Bogotá D.C., May 14, 2014€¦ · Investors Report 1Q 2014 Gerencia de Relación con Inversionistas, Teléfono: +57(1) 3268000 ext 1675 / 1827 E mail:[email protected] / [email protected]

Investor Report

First Quarter 2014

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Bogotá D.C., May 14, 2014

TABLE OF CONTENT

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

1.1 Overview of the electric and natural gas sectors .................................................................................. 1

1.2 Summary of EEB financial results 1Q 2014 ....................................................................................... 2

1.3 Relevant facts of EEB and of Grupo Energía de Bogotá ........................................................................ 2

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

3. PERFORMANCE OF CONTROLLED COMPANIES ....................................................................................................... 8

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

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

3.3. TGI ........................................................................................................................................ 11

3.4. CALIDDA ................................................................................................................................ 12

3.5. CONTUGAS ............................................................................................................................ 13

3.6. TRECSA ................................................................................................................................. 13

3.7. EEBIS Guatemala and Perú ......................................................................................................... 14

4. PERMORMANCE OF NON-CONTROLLED COMPANIES ........................................................................................... 15

4.1. EMGESA ................................................................................................................................ 15

4.2. CODENSA .............................................................................................................................. 17

4.3. PROMIGAS ............................................................................................................................. 19

4.4. GAS NATURAL ........................................................................................................................ 20

4.5. REP and CTM Perú ................................................................................................................... 22

5. Annexes ......................................................................................................................................................................... 24

Annex 1: Legal notice............................................................................................................................ 24

Annex 2: Definitions of EBITDA included in this report ................................................................................... 24

Annex 3: EEB Consolidated Adjusted EBITDA LTM and Quarterly.................................................................... 25

Annex 4: Link to EEB´s consolidated and stand-alone financial statements ......................................................... 26

Anexo 5: Technical and regulatory terms ................................................................................................... 26

Annex 6: Tables and graphics footnotes. .................................................................................................... 28

Annex 7: Overview of EEB ..................................................................................................................... 29

Investors Report

1Q 2014

Gerencia de Relación con Inversionistas, Teléfono: +57(1) 3268000 ext 1675 / 1827 E mail:[email protected] / [email protected] / [email protected]

www.grupoenergiadebogota.com/inversionistas

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1. EXECUTIVE SUMMARY AND RELEVANT FACTS

1.1 Overview of the electric and natural gas sectors

Table N° 1 - Overview of the electricity 1Q 14

Colombia Perú Guatemala

Installed capacity – MW 14,603 7,726 2,989

Demand - GWh 15,386 3,441 2,252

Demand growth 1Q 14 / 1Q 13 - % 4.5 6.6 6.80

Growth drivers 1Q 14 / 1Q 13

The upturn in

March of 2014 was

primarily due to the

impact of the new

load of Rubiales

and high

temperatures in the

country, which is

reflected in the

growth lodged in

warm regions.

This variation

(above the GDP

growth) is mainly

explained by the

growth in demand

for free customers,

mainly driven by

the entry into

operation of mining

projects as

Toromocho and

Puccamarca.

Increased domiciliary

installation as rate of

population growths, and

the expansion of the

power distribution

network.

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

Table N° 2 - Overview of the natural gas sectors 1Q 14

Colombia Perú

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

Domestic demand - Mm cfd 1,097.5 GBTUD 1,217.0 MMCFD

Change in domestic demand 1Q 14 / 1Q 13 - % 5.6 15.3

Explanation for demand variation

There are two main reasons for such

growth in local demand. The first one

relates to thermal electric

consumption and the other one, to an

increase in the consumption of NGV.

Thermal electric consumption

experienced an increase of 18%

mainly due to hydrology conditions

during this season. Regarding the

consumption of GNV increased by

30.2% due to promotional policies in

some companies of this sector, for

driving

the conversion of vehicles from fuel to

natural gas.

- The variation in demand

1Q14 to 1Q13 is 15.3 is mainly

due to increased consumption

of Lima. Approximately 50%

goes to foreign markets and

50% to the local market, where

Cálidda has approx. 80%

market share.

Sources: UPME, CON, MEM, Osinergim, Concentra. *Average Natural Gas Demand during 1Q 2014..

mailto:[email protected]



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1.2 Summary of EEB financial results 1Q 2014

Table N° 3 - EEB´s consolidated financial indicators

COP Million Al 1Q 14 Al 1Q 13

Operating revenue 542,254 449,468

Operating income 216,807 170,926

Consolidated Adjusted EBITDA Qtrly. 1,115,360 1,010,355

Consolidated Adjusted EBITDA LTM 1,880,913 1,604,916

Dividends and reserves declared to EEB 832,806 785,091

Net income 853,317 767,244

Dividends and reserves declared by EEB 590,533 403,604

Latest international credit ratings: S&P – May 14 BBB-; estable

Fitch – April 14 BBB-; estable Moody’s - April14 Baa3; estable

At the closing of 1Q 2014, consolidated net profit grew by 11.2% vis-à-vis the same period in 2013 and reached COP

853 billion. The above due mainly to growth of 20.6% in operating revenues, thanks to the good behavior of natural

gas businesses, distribution in Peru and transport in Colombia.

Operational profit grew by 26.8% and reached COP 216 billion, resulting from the excellent operational performance

of TGI and the increase in internal installations and consumption of new clients connected to the natural gas

distribution network in Cálidda (Perú).

Regarding non-operational accounts, one may highlight growth in dividends received from non-consolidated affiliates,

which reached a figure of COP 832 billion, representing growth of 6.1% vis-à-vis 1Q 2013, highlighting dividends

decreed by Emgesa, Codensa and Gas Natural Fenosa. Similarly, an increase of 22.5% in financial expenses, due to

greater consolidated debt of the group, resulting from loan contracted in 2013 for its subsidiaries in Peru

(Contugas/Cálidda) and at the level of EEB (Reopening of Bond EEB 2021). On the other hand, the foreign

exchange account, which reflects the impact of the balance of the debt contracted in dollars and expressed in local

currency, represented a lower net expense of 35.6%, due to a reduction of the devaluation of COP during this year.

On the other hand, EBITDA LTM continues growing significantly and reached COP 1.88 trillion, representing an

increase of 17.2% with respect to the same period of the previous year, and 5.9% with respect to the closing of 2013,

showing the permanent commitment of GEB with operational performance of its affiliates. Consolidated Adjusted

quarterly EBITDA grew by 10.4%, vis-à-vis the first period of 2013.

1.3 Relevant facts of EEB and of Grupo Energía de Bogotá

20.02.14. regarding the announcement made on 16.01.2014, about entering into a purchase agreement among

Transportadora de Gas Internacional S.A., TGI S.A. E.S.P., subsidiary of Grupo Energía de Bogotá, with Tecpetrol

International S.A., subsidiary of Organización Techint, whereby it purports to buy 23.61% of Transportadora de Gas

del Perú, TGP, and 100% of Compañía Operadora de Gas del Amazonas, COGA, EEB reported that on 17.02.2014

the period established to exercise the acquisition rights for current TGP shareholders expired. The shareholder TGP,

Carmen Corporation, controlled by Canada Pension Plan Investment Board, CPPIB, exercised its right for the total

stake in TECPETROL in TGP and in COGA, as per that published in the Securities Market Superintendence of

Peru´s Web Site.




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27.03.14. General Shareholders Assembly of Empresa Energía de Bogotá (EEB), headquarters to Grupo Energía de

Bogotá, decreed dividends amounting to COP 590.5 billion, equivalent to 70% of profits generated during 2013.

Dividend per share for 2014 is COP 64.32 and will be paid in three equal installments of COP 21.44 per share, on

May 27, June 26 and November 27, 2014, this payment to shareholders represents an increase of 46% of dividends

per share as regards that decreed in 2013. The Capital District of Bogota, main shareholder of EEB holding 76.28%

of total shares, will receive COP 450.4 billion.

