Tgi earnings call 3 Q presentation

1. October 2014
Strictly Private and Confidential
TGI 3Q RESULTS

2. 2
Table of contents
1. TGI overview and history
2. Key updates
3. Financial and operating highlights
4. Questions and Answers
Appendix
1. Economic industry and regulatory environment
2. Shareholders and management team
3. EEB Overview

3. 1. TGI overview and history

4. 4
Overview
Stable and growing Colombian economy with sound investment environment
Constructive and stable regulatory framework
Largest natural gas pipeline system in Colombia
Stable and predictable cash flow generation, strongly indexed to the US Dollar
Strong and consistent financial performance
Experienced management team with solid track record in the sector
Expertise, financial strength and support of shareholders
Natural monopoly in a regulated environment
Strategically located pipeline network

5. Company history
TGI history
Pipeline networkHighlights
 Owns ~61% of the national pipeline network (3,957
km) and transports 52% of the gas consumed in the
country
− Serves ~70% of Colombia’s population, reaching
the most populated areas (Bogota, Cali, Medellin,
the coffee region and Piedemonte Llanero, among
others)
− Has access to the two main production regions, La
Guajira and Cusiana/Cupiagua
 25% interest in Contugas (Peru)
− 30-year concession for natural gas transportation
and distribution
 TGI was created as a result of the privatization of Ecogás and has experienced remarkable growth since then, under
the leadership of its controlling shareholders, EEB and CVCI
 Creation of Ecogas
1997
2005
 Start of Ecogas
Privatization
Process
2006
 Ecogas assets
awarded to EEB
 Creation of TGI
 Inaugural bond issuance
 Transfer of first
BOMT pipeline
(GBS)
 Pipelines
exchange with
Promigas
 CVCI
capitalization
 Transfer of
second BOMT
pipeline
(Centragas)
 Cusiana
expansion phase
I: start of
operations
 Refinancing of
subordinated debt
with EEB
2008
 TGI takes over the O&M
of owned pipelines
 Refinancing of
bonds issued in
2007
 Cusiana
expansion
phase II: start of
operations
 TGI takes over
the O&M of
compressor
stations
 Awarded
investment
grade rating by
Moody’s and
Fitch
2010
 Awarded
investment grade
rating by S&P
 Headquarters
relocation from
Bucaramanga to
Bogotá
 Redesign of
organizational
structure
2012
2013
2007
2009
2011
2014
 EEB acquired
31.92% stake in
TGI from TRG
(formerly CVCI)
Cartagena
Refinery
Barrancabermeja
Refinery Bucaramanga
Bogota
Neiva
Cali
Medellin
3.15 tcf
1.97 tcf
Eastern
Producers:
Ecopetrol
Equion
Upper Magdalena Valley
Lower and Middle
Magdalena Valley
Northern
Producers:
Chevron
Ecopetrol 1.89 tcf
References
TGI Pipelines
Natural Gas Reserves
City
Field
Refinery
Third Party Pipelines
Source:
Mining and Energy Planning Unit.
National Hydrocarbons Agency.
5
 Sabana Compressor
starts operations
 Contugas Concession
starts operations
 TGI´s first dividend
Payment

6. 2. Key Updates
6

7. 7
Key updates
 Since 2H 2011, TGI designed a strategy to improve its credit ratings in order to (i) reduce financial
expenses, (ii) provide better access to debt capital markets and (iii) broaden its potential investor
base
 On August 28th, Standard & Poor’s affirmed the TGI corporate debt and issuer rating in ‘BBB-‘,
perspective stable
 On October 28th, Fitch Ratings upgraded TGI’s corporate debt and issuer rating from ‘BBB-’ to
‘BBB’, with stable perspective
 TGI’s current ratings are as follows:
Baa3 Stable OutlookBBB Stable Outlook BBB- Stable Outlook
Fitch upgraded TGI’s credit rating to BBB on Oct 28, 2014

