Calidda’s Q2 2016 Results

August, 2016

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

4

Introduction and Perspectives

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

6

Significant Developments – Q2 2016

1/ Million cubic feet per day. 2/ Clients who are located in front of Calidda’s distribution network.

3/ Revenues exclude Pass-through and IFRIC 12 revenues. 4/ Last twelve months EBITDA. 5/ Last twelve months EBITDA & Adjusted Revenues.

Calidda’s client base has increased by 32% and the

invoiced volume has increased by 7% compared to

second quarter of 2015.

During first half of 2016, our network length was

enlarged by 804 km, whereby the distribution system

has reached a total of 6,793 km of underground

pipelines.

Total Revenues from first semester decreased 1%,

explained by a reduction in natural gas prices. Total

Adjusted Revenues increased 3% driven by higher

distribution services, mainly from Take-or-Pay

contracts, and residential clients’ connection services.

The EBITDA and Adjusted EBITDA margin grew

mainly due to the higher income mentioned above

and lower operational expenses from services and

contracts agreed in Soles (beneficial exchange rate

effect).

Operational Results ( YTD ) Q2 2016 Q2 2015 Var %

Accumulated Clients: 395,717 299,790 32%

Invoiced Volume (MMCFD) 1 : 746 700 7%

Network Lenght (km): 6,793 5,246 29%

Potencial Clients 2 : 691,117 529,465 31%

Financial Results ( YTD ) Q2 2016 Q2 2015 Var %

Total Revenues (USD MM): 261.6 265.5 -1%

Total Adj. Revenues (USD MM) 3 : 103.9 101.1 3%

EBITDA (USD MM) 4 : 113.2 99.9 13%

Adjusted EBITDA Margin5 : 56.1% 51.4%

Interest Coverage (x) 7.1x 6.8x

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

8

Commercial Performance Residential & Commercial Segment

Residential

Industrial

Natural gas pipeline

Main grid expansion

34,619 63,602

103,090

163,129

254,280

344,380

394,947

2010 2011 2012 2013 2014 2015 Q22016

In the residential segment, Calidda has commercial operations in 19 districts.

During the first half of 2016, Calidda connected 49,987 residential clients and 580 commercial clients.

By the end of June, the promotion fund was reactivated, subsidizing the connection cost of the beneficiaries by approximately 180 dollars (30% of the total connection cost). Only people from socioeconomic sector C, D or E can access to this benefit.

Calidda serves the industrial & commercial network in more than 36 districts within Lima & Callao (Metropolitan area).

9

Commercial Performance

Clients Segments Growth Highlights

Power Generation

Industrial

NGV Stations

11 13 13

16 16 17 17

2010 2011 2012 2013 2014 2015 Q22016

360 394

429 466 489 507 517

2010 2011 2012 2013 2014 2015 Q22016

10 new industrial plants were connected during first half of 2016.

143 172 192 206 220 232 236

103,712 126,586

151,781 171,541

197,154 212,252

225,423

0

50,000

100,000

150,000

200,000

250,000

0

100

200

300

400

2010 2011 2012 2013 2014 2015 Q22016

NGV Stations Converted Vehicles

4 new NGV stations joined Calidda’s distribution system and 225,423 converted vehicles are attended in the cities of Lima and Callao.

No new power generators where connected during Q2 2016.

10

Commercial Performance Invoiced Volume MMCFD

In first half of 2016, the invoiced volume increased by 7% compared to the same period of 2015, mostly explained by

higher amounts of Take-or-Pay contracts with Power Generators.

As of June 2016, Take-or-Pay contracts amounted 601 MMCFD (565 MMCFD Power Generation + 36 MMCFD

Industrial), 81% of the total invoiced volume.

