transmission line 500 kV of 900 km long, and its associated substations, project

awarded by Proinversion to ISA S.A. on July 18th

, 2013. Reference investment is US $ 413 million and will generate

estimated annual revenues of $ 41.5 million. The concession is for 30 years from its entry into operation. The

management of the project will be headed by REP.

2. FINANCIAL PERFORMANCE GRUPO ENERGÍA DE BOGOTÁ

Table No 4 - EEB’s consolidated financial results

COP Million Variation USD Million

2Q 13 2Q 12 % 2Q 13 2Q 12 Operating revenue 943,195 747,311 26.2 489.0 418.8 Cost of sales -492,788 -380,844 29.4 -255.5 -213.4 Gross profit 450,407 366,467 22.9 233.5 205.3 Operating expenses -109,509 -97,969 11.8 -56.8 -54.9 Operating profit 340,898 268,498 27.0 176.7 150.5 Dividends 799,800 523,278 52.8 414.6 293.2 Non-operating expenses -376,729 -94,990 296.6 -195,3 -53.2 Net income before taxes and minority interest 763,969 696,786 9.6 396.0 390.4 Minority interest -7,596 -59,464 -87.2 -3.9 -33.3 Provision for income tax -37,473 -31,894 17.5 -19.4 -17.9 Net income 718,900 605,428 18.7 372.7 339.3

Operating profit grows as a result of () increase in energy consumption; () new residential and commercial

connections/clients enabled and connected to the network in Cálidda and Contugas; () Increase in fixed charges and

variables derived from new TGI gas transport contracts with carriers, due to the coming on stream of Cusiana Phases I and II

and Ballena – Barranca and () tariff adjustment of TGI, in force during 2013-2017.

On the other hand, operational costs and expenses also show an increase due to an increase in infrastructure as a result of

maintenance, personnel, depreciations and amortizations.

Non-operational results is driven by decreed dividends on non-controlled companies during the first half of 2013 (Emgesa

COP405,659 million; Codensa COP 264,951 million and Gas Natural COP 62,630 million) and financial expenses reduced as

a result of debt management operations performed by TGI and EEB in 2011 and 2012. The devaluation of the Colombian

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peso during the first half of 2013, had a negative impact on the foreing exchange account, from earnings of COP 197 billion

as of June 2012 to an expense of COP 218 billion as of June 2013, as a result of updating financial obligations of the Group

expressed in USD, booking made for accounting purposes and its does not correspond to cash expenditures.

Table No 5 - EEB’s Financial indicators

COP Millions USD Millions

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

Consolidated adjusted EBITDA Qtrly 232,594 202,007 15.1 120.6 113.2

Consolidated adjusted EBITDA LTM 1,621,817 1,478,074 9.7 840.8 828.2

EBITDA LTM 1,621,817 1,478,074 9.7 840.8 828.2

Consolidated EBITDA margin % (1) 61.5 65.6 61.5 65.6

Net debt (2) / Consolidated adjusted EBITDA LTM

OM: < 4.5 1.63 1.71 -4.9 1.63 1.71

Consolidated Adjusted EBITDA LTM / Interest (3)

OM: > 2.25 11.37 7.41 -4.9 11.37 7.41

Increase of Consolidated adjusted EBITDA due to improved operational results.

Net leverage indicator increased marginally due to a more than proportional increase in net debt vis-a-vis moderate

increase in EBITDA.

Coverage indicator shows a slight reduction as a result of a more than proportional increase of net expenses of interest

vis-a-vis moderate growth in EBITDA.

NOTE: In accordance with contract definitions on notes issued by EEB on November 2011, leverage indicators and interest

coverage are calculated based on Adjusted Consolidated EBITDA, including capital reductions received by EEB from its

affiliates.

Table No 6 - EEB Consolidated debt structure

2Q 13 COP MM

Part. %

2Q 12 COP MM

Part. %

2Q 13 USD MM

2Q 12 USD MM

Financial debt in COP 1,363.20 0.0 174,410 5.2 0.7 97.7 Financial debt in USD 3,781,610.21 94.3 2,958,191 88.0 1960.4 1657.6 Derivatives position 227,270.89 5.7 227,144 6.8 117.8 127.3 Total financial debt 4,010,244.31 100.0 3,359,745 100.0 2078.9 1882.6

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Graph 1 – Evolution of debt indicators

Financial debt showed an increase of +15% between 1Q 2013 and 2Q 2013 and +19% between 2Q 2013 and 2Q 2012

resulting from an increase on syndicate loan disbursements in Contugas and a bond issuance in Cálidda.

Increase of financial debt expressed in USD due to: () disbursements of short-term syndicate loan in Contugás (additional

USD 46 million during 1Q); () issuance of bonds in Cálidda (USD 320 million), less debt re-payment of around USD197

million; and () greater value of EEB and TGI debt due to increases in the exchange rate.

