Calidda’s Q3 2016 Results

November, 2016

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

4

Introduction and Perspectives

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

6

Significant Developments – Q3 2016

1/ Million cubic feet per day. 2/ Clients who are located in front of Calidda’s distribution network.

3/ Revenues exclude Pass-through and IFRIC 12 revenues. 4/ Last twelve months EBITDA. 5/ Last twelve months EBITDA & Adjusted Revenues.

Calidda’s client base has increased by 31% and the

invoiced volume has increased by 5% compared to

third quarter of 2015.

During the three first quarters of 2016, our network

length was enlarged by 1,168 km, whereby the

distribution system has reached a total of 7,157 km of

underground pipelines.

Total Revenues of Q3 YTD have increased 1%,

despite the reduction in natural gas prices. Total

Adjusted Revenues increased by 6% driven by higher

distribution services, mainly from Take-or-Pay

contracts and installations financing business.

The EBITDA and Adjusted EBITDA margin grew

mainly due to the higher income mentioned above

(higher demand of natural gas).

Financial Results ( YTD ) Q3 2016 Q3 2015 Var %

Total Revenues (USD MM): 398.8 394.8 1%

Total Adj. Revenues (USD MM) 3 : 155.2 146.6 6%

EBITDA (USD MM) 4 : 118.1 100.3 18%

Adjusted EBITDA Margin5 : 56.9% 52.0%

Interest Coverage (x) 7.5x 6.6x

Operational Results ( YTD ) Q3 2016 Q3 2015 Var %

Accumulated Clients: 416,954 317,387 31%

Invoiced Volume (MMCFD) 1 : 731 699 5%

Network Lenght (km): 7,157 5,557 29%

Potential Clients 2 : 725,845 563,021 29%

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

8

Commercial Performance Residential & Commercial Segment

Residential

Industrial

Natural gas pipeline

Main grid expansion

In the residential segment, Calidda has begun commercial operations in Lurín, attending household’s demand in 20 districts.

Until the third quarter of 2016, Calidda has connected 70,857 residential clients and 937 commercial clients.

On September, out of the 8,280 residential connections contracts signed, 6,286 were subsidized by the Bonogas program.

The Bonogas program was implemented by the government to further increase the use of natural gas, along with the Promotional Discount, and achieve the massification of Natural Gas service in Peru.

34,619 63,602

103,090

163,129

254,280

344,380

416,174

2010 2011 2012 2013 2014 2015 Q32016

9

Commercial Performance

Clients Segments Growth Highlights

Power Generation

Industrial

NGV Stations

16 new industrial plants were connected from 2015 to third quarter of 2016.

7 new NGV stations joined Calidda’s distribution system and 229,472 converted vehicles are attended in the cities of Lima and Callao.

A new cogeneration client was connected during Q3 2016.

11 13 13

16 16 17 18

2010 2011 2012 2013 2014 2015 Q32016

360 394

429 466 489 507 523

2010 2011 2012 2013 2014 2015 Q32016

143 172 192 206 220 232 239

103,712 126,586

151,781 171,541

197,154 212,252

229,472

0

50,000

100,000

150,000

200,000

250,000

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013 2014 2015 Q32016

NGV Stations Converted Vehicles

63.9%

71.6% 71.6%

72.5%

74.2% 74.5% 74.7% 75.2%

25.0%

19.2% 18.1%

17.2%

16.0% 15.5% 15.5%

15.0%

10.6%

8.8%

9.7%

9.6%

9.0% 8.9% 8.8%

8.6%

303

457

508

577

679 699 699

731

2010 2011 2012 2013 2014 2015 Q3 2015 Q3 2016

Residential &Commercial

NGV Stations

Industrial

Power Generation

10

Commercial Performance Invoiced Volume MMCFD

At Q3, the invoiced volume increased by 5% compared to the same period of 2015, mostly explained by higher

amounts of Take-or-Pay contracts with Power Generators.

As of September 2016, Take-or-Pay contracts amounted 576 MMCFD (541 MMCFD Power Generation + 35

MMCFD Industrial), 79% of the total invoiced volume.

1.3 1.9 2.9

3.9

5.8 7.5 7.2

9.3

2010 2011 2012 2013 2014 2015 Q32015

Q32016

76 88 92

99 109 108 108 109

2010 2011 2012 2013 2014 2015 Q32015

Q32016

11

Commercial Performance Invoiced Volume by Client Segment (MMCFD)

Generación Eléctrica

Industrial

NGV Stations

Residential & Commercial

32 40

49 56

61 62 61 63

2010 2011 2012 2013 2014 2015 Q32015

Q32016

193

327 364

418

504 521 522 550

2010 2011 2012 2013 2014 2015 Q32015

Q32016

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

13

Operational Performance

Distribution System Infrastructure

Network Efficiency

Over the first nine months of 2016, we have

increased our network penetration rate by

0.8%.

Calidda’s distribution system consists of 7,157 km of underground pipelines.

As of the third quarter 2016, Calidda has built 1,168 km, out of which 29 km were steel high pressure network, while the remaining 1,139 km were low pressure polyethylene pipelines.

303 359 387 408 428 458 487

1,020 1,465

2,163 2,996

4,249

5,531

6,670

1,324 1,824

2,550

3,404

4,678

5,988

7,157

-500

500

1,500

2,500

3,500

4,500

5,500

6,500

7,500

2010 2011 2012 2013 2014 2015 Q3 2016

km

Steel Network Polyethylene Network Total

35 64 104

164

255

345 417

126 174

244

331

466

609

726

28%

37% 42%

50%

55% 56.6%

57.4%

0%

10%

20%

30%

40%

50%

60%

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 Q32016Total Clients Potential Clients* Penetration Rate

(*) Clients who are adjacent to Cálidda's distribution network.

