Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — Merger or Acquisition (August 2021)
11 slides from Ecopetrol Sa's merger presentation, Aug 12, 2021
Slide 1: Ecopetrol Signs Agreement to Acquire 51.4% of ISA
ECOPETROL SIGNS AGREEMENT TO ACQUIRE 51.4% OF ISA A Transformational Step towards a Competitive Energy Transition August 12, 2021 1
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Ecopetrol S.A. for the purpose of providing the market and other interested parties with certain financial and other information about the Company. This presentation contains forward-looking statements relating to the likely development of the Company's
Slide 3: Ecopetrol has captured a unique transformational opportunity
Ecopetrol has captured a unique transformational opportunity to become the leader of the energy transition in the Americas ENERGY IMPROVED RISK GROWTH TRANSITION PROFILE The leading network Successful growth track record Stable and predictable cash Regional presence infrastructure player in and attr
Slide 4: Transmission plays a key role in reliable renewable energy integration at scale
Transmission plays a key role in reliable renewable energy integration at scale TRANSMISSION COMPANIES ROLE IN THE ENERGY TRANSITION Attractive Global Investment Outlook in T&D* (USD Bn) 497 260 REGIONAL AND CLIMATE RENEWABLE ELECTRIFICATION RISK INTEGRATION • Migration towards a • Electrification o
Slide 5: Two years of rigorous analysis conclude in the transaction
Two years of rigorous analysis conclude in the transaction that is being announced today to the market FEB - JUL Energy transition STUDY and ANALYSIS AUG 11 diversification of diversification Due diligence Due diligence framework alternatives in the PROCESS PROCESS definition energy chain with publi
Slide 6: ISA provides a regional energy infrastructure platform
ISA provides a regional energy infrastructure platform unique in scale, profitability and growth prospects Market Share REGULATED BUSINESS, with stable earnings and margins, as well as 70% 20% attractive returns on equity transmission transmission Leading company in the 12% power transmission 73% tr
Slide 7: An Unprecedented Platform
AN UNPRECEDENTED PLATFORM LEADER IN THE REGION’S ENERGY TRANSITION + Scale and Growth Prospects Resilient Operating Model Operational Efficiency Competitiveness • Ecopetrol and ISA would continue • Integrated energy company with a strong • Some synergies could be achieved • Unique opportunity unmatc
Slide 8: Ecopetrol Group strengthens its ability to generate value that meets TESG criteria
Ecopetrol Group strengthens its ability to generate value that meets TESG* criteria SCALE AND MATERIALITY CONTRIBUTION ANALYSIS INCORPORATION OF STABLE CASH FLOWS WITHOUT REDUCING BRENT EXPOSURE Consolidated EBITDA** by Business Revenue Revenues 1T21 1Q21** COP 52.2 Bn 83% 17% COP 10.5 Bn 6% 2% 3% 1
Slide 9: Value accretive transaction to all Ecopetrol's Shareholders
Value accretive transaction to all Ecopetrol’s Shareholders PRICE DEFINITION SOLID INVESTMENT CASE • The agreed price per share is 25,000 pesos Expected returns >= 10% • The total purchase price for 51.4% of ISA’s shares is equivalent to COP 14,236,814 MM Pro forma EBITDA margin of 42% compared to 3
Slide 10: The plan to secure the value proposition is already in motion
The plan to secure the value proposition is already in motion Negotiation and Offer acceptance and LOAN EXECUTION OF SIGNATURE OF AGREEMENT TRANSACTION THE INTER- THE INTER- SIGNATURE* CLOSING up to ADMINISTRATIVE ADMINISTRATIVE and disbursement Dec. 6 share purchase agreement request agreement TRAN
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