27.03.14 General Shareholders Assembly authorized EEB’s legal representative to grant guaranties to its subsidiary

in Guatemala, EEBIS for up to USD 83 million to partially finance the execution of transmission projects the company

is currently undertaking in that country.

04.04.14 Empresa de Energía de Bogotá announced that its offer to acquire 31.92% stake in Transportadora de

Gas Internacional (TGI) for USD 880 million, was accepted by The Rohatyn Group (formerly Citi Venture Capital

International (CVCI) meaning the total shares of EEB in TGI amounts to 99.97%. The foregoing, as per decision of

the Board of Directors of Empresa Energía de Bogotá, on 11 December 2013, who approved to offer on this

transaction which is part of the investment plan 2013-2017 valued in USD 7.5 billion, which the company is

executing.

27.03.14 EEB has prequalified to participate in the process for 57.6624% of total subscribed and paid-in capital of

ISAGEN as per the times established in Decree 1609 of 2013 (Law 226 of 1995) by which the process to sell the

shares of the Nation and the Ministry of Finance and Public Credit currently holds in ISAGEN S.A. E.S.P. On August

15, 2013 the Board of Directors of Empresa de Energía de Bogota had approved EEB’s participation in the

shareholding acquisition process. The process schedule is provisionally suspended by decision of the Consejo de

Estado (High Court). The Trade and Industry Superintendence have not responded yet to the appealing filed by EEB

on 21.02.2014 against the decision conditioning EEB’s participation in ISAGEN’s bidding process.

07.05.14 The Energy Mining Planning Unit (Upme) awarded to Empresa Energía de Bogotá (EEB), UPME – 01 –

2013 Sogamoso – Norte – Nueva Esperanza project with an estimated investment of Net Present Value of revenues

amounting USD 171. The project includes the design, acquisition of equipment, construction, operation and

maintenance of the 500 kV North Substation and the 500kV transmission line Sogamoso – Norte - Nueva Esperanza.

This project is part of the Expansion Plan, UPME 2013-2027. This project is amongst one of many that EEB

currently develops in different areas of the country, and it is contemplated among the UPME Explansion Plan (2013-

2027).

22.01.14 EEB presented an offer for the UPME 05 of 2012 Second circuit Cartagena – Bolívar bidding process,

which consists in the construction of a 220kV line from the Cartagena substation to Bolivar substation with a length of

21 kms and 1 bay line in each substation. As EEB was the only bidder, according to CREG Resolution - 022 2001,

such award is still pending from UPME final decision.

08.05.14 Extraordinary Shareholders Assembly of Empresa de Energía de Bogotá (EEB) appointed new members to

the Board of Directors. Within the independent members are Mauricio Cabrera, Mauricio Cardenas Müller, and

Claudia Castellanos and within the members representing the majority shareholder are Gustavo Petro, Bogotá

Mayor, Guillermo Perry, former Minister of Finance, Fernando Arbelaez Bolaños, Researcher and coordinator

Observatory and Numerical Operations ODEON Economy of the University Externado of Colombia, Alberto Merlano

Alcocer, Current manager of the Empresa de Acueducto y Alcantarillado de Bogotá, EAAB, Saul Kattan Cohen, CEO




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of Empresa de Telecomunicaciones de Bogotá, ETB, and German Corredor Avella, coordinator Colombian Energy

Observatory of National University.

TGI

- In January 2014, the Board of Directors ratified the company’s CEO, Ing. Ricardo Roa, for a period comprising

25 February 2014 and 26 February 2016.

- In February 2014, the Board of Directors approved the Cusiana Phase III expansion project, which includes the

beginning of the bidding process for the supply, transportation, nationalization and start-up of the operation of

three new natural gas compression units (Miraflores, Puente Guillermo and Vasconia). The feasibility of the

project depends on the final reception of the remitting companies.

- The General Shareholders Assembly approved the project to distribute profits amounting to COP 130 billion,

which were paid up on 24th

April to minority shareholders and the next May 26th

will be paid for the major

shareholder.

- TGI maintains a market share of 48.2% at the closing of 1Q 2014.

Cálidda

− In March, the Resolution of the Board of Osinergmin N° 038 - 2014 -OS/CD was published, approving the

dissemination of the Resolution Project with sets a Unique Natural Gas Distribution Tariff by the Pipeline

Network of Lima and Callao, which comprises the period May 8, 2014 – May 7, 2018. On 31 March comments

and observations of such publication were sent by Calidda and it hopes that approximately in July 2014 the final

Resolution for the Setting of the Tariff is disseminated.

Contugas

− The Commercial Start Up of Contugas Infrastructure was performed on 30.04.2014 after executing jointly with

the Energy and Mines Ministry of Peru and Enbridge Technology INC, international inspector, the final test

minutes certifying that works have been completed with applicable standards, declaring that the natural gas

system is ready for service. The pipeline was tested in a section with pneumatic tests with natural gas

constituting a milestone in the industry as very few pipelines in the world have used this scheme.

− At the closing of March 2014, the company has over 11,700 enabled customers (with over 26,158 households

sales with 21,840 internal installations built, pending their enabling process).

− At the end of February 2014, the first industry that started natural gas consumption was enabled (Textiles del

Valle). Subsequently, a GNV station has been enabled as well as a Paper mill company. At the beginning of 2Q

2014, some fishing and steel companies were connected.

− Regarding changes to BOOT Contract for Distribution in the ICA Department, at closing March 2014 it has

managed to agree with the General Directorate of Hydrocarbons, entering into a new addendum to the

aforementioned Contract. This change to the Contract is deemed vital for company activities as it eliminates the

generation of potential contingencies and/or challenges from the Peruvian Government. To date, we are

pending the Ministry’s Resolution empowering the Peruvian Government to enter into such addendum.

CTM

− In April, risk rating agencies Moody’s [Baa3] and Fitch [BBB-] confirmed the investment grade of Consorcio

Transmantaro with stable outlook.

− Promigas

− Promigas, together with five international companies namely electric, fuel, ground and maritime transport,

executed a Development Agreement to assess the possibilities of building a terminal to import Liquefied Natural

Gas -LNG- to the Dominican Republic and study options to supply this fuel to the country’s industrial sector.




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2. FINANCIAL PERFORMANCE GRUPO ENERGÍA DE BOGOTÁ

Table N° 4 - EEB’s consolidated financial results

COP Million Var.

Var. USD Million Var. Var.

1Q 14 1Q 13 COP

% 1Q 14 1Q 13 USD %

Operating revenue 542,254 449,468 92,786 20.6 275.9 245.3 30.6 12.5

Cost of sales -271,649 -229,143 -42,506 18.5 -138.2 -125.1 -13.2 10.5

Gross profit 270,605 220,325 50,280 22.8 137.7 120.3 17.4 14.5

Operating expenses -53,798 -49,399 -4,399 8.9 -27.4 -27.0 -0.4 1.5

Operating profit 216,807 170,926 45,881 26.8 110.3 93.3 17.0 18.3

Dividends 832,806 785,091 47,715 6.1 423.8 428.5 -4.7 -1.1

Non-operating expenses -118,710 -154,240 35,530 -23.0 -60.4 -84.2 23.8 -28.2

Net income before taxes and minority interest 930,903 801,777 129,126 16.1 473.7 437.6 36.1 8.2

Minority interest -28,541 -13,782 -14,759 107.1 -14.5 -7.5 -7.0 93.1

Provision for income tax -49,045 -20,751 -28,294 136.4 -25.0 -11.3 -13.6 120.3

Net income 853,317 767,244 86,073 11.2 434.2 418.8 15.4 3.7

Consolidated operational revenues of the Group grew by 20.6% in 2014 compared to the same period in 2013 as a

result of: (i) Increase of revenues on account of natural gas distribution in Peru due to an increase in connections

during the quarter with household and commercial clients enabled and connected to Calidda’s network and to

greater distributed and invoiced volume, (ii) sale of the first internal installations to residential clients and revenues on

account of connection rights to industrial clients in Contugas, and (iii) Greater revenues on gas transport in TGI

Colombia due to the tariff scheme in force which remunerates the investment and is indexed to USD. In Colombian

Pesos, TGI sales expressed in dollars show an increase of 19.7%, when compared to the same period in 2013 (7.8%

expressed in USD) and represent, to date 62% of total TGI sales.