Graph 2 - Profile of consolidated debt GBE - 2T 2013

3. PERFORMANCE OF CONTROLLED COMPANIES

Table No 7 – Financial indicators of Controlled investments - 2Q 13

COP Millones USD millones

EEB Trans TGI Calidda* EEB Trans TGI Calidda*

Operational income 52,218 421,684 199,336 27.1 218.6 199,336

Operational utility 24,724 258,786 23,965 12.8 134.2 23,965

EBITDA LTM 63,626 603,938 23,965 33.0 313.1 23,965

Net income 718,900 2,427 3,495 372.7 1.3 3,495

*USD thousands

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Table No 8 - Overview of the EEB group – Controlled companies expansion projects

Project / Company Country Sector Capex USD mm Status In operation:

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

Cusiana/Apiay - TGI

Colombia T NG 247 Planning 4T 15

Sistemas regionales - TGI Colombia T NG 35 Planning 14

ICA Perú - Contugas Perú T + D NG 345 Under construction 1Q 14

Lima Callao - Cálidda Perú D NG -Network expansion 460 Under construction 16

Guatemala - TRECSA Guatemala T E 373 Under construction 1Q 14

Subestaciones - EEB

Colombia T E 292 Planning 13-15

Ingenios - EEBIS

Guatemala T E 43 Planning 14 T: Transportation; D: Distribution; NG: Natural Gas; E: Electricity

Graph 3 - Controlled Companies Investment GEB 2013

3.1. EEB – Transmission Business

Table No 9 - EEB´s selected transmission business indicators

2Q 13

2Q 12

Var %

Operating income - COP million 24,724 27,232 -9.2

EBITDA Qtrly. - COP million 15,247 16,942 -10.0

EBITDA LTM - COP million 63,626 65,523 -2.9

Investments - COP million 17,421 11,503 51.4

Infrastructure availability - % (1) 99.96 99.93 0.03

Compensation for unavailability - % (2) 0.1595 0.001 15,850.0

Maintenance program compliance - % (3) 100 100 -

Participation in Colombia’s transmission activity - % (4) 8.06 8.09 -0.4


Technical indicators show stability as regards operating management of the company, keeping maintenance schedules

above those imposed by regulations without compromising the Company.

Investments for the period include amounts related to the construction of expansion projects Alférez, Armenia and Tesalia.

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Progress on EEB investment projects in the Transmission Business:

Armenia Project: Within the environmental licensing process of the project EIA – Environmental Impact Study (for its

Spanish acronym), the supplementary information was submitted before ANLA – National Authority for Environmental

Licenses, CRQ – Autonomous Regional Corporation of Quindio and CARDER – Autonomous Regional Corporation of

Risaralda, in addition to submitting the documents to lift the ban before the Forest, Biodiversity and Ecosystemic

Services Directorate attached to – MADS - Environmental and Sustainable Development Ministry (for its Spanish

acronym). CRQ, through written documentation 00003339 of 30 May, requested ANLA to summon an environmental

public hearing for the project. Within the Transmission Lines process, the construction contract was signed off, which

began with the storage and custody of supplies phase. Regarding the GIS substation, the manufacturing finished and

at the end of June is was in transit from China to Colombia. On the other hand, the manufacturing of ancillary service

equipment, such as bridge cranes, hoisters, benches, switchboards and gauge transformers show progress of 84%.

Regarding right of way, 46 tower sites are ready for notarial recording of deeds and legal inspection, representing

55.4% of the total tower sites for the project. Progress of the project as at 2Q 2013 reached 53.53%.

Alférez Project: ANLA, under resolution 0563 of 7 June 2013, granted the environmental license to the project, leading

to the beginning of the construction stage of the substation. A construction contract was entered into and drawings for

the related transmission line supplies were approved. Regarding the GIS substation, at the June closing was ready for

shipping to Colombia. Construction of civil works started, completing mobilization, stripping and cleaning and carrying

outs filling and cutting activities. Regarding right of way, 3 of the 4 tower sites are ready for notarial recording of deeds

and judicial inspection, representing 75% of all tower sites for the project. Progress of the project as at 2Q 2013 was

64.12%.

Tesalia Project: For the Tesalia – Altamira stretch, the following documents were submitted for evaluation:

Environmental Impact Study before ANLA and the request for final cutting of forest reserves of Law Second and the

permit for the felling of banned species, submitted to the Forest, Biodiversity and Ecosystemic Services Directorate

attached to – MADS - Environmental and Sustainable Development Ministry (for its Spanish acronym). Regarding

transmission lines, for this stretch, it completed templating and readiness of project in addition to power grounding

schemes, soil survey and detailed geology. For the Tesalia – Alférez stretch, the licensing activities continue with the

preparation of the EIS. Regarding transmission lines for this stretch, 94% of its placement scheme has been completed,

equivalent to 180 Km, given field activities required to materialize the geodesic network and realignment in routes and

LIDAR flyovers. Regarding activities related to the Tesalia substation and the enhancement of the Altamira substation,

progress has been made in the electric and civil designs and surveys, and manufacturing of lighting rods, PT’s, switches

and TC’s has been completed. Progress of the project was 29.05% as at 2Q 2013.

