1
FINANCIAL STATEMENTS
EPM GROUP
Quarter I - 2011
Disclaimer
EPM prepared this document to provide stakeholders with information on the company’s
financial status.
This document may include discussions of strategy and statements about the likely
development of EPM’s business. They include information on the company’s estimates or
expectations for its future performance and operations. Potential investors and the market
in general should be aware that the information contained herein is not a guarantee of
performance or the risks and uncertainties that may occur or materialize. Actual results
may vary and differ from those provided herein due to several factors beyond the
company’s control. Neither EPM nor its advisors, officers, employees, directors or agents, or
representatives assume any responsibility for the company’s performance of actual events if
it differs from what is provided herein. In addition, EPM’s advisors, officers, employees,
directors or agents shall have no obligation to update, amend, modify or adjust this
presentation with facts that may occur after this communication.
This presentation is for discussion purposes only, and it should only be referenced
considering the verbal information provided by EPM; otherwise it would be incomplete.
Neither this presentation nor any of its contents may be used for any other purpose without
EPM’s prior written consent.
2
Agenda
Significant events during the quarter
Financial results
3
4
Significant events during the quarter
Significant events during the quarter
5
EPM signed with AEI the purchase, for US$200 million,
of 100% of two electricity businesses in Central
America: Panama Distribution Group (PDG), which
owned 51% of the shares of Elektra Noreste S.A.
(ENSA), and AEI El Salvador Holdings Ltd., which owns
86.41% of the shares of Distribuidora de Electricidad
del Sur (DELSUR).
Investments Overseas
Both markets add up to 680,000 customers and 3,600
GWh of energy demand per year.
The negotiation also included the controlling stock of
the following businesses incorporated to provide
services to the latter: Electricidad de Centroamérica
Ltda. of C.V. PPLG El Salvador II, and Innova
Tecnología y Negocios S. A. de C.V.
Significant events during the quarter
6
EPM placed bonds in the international capital market
for the second time amounting to $1 billion 250,000
million pesos (US $680 million), on a 10-year term
basis.
International Bond Issue
The issue was made under Rule 144A /Regulation S of
the Securities Act of 1933, in Colombian Pesos,
leveraging the sound financial conditions of the
international capital market, and hedging exchange
rate variations.
This operation consolidates EPM’s presence in the
international capital market after its successful debut
in July, 2009.
Significant events during the quarter
EPM Ituango
7
This past March 30th, the BOOMT agreement was
signed by and between Sociedad Hidroeléctrica
Ituango S.A. ESP and EPM Ituango S.A. ESP. In this
process EPM assumed the commitment to finance,
build, maintain, operate, commercially exploit and
return to Ituango, in a 50-year period, the soon-to-be
largest hydroelectric power station in Colombia, with a
capacity that surpasses 2,400 megawatts.
Hidroituango is in the north-west of Antioquia, in the
municipalities of Ituango and Briceño. The work,
which is currently being implemented, involves an
investment of US $5,508 million and will be
commissioned in 2018. The plant will be built in eight
years while the remaining 42 years correspond to the
operation period. This is the first time that Colombia
builds and operates an electric generation project
under a concession method.
8
Financial Results
Revenues
Figures in millions of US dollars
9
1,600
1,400
1,200
800
Energy
1,055
1,000
664
685
266
81
287
82
705
Telecom.
792
Water
600
400
200
259
86
287
89
289
87
0
1 Q 2010
2 Q 2010
3 Q 2010
4 Q2010
1 Q 2011
Accumulated as of March
During Q1-2011, net revenue climbed to US $1,431
million, a 42% increase compared to Q1-2010.
Growth per segments was: Energy 59%, Waters 10%,
Telecommunications 8%.
20%
Energy
Water
6%
Telecom.
74%
Average Exchange Rate (TRM): US$1 = $1,986.41 pesos - 2010, $1,896.72 pesos- 2011
Costs and Expenses
10
Figures in millions of US dollars
1,000
900
800
700
600
500
428
439
427
Energy
686
540
Telecom.
Water
400
300
200
100
189
42
211
38
187
45
214
50
194
47
0
1 Q 2010
2 Q 2010
3 Q 2010
4 Q 2010
1 Q 2011
Accumulated as of March
During Q4-2011, costs and expenses climbed to US
$926 million, displaying a 41% growth.
21%
Energy
Water
5%
Telecom.
74%
Average Exchange Rate (TRM): US$1 = $1,986.41 pesos - 2010, $1,896.72 pesos- 2011
EBITDA
11
Figures in millions os US dollars
600
500
Energy
400
300
369
237
246
278
76
39
75
44
72
40
252
75
37
Telecom.
Water
200
100
93
43
0
1 Q 2010
2 Q 2010
3 Q 2010
4 Q 2010
1 Q 2011
Accumulated as of March
During Q1-2011, the EBITDA climbed to USD $505
million, exhibiting a 35% margin.
The EBITDA increased by 43% compared to Q1-2011.
18%
Energy
9%
Water
Telecom.
73%
Average Exchange Rate (TRM): US$1 = $1,986.41 pesos - 2010, $1,896.72 pesos - 2011
Net Income
12
Figures in millions of US dollars
250
200
150
157
141
167
8
25
18
21
10
21
52
Telecom.
10
100
50
Energy
203
Water
91
17
19
0
1 Q 2010
2 Q 2010
3 Q 2010
4 Q 2010
1 Q 2011
Accumulated as of March
During Q1-2011, net income climbed to USD$239,
representing a 17% net margin.
8%
7%
Energy
Water
Growth of net income was 26% compared to Q1-2010.
Telecom.
85%
Average Exchange Rate (TRM): US$1 = $1,986.41 pesos - 2010, $1,896.72 pesos- 2011
Balance Sheet
13
Figures in millions of US dollars
Non-current Assets;
14,037
16,000
14,000
Equity;
9,837
12,000
10,000
5%
8,000
6,000
Current Assets;
2,971
4,000
2,000
2%
Long-term Liabilities;
4,909
18%
Current Liabilities;
1,742
19%
Minority;
520
2%
0
Assets
The assets of EPM Group totalled US$17,008 million,
representing a 27% increase compared to December,
2010.
Liabilities climbed to US$6,651 million, increasing 14%
compared to the year before..
16%
Energy
13%
Water
Telecom.
Equity climbed to US$9,837, increasing 2% compared to
the year before.
Average Exchange Rate (Year-end TRM): US$1 = $1,928.59 pesos – 2010, $1,879.47 pesos - 2011
71%
Indicators
Indicators
14
20 11
20 10
% Prev.
Year
EBITDA margin
35%
34%
0%
Operating margin
22%
21%
4%
Net earning margin
16%
17%
-3%
Liquidity
1.70
1.49
14%
Total indebtedness
39%
37%
7%
Financial indebtedness
23%
20 %
12%
Equity profitability
8%
8%
5%
Asset profitability
5%
5%
0%
EBITDA/ Financial expenses
8.13
12.0 1
-32%
Debt/ EBITDA
1.91
2.15
-11%