Annual Report 2017 2 Informe De Gestión Informe Odinsa Anual Report 2017 3

Annual Report 2017 2 Informe de Gestión Informe Odinsa Anual Report 2017 3

CONTENTS Odinsa in 2017 4 Balanced Progress Biodiversity 58 Letter from the Chairman 5 Water 62 Waste and Effluents 66 About Odinsa 6 Energy and Carbon Emissions 70 About our Concessions 8 Road Safety 72 Occupational The best option Health and Safet 76 Management Report 18 Corporate Governance 34 Our Legacy Ethics and Transparency 42 Innovation 82 Risk Management 44 Supplier Management 84 Sustainability 48 Community Relationship 88 Always Learning User Satisfaction 92 Talent Management 52 Consolidated Financial Statement 98

Separate Financial Statements 108

ABOUT THIS REPORT Odinsa presents its stakeholders the 2017 An- tiative, in accordance with the “Core” option nual Report (102-50) corresponding to the period indicated in said guide. The indicators related between January 1st, 2017 and December 31st, to this methodology are identified in parenthe- 2017 (102-52). This report is published annually. ses. The digital version, with the GRI indicator It describes the manner in which the organi- table, can be found on Odinsa’s official site, zation creates value for its stakeholders and for www.odinsa.com. the company through the management of relevant Values are expressed in Colombian pesos, topics. This report includes the results obtained unless otherwise indicated. through the exercise of materiality in 2017. (102-53) If you wish to obtain additional in- (102-45) The information reported herein co- formation or if you have questions, suggestions rresponds to Odinsa and contains the numbers or opinions related to this report, you may con- related to the performance of the road and airport tact Laura Correa Saldarriaga, our Sustainabili- concessions of the company. The scope is des- ty Director, at [email protected]. cribed in each of the reported indicators. (102-54) This publication was prepared under the standards of the Global Reporting Ini- 4

ODINSA IN 2017 In 2017, Odinsa’s strategic and organizational transformation became a reality. DECEMBER

Informe de Gestión Informe OCTOBER

Grupo Argos JUNE JULY Odinsa placed ordinary bonds JANUARY closed the year ODINSA in the public securities market worth COP 400,000 million and with a sharehol- Grupo Argos Odinsa finalized its Fitch Ratings achieved a 2.3-fold demand. ding in Odinsa of started the year disinvestment affirms the “AA- The General Shareholders 94.75%. with a sharehol- in the energy sector (col)” Meeting authorized the voluntary ding in Odinsa of by selling Genpac rating of the cancellation of the registration 98.55%. in Chile. ordinary bonds of ordinary Odinsa S.A. sha- A purchase agree- Issued by res in the National Registry of ment was signed for Odinsa S.A. Securities and Issuers (RNVE for the Santa Marta - its Spanish acronym) and in the Paraguachón Colombian Stock Exchange (BVC concession. for its Spanish acronym).

MARCH OCTOBER DECEMBER JANUARY SEPTEMBER ROAD Autopistas del CONCESSIONS The first Conexión Pacífico disbursement for Café put the La The 2 completed the The entire dual the funding of the Paz relief road infrastructure rehabilitation of carriageway be- Conexión Pacífico 2 Into operation. projects 54 kms of road tween the airport project included between La Pinta- and Pos-Chiquito was received, for in Addendum da and Primavera, roundabout became USD 250 million No. 6 of Malla becoming the first operational. and COP 510,000 Vial del Meta functional unit of With this, the exe- million. were started. the 4G projects cution of the Green that was finished. Corridor reached 98%. DECEMBER SEPTEMBER

FEBRUARY MARCH The expansion of AIRPORT MAY Airports Council El Dorado Airport CONCESSIONS International is completed. To- Six new El Dorado is El Dorado is granted Mariscal day, the terminal contact chosen by Skytrax recognized as Sucre Airport has 223,700 m² positions are as the best airport the first airport the carbon and has the ca- completed for in South America, in Colombia footprint certifi- pacity to mobilize the central and Mariscal Sucre to receive the cation 40M passengers platform of El as the best regio- carbon footprint (reduction level). per year. Dorado Airport. nal airport in South (mapping level) America. accreditation from Airports Council Interna- tional. Odinsa Anual Report 2017 5

During 2017, we not only made significant progress in all concessions handled by the company, but we also developed an ambitious admi- LETTER nistrative strengthening process in all areas of FROM THE the organization, which included the creation of the office of the Vice President of Airport Con- CHAIRMAN cessions. This will allow us to manage the challenges and opportunities in this sector, which are increasingly relevant, with a higher degree of specialization.

(102-14) Dear shareholders, Similarly, the issue of ordinary bonds worth COP 400 billion that took place in October with a 2.3- As we come to the end of 2017, we can make a fold demand ratifies the confidence of investors more than satisfactory balance of Odinsa’s per- in our company, and has left Odinsa in a very formance, both in terms of economic results and adequate financial position to continue to meet the work carried out by a strengthened team of co- the demands of the country’s competitiveness llaborators that has been implementing the best and infrastructure sector. practices in the industry. Grupo Argos is becoming increasingly clear about the strategic role the con- One year ago, we were planning to strengthen cessions business will play in its development. the foundations to solidify the company. Today, thanks to the disciplined and committed work of At a time when the concessions industry is facing Odinsa’s team, whom I would like to acknowle- corruption allegations in Colombia, and in the re- dge and congratulate, we can say that our path gion in general, we firmly believe that the principles has been defined and Odinsa is in perfect shape of ethics and transparency, corporate governance to adequately manage our current projects and and sustainability, as well as the synergy achieved to continue to find new opportunities to create within the organization have allowed and will con- value for our shareholders and to be motors for tinue to allow Odinsa to accomplish immediate re- progress in the different territories. sults to ensure long-term sustainability.

The simplification of Odinsa’s portfolio, started during the previous year, was successfully completed during 2017, when we also consolidated a high-value road and airport concessions platform in markets with very good growth expectations.

Thus, the company’s current portfolio helps to strengthen our strategic and financial position in order to continue on the path towards future growth and to becoming an attractive vehicle for international investment with a balanced portfolio that includes projects in structuring, construction, and operational stages with very positi- Jorge Mario Velásquez ve development prospects. Chairman 6

ODINSA Dominican Republic Autopistas del Nordeste (102-2) Odinsa, a subsidiary of Grupo Argos, is a Boulevard Turístico del Atlántico business dedicated mainly to the structuring, promotion, management, and development of road Aruba and airport infrastructure projects. Due to the Green Corridor relevance of the industry in which it operates, it has become one of the pillars of growth for Grupo

Informe de Gestión Informe Argos in the coming years. In 2017, the company completed the stra- Colombia El Dorado International Airport tegic focus process that was set out in 2016 Autopistas del Café through the sale of assets in sectors other than Malla Vial del Meta road and airport concessions. This process included the consolidation of some assets it did not Ecuador control, which allowed the company to achieve a Mariscal Sucre healthy balance between projects in structuring, International Airport construction, and operational stages. It also Road Concessions Airport Concessions allowed the company to strengthen its long-term strategic and financial position. This process was (102-4) (102-6) evidenced in 2017 by the disinvestment of the Map of Latin Gena and Genpac power plants and the Santa Marta-Paraguachón concession, in which the company held a minority stake. The human and technical quality of the Odinsa Also, the diversification of its investments and team, its responsible practices, its high corpora- geographies coupled with a broad portfolio that inte governance standards, and its commitment to cludes mature businesses and new projects with sustainability are the foundations for the creation a high potential for development guarantee the of value and they give the company a competitive solidity of the investment. advantage that has enabled it to position itself During an extraordinary meeting held in No- as one of the most important companies in the vember, the General Shareholders Meeting vo- infrastructure industry, both in Colombia and in ted unanimously, with a vote from 99.7% of the Latin America. company’s total outstanding shares, to authorize the voluntary cancellation of the registration of irort onessions ordinary Odinsa S.A. Shares in the National Re- gistry of Securities and Issuers (RNVE) and the 983,5 Colombian Stock Exchange (BVC). This process by kilometers have been Grupo Argos to consolidate Odinsa’s property has concessioned. been perceived in a positive manner by the market thanks to the company’s incorporation of better 27,6 corporate governance practices. millon (102-7) Despite the decision to cancel the re- vehicles circulated on concessioned roads in 2017. gistration of its shares, Odinsa continues to participate actively in the Colombian securities market. irort onessions In October, the company placed ordinary bonds 36 millon worth COP 400 billion on the market, which recei- travelers. ved a 2.32-fold demand and were placed at very favorable conditions, mainly on the retail market. 377.907 The Colombian Stock Exchange (BVC), awar- airport operations. ded Odinsa for the fifth year in a row a recognition for adopting best practices related to information 922.721 disclosure and investor relationships. tons of cargo. Odinsa Anual Report 2017 7

CORPORATE STRUCTURE

GRUPO ARGOS SATOR

100 % 94,75 % 4,85 % ODINSA S.A.

85 % 89,65 %

ODINSA HOLDING 15 % ODINSA SERVICIOS 10,01 % ODINSA PI

78,85% 51 % 59,67 % 50 % 35 % Constructora Autopistas El Dorado La Pintada Concesión Víal de Bogotá Phase III del Café Concession Airport - OPAIN Concession los Llanos S.A. - CONFASE

Road Road Road concession Contract for Airport concession concession Stage: public works: concession Stage: Stage: Stage: Operation Maintenance Construction Work started Work started and maintenance Location: Location: Location: Location: Location: Bogotá D.C Bogotá D.C An oquia Meta Caldas, Quindío & Risaralda 1%

GRUPO ARGOS SATOR

94,75 % 4,85 % ODINSA

100 % 100 % Marjoram Riverside Company ODINSA HOLDING Investment Vehicle Investment Vehicle 50 %

Quiport Holding

Investment Vehicle 67,31 66,50% 100% 75 % Autopistas Boulevar Turís co Aruba Green del Nordeste del Atlán co Corridor Corporación Quiport S.A.

Road concession Road concession Road concession Airport concession Stage: Stage: Stage: Mariscal Sucre Operation and Operation and Construction Airport Stage: maintenance maintenance Location: Operation and Location: Location: Aruba maintenance Dominican Republic Dominican Republic Location: Ecuador

0,01% 1% 8

Bogotá, Colombia El Dorado International Airport (102-2)(102-6)(102-7) Informe de Gestión Informe Operated by: Opain S.A.

35% Share Equity of Odinsa

Opain is the concessionaire responsible for the administrations, operation, commercial exploitation, maintenance, moderni- zation, and expansion of Colombia’s most important airport: El Dorado Interna- tional Airport in Bogotá, which handles nearly 65% of air traffic in the country and is the main connec- tion hub with 46 international destinations.

VALIDIT FINANCIAL RESULTS PASSENGERS -3% Millions of passengers 2017 31.0 2027 2016 30.9

Variation 9.8

DIRECT EMPLOYEES 6% 10.4 BY GENDER 1,091,192 1,061,934 -35% 21.3 20.6 265,121 280,943 35.22%

218 women 63,983 41,898 64.78% Operating Ebitda Net Profits 401 men Revenue* 2016 2017 *(operation and exploitation of the airport) National International - Total Figures in COP millions

HECHOS RELEVANTES 2017 • The expansion of the domestic and • Value of expansion projects: international terminals was inaugurated, COP 420,000 million. with a new area of 48,000 m2 and an • New airlines in 2017: Wingo, Air Europa increased capacity to handle 40 million and Turkish Airlines. Over passengers per year. The constructed • The purchase of 30% by Grupo Argos was 30 area of the terminal is now 223,700 m2. perfect during the first quarter of 2017. aerolines • Third airport in Latin America in terms of in operation number of passengers and first airport in the region in terms of cargo. Odinsa Anual Report 2017 9

Quito, Ecuador Mariscal Sucre International Airport (102-2) (102-6) (102-7)

Operated By: Corporación Quiport S.A.

50% Share Equity of Odinsa

Corporación Quiport is the concessionaire responsible for the construction, administration, operation, and maintenance of Mariscal Sucre International Airport in the city of Quito, which connects 11 destinations in Ecuador and 16 international ones. It was designed with a flexible structure on the runways and on the passenger and cargo terminals that allow it to adapt to growth.