NORTE Project: The work team for the project was selected. Contracts were entered into for the detailed design of

power lines and environmental studies. The performance of contracts begun with progress of activities according to the

schedule established. Feasible line laying alternatives were defined. The project was socialized at mayors’ offices and

other members of 13 municipalities in the area of influence. A service order was entered into to conduct flood risk

studies of the sites selected for Norte and Chivor II substations. Progress of the project was at 1% according to

schedule as of 2Q 2013.

SVC TUNAL 1: The Contractor to develop the Project in EPC mode was selected.

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3.2. DECSA – EEC

Table No 10 - EEC’s selected indicators - Controlled by DECSA*

2Q 13 2Q 12 Var %

Number of clients 259,991 250,189 3.9

Operating revenue - COP million 141,852 138,166 2.7

Operating income - COP million 14,101 20,378 -30.8 EBITDA Qtrly. - COP million 28,068 15,801 77.6 EBITDA LTM - COP million 0 60,365 -100.0 Net Income - COP million 10,296 12,871 -20.0 Dividends and reserves declared to EEB 4,538 - Losses - % (1) 11.53 12.69 -9.1 * Controlled by DECSA Footnotes in annex 6

Operating earnings grow at a lesser pace if compared to growth of operating revenues, mainly as a result of increase in

expenses of maintenance to networks, lines and pipes and network inventories.

3.3. TGI

Tabla No 11 - TGI’s selected indicators

2Q 13 2Q 12 Var %

Operating revenue -COP million 421,684 330,063 27.8

Operating income -COP million 258,786 182,303 42.0

EBITDA Qtrly. - COP million 168,542 120,437 39.9

EBITDA LTM - COP million 603,938 489,876 23.3

Net income - COP million 2,427 131,595 -98.2

Transported volume - mmcfd 436 401 8.7

Firm contracted capacity - mmcfd 628 548 14.6

International debt ratings S&P - May 13: BBB-; stable Fitch - Nov 12: BBB-; stable Moody’s March 12 Baa3 estable

BBB-; Stable BBB-; Stable Baa3 Stable

Operational earnings grow due to: () start up of the second phase of Cusiana, which allowed to enhance gas transport

capacity and enter into new in firm contracts for greater capacities and therefore an increase in transported volume if

compared to that recorded in 2Q 2012; and () TGI’s new tariff scheme, which is being applied as of 1Q 2013.

Operational costs grow, specifically due to greater depreciations resulting from an increase in value of infrastructure in

operation. Regulated revenues are expected to increase by around 10% during 2013, due to the tariff adjustment

authorized by regulator in December 2012. The new tariffs will be in force until 2017. Operational expenses grow due to

higher depreciation of the assets in use.

Operational profit grows mainly as a result of the increase in operational revenues.

Non-operational results show a decrease in non-operational expenses, specifically financial expenses as a result of debt

management operations of TGI performed in 2012 that refinance senior debt in 380 basic points.

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Despite growth in operational earnings (+ 42%) and the decrease in financial expenses, 2Q 2013 net earnings

decreased, mainly as a result of the expense foreign exchange account of COP -179,497 million generated by the

devaluation of the Colombian peso to USD. During 2Q 2012, this line item had generated earnings amounting to COP

181,134 million, resulting from the revaluation of COP vs. USD.

Progress of TGI investment projects:

The construction of the natural gas compression station La Sabana -– ECGSB, part of the gas pipeline expansion

project sharing the same name, is executed in 2 simultaneous contracting processes: (•) The first one being the EPC

contract to prepare the basic and detailed designs, procurement (except compression units), construction, mounting,

installation and start up of the station; This contract was signed with the Canadian firm SNC Lavalin on last June, with

initiation on July 5th

, 2013 (•) The second main process is the purchase of compression units and ancillary systems,

contracted to the German company, MAN DIESEL AND TURBO, which will deliver the compression equipment during

1Q 2014.

3.4. CALIDDA

Tabla No 12 - Cálidda’s selected indicators

2Q 13

2Q 12

Var %

Number of clients 124,078 86,156 44.02 Operating revenue - USD Miles 199,336 167,744 18.83 Operating income – USD Miles 23,965 24,343 -1.55 EBITDA Qtrly – USD Miles 16,012 16,267 -1.57 EBITDA LTM – USD Miles (1) 64,169 62,765 2.24 Net Income – USD Miles 3,495 13,164 -73.45

Despite the greater volume distributed and invoiced during first half 2013, EBITDA in Cálidda maintains its levels of the

first half 2012 due to a reduction in the distribution tariff, resulting from reduced international price indexes of AC and PE.

