presentación de powerpoint · ecogas though tgi •codensa abssorbs eec •new corporate strategy...
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1
Corporate PresentationFebruary 2021
2
GEB at a Glance
Section 1
3
More than 120 years of sustaibnable organic and inorganic growth, record of success
Timeline
2020
Foundation and Transformation Diversification Growth and Consolidation New Corporate Strategy
Int’l Bond IssueUSD 320 mm
Empresa de Energíade Bogotá (“EEB”) is founded to generate, transmit and distribute electricity in Bogotá
1896
The District of Bogotá
acquires 100% of the
company
EEB is transformed from a state- owned entity into a
stock corporation organized as a public
utilities company
Creation of&
Through a capitalization and transformation process within EEB
Concession granted
Acquisition of assets and agreements of Ecogas though TGI
•Codensa abssorbs EEC•New Corporate Strategy
•Approved sale of up to a 20% stake of major shareholder•Other minor stake divestitures
Adquisition of
Merger between TGI & Transcogas Acquisition
51,0%
IPOEEB
Int’l Bond Issue USD 749 mm
GEB reports change in its shareholding
structure after democratization
Acquisition
1959 1996 1997 2002 2006 2007 2008 2009 2010 2011 2012 2013 201520162017
2018 2019
Acquisition
Int’l Bond Issue USD 750 mm
Int’l Bonf IssueUSD 400 mm
1st Tranche Local Bond IssueCOP 950.000 mm
Recurrent issuer in the local and international capital markets
4
65,7%
21,4%
5,2%OTHER7,8%
Number of shares outstanding: 9.181.177.017Total shareholders:3.688
Shareholders as of January 31, 2018
Number of shares outstanding 9.181.177.017Total shareholders 5.523
Shareholders as of January 31, 2021
Source: Deceval’s Report January 31, 2021
Shareholding Structure
76,3%
16,5%
3,6%OTHER3,6%
AFPAFP
5
InvestmentHighlights
Section 2
6
Leading Participant in Relevant Latin American Energy Markets
Experienced Management Team, Supported By World-Class Strategic Partners and Strong Corporate Governance Standards
A Sustainable Company with Track Record of Value Creation
Stable and Predictable Cashflow Generation
Proven Ability to Integrate, Develop and Operate Diversified Energy Businesses1
2
3
4
5
Investment Higlights
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Power Distribution
Natural Gas Distribution
4,2 mm clients in Power Distribution
3,4 mm clients in Natural Gas Distribution
Distribution
Power Generation
3.544 MW in Installed Capacity
11.034 GWh in Power Generation (YTD)
Generation
15.348 km of Transmmision Lines
4.311 km of Gas Pipelines
Power Transmission
Natural Gas Transportation
Transmission & Transportation
Revenue
3Q 2020COP 1.268 -1,6% YoY
Sep 2020COP 3.745 6,4% YoY
Dividend Yield (3)
5,7%
Stock Market Capitalization
COP 22.494USD 5,8 bn
Sep 30, 2020
Operating Income
3Q 2020COP 446
15,8% YoY
Sep 2020COP 1.30210,9% YoY
EBITDA
3Q 2020COP 6074,6% YoY
Sep 2020COP 3.038 20,2% YoY
Net Income(1)
3Q 2020COP 479
-3,2% YoY
Sep 2020COP 1.6949,5% YoY
CAPEX & Acquisitions(2)
3Q 2020USD 61 mm-35,3% YoY
Sep 2020USD 480 mm
99,5% YoY
Op. EBITDA Mg.
