Armenia Project GRUPO ENERGÍA DE BOGOTA€¦ · Río Cordoba Transformadores 28.9% 0.6 30/11/2016...
Transcript of Armenia Project GRUPO ENERGÍA DE BOGOTA€¦ · Río Cordoba Transformadores 28.9% 0.6 30/11/2016...
GRUPO ENERGÍA DE BOGOTA 1Q 2016 Key Results and Developments
Armenia Project
May 24th 2016
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EEB OVERVIEW Key Updates 1Q
EXPANSION PROJECTS Highlights Review 1Q
FINANCIAL Q&A
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EXPANSION PROJECTS Highlights Review 1Q
FINANCIAL Q&A EEB OVERVIEW Key Updates 1Q
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EEB CORPORATE STRUCTURE EEB generally controls its subsidiaries or partners with world class operators following a long track record of success.
Transmission Distribution Distribution
Electricity
Transport
Natural Gas Services
Generation
51.5%
2.5% 1.7%
51%(1)
16.2% 99.97%(2)
15.6% 100%
25%
100%(3)
66%(3)
100% 51.5%
99.9%
95.3% 100%
100%
100%
40%
40%
100%(4)
Colombia
Peru
Guatemala
Brazil
(1) EEB ownership through DECSA Special Purpose Vehicle. (2) EEB ownership
directly and indirectly through IELAH Spain (additional 31.92%).
(3) EEB effective ownership via direct and indirect stakes. (4) Through GEBBRAS
Special Purpose Vehicle acquired on August 21, 2015 51% stake in four
concessions for ~USD158 mm.
Selling process Law 226
|
Companies in process of merger
Companies in process of liquidation
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KEY UPDATES Corporate Highligths
Shareholders Assembly Decision
06/07/2015: Approved the release of occasional reserves amounting to COP 458,851 million. The extraordinary dividend of COP ~49.98 per
share will be paid out to minority shareholders in one installment in July 5th 2016. For the major shareholder, the District of Bogotá, holding a
stake of 76.28% in EEB, will be paid the dividend as of 2017 in 10 annual installments until 2026.
31/03/2016: In the Shareholders meeting EEB declared dividends to its shareholders amounting to COP 224,350 million, equivalent to COP
24.43 per share.
Minority shareholder Payment (100%) July 5th 2016.
Major Shareholder Payment: First Installment (40%) July 5th 2016
Second Installment (60%) October 28th 2016
ISAGEN Divestiture
Bogota’s municipality council authorized EEB on March 31st of 2016 to divest ISAGEN shares.
On April 20th, the first phase addressed to the solidarity sector (Law 226/95) started and it will be open until June 20th 2016 then during the
second phase EEB could offer the shares to BRE Colombia Investments.
After that date, the share will be offer to the general public and offer to any Open OPA (Oferta Publica de Acciones).
Ecopetrol selling process
On May 23rd, Ecopetrol announced the second offering of its EEB’s participation of 3.03%. On June 1st 2016 the auction will be open in
the Colombian Securities Exchange.
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KEY UPDATES Natural gas transportation & distribution activities
Calidda
Cálidda´s client base has increased 33% compared to first quarter of 2015, ate the closing of the first quarter 2016 Calidda has a client base
of ~ 370,000 clients
During the first quarter, 371 km of network were built, whereby the distribution system has reached a total of 6,360 km of underground
pipelines.
The EBITDA finalize in USD 106.6 Mm, increasing in 10% compared with the same period of 2015. This increase was mainly due to the
costs reductions explained by the renegotiation of the main contracts at lower prices
On March 2016 the shareholders meeting approved to distribute USD 30.4 Mm in dividends to shareholders based on net profit 2015.
Dividends were paid on April 1st 2016.
TGI
Dividends declared
On March 30th 2016 the shareholders meeting approved to distribute USD 22.1 MM in dividends to shareholders based on net profit 2015
Dividends were paid on April 4th 2016
IELAH Merging: On January 29th 2016, the Colombian Societies Superintendence (Supersociedades) approved the merger between TGI and IELAH. On May 11th 2016 TGI finalized the merger with IELAH; which was the Final Phase of the acquisition plan. As a result the remaining debt of that entity will be in TGI´s BS
Current outstanding debt of IELAH is USD 219 MM(1), after three partial repayments done: i) March 2015 (USD 76 MM) ; ii) September 2015 (USD 175 MM); iii) On March 11th 2016 (USD 175 MM).