In addition, EBITDA margin is slightly reduced when adding the mentioned effect, greater operational expenses inherent

to growth.

Progress of Cálidda investment projects:

The construction of the main network enhancement project was completed, which increased distribution capacity in

Cálidda from 255 mm pcd to 420 mm pcd. It is pending the technical report OSINERGIM to start up its commercial

operation.

3.5. CONTUGAS

Contugas is undergoing a closing process of a new 6 year bullet type financing, amounting to USD 310MM. It consists of a

syndicate loan in which regional and multilateral banking are participating. CAF’s Board of Directors (where

Finance/Economy Ministers from respective member counties participate) approved the transaction in June. CAF and Banco

Credito Peru are in charge of structuring the loan. Currently Contugas has a bridge loan for up to USD 215 million, which

includes resources from Banco de Bogotá, Davivienda and BCP, for a term of up to 18 months and different spreads.

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At the closing of June, Contugas already had over 2,711 enabled clients (with over 12,600 household sales effectively made

and 10,629 internal installations pending to be enabled). The contractual obligation is to reach 50,000 residential connections

in 6 years after the declaration of commercial viability, which is expected to occur during 1Q 2014.

Progress of Contugas investment projects:

At closing 2Q 2013, execution percentage reached 81% with an accumulated investment amounting to USD 234 million.

System’s estimated capacity is 375 mm pcd. At closing of 2Q 2013, volume of contracts executed by Contugas reached

36.8 mm pcd or m3 std/day and the volume corresponding to contracts under negotiation reached 21.0 mm pcd or m3

std/day.

3.6. TRECSA

Progress of Trecsa investment projects:

Municipal endorsements: 55 municipal endorsements have been obtained as of 2Q 2013, 10 are in the

approval process and the others are under negotiation.

Plots of land: The acquisition of land to build the substations was completed. The last one pending

corresponded to SE San Juan Ixcoy, which was acquired satisfactorily by Trecsa together with the right of

way.

Transmission lines: the company has 428 towers with completed civil works, equivalent to 21% of all Project

towers. Regarding mounting thereof, progress during 2Q 2013 is 15%, having erected a total of 315 towers in

8 different lines of the 16 lines comprising the Project.

Substations: To date, 16 of the 24 Project substations are under construction and civil works. Substations

with greater progress are: San Agustín 230/69, Rancho 69, Palestina 230/69, Palín 69, etc.

ECUT: to date, 1,132 licenses have been obtained, (45%) of an estimated 2,500 files to be submitted, which

will be sent for approval to the Ministry of the Environment and Natural Resources.

Right of Way: Progress is this subject is 65% in terms of negotiations with landowners.

Communication strategy: a total of 11 Voluntary Project for the Benefit of the Community have been

developed, achieving a rapprochement with the different communities, which in turn has improved Trecsa’s

relation with the community. Similarly, an agreement has been executed with UNICEF, and is making

progress regarding granting of 216 scholarships for children located in 6 different regions at the department

level.

3.7. EEBIS Guatemala

Progress of EEBIS Guatemala investment projects:

This project consists on the construction of 90 kilometers of transmission lines, 4 new substations and the enhancement

of 3 existing substations. The project will be developed with 5 sugar mills located in the southeast of the country. The

foregoing contract signed and made official on July 11th

, 2013. The investment of this Project amounts approximately to

US$43.3 million. Regarding progress with contracting, to date the status is as follows: contract by Environmental Impact

Study and field works for LT design. The contract for design of substations was signed on August 20th.

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4. PERFORMANCE OF COMPANIES WITHOUT CONTROL

Table No 13 - financial indicators - Non-controlled investments - 2Q 13

COP Million USD million

Emgesa Codensa Gas Natural Promigas REP CTM Operating revenue 1,184,578 1,570,572 655,236 141,368 60.6 43.5 Operating income 669,055 397,624 178,843 61,282 19.3 23.7 EBITDA YTD 751,896 548,371 196,820 73,070 36.5 35.5 Net income 421,829 251,247 135,780 278,507 10.7 -418 Dividends and reserves declared toEEB 405,658 264,951 62,630 33,682 8 0 Capital reductions to EEB 0 0 0 0 0 0

Table No 14 - Summary of non-controlled companies projects expansion - 2Q F 13

Project Company Sector Country Capex In operation:

Quimbo Emgesa G electricity Colombia 881 14 New Demand Codensa D electricity Colombia 50 13 Concession expansion REP T electricity Peru 127 13

Concession expansion and new con. CTM T electricity Peru 542 –13-14

Expansions PROMIGAS T + D natural gas Colombia 130 14

Graph 4 – Investments - Non controlled companies 2013

4.1. EMGESA

Table No.15 Overview of Emgesa 2Q 2013

Capacidad instalada - MW 2,915

Capacity´s Composition 10 Hydro y 2 thermo

Generation - Gwh 6,397

Sales - Gwh 7,965

Operating revenue 1H 13 - COP mm 1,184,578

EBITDA 1H 13 - COP mm 751,896

Controlled by Endesa Spain

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

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After one year of negotiations, EMGESA closed the contract with Ecopetrol, whereby it will supply during the next six

years, the power required for the production of its wells and production centers located to the east and south of the

country. This energy represents a consumption of approximately 5,614 GWh as of this year and until 2018.