VALIDITY FINANCIAL RESULTS TRAFFIC 0% Millions of passengers 2017 4.9 4.9 2016 2041 -1% 2.1 Variation 2.7 DIRECT EMPLOYEES 147.2 147.0 BY GENDER

107.0 106.3 9% 2.7 2.2 55.6 45.37% 50.9 49 women 54.63% Operating Ebitda Net Profits 59 men Revenue* 2016 2017 *(Operation and exploitation of the airport) National International - Total Figures in USD millions

Best RELEVANT FACTS 2017 stars on Best Airport Regional Staff in South • The expansion and renovation of the International VIP lounge Skytrax in Airport America was inaugurated on November 20th. It went from 750 m2 to 2015, 2016 in South 1,135 m2 and offers new standards of quality and service. and 2017. according to • It received a Level 2- Reduction certification from the America Skytrax. Carbon Footprint Accreditation Program of Airports Leading airport in South America according to the World Travel Awards. Council International. 10

Antioquia, Colombia Conexión Pacífico 2 (102-2) (102-6) (102-7)

Operated by: Concesión La Pintada Informe de Gestión Informe

78.85% Share Equity of Odinsa

Concesión La Pintada is responsible for the Conexión Pacífico 2 project, which includes the construction, maintenance, and operation of the new road between La Pintada and Bolombolo, and the rehabilitation, maintenance, and operation of the La Pintada-Primavera road in Antio- quia. It is part of the first group of fourth-generation road concessions in Colombia. Together with Pacífico 1 and 3, it will connect the north of the country with Antioquia, the coffee-growing region, Valle del Cauca, and the Colombian Pacific coast. As of December 2017, the LOCATIONS HECHOS RELEVANTES 2017 project’s general progress was at • Quinto proyecto del programa 4G 30%. It is worth highlighting the Medellín en haber logrado desembolsos delivery of the first functional unit bajo sus contratos de crédito. of the 4G projects. • Durante el 2017 se logró el Primavera primer desembolso de la finan- LENGTH Bolombolo ciación estructurada bajo la modalidad de Project Finance. Santa Bárbara 98 km • 100% de las licencias ambienta- La Pintada-Primavera: 54 km les aprobadas. Rehabilitation and maintenance La Pintada • Avance de la obra: 30% La Pintada-Bolombolo: 44 km under construction VALIDITY FINANCIAL RESULTS Figures in COP millions TRAFFIC 112% Millions of vehicles 2045 2017 DIRECT EMPLOYEES 2016 BY GENDER Variation 277,984 186% 2.5

11.08% 2.3 172 women 27,684 -628% 130,867 88.92% 9,677 1,380 men Operating Ebitda Revenue -3,133 -16,541 Net Profits 2016 2017

Odinsa Anual Report 2017 11

Coffee-Growing Region, Colombia Autopistas del Café (102-2) (102-6) (102-7)

Operated by: Autopistas del Café

59,67% Share Equity of Odinsa

This road concession is responsible for the design, construction, operation, and maintenance of concessioned roads and for the collection of tolls for the Arme- nia-Pereira-Manizales Road Development in the coffee-growing region of Colombia. It consists of 270 kilometers of roads on a corridor that connects the departments LOCATIONS RELEVANT FACTS 2017 of Risaralda, Quindío, Manizales • Completion and operation Caldas, and the north Chinchiná of La Paz relief road, which of Valle del Cauca. Santa Rosa de Cabal is part of the Adaptation Fund projects, with an investment El Pollo Pereira LENGHT of over COP 31,500 million. Intersección • First -generation concession with 270 km Armenia Calarcá a rating of 4.59 out of 5 in the assessment of the status index VALIDITY La Española of the concessioned roads. La Paila

FINANCIAL RESULTS TRAFFIC 2027 Figures in COP millions Millions of vehicles 0% 2017 DIRECT EMPLOYEES 2016 BY GENDER 29% Variation -38% 201,416 202,031

10% 80,351 19 women 12.7 62,491 41,798 12.5

90% 26,012 170 men

Operating Ebitda Net Profits Revenue 2016 2017 12

Meta, Colombia Malla Vial del Meta (102-2) (102-6)(102-7)

Operated by: Informe de Gestión Informe Concesión Vial de Los Llanos

51% Share Equity of Odinsa

The corporate purpose of this concession is to carry out studies and designs, as well as the funding, construction, operation, maintenance, and social, property and environmental management in the plains region of the department of Meta. It includes the Granada - Villavicencio - Puerto López - Puerto Gaitán - Puente Arimena corridor as well as the Villavicencio road ring and other access roads LOCATIONS to the city. The contract is in the pre-operational stage in the pre-construction stage, Bogotá Puente Arimena and some operating services Puerto Gaitán are already being provided. Puerto López Villavicencio LENGHT 354 km Acacías Granada VALIDITY FINANCIAL RESULTS TRAFFIC Figures in COP millions Millions of vehicles 2043 91% 2017 DIRECT EMPLOYEES 2016 BY GENDER Variation 82,608 -207% --95% 6.7 38% 6.6 75 men 43,359 1,907 1,665 62% 93 122 women Operating Net Profits Revenue -1,782 Ebitda 2016 2017 Odinsa Anual Report 2017 13

San Nicolás, Aruba Green Corridor (102-2) (102-6) (102-7)

Operated by: Caribbean Infrastructure Company (CIC)

100% Share Equity of Odinsa

Caribbean Infrastruc- ture Company (CIC) is a contractor of the government of Aruba for a project that includes the design, construction, funding, and maintenance of the group of roads called the Green Corridor in the southeast of the island. LENGHT 31 km Construcción: 8 km FINANCIAL RESULTS LOCATIONS Rehabilitación Figures in COP millions y mantenimiento: 23 km -17% 2017 VALIDITY 2016 November Variation

88,676 225% 2035 73,978 498% 15,070

DIRECT EMPLOYEES 4,635 BY GENDER 1,556 Operating Ebitda

Revenue - 391 Net Profits

20% RELEVANT FACTS 2017 Airport Reina Beatrix 9 women Barcadera • In 2017, the dual carriageway from Queen 80% Beatrix International Airport to Poschiquito Spanish Lagoon 36 men was put into operation, which reduced travel Savaneta time from 20 minutes to 5 minutes. • The overall progress is 97%. The only San Nicolas aspects left to complete are signage, bicycle paths, and landscaping. 14

Samaná, Dominican Republic Boulevard Turístico del Atlántico (102-2) (102-6) (102-7)

Informe de Gestión Informe Operated by: Boulevard Turístico del Atlántico

66.50% Share Equity of Odinsa

This concession is responsible for the development, construction, rehabilitation, operation, and maintenance of the Nagua - Sánchez - Samaná - El Limón - Las Terrenas road network. The operation impacts the entire Samaná peninsula, an important tourist spot in the coun- LOCATIONS try, and has reduced travel time between Santo Domingo and Las Terrenas by approxima- Nagua tely 105 minutes. El Limón LENGHT Sánchez 123.5 km Samaná Construction: 18.7 km Rehabilitation and maintenance: 104.8 km VALIDITY FINANCIAL RESULTS TRAFFIC Figures in COP millions Millions of vehicles -75% 2038 26% DIRECT EMPLOYEES 27%

BY GENDER 144,821 1.4 1.3 107,017 86,419 36,550 36% 84,919 15 men 68,142 65% 27 women Operating Ebitda Net Profits Revenue 2016 2017 2017 2016 Variation Odinsa Anual Report 2017 15

Samaná, Dominican Republic Autopistas del Nordeste (102-2) (102-6) (107-7)

Operated by: Autopistas del Nordeste

67.31% Share Equity of Odinsa

The main goal of the concession is the construction of the Santo Domingo - Curce Rincón de Molini- llos road. The operation and maintenance phase began in 2008. The road connects Santo Domingo and the northeast region of the Province of Samaná. It crosses the country from south to north and connects to Boulevard Turístico del At- lántico. The route between LOCATIONS Santo Domingo and the Samaná peninsula was re- Cruce Rincón Samaná duced from 220 km to 120 de Molinillo km, and the travel time from Majagual 4 hours to 90 minutes. LENGHT Hato Mayor 107 km Naranjal Higuey Santo Domingo Marbella VALIDITY FINANCIAL RESULTS TRAFFIC 2038 Figures in COP millions Millions of vehicles 2017 87% 435% DIRECT EMPLOYEES 2016 BY GENDER Variation

418% 148,031 3.9 147,083 3.7 35%

32 men 27,669 78,567 76,665

65% -24,143 60 women Operating Ebitda Revenue Net Profits 2016 2017 16 Odinsa Anual Report 2017 17

THE BEST OPTION

We are efficient and profitable

El Dorado Airport

OUTLOOK The global economic outlook was very different in 2017 than it was the previous year. This was the consequence of a better performance from

Informe de Gestión Informe developed countries and emerging markets. Latin America was part of this shared accelera- tion on a global scale, and it is now in recovery

The Best Option after two years of negative growth, although it

Somos la mejor opción is still a slow process. Despite the fact that the price of oil has fallen by more than 50% over the last three years, the region has begun to grown again, partly due to the fact that the prices of exported raw materials have improved. 2017 was a challenging year for the economy in the region and, in particular, for the infrastructure and concessions sector. Inflationary pheno- mena, high interest rates, increased taxes, dece- leration of consumption -- which has been going on since 2015 -- and a weakened domestic demand have all marked the outlook in Colombia. The infrastructure sector, both in the country and in the continent, is facing serious questions related to corruption. Distrust by both the public and authorities gave way to uncertainty regarding the rules of the game applicable to third parties of good faith in concession agreements, which hindered the progress of financial closure for projects. In Colombia, during the second half of the year, the Avianca strike had an impact on the general economy and the performance of El Dorado Airport. In the Dominican Republic, the hurricane season had an impact on vehicle mobilization figures. In Ecuador, the domestic tax situation affected the transit of domestic passengers. The outlook for 2018 in the region is encou- raging, however. The Dominican Republic will maintain a high growth thanks to solid domestic consumption and increased tourism. Growth is also expected to increase in Colombia precisely MANAGEMENT REPORT because of higher spending on infrastructure and low inflation, while moderate growth is predicted Dear shareholders and stakeholders: in Ecuador due to low oil prices. Aruba, for its It is with great satisfaction that we present to part, will continue to be a commercial gate be- you the work done by Odinsa in 2017, a cha- tween Latin America and Europe, characterized llenging year during which we obtained good by its economic stability and vigorous tourism. results. One of the highlights of this year was the launch of a new strategy that will allow us to undertake a path over the coming years with a clear horizon that will enable us to move forward and strengthen everything we have accomplished so far.

Odinsa Anual Report 2017 19

THE COMPANY It is a great satisfaction to present a positive After approval from the Financial Superin- result for Odinsa, as we were able to mitigate tendency, the period for receiving accep- the impact of the aforementioned factors on tances was opened and the delisting of the the results of the company’s asset portfolio. company’s shares on the public securities The first aspect worth highlighting market will take place in 2018. is the completion of the strategic orien- However, we continue to participate acti- tation process we began in 2016, and vely in the securities market with the bonds which led to the determination of two foci issued in 2008 valued at COP 79,000 mi- of investment: road and airport conces- llion and which mature in December 2018. sions, in which the company currently has These complement the successful issue a controlling interest. of ordinary bonds valued at COP 400,000 (102-10) Over the last two years, we million, placed in October 2017 and which have been carrying out this process which had a 2.32-fold demand. has led us to disinvest in businesses such as energy (including the sale of the Gena and Genpac power plants, in Panama and La emisión de bonos tuvo una Chile, respectively) and in concessions such as the Santa Marta - Paraguachón demanda de 2,32 veces el monto road, in which we had no control. Conver- sely, we have increased our investments ofrecido, lo que confirma in concessions we consider strategic and that, under our control, benefit from the la confianza del mercado criteria of efficiency, sustainability, and corporate governance. en la estrategia de Odinsa. After this exercise in redefinition, we have consolidated Odinsa as a strategic business of Grupo Argos dedicated to road and airport concessions with a healthy balance between projects in stages of Thus, we became the first issuers in the structuring, construction, and operation. actual sector to enter the market with a This diversified portfolio, which inclu- AA- rating in the last 10 years. This pla- des mature businesses and new projects cement confirms the confidence investors with a high potential for development, have in our company due to the potential allows us to have a strategic and financial of the industry in which it operates, the position that will be strengthened over support it receives from Grupo Argos, the the long term, and to guarantee the crea- good corporate governance practices we tion of value for our shareholders. have implemented, and the results shared As a consequence of the consolidation with our stakeholders. of the company’s share ownership, during The Colombian Stock Exchange (BVC), an extraordinary meeting of the General awarded us for the fifth year in a row a re- Shareholders Meeting held this past Octo- cognition for adopting best practices rela- ber 30th, it was decided unanimously, with ted to information disclosure and investor a vote from 99.7% of the company’s total relationships. outstanding shares, to cancel registration As a result of the strategic reorientation of ordinary Odinsa S.A. Shares in the Na- exercise, we strengthened our organizatio- tional Registry of Securities and Issuers nal culture with the definition of four values: (RNVE) and the Colombian Stock Exchange we make progress in terms of balance, we (BVC). In order to do this, a takeover bid are always learning, we are the best option, was previously promoted. and we make our mark. 20 Informe de Gestión Informe The Best Option MILLION In consolidated revenues. The Ebitda margin was 63%.

ACHIEVEMENTS 2017 was a key year for the reorganization, sources will be used to substitute financial consolidation, and execution of our long-term liabilities and meet capital commitments strategic focus on road and airport conces- agreed upon for the development of pro- sions. This allowed us to concentrate our in- jects. The above is part of the strategy to vestments on controlled assets to deploy our manage the company’s financial debts, ai- competitive advantages and generate a grea- med at optimizing the duration and financial ter capture of value. cost structure. We are excited to have closed this year • We launched our User Experience School with with milestones and achievements that ratify which we continue to strengthen our custo- our work, drive the results of our concessions, mer service practices for roads and airports. and demonstrate the confidence of the market • The transaction with which Grupo Argos in our company. Among these achievements, increased its participation in our company we would like to highlight the following: caused the New York-based publication LatinFinance to give it the award for the • For the first time, international entities such best local merger and acquisition opera- as CDPQ Revenu Fixe (division of Caisse tion in Latin America. de Dépôt et Placement du Québec), Banco • We strengthened our structure with the Santander, and ING have made forays into fi- creation of strategic departments such nancing 4G road projects in Colombia, such as the office of the Vice President of as with our Conexión Pacífico 2 concession. Airport Concessions, the department of This solidifies the confidence of foreign in- Project Structure Management, and the vestment in the country. divisions of Compliance and Sustainabi- • We issued ordinary bonds on the local secu- lity, among others, which will help propel rities market and we received a demand that the achievement of our goals. exceeded COP 927,645 million, equivalent • As part of Grupo Argos, we aligned our to 2.32 times the offered amount (400,000 Good Governance Policy and our Code of million). The massive participation, both from Ethics with tools such as the Transparen- individual and institutional investors, shows cy Line, the Declaration of Conflict of Inte- support for the company and its long-term rests, and the Audit, Internal Control, and strategic vision, as well as interest in the Risk systems, which enable us to continue infrastructure sector in Colombia. These re- to strengthen our corporate governance. Odinsa Anual Report 2017 21

As part of our strategic redefinition, we established four values as being Colaboradores Odinsa pillars of Odinsa culture. 22

AIRPORT CONCESSION ROAD CONCESSION ACHIEVEMENTS ACHIEVEMENTS

• In December we inaugurated the expansion of • Pacífico 2 achieved the first disbursement of fun- the domestic and international terminals at El ding structured under the Project Finance mode.