63.9%

71.6% 71.6% 72.5%

74.2% 74.5% 74.3% 75.3% 25.0%

19.2% 18.1%

17.2%

16.0% 15.5% 15.9% 14.9%

10.6%

8.8% 9.7%

9.6%

9.0% 8.9% 8.8% 8.6%

303

457 508

577

679 699 700 746

2010 2011 2012 2013 2014 2015 Q2 2015 Q2 2016

Residential &Commercial

NGV Stations

Industrial

Power Generation

11

Commercial Performance Invoiced Volume by Client Segment (MMCFD)

Generación Eléctrica

Industrial

NGV Stations

Residential & Commercial

76 88 92

99 109 108 111 111

2010 2011 2012 2013 2014 2015 Q22015

Q22016

32 40

49 56

61 62 62 64

2010 2011 2012 2013 2014 2015 Q22015

Q22016

1.3 1.9

2.9 3.9

5.8

7.5 7.0

9.4

2010 2011 2012 2013 2014 2015 Q22015

Q22016

193

327 364

418

504 521 520 562

2010 2011 2012 2013 2014 2015 Q22015

Q22016

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

13

Operational Performance

Distribution System Infrastructure

Network Efficiency

Over the first six months of 2016, we have

increased our network penetration rate by

0.7%, in line with the average penetration

rate increment achieved per quarter during

2015.

Calidda’s distribution system consists of 6,793 km of underground pipelines.

During the first half of 2016 , Calidda has built 805 km, out of which 21 km were steel high pressure network, while the remaining 784 km were low pressure polyethylene pipelines.

303 359 387 408 428 458 479 1,020 1,465

2,163 2,996

4,249

5,531

6,315

1,324 1,824

2,550

3,404

4,678

5,988

6,793

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2010 2011 2012 2013 2014 2015 Q2 2016

km

Steel Network Polyethylene Network Total

19 35 64 104 164

255 345 396

94 126 174 244

331

466 609

691

20% 28%

37% 42%

50% 55% 56.6% 57.3%

0%

10%

20%

30%

40%

50%

60%

0

200

400

600

800

1,000

2009 2010 2011 2012 2013 2014 2015 Q22016

Total Clients Potential Clients* Penetration Rate(*) Clients who are located in front of Calidda's distribution network.

14

Calidda has enough Transport & Supply Capacity for

attending its Customers

Regulated clients : Calidda provides them with NG, transportation and distribution

services.

Independent clients : Customers who contract their own gas and transportation

services. Calidda only provides the distribution service.

Calidda's

City Gate

Calidda’s Capacity = 420MMCFD

Regulated Clients + Independent Clients

151MMCFD + 136MMCFD =287 MMCFD

Independent Clients

(Power Generators)

= 355 MMCFD Thermal Plants

(Clients)

Conventions

0

150

300

450

sep-14 dic-14 mar-15 jun-15 sep-15 dic-15 mar-16 jun-16

Regulated Clients Independent Clients

Calidda’s Capacity: 420 MMCFD

As of June 2016, Calidda’s distribution system capacity is 420MMCFD (from City Gate Lurín to Lima). Independent and regulated customers located down flow Lurin have nearly taken 287MMCFD, equivalent to 68% of our capacity.

0

150

300

450

sep-14 dic-14 mar-15 jun-15 sep-15 dic-15 mar-16 jun-16

Regulated Clients

Our Regulated Clients have consumed 151 MMCFD, equivalent to 72% of our Gas Transportation capacity (TGP) and 85% of our Gas Supply capacity (Pluspetrol).

Transport: 209 MMCFD

Gas: 178MMCFD

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

Even though residential & commercial segment only represents 1% of the invoiced volume, it explains 10% of the distribution revenues. If we add the revenues generated by our client connection business, this segment represents 36% of the Adjusted Revenues.

On the other hand, Power Generators represents 75% of the volume, 51% of the distribution revenues and 34% of the Adjusted Revenues.

In Q2 2016, other Revenues represent 6% of the Adjusted Revenues, mainly explained by extraordinary income from pipeline’s relocation services.

11%

6%

34% 29%

7%

14%

16

Even though volumes are concentrated, revenues are

diversified Q2 2016 Invoiced

volume (MMCFD) Q2 2016 Adjusted

Revenues1

Q2 2016 Distribution

Revenues

1/ Total Adjusted Revenues exclude Pass-through and IFRIC 12 revenues.