(1) Excluding intercompanies loans
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EEB OVERVIEW Key Updates 1Q
EXPANSION PROJECTS Highlights Review 1Q
FINANCIAL Q&A
1.3
2.0
18.2
53.8
93.0
1.1
34.9
3.4
68.7
7.3
Gas Distribution
Gas Transportation
Electricity Distribution
Electricity Transmission
Electricity Generation
1Q20161Q2015
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EXPANSION PROJECTS REVIEW Revenue growth has been sustained by a strong capex plan at the subsidiary and the associate level.
Associates
Source: Company filings.
(1) Excludes Brazil – GEBBRAS Capex
(2) Expected annual revenues.
Executed Capex by Segment(1)
(USD Mm)
Executed Capex by Segment (USD Mm)
Projects Update (1Q 2016)
UPME Project Status EAR(2)
USD MM On Stream
Chivor II 50.9% 5.5 08/07/2017
Cartagena Bolívar 32.4% 11.6 07/03/2017
Río Córdoba 32.5% 1.8 30/11/2016
Armenia 94.0% 1.3 26/11/2015
Tesalia 80.0% 11.0 14/02/2016
Sogamoso Norte 25.1% 21.1 30/09/2017
Refuerzo Suroccidental 500 kV 7.0% 24.4 30/09/2018
Ecopetrol San Fernando 18.4% 6.3 30/04/2017
Río Cordoba Transformadores 28.9% 0.6 30/11/2016
La Loma 500 Kv 26.8% 1.3 30/11/2016
La Loma 100 Kv 0% 6.9 30/06/2018
Drummond Rio Cordoba 11.9% 0.6 30/11/2016
Projects Update (1Q 2016)
El Quimbo Project (400 MW)
Total investment: USD1,231 mm (including contingencies)
Execution 1Q 16: 100%
Full operation: On stream since november 23rd
Quimbo will deliver ~5% of Colombia Power Generation
(Avg. 2,216 GWh/yearly)
Subsidiaries
On-going projects:
CONCESION - MANTARO – MARCONA
LA PLANICIE –INDUSTRIALES
FRIASPATA MOLLEPATA and ORCOTUNA
Substation
Capex by Company (1Q 16)
USD 115.4 Mm
14.6
4.0
20.2
33.3
1.9
3.2
19.8
23.8
Gas Transportation
Electricity Distribution
Gas Distribution
Electricity Transmission
1Q 2016
1Q 2015
EEC 6.6%
TGI 3.9%
Contugas 1.0%
Cálidda 39.6% Trecsa
24.5%
EEBIS GTM/PE 12.7%
EEB Trans. 11.7%
Capex by Company (1Q 16)
USD 48.7 Mm
Promigas 30.3%
Gas Natural
1.0%
REP 5.2%
Codensa 3.0%
Emgesa 6.3%
CTM 54.3%
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FINANCIAL PLAN 2013-2019 Investments and Funding Sources
Source: Company filings.
(1) Mainly concentrated on electricity transmission businesses (COL / Overseas).
(2) 2014 Incliudes M&A transaction IELAH Equity Portion
(3) 2015 Includes M&A transaction Brazil Equity portion
2013 – 2019 Funding Investments
64 80 69 153
204 211 84 74 94
126 93
35 36 29
77 29
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12 11
202 143 101
108 94
82
80 81
264
55
$386
$597(2)
$347(3)
$465 $420
$304
$92 $92
2013 2014 2015 2016E 2017E 2018E 2019E 2020E
Electricity Colombia Electricity Overseas Natural Gas Colombia
Natural Gas Overseas M&A Natural Gas M&A Electricity
USD mm %
Executed Capex 2013-2015 $1,330 49%
Cash Generation After Dividends 2016-2020 $1,147
Incremental Debt 2016-20 $225
Subtotal 2016-2020(1) $1,372 51%
TOTAL 2013-2019 $2,702
EEB Capex Profile – Controlled Companies
(USD mm)
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Review 1Q
FINANCIAL EEB OVERVIEW Key Updates 1Q
EXPANSION PROJECTS Highlights
Q&A
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CONSISTENT FINANCIAL PERFORMANCE Consolidated Results (IFRS) 1Q2015– 1Q2016
Revenues (+31%): Growth is explained mainly by:
(+77% COP 30,275 mm) Electricity Transmission: Coming on
stream of the Alferez Substation & SVC Tunal.
(+20% COP 64,105 mm) Natural Gas distribution: New clients
(residential and industrial) connected by Cálidda & Contugas and
higher volume distributed.
(+37% COP 101,224 mm) Natural Gas transportation. Larger
transported volume due to major thermal generation demand.
(+27% COP 22,264 mm) Electricity Distribution
Profit from Operating Activities (+51%):
Operational costs and expenses showed an increase due to:
(+82.1% COP 33,137 mm) Natural gas distribution: new clients connected
in Cálidda & Contugas.