Informe de Gestión Informe Dorado in Bogotá, a 48,000 m2 project that The total value of the funding, approximately represented an investment of COP 420,000 COP 1.3 trillion, was obtained through a loan of million and increased the airport’s capacity. USD 250 million and a loan of COP 510,000 mi-

The Best Option It also added six boarding bridges, three VIP llion. It is worth noting the 30% progress in the lounges, and over 25,000 m2 of new commer- execution of the infrastructure projects, which cial areas that permitted the inclusion of nearly represents an investment of approximately COP 30 brands. With this expansion, El Dorado now 368,000 million by the end of 2017. has a total approximate area of 224,000 m2 in • Significant progress was made on Green Corri- the passenger terminal. dor, in Aruba, marked by the inauguration of the • El Dorado International Airport was recogni- Spaans Lagoen Bridge, a 92-meter-long arched zed, for the second consecutive year, as the bridge built over the Spanish Lagoon. It achie- best in South America by Skytrax’s World Air- ved a balance between the deployment of road port Awards, with a rating of four stars and infrastructure and the sustainable conservation ranked at number 42 in the Top 100 Airports. of the mangrove ecosystem in the area. • In line with our corporate commitment to sustainability, El Dorado was the first airport in These achievements enabled us to continue to Colombia to receive the Level 1 - Mapping position ourselves as a solid and sustainable Carbon Footprint Accreditation from Airports company that participates in high-impact strategic Council International - Latin America & Carib- projects with a clear strategy applied with discipline. bean (ACI-LAC). They also strengthened confidence from our • Mariscal Sucre International Airport, from Qui- stakeholders, created value, and consolidated us as to, obtained three important recognitions from a benchmark in the (road and airport) infrastructure Skytrax: Best Regional Airport in South Ameri- industry, both domestically and internationally. ca for the second consecutive year and Best Airport Staff in South America, awarded at the 2017 World Airport Awards. It also maintained its four-star (out of five) rating due to the quality of its service. Odinsa Anual Report 2017 23

RESULTS Financially, it is worth highlighting the con- 144,006. These figures are 10%, 61%, and 7%, solidation of the company’s assets and the respectively, higher than the figures from the pre- solidity of the concessions we operate, which vious year, excluding non-recurring income and di- handle high levels of traffic from vehicles, air- sinvestments. For the company, which is current- craft, cargo, and passengers. ly investing in construction assets, it is important Due to the thorough refinement we under- to keep a strict control on debt. The consolidated took in 2016, results were boosted in an ex- financial debt increased by COP 17,000 million, traordinary manner, while they were recurrent reaching a total of COP 2.37 trillion. Most of this in 2017 and, of course, they do not include debt is under the project finance modality, which the consolidation of the income from these has no recourses against Odinsa. assets, which is why the figures are not com- Regarding financing, the issue of ordinary parable. In order to facilitate the comparison, bonds was made in three and five year tran- the reported figures are taken and the non-re- ches, awarded at cutoff at 7.49% fixed rate and current income and the disinvestments that a CPI of +3.98%. This issue allowed us to re- have been made are excluded. duce funding costs by nearly 170 basis points, The company reported an Ebitda margin of increase the average life of the debt by close 63%, revenues of COP 813,083 million, an Ebitda to 1.5 years, obtain greater flexibility to focus of COP 515,292 million, and net profits of COP on the growth strategy and free up credit limits.

10% 2017 61% (∆+20p.p.) 2016 30% - Variation -9% (MargIn) (63%) 7% (∆+6p.p.) (43%) 18% 24% Revenue Costs, expenses Operating Ebitda Net Net margin and other profit controlling revenues profits

Autopistas del Café The Best OptionInforme de Gestión 24 pond toOdinsa’s issue. which COP 400,000 million corres placement ofCOP10trillion, outof withthe had agoodperformance at anaverage of9,038. tween COP 8,500andCOP9,700, the price of the share fluctuated be oftheyear,2016. Overthecourse price of COP 9,320 at the endof presents adropof2.36%fromthe ding Colcaptogrowby 11.98%. maintained anupward trend, lea- However, thepriceofshares on theColombianStockExchange. lume oftradeandnew transactions was reflected inthedecreasedvo- The year’s economicdeceleration PERFORMANCE SHARE at apriceofCOP9,100, whichre The bond market in Colombia The bondmarketinColombia Odinsa’s shares endedtheyear - - - • • • • • investment in voluntary andsup investment involuntary Guarulhos, SaoPaulo. ofMexicoCityand the airports ofpassengertraffic,in terms after inLatinAmerica the thirdairport to theOfficeofCivil Aviation. Itis reached 30,989,206, according capital, operatedby Opain, oftheColombian in theairport The totalmovement ofpassengers Dorado Airport El and explorenew opportunities. operations willallowustostrengthencurrent the industry role, assomeonewhoseexperienceandknowledgeof Rezkwas appointedtothis Concessions. AndrésOrtega Vice PresidentofAirport we createdtheofficeof oftheexecutionstrategicfocus,As part in2017 exceeded COP 420,000 million. exceeded COP 420,000 million. projects infrastructure plementary an additional48,000m was inaugurated, whichincludes terminals tic andinternational and theexpansionofdomes was created,rience Department Additionally, theCustomerExpe million in2017. reachedCOP1,061,934 airport commercial exploitationofthe Revenues fromtheoperationand mobilized by airinColombia. 70%ofthetotalcargo nearly of 4.84%comparedto2016and 2017, whichrepresentsagrowth tons ofcargomobilizedduring America, with706,802metric inLatin the numberoneairport ofcargo,In terms ElDoradois operations in2017. fullyearof completed theirfirst and frequenciesin2016that routes and new international Spain, andWingofromPanama), from Turkey, AirEuropafrom operations (Turkish Airlines starting of thenew airlines increased by 6.5%asaresult passengers International

CONCESSIONS PERFORMANCE OFAIRPORT 2 . The . The - - - • • • 2,000 tonsofCO to reduceemissionsby closeto Thisinitiativeisexpected terminal. power requiredby thepassenger will provide around22%ofthe through aphotovoltaic systemthat in placetoself-generateelectricity Ithasalsoaprogram International. Council Accreditation fromAirports to receivetheCarbonFootprint inthecountry airport It isthefirst South Americaby Skytrax. and isrecognizedasthebestin hasafour-starrating The airport ones. and 49international with 47domesticdestinations well asthecapabilitytoconnect million tonsofcargoperyear, as suitcases perhourandone the capabilitytohandle8,200 andhas airlines international 28 passenger aircraft.Itserves and 90contactpositionsfor terminal, sixVIPlounges, 224,000 m2inthepassenger has currently In total, theairport

2 peryear. Odinsa Anual Report 2017 25

Aeropuerto Mariscal Sucre

Mariscal Sucre International Airport • In 2017, the number of passengers operate out of Quito, which • The airport received a four-star recorded at Mariscal Sucre attracted volumes that were rating and a recognition from Skytrax International Airport, operated previously mobilized by other for having the Best Airport Staff by Quiport, increased from 4,852,530 airports in Ecuador. in South America. It is currently in 2016 to 4,861,041. • Quiport’s operating revenue reached at the number 52 spot in the • International traffic in the Ecuadorian USD 147 million, a similar figure to Top 100 Airports ranking, and was capital increased due to the the one reached in 2016. Regulated recognized for the fourth time by increased number of routes. Tame revenues increased due to the higher the World Travel Awards as a leading picked up seven weekly flights traffic of international passengers airport in South America. to New York and Lima, and and cargo operations thanks • In terms of sustainability, Mariscal Iberia increased its frequencies. to airlines that opened new routes Sucre Airport was certified Additionally, Avianca and Copa had or increased frequencies. by Airports Council International due better behavior with their routes. • The above enabled the Ebitda to its decrease of 583 tons of carbon Cargo volumes, for their part, to reach USD 106 million. dioxide. With this, the Quito airport increased by close to 15% compared Senior debt service payments were became the first in Latin America to 2016 due to the increased made for an amount of USD 64.5 and the Caribbean (with a capacity demand for flowers, the elimination million, including principal and for 5 to 15 million passengers) of safeguards on the import of goods, interest. With all this, 2017 ended to receive a Level 2 - Reduction and the commercial agreement with a total financial debt of USD 109 accreditation from the Carbon signed with the European Union. million, while this total was USD 161 Footprint Accreditation Program. • The airline Cargolux started to million in 2016. 26

PERFORMANCE OF ROAD CONCESSIONS

Autopistas del Café Malla Vial del Meta

Informe de Gestión Informe • With a daily average of 34,989 vehicles, • The average daily traffic was • Due to the change in traffic which represents an increase of 2.3%, 18,001 vehicles, for a total conditions that affect the this concession remains one of the of 6,570,387 during the year, concession agreement, as was

The Best Option busiest in Colombia. Revenues totaled which is 2.7% less than in originally planned in their risks COP 202,031 million. 2016. Total revenues reached matrix, the concessionaire • Several infrastructure projects were COP 82,608 million. This is convened an arbitration tribunal finished and the La Paz relief road due, in part, to changes in on December 1st, 2016 before was put into operation, which required macroeconomic variables such the Chamber of Commerce of an investment of over COP 31,500 as the drop in international oil Bogotá. The parties signed the million. This project was of high national prices, which caused a decrease addendum that defined, among importance because it overcame the in the number of cargo vehicles other aspects, the suspension threat of landslides that compromise the that circulate in the department of the obligation to obtain the stability of roads in Chinchiná, Caldas. carrying crude oil. Other factors financial closure of the project • On May 17, 2016, the National include the impossibility of and the start of the construction Infrastructure Agency (ANI, for its applying the fee structure to the phase. Similarly, it was agreed Spanish acronym) filed an arbitration concession agreement from the to continue the pre-construction claim against Autopistas del Café start of the project execution in activities (preparation of for the purpose of declaring that the two of the tolls and a change in studies and designs, operation concession has ended, despite the fact the tariff scheme prepared by the and maintenance of existing that the 7th clause of the addendum Ministry of Transport and ANI. infrastructure) and the execution of June 15, 2005 states that the term of the contract runs until February 1st, 2027. The claim has gone through all the proper steps of the process and it is expected that an arbitration award will occur in early 2018. • The Ebitda reached COP 80,351 million thanks to the direct execution of infrastructure projects, which generated a greater construction margin, in addition to a good traffic performance. • Autopistas del Café is free from financial debts and it is a stable source of profits and cash for its shareholders. • In line with Odinsa’s sustainability policy, the concession is developing 1% environmental conservation and offset plans with the three independent corporations of the coffee-growing region. Within the framework of this plan, work was carried out to manage the trees that were in danger of falling on the road, slopes were stabilized, and permit processes were completed with the National Agency of Environmental Licenses (ANLA, for its Spanish acronym). Odinsa Anual Report 2017 27

Conexión Pacífico 2 of necessary activities to • In total, 2,473,671 vehicles • As well, five international banks ensure safe and comfortable circulated in 2017 on the project, have granted letters of credit to circulation on the corridor. which is 8.7% more than the ensure the equity contributions These obligations were met in previous year, thanks to the and fulfillment of the Engineering, accordance with the proposed rehabilitation of functional Procurement and Construction schedules. The first hearing unit 5, inaugurated in March. contract. Lastly, Liquidity Subfund I, of the Arbitration Tribunal • Operating revenue reached COP the 4G FCP private capital fund of proceedings was scheduled 277,984 million, 112.4% more Credicorp Capital, and Sura Asset for March 7, 2018 and the than in 2016, and the Ebitda Management together with Itaú, company is still working with amounted to COP 27,684 million, became providers of a liquidity line. ANI to reach a conciliatory 186.1% more than the previous • At the end of 2017, the project agreement. In 2017, two of the period, thanks to the higher had recorded a progress of 30%, three environmental licenses for levels of work reported. It is which was in compliance with the the project were obtained. worth highlighting that the first established schedule. Digging disbursement for funding was began for both portals obtained, for an amount of the Mulatos Tunnel, as well as of COP 1.3 trillion. It is made construction on the major bridges up of two loans: one for of Cauca and Marvalle, Cartama, USD 250 million and one Piedras Mulatos. Likewise, for COP 510,000 million.• 86.4% of the lands required for • Concesión La Pintada is the the infrastructure projects were fifth concessionaire in the 4G released, and 54% have already program to obtain disbursements • been notarized. under their loan agreements. Itaú All environmental licenses have Bank led the syndication of the been obtained. The concession loan in dollars (250 million) with is currently structuring the first five financial institutions: Itaú, habitat for the recovery BCP, CDPQ Revenu Fixe, Banco of the tropical dry forest, Santander and ING. Regarding a pioneering project in the the last 3, Pacífico 2 is the first region and the second one infrastructure project they have in Colombia. It also allows the financed in Colombia, and CDPQ company to carry out the offsets is the first Canadian pension required by law and contribute fund to finance a project in the significantly to the recovery 4G program. The loan in pesos of one of the most endangered was granted by Banco Davivienda ecosystems in the country. (350,000 million) and Banco de Bogotá (160,000).

Conexión Pacífico 2 28

PERFORMANCE OF ROAD CONCESSIONS

Autopistas del Nordeste • A total of 3,906,080 vehicles Repairs were carried out as planned circulated on this concession located to meet the specific needs created by

Informe de Gestión Informe in the Dominican Republic, which these emergencies. implies an increase of 4.1% thanks • Operating revenues went from COP to the improved economic conditions 78,567 million to COP 147,083

The Best Option in the country, which caused a rise in million, which represents an increase domestic tourism. of 87% to the revaluation of financial • Traffic behavior followed the pattern of assets, which contributed with COP the previous year, with peak periods 60,000 million. during Easter, school vacations, and • The Ebitda increased by 435% to Christmas holidays. The daily traffic COP 148.031 million. This growth average was of 10,702 vehicles. was propelled by the rise in revenues • Hurricanes Irma and Maria, both of and recovery of provisions made in which hit the Dominican Republic, previous periods. affected traffic and collections, but the damage to the concession infrastructure was minimal.