3Q 202047,9%
2,9pp YoY
Sep 202051,7%
4,8pp YoY
Operational figures includes the information from controlled and non-controlled companies(1) Net income – controlling interest
(2) Includes only controlled companies(3) Calculated based on the closing share Price as of Sep 30, 2020 (COP 2.450)
Figures in COP billions
Proven Ability to Integrate, Develop and Operate Diversified Energy BusinessesGEB is a leading energy holding in LatAm with a diversified portfolio of power and natural gas utilities, classified in three strategic business groups:
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Source: (1) https://www.amm.org.gt/portal/?page_id=146; (2) http://www.coes.org.pe/portal/;(3) http://www.minem.gob.pe/_estadisticaSector.php?idSector=5 & http://www.perupetro.com.pe/exporta/, http://www.perupetro.com.pe/exporta/; (4) http://www.mme.gov.br/web/guest/secretarias/energia-eletrica/publicacoes/boletim-de-monitoramento-do-sistema-eletrico/boletins-2019; (5) http://coinotel.com/beo/manualtransportador.pdf;https://www.progasur.com.co/gasoductos.php?Men=3;http://www.promioriente.com/Es/BEO/Paginas/ProcedimientosOperacionales/Mapa-del-gasoducto.aspx;http://www.transmetano.co/Es/BEO/Paginas/ProcedimientosOperacionales/Mapadelasoducto.aspx;https://beo.tgi.com.co/Blog/Gasoductos;;;http://www.promigas.com/Es/BEO/Paginas/ProcedimientosOperacionales/Mapa-del-gasoducto.aspx;http://www.transoccidente.com.co/Es/BEO/Paginas/Manual-Transportador/Mapa-del-Gasoducto.aspx(6) http://reportes.sui.gov.co/fabricaReportes/frameSet.jsp?idreporte=ele_com_094; (7) www.xm.com;(8) http://informacioninteligente10.xm.com.co/oferta/Paginas/HistoricoOferta.aspx; (9) Proyección basada en el crecimiento promedio de usuarios conectados trimestralmente,(10) https://www.osinergmin.gob.pe/seccion/institucional/regulacion-tarifaria/publicaciones/regulacion-tarifaria
Guatemala
Colombia
Peru
Brazil
Guatemala
# 1 Guatemala(1)
(Private Company)Market Share% Revenues NTS
Power Transmission
20,8%(1)
Market Share% Distributed Volume
Natural Gas Dist. / Transp.
74,6%(3)
# 1 Perú(3)
Market Share% Revenues NTS
Power Transmission
67,8%(2)
# 1 Perú(2)
Peru
Brazil
Market Share% Network NTS (km)
Power Transmission
1,63%(4)
Colombia
# 1 Colombia(5)
Market Share% Nat’l Network (km)
Natural Gas Transportation
54,0%(5)
# 1 Colombia(6)
Market Share% Subscriptions
Power Distribution
20,5%(6)
# 1 Colombia(8)
Market Share% Installed Capacity
Power Generation
20,0%(8)
# 2 Colombia(9)Natural Gas Distribution
Market Share% Connected Users
31,8%(9)
# 2 Colombia(7)
Market Share% Revenue NTS
Power Transmission
21,2%(7)
(4)
Leading Participant in Relevant Latin American Energy MarketsGEB’s subsidiaries and affiliates have market leading participations across the energy chain in Colombia, Peru and Guatemala
Market Share% Distributed Volume
Power Dist. / Generation
3,22% (3)
# 9 Perú(10)
9
Adjusted consolidated EBITDA | LTM Sep-20EBITDA by business line | LTM Sep-20
EBITDA by company | LTM Sep-20
USD$ mm
586 705 819 922 821 887 878 823 894 954 982
+22,8% YoY
9
Stable and Predictable Cashflow GenerationConsolidated adjusted EBITDA has grown over the last 10 years, demonstrating increased strength of GEB´s controlled assets
+22,8% YoY
Figures in COP billions
Note: Figures for the years 2006 to 2013 are presented under ColGaap standards. From 2014 onwards they are presented under IRS. GEB initially calculated EBITDAon the basis of operating revenues; however, as a result of the adoption of IFRS in 2015, and to be consistent with market practices, the calculation of adjustedconsolidated EBITDA was started on the basis of net income, and the years 2017, 2018 and 2019 were restated in order to make the figures comparable. It shouldbe noted that the amounts previously reported do not differ materially from those currently adjusted.