WATER CONCESSION FOR POWER GENERATION: By resolutions 223 of 23 May 2013 and 285 of 20 June 2013,

Corpoguavio extended the water concession for power generation to Guavio power plant, for a 15-year term. Guavio is

the second largest hydroelectric power plant in Colombia, and during 2012 it accounted for 10.4% of the total power

generated in the country

Table No 16 - Selected financial indicators of Emgesa COP Millions USD Millions

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

Operating revenue 1,184,578 990,348 19.6 614.1 554.9

Cost of sales -502,935 -415,168 21.1 -260.7 -232.6

Administrative expenses -12,588 -14,112 -10.8 -6.5 -7.9 Operating income 669,055 561,067 19.2 346.8 314.4 EBITDA YTD 2Q 13 – 2Q 12 751,896 646,547 16.3 389.8 314.4 Net income 421,829 349,561 20.7 218.7 195.9 Dividends and reserves declared to EEB 405,658 343,894 18.0 210.3 192.7 Capital reductions to EEB 0 0 0.0 0


Net profit showed an increase of 20.7%, due mainly to greater operational revenue and the reduction of debt financial

expenses.

In May 2013 Fitch Ratings and Standard & Poor’s raised EMGESA’S rating, in the category of long term corporate debt

issuer in local and foreign currency from BBB- to BBB with a stable perspective. The reports of the two risk-rating

agencies highlight the financial performance and the satisfactory profile in terms of business and financial risks.

Progress of EMGESA’s investment projects:

Table No 17 – Capex

2Q 13 2Q 12 Var % COP MM 251,130 180,785 38.9 USD MM 130.2 101.3 28.5

-3.1%

-29.4%

22.5%

19.3%

-2.7% 1

9.2%

3.2

%

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During 1Q 2013, EMGESA carried out a series of works such as purchase of equipment, maintenance of central plants

and sustainability projects in areas of influence, among others, amounting to COP 251,130 billion, where expansion

projects accounted for 95% of that amount, and given the progress made in the execution of the El Qimbo Hydroelectric

Project (400 MW) and the Salaco Hydroelectric Project (260MW), comprising the rehabilitation of 6 generators of the

central plants SALTO II, Laguneta and Colegio, recovering in this way 144.8 MW of the old Rio Bogota production chain

and increasing its power to 260 MW.

“El Quimbo” Hydroelectric Project: (•) On 15.07.13 ANLA visited the project to review the environmental and social

aspects of the project, and off the record, it mentioned that EMGESA meets the requirements for the environmental

license. (•) Meetings are held with INVIAS and the Governor’s office for the construction of substitute roads and these

have been authorized already by ANLA; (•) The project has adequate margin for completion; (•) In 2013 it executed USD

89.4 million; (•) During the period 2010 - 2013 it had executed 443 USD.

4.2. CODENSA

Table No 18 - Overview of Codensa

Number of clients 2.640.304

Market share - % 23.6

Codensa’s demand – Gwh 7069

Var % - Codensa’s demand 1Q13/1Q12 2.96%

Operating revenues - COP MM 1,570,572

EBITDA YTD- COP MM 0

Controlled by Endesa from Spain

EEB’s stake 51.5% -36.4% ordinary shares; 15.1% preferred non-voting shares

Graph 5 - Evolution of National Demand Vs demand for Codensa

Growth rate of power demand in Codensa’s area is 1.5%, showing a slight demand recovery from residential and

commercial clients and a decrease in demand from industrial activities in the country’s central region.

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Growth in local power demand of 3.4% as of June 2013, and maintaining significant growth rates, due to demand

recovery of regulated customers. On the contrary, manufacturing sectors, oil and mining activities showed deceleration

during 2Q 2013.

Table No 19 - Selected financial indicators of Codensa COP Millions USD Millones 2Q 13 2Q 12 Var % 2Q 13 2Q 12 Operating revenue 1,570,572 1,549,459 1.4 814.19 868.24 Cost of sales -1,134,020 -1,114,504 1.8 -587.88 -624.51 Administrative expenses -38,926 -38,710 0.6 -20.18 -0.02 Operating income 397,624 396,245 0.3 206.13 222.04 EBITDA YTD 548,371 551,945 -0.6 284.28 222.04 Net income 251,247 247,051 1.7 130.25 138.43 Dividends and reserves declared to EEB 264,951 69,405 281.7 137.35 38.89 Capital reductions to EEB 0 0 0.00 0


During the period, Codensa generated operational revenues amounting to approximately COP 1.6 trillion, EBITDA of

COP 524,605 billion (YTD), representing an increase of 1.7% in net profit and a net margin of 16% on the Company’s

operational revenues. Cost of sales increased as a result of increased energy sales.