8. Hedge Restructuring
Key updates
• During the first quarter of 2014, TGI executed synthetic unwinds to cap losses
related to 3 of 4 cross-currency swaps booked in 2009
• On September 2014, TGI executed the forth synthetic unwind hedging the whole
cross-currency swaps booked in 2009

9. TGI’s acquisition
9
 EEB closed the TGI 31,92% share acquisition on the first half of 2014
 To bridge the acquisition EEB used cash on hand and short term financings
 USD $ 645 MM were disbursed on September 2014 trough credit facilities to IELAH
 On September 2014 IELAH repaid to TGI the USD 129 MM short term loan that bridged the acquisition
 TGI is currently working on the merger with IELAH, this merger is expected to take place the 2Q 2015
Key updates
 In ordinary session held on October 29th 2014, the General Shareholders Meeting approved the
distribution of reserves and the net profits of the first eight months of 2014, amounting ~ USD 250
mm
Dividends Declared
 On July 7th TGI started operations of La Sabana Compression Station
 Civil work continues end up the project which to the date has a completion of 91%.
La Sabana Compression Station

10. 3. Financial and operating highlights
10

11. 11
Solid operational performance
(1)The trend line refers to the ratio: Firm contracted capacity/available capacity. The Available capacity differs from the Total Capacity as TGI requires a percentage of it for its own use.
Source: Company information.
Network length
(km)
Capacity
(MMscfd)
Firm Contracted Capacity(1)
(MMscfd)
Transported Volume Gas Losses Load factor
(MMscfd) (%) (%)
3,702
3,529
3,774 3,774
3,957 3,957 3,957
2008 2009 2010 2011 2012 2013 3Q-14
478 478
548
618
730 730 730
2008 2009 2010 2011 2012 2013 3Q-14
427 437
485
560
604 628 652
90% 92% 90% 92%
85%
88%
92%
2008 2009 2010 2011 2012 2013 3Q-14
371
396
422 420 422
454
500
2008 2009 2010 2011 2012 2013 3Q-14
0.1%
0.2%
0.6%
0.5% 0.5%
0.4%
0.0%
2008 2009 2010 2011 2012 2013 3Q-14
66% 69% 71%
58% 59% 61% 63%
2008 2009 2010 2011 2012 2013 3Q-14

12. 12
Strong contract structure and stable and predictable cash flow generation
 TGI’s revenues are highly predictable, with approximately 98% coming from regulated tariffs that are reviewed at least every 5
years, ensuring cash flow stability and attractive rates of return
 Main sectors served by the Company (72(1)% of revenues) present stable consumption patterns (no seasonality)
 The Company enjoys excellent contract quality
− 100% of TGI’s contracts are firm contracts with an average remaining life of 8 years
− 82.8% of regulated revenues are fixed tariffs, not dependent on transported volume
− 63%(2) of revenues denominated in US Dollars
Revenues breakdown
(% of revenues)
Source: Company information.
(1) Includes Distributors, Ecopetrol´s refinery and Natural gas for Vehicles.
(2) TGI calculations
(3) Ecopetrol accounts for most of this revenue.
TGI’s revenues are highly predictable as a result of regulated tariffs and stable consumption
Source: TGI as of June 30- 2014
By Client By Sector
Ecopetrol
15%
Gas Natural
19%
Gases de
Occidente
16%
EPM
12%
Isagen
7%
Others
31%
Distributor
55%
Refinery
13%
Thermal
20%
Commercial
3%
Vehicles
4%
Others*
6%

13. 13
Strong and consistent financial performance
Revenues EBITDA and EBITDA margin
Funds from operations (1)
(US$ in millions – average exchange rate for each period)
Source: Company information
Historical Capex - YTD
(US$ in millions – average exchange rate for each period)
(US$ in millions – average exchange rate for each period) (US$ in millions – average exchange rate for each period)
(1)FFO calculated as net income plus depreciation, amortization and provisions, adjusted for effect from exchange rate and hedges.
On 2012 FFO includes the LM transaction premium~ USD 69 million (one time event)
238
252
294
338
390
465
480
2008 2009 2010 2011 2012 2013 LTM-14
3Q
194 196
222
257
289
359
378
82%
78% 75% 76% 74%
77% 79%
2008 2009 2010 2011 2012 2013 LTM-14
3Q
84
96 104 114
129
268
254
2008 2009 2010 2011 2012 2013 LTM-14
3Q
13.9
69.1
174.1
387.0
185.1
31.9 27.8
2008 2009 2010 2011 2012 2013 3Q-14