(+71.8% COP 12,621 mm) Electricity Transmission: new projects under
execution and some already on stream.
(+38.3% COP 65,675 mm) Natural gas Transportation: Increase on
transported volume and FX effects.
(+185.8% COP 8,749 mm) Electricity distribution. Increase on energy sales
through EEC.
(1) Excludes administrative expenses & net of other expenses and gains
709,669
927,537
77%
27%
20%
37%
31%
69,736 103,840
376,712
377,249
1Q 15 ElectricityTransmission
ElectricityDistribution
Natural GasTransportation
Natural GasDistribution
1Q 16
EEB's Operating Revenues By Segment 1Q 16 - 1Q 15 COP Millions - Growth Rate
234,310
354,492
186%
72%
82%
38% 51%
13,459 30,198
73,508
237,327
1Q 15 ElectricityDistribution
ElectricityTransmission
Natural GasDistribution
Natural GasTransportation
1Q 16
EEB's Operating Profit By Segment (1)1Q 16 - 1Q 15 COP Millions - Growth Rate
1Q 15 1Q 16 COP %
Profit from operating activities 214,623 317,225 102,602 48%
Financial Income 24,807 32,135 7,328 29%
Financial Expenses -106,393 -127,957 -21,564 20%
Exchange gain (loss) -67,193 64,736 131,929 -196%
Share of profit (loss) of associates
and joint ventures accounted for
using equity method
209,103 232,376 23,273 11%
Tax income (expense) -60,652 12,026 72,678 -120%
Profit (loss) 189,488 498,406 308,918 163%
Owners of parent 205,972 508,720 302,748 147%
Non-controlling interests 8,323 21,821 13,498 162%
COP Million Var.
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CONSISTENT FINANCIAL PERFORMANCE Consolidated Results (IFRS) 1Q2015– 1Q2016
(1) Includes administrative expenses & net of other expenses, other gains
Finance income increased 29.5% due to (a)
Valuation on hedging operations COP 9,297
mm. (b) less Interest returns on financial
investments COP 1,969 mm
Finance costs increased 20.2% due to:(a)
Greater Interest payments; (b) Exchange
difference in interest payments, commisions
and other banking costs.
Net Exchange difference increase over 1Q 16
in 196%
Increase in equity method of Associates.
Generated tax income due to deferred tax at
the level of TGI and Cálidda.
Net income, grew by 148% due to operational
results and equity method contribution from
associates.
214,623
-81,586 -67,193
209,103
-60,652
214,295 205,972
317,225
-95,822
64,736
232,376
12,026
530,541 508,720
17%
-196%
11%
-120%
+24%
147%
Profit from operatingactivities
Net FinancialExpenses
Exchange gain (loss) Share of profit (loss)of associates and
joint venturesaccounted for using
equity method
Tax income (expense) Profit (loss) Owners of parent
1Q 15 1Q 16
(1)
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EVOLUTION OF EBITDA Operational EBITDA has increased from 19% to 68% of Consolidated Adjusted EBITDA over the last 10 years demonstrating increased strength of EEB’s controlled assets.
(COP mm)
Source: Company filings.
Note: Figures for the years 2006–2013 are presented under ColGaap standards. For 2014 & 2015 are presented under IFRS
(1) Normalized for timing differences in dividends declared and paid. 2010 excludes dividends declared based on an early close of Gas Natural, Emgesa and
Codensa’s financial statements. These figures are included in 2011, when such dividends would normally have been declared. Anticipated dividends declared by
Codensa on first half 2011, were included in 2012. 2014 excludes dividends declared based on an early close of Gas Natural, Emgesa and Codensa’s financial
statements. These figures are included in 2015, when such dividends would normally have been declared.
Normalized Consolidated Adjusted EBITDA(1) Consolidated Adjusted EBITDA 1Q 16 LTM by Subsidiary
(USD mm)
Consolidated Adjusted EBITDA 1Q 16 LTM by Segment
EEB has significantly increased its operational EBITDA generation
68% 64%
56%
52%
55% 56%
39% 45%
44% 33%
19%
32% 36%
44% 48%
45% 44% 61% 55% 56% 67%
81%
2,557,193 2,413,812
1,964,666
1,775,908
1,447,335
1,369,533
1,122,343
1,053,942
934,163 949,599
539,319
948 878 973 922 819 705 586 516 416 471 241
1Q 2016LTM
2015201420132012201120102009200820072006
EEB Transmisión,
Trecsa & EEBIS Guate
6%
TGI 45%
Decsa/EEC 4%
Cálidda, Contugás & EEBIS Perú
14%
Emgesa 16%
Codensa 9%
Gas Natural 2%
Promigás 2%
ISA, REP & CTM 1%
Otros 1%
Electricity Generation
16.5%
Electricity Transmission
6.9%
Electricity Distribution
13.0% Gas Transportation
46.9%
Gas Distribution 16.3%
Others 0.4%
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DESCRIPTION OF INDEBTEDNESS 2013-2019 Investments and Funding Sources
Net Debt / Consolidated Adjusted EBITDA(1)(2)(3) Consolidated Adjusted EBITDA / Net Interest(1)(2)(3)
Consolidated Debt Composition Debt Maturity Profile
(USD mm) (USD mm)
Source: Company filings.