Operational profit grew at a faster pace than operational revenues given that operational costs and expenses showed

a moderate increase, in (i) TGI operational costs and expenses decreased by 12.1%, jointly due mainly to a

reduction in costs of fuel gas, and the elimination of occasional consumption, the reduction of costs in materials and

supplies, personnel service provision and administrative expenses. (ii) On the other hand, Contugas and Cálidda

show increases mainly in costs related to fees, maintenance activities in the gas network and the cost of internal

installations by third parties in the gas distribution business in Peru, which showed a significant increase in

connections and clients during 1Q 2014. (iii) In the EEB transmission business, TRECSA and EEBIS Guatemala

increased their expenses on account of fees and services, Procurement of supplies, wages, salaries and fringe

benefits; and allocated expenses. As a result of the foregoing, operation profits during 1Q 2014 reached COP 216.8

billion, increasing by 26.8% vis-à-vis the same period of the previous year.

Regarding non-operational revenues and expenses the main variations corresponds to (i) dividends received from

non-controlled companies amounted to COP 832.8 billion which represent an increase of 6.1%; (ii) financial

expenses increased as a result of debt operations contracted in 2013 by Cálidda/Contugas and the reopening of the

2021 bond; (iii) the reduction in devaluation of COP during 1Q had a positive impact in the foreign exchange account,

moving from an expense of COP 87,480 million in March 2013 to an expense of COP 56,313 million in March 2014,

as a result of updating the financial obligations of the Group expressed in USD, a record which has only accounting




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effects and does not respond to cash expenditures. The Group continues working in structuring hedging operations

to establish a limit to losses in coverages currently contracted at the level of some subsidiaries.

Finally, net profit during 1Q closed at COP 853.3 billion, representing an increase of 11.2% vis-à-vis the previous

year.

Table N° 5 - EEB’s Financial indicators

COP Million

USD Million

1Q 14 1Q 13 Var COP Var % 1Q 14 1Q 13 Var USD Var %

Consolidated adjusted EBITDA Qtrly 1,115,360 1,010,355 105,005 10.4 567.52 551.44 16.08 2.9

Consolidated adjusted EBITDA LTM 1,880,913 1,604,916 275,997 17.2 957.05 875.95 81.10 9.3

Consolidated EBITDA margin % 62.2% 63.2% 62.2% 63.2%

Quarterly Consolidates Adjusted EBITDA during 1Q 2014, which includes dividends received from non-controlled

subsidiaries reached COP 1.11 trillion, representing an increase of 10.4%, explained by (i) Greater dividends and

interest earned, COP 54,641 million, and (ii) improved operational performance of COP 48,882 million. Consolidated

adjusted EBITDA LTM reached COP 1.88 trillion, +17.2%, mainly due to (i) Greater dividends and interests of COP

96,429 million; (ii) better operational performance amounting to COP 61,224 million; and (iii) greater provisions for

COP 65,404 million.

Table N° 6 - EEB´s Consolidated debt structure

1Q 14 Part. 1Q 13 Part.

1Q 14 1Q 13

COP Million

% COP

Million %

USD Million

USD Million

Financial debt in COP 101,764 2.2 1,340 0.0 51.8 0.7

Financial debt in USD 4,308,149 93.0 3,230,256 93.0 2,192.1 1,763.0

Derivatives position 221,477 4.8 242,120 7.0 112.7 132.1

Total financial debt 4,631,389 100 3,473,716 100 2,356.6 1,895.9

Net Debt/Consolidated Ajusted EBITDA LTM – OM: <4.5 1.39 - 1.52 - 1.39 1.52 Consolidated Adjusted EBITDA LTM/ Interests – OM: >2.25

10.96 - 12.44 - 10.96 12.44

Total consolidated financial debt grew by 33.3%, at comparative level from quarter to quarter may be explained by: (i)

disbursement of new loan amounting to USD 280 million and repayment of short-term syndicate loan in Contugas (USD

215 million) – net increase USD 65 million; ii) Issuance of bonds in Cálidda - USD 320 million, less repayment of debt

1,010,355

232,594 248,733 284,226

1,115,360

1Q 13 2Q 13 3Q 13 4Q 13 1Q 14

Figure 2 - Quarterly Adjusted EBITDA - COP

1Q 13 2Q 13 3Q 13 4Q 13 1Q 14

Consolidated AdjustedEBITDA

1,604,916 1,621,817 1,668,543 1,775,908 1,880,913

Var. 25% 1% 3% 6% 6%

Figure 1 - Consolidated Adjusted EBITDA LTM- COP

Consolidated Adjusted EBITDA Var.




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amounting to USD 197 million-; iii) Reopening of EEB 2021 bond - US$139 million, less repayment of debt with

multilateral bank (CAF) amounting to USD 7 million-; iv) greater value of EEB and TGI debt due to increase in the

exchange rate; and (v) indebtedness in EEC to finance short term needs.

Figure 3 – Debt indicators

In accordance with the definitions in the contract of the notes issued by EEB in November 2011, leverage indicators and

coverage interest are calculated based on Consolidated Adjusted EBITDA, which includes capital reductions received by

EEB from its affiliates.

Net leverage indicator decreased due to more than proportionate increased in EBITDA (+17.2%) vis-à-vis a

moderate increased in net debt (+6.7%).

Interest coverage indicator shows a moderate reduction due to a greater increase in net financial expenses on

account of interests (+33%) with respect to 17.2% increase in Consolidated Adjusted EBITDA.

1.52 1.411.60

1.48 1.39

4.5

1Q 13 2Q 13 3Q 13 4Q 13 1Q 14

Net Debt / Consolidated Ajusted EBITDA

Net Debt / Consolidated Ajusted EBITDA OM <

12.44

13.18

9.10

11.06 10.96

2.5

1Q 13 2Q 13 3Q 13 4Q 13 1Q 14

Consolidated Adjusted EBITDA / Interests

Consolidated Adjusted EBITDA / Interests OM >

14.3 14.3 24.3

117.0

24.3

290.0

7.1

749.0 750.0

320.0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

EEB Debt Maturity Profile 2014 -2023




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3. PERFORMANCE OF CONTROLLED COMPANIES

Table N° 7 – Financial indicators of Controlled investments 1Q 14

COP Million USD Million

EEB* TGI Calidda EEB TGI Calidda

Operational revenue 27,304 233,089 194,592 13.9 118.6 142.3

Operational profit 15,644 162,822 28,322 8.0 82.8 15.9

EBITDA LTM 16,354 709,652 319,809 8.3 361.1 76.6

Net profit 10,297 59,675 16,702 5.2 30.4 8.4

*Figures of the EEB Transmission Business.

Table N° 8 - Overview of the EEB group – Controlled Companies expansion projects: 1Q 2014 Executed

Proyecto / Cía. Country Sector USD MM Status In Operation:

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

ICA Perú – Contugas Perú T + D NG 358 On stream On stream

Lima Callao – Cálidda Perú D NG – pipeline expansion 500 Under construction 16-18

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

Subestaciones – EEB Colombia T E 322* Under construction 14-15

Ingenios – EEBIS Guatemala T E 44 Planning 15

T: Transportation; D: Distribution; NG: Natural Gas; E: Electricity * Sum of the net present value of project revenues awarded recently by the UPME to EEB.