0

150

300

450

dic-14 mar-15 jun-15 sep-15 dic-15 mar-16 jun-16 sep-16

Regulated Clients

0

150

300

450

dic-14 mar-15 jun-15 sep-15 dic-15 mar-16 jun-16 sep-16

Regulated Clients Independent Clients

Calidda has enough Transport & Supply Capacity for

attending its Customers

Regulated clients: Calidda provides them with NG, transportation and distribution

services.

Independent clients: Customers who contract their own gas and transportation

services. Calidda only provides the distribution service.

Calidda's

City Gate

Calidda’s Capacity = 420MMCFD

Regulated Clients + Independent Clients

151MMCFD + 150MMCFD =301 MMCFD

Independent Clients

(Power Generators)

= 340 MMCFD

Calidda’s Capacity: 420 MMCFD

As of September 2016, Calidda’s distribution system capacity is 420MMCFD (from City Gate Lurín to Lima). Independent and regulated customers located down flow Lurin have nearly taken 301MMCFD, equivalent to 72% of our capacity.

Our Regulated Clients have consumed 151 MMCFD, equivalent to 72% of our Gas Transportation capacity (TGP) and 85% of our Gas Supply capacity (Pluspetrol).

Transport: 210 MMCFD

Gas: 178MMCFD

14

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

Even though residential & commercial segment represents only 1% of the invoiced volume, it explains 11% of the distribution revenues. If we add the revenues generated by our client connection business, this segment represents 35% of the Adjusted Revenues.

On the other hand, Power Generators represents 75% of the volume, 51% of the distribution revenues and 33% of the Adjusted Revenues.

In Q3 2016, other Revenues represent 7% of the Adjusted Revenues, mainly explained by income from pipeline’s relocation services.

11%

7%

33% 28%

7%

14%

16

Even though volumes are concentrated, revenues are

diversified Q3 2016 Invoiced

volume (MMCFD) Q3 2016 Adjusted

Revenues1

Q3 2016 Distribution

Revenues

1/ Total Adjusted Revenues exclude Pass-through and IFRIC 12 revenues.

2/ Installation Services Revenues include revenues from connection fees and financing.

3/ Others: mainly derived from network relocation and other non recurrent services.

75%

15%

8% 1%

51%

22%

16%

11%

2 3

35%

29

59 64

72

91

104

118

46.1%

57.6% 51.6% 49.3%

49.1% 52.1% 56.9%

2010 2011 2012 2013 2014 2015 Q32016EBITDA Adjusted EBITDA Margin

(*) Last Twelve Months.

17

Financial Performance Million US$

Total Revenues EBITDA* & Adj. EBITDA Margin (%)

Funds from Operations * (FFO)1 Debt & Net Debt2 / EBITDA *

1/ FFO = Net Profit + Depreciation + Amortization 2/ Net Debt = Debt – Cash Balance.

(*) Last Twelve Months.

64 103 125 146 186 199 147 155

125

201 245

315 326 342

248 244 188

304

370

461 512

541

395 399

2010 2011 2012 2013 2014 2015 Q32015

Q32016

Total Adjusted Revenues Pass-through & IFRIC 12

18

40 43

36

57 58

74

2010 2011 2012 2013 2014 2015 Q32016

3.9x

2.8x 3.0x

4.4x

3.5x 3.2x

2.9x

3.1x

2.3x 2.3x

3.0x

2.6x 2.6x 2.8x

2010 2011 2012 2013 2014 2015 Q32016Debt / EBITDA Net Debt / EBITDA

(*) Last Twelve Months.

18

Financial Performance

Million US$

Total Debt1 Debt / Capitalization2 (%)

Interest Coverage* FFO

* / Net Debt

1/ Total Debt : Debt net from financing costs.

67 119

149

318 318 335 346

47

47 47

114

166 196

318 318 335 346

2010 2011 2012 2013 2014 2015 Q32016Senior Debt Shareholders' Subordinated Debt

49.8%

54.1%

49.2%

56.6%

53.2%

54.8% 55.0%

2010 2011 2012 2013 2014 2015 Q32016

(*) Last twelve months. (*) Last twelve months.

2/ Capitalization: Debt + Equity.

20.2%

28.9% 28.3%

16.8%

23.9% 21.8%

22.8%

2010 2011 2012 2013 2014 2015 Q32016

3.8x

5.8x 5.5x 5.6x

6.3x 6.8x

7.5x

2010 2011 2012 2013 2014 2015 Q32016

115 141

202

244

280 276 283

2010 2011 2012 2013 2014 2015 Q32016

19

Financial Performance

Million US$

Total Assets Equity

Net Income

CapEx

Dividends +

Capital reduction:

$37MM

Dividends +

Capital reduction:

$36MM

289

383

492

648 696

735 742

2010 2011 2012 2013 2014 2015 Q32016

10

26 27

17

35 34

43

2010 2011 2012 2013 2014 2015 Q32016

50 32

63

92 83 85

65

53

33

5

50

85

96 98

83 85

2010 2011 2012 2013 2014 2015 Q32016

Secondary Network Main Network

65

Table of Contents

I. Introduction and Perspectives

II. Significant Developments

III. Commercial Performance

IV. Operational Performance

V. Financial Performance and Key Metrics

VI. Conclusions

21

Conclusions

22

Q&A

Para uso restringido Calidda S.A. ESP. Todos los derechos reservados. Ninguna parte de esta presentación puede ser reproducida o utilizada

en ninguna forma o por ningún medio sin permiso explícito de Cálida S.A ESP.