Boulevard Turístico Green Corridor del Atlántico • This project located in Aruba ended the year with a progress of 98%. The main infrastructure projects are already • The construction of the toll plaza was operational, including the Spaans Lagoen Bridge, opened for completed and infrastructure projects service on September 13th, and the entire dual carriageway were carried out to repair damages in from the airport to the Pos-Chiquito roundabout, which was three sections of the road caused by made available for service on September 26th. the harsh winter of 2016. The quality Once work is completed in early 2018, of the infrastructure is evidenced by a series of audits will be carried out. the fact that the hurricane season of • The Ebitda reached COP 15,070 million, thus recording 2017 did not have a significant effect an increase of 225%. The main reason for this increase • on it. is the reclassification of the financial income. In 2016, it The concession’s operating revenues was accounted for as non-operating revenue. In 2017, it amounted to COP 107,017 million, because part of the operating income. which represents an increase of • The concession received a recognition from Wageningen 26%. Financial income grew by Environmental Research (Alterra) for its proper management close to COP 27,000 million, and of the Spanish Lagoon ecosystem (declared a Ramsar site collections were reduced by around by UNESCO) during the construction of the bridge. COP 5,000 million. 29

SUSTAINABILITY We seek to generate shared value for our stakeholders by managing our impacts responsibly; driving development, competitiveness, and connections with people; managing risks, and taking advantage of opportunities. The exercise of strategic orientation carried out in 2016 and 2017 defined a new proposal for the generation of value and responsible business management while see- king competitiveness based on solid guidelines for corporate governance and sustainability.

In line with our Grupo Argos matrix and the guidelines of the Sustai- nability and Corporate Governance Committee of our Board of Directors, we hold ourselves to the highest environmental, social, and corporate governance standards.

In 2017, we performed a materiality analysis that prioritized relevant topics based on dialogues with our stakeholders in order to identify the areas in which we need to focus more on economic, environmental, and social issues.

Today, we publish, for the first time, the numbers corresponding to the results of the management of each of these issues in regards to the road and airport concessions, including the measurement of our water and carbon footprints.

Finally, as a work program, we prepared a sustainability plan for the years 2017-2019.

Conexión Pacífico 2 30

HUMAN TALENT The achievements obtained during the year were close to 97% of employees participated in the possible thanks to a highly qualified and committed performance management process. Informe de Gestión Informe team. The focus on the management of human re- • We found a great opportunity to help our subsi- sources is to make Odinsa the best option in terms diaries with the implementation of best practi- of a place to work. ces, standardize methodologies, and find savings The Best Option • In order to address the strategy that has been esta- through synergies. blished, we strengthened key areas for the future: • We brought together 89 key holding and conces- we created the office of the Vice President of Air- sion leaders to present and disseminate the Odin- port Concessions, the department of Project Struc- sa Way, which is Odinsa’s way of doing things in ture Management, and the Compliance Division. regards to five key subjects: culture, ethics, stra- • Eighty-two per cent of new positions were filled tegy, sustainability, and customer service. by existing talent within the corporation. As well,

In 2017, we emphasized the training of our team at Odinsa and all concessions. Odinsa employees

• Odinsa’s business demands high levels of • Thanks to synergies with other companies in knowledge, which is why we promote the training Grupo Argos, we were able to make the Educa of our employees. In 2017, we achieved 73,352 virtual school available to our employees. This hours of training, which is equivalent to 75 hours permits the capitalization of knowledge and cu- per employee. Additionally, our professionals re- rrently offers 397 courses. ceived educational support at different levels, • We presented a new, broader and more compre- which addresses individual development plans. hensive benefits plan to our employees, which • We enacted a transformation leadership pro- includes benefits related to time, health, nutri- gram focused on offering practical tools that tion, and housing, among others. This, coupled can be easily implemented with visible, short- with the definition of salary curves, makes our term results. employee proposals more competitive. Odinsa Anual Report 2017 31

VISION OF THE FUTURE COMPLIANCE The positive results of 2017 are At Odinsa, ethics and trans- Business”. This workshop the product of the disciplined parency are much more than was organized jointly with the execution of our strategy, which requirements to interact with our Department of Philosophy and has led us to strengthen our stakeholders, they are a way to the Applied Ethics Center of team, to begin an organizational understand business and achieve Los Andes University, and was transformation, and to focus sustainability. We believe that the attended by Level 1 and 2 on the high-impact activities infrastructure sector is crucial for employees of the company. and projects we apply our best the development of territories, • On another topic, all emplo- practices to. and that acting guided by the prin- yees were trained in matters We will continue to add ciples of ethics and transparency of compliance through the the guidelines and synergies is essential to the industry. “Committed” virtual program, of Grupo Argos to our capabilities which was developed by the and, at the same time, we will • During the last quarter of company to reinforce the work in a coordinated manner 2017, we created the Com- concepts of the Code on our businesses to strengthen pliance Division as part of the of Conduct and the manage- our criteria of efficiency and Vice Presidency of Legal and ment policies for these risks. sustainability to continue Institutional Affairs, which will Attendance at this training to improve our corporate efficien- be responsible for implemen- and the respective presen- cy and sustainability standards. ting and managing the com- tation of the knowledge eva- We will also continue to improve pany’s compliance system. luation as well as the Annual our corporate standards and This system is based on an in- Declaration of Conflict of management capabilities. tegrated and global approach Interests are mandatory re- We see ourselves on the that incorporates international quirements for all employees horizon as the best alternative for standards in order to improve and members of the Board long-term investors in Colombia the mechanisms to prevent of Directors. and the region, and as a strategic money laundering, financing • hFor the second consecutive partner in the infrastructure sec- of terrorism, fraud, bribery, year, Level 0 and 1 executi- tor given our reliable management and corruption. ves filled out the Declaration of a sustainable portfolio made • In an effort to prevent these of Goods and Income, which up of road and airport assets with behaviors and promote a is a mechanism aimed at a balance between greenfield and vigilant and critical attitude promoting the principles of brownfield projects. among our employees, we transparency and integrity. With this approach, Odinsa conducted a workshop called is constantly searching for pro- Deliberation in the Field of jects and assets of high quality and strategic importance that allow us to deploy our management capabilities for the development of resilient and sustainable infrastructures in order to strengthen our efficiency and foster innovation. 32 Informe de Gestión Informe The Best Option

SUPERVENING AFFAIRS January 18, 2018 February 8, 2018 A reply was issued to the lawsuit At the arbitration tribunal of Concesión Vial de Los Llanos filed by Proyectos y Construcciones S.A.S, the ANI did not present a conciliatory formula, so San José Ltda. against Odinsa S.A. the conciliation was declared unsuccessful and fees and for breach of contract. The main administrative expenses were set. The first hearing for the arguments in the reply revolve process was scheduled for March 7, 2018. around the fact that there was no breach, as the payment of the price February 13, 2018 was subject to the execution of the The Comptroller General’s Office, by order, decided to archive macroproject, there is no default the fiscal responsibility process related to the so-called “Finding because the budget on which the 232”, regarding the distribution of the surplus guaranteed obligation depended did not take minimum income, because they considered there was no fiscal place, and the project was not ca- damage based on the fact that the contract’s line of income rried out through no fault or failure was agreed upon at the conciliation that ended the arbitration of Odinsa’s. tribunals convened by the concessionaire in 2004. It was also A countersuit was filed to re- considered that said agreement did not harm the Nation and that cover the advance of COP 7,000 the Consultation and Civil Service Office of the Council of State million plus interest and adminis- has addressed concession contracts in which the resources that tration expenses. exceed the maximum transit limit are divided by halves between the concessionaire and the Nation, without objections. 33

LEGAL ASPECTS Contingencies Legal proceedings and the company’s general legal situation have transpired normally. Contingencies have not presented any significant variations and are listed in Annex 1 of this document. Intellectual Property In 2017, Odinsa complied with all intellectual property, copyright, and software license regulations pursuant to the provisions of Law 603 of 2000.

Certification of Law 1676 of 2013 In accordance with Title IX “On factoring activities”, article 87, paragraph 2, of Law 1676 of 2013, it is certified that the company has not hindered the free circulation of invoices issued by suppliers of the company during the year 2017.

Operations related to section 3, article 446 of the Code of Commerce Item 2017 Remuneration of key positions 6,346 Representation expenses 433,467 March 5, 2018 Fees 506,095 The Arbitration Tribunal convened by the Natio- Consulting 8,962,221 nal Infrastructure Agency (ANI) against Autopis- tas del Café S.A. issued an Arbitration Award Tax audits 333,553 through which it denied ANI the pretensions of Security landfill 760,649 early termination of the concession agreement. Publicity, advertising and promotions 5,116 The ANI was awarded the money for La Maria Donations 143,750 Weighing Station, which has been made availa- Total 11,146,081 ble to said entity. (Information expressed in COP thousands) Hereinafter, we will continue to apply the March 7, 2018 established strategy with discipline in order to The first hearing was held by the Arbitration continue to consolidate ourselves as a relevant Tribunal in the case of Concesión Vial de los infrastructure player in the region. Llanos, in which it assumed competence of the process and decreed the evidence thereof. Sincerely, Consequently, the arbitration proceeding initiated the evidentiary stage. Mauricio Ossa Echeverri, president

Governing Body GENERAL SHAREHOLDERS MEETING It is the company’s They must hold an highest governing ordinary meeting once body. It is responsible a year, and as many

Informe de Gestión Informe for establishing the extraordinary meetings mechanisms to evaluate as required to ensure the and control the activities fulfillment of the duties it

The Best Option of the company’s top has been assigned under executives and directors. the Bylaws.

The Regulations for the General Shareholders’ Meeting are set out in Chapter III of the company’s Code of Good Corporate Governance.

Strategic and Administrative Bodies CORPORATE GOVERNANCE (102-26) BOARD OF DIRECTORS Governance Structure

Odinsa’ Board of Código de Buen Gobierno Odinsa’s corporate governance model is Directors is its highest de la compañía. constituted in the Code of Good Governan- administrative body. As Critical issues presented ce, which establishes the parameters to such, it is responsible for to the Board: structure, promote, and disseminate the ensuring the fulfillment • Disinvestment company’s best practices. Odinsa’s best of our corporate strategic analysis. corporate practices set out rules and prin- objectives and for • Road concession ciples that must be followed by every go- monitoring the actions outlook analysis. verning body. taken to achieve them. • Airport concession (102-18) This being said, the company’s It is made up of seven outlook analysis. government is made up of different bo- members, all principals, • Bond issue analysis. dies: the General Shareholders Meeting, two of whom meet the • 2017-2019 the Board of Directors, and senior mana- independence criteria Sustainability Plan gement. Additionally, the Board of Direc- established both in tors appoints three supporting committees Colombian law and in the made up of some of their own members. company’s code of Good Some members of senior management at- Governance. tend the committee meetings, where they express their opinions on the issues dis- The Regulations for the Operation of the Board of cussed, but they cannot make definitive Directors are set out in Chapter IV of the company’s decisions about them. (102-19) Within our Code of Good Corporate Governance. governance structure, we have a Steering Committee made up of the company’s pre- Its respective support committees are as follows: sident and vice presidents. • Auditing, Finance and Risks Committee Each of these corporate bodies exerci- • Appointment and Compensation Committee ses the functions and powers established • Sustainability and Corporate Governance Committee in the Bylaws and the Code of Good Gover- nance, subject to all the applicable legal, re- gulatory, and statutory provisions in force. STEERING COMMITTEE

• Chairman • Vice Presidents Odinsa Anual Report 2017 35

BOARD OF DIRECTORS (102-20) (102-22) (102-23)

Odinsa Board of Directors

During the meeting of March 28, 2017, Odinsa’s General Shareholders Meeting appointed the following members of the Board of Directors:

Jorge Mario • President of Grupo Alejandro • Vice President of Velásquez Jaramillo Argos S.A. Piedrahíta Borrero Corporate Finance at • Appointment and Com- Grupo Argos S.A. Chairman of the Board pensation Committee. Vice-Chairman • Auditing, Finance of Directors • Member of the boards Executive member and Risks Commi- Executive member of directors of Grupo ttee. Sura, Cementos Argos, • Member of the Asociación Nacional boards of directors de Empresarios (ANDI), of Grupo Sura, Cel- Fundación Dividendo sia, Muma S.A. And por Colombia, and the Aceros Mapa S.A. Superior Council of EIA • Attended 11 ordinary University. sessions and 4 more • Attended 11 ordinary by means of a wri- sessions and 4 more te-in vote in 2017. by means of a write-in vote in 2017. 36

BOARD OF DIRECTORS

• Vice President of • Vice President

Informe de Gestión Informe Camilo José María Isabel Abello Vives Corporate Affairs at Echeverri Carvajal of Sustainability Grupo Argos S.A. Cementos Argos. Executive member • Sustainability and Executive member • Sustainability and The Best Option Corporate Gover- Corporate Gover- nance Committee. nance Committee. • Member of the • Member of the boards of directors board of the Ce- of Cementos Argos mentos Argos S.A. S.A. y Pactia. foundation. • Attended 5 ordinary • Attended 7 ordi- sessions and nary sessions 4 more by means and 4 more by of a write-in vote means of a write-in in 2017. vote in 2017.

Sergio Osorio • Vice President of Sergio Restrepo • Auditing, Finance Hurtado Administration and Isaza and Risks and Sus- Human Resources tainability Commit- Executive member Grupo Argos S.A. Non-executive member tees and Corporate • Appointments and Governance. Compensation • Member of the Committee. boards of direc- • Member of the tors of Bio S.A.S., boards of directors Doratex Colombia of Opain and Sum- (Tablemac) and ma S.A.S. Coquecol. • Attended 7 ordinary • Attended 9 ordinary sessions and sessions and 4 4 more by means more by means of a write-in vote of a write-in vote in 2017 in 2017.

Juan Emilio • Appointments and Compen- Posada Echeverri sation, and Auditing, Finan- As long as the ce and Risks Committees. Non-executive member • Member of the boards of company has the directors of Fundación Plan in Colombia, Plan Interna- status of bond issuer, tional - Brazil, Computec, Sociedad Hotelera Tequen- dema, Direktio S.A.S., and at least 25% of the Flores de la Campiña. • Attended 8 ordinary ses- members of the Board sions and 4 more by means of a write-in vote in 2017. of Directors must be non-executive. Odinsa Anual Report 2017 37

The policy for the appointment, compensation, and succession of the Board of Directors, approved in March of 2017, establishes the basic principles, skills, and limitations on the candidates.