TGI36,3%
Cálidda 14,2%
Emgesa12,5%
GEB9,3% Codensa
8,3%REP&CTM
5,8%
Dunas5,0%
Others8,6%
3.638
Power Transmission
17,8%
Power Distribution
13,6%
Natural Gas Transportation
38,2%
Natural Gas Distribution
17,9%
Power Generation
12,5%
3.638
39%56% 55% 52%
56%
65% 67% 70% 69%
72%70%
61%
44% 45%
48%44%
35%33% 30%
31%
28%
30%
1.122
1.370 1.447
1.7761.965
2.4372.529 2.455
2.642
3.127
3.638
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 sep-20
Operating EBITDA
Dividends
10
Energy for Peace (Colombia )De-mining of 20.700 hectares with the Colombian Army and NGO The HALO Trust, to the benefit of 11 municipalities and 82 rural districts that have suffered from the armed conflict
Community gas diners (Peru)Installation of free gas connections to over 900 gas diners benefiting more than 63.000 people
Tecnigas: Training for the Future (Peru)Training young people from underprivileged backgrounds as gas installation technicians, to facilitate their entry into the workforce
Women’s economic empowerment (Guatemala)Training 450 indigenous women in traditional crafts and supporting the commercialization of their embroideries
A Company Oriented Towards SustainabilitySocial awareness, protection of life and superior performance as attributes of our organizational culture
Ranked 12 out of 53 on Fortunemagazine's Change the World listfor the Energy for Peace initiative
Global Energy Awards
Corporate Social ResponsibilityAward for the Energy for PeaceInitiative
ANDESCO Awards
Sustainability Award foroutstanding sustainabilitypractices
We transform territories through shared value projects and social investment that create progress.
Fortune’s Change the World list
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Security IssuerAt national and international level, the group meets high information transparency and disclosure standards, according to regulations imposed by the FinancialSuperintendency of Colombia. The group has gained recognition within the Colombian Stock Exchange’s Investor Relations 2016 program
Track Record of Value CreationGEB share price performance Historical maximum
COP$2.840 Jan.22, 2021
Average trading volume YTD 2021COP$4.696 mm / USD$1,3 mm
1.762.864 shares
$2.6801,1% YTD
Feb. 15, 2021
1.369-4,8% YTD
Feb. 15, 2021
Source: BVC
12
Andrés BaracaldoVP Distribution, Transport & Transmission
Álvaro VillasanteVP, Power Generation
Jorge TabaresCFO
Juan Ricardo OrtegaCEO
▪ Part of GEB since November 9, 2020
▪ Was previously CFO of EPM
▪ B.S. Civil Engineering
▪ M.S. in Management from Stanford University
Leadership
Nestor FaguaVP, Legal
Mónica JimenezChief Compliance Officer
Jaime OrjuelaDirector Regulation
Rafael DíazGeneral Auditor
Ernesto MorenoTechnical Advisor
Experienced Management Team
Fredy Zuleta General Manager Transmission
▪ Part of GEB since 2019
▪ Led the Legal Dept. Of FDN and has given legal advise to several firms for +15 years
▪ Lawyer specialized in Banking
▪ Part of GEB since 2018
▪ Formation and experience as investment banker, having also led an energy investment portfolio
▪ MBA from London Business School
▪ Part of GEB since 2018
▪ Has been leading business expansion areas since 2010
▪ B.B.A. from University of Salamanca
▪ M.S. from ESIC
▪ Part of GEB since 2017
▪ Has led audit practice at several multi-nationals since 2005
▪ B.B.A. from National University of Colombia
▪ Part of GEB since 1980
▪ Unique knowledge and experience of GEB's transmission business
▪ B.S. Engineering
30+ 15+ 20+
▪ Part of GEB since July 2020
▪ Was previously Coordinator at the IDB and Director of DIAN
▪ B.S. Economics Universidad de los Andes and M.S. in Economics and Finance from Yale University
30+
25+ 40+
▪ Part of GEB since 2017
▪ Was previously worked in UN and was a Compliance Officer at Willis Tower Watson and AIG
▪ B.S. Industrial engineering and B.B.A. from the University of the Andes
▪ Part of GEB since 2011
▪ Was previously worked in Vanti, UPME y EMSA
▪ B.S. Electrical Engineer and M.S. In economics
▪ Part of GEB since 2018
▪ Has been leading a public services and infrastructure companies in LatAm
▪ B.S. Civil Engineer and Economics and M.S. from Bentley University
20+ 17+20+
29+
13
Partner in Cálidda
10 mm Clients / 2 CountriesMarket Cap: USD$2.074 mm
Sources: Promigas Website
Partner in Brazil’s Power Transmission
Leading generation and transmission company in Brazil