14. 14
Strong and consistent financial performance
Total debt / EBITDA
Financial debt breakdown (3)
Subordination Agreement
 The lender is EEB (major shareholder)
 No repayment of principal allowed before payment of senior debt
 Interest can only be paid if there is no default or event of default and if
the payment does not trigger any such scenario
 Subordinated debt acceleration is not allowed until senior debt is not
repaid
Source: Company information. Total debt includes senior debt, subordinated debt and mark-to-market.
Note: Ratios calculated in local currency.
(1) Senior Net debt excluding EEB´s short term intercompany Loans. Including the ICL the ratio lowers to 1.2x
(2) Interest coverage ratio calculated as EBITDA / Net interest
(3) Senior debt stands for the US$750 million Senior Unsecured Notes due 2022. Subordinated debt stands for intercompany loan with EEB.
Senior net debt (1) / EBITDA Interest coverage (2)
2.0 2.0 2.0
2.5
4.0
5.9
6.4
2008 2009 2010 2011 2012 2013 3Q-14
6.5
5.6 5.4
4.9
4.2
3.5 3.4
2008 2009 2010 2011 2012 2013 3Q-14
3.7
3.3 3.4
2.7
2.4
1.5
1,6
2008 2009 2010 2011 2012 2013 3Q-14

15. 4. Questions and answers

16. 16
Investor Relations
For more information about TGI contact our Investor Relations team:
Antonio José Angarita Vega
CFO
+57 (1) 3138400 - ext 2110
antonio.angarita@tgi.com.co
Sergio Andrés Hernández Acosta
Finance Manager
+57 (1) 3138400 - ext. 2450
sergio.hernandez@tgi.com.co
Fabián Sánchez Aldana
IR Advisor - EEB
+57 (1) 3268000 - ext. 1827
fsanchez@eeb.com.co
http://www.tgi.com.co

17. Appendix 1 – Economic industry and regulatory
environment

18. Source: Banco de la República, DNP, MINHACIENDA., Bloomberg
5-year CDS Foreign currency reserves
Real GDP growth and inflation Foreign direct investment
(US$ in billions)(% growth)
(%) (US$ in billions)
Stable and growing Colombian economy with sound
investment environment
Despite the recent global economic slowdown, Colombia has experienced positive economic
growth and an increase in industrial activity, supported by a steady flow of investment
5%
5%
7% 7%
4%
2%
4%
7%
4% 4% 4%6%
5% 4%
6%
8%
2%
3%
4%
2%
2%
3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(e)-
Real GDP growth
Inflation
0
100
200
300
400
500
600
700
01-04
06-04
11-04
04-05
09-05
02-06
07-06
12-06
05-07
10-07
03-08
08-08
01-09
06-09
11-09
04-10
09-10
02-11
07-11
12-11
05-12
10-12
03-13
08-13
01-14
06-14
9 10 11 11
14 15 15
21
24 25
28
32
37
44
47
-5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
0
10
20
30
40
50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
International reserves
Debt as % of GDP
2 3 2 2
3
10
7
9
11
7 6
15 15
16
5
-
3.0
6.0
9.0
12.0
15.0
18.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2Q