Company’s financial debt decreased by 7.3% with respect to December 2012.

During the first six months of the year, Codensa achieved the lowest black losses index in the past ten years, reaching

7.14%.

Table 20 – Capex

Al 2T 13 Al 2T 12 Var % Millones COP 93,500 92,046 1.6

Millones USD 48.5 51.6 -6.0

Progress of CONDESA´s investment projects:

During the first half of 2013, Codensa invested around COP 93.500 billion, aimed at improving service quality and

focused on strengthening infrastructure, maintenance and network expansions.

Servicing New Demand: (•) In Nueva Esperanza all processes have been performed with ICANH to define management

of archeological remains found during excavations.

4.3. PROMIGAS

Table No 21 - Overview of Promigas - 2Q 13

Number of clients N.A.

Volume of sales - Mmcfd 350.2

Market share - % 41%

Network – km 2,896

Operating revenue 1H 13- COP million 141,368

EEB’s stake - % 15.6

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Table No 22 – Capex Promigas

2Q 13 2Q 12 Var %

COP MM 37,003 31,460 0.2 USD MM 19.182 17.629 0.1

Table No 23 - Selected indicators of Promigas COP MM USD MM

2Q 13 2Q 12 Var % 2Q 13 2Q 12 Operating revenue 141,368 102,892 37.3 73.2 57.1 Cost of sales -68,298 -54,418 25.5 -35.4 -30.4 Administrative expenses 61,282 24,161 153.6 31.7 13.0 Operating income 73,070 48,474 50.7 40.9 27.1 EBITDA YTD 278,507 89,935 209.6 144.3 50.4 Net income 33,682 29,090 17.4 16.3 Dividends and reserves declared to EEB - - - - Capital reductions to EEB 2,2 N.A N.A N.A Net debt (1) / EBITDA 6,7 N.A N.A N.A Footnotes in annex 6

Progress of Promigas’ investment projects: It is currently carrying out maintenance works on its pipeline.

4.4. GAS NATURAL

Table No 24 - Overview of Gas Natural

Number of clients 1.880.575

Volume of sales - Mm cfd 752

Market share - % N.A

Network – km 12.699,9

Operating revenue - COP million 635,511

EBITDA YTD - COP million 196,820

Controlled by Gas Natural from Spain

EEB’s stake 25%

Graph 6 – Sales by costumer – Gas Natural 2Q 2013.

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Increase of residential/commercial clients, 161 over objective set, mainly as a result of greater number of clients in the

new construction market; and () resulting from the completion of projects by construction companies.

Table No 25 - Selected indicators of Gas Natural COP MM USD MM

2Q 13 2Q 12 Var % 2Q 13 2Q 12 Operating revenue 635,511 612,617 3.7 329.5 343.3 Cost of sales -412,709 -411,748 0.2 -213.9 -230.7 Administrative expenses -51,915 -52,868 -1.8 -26.9 -29.6 Operating income 170,887 148,002 15.5 88.6 82.9 EBITDA LTM 196,820 344,833 193.2 Net income 135,780 118,926 14.2 70.4 66.6 Dividends and reserves declared to EEB 62,630 63,726 -1.7 35.7 Capital reductions to EEB 0 0 0 0 Footnotes in annex 6

Revenues grow at a lower pace than operational earnings, mainly due to commercial - domestic market (-9 Mm3)

resulting in less medium and industrial consumption (-10 Mm3) due to reduced sales volume in Paz del Rio industry,

among others; compensating with GNV markets plus ATR (+10 Mm3) on account of medium consumption which

exceeded forecast.

Progress of Gas Natural investment projects

Table No 26 – Capex

2Q 13 2Q 12 Var %

COP MM 9,360 8,195 14.2

USD MM 4.852 4.592 5.7

These investments show a lower execution, due mainly to () re-planning of activities in refurbishing works of seismic-

resistance in buildings, constructions and heritage safety; () re-programming of projects for the second half of the year in

energetic management; () reduced average investment per client in Consolidated Areas; and () re-programming of activities

and ancillary installations in network maintenance; offset by greater investment in the municipalities of La Mesa and

Anapoima.