Market Cap: USD$12.758 mmSources: Eletrobras Website
Partner in REP and Transmantaro
Presence in 13 countries / 62.038 Km of grid network
Market Cap: USD$6.241 mmSources: ISA Website
Partner in Emgesa& Codensa
Presence in 34 countries / 2,2 mm km of grid network
Market Cap: USD$59.882 mmSources: Enel Website
Partner in Vanti(formerly Gas Natural)
Presence in over 30 countries / 115 years of operational experience
Market Cap: USD$47.176 mmSources: Brookfield Website
World-Class Strategic Partners
Partnerships
Partner in Argo
1st company in the world dedicated exclusively to the transport of
electrical power and the operation of the electrical system
Market Cap: EUR$9.160 mmSources: Red Eléctrica de España
Website
14
Corporate Governance
General Shareholders’ Meeting
GEB’s CEO Appointment
Group Agreement and Corporate Policies
✓ Extension of terms for notice✓ 10% for convoking the Extraordinary Shareholders’ Meeting✓ Commitments of Bogotá Capital District (70%) in strategic decisions
(corporate purpose change, asset divestitures more than 15% of market capitalization, statutory reforms derived from the Shareholders Agreement)
✓ Selection process along with a headhunter✓ Ad-hoc committee designation for election of 3 candidates✓ Board of Directors elects the CEO from the 3 candidates
The Agreement is the instrument that regulates the interaction andgeneral framework of behavior for the relationship between theHeadquarters and its subsidiary companies, looking forward to facilitatingaccomplishment of corporate strategy and GEB’s goals:✓ Operations policy with related parties guaranteeing equality for all
shareholders✓ Conflict of interest policy for its proper administration
Board of Directors
✓ Composition: 9 members (without deputies)✓ Increase of independent members: at least 4 members, one of which
is appointed by the 10 minority shareholders with the largestparticipation, but GEB currently has 7
✓ Independence criteria: based on the “Corporate Governance Guide”of the New York Stock Exchange (NYSE)
✓ Adoption of Nomination, Succession and Compensation Policy of theBoard of Directors
✓ Board of Directors’ qualified majority for the adoption of strategicdecisions (election of the President, sale of assets and investments ofmore than 5% of the market capitalization, operations with relatedparties, modification of the PEC and regulations of the Board ofDirectors) (6 out of 7 present members)
✓ Board of Directors’ President and Vice President: Independentmember
✓ Board of Directors’ committees presided by an independent memberand integrated according to the profiles of the members
✓ Annual evaluation of the Board of Directors with the support of anindependent third party
We have accomplished 92,6% of Country Code’s recommendations, which adopts the OECD measures in Corporate
Governance
Implementation of the Architectural Control Model, which is based on 3 defense lines - Ethical Channel managed by PwC
Strong Corporate Governance Standards
15
Investments Forecast
Section 3
16
3Q 2020 Sep-20
CAPEX / AcquisitionsRevenue growth has remained stable due to an intense Capex plan
-4,9% YoY
Figures in USD million
Cálidda31%
Transmission30%
TGI20%
Trecsa & EEBIS15%
Dunas4%
60,7
330
93
47
81
43
30
28
34
22
264
6
504480
S E P 2 0 1 9 S E P 2 0 2 0
Argo Cálidda Transmission TGI Trecsa & EEBIS Contugas Dunas
17
Investments in controlled companies USD$2.510 mmBase case
CAPEX / Acquisitions Forecast
17Figures in USD million
330
0
134
144 118 122 124
122
155147
92 95
80
120237
76 41
39
42
0
1
3
16
30
30
30
3030
19
21
3420
762
511
569
356
312
2 0 2 0B U D G E T
2 0 2 1 P 2 0 2 2 P 2 0 2 3 P 2 0 2 4 P
Argo Cálidda Transmission TGI Trecsa & EEBIS Contugas Other projects Dunas
Note: The projections do not include investment deferrals as a result of the current situation of COVID-19
18
Strong pipeline of opportunities to build power transmission lines and midstream gas pipelines within the regulated market
GEB will bid for the LNG Regasification Project of the Pacific
Actively seeking M&A opportunities in power transmission and distribution
• On March 25, 2020, in compliance with the share purchase agreement signed on November 22, 2019, GEB and Red Eléctrica Internacional S.A.U., jointly and equally acquired 100% of Argo Energia Empreendimentos e Participações S.A.