Transmisión EEB; $8.9; 12.9%

EEC; $4.1; 5.5%

TGI; $8.8; 11.7%

Cálidda; $16.2; 21.8%

Contugas; $25.0; 33%

TRECSA; $11.0; 14.8%

EEBIS Guatemala; $0.51 0.7%

Figure 5 - CAPEX Executed - Controlled Companies 1Q 14 USD 74.4 MM




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3.1. EEB – Transmission Business

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

1Q 14 1Q 13 Var %

Operating income - COP MM 15,644 13,198 18.5

EBITDA Qtrly. - COP MM 16,354 16,880 -3.1

Investments - COP MM 17,455 4,897 256.5

Infrastructure availability - % (1) 99.94 99.95 -0.010

Compensation for unavailability - % (2) 0.0694 0.012 459.7

Maintenance program compliance - % (3) 100 100 0.0

Participation in Colombia’s transmission activity - % (4) 8.26 8.09 2.1

Footnotes Annex 6

Technical indicators show stability as regards operating management of the company maintaining compliance in

excess of those imposed by regulations without detriment to the Company.

Period investments include amounts related to the construction of expansion projects in the National Transmission

System in Colombia.

Progress of EEB Investment Projects in the Transmission Business:

UPME 02-2009 – Armenia Project: Cutoff date as of 31 March 2014 continues pending the official statement from

ANLA with respect to the issuance of the project’s environmental license. The foregoing, taking into account that by

means of official document 4416 of 23 December, this entity declared that it had gathered all the information required

for such process, so as per the times stipulated for this stage of the procedure, it should have issued its comment on

30 January 2014. With respect to the supply of equipment, the line purchase has been completed and the substation

equipment are already available for installation. Progress is at 54.92% vis-à-vis 69.24% expected. The project

schedule was adjusted by extension in project implementation.

UPME 05-2009 - Tesalia Project: Cutoff date as of 31 March 2014, progress has been made in civil works of the

transmission line Tesalia - Altamira and the reconfiguration of Betania – Jamondino, which progress is at 25%.

Furthermore, civil works in the Tesalia substation and the enhancement of the Altamira substation show progress of

70% and the mounting stage was activated. For the Tesalia - Alférez transmission line, 86% of its layout has been

completed, and reconfiguration progresses at 77% and 94% of the route has been developed, the Previous

consultation process is still in process in three indigenous communities present in the Tolima and Valle del Cauca

departments. As regards fulfillment with environmental management license granted, follow-up activities are in

progress as well as compliance with the Environmental Management Plan. Progress of the project is at 57.88% vis-

à-vis 82.17% programmed.

UPME 03-2010 – NORTE Project: Cutoff date 31 March 2014. Detailed design of transmission lines has been

completed in stretches Chivor-Chivor II and Chivor II-Norte. Completion of stretch Norte-Bacatá has not been

possible to conclude. Progress on the design of lines is at 81%. Environmental Alternative Diagnosis was filed

before ANLA on 31 October 2013. The project is pending of ANLA’s opinion on the alternative selected. Progress is

at 22%, although it was programmed to have reached 27%.




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SVC TUNAL: Cutoff date as of 31 March 2014, this project shows progress of 38.5% vis-à-vis 43.7% programmed.

Construction activities began by fixing the roads and excavations. By the end of March, 32% has been excavated

and debris has been removed. Civil design and electromechanical reviews continue. EEB provided support during

FAT tests on reactors and cooling system. A contingency plan is being implemented and is under execution to

make-up for delays.

3.2. DECSA – EEC

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

1Q 14 1Q 13 Var %

No. of Clients 268,215 258,048 3.94

Operating Revenues - COP MM 72,760 70,639 3.00

Operating Profit - COP MM 12,011 13,347 -10.01

Quarterly EBITDA 15,859 17,038 -6.92

Net Profit – COP MM 5,161 6,721 -23.21

Dividends and Reserves Decreed to DECSA 0 8,898 -

Losses - %(1) 3.71% 5.70% -34.96

Net Debt / EBITDA LTM 1.37 -0.06 -2,356.7

EBITDA LTM / Interest LTM 17.34 30.30 -42.8

* Controlled by DECSA

Footnotes, Annex 6.

Growth in operation revenues reached COP 2,121 million, evidencing an increase in energy sales amounting to COP

1,584 million and also growth in other revenues amounting to COP 537 million where an increase in equipment sales

can be highlighted of COP 532 million.

EEC demand grew 3.05% during 1 Q 2014 vis-à-vis the same period of the previous year.

Operation profits decreased when compared to operational revenues, mainly by the increase experienced in fixed

costs, which increase stems from inflation of contracts and restructuring of personnel during October 2013. The

foregoing is offset by fewer contracts with third parties and a reduction in O&M costs.

EBITDA decreased in COP 1,179 million when compared to the same quarter of 2013, explained mainly by a lesser

distribution margin of COP 92 million, and an increase in fixed costs of COP 1,087 million, mainly by an increase in

the headcount hired and an increase in prices in meter reading contracts, invoicing delivery, commercial revisions,

network operation and maintenance among others.

Finally, EEC continues fulfilling the investment plan aimed at improving quality and reliability of its distribution

system, thus during 1Q 2014 it achieved a 93.8% execution of its investment plan, giving greater significance to the

contingency plan to recover energy losses, and such investment is evidenced given that the company met its loss

index goal reaching 10.68% at the closing of 1Q 2014, a reduction of 1.91 percentage points with respect to the

previous year.

EEC decreed dividends amounting to COP 2,000 Million payable in November 2014 to all shareholders.




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3.3. TGI

Table N° 11 - TGI’s selected indicators

1Q 14 1Q13 Var %

Operating revenue -COP MM 233,089 205,662 13.3

Operating income -COP MM 162,822 125,688 29.5

EBITDA LTM - COP MM 709,652 555,833 27.7

Net income - COP MM 59,675 15,202 292.5

Transported volume - Mm cfd 469 426 10

Firm contracted capacity - Mm cfd 646 622 3.9

International debt ratings S&P - may. 13: Fitch - nov.13:

Moody’s – mar. 12

BBB-, estable BBB-, estable Baa3, estable

Operational revenues during first quarter 2014 show an increase of 13.3% when compared with the same period of

the previous year. In addition to the tariff scheme in force and the coming on stream of Cusiana Phase II, this increase

was the result mainly of (i)Increase of transported volume, which grew by 10% with respect to 1Q 2013. (ii) Increase

of in firm contracts. At the closing of the quarter, 20 more contracts were executed than those reported in the same

period of the previous year, representing an increase of contracted volume of 24 mmcfd. This contracted volume

represents 3.3% of the available capacity of the system (excluding the capacity that TGI requires for its operations).

The variance in the number of contracts is due to the regulatory changes affecting the company, CREG 089-2013

Resolution, according to which carriers must contract for each stretch in the system and with standard capacities in

each of these stretches.

Compared with the same quarter of the previous year, at the closing of March 2014, operational profits grew 29.5%

above operational revenues. This increase is the result of operational costs and expenses decreasing by 12.1%,

mainly due to a decrease in personnel services and general services and fuel gas costs.

Regarding non-operational accounts, revenues received on hedging valuation operations and the decrease in losses

on foreign exchange account, which effect has only accounting impact but does not affect company’s cash,

represents the accounts with greatest impact during the period. As a result, company’s net profit increased by 292.5%

when compared with the same period in 2013.

Progress in TGI investment project:

La Sabana Station:

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

having the same name, shows progress at 48.8%:

As at March 31 project’s detailed engineering has been completed.

The first compression unit - MOPICO and its auxiliary services have arrived on site. The second

compression unit is in the port of Cartagena pending to be transported to site.

The construction of foundations for frequency inverters, transformers and compressors has started.

Likewise, as of 1Q 2014, the pre-manufacturing of pipeline and civil works in the gas pipeline connection

bunker began.

August 2014 is the estimated coming on stream date for this project.




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Enhancement of Cusiana - Apiay – San Fernando

Currently, the company is assessing alternatives to make viable a project that aims to increase the capacity on the

Cusiana-Apiay strecht, taking into consideration Ecopetrol´s decision of not requiring natural gas transport capacity

from Cusiana to San Fernando. The New Business and Commercial area conducted a presentation to TGI main

customers, in order to promote the enhancements to the transport system.