(102-24) Policy for the Appointment, Compensation, and Succession of the Board of Directors

In order to elect the members of Those who can certify such or her to contribute to one or the Board of Directors, the General experience must be appointed more dimensions based on Shareholders Meeting must take to the Auditing Committee. their specialized knowledge the following aspects into account • All directors must have the of the industry, financial (among others): basic abilities to exercise their aspects and risks, legal issues, • Directors must not be older duties adequately. Among commercial matters, and crisis than 72 and they must have these abilities are: analytical management. participated in other boards and managerial skills, a • At least 25% of the directors of directors. They must have strategic vision of the business, elected for a given period must certifiable specific knowledge objectivity and the capacity to meet the requirements to be in topics related to corporate present their point of view, and considered non-executive, and governance and sustainability, the ability to evaluate superior must declare it at the time as well as experience in human managerial officers. Additionally, they accept their inclusion. resource processes. They they must have the capacity Non-executive members will must contribute a professional to understand and question lose this status once they specialty that is relevant to their the financial information and have maintained it for three duties at Odinsa. business proposals, as well consecutive periods of two • When making up the Board of as the ability to work in an years each. Directors, it is the goal for there international setting. to be non-executive members • In addition to the core skills, with experience in corporate each director shall have other finance and internal control. specific skills that allow him 38

Compensation (102-35) (102-36) Evaluation Process Compensation for the Board of Directors is set by the The Board of Directors that is chosen, it will be General Shareholders Meeting in accordance with the and its members will aimed at having peer responsibilities and time invested by each member. be evaluated annually, evaluations and analyzing Members are paid on a monthly basis, as the company both collectively and the reasonableness of Informe de Gestión Informe considers that their duties go beyond attendance: their individually, alternating internal regulations as performance outside of meetings is just as important. between self-evaluation well as the dedication and However, directors must attend at least 80% of the mee- and external evaluation. performance of directors.

The Best Option tings held by the Board of Directors in a year. Members External evaluations The General Shareholders who participate in one of the supporting committees shall be carried out by Meeting will be informed will receive additional compensation for their attendance an independent firm. A by management about to the respective meetings. The Policy for the Appoint- summary of the conclu- the main duties and ment, Compensation, and Succession of the Board sions mentioned in the activities carried out by of Directors contemplates the possibility of paying evaluations will be publi- the Board of Directors, members with company shares, but this alternative shed on the company’s the committees, and the has not been implemented yet. web site. Regardless of Presidency during the the evaluation scheme preceding period.

Sustainability Issues Discussed by the Board Carbon footprint was of Directors measured for the 2015- (102-31) 2017 period. The following issues were submitted for the consideration of the Board of Directors, by previous recommendation of the Sustainability and Corporate Governance Committee.

During the ordinary session of the Board of Directors of June 2017, the issues discussed were as follows:

• Sustainability background • 2017-2019 Sustainability Plan

During the ordinary session of the Board of Directors of October 2017, the issues discussed were as follows:

• Sustainability • Progress • Measurement of water and carbon footprints • 2017 long-term PRO • Corporate Volunteer Program • Sustainability Week 2017 Conexión Pacífico 2 wildlife Odinsa Anual Report 2017 39

BOARD COMMITTEES Appointment and Compensation Committee (102-22) The main goal of this Committee The Board of Directors has three Members Meetings of is to support the Board of this committee supporting committees made up Directors in the fulfillment of non-executive and executive Jorge Mario Velásquez are also if its duties related to the attended by members and presided by a non- appointment and compensation Chairman of the Board and Executive Member the President executive member. In order to select of members of the Board and of the company the members, the relevancy of their Senior Management. and the Vice profiles, knowledge and This Committee is made President of Sergio Osorio professional experience in relation up of three members of the Human and Executive member to the objective of the committee Board of Directors. Members Administrative of this committee must be is taken into account. Additionally, Resources. knowledgeable in issues of some members of the company’s Juan Emilio Posada During 2017, strategy, human resources or Non-Executive three meetings senior management are part of the issue related to salary policies Member were held. committees but without voting rights. and related matters.

Auditing, Finance and Risks Committee

The main purpose of the the internal control objectives, Members Committee is to evaluate such as efficiency and Meetings of this accounting procedures, manage effectiveness of operations, committee are also the relationship with the tax and sufficiency and reliability of Sergio Restrepo Isaza attended by the President of the auditor and supervise the financial information. Committee chairman, company, the Vice effectiveness of the control The committee is made up of non-executive member architecture and of the Risk one executive member and President of Finance, the Management System. The two non-executive members Vice President of Legal Committee orders and ensures who are knowledgeable about Juan Emilio Posada Affairs, the Risks that internal control procedures accounting and financial Non-executive member Manager, the Accounting adjust to the requirements, matters. The composition of the Managers, the internal auditor and the tax objectives, targets and committee was modified at the Alejandro Piedrahíta strategies established by Board meeting of April 24, 2017 auditor. During 2017, Borrero four meetings were held. the Company, and that said Executive member procedures are framed within

Sustainability and Corporate Governance Committee

Members Likewise, meetings The main objective of this committee is to of this committee María Isabel Echeverri support the Board of Directors in its duty to are attended by Executive member propose and supervise the sustainability and the President of corporate governance measures of the company. the company and The Sustainability and Corporate Governance Camilo Abello the Vice President Committee is made up of three Board members. Executive member of Legal and The composition of the committee was modified Institutional Affairs. at the Board meeting of April 24, 2017. Sergio Restrepo During 2017, three Non-executive member meetings were held. 40

CORPORATE DECISIONS

• (102-10) Odinsa, by virtue of a change to the company’s • During an extraordinary meeting, the strategy, completed its disinvestment in Generadora General Shareholders Meeting voted del Pacífico S.A., a company based in Chile whose main unanimously, with a vote of 195,471,782 activity is the generation of energy. shares, which represent 99.7% of the Informe de Gestión Informe This transaction included the sale of shares of Odinsa company’s total outstanding shares, Holding Inc. (51.22%), a subsidiary of Odinsa S.A., to authorize the voluntary cancellation and of accounts receivable by Odinsa S.A. and its of the registration of ordinary Odinsa The Best Option subsidiary. This operation amounted to a total value S.A. Shares in the National Registry of of USD 19.1 million, out of which USD 12.6 corresponded Securities and Issuers (RNVE) and the to Odinsa and its subsidiary. Colombian Stock Exchange (BVC).

STEERING COMMITTEE (102-19) As a consequence of Odinsa’s strategic redefinition, in 2017 the management structure was strengthened with the creation of the Office of the Vice President of Airport Concessions, to which Andrés Ortega Rezk was appointed as the leader.

Odinsa Steering Committee Odinsa Anual Report 2017 41

Business Administrator and Mauricio Ossa Eduardo Lawyer from Universidad de specialist in International la Sabana specialized in the Echeverri Marketing from EAFIT Uni- Bettin Vallejo Senior Business Manage- versity in Medellín. Vice President of Legal Chairman ment Program (PADE, for its Senior Management stu- and Institutional Affairs Spanish acronym) of Inalde dies at Universidad de La Business School - Universi- Sabana and Management dad de la Sabana and the Studies at the Kellogg CEO Management Program School of Management in of ADEM Business School. Illinois, USA. Former Legal Manager at Former Industrial Business Cementos Argos, Secretary Manager, National Mar- General of Cementos del keting Manager, and Vice Caribe and Cementos Paz President of the Caribbean del Río, and President of Regional Branch of Cemen- Sator S.A.S. tos Argos.

Carlos Mario Pablo Arroyave Alzate Toro Fernández Certified Public Ac- Administrative Engineer Vice President of Human countant from EAFIT Vice President from Escuela de Inge- and Administrative University in Medellín, of Finances niería de Antioquia Resources specialized in the Senior with an MBA from New Business Management York University. Program of Inalde Busi- Former Director of Mer- ness School - Universi- gers and Acquisitions dad de la Sabana. and assistant to the Former Administrative President of Cementos Manager at Cementos Argos, as well as Ma- Argos and Cementos nager of Mergers and Cairo, and Manager of Acquisitions of Cemen- Human and Administrati- tos Argos. ve Resources at Sator.

Gustavo Andrés Andrés Ortega Rezk Ordóñez Salazar Vice President of Vice President Civil Engineer from Pontificia Airport Concessions of Concessions Universidad Javeriana, specialist in Corporate Finance from Colegio de Estudios Superiores de Administra- Business Administrator ción (CESA). from CESA with a Master’s Former Business and degree in Business Mana- Projects Coordinator at CSS gement from Instituto de Constructores S.A., Design Empresa in Madrid. Led Engineer and Engineering the transformation and Director at the company growth process at Opain Luis Héctor Solarte. as General Manager.

LOOKING FORWARD (103-2)

In the short-term, we will continue to strengthen the policies and practices that allow us to consolidate the company’s corporate governance with a complementary focus on managerial governance, particularly, on the management models of the boards of directors and relationships with associated companies. The Best OptionInforme de Ges- tión 42

ETHICS AND TRANSPARENCY regulations. rent mannerinaccordancewiththelaw andinternal acting inaresponsible, honest, serious, andtranspa on the principle of integrity, as which is understood asabehavioral guidebased of thiscodeistoserve Argos. The objective governs all companies in Grupo adopted the Code of Business Conduct (102-26) that vely. Thisisalsowhy, in2015, theBoardofDirectors best practicestofightagainsttheseactivitieseffecti iszero tolerance,rruption whichis why we implement (102-16) Ourpositionregardingfraud, bribery, andco our complianceprogram. reinforce the implemented measures and strengthen President ofLegalandInstitutionalAffairs, inorder to vision was created, directlytothe Vice whichreports issue istothecompany, in2017 theComplianceDi- creation ofanethicalculture. strengthen training programs, and contribute to the transparency, to define the investigation standards, relatedtoethicsand administrative bodyformatters as the internal pose of this committee is to serve presidents andtheConductOfficer. Themainpur- we have theConductCommittee, madeupoftwovice the CodeofConductandotherassociatedpolicies, Additionally, this asanexampleofhowimportant In ordertoadequatelymanagecompliancewith - - - governance, policies, anti-corruption of Odinsaemployees received following standout corruption. thesepractices,Within the to manage therisksoffraud, bribery, and bestpracticesnational andinternational implemented multiplemeasuresbasedon in theaforementionedCode, wehave In ordertodeveloptheprinciplescontained training related to corporate training relatedtocorporate Administrative Affairs and theCodeofConduct. Vice President Vice of Legaland CONDUCT COMMITTEE Conduct Officer Members and Administrative Human Resource Vice President Vice Odinsa Anual Report 2017 43

• We adopted the Policy for the Management this program with a coverage of 100% of of the Risks of Fraud, Bribery, and Corrup- employees in corporate areas. Similarly, tion, which contains general parameters Opain trained 98% of its employees and and guidelines to identify, measure, and its Board of Directors. control these risks, while promoting a • As a way to ratify our commitment to the culture of compliance in the entire orga- principle of integrity and our fight against nization. As a complement to the above, fraud, bribery, and corruption, in 2016 we adopted a policy that re- we determined that access gulates all things related to to the Variable Compensation the granting and reception of In 2017, System would depend on com- gifts and hospitality. there were 10 cases pletion of the conduct training • We put the Transparency program, an evaluation of the Line into operation, a free- submitted through respective knowledge, and sig- of-charge channel through the ning the Annual Declaration of which people can report, Transparency Line Conflict of Interests. anonymously if they prefer, • In terms of conflicts on inte- incorrect acts and breaches that were analyzed rests, the parameters to identi- of the Code of Conduct and and resolved. fy, disclose, and prevent them internal company regula- are contained in the Code of tions. The line is managed Conduct. For purposes of dis- by an independent third par- closing conflicts of interests, ty and the information that is received is Odinsa requires an annual declaration of treated with the highest standards of potential sources of such conflicts from confidentiality. all our employees and members of the • (205-2) Training and Communications Board of Directors. Program, for the purpose of dissemina- • Additionally, we implemented the Declara- ting the content of the Code of Conduct tion of Goods and Income, which seeks and other measures. We also try to have to strengthen transparency and complian- all employees internalize its precepts ce with ethical standards by all directors. and understand the importance of ethi- This declaration was filled out by all direc- cal behavior. During 2017, we executed tors and managers at Odinsa.

Transparency Line [email protected] 01800124333

LOOKING FORWARD (103-2)

In 2018 we will continue to design and implement Bribery Act, the OECD Anti-Bribery Convention and a Compliance System with an integrated focus the UN Convention Against Corruption. We will on governance, risks, and compliance aimed at create a matrix to identify and measure the risks preventing, monitoring, and controlling risks related associated with compliance, adoption of controls to fraud, bribery, corruption, money laundering, and preventive measures, the preparation and and terrorism financing as well as ensuring dissemination of a compliance manual, and the compliance with regulations. This system should definition of the procedures to implement the include national and international standards monitoring activities. such as ISO 19600, ISO 37001, FCPA, the UK 44

infrastructure projects. Risk management allows the company and its administrators to make informed decisions to favor the preservation and generation of value in this industry, as well as compliance with contractual commitments to local authorities, project financiers, and investors. The Best Option RISK MANAGEMENT SYSTEMS As part of the process to strengthen our government and that of our subsidiaries, in 2017 we initiated a process to establish a comprehensive management of risks at the highest level. For this purpose, we created the Risk Management department, which is responsible for facilita- RISK MANAGEMENT ting said process and establishing the guidelines for their subsidiaries to adopt a risk-based approach. Similarly, we wrote Odinsa’s Risks Since the company was acquired by Grupo Policy and, preliminarily, we identified 17 strate- Argos in 2015, we redefined the strategic gic risks and 70 operational risks, which will be orientation of the business with the help of evaluated and treated as part of the Risks Pro- Breakthrough, a consulting firm specialized in gram that will be developed in the coming years. strategies, and we initiated a strengthening Odinsa’s Risks Policy clearly defines the ro- process for our corporate governance that is in les and responsibilities of the Board of Direc- line with Grupo Argos. This has allowed us to tors, President, Steering Committee, process incorporate key elements from their business leaders, and the departments of Compliance, model and operations. Risks, and Auditing. It also identifies the main Based on this new strategy, risk mana- premises for the implementation and mainte- gement and sustainability have become ele- nance of this system. ments we consider key for the generation of The risk management system was establi- value in the future, as they are essential to shed to administrate strategic, operational, and

RISK GOVERNANCE The Auditing, Finance and Risks Committe is a supporting committee of the Board Board of Directors Auditing, Finance of Directors. One of its main purposes is and Risks Committee to monitor the effective implementation President of the Risk Management System and to report quarterly to Board of Directors on the implementation of the Risk Vice President Management Policy so that the main of Legal and Institutional Affairs financial and non-financial risks, both on and off the balance sheet, are identified, managed and disclosed appropriately. Auditing and Risks Management Odinsa Anual Report 2017 45

compliance risks in a compre- and feasibility stages. In ongoing response to businesses derived hensive manner and through the concessions (subsidiaries from the analysis of those respon- processes of the company and its in which an equity stake is sible for the administration of each subsidiaries. held), activities are carried out to business line and according to the As part of the structuring of new manage risks depending on the level of materiality and complexity projects, we performed the analy- stage of the project: design, fi- of each case. The most relevant ses and evaluations of risks in the nancing, construction, operation, risks and those with the highest re- technical, financial, legal, social, maintenance, and reversal. These putational impact are monitored by environmental, and counterparty activities cover the identification of the Board of Directors and handled spheres within the pre-feasibility causes, appraisal of impacts, and by senior management.