• Argo is a platform made up of three concessions within the Brazilian power transmission system (Ceará, Maranhao, Minas Gerais, Piauí and Rondonia states) and will have 1,470 km of transmission lines at 500 and 230 kV and 11 substations
Growth StrategyGEB is on track to become the leading utilities company in LatAm, growing through inhouse initiatives and being an active player inM&A throughout the region
GEB acquired:
Since August 7, 2019, GEB controls 100% of the companies of the Grupo Dunas, which meets the demand for electric power of 250.000 new customers in southern Peru (Ica, Huancavelica and Ayacucho)Likewise, GEB continues in the permanent search for investments that allow it to consolidate a growth platform in Peru in the energy and gas sectors
We are growing through strategic investments that transform and empower the communities we serve
19
Capital Structure
Section 4
20
Debt Composition as of Sep-20
20
Composition and ratios
Kd COP - 4,45%Kd USD - 3,86%
Avg. Maturity7,86 years
Nominal debt balances. FX Sep 2020/USD (COP 3.878,94).
Debt by currency Debt maturity profile Sep-20(1)
10055 53
329
1.017
7025
107
832
101
400 422
55 46106 85
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2032 2035 2042 2045 2047
EBITDA / Net financial expenses
6,4X
Net debt / EBITDA
3,4X
GEB48%
TGI20%
Cálidda17%
Contugas 9%
TRECSA & EEBIS
3%
Dunas3%
3.802
Figures in USD million
Bonds58%
Comercial Banking
40%
Multilateral Banking
2%
3.802
Fixed64,6%
Libor22,7%
CPI12,5%
DTF0,2%
3.802
94% 97%98%
99% 98% 99% 85% 84% 76%80%6% 3%
2%
1%2%
1%15% 16%
24%
20%
1.737 1.733
2.218
3.009 2.803
2.567 2.946 2.943
3.314
3.802
2011 2012 2013 2014 2015 2016 2017 2018 2019 sep-20
21
International bond issue – May 15, 2020• Amount: USD 400 mm• Coupon rate: 4,875%• Maturity: 15/05/2030• Oversubscription: 11 times – 295 orders• Use of proceeds: Investment plan
First tranche local bond issue (Series C7, C15 y E25) – June 25, 2020• Amount : COP$ COP 949.999,96 mm (1)
• Maturity: C7 – 25/06/2027, C15 – 25/06/2035 y E25 – 25/06/2045• Oversubscription: 2,15 times – 342 orders• Use of proceeds: Refinancing of existing obligations• Available ~ COP 400.000 mm to issue a second tranche according to
cash requirements
Davivienda external loan – March 2020• Amount: USD 300 mm• Interest rate: Libor 6M + 2,35%• Amortization: 12-years bullet• Use of proceeds: Investment projects
Covid liquidity strategy – April 2020• Amount: COP 403.854 mm• 1-year local commercial bank loans• Rates indexed to IBR + Spread
Interest rate hedging – Interest Rate Swap • 27/05/2020: On the interest payment of GEB’s syndicated loan,
at a rate of 2,056% including the fixed margin (USD500 mm)• 01/10/2020: On the interest payment of external loan contract
with maturity in 2032, at a rate of 3,3514% including the fixedmargin (USD 300 mm) (1) Calculated using the UVR value published on the closing date June 25, 2020
2020 Financing Program
GEB’s Corporate
Credit Ratings
BBB International - AAA local /Stable29/09/2020
Baa2 / Negative7/12/2020
22
Refinancing• From a current amount of USD 48 mm to USD 53 mm
✓Closing date: March 2020✓Increase of maturity in one year (2025)✓Change from variable rate to fixed rate of 5,40%✓GEB corporate guaranteed loan
Refinancing• Up to: USD 110 mm (CAPEX projected PET-1-2009 and
refinancing of existing obligations)• In the process of structuring• GEB corporate guaranteed loan
2020 Financing Program
GEB’s Corporate
Credit Ratings
BBB International - AAA local /Stable29/09/2020
IDB Invest loan• Loan for USD 100 mm
✓ Disbursement USD 80 mm in August 2020✓ For network expansion and connection of over 180,000
new users✓ Libor 6M + 2,10 until 2024, after Libor 6M + 2,35%✓ Term 8 years, maturity in 2028
Baa2 / Negative7/12/2020
23
Annexes
Section 5
24
Assets and Investments