2/ Installation Services Revenues include revenues from connection fees and financing.

3/ Others: mainly derived from network relocation and other non recurrent services.

75%

15%

9% 1%

51%

22%

16%

10%

2 3

36%

17

Financial Performance Million US$

Total Revenues EBITDA* & Adj. EBITDA Margin (%)

Funds from Operations (FFO)1 Debt & Net Debt2 / EBITDA

64 103 125 146 186 199 101 104

125

201 245

315 326 342

164 158

188

304 370

461 512

541

265 262

2010 2011 2012 2013 2014 2015 Q22015

Q22016

Total Adjusted Revenues Pass-through & IFRIC 12

YoY: -1%

3.9x

2.8x 3.0x

4.4x

3.5x 3.2x 3.1x

3.1x

2.3x 2.3x

3.0x 2.6x 2.6x

2.8x

2010 2011 2012 2013 2014 2015 Q22016

Debt / EBITDA Net Debt / EBITDA(*) Last Twelve Months.

1/ FFO = Net Profit + Depreciation + Amortization 2/ Net Debt = Debt – Cash Balance.

29

59 64

72

91

104 113

46.1%

57.6% 51.6% 49.3%

49.1% 52.1% 56.1%

2010 2011 2012 2013 2014 2015 Q22016

EBITDA Adjusted EBITDA Margin(*) Last Twelve Months.

18

40 43

36

57 58

70

2010 2011 2012 2013 2014 2015 Q22016(*) Last Twelve Months.

18

Financial Performance

Million US$

Total Debt1 Debt / Capitalization2 (%)

Interest Coverage FFO / Net Debt

67 119 149

318 318 335 352

47

47 47 114

166 196

318 318 335

352

2010 2011 2012 2013 2014 2015 Q22016Senior Debt Shareholders' Subordinated Debt

1/ Total Debt : Debt net from financing costs.

49.8%

54.1%

49.2%

56.6%

53.2%

54.8%

56.6%

2010 2011 2012 2013 2014 2015 Q22016

3.8x

5.8x 5.5x 5.6x

6.3x 6.8x

7.1x

2010 2011 2012 2013 2014 2015 Q22016(*)Last twelve months.

20.2%

28.9% 28.3%

16.8%

23.9% 21.8% 22.4%

2010 2011 2012 2013 2014 2015 Q22016(*)Last twelve months.

19

Financial Performance

Million US$

Total Assets Equity

Net Income

CapEx

289

383

492

648 696

735 762

2010 2011 2012 2013 2014 2015 Q22016

115 141

202

244 280 276

260

2010 2011 2012 2013 2014 2015 Q22016

10

26 27

17

35 34

30

2010 2011 2012 2013 2014 2015 Q22016

50 32

63

92 83 85

41

53

33

5

50

85

96 98

83

85

41

2010 2011 2012 2013 2014 2015 Q22016

Secondary Network Main Network

Dividends +

Capital reduction:

$37MM

Dividends +

Capital reduction:

$36MM

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

21

Conclusions

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Annexes:

(i) Strong Sponsorship with Optimal Experience

23

Strong Sponsorship with Optimal Experience

Leading energy holding company with interests across the electricity and natural gas sectors in Colombia, Peru and Guatemala.

Founded in 1896, controlled by the Distrito de Bogotá since 1956 with a 76.2% ownership stake.

Leader in the Energy Sector: major player in the transmission and distribution of electricity and natural gas.

Controlling Investments

Non Controlling Investments

Non Controlling Investments

Controlling Investments

Controlling Shareholder – 60% Ownership in Calidda

Shareholder – 40% Ownership in Calidda

Only vertically-integrated and one of the largest natural gas distribution and transportation companies in Colombia.

Founded in 1974 by the government of Colombia. Currently controlled by Grupo Aval.

Major player in the gas distribution sector in Colombia through Gases de Occidente, Surtigas and Gases del Caribe.

Participation in the power distribution in Colombia.

EEB has 15.6% stake in Promigas.

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en ninguna forma o por ningún medio sin permiso explícito de Cálida S.A ESP.