4.5. REP and CTM Perú

Table No 27 - Selected financial indicators of REP USD Millones

2Q 13 2Q 12 Var % Operating revenue 59.0 54.1 9.1

Cost of sales 33.7 31.4 7.2

Operating income 19.3 17 14.0

EBITDA LTM 36.6 34 7.7

Net income 10.7 9.8 8.7

Dividends declared to EEB 8 0

Capital reductions to EEB 0 0

Net debt (2) / EBITDA 0 0

EBITDA / Interests (2) 0 0

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Revenues have increased mainly due to the tariff adjustment and the coming on stream of enhancement operations 9

and 10, which started commercial operation in October 2012 and April 2013 respectively.

The operating Profit and Ebitda growing due two extensions that went into operation in October 2012 and April 2013

REP net profit as of 30 June 2013 reached USD10.6 million, showing an increase with respect to the same period during

the previous year of USD 9.8 million, mainly due to enhancements 9 and 10 which began operations in October 2012

and April 2013 respectively.

Tabla No 28 - Indicadores financieros seleccionados de CTM

USD Millones Al 2T 13 Al 2T 12 Var %

Operating revenue 40.4 27.8 45.5 Cost of sales 18.9 11.2 68.2 Operating Income 20.4 15.7 30.6 EBITDA LTM 32.3 19.7 64.6 Net income -0.4 8.2 -105.1 Dividends declared to EEB 0 0

Capital reductions to EEB 0 0

Net debt (1) / EBITDA 8.38 5.78

EBITDA / Interests (2) 1.88 2.55


Operating Income and EBITDA grow due to inception of the commercial operation of two concessions in December 2012

and May 2013

Net profit decreased mainly as a result of greater financial expenses related to prepayment of bank loans made in May

2013.

On 30 April 2013, CTM made an international security placement offer under Rule 144ª and Regulation S of the U.S.

Securities Act of 1933. On 7 May 2013, it proceeded with the liquidation and issuance of the notes, known as “Senior

Notes”. The issuance of notes amounted to USD 450 MM an issuance price of 99.002%. It has a 10-year Bullet

amortization and six months coupons paying interest at an annual interest rate of 4.375%. These resources will be used

to prepay outstanding debt and to finance expansion projects.

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Table No 29 - Overview of the planned enlargement of the granting of REP

Project Progress

R/P %

Ppto.

(MUS$)

Date of Completion Reviews

Extension 10

100% 4.73

Milestone1: 15 Aug. 2012

Milestone 2: 15 Oct 2012

Milestone 3: 15 Mar 2012

In the process of completion of liquidation of suppliers

Extension 11 100% 8.39

Lines: 15 May 2012 substation: 12 Jul 2013

The MEM approved an extension of time until July 12, 2013 Progress on electro-mechanical installation of the SE Pomacocha

Extension 12

77,9% 7.07

Transformation: 10 Nov 2013 Substation: 10 Ago 2013

REP asked the MEM an extension of period for the POC for 2 months due to problems in servitude in Ayaviri

Extension 13

90,3% 12.17

Repowering & compensation 15 Sep 2013 Substation: 15 fab 2014

The detail engineering of the repowering of LT Talara – Piura was given to the inspector.

Extension 14 102% 15.75 27 Abril 2014

Expected the aprovement of DIA It was received the aprovement of Min culture for start of

archaeological assessment project

Extension 15

100% 44.63

Line L2903 19 Apr 2014 Línes y 4th Circuit 19 Sep 2015

The Management Committee approved the hiring of Concol for the detail engineering of the lines

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5. ANEXXES

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:

-2Q 13: 1,929 COP/USD

-2Q 12: 1,748.6 COP/USD

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

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.

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Annex 2: Consolidated income statement and adjusted EBITDA, UDM and Quarterly