25
Proven Ability to Integrate, Develop and Operate Diversified Energy Businesses
*
* *
*
Distribution Transportation & Transmission Generation
*
*Non-controlled company
26
Dunas Group Peruvian portfolio comprised of 3 companies engaged in power distribution, O&M services and sector-related projects development
ElectroDunas:
• Ica, Huancavelica and Ayacucho
(5.402 Km 2, 11 provinces)
• 245.628 clients (1.066 GWh of sold
power)
• High receivables collection level
(close to 99%)
• Power loss of 10,7%
• Local AA+ credit rating (Fitch)
• #1 in terms of service quality (SAIDI
and SAIFI)
Peru Power Company:• Incorporated in 2015. Co-generation
projects development services, peak shaving and power generation
• PPC operates 2 gas thermal generation plants of 19 MW each
• Long-term contracts; ElectroDunas is its main client
Cantalloc:• Incorporated in 2016• Technical services (power meters
checking, maintenance, reconnections, projects and works execution)
Transaction Rationale for GEB
• August 7, 2019: BVL granted GEB 100% of Dunas EnergíaS.A.A. (DESAA) shares
• New business segment in Peru (power distribution andcommercialization)
• Platform for organic and inorganic growth in Peru
• Transaction amount: USD$250 million
• Alignment with GEB’s strategy and investment highlights:
✓ Predictable and stable perspective on dividends✓ Regulated, stable and predictable market✓ Trustworthy regulatory framework✓ Outstanding operational performance✓ Perpetual concession✓ Highly experienced management
• Potential synergies with Contugas
100%
100%
Dunas EnergíaS.A.A.
PPC Perú Holdings S.R.L.
Cantalloc Perú Holdings S.R.L.
99.97% 100%
100%100%
Transaction perimeter
Other shareholders
0.03%
27
Relevant asset in Brazil
► On November 22, 2019, Grupo Energía Bogotá S.A. E.S.P. (GEB) and the Spanish company Red Eléctrica Internacional S.A.U. (REI), subsidiary of Grupo Red Eléctrica, reached an agreement with funds managed by Patria Investments and Sommerville Investments B.V., an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited, to jointly and equally acquire 100% of the common shares of Brazilian company Argo EnergiaEmpreendimentos e Participações S.A. (“Argo”)
► Argo is a platform that holds 3 concessions in the Brazilian power transmission system (States of Ceará, Maranhao, Minas Gerais, Piauí and Rondonia) and will account for 1.470 Km of 500 and 230 kV transmission lines and 11 substations, once the construction process of Argo II and Argo III finishes
► Argo’s most important project (Argo I) represents ~80% of contracted revenue and went fully operational by the end of 2019
Area of influence and transaction structure
► This investment significantly contributes to the development of the Corporate Strategic Plan of the company by consolidating GEB as a relevant player in the country that offers the largest growing opportunities in the power transmission sector in Latin America
► Argo’s management with a world-class partner allows for GEB to maintain growing dividend perspectives in the framework of businesses with low-risk levels and a trustworthy regulatory and legal institutional environment
► Argo is a high-scale growing platform in Brazil that offers the possibility of participating in public bidding processes (leiloes)
► Transaction value: BRL$3,550 million (GEB: 50% = BRL$1,775 million)
► Young company whose development and construction risk (greenfield) is already mitigated
Transaction rationale
Note: RAP: Annual allowed revenue or annual contracted revenue
ArgoGrowth platform in power transmission in Brazil (GEB 50% - Red Eléctrica de España 50%)
End of concession 2046 2047 2047
Auction Apr-16 Oct-16 Aug-17
Substations 5 1 5
Extension (Km) 1,150 N.A. 320
Argo I Argo II Argo III
. Substation
Power transmission line
Argo II
Argo III.
