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Investors Report
1 half 2013
1
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
Investors Report
1 half 2013
2
Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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).
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
− 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
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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
Footnotes in annex 6
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.
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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.
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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.
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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.
Investors Report
1 half 2013
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Contact: Investor Relations Telephon: 571 3268000 ext 1546 E mail: [email protected] / [email protected]
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
Footnotes in annex 6
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
Footnotes in annex 6
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
Footnotes in annex 6
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
Footnotes in annex 6
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
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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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1 half 2013
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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
(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. Table 23 – Selected financial indicators of Promigas
(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.
(3) Accrued interest on financial debts for the previous twelve months. Back to the chapter
Table 25 – Selected financial indicators of Gas Natural
(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 27 – Selected financial indicators of REP
(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 28 – Indicadores financieros seleccionados de CTM
(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 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