Colaboradores Odinsa

Additionally, risk management is an inte- R1.Controversies arising R9.Risks from corruption, gral part of the model Grupo Argos deplo- from contracts or regu- fraud, money launde- ys at its subsidiaries and which allows the latory application. ring, terrorism funding, alignment of practices and methodologies, R2.Decrease of traffic or and misconduct. and provides a holistic view. fees. R10.Risks to the quality of R3.Political risk. service and the work. RISKS R4.Cost overruns and de- R11.Risk related to the We started the identification of risks with lays in construction. execution of the go- the support of Marsh Risk Consulting, and R5.Decrease of financial vernance model with operational, tactical, and strategic risks flexibility. associated parties in were found. To date, 13 risks relevant to R6.Counterparty risk. the concessions. the development of the business have been R7.Impact from natural R12.Changes to standards evaluated, which are listed below. events or environmental and regulations. These risks identified preliminarily are intervention. R13.Risks related to the analyzed by the Risk Management depart- R8.Risks from partnerships, selection, retention, ment to provide the necessary administrati- mergers, acquisitions or and succession of ve and mitigation guidelines. disinvestments. human talent. 46 Informe de Gestión Informe The Best Option

Colaboradores Odinsa

TRAINING AND CULTURE OF RISK In 2017, we defined the Risk Management Program that will LOOKING FORWARD be executed in 2018 together with a culture of risk in order to disseminate to all employees the policy and methodologies that • Implement a system to will be applied to the management of risks. manage strategic, tactical, and This will be done through virtual and on-site training so that operational risks that helps everyone can apply key knowledge about the company and its support the decisions made subsidiaries to the processes they are responsible for. by the Boards of Directors and Management. • Strengthen the internal control of concessions and consortiums ACHIEVEMENTS OF 2017 with risk-based international standards. Approval of the Risk attributions matrix to • • Promote a culture of strategic Management Policy by the strengthen the managerial and operational risks as part of Board of Directors. government between Odinsa the business strategy of road Identification and evaluation and its subsidiaries. • and airport concessions. of 13 relevant risks within Survey of Odinsa’s • • Optimize the use of technological the organization. information asset risks. tools in risk management. Set-up of the first version of Support for the creation • • • Standardize risk management in the corporate risk software of the Risk Management all levels of the organization in for Odinsa and other System at Opain and the medium and long term. subsidiaries of Grupo Argos. Conexión Pacífico 2 • Development of the from the Comprehensive responsibilities and Management System. Odinsa Anual Report 2017 47

Autopistas del Café 48

Since 2016, we have been deplo- We understand that the best way ying a new proposal for the genera- to protect our investors’ capital is tion of value and the responsible to have a vision of sustainability, management of risks based on so- which favors the effective mana- lid corporate governance and sus- gement of risks and opportunities, tainability guidelines as a source so that being a solid investment of competitiveness. Sustainability makes us the best option. as a part of our strategy allows us It is worth remembering that

Informe de Gestión Informe to drive the generation of shared because Odinsa is part of Grupo value, that is, for our stakeholders Argos’ concessions business, it and for the company. applies the highest standards of

The Best Option We made progress in terms of sustainability and corporate go- balance by developing road and vernance. airport projects in balance with In addition, the guidelines of the environment and the rights of the Sustainability and Corpora- people. We left our mark by beco- te Governance Committee of the ming allies of local development Board of Directors also serve to SUSTAINABILITY and took advantages of oppor- guide and monitor strategies and tunities in innovation, which cha- best social, economic, and envi- llenges us to learn, thus ensuring ronmental practices. competitiveness on the market. Materiality (102-46) In 2017, we strengthened our structure by creating the Sustainability Division of the office of the Vice President of Legal and Institutional Affairs, which is responsible for developing and implementing the sustainability strategy for Odinsa and the road and airport concessions it has stakes in. In order to start implementing the 201-2017 Sustainability Plan, we carried out a strategic identification exercise of the economic, environmental, and social issues that are strategic both to Odinsa and its stakeholders. The chart below is the result of dialogues with our stakeholders and the analysis of the strategy by Senior Management. Process 1. Identification 2. Prioritization 3. Validation 3.0

2.5 1 6 4

2.0 5 3 8

10 1.5 7 11 9 12 1.0 13

0.5

0.0 0.5 1.01 .5 2.02 .5 3.0 (102-47) 1. Management of business and 5. User satisfaction 9. Supplier Management investments 6. Occupational health and 10. 1Energy and carbon 2. Talent management safety emissions 3. Growth and consolidation 7. Innovation 11. Road safety 4. Conduct, ethics and 8. Protection of the environment 12. Human rights transparency (water, biodiversity, and waste) 13. Community relationships Odinsa Anual Report 2017 49

Stakeholders (102-40) (102-42) (102-43) (102-44) Odinsa’s Code of Good Governance generation of trust, which allows us • Dependency establishes good relationships with to establish partnerships to face • Responsibility stakeholders as a standard of good common challenges and to have • Closeness conduct that should be based on a broad and unbiased view when • Influence integrity and transparency, respect making decisions, thus making them • Diversity of perspectives for their rights, engagement, and participants in such decisions. the pursuit of shared value. In 2017, we revised our stakeholders As such, we value open and using the guidelines of standard transparent dialogue with our AA1000SES as the methodological stakeholders as the basis for the foundation.

Opinion generators: Business and social Media/ associations: Employees: Opinion leaders/Academy Guilds/Sector companies/ Odinsa and Authorities Associations/NGOs concessions

Investors: Suppliers Comunities Long-term financiers/ Users Banks/Financial sector

ACHIEVEMENTS OF 2017 LOOKING FORWARD • Approval and implementation of the • We will continue to implement the 2017-2019 2017-2019 Sustainability Plan. Sustainability Plan. • Measurement of water and carbon • We will measure our performance in terms of managing footprints for the period of 2015-2017. the sustainability of economic, social, and environmental • First Sustainability Week held as a issues so that we may compare ourselves to the industry space for training on this subject. and thus identify gaps and strengthen the Sustainability • El Dorado Airport was the first Plan. in Colombia to receive the Airport • We will continue to analyze the results of the Carbon Accreditation (ACA) for measurements of the water and carbon footprints in order Level 1 - Mapping. to set targets and establish reduction strategies. • Mariscal Sucre Airport reached Level 2 • We will prioritize our stakeholders in order to strengthen - Reduction of the ACA Program due to the relationship objectives and mechanisms that will allow its carbon footprint reduction between us to develop a Stakeholder Management System in the 2014 and 2016. medium term. 50 Informe de Gestión Informe Odinsa Anual Report 2017 51

ALWAYS LEARNING

We take responsibility and we declare ourselves students

Autopistas del Café Always Learning Informe de Gestión 52 That ishowwe buildthefounda make thiscompany thebestpla is why itisoneofourgoalsto that makes thingshappen.This porate goals; they are the motor ment in the achievement of cor (103-1) Our talent is a key ele over time. tions ofasustainablecompany culturebasedon: a corporate tain thebesttalent. ce towork. management Talent We attract, develop, andre We generateloyalty tobuild of values. and theexperience business challenges achievement ofgreat res andmotivatesthe thatinspi Leadership we operate. inplaceswhere mark rentiatior tomake our Innovation asadiffe lidate knowledge. the mainway toconso as Collaborative work

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HOW WE MANAGE IT (103-2) (103-3) Training • Continuous learning is one of our virtual, and mixed training. We individual development plans. corporate values. Training our currently have 397 courses on • Leaders from the holding human capital is fundamental for subjects such as leadership, ma- and our subsidiaries participated competitiveness and a contribu- nagement, corporate, sustainabi- in the Leadership for Transfor- tion to the development of skills lity, finance, technology, chain of mation program. Leaders of the of our employees. supply, and language schools. Mariscal Sucre Airport partici- • In 2017, we joined Educa, the • We sponsor several professio- pated in the development of educational strategy of Grupo nals in their Master’s degree stu- managerial skills program. Argos, which includes on-site, dies, which are reflected in their

Road Concessions Average Training Hours (404-1) 200 (9,732) 2016 150 2017

162 21,569 (Total de hours) 164,913 100

el 114 as d Nor 106 ist des top te Au 50 (678) (692) xión Pac one í co 4 35% C 2 4 istas del 32 men top Caf 0 Au é 65% 11% Autopistas Malla Vial Conexión 60 mujeres 172 women del Café del Meta Pacífico 2 10% TOTAL 92 19 women 89% 1.380 men 90% Airport Concessions 170 men TOTAL 1,552 d concession Average Training Hours TOTAL 189 roa s tal To 350 (29,740) 2015 (26,893) 300 (29,776) Vial de tal Odin alla l Me To sa M ta 2016 313 19% 250 302 2017 276 409 women 200 38% 44% (Total de hours) 75 men 44 women 150 (16,121) TOTAL 2,117 TOTAL 100 62% 100 (12,541) 122 women 56% (9,364) 81% 56 men 50 31 TOTAL 197 1,708 men 22 15 Strategy event, Odinsa Day 0 El Dorado Airport Mariscal Sucre Airport urístico de do A rd T l A Dora irpo va tlá El rt le nt u ic o o B oncessio ort c ns irp 36% l a Odinsa ta 35% 15 men o reen Corrido T 218 women Average Training Hours G r

64% 65% 27 women 401 men 100 (187,174) TOTAL 42 20% 37% TOTAL 619 (232,290) 267 women 97 9 women 80 (42,281) 80% 84 36 men (5,976) TOTAL 267 60 (39,140) (60,776) 2016

TOTAL 45 63 (10,410) 60

54 2017 63% 40 (8,085) 51

41 (Total de hours) Sucr scal e Air 460 men ari po M rt 20 30

45% 0 49 women Total airport Total road Odinsa Total 55% concessions concessions 59 men TOTAL 108 54 Informe de Gestión Informe

Odinsa employees

Always Learning Always Performance Management (404-3) Airport Concessions Road Concessions

El Dorado Airport Boulevard Turístico del Atlántico The process covers 100% of managers, directors, Achieved a coverage of 98% of employees. and coordinators. Autopistas del Nordeste Mariscal Sucre International Airport Achieved a coverage of 98% of employees. A coverage of 100% of employees was achieved. The management group participated in a 180-degree We implemented the standardized feedback exercise. performance management (404-3) Percentage of employees who process in its four phases with the undergo periodic performance and professional development evaluations. participation of 100% of Odinsa employees. Attraction and Retention: We are the Best Option In 2018, we will present a new benefits El Dorado Airport plan for employees that will be added to the • New benefits were implemented that contribute to the attraction and definition of salary curves in order to make our retention of the best talent and employee welfare. Additionally, an employee proposals more competitive. appraisal of positions in the company was carried out. Out of 112 The benefits related to time, health care, food open vacancies, 26.7% were covered internally. vouchers, and housing credits are the ones Conexión Pacífico 2 most valued by our people. As well, in 2017 • A benefits plan was developed for employees. we carried out a remote work pilot program. Odinsa • Eighty-two per cent of new positions were filled by internal talent. Odinsa Anual Report 2017 55

(401-1)

Road Concessions LOOKING FORWARD (103-2) 18 72 26 Standardize the talent planning process together with 10 16 16 15 41 1229 the Business Group. Map internal talent (holding and 14% 28% 35% 12% 85% 30% 93% 19% concessions) for training and to close gaps in the 87%

86% succession of critical positions. Develop Odinsa’s 88%

81% School of Infrastructure. 72%

70% El Dorado Airport 65% • Develop virtual and on-site training programs about the airport business, ground and air operations, 7% marketing, and development of routes. 13% 15% Autopistas Boulevard Malla Vial Autopistas Conexión • Implement the performance evaluation del Nordeste Turistico del del Meta del Café Pacífico 2 for 100% of employees. Atlántico • Implement the Certification Program for the Gender Men Total hires Equality Management System. 2017 Women 2016 Autopistas del Café • Carry out skills evaluations for all staff. Airport Concessions Mariscal Sucre International Airport • Create a social welfare action plan based on the 12 179 Women diagnosis of employees’ current situations. 10 7 147 112 Men 70% 43% 55% 61% 60% 100% 2015

2016 Culture 45%

43% 2017 39% 40%

0% Total hires The Best Option 30% Mariscal Sucre El Dorado • We work impeccably. • We are competent and profitable.