Janaúba III
. ....Bacabeira
Tianguá II
Acaraú III
Pacém II
Parnaíba III
.. ..
Argo I
RAP Cycle 19/20 (BRL$ mm) 474,4 41,5 77,1
28
Status of pending divestitures programs:
Phase 2 - Promigas• The corporate management has not
authorized yet the 2nd phase directed to the general public
• Percentage for disposing of 15,24% (172.916.643 shares)
Banco Popular• Percentage for disposing of 0,1136%
(8.772.703 shares)
2016 2017 2018 2019
Jun.12.17 – Aug.14.17 Phase 1Solidarity SectorAcceptance period
Dec.13.16 Agreement 656 of 2016Authorization for the divestitures of the shareholding in Promigas, ISA, Banco Popular & Nutresa
Sep.12.17Phase 1 PromigasAllocation of shares
Sep.09.17Start Phase 2Divestiture processes to general public: ISA, Banco Popular & Nutresa
Sep.19.17Phase 2 NutresaAllocation of shares
Dec.21.17 / Dec.28.17 Phase 2 ISAAllocation of shares
Divestitures
29*Divest up to 20% of GEB’s Common shares owned by the District, authorized by Bogotá Council (November 2016)Note: In accordance with the agreement 656 of 2016 of the District Council of Bogota, the District will execute a Democratization process. The information herein countained is only for information and illustrativepurposes. It is not intended to be an exact estimation, nor is it a source of legal, investment or financial advice information on any matter
1
Due diligence, valuation and structuring process,
February 2017 -2nd Semester 2017
City Government Council endorses the
Disposal Programand sets minimum price
December 20th, 2017
2
Issuance of Democratization decree
and programDecember 20th, 2017
3 4
First phaseSolidarity sector
Dec. 26th – Feb 26th,2018
Second phaseGeneral public
July 5th – July 18th, 2018
Operation completion and closure
July 31st, 2018
5 6
20/12/2017
Management AgreementSDH-EEB
Organize and manage the Democratization* process
February 2017
0
In process
Completed
Offer
period
Notice of offer
Roadshow
Offer period
Notice of offer
Roadshow
Law 226 of 1995 Democratization Results: (First and second phase)
• District of Bogotá received COP$1.963.020 million• This amount represents 10,6% of GEB’s common
shares
7
District of Bogotá has authorization to sell the
remaining 9,4%. The operation should be
considered by the next local government
Democratization*
30
Infrastructure – Power TrasnsimissionColombia
31
Cartagena Refinery
Barrancabermeja Refinery Bucaramanga
Bogotá
Neiva
Cali
Medellín 2.23 tcf
0,49 tcf
ProducersIn the east:
EcopetrolEquion
Alto Valle del Magdalena
Magdalena Medio
Bajo Magdalena
Producersfrom the north:
ChevronEcopetrol 0,62 tcf
Guajira
Cusiana-Cupiagua
References
TGI’s pipelines
Natural Gas Reserves
City
FieldRefinery
Gas pipelines from third parties
Reserves in other regions 0.42 tcf
Total reserves 3.89 tcf*P
aci
fc O
cea
n
Caribean Sea
VEN
EZU
ELA
(1) It has access to three of the main gas production fields: Guajira and Cusiana-Cupiagua* Total reservesin 2018 added up to 3,78 tcf. Disaggregation by department is not available.