19. 695 731 723
810
860 892 905
1047 1072 1083
1270
2006 2007 2008 2009 2010 2011 2012 2013 2014-
1H
2016 2018
CAGR: 2006-2013: 5,6%
CAGR: 2013-2018: 4,3%
…
Source: UPME, ANH, Concentra
1 Mining and Energy Planning Unit. Reserves as 2012.
2 National Hydrocarbons Agency. Reserves as 2012.
Energy sources 2012
Growing Demand of Natural Gas Significant Availability of Natural Gas
 Reserves mostly located in the north and east regions of the
country
 Key fields (Ballena, Chuchupa, Cusiana and Cupiagua)
concentrate virtually all of the natural gas production
 Long distances between production and main consumption
areas
 Minimal gas storage capacity across the country
Total
Domestic
Demand
(mmcf/d)
Expected
2013A-2018E
Growth by
Sector
Natural Gas in Colombia: Increasing Demand and Vast Reserves
(0.0)%
0.8% 1.9%
17.0%
6.3%
13.2%
Petro-
chemical
Industrial Residential Power
Generation
NGV Refinery
19
Data from UPME as of 31-Dec-2012
Data from ANH as of 31-Dec-2013
11.7
6.4
RESERVES PER UPME RESERVES PER ANH
Proved Probable + possible Yet to Find Conventional Non Conventional
Organic
9,1%
Coal
9,8%
Natural
Gas
25,1%
Hydro
12,9%
Oil 43,2%
(Million Equivalent Oil Tons)

20. Regulatory framework established
to attract private sector investment
 Law 142 (1994) establishes system
of open entry to the natural gas
transportation sector
− No term limitation for the provision
of the service
− Assets used in the provision of the
service are not owned by the state
but by the company providing
such service
CREG required by law to seek input
from market participants
 CREG is an independent regulatory
body that controls natural gas
regulation
− Sets tariffs, promotes competition
and monitors quality of service
Tariff calculation based on the
principle of financial feasibility and
economic efficiency
 Tariffs are set in order to allow the
service provider to:
− Recover operational costs and
investments
− Obtain a return on investment
comparable to what an efficient
company would obtain in a sector
of similar risk
Cost recovery, attractive regulated
return on investment and
protection against inflation
 Transporters are given full recovery
of operating and maintenance
expenses
− Adjusted by Colombian Price
Index (CPI)
 Dollar indexation of investment
remuneration tariff
 Different rates of return applied
when determining fixed and variable
charges
Constructive and stable regulatory framework
Source: Company information.
The Colombian gas transportation regulatory framework was established to attract private
strategic investors and to provide adequate cost recovery and regulated returns

21. CREG RESOLUTIONS 083 AND 112 OF 2014
 Establishes regulations for natural gas
market.
 Definition of contractual arrangements
in the primary market.
 Definition of marketing mechanisms.
 Defines secondary market with its
respective regulations.
 The following reliability aspects in the
Decree have not yet been defined by the
Regulatory Commission:
 The CREG will establish the reliability
criteria which shall secure the demand
coverage and must set the rules for the
evaluation and remuneration of these
investment projects.
CREG RESOLUTION 047 OF 2014
Recent Regulatory Decisions
The regulatory framework for natural gas transportation in Colombia is in a stage
of important definitions. The main recent regulatory decisions are:
CREG RESOLUTION 089 OF 2013
21
DECREE 2100 OF 2011
 Establishes the principles that will be
considered in the next natural gas
transportation tariff update process.
 The resolution mentions the principles
that will be kept from the actual tariff
methodology.
 Remuneration based on contracts.
 Price cap methodology.
 It also mentions aspects that must be
evaluated.
 System expansion based on
government signals.
 Tariff calculation based on historical
demand and not projected.
 The resolution CREG 083 proposes the
methodology to determine the WACC for
regulated activities including gas
transportation.
 The resolution CREG 112, proposes the
value for the Beta Adjustment (Delta Beta
- Δβ) , which recognizes the difference
between the reference market in the USA
and the Colombian Regulatory
framework.
 Both resolutions were available for agents
comments’, and the final resolutions are
expected to be issued at the end of the
year.