3.4. CALIDDA

Table N° 12 - Cálidda’s selected indicators

1Q 14 1Q 13 Var %

Number of clients 185,947 114,509 62.4

Operating revenue - USD Thousands 142,313 91,632 55.3

Operating income – USD Thousands 15,924 12,074 31.9

EBITDA LTM – USD Thousands 76,617 64,539 18.7

Net Income – USD Thousands 8,448 6,717 25.8

During this 1Q, 22,124 connections have been made, 105% more when compared to 1Q 2013. In March, it reached a

new connection record of 8,876 (3,663 vs. March 2013). Currently, Cálidda’s local market share is 73%.

Regarding Residential and Commercial segments, Cálidda increased the number of clients to 22,118, from different

districts in Peru where the company operates, reaching a total of 182,550 clients in this segment.

During 1Q, Cálidda increased its sales volume by 29% when compared to the same period of 2013. The foregoing, is

explained by energy generators, which have joined Calidda’s distribution system such as Fénix (82 MMCFD) and

Termochilca (45 MMCFD).

During 1Q 2014, Cálidda has built 4 kilometers of high-pressure steel networks and 659 kilometers of a secondary

polyethylene network. Calidda’s distribution system reached a total of 4,067 kilometers of buried pipelines.

The pace of expansion of the polyethylene network has increased considerably, reaching in 1Q 2014 38,951 rings vis-

à-vis 12,264 rings in 1Q 2013.

As regards annual variation, Cálidda enjoyed greater revenues on account of sales of Gas and Transport due to

greater volumes, (+16%, +USD 8 Million) and a reduced average tariff (-1%, -USD 1). Increased revenues on account

of distribution services (+USD 6 Million). Increased revenues on account of installation services (+USD 6 Million) and

increased number of installations (2013: 11,208 vs. 2014: 22,010). Greater revenues on account of the expansion of

the network (+USD 32 Million).

At the closing of 1Q 2014, network penetration rate reached 50% as a result of Cálidda’s commercial strategy focused

mainly on districts characterized by having medium to low income households, where savings on account of natural

gas vis-à-vis other alternate fuels are highly appreciated, and therefore this service enjoys greater acceptance. The

objective by the end of 2014 is to reach 59%.

Operation profit grew at a lesser pace than operational revenues due to increased costs in the sale and transport of

gas as a result of increased volume (+16%, USD 8 Million) and a lower average tariff (-1%, -USD 1 Million). Greater

costs on account of installation services and a greater number of installations and greater costs incurred on the

enhancement of the main network.

At the closing of 1Q, EBITDA (LTM) was greater than EBITDA LTM in 2013 by 7%, resulting from (i) increased

invoicing due to two new energy generation plants (Fénix and Termochilca) and also to the volume sold in more




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13

profitable segments such as Residential and Commercial, Industrial and GNV service stations, and (ii) greater

revenues due to internal installation services in homes.

EBITDA’s adjusted margin decreased slightly due to (i) greater operational costs derived from an increased in

tariffs offered by Calidda’s contractors on account of internal installation services, which increased by 3% in

August 2013, and (ii) a reduced average distribution tax tariff due to quarterly adjustments reflecting a reduction

in international prices of steel and polyethylene products (-1,5 % when compared to Q1 2013).

Progress in Cálidda’s investment projects:

There is continuity in projects, the start-up is individual and by stretches built. However, both the Enhancement of

the Main Network and Chilca Generators have concluded.

3.5. CONTUGAS

Commercial start-up of Contugas infrastructure was carried out on 30.04.2014 after executing a joint contract

with the Ministry of Mines and Energy of Peru and Enbridge Technology INC, international inspector, completed

the final minutes of tests certifying the works have met all applicable standards, declaring that the natural gas

systems is ready for service.

The Peruvian Government has granted 33 additional days on account of force majeure mainly due to lack of

water from water sources foreseen to conduct hydrostatic tests of the gas pipeline. With these additional 33

days, the new date for the Startup of the Commercial Operation is 10.05.14. The startup was achieved prior to

such date, as previously mentioned.

At the closing of March 2014, the company has over 11,700 enabled clients (with over 26,158 residential sales and

21,840 internal installations built, pending enabling).

At the end of February 2014, the first industry that began the consumption of natural gas was enabled (Textiles del

Valle). Subsequently, a GNV station has been enabled and a Paper mill company. At the beginning of 2Q 2014,

some fishing and steel companies were connected.

Progress of Contugas investment projects:

Execution percentage at the closing of 1Q 2014 was 92% with a cumulative investment of USD 305 million.

The project comprises over 340 km of main network and high-pressure stretches and over 700 kilometers of low-

pressure polyethylene networks. The gas pipeline will have a capacity exceeding 300 MMCFD and will connect

50,000 residential clients during the first six years of Startup of Commercial Operation.

3.6. TRECSA

Progress of Trecsa investment projects:

1Q 2014 project’s progress is set at 67%.

Project Permits of the Project

60 municipal endorsements (81%)

2,259 forest licenses obtained (ECUTs before INAB) representing 68% of total estimated files.




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Agreements entered into with owners of 656 km of properties (79%), 598 kilometers have been granted title (72%)

and

460 km are available (55%) for construction works in transmission lines.

There are 1,140 available sites (56%) for construction of structures of transmission lines.

Construction

882 (43%) civil works structures completed and 731 (36%) mounted structures.

Progress of 53% in substations’ civil works (work conducted in 17 substations), 41% of montage (in 12 substations)

and 23% in tests (3 substations).

3.7. EEBIS Guatemala and Perú

On 7 April 2011 Guatemala EEB Engineering and Services Sociedad Anónima is incorporated, which objective is

to provide solutions of electrical engineering and related areas.

Progress of EEBIS Guatemala investment projects:

Currently the project under execution consists on the construction of 90km of transmission lines, 4 new substations

and the enhancement of 3 existing ones, which is being developed with 5 sugar mills located in the southwestern

area of the country. The respective contract became official as of 11 July 2013. Investment of the Project reached

USD 43.4 million approximately. Progress is at 34% as of 1Q 2014. Regarding technical issues, contract processes

for construction, montage and start up services of substation has begun; and offers to contract transmission line

services has also been received. Regarding environmental issues, archeological rescue tasks have been completed

in the Madre Tierra Substation site, and environmental studies by the Environmental and Natural Resources Ministry

have concluded. In terms of right of way, the sugar mills are defining the price to be paid on account of right of way

on third party properties.

Progress of EEBIS investment projects in Peru:

The constitution of an affiliate in Peru was authorized by EEB’s Board of Directors on 18 April 2013, to materialize

market opportunities in that country in terms of engineering and project services, specifically the energy power sector

(gas and electric power). The company was incorporated on 25 June 2013.

Progress of EEB Mobility (Massive Transportation System) investment project:

The EEB Board of Director authorized the company to participate in mobility projects that incorporate an important

electrical component, once profitability and convenience are assessed. La Empresa de Movilidad de Bogotá SAS

E.S.P. was established with the following objectives: (i) generation, distribution and sale of electric energy to massive

transportation system of passengers, freight and other modalities; (ii) planning, preparation of studies and designs,

supply construction, installation, supervision, operation and maintenance of electric and gas infrastructure; (iii)

manage the electrical component and gas projects of massive transportation systems. Currently, the participation in

massive transportation projects in Bogotá are been assessed through state-private partnership (APP Spanish

acronym).




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4. PERMORMANCE OF NON-CONTROLLED COMPANIES

Table N° 13 - Non-controlled investments financial indicators 1Q 14

COP Million USD Thousands

Emgesa Codensa Gas Natural Promigas REP CTM Operating revenue 547,670 797,340 356,136 80,996 31,074 24,118

Operating income 315,903 208,001 75,031 43,868 10,897 13,110

EBITDA LTM 352,066 272,706 83,723 49,790 20,450 19,613

Net income 197,748 128,460 59,497 85,290 6,034 5,806

Dividends and reserves declared to EEB 450,465 277,944 67,311 19,075 6 7.3

Capital reductions to EEB - - - - - -

4.1. EMGESA

Table N° 15 Overview of Emgesa 1Q 14

Installed Capacity - MW 2,975

Capacity Composition 11 Hydro y 2 thermo

Generation– Gwh 2,991

Sales– Gwh 3,677 (Includes sales contracts and spot sales)

Control Enel Energy Europe S.R.L.