(1) Covenant associated to this indicator is currently suspended since the bond EEB 2021 has investment grade, granted by three risk rating agencies monitoring the latter. Covenant established
in Offering Memorandum of USD749,000,000 EEB 6.125% Senior Notes due 2021. It includes anticipated dividends.
(2) 2015 EBITDA includes dividends declared based on 2014 early close of Gas Natural’s, Emgesa’s and Codensa’s financial statements
(3) Increase is mainly explained by increase of foreign exchange (USD/COP movements).
(4) 2019:Syndicated loan acquired by Contugas (USD342 mm) and additional indebtedness incurred by SPV in order to reacquire 31.92% of TGI IELAH (USD219 mm).
$1,543 $1,737 $1,733
$2,218
$3,009 $2,803 $2,650
3.4% 6.4% 2.9%
2.2%
0.7% 1.2%
4.6%
96.6% 93.6% 97.1%
97.8%
99.3% 98.0%
95.4%
2010 2011 2012 2013 2014 2015 1Q 16
169.5 147.5
51.2
604.6
13.1
749.0 750.0
320.0
2016 2017 2018 2019 2020 2021 2022 2023
2.78x 3.20x 3.27x
2.41x 3.03x
4.50x
1Q 164Q 153Q 152Q 151Q 15
8.80x 7.30x
11.12x
15.83x 15.47x
2.25x
1Q 164Q 153Q 152Q 151Q 15
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TRACK RECORD OF CREATING VALUE – SHARE PRICE APPRECIATION EEB’s shares have outperformed the Colcap over the last year providing stable returns in a volatile market environment.
Historical Share Price Evolution
• Ticker EEB: CB | Part of COLCAP, COLEQTY and COLIR • As of March 31st 2016 EEB’s marketcap was USD 5.7 Billion • Average Target Price COP1,865 (USD 0.59) (1)
Source: Bloomberg as of March 31st 2016.
(1) Average target price calculated as the average of the following brokers: Credicorp: COP1,810; BTG: COP1,820; Gobal Securities Colombia: COP1,900;
Asesores en Valores: COP1,740; Corredores Asociados: COP1,940; Ultrabursatiles: COP1,850 & Valores Bancolombia: COP1,810. Larrainvial: COP 2,050.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
20
40
60
80
100
120
Vo
lum
e (
CO
P M
m)
Pri
ce (
Ind
exed
100)
Volume
EEB Share
Colcap Index
(6.6%)
(-23.2%)
Colombia Colcap
• Dividend Payout Ratio 2015: 26% Avg 2008 - 2015: 77% • Dividend Yield 2015: 4.3 % Avg 2010 - 2015: 4.2%
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Q&A EEB OVERVIEW Key Updates 1Q
EXPANSION PROJECTS Highlights Review 1Q
FINANCIAL
Webcast Link Conference ID: 42570647
Phone Numbers: Audience Colombia - Bogotá Local +57 1 380 804 Audience US Toll Free +1 (888) 771-4371 Audience Peru Freephone 0800 54051 UK Freephone 0808 238 9578
Appendix
1. Business Regulatory Update
2. EEB Corporate Governance
Electricity Transmission
Ongoing discussions on a new methodological proposal to remunerate the electricity transmission activity (Res CREG 023 de 2016). The main issue currently under discussion is the transition to a new scheme to remunerate assets from the methodology Net Replacement Value (NRV) to a methodology of Depreciated Assets (DORC).
The cross-sectional methodology was issued (for all regulated activates undertaken by CREG) to calculate WACC rate. To date, WACC has not been calculated for the transmission activity.
Natural Gas Transportation
Issuance of new cross-sectional methodology (for all GREG regulated activities) for the calculation to WACC rate. To date WACC has not been calculated for gas transport
Procedure undertaken at CREG to assess 10 gas pipelines that completed the Useful Life Standars (20 years). investment acknowledged in this pipelines, if are maintained working, increased 13.4% with respect to the value acknowledged in the last tariff review (Res CREG 121 of 2012), from US$ 56,5 to US$ 64,1 million.