Odinsa Always Learning 2017 Hires • We declare ourselves students. • We take responsibility. 22 Balanced Progress 59% Men • We take care of our physical, mental, and emotional balance. 41% Women • We generate trust. - Total hires Our Legacy • We always have a service attitude. 2017 • We work today for the future. Work Environment • 83% is the satisfaction of Odinsa employees The four attributes that make up the Odinsa in terms of the work environment. culture are values that promote agility, flexibility, • Mariscal Sucre Airport has automated processes and teamwork and that challenge us to be the for the work environment survey. best version of ourselves. 100% of employees • Based on the results of the Great Place to Work Survey participated in the definition of these attributes. and the Psychosocial Risk Battery, El Dorado Airport We structured and implemented Odinsa Day with strengthened their work welfare strategies. the participation of 89 key leaders of Odinsa’s • 76% of Conexión Pacífico 2 employees participated holding and subsidiaries. in the first organizational climate survey. 56 Informe de Gestión Informe Odinsa Anual Report 2017 57

BALANCED PROGRESS

We take care of our physical balance We generate trust

Aeropuerto El Dorado 58

Biodiversity (103-1) We identify and manage impacts on biodiversity during all project stages. During structuring, we take into account the areas that

Informe de Gestión Informe will be intervened as well as during the construction and operation and maintenance stages when inte- racting with local ecosystems and dynamics related to natural wealth.

Mobility infrastructure projects cause impacts on the biodiversity of the territories where they are executed. Some of these impacts are: changes to the vegetation cover, intervention of areas of value, modification of natural habitats, and displacement of species (304-2). Conexión Pacífico 2 wildlife

HOW WE MANAGE IT (103-2) (103-3)

Road Concessions

Malla Vial del Meta Conexión Pacífico 2 • It is currently in the • 300 trees were planted in

Balanced Progress pre-construction and El Morro hill in Jericó as environmental licensing phase. replacement for the ones These include the conditions that were felled during the under which the biodiversity construction of the control offset will take place. and operations center. • In 2017, there were no • The first bank for the construction projects recovery of the tropical dry that generated significant forest in the region (the impacts on the diversity, only second in the country) is maintenance activities. being structured jointly • The environmental certification with Terrasos S.A.S. It process under standard NTC is a pioneering project Among other species, a ISO 14001:2015 is underway, that contributes to the sparrowhawk and a tamandua for which policies, strategies, recovery of one of the most were rescued in the project programs, and resources are endangered ecosystems and rehabilitated in wildlife collected to minimize impacts in the country. Plants are care centers, as part of the on biodiversity. not only planted but also protection program. Once they monitored in the long term recovered, they were released to ensure the recovery of in areas previously agreed upon the ecosystem. with Corporación Autónoma Regional - Corantioquia. Odinsa Anual Report 2017 59

Green Corridor (304-1) Biodiversity is an essential part of the attractiveness of Aruba, where 85% of income comes from tourism. The concession places a lot of importance on the care of special environments. In order to manage the impacts on the Spanish Lagoon, a protected ecosystem under the Ramsar Convention, environmental studies were conducted and a work plan was proposed to preserve the quality of the water and biodiversity. Additionally, offset Conexión Pacífico 2 wildlife measures were implemented.

(304-3) Protected or restored habitats

Currently, there is work underway to evaluate the Spanish quality of the water and the 12 sedimentation of the Lagoon Hectares Collaboration: lagoon, to characterize the Arikok Park Aruba wildlife, and reforest the mangrove areas.

To date, 300 trees of native species have been planted to Jericó reforest El Morro hill as offset 1 Collaboration Antioquia, Hectare for the forest use granted for Mayor’s Colombia the construction of the project’s Office Control and Operations Center. 60

BIODIVERSITY Informe de Gestión Informe

Oxidation lagoon at El Dorado Airport

Airport Concessions

El Dorado Airport Mariscal Sucre Airport Plants It has an Environmental It was built on a A total of 83 species, Management Plan approved by the plateau with vegetation 77 gendera and 30 National Agency for Environmental characteristic of the dry families were recorded. Licenses (ANLA for its Spanish forest of Callejón. acronym), which includes The airport conducts an Birds maintenance activities related to annual monitoring of the In the plateau area, 80

Balanced Progress urban tree planting, green areas, vegetation and wildlife of species of birds, 71 tree pruning in the concessioned 10 plots in the Caraburo genera, and 28 families area, felling, and transplant of trees plateau to stay informed have been recorded. affected by the work, wildlife control of the situation of the This represents and bird safety. species in the area. This 14.76% of the total In order to ensure the efficient and allows them to determine species recorded in the safe development of the operations whether there is any effect Metropolitan District of and to align others involved with resulting from the airport Quito (542 species). this purpose, Opain has procedures operations. On another in place to ensure that third parties front, it has developed Mammals and contractors are aware of an offset and relocation There are 13 species of their obligations and thus control process for wildlife and mammals, which represent the risks associated with the vegetation species that are 3% of the total mammal operational safety of the airport. In within a certain category of wildlife in Ecuador (414 2017, the reforestation of the town endangerment or that are species). of Coello, Tolima was carried out endemic to the dry with 900 trees in order to contribute ecosystem of the Reptiles to the recovery and conservation construction areas with the In the Caraburo plateau, of the water intake of its aqueduct, purpose of maintaining and so far four species of which is located within the tropical conserving the species of amphibians and reptiles dry forest ecosystem. the dry forest. have need recorded. Odinsa Anual Report 2017 61

trees planted as part of the offset plan of the airport concessions

(304-3)

There is no intervention in these areas, which Caraburo permits natural regeneration. The existing Plateau 70 vegetation in the area is denser; trees and shrubs Quito, Ecuador Hectares have increased in size.

Offset and relocation processes for wildlife and Offset and re- vegetation species have taken place in this location area area. During 2017, 1,083 specimens of Acacia for wildlife 5 macracantha (faique) and 158 of Croton elegans Hectares (purga) were offset, two forest rabbits (Sylvilagus and vegeta- andinus), one green snake (Mastigodryas boddaerti), three lizards (Stenocercus guentheri) and four mice tion species (two of the Phyllotis haggardi species and one of the Quito, Ecuador Reithrodontomys soderstromi species) were relocated.

Planting of 900 specimens of four native species of the tropical dry forest, in accordance with the Lucha ecosystem. The establishment required Adentro Rural activities of ground isolation, Collaboration Settlement 1 Acción Verde cleaning, digging, minor transportation, Hectares Coello, Tolima, S. A. S. planting, application of water retention Colombia agent, and phytosanitary control for each individual out of 900 total trees planted.

LOOKING FORWARD (103-2)

Aeropuerto Mariscal Sucre Conexión Pacífico 2 • Plant 6,000 trees in the reforestation area • Obtain registration from the northeast of the airport and continue to Ministry of the Environment and monitor the percentages of survival of the Sustainable Development of the planted species. first Habitat Bank in Antioquia and the second one in Colombia. 62

Water (103-1) The conservation of water is essential for the execution of road and airport infras-

Informe de Gestión Informe tructure projects to be compati- ble with models of sustainable development. Conserving water guarantees the execution of mobility projects in the long term and the availability of this resource for our stakeholders. Conexión Pacífico 2

HOW WE MANAGE IT (103-2) (103-3)

Road Concessions

Conexión Pacífico 2 Malla Vial del Meta • We ensure the availability of the resource during the • Environmental management under execution of the construction work by means of two Standard ISO-14001:2015. sources: direct purchase from utility companies or water • The measures proposed to minimize, concessions granted through Corantioquia as the competent mitigate, or offset impacts such environmental authority. as the alteration of the quality • In order to optimize the resource and reduce its and consumption of water are consumption, we reuse and recycle water in the production analyzed within the framework of the of concrete and when washing the tires and chutes of studies required by the Colombian

Balanced Progress concrete vehicles. environmental studies. • (303-2) The concession does not have sources of water • Formulating environmental that have been affected significantly, as it does not abstract management plans ensures more than 5% of the total volume from the source, nor does an adequate management of water it use sources recognized as sensitive due to their size or in later stages of the project. ecological importance.

(303-1) Abstraction of water for road concessions Conexión Pacífico 2 has no water sources that have Conexión Malla Vial del Meta Autopistas del Café Abstracted water (m³) Pacífico 2 been affected 2017 2015 2016 2017 2015 2016 2017 significantly, as it does Fresh water abstracted 932 0 0 0 1,602 233 1,215 from surface sources not abstract more than 5% Groundwater 0 0 23.9 24 0 0 0 of the total volume from Municipal supplies of the source, nor does it water or other public or 2,856 399 1,057 1,179 7,336 4,395 8,569 use sources recognized as private water services. sensitive due to their size Total Abstraction 3,788 399 1,081 1,203 8,938 4,628 9,784 or ecological importance. Odinsa Anual Report 2017 63

Total water abstracted road concessions (m³) Water abstraction 1,602 7,735 TOTAL 9,337 increased in 2017 Fresh water abstracted 2015 24 because of the increased from surface sources coverage that included 233 5,452 TOTAL 5,709 Conexión Pacífico 2 and Groundwater 2016 24 the execution of more Municipal supplies of water or other 2,147 12,604 TOTAL 14,775 construction projects than

public or private water services 2017 than in 2016.

Airport Concessions

Mariscal Sucre Airport El Dorado Airport • The Environmental Management Plan • El Dorado has a water conservation system includes actions to manage water. for faucets, toilets, and urinals that leads • The airport ensures compliance with the to significant savings. The savings system Policy of Effluent Quality and the Guide to includes flushometers, motion sensors, and Good Environmental Practices for Water manual discharge controls that work in an Management, including contractual clauses integrated manner in toilets and urinals. Sinks that make them binding for commercial include the first two devices. operators. • It has a PTALL treatment plant for the • In order to ensure an efficient and utilization of rainwater, which treats water responsible consumption of water, the from rainfalls and permits it to be used for airport has systems to treat rainwater the sanitary services of Terminal 1. This plant and sanitary wastewater. There are two is capable of processing a flow equivalent discharge conduction systems and pre- to 3.72 liters per second during the rainy treatment plants where gray, black, and season. The flow of rainwater treated during rainwaters are purified before reaching the 2017 was of 15,189 cubic meters. abstraction and treatment points. • In terms of treatment systems, • The re-powering of the wastewater treatment the discharge permit was obtained in 2017, plant turned it into one of the most efficient which allowed the wastewater treatment in the Ecuadorian airport system with a plant to begin operations with a capacity treatment capacity of 12 liters per second. of 57.1 liters per second.

(303-1) Abstraction Mariscal Sucre El Dorado Total airport concessions of water for airport concessions 2015 2016 2017 2015 2016 2017 2015 2016 2017 Rainwater 0 0 0 2,194 25,172 15,189 2,194 25,172 15,189 Municipal 224,764 258,788 247,850 598,861 539,282 547,210 823,625 798,070 795,060 supplieS Total Abstraction 224,764 258,788 247,850 601,055 564,454 562,399 825,819 823,242 810,249 64

WATER

(303-3) Water reused and recycled (303-1) Total water abstracted airport concessions in airport concessions 3 Informe de Gestión Informe (m ) Reuse of water (m³) 2015 2016 2017 2,194 823,625 TOTAL 825,819 Rainwater 2015 Reused or 2,194 25,172 11,786 Municipal recycled water 25,172 798,070 TOTAL 823,242 supplies of 2016 water or other Percentage public water of reused or 0.3% 3.2% 1.5% 15,189 795,060 TOTAL 810,249 recycled water 2017 services

In 2017 we measured the water footprint for opportunities to manage this resource in a more blue and gray waters for the years 2015, 2016, effective manner. The goal is to reduce the and 2017 using the methodology approved consumption volumes and create projects by the Water Footprint Network to know the in the areas of influence that contribute to the actual figures of water consumption and detect protection and conservation of water.

Gray Water Footprint Direct Water Footprint It is the volume of water required to dilute the pollutants in It is the volume a discharge so that it meets local regulations. of surface water consumed or polluted as a result of the Blue Water Footprint Corporate operations of the Surface water (from lakes and rivers) or groundwater that Water Footprint business. is reused in the processes, evaporates, or is incorporated It is the total in a product. volume of water Road Concessions Airports used directly or • Road moistening • Domestic indirectly in the Indirect Water Footprint • Concrete production consumption

Balanced Progress It is the volume of execution and • Maintenance of green • Aircraft washing Road surface water consumed support of the areas spraying Blue waters or polluted in order activities of the • Land compaction • PTALL to produce the goods business (use in • Domestic and services that are Administrative offices Processes, consumption Portable part of the company’s • Domestic consumption evaporation, toilets production inputs. dilution of • Other uses discharges, etc.).

WATER FOOTPRINT OF ROAD CONCESSIONS (m3/año) Conexión Pacífico 2 Malla Vial del Meta Autopistas del Café Compo- Blue Gray Indirect Blue Gray Indirect Blue Gray Indirect nent 2015 2,126.06 657.17 178.16 210.45 1,482.27 50 4,810.59 36,034.58 505.40 2016 3,683.96 1,474.97 2,522.23 953.21 243.88 262 1,620.42 25,111.03 846.94 2017 28,812.04 13,418.57 21,818.27 1,001.42 2,876.55 1,945 9,302.26 31,156.95 5,492.21 Odinsa Anual Report 2017 65

WATER FOOTPRINT OF AIRPORTS m3/año El Dorado Mariscal Sucre Airport LOOKING FORWARD Component Blue Gray Blue Gray (103-2)

2015 134,655.49 1,234,440.65 33,714.60 291,784.54 El Dorado Airport 2016 196,628.48 1,713,752.96 38,818.20 - • Maintain water consumption per passenger using 2016 2017 193,423.99 1,978,200.00 37,177.50 579,349.38 as the baseline year. *In 2016 Mariscal Sucre Airport did not have a gray water footprint. • Use of 100% of rainwater collected in the cover ODINSA WATER FOOTPRINT m3/año terminal cover for sanitary Component Blue Gray Indirect use in Terminal 1. 2015 75,730.72 1,565,004.20 733.43 Mariscal Sucre International Airport 2016 241,978.02 1,741,358.47 3,630.91 • Expand the wastewater 2017 269,786.51 2,605,197.79 29,255.35 treatment plant. *Includes consolidated road and airport concessions and administrative offices. Autopistas del Café • Implement a system that allows the utilization of We measured the water footprint of Odinsa, its rainwater. road concessions in Colombia, and airport concessions for the years 2015, 2016, and 2017.