EEB Participation 51.5% - 37.4% acciones ordinarias; 14.1%

preferenciales sin derecho a voto-

Emgesa Total; $102.1;

58%

Codensa; $20.4; 11%

Promigas; $13.9; 8%

Gas Natural; $1.4; 1%

REP; $14.3; 8%

CTM; $24.2; 14%

Graph 6 - CAPEX Executed - Non - Controlled Companies 1Q 14USD 176.7 MM

Table N°14 - Expansion projects of non-controlled companies CAPEX Executed 1Q 2014

Project Company Sector Country USD

Million On Stream

Quimbo Emgesa G Electricity Colombia 102.1 1S 15

Attention New Demand Codensa D Electricity Colombia 20.5 14

Concession Extensions REP T Electricity Perú 14.4 15-18

Extensions Concession and New CTM T Electricity Perú 24.3 14-17

System Extensions PROMIGAS T + D natural gas Colombia 14.0 14-18




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Emgesa total sales in the spot market and contracts decrease as a result of reduced own generation and

due to low water levels in its dams (Pagua and Guavio) and maintenance in thermal plants (Cartagena and

Termozipa). Sales make up was 69% through contracts with clients in the wholesale and non-regulated

market and 31% remaining via contracts in the spot market through the AGC mechanism (Automatic

Generation Control).

Emgesa generation represented 19.09% of the total system and was slightly lower than the generation of the

same period during 2013. In terms of gross installed capacity, Emgesa represents 20.3% of the country.

Table N° 16 - Selected financial indicators of Emgesa


1Q 14 1Q 13 Var % 1Q 14 1Q 13 Operating revenue 547,670 580,175 -5.6 278.7 316.7

Cost of sales 225,419 264,517 -14.8 114.7 144.4

Administrative expenses 6,348 6,065 4.7 3.2 3.3

Operating income 315,903 309,593 2.0 160.7 169.0

EBITDA YTD 352,066 349,089 0.9 179.1 190.5

EBITDA Margin 62.7% 63.5% 62.7% 63.5%

Net Income 197,748 196,153 0.8 100.6 107.1

Dividends and reserves declared to EEB 450,465 405,659 11.0 229.2 221.4

Capital Reductions to EEB - - -

Debt / EBITDA 1.7 1.4 1.7 1.4

EBITDA / Interests 12.9 11.6 131.5 12.9 11.6

Footnotes Annex 6

2,622

1,211

3,833

2,533

1,144

3,677

Contracts Spot Total

Demand GWh

1Q 13 1Q 14-3.4%

-5.5%

-4.1%

3,035

24

819 843

2,991

37

694 731

Power Generation Contracts Spot Total Supply

Supply GWh 1Q 13 1Q 14

-1.4%

54.2% -13.3%-15.3%




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Operation profit grew at a faster pace than operational revenues as a result of less water and thermal generation and

therefore fewer power purchases in the spot market and reduced fuel consumption.

Net profit showed an increase of 0.8% due mainly to improved operational results and lesser cost of sales resulting

from reduced consumption of fuels.

EMGESA S.A. ESP reported that by means of Resolution No. 0398 of 12 March 2014, the Financial Superintendence

of Colombia, which guideline became effective as of 11 April 2014, authorized an increase in total limit of the Issuance

and Placement of ordinary bonds Program responsibility of Emgesa from eight hundred and fifty thousand million

($850.000 million) to a global limit for the Program of (COP 2.750.000.Million).

Emgesa S.A ESP reported on 13 March 2014 that its Board of Directors approved an increase of US$256 million

(2010 fixed exchange rate) for the investment of the Hydroelectric Project of El Quimbo, initially approved in April

2010 for USD 837 million (constant dollar value 2010). Thus, total project budget amounts to USD 1.093 million

(constant dollar value 2010). This increase is the result of different external events, modification and updates on

specifications and designs, as well as reprogramming of works, which have compelled the project to conduct

budgetary updates in the line items of the socio-environmental plan, dam, civil and engineering works.

Emgesa S.A. ESP reported on 10 April the list of the Board of Directors approved by the General Shareholders

Meeting.

Likewise, Emgesa’s Board of Directors decreed profits for 100% of net profits 2013 equivalent to COP 870,141 million

of which COP 450,465 million correspond to EEB and will be paid in 3 equal installments.

Progress of EMGESA investment project:

Table N° 17 – Capex 1Q 14 1Q 13 Var %

COP Million 200,708 108,892 84.3

USD Million 102.1 59.4 71.8

Expansion investments carried out by Emgesa focused in El Quimbo Hydroelectric Power Plant and revamping of the

Salaco generation chain. Likewise, investments were carried out in preventive maintenance in hydraulic and thermal

power stations of the company to ensure reliability and availability thereof.

El Quimbo Hydroelectric Project: Investment to date in El Quimbo project amounts to USD 639.8 million, progress is

at 64.8%.

4.2. CODENSA

Table N° 18 - Overview of Codensa 1T 14

Number of Clients 2,709,610

Market Share - % 23.5%

Codensa Demand – Gwh 3,612

Var % Codensa Demand 1T 14 / 1T 13 1.98%

Loss Index (%) 7.07%

Control Enel Energy Europe S.R.L.

EEB Participation 51.5% -36.4% ordinary shares; 15.1% preferred

non-voting shares




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Power demand in Codensa’s area: grew by 1.98% on March 2014, resulting from the recovery of the regulated market

(residential and commercial clients), manufacturing industry and the use of Codensa lines by other electric power

vendors.

Electric power National Demand: grew 3.43% as of March 2014, maintaining a slight recovery in the mining and

manufacturing industry in the country’s central region and high temperatures in the northern and eastern regions of

the country.

Table N° 19 - Selected financial indicators of Codensa


1Q 14 1Q 13 Var % 1Q 14 1Q 13 Operating revenue 797,340 760,524 4.8 405.7 415.1

Cost of sales 568,563 558,748 1.8 289.3 305.0



EBITDA YTD 272,706 246,483 10.6 138.8 134.5

EBITDA Margin 34.9% 32.4% 34.9% 32.4%

Net Income 128,460 118,636 8.3 65.4 64.8


Capital Reductions to EEB - - - - -

Debt / EBITDA 0.3 0.1 0.3 0.1


Footnotes Annex 6

During the period, Codensa generated operational revenues of approx. COP 798 billion, meaning 4.8% greater vis-à-

vis 1Q 2013, as a result of: (i) Growth of 1.98% of the demand in the area of influence, and (ii) Greater revenues

related to the transfer of energy to the networks of other operators outside its area of influence.

Cost of sales increased as a result of an increase on purchases of electric power to service demand.

Codensa’s EBITDA in 1Q 2014 reached COP 272,706 million, which represents growth of 10.6% with respect to 1Q

2013, mainly due to greater operational revenues.

Company’s financial debt experienced a decrease of 20.4% with respect to March 2013, mainly due to the expiration

of local bonds amounting to COP 250,000 million in March 2014. Financial expenses increased as a result of

increased average inflation rates during 2014 when compared with the same period of 2013, indicator to which 100%

of Codensa’s current debt is expressed.

Codensa’s net profit increased with respect to 2013 as a result of greater revenues on account of energy service

sales (Energy Demand and Transfer to other operators network) together with an improved operational performance.

Codensa managed to reach total loss index of 7.07% at the closing of 1Q 2014.

On 20 March 2014, Codensa S.A. ESP’s Board of Directors, approved the enhancement to total limit of the issuance

and placement of bonds program from COP 165,000 million to COP 950,000 million. Through Resolution No. 0407 of

13 March 2014 the Colombian Financial Superintendence, whose authorization became effective on 14 April 2014,

authorized the increase of the total limit of the ordinary bond Issuance and Placement Program in charge of Codensa

in one hundred and eighty five billion (COP 185 billion) to seven hundred and eighty five billion COP 785 billion.