Table No30 - EEB’s Consolidated financial results

COP million Variation USD Million

2Q 13 2Q 12 % 2Q 13 2Q 12

Operating revenue (1) 943,195 747,311 26.2 489.0 418.8

Electricity transmission 52,218 51,966 0.5 27.1 29.1

Electricity distribution 141,852 138,166 2.7 73.5 77.4

Natural gas transportation 421,684 330,063 27.8 218.6 185.0

Natural gas distribution 327,441 227,116 44.2 169.7 127.3

Cost of sales (2) -492,79 -380,84 29.4 -255.5 -213.4

Electricity transmission -22,491 -21,302 5.6 -11.7 -11.9

Electricity distribution -108,89 -99,007 10.0 -56.4 -55.5

Natural gas transportation -128,18 -111,3 15.2 -66.4 -62.4

Natural gas distribution -233,22 -105,31 121.5 -120.9 -59.0

Gross income 450,407 366,467 22.9 233.5 205.3

Operating expenses -109,51 -97,969 11.8 -56.8 -54.9

Allocated to electricity transmission (3) -6,521 -3,493 86.7 -3.4 -2.0

Electricity distribution -16,564 -19,17 -13.6 -8.6 -10.7

Natural gas transportation -22,937 -31,82 -27.9 -11.9 -17.8

Natural gas distribution -63,487 -43,486 46.0 -32.9 -24.4

Operating income 340,898 268,498 27.0 176.7 150.5

Dividends (4) 799,8 523,278 52.8 414.6 293.2

Interest temp. investments & pension trusts (5) 21,773 29,579 -26.4 11.3 16.6

Net exchange difference (6) -217,99 197,459 -210.4 -113.0 110.6

Net valuation of hedging contracts (7) 6,478 1,087 496.0 3.4 0.6

Other revenue (8) 14,297 22,925 -37.6 7.4 12.8

Non-operating expenses (9) -83,258 -67,073 24.1 -43.2 -37.6

Financial expenses -113,66 -272,36 -58.3 -58.9 -152.6

Other expenses -4,367 -6,603 -33.9 -2.3 -3.7

Net income before taxes and minority interest 763,969 696,786 9.6 396.0 390.4

Minority interest (10) -7,596 -59,464 -87.2 -3.9 -33.3

Provision for income tax -37,473 -31,894 17.5 -19.4 -17.9

Net income 718,9 605,428 18.7 372.7 339.3


Tabla No 31 – Disaggregation of the Consolidated EBITDA LTM Grupo Energía de Bogotá

EBITDA LTM COP MM Variation USD MM

1H 13 1H 12 % 1H 13 1H 12

Operating revenue 1,780,988 1,503,376 18.5 923.3 842.4

Operating costs -935,624 -739,044 26.6 -485.0 -414.1

Operating expenses -214,448 -198,641 8.0 -111.2 -111.3

Operating depreciation 113,401 102,734 10.4 58.8 57.6

Operating amortization 47,703 55,336 -13.8 24.7 31.0

Operating Taxes 4,323 32,664 -86.8 2.2 18.3

Dividend & interests earned 854,214 749,476 14.0 442.8 420.0

Interests in autonomous equity -11,486 -14,836 -22.6 -6.0 -8.3

Administration expenses -184,740 -169,469 9.0 -95.8 -95.0

Retirement pensions 39,139 33,123 18.2 20.3 18.6

Amortization 36,955 17,131 115.7 19.2 9.6

Depreciation 6,317 2,575 145.4 3.3 1.4

Provisions 18,529 25,586 -27.6 9.6 14.3

Taxes 66,546 78,064 -14.8 34.5 43.7

Capital reductions 0 0 0.0 0.0

Consolidated adjusted EBITDA 1,621,817 1,478,075 9.7 840.8 828.2

../../../../../../../../../../Escritorio/USB%20ARCHIVOS/2/en/EEB%202T%2013%20Report.xlsx#RANGE!fttable26

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Tabla No 32 – Disaggregation of the Consolidated EBITDA Quarterly Grupo Energía de Bogotá

EBITDA Quarterly COP MM Variation USD MM

1H 13 1H 12 % 1H 13 Al 1S 12 Operating income 169,981 131,678 29.1 88.1 73.8

Operating depreciation 27,798 20,035 38.7 14.4 11.2 Operating amortization 12,166 15,173 -19.8 6.3 8.5 Operating taxes 936 1,230 -23.9 0.5 0.7 Dividends & interests earned 20,366 44,486 -54.2 10.6 24.9 Interests in autonomous equity 4,178 -4,177 -200.0 2.2 -2.3 Administration expenses -39,637 -32,732 21.1 -20.5 -18.3 Retirement pensions 2,687 6,532 -58.9 1.4 3.7 Amortization 9,314 6,629 40.5 4.8 3.7 Depreciation 1348 1046 28.9 0.7 0.6 Provisions 9,967 10,000 -0.3 5.2 5.6 Taxes 13,490 15,793 -14.6 7.0 8.8

EBITDA 232,594 215,693 7.8 120.6 120.9

Annex 3: Link to EEB´s consolidated and stand-alone financial statements

http://www.grupoenergiadebogota.com/en/investors/financial-statements

Annex 4: 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.

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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.

Since 2009 share of EEB is negotiated in the Colombia stock exchange (BVC).

Annex 5: Technical and regulatory terms

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 6: Tables and graphics footnotes.

Table 3 - Financial indicators of EEB

(1) Is the result obtained when dividing consolidated EBITDA by operating income, added by dividends and accrued

interests (without including interests received from investments made to autonomous equity of pension funds) of the last 12 months.

(2) Consolidated debt less free cash.

(3) Consolidated financial expenses of the past 12 months Back to the chapter

Table 9 - EEB´s transmission business indicators

(1) Percentage of the infrastructure available in a period of time.

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(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.

Back to the chapter

Table 10– Selected financial indicators of EEC - DECSA

(1) Percentage of energy losses. Back to the chapter 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. Back to the chapter

Table 19 - Selected financial indicators of Codensa


(2) Accrued interest on financial debts for the previous twelve months. 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 30 - 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. (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.

Back to the chapter

investors report 1h 2013 · and egasa-egesur). the volume transported in jun-13 for export was...

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