Source: Unidad de Planeación Minero Energética - Agencia Nacional de Hidrocarburos
Infrastructure – TGI Colombia
32
Lim
a -
Calla
o
Infrastructure - CáliddaPerú
33
Ica
Infrastructure - ContugasPerú
34
Infrastructure – TRECSA & EEBISGuatemala
35
Energy Demand(GWh)
Sustained Growth of Energy Demand in Colombia, Peru and Guatemala
8.9299.537
10.490 10.88711.625
12.38113.348 13.369
11.078
2012 2013 2014 2015 2016 2017 2018 2019 2020*
37.321
39.66941.796
44.485
48.288 48.99350.817
52.889
46.541
2012 2013 2014 2015 2016 2017 2018 2019 2020*
59.37060.890
62.812
65.25666.319 66.893
69.126
71.925
69.466
2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: XM and UPME
Source : Coes’a anual evaluation Source: Administrator of the Wholesale Market of Guatemala*Note: Projected
Peru Guatemala
Colombia
36
Natural Gas Demand (GBTUD)
Strong Footprint in LatAm Natural Gas MarketGEB is well positioned to benefit from the expected growth in the natural gas sector via its investments in TGI, Gas Natural, Cálidda & Contugas
877980
1.062 1.049 1.020937 967
1.026 1.038
2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: UPME and BMC
1.1431.180
1.2501.209
1.355
1.2521.229
1.299
1.038
2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: Ministry of Energy and Mining
*Note: Average until April 2020
Controlled production of natural gas(GPCD)
Peru
Colombia
37
Investor relations
www.geb.com.co
www.grupoenergiabogota.com/en/investors
Jorge Tabares
CFO GEB [email protected]
+57 (1) 318 248 1312
+57 (1) 314 600 9874Valeria Marconi
IR Manager [email protected]
Juan CamiloAmaya
IR Advisor
+57 (1) 326 8000
Juan Ricardo Ortega
CEO GEB [email protected]
+57 (1) 326 8000
Diana CarolinaDíaz
IR Advisor
+57 (1) 326 8000
38
The information provided herein is for informational and illustrative
purposes only and is not, and does not seek to be, a source of
legal, investment or financial advice on any subject. This
presentation does not purport to address any specific investment
objectives, financial situation or particular needs of any investor. It
should not be regarded by recipients as a substitute for the
exercise of their own judgment. This information does not
constitute an offer of any sort and is subject to change without
prior notice. GEB is no obligation to update or keep current the
information contained herein.
GEB expressly disclaims any responsibility for actions taken or not
taken based on the information provided herein. GEB does not
accept any responsibility for losses that might result from the
execution of the proposals or recommendations herein presented.
GEB is not responsible for any content that may originate with
third parties. GEB may have provided, or might provide in the
future, information that is inconsistent with the information herein
presented. No representation or warranty, either express or
implied, is provided in relation to the accuracy, completeness or
reliability of the information contained herein.
This presentation may contain statements that are forward-
looking within the meaning of Section 27A of the Securities Act
and Section 21E of the U.S. Securities Exchange Act of 1934.
Such forward-looking statements are based on current
expectations, projections and assumptions about future events
and trends that may affect GEB and are not guarantees of future
performance.
The shares have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”) or
any U.S. State securities laws. Accordingly, if shares are offered
and sold in the United States it should be understood as only
directed to qualified institutional buyers as defined under Rule
144A under the Securities Act, and outside the United States in
accordance with Regulation S of the Securities Act.
We converted some amounts from Colombian pesos into U.S.
dollars solely for the convenience of the reader at the TRM that
corresponds in each case. These conversions should not be
construed as a representation that Colombian peso amounts
have been or could be converted to US dollars at this or any
other exchange rate. The document presents the corresponding
variations under the International Financial Reporting Standards
(IFRS)..
Disclaimer