Similarly, Codensa’s Board of Directors decreed profits for 100% of its net profit in 2013 equivalent to COP 535.91

billion, of which COP 277.9 billion correspond to EEB and will be paid in 3 equal installments.




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Table N° 20 – Capex

1Q 14 1Q 13 Var %

COP Million 40,250 34,556 16.5

USD Million 20.48 18.86 8.6

Progress of Codensa’s investment projects:

Investments focused mainly on: (i) Servicing growing demand to ensure electric power supply to the country, (ii) Improve

the quality of service and its continuity and (iii) Control operative risks and non-technical loss control.

4.3. PROMIGAS

Table N° 21 - Overview of Promigas 1Q 14

Number of clients 10

Volume of sales - Mm cfd 364.3

Market share - % 40

Network – km 2,367

Operating Revenues - COP Million 80,996

EEB’s stake - % 15.6

Table N° 22 – Capex Promigas

1Q 14 1Q 13 Var %

COP Million 27,476 9,306 195.2

USD Million 14.0 5.1 175.2

Table N° 23- Selected indicators of Promigas


1Q 14 1Q 13 Var % 1Q 14 1Q 13

Operating Revenues 80,996 69,645 16.3 41.2 38.0

Cost of Sales 15,398 16,703 -7.8 7.8 9.1

Administrative Expenses 21,730 22,493 -3.4 11.1 12.3


EBITDA Quarterly 49,790 37,013 34.5 25.3 20.2

EBITDA Margin 61.5% 53.1% 61.5% 53.1%

Net Income 85,290 185,018 -53.9 43.4 101.0

Dividends and reserves declared to EEB 19,075 37,662 -49.4 9.7 20.6

Capital Reductions to EEB 0 0 - - -

Debt / EBITDA 4.8 5.2 -38.4 4.8 5.2


Footnotes Annex 6

Greater revenues due to the fact that in 2014 the invoicing of Ecopetrol- Reficar began to take place resulting from

an increase in contracted capacity.

Net profit decreased 53.9% given profit in selling Promitel investment in 1Q 2013 (COP 136,438 Million).

On 25 March 2014, General Shareholders General Meeting decreed to pay up dividends amounting to COP 207.3

billion, of which COP 61,658 Million correspond to dividends on account of shares. EEB will receive, via its




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investment vehicle EEBGAS the amount of COP 19,075 Million, one payment in April 2014, and five monthly

installments from May 2014 to September 2014.

Progress of Promigas investment projects:

Promigas, together with five international companies in the electric power, fuels, ground and maritime transport

sectors entered into a Development Agreement to assess the possibilities of building a terminal to import Liquefied

Natural Gas - LNG- in the Dominican Republic and to assess options of supplying this fuel to the country’s industrial

sector.

La Sociedad Portuaria El Cayao SA ESP, of which Promigas SA ESP owes 49.99% of outstanding shares and in

which two private equity funds participate, both national and foreign equity, has been selected as Awardee within the

bidding process organized by Grupo Terminco (made up by the main generators in the Caribbean regions) as

Infrastructure Agent – AI – in charge of the construction, administration, operation and maintenance of the

infrastructure that will render the services to receive imports of Liquefied Natural Gas – LNG – storage, regasification

and placement at the entry point of the National Transport System.

“Proyecto Mini Loop” consisting on the construction of two Loops between Palomino and Don Diego rivers, in 24”,

estimated length is 6 Km, to increase transport capacity. Progress is at 34% and start up is expected to occur in

2014.

Project “Loop 14 Hocol San Mateo Mamonal consisting on the construction of a gas pipeline between HOCOL and

San Mateo wells in 12” in diameter and 22 kilometers in length approximately, a Loop between San Mateo and

Mamonal of 14" in diameter and 163 Kilometers approximately, to transport 60 million cubic feet. The project’s

progress is at 2% and start up is expected in 2016.

“Microplanta LNG La Arenosa” consisting on the construction of a micro plant for liquefied gas, with a 78,000

Gallon/day capacity to reach markets which are not serviced by the Traditional Gas pipeline System and servicing the

vehicle market. Progress is at 49% and start up is foreseen for 2016.

“Enhancement Project SRT Loop Mamonal” consisting on the construction of a Loop to service expansion projects

and new requirements of clients in the industrial area of Mamonal. Progress is at 11% and start up is foreseen for

2018.

“Filtering System of Arenosa-Caracoli stretch” consisting on the installation of a Filtering system in the Arenosa

Station line that will connect the crossing of a 32” with an 18” to take gas to Caracolí. Project has not started yet and

start up is foreseen for 2015.

4.4. GAS NATURAL

Table N° 24 - Overview of Gas Natural 1Q 14

Number of clients 1,938,675

Volume of sales - Mm cfd 478.9

Market share - % 93.7

Network – km 12,791.8

Operating revenue - COP MM 356,136

EBITDA LTM - COP MM 83,723

Controlled by Gas Natural de España

EEB’s stake 25%




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Table N° 25 - Selected indicators of Gas Natural


1Q 14 1Q 13 Var % 1Q 14 1Q 13 Operating revenue 356,136 306,451 16.2 181.2 167.3

Cost of sales 253,016 195,600 29.4 128.7 106.8


Operating income 75,031 87,109 -13.9 38.2 47.5

EBITDA Quarterly 83,723 94,874 -11.8 42.6 51.8

EBITDA Margin 21.1% 31.0% 21.1% 31.0%

Net income 59,497 69,878 -14.9 30.3 38.1


Capital reductions to EEB - -

- -

Footnotes Annex 6

Operational revenues grow at a rate of 16.2%, as a result of greater sales led mainly by the NGV and ATR market.

At closing 1Q 2014 EBITDA is less to that registered during 2013 due to a lower margin in gas commercialization,

derived from extraordinary revenue in January 2013 corresponding to a Gibraltar gas provision and higher marketing

expenses.

Table N° 26 – Capex

1Q 14 1Q 13 Var %

COP Million 3,272 2,243 +45.9

USD Million 1.66 1.22 +36.1

Investments made during 1Q 2014 reached COP 3,272 million, higher than in 1Q 2013 because of distribution

networks (new customers and maintenance).

The Board of Directors of Gas Natural decided to distribute 100% of its 2013 profits, COP 268,274 million, of which

COP 67,311 correspond to EEB, and 7% of that received during 1Q 2013.

Residential and Commercial

30%

Industrial 57%

NGV + ATR 13%

Figure 10 - Breakdown Sales- Gas Natural 1Q 2014 Total: 478.9 Mm3




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4.5. REP and CTM Perú

Table N° 27 - Selected financial indicators of REP

USD Thousands

1Q 14 1Q 13 Var %

Operating Revenues 31,074 29,757 4.4

Costo of Sales 20,177 20,543 -1.7

Operating Income 10,897 9,214 18.2

EBITDA LTM 20,450 17,542 16.5

Net Income 6,034 5,919 1.9

Dividends and reserves declared to EEB 5.60 31.7 -82.3

Capital reductions to EEB - - -

Debt / EBITDA 2.77 3.43 -19.24

EBITDA / Interests 6.52 6.16 5.84

Footnotes Annex 6

As of March recorded greater revenues on account of non-regulated revenues related to Specialized Technical

Services; as a result of the coming on stream of the 10 and 11 expansions; as well as CTM management

servicing to related companies Consorcio Transmantaro and ISA Perú.

Reduced added execution and in perspective with AO&M expenses, related to reduced amounts executed in

wages and salaries and services to third parties and exchange impact.

Regarding the perspective of reduced financial revenues and financial expenses on account of differing REP

loans to CTM, accordingly, fewer new disbursements of debt with respect to budgeted.

Higher EBITDA as a consequence of increased revenues in maintenance and operation services, technical

specialized services, complimentary services with third parties and the coming on stream in 10 and 11

expansion.