Electricity Transmission- Guatemala
Trecsa began a process at Ministry of Energy and Mines aimed at being acknowledged US$331,076.24 per year, on account of force majeure of Acts of God during the performance of the project; this petition was accepted by the Ministry as per Resolution 599 of 23 February 2015.
To date, it awaits that the National Commission for Electric Power (CNEE - for its Spanish acronym) issues the final resolution to include those additional resources to TRECSA.
Natural gas Distribution
Issuance of new cross sectional methodology (for all activities regulated by CREG) to calculate WACC rate. The actual WACC rate before taxes was established annually for 2015-2019 as follows:
Res.096/15 2015 2016 2017 2018 2019+ 13,28% 13,51% 13,97% 14,23% 12,47%
BUSINESS REGULATORY UPDATE
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EEB CORPORATE GOVERNANCE
Experienced Management and Board of Directors Corporate Governance and Transparency
The government of the District of Bogotá is responsible for appointing a majority of the members of EEB’s board of directors and executive officers, including EEB’s president
Shareholder’s Meeting approved new bylaws according to the OCDE.
High quality practices and standards in accordance with national listing
requirements given that EEB is listed on the Colombian securities
exchange.
The Board of Directors has created operations, management and control
committees to aid in efficiently carrying out the activities of the Company
Note: (1) The Board of Directors is responsible for establishing general business policies and guidelines, as well as long-term strategy. All directors are elected for an
unlimited duration. Directors must remain in office until their successors are elected and have taken office (2) independent member.
.
Executives Position Year of a appointment
Astrid Álvarez President 2016
Leonardo Garnica Investments VP 2016
Ernesto Moreno Transmission VP 1997
Felipe Castilla Financial VP 2013
Lina Toro Human Resources & Services VP 2016
Diana Vivas Legal & Regulation VP 2016
Juan Daniel Avila Sustainable Development Director 2016
Mauro Hernan Mejia Strategic Supply Chain Director 2016
Sandra Aguillón Internal Audit Director 2011
Maria José Quiceno Communications Director 2016
Board of Director(1) Possition Actual Position Year
Beatriz E. Arbeláez Martínez President District’s Finance Secretary 2016
Jaime E. Ruiz Llano Vice-president Colvivienda CEO 2016
Alberto Gutiérrez Bernal Director Titularizadora Colombiana CEO 2016
Gisele Manrique Director Major’s Office Chief Counsel 2016
Margarita Ma. Rehbein Dávila Director CFO Sanford Management 2016
Carlos A. Sandoval Reyes Director Structured Finance VP FDN 2016
Antonio J. Núñez Trujillo Director(2) Partner Nuñez Rincon Lawyers 2016
Rafael Herz Stenberg Director(2) Asoc. Colom. del Petróleo VP 2016
Gustavo Ramirez Director(2) Investment VP Corficolombiana 2012
Shareholders’ Meeting Peak governance body
Compensation Committee and Financial insvestments Committee Made up by three independent board members
External Controls Tax Review, External Audit, specialized audits, City Controllers Office, SSPD and SFC
Strategic Supply Chain Committee and Executive
Contract Committee Analysis of contracting procedures
and recommendations to the Executive Committee
Audit and risk Committee
Made up by three independent board members
Corporate Governance Committee
Three board members. At least one of them must be
independent
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INVESTOR RELATIONS For more information about Grupo Energía de Bogotá (GEB) contact our Investor Relations team:
Felipe Castilla Canales
Rafael Andrés Salamanca Investor Relations
Advisor GEB
+57 (1) 326 8000 Ext 1675
CFO
www.eeb.com.co www.grupoenergiabogota.com/en/investors
+57 (1) 326 8000 Ext 1501 Fabián Sánchez
Aldana Investor Relations
Advisor GEB
+57 (1) 326 8000 Ext 1827
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DISCLAIMER
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 recipient. 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 notice. EEB is no obligation to update or keep
current the information contained herein.
EEB expressly disclaims any responsibility for actions taken or not
taken based on this information. EEB does not accept any
responsibility for losses that might result from the execution of the
proposals or recommendations presented. EEB is not responsible for
any content that may originate with third parties. EEB 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 EEB 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, the shares are being offered and
sold in the United States only 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 published by the
SFC as of each period. These convenience translations are not in
accordance with U.S. GAAP and have not been audited. These
translations should not be construed as a representation that the
Colombian peso amounts were, have been or could be converted into
U.S. dollars at those or any other rates.