22. Appendix 2 – Shareholders and management
team

23. 23
David Riaño
CEO
19  Electrical Engineer (Universidad de La Salle); Masters in Industrial Engineering
(Universidad de Los Andes); Masters in Economics (Pontificia Universidad Javeriana)
 Over 19 years of experience in technical and economic regulation of gas and electricity
sector (CREG, Colombian Electricity Generators Association, Superintendency of Energy
and Gas, Superintendency of Public Services)
 Former Regulatory Affairs Manager at TGI SA ESP
 CEO of TGI since October 2014
Antonio J.
Angarita
CFO
20
Officer Key highlightsYears of relevant experience
Experienced management team with solid track record in the sector
TGI is led by an experienced and seasoned management team
Carlos A. Torres
Vice-President of
Legal Affairs
20  Lawyer (Universidad de Los Andes); Business Law (Universidad de Los Andes)
 Over 20 years of experience in the Oil and Gas Industry
 Former General Counsel at Petrobras Colombia
 Degree in Civil Engineering and MBA from Universidad de los Andes (Bogotá)
 Over 20 years of experience in financial management in different industries, former IRO in
EEB, CFO in Bayport Colombia, Regional CFO in Amnet Central America (Tigo Home),
Financial Controller and Financial Planning Manager in Colombia Movil (Tigo), Head of
Financial Planning in ETB, Head of Management Control in Codensa and Advisor of the CFO
in EEB.
 TGI’s CFO since July 2014
Jorge Gonzalez
COO
20  Civil Engineer (Universidad de Los Andes); Specialization Studies in Finance (Universidad
de Los Andes)
 Over 17 years of experience in the natural gas industry
 Former NGV Manager at Gas Natural S.A.E.S.P.
Carlos Toledo
Vice-President for
Administration and
services
8
 Degree in Law from the Universidad UNICIENCIA.
 Degree in Electrical Engineering and specialization in telecommunications from Universidad
Industrial de Santander Master’s degree in Applied Political Studies from FIIAPP.
 Master in Social Cohesion from Universidad de Mendez Pelayo, España.
 Over 7 years serving the public and private sectors
 Vice-President for Administration and Public Relations since May 2012.

24. Appendix 3 – EEB Overview

25. EEB Strategy and Overview
Strategy
 Transportation and distribution
of energy
Key facts
 More than 100 years’ experience in the sector; founded in 1896.
 Regional leader in the energy sector; major player in the entire electricity
and natural gas value chains (except E&P); operations in Colombia,
Peru, and Guatemala.
 Largest stockholder is the District of Bogota - 76.2%.
 Stock listed on the Colombia stock exchange; EEB adheres to global
standards of corporate governance.
 The EEB Group is one of the largest issuers of equity and debt in
Colombia
USD Million 3Q 2014
Operating revenue 844.7
Operating profit 302.0
EBITDA LTM 974.5
Net Income 463.2
Consolidated - Covenants 3Q 2014
Leverage Ratio 2.33
Interest Coverage Ratio 10.22
Focus on
natural
monopolies
Ample access
to capital
markets
Ambitious
projects in
execution
Growth in
controlled
subsidiaries
Sound
regulatory
framework
Experienced
management
and partners

26. Disclaimer
This presentation contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements are only predictions and are not guarantees of future performance. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include, among other things,
statements concerning the potential exposure of TGI, its consolidated subsidiaries and related companies to market risks and
statements expressing management’ expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-
looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“intend”, “may”, “plan”, “objectives”, ”outlook”, “probably”, “project”, “will”, “seek”, “target”, “risks”, “goals”, “should” and
similar terms and phrases. Forward-looking statements are statements of future expectations that are based on management’s
current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in these statements. Although TGI believes that the
expectations and assumptions reflected in such forward-looking statements are reasonable based on information currently
available to TGI’s management, such expectations and assumptions are necessarily speculative and subject to substantial
uncertainty, and as a result, TGI cannot guarantee future results or events. TGI does not undertake any obligation to update any
forward-looking statement or other information to reflect events or circumstances occurring after the date of this presentation or
to reflect the occurrence of unanticipated events.