Decreed dividends amounting to USD 14 million on the base of cumulative profits as of 2013 under NIIF, which

will be delivered to shareholders before 30 April 2014.

Investment projects executed, consisting in REP infrastructure enhancement are found in different execution

stages according to the timetables.

Table N° 28 - Selected financial indicators of CTM

USD Thousands

1Q 14 1Q 13 Var %

Operating Revenues 24,118 21,912 10.1

Costo of Sales 11,007 9,791 12.4

Operating Income 13,110 12,121 8.2

Adjusted EBITDA 19,613 18,015 8.9

Margin EBITDA 81.3% 82.2% Net Income 5,806 2,404 141.5

Dividends and reserves declared to EEB 7.32 - -

Capital reductions to EEB - - -

Debt / EBITDA 5.34 9.42 -43.3

EBITDA / Interests 3.8 3.17 19.8

Footnotes Annex 6




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Greater revenues as startup of operation LT Talara PIura and LT Pomacocha Carhuamayo.

Greater POC revenues on account of private LT, FENIX and Termochilca began commercial operation in March

and August 2013, respectively.

Greater revenues due to increase in maintenance expenses, amortization due to startup of the previously

mentioned lines.

Increase in adjusted EBITDA is the result of greater revenues on account of start-up of Commercial Operation of

previously mentioned projects and due to extraordinary revenues resulting from controversy of Addendum No, 10

that will be charged for 17 years, as of May 2014.

Period’s profit in 2013 reached a USD 18.3 million after deducting the respective payment in legal reserve that

will remain in the company’s equity, for shareholders, and is part of cumulative results, which will reach USD 83.9

million.

During April, risk ratings for CTM were conducted, where grades are as follows Fitch (BBB-) and Moody’s (Baa3)

maintaining “Investment Grades” with stable perspective.




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24

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:

− 1Q 14: 1,965.32 COP/USD

− 1Q 13: 1,832.2 COP/USD

En las cifras presentadas se utiliza la coma (,) para separar los miles y el punto (.) para separar los decimales.

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.




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25

Annex 3: EEB Consolidated Adjusted EBITDA UDM and Quarterly

Table N° 29 – EEB’s Consolidated financial results

COP Million Var. USD Million

1Q 14 1Q 13 % 1Q 14 1Q 13

Operating revenue (1) 542,254 449,468 20.6 275.9 245.3

Electricity transmission 27,359 25,798 6.1 13.9 14.1

Electricity distribution 72,634 70,633 2.8 37.0 38.6

Natural gas transportation 233,089 205,662 13.3 118.6 112.2

Natural gas distribution 209,172 147,375 41.9 106.4 80.4

Cost of sales (2) -271,649 -229,143 18.5 -138.2 -125.1

Electricity transmission -11,660 -10,883 7.1 -5.9 -5.9

Electricity distribution -55,369 -51,367 7.8 -28.2 -28.0

Natural gas transportation -54,955 -61,586 -10.8 -28.0 -33.6

Natural gas distribution -149,665 -105,307 42.1 -76.2 -57.5

Gross income 270,605 220,325 22.8 137.7 120.3

Operating expenses -53,798 -49,399 8.9 -27.4 -27.0

Electricity transmission -4,929 -1,865 164.3 -2.5 -1.0

Electricity distribution -8,764 -8,303 5.6 -4.5 -4.5

Natural gas transportation -9,112 -12,498 -27.1 -4.6 -6.8

Natural gas distribution -30,993 -26,733 15.9 -15.8 -14.6


Dividends (4) 832,806 785,091 6.1 423.8 428.5

Interest temp. investments & pension trusts (5) 33,074 16,501 100.4 16.8 9.0

Foreign exchange (6) -56,313 -87,480 -35.6 -28.7 -47.7

Other revenue (8) 8,716 6,716 29.8 4.4 3.7

Non-operating expenses (9) -48,684 -43,629 11.6 -24.8 -23.8

Financial expenses -54,888 -44,790 22.5 -27.9 -24.4

Other expenses -615 -1,558 -60.5 -0.3 -0.9

Net income before taxes and minority interest 930,903 801,777 16.1 473.7 437.6

Minority interest (10) -28,541 -13,782 107.1 -14.5 -7.5

Provision for income tax -49,045 -20,751 136.4 -25.0 -11.3

Net income 853,317 767,244 11.2 434.2 418.8

Footnotes Annex 6




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

EBITDA Consolidated LTM COP Million Var USD Million

1Q 14 1Q 13 % 1Q 14 1Q 13

Operating revenue 2,051,306 1,661,190 23.5 1043.8 906.7

Operating costs -1,086,513 -863,360 25.8 -552.8 -471.2

Operating expenses -310,939 -205,217 51.5 -158.2 -112.0

Operating depreciation 113,657 105,638 7.6 57.8 57.7

Operating amortization 60,018 50,710 18.4 30.5 27.7

Operating Taxes 5,078 4,617 10.0 2.6 2.5

Dividend & interests earned 997,075 884,686 12.7 507.3 482.9

Hedging -22,312 -6,352 251.3 -11.4 -3.5

Interests in autonomous equity -3,644 -19,841 -81.6 -1.9 -10.8

Administration expenses -162,147 -177,835 -8.8 -82.5 -97.1

Retirement pensions 33,992 39,172 -13.2 17.3 21.4

Amortizaciones 34,571 34,270 0.9 17.6 18.7

Amortization 6,321 6,015 5.1 3.2 3.3

Depreciation 87,778 22,374 292.3 44.7 12.2

Taxes 76,672 68,849 11.4 39.0 37.6

Capital reductions - - - 0.0 0.0

Consolidated adjusted EBITDA 1,880,913 1,604,916 17.2 957.1 876.0

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

Quarterly EBITDA Consolidated COP Million Var USD Million

1Q 14 1Q 13 % 1Q 14 1Q 13


Operating depreciation 28,708 28,300 1.44 14.61 15.45

Operating amortization 18,339 11,771 55.80 9.33 6.42

Operating taxes 1,390 1,157 20.14 0.71 0.63

Dividends & interests earned 865,880 801,592 8.02 440.58 437.50

Hedging Operations (10,032) (385) -5.10 -0.21

Interests in autonomous equity (4,372) (4,815) -9.20 -2.22 -2.63

Administration expenses (48,684) (43,621) 11.61 -24.77 -23.81

Retirement pensions 6,907 7,078 -2.42 3.51 3.86

Amortization 6,879 9,217 -25.37 3.50 5.03

Depreciation 1,793 1,312 36.66 0.91 0.72

Provisions 2,367 2,809 -15.74 1.20 1.53

Taxes 29,378 25,023 17.40 14.95 13.66

EBITDA Quarterly 1,115,360 1,010,355 10.39 567.52 551.44

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

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

Anexo 5: Technical and regulatory terms

BLN: US billion (109)

CAC: Compound Annual Growth

COP: Colombian Peso

CHB: Central Hidroeléctrica de Betania

CTM: Consorcio Transmantaro




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

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27

CFD: Cubic feet per day

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.

D Electricity: electricity distribution,

D Natural Gas: Natural Gas Distribution,

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

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

Colombia.

G Electricity: electricity generation,

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

LTM: last twelve months

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

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

T Electricity: Electricity transmission ,

T natural Gas: natural gas transportation,

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

N.B. Figures in this English report in terms of one USD billion corresponds to COP 1,000,000,000 and one COP

trillion corresponds to USD 1.000.000.000.000.




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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




Return

Table 25 – Selected financial indicators of Gas Natural




Return

Table 27 – Selected financial indicators of REP




Return

Table 28 – Indicadores financieros seleccionados de CTM




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29




Return

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.

(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.




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30

100%

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%




Documents

Bogotá D.C., May 14, 2014€¦ · Investors Report 1Q 2014 Gerencia de Relación con Inversionistas, Teléfono: +57(1) 3268000 ext 1675 / 1827 E mail:[email protected] / [email protected]