Body or water 66

Waste and Effluents HOW WE MANAGE IT (103-2) (103-3) (103-1) In large road and airport Because of this, we identified Infrastructure projects, it is neces- an opportunity related with Waste and effluents are managed mainly in the sary to work to mitigate any negative productive projects with commu- pre-construction, construction, and operational impacts that may be caused on the nities based on the commercia- stages of projects. However, the company water, soil or air as a result of an ina- lization of waste. These projects manages these aspects during all stages with

Informe de Gestión Informe dequate management of solid waste also generate economic bene- the purpose of reducing the amount of waste and discharges. It is also necessary fits and improve the quality of generated, reducing the use of resources, to reduce costs associated with the life of people in these commu- achieving a high rate of waste utilization, and treatment, disposal, and purchase of nities, while reducing adverse reducing the volume of discharges. raw materials and supplies. effects on the environment.

WASTE MANAGEMENT Road Concessions

(306-2) Total weight Malla vial Autopistas Conexión of waste by type and del Meta del Café Pacífico 2 Total method of disposal (tons) 2017 Total waste generated 846.54 6 158 1,010.2 by the company Total hazardous waste 1.24 5 91 97.3 by method of disposal Internal or external reuse 0.0 0.0 49.0 49.0 Recycling 0.2 0.2 0.0 0.4 Incineration 0.0 1.2 39.6 40.8 Security landfill 1.1 3.5 2.6 7.2 Total non-hazardous 845.30 1 66.8 912.8 waste by method of

Balanced Progress Recycling 0.3 0.2 13.2 13.7

Plant Landfill 50.4 0.6 53.6 104.6 for waste management Dump 794.6 0.0 0.0 794.6 at El Dorado Airport Total waste disposed 846.05 5 96 947.13

Malla Vial del Meta Conexión Pacífico 2 • The concessionaire plans the policies, strategies, • Final disposal of solid hazardous programs, and resources required based on and non-hazardous waste through the Comprehensive Management System and operators with valid environmental environmental regulations. permits. • These strategies include training for contractors and • Verification, through a chain of suppliers with the purpose of having them align their custody plan, that the waste actions with the concession’s policies. provided by the company reaches • During 2017, the concession generated a total of its destination and is separated, 846.54 tons of waste, including hazardous (0.15%), used, or disposed of in an ordinary, and special waste. The total amount of adequate manner that complies waste was disposed of with the support of public with Colombian regulations. utility companies and specialized operators. Odinsa Anual Report 2017 67

Airport Concessions

El Dorado Airport Mariscal Sucre Airport • Sorting and Utilization Station where waste • Waste Management Program that sets is received from ground operators who forth the actions for the proper management clean aircraft that fly domestic and of waste and effluents. international routes, and waste from • The Policy of Effluent Quality and the passenger terminal T1, T2 (shops and Waste Management Plan are binding restaurants), and the cargo terminal. for commercial operators. • Out of the 4,478 tons generated during the • The airport has the process and the facilities year, 1,938 tons of recyclable material and to manage waste from ground and air operations. organic matter for compost were recovered. It includes separation at the source, temporary This represents 43% of the waste. storage, transport and final disposal through • New temporary storage centers for solid authorized operators, as established waste were implemented during the by current environmental laws. There is also expansions of the north and south passenger an incinerator for waste from international docks in the airport’s terminal 1 (T1). flights, as per airport regulations. • As of March 2017, solid waste is managed • (103-3) As a result of this management work, through a scheme that includes activities the amount of waste destined for recycling based on the provision of public utilities. This increased by 8% compared with 2016. system consists on a process of selective, • It received the Punto Verde certification granted door-to-door collection from space holders. by the Ministry of the Environment to the firefighter building and airport maintenance.

Mariscal El Dorado Odinsa Consolidated Waste management Sucre Total Waste management (tons) 2017 (tons) 2017 Total waste generated Total waste generated 7,039 649 5,377 6,027 by the company by the company Total hazardous waste Total hazardous waste 25 885 911 1,010 by method of disposal by method of disposal Internal or external reuse 0 0 0 Internal or external reuse 49.0 Recycling 10.9 0.9 11.8 Recycling 12.2 Incineration 12.8 824.9 837.7 Incineration 878.5 Security landfill 1.7 59.3 61 Security landfill 68.2 Total non-hazardous waste Total non-hazardous waste 624 4,492 5,116 5,116 by method of disposal by method of disposal Recycling 233.5 1,066.0 1,299.5 Recycling 1,314.4 Compost 0 872.3 872.3 Compost 872.3 Landfill 348.2 2,539.9 2,888.1 Landfill 2,993.7 Dump 0 14.0 14.0 Dump 808.6 Incineration 42.2 0 42.2 Incineration 42.2 Total waste disposed 405 3,438 3,843.1 Total waste disposed 4,791.2 68 Informe de Gestión Informe

WASTE AND EFFLUENTS DISCHARGE Airport Concessions MANAGEMENT Balanced Progress El Dorado Airport Prior to making discharges A new discharge permit was obtained, which allowed the installation in road and airport and commissioning of a wastewater treatment plant with a capacity concessions, non-domestic of 57.1 liters per second, that is, the volume of water required to fill wastewater is led to an Olympic pool in 12 hours. The value of this investment was close treatment plants where the to COP 6,400 million. concentration of pollutants (306-1) Discharge of water is reduced in order to comply by quality and destination with environmental laws Additionally, physicochemical, microbiological, and hydro- biological monitoring

is conducted periodically 818,993.024 in order to corroborate the compliance and

efficiency of the implemented 534,677.76 treatment systems. 221,730 Source of discharge Wastewater Wastewater Oxidation Destination treatment plant treatment plant lagoon Santa Rosa River Bogotá River Bogotá River Odinsa Anual Report 2017 69

LOOKING FORWARD (103-2)

Mariscal Sucre Airport • Annual adjustment of the targets of the Waste Management Plan. El Dorado Airport • Run a pilot test to treat gray water from bathrooms (sinks) to be reused later in toilets. • Increase the percentage of utilization in the long term by means of proper separation at the source by an average of 43% to 65% by 2021. Conexión Pacífico 2 • Install a new industrial wastewater treatment system to modify the existing one in functional unit 4 - exploit construction materials and improve the quality of water Oxidation lagoon at El Dorado Airport discharged to the water source. • Train workers on the correct separation of the waste generated in order to increase the percentage of reutilization. Road Concessions Similarly, utilize organic waste so that it can be transformed into fertilizer for the plants Volume discharged in 2017 (m3) in the project’s greenhouse. Autopistas del Café

155.52 • Decrease the generation of waste in offices and increase the rate of recycling. 155.52 155.52 Malla Vial del Meta

124.42 124.42 • Once the construction phase starts, suppliers and contractors will be informed of the policies defined by the company to manage waste so that Ocoa Scales Ocoa Toll Iraca Toll La Libertad La Libertad it can be done efficiently. Soil Soil Soil Toll Scale Soil Soil 70

Energy Road Concessions and Carbon Conexión Pacífico 2 Malla Vial del Meta Emissions • The impact is associated mainly • The maintenance and with the consumption of energy, revision plan for the Informe de Gestión Informe (103-1) Like in every industry, road and fuel, and materials from non- entire automotive plant airport infrastructure is facing a number renewable natural sources. was completed in order of transformations associated with the • The carbon footprint was to ensure the good gradual increase in temperature, chan- measured in 2017. condition of the vehicles. ges in rainfall, increase of sea level, • During 2017, we developed • Implemented a global extreme events of climate variability, awareness campaigns about positioning system and modification of ecosystems and topics related to the good use (GPS) for operations, characteristic of soils, all of which can of materials and the importance maintenance and generate closures and costs of repara- of reducing consumption Highway Patrol vehicles tions and mobility of people and goods. of energy in offices and in order to monitor their In order to make balanced progress administrative areas. location and length and in balance and respond to the of travel. challenges of climate change and take advantage of the opportunities offered (305-1) (305-2) Direct and Indirect GHG Emissions (tonCO2eq) by smart mobility, we bet on the development of a smart, sustainable, and climate-resilient infrastructure. Year Scope 1 Scope 2 2015 1244 72 Autopistas del Café 2016 1431 72 2017 2,211.4 48.6 2015 273 1 HOW WE MANAGE IT Conexión Pacífico 2 2016 413 11 (103-2) (103-3) 2017 9,599.5 17.0 2015 61 1 In 2017, with the support of

Balanced Progress Gaia Servicios Ambientales, we Malla Vial del Meta 2016 388 43 measured the carbon footprint 2017 423.1 25.4 for the years of 2015, 2016, *The increased emissions of Conexión Pacífico 2 correspond to the start of the construction phase. and 2017. In order to do so, the methodology followed the (302-1) Internal consumption of energy Gj guidelines of Standard ISO Consumption of energy (gj) 2015 2016 2017 14064-1 and of the Greenhouse Gas Protocol. The quantification Internal consumption of energy 7,994 11,471 157,869 of Scope 3 was done under Consumption of energy from 7,347 10,531 156,288 Category 15 - investments non-renewable sources referred to in said guide in the Purchased energy 647 941 1,580 organizational carbon footprint. The consolidation and monitoring Energy intensity of our emissions and those of our Intensity of emissions concessions allow us to be aware Energy intensity of Scope 1 and 2 GHG 16.64 for 2017 gj/ 160.84 of our impacts and to have the for 2017 tonCO2e/con- concessioned km necessary information to make cessioned km decisions about the emission Intensity of emissions reduction and offset plans. of Scope 1 and 2 GHG Energy intensity for 1.02 0.0072 for 2016 tonCO2e/ 2017 gj/ passanger passanger Odinsa Anual Report 2017 71

Airport Concessions LOOKING FORWARD (103-2) Mariscal Sucre International Airport The carbon footprint has been measured at airport concessions for • Reach Level 3 - Optimization the purpose of achieving the Level 3 Accreditation + Neutrality of of the ACA program. the Airport Carbon Accreditation (ACA) program of Airports Council El Dorado Airport International. • Measure Scope 3 within the GHG quantification process. El Dorado Airport Mariscal Sucre Airport • Include spaceholders, contractors, • First airport in Colombia • It has a Carbon Footprint and subcontractors in the airport’s to receive the ACA Level Management Plan climate change project. 1 - Mapping accreditation. to carry out the accreditation • Obtain Level 2 - Reduction In 2015, greenhouse process of the ACA’s certification from ACI. gases were measured Neutral Carbon program. • Implementation of the Solar using the Greenhouse • In 2017, Mariscal Sucre Photovoltaic System (SSFCR, Gas Protocol methodology Airport reached Level 2 for its acronym in Spanish). and the ACA’s ACERT (Reduction) of the Conexión Pacífico 2 quantification tool. ACA program by • The implementation of solar The quantification was demonstrating, through energy during the maintenance audited by To70 as an external verification, and operation stages for tolls, independent third party. a reduction of their tunnels, and electric charging • El Dorado Airport has a carbon footprint in 2016 sources is being evaluated. GHG Reduction Policy. of 584 tons of CO2 Within the framework less than in 2014. of this policy, systems have been optimized to enable the reduction of (305-1) (305-2) Direct and Indirect GHG Emissions (tonCO2eq) Scope 2 emissions in the measurements of the years 2015 and 2016. El Dorado Mariscal Sucre • Energy savings: 2015 2016 2015 2016 1. The DALI (Digital Scope 1 1,535 1,759 733.4 996.2 Addressable Lighting Scope 2 13,528 11,472 3,890.7 3,953.2 Interface) system has led to a savings of 12% in energy. (302-1) Internal consumption of energy 2015 2016 2017 2. Montecarlo System, which regulates the Internal consumption of energy 237,767 272,550 255,495 speed, temperature, Consumption of energy 7,072 64,370 42,650 and quantity of air that from non-renewable sources enters the terminal. Purchased energy 230,695 208,180 212,845

Odinsa Consolidated 2015 2016 2017 Total GHG emissions (305-1) Scope 1 516.54 404.33 406.22 (305-2) Scope 2 116.38 118.12 44.84 (305-3) Scope 3* 688.41 1,177.62 8,916.98 *Odinsa’s Scope 3 corresponds to Scope 1 and Scope 2 of airport and road concessions multi- plied by the percentage of participation. *Scope 3 was quantified under Category 15 - the investments referred to by the Calculation-Oriented Technical Guide and Scope 3 Management in the organizational carbon footprint. 72 Informe de Gestión Informe

Conexión Pacífico 2 employee Balanced Progress

Road safety

(103-1) Our commitment to road safety is evi- HOW WE MANAGE IT (103-2) (103-3) denced by strategies that cover everything from the design and structure of the projects to the In road concessions, we are Road safety is also very coordination with road agencies in the operation committed to the preventive relevant to the operation of and maintenance stage. maintenance of the corridor in airport concessions due to their Our aim is for employees, users, communi- order to ensure smooth and extension and the variety of ties, suppliers, and other stakeholders to return safe travels. actors that intervene in the home safe and sound. In order to do so, we We train our employees to internal and external roads. evaluate and prioritize possible effects on users provide guidance and to ensure These include aircraft, vehicles, that circulate through the concessioned roads timely attention. We also automobiles, machinery, and airports and we promote a culture of good have road assistance, basic equipment, drivers, pedestrians, road etiquette through spaces for participation, mechanics, towing, and pre- visitors, passengers, merchants, information, training, guidance, and awareness hospital services. suppliers, and cyclists. of users, entities, neighbors, and communities in our areas of influence. Odinsa Anual Report 2017 73

Road Concessions

Malla Vial del Meta Conexión Pacífico 2 Progress was made in the collection and evaluation 100% compliance of information for the structure of the General Road with the indicators MANAGEMENT Safety System. Organizational and technical instruments of the Road Safety SYSTEMS implemented in 2016 continued to be used to fulfill the Strategic Plan and obligations related with the inspection and determination of of the concession. incident-concentration sites or segments.

Green Corridor INFRASTRUCTURE Over 600 vertical traffic signs were installed as well as 50,000 linear meters AND SIGNADE and 300 crossings that meet the highest standards of local laws.

Green Corridor Autopistas del Nordeste y Road safety inspections were conducted in Boulevard Turístico del Atlántico which the roads covered by the contract were These concessions have inspected in order to identify risk factors. traffic monitoring plans since 2016 and 2014, respectively. Malla Vial del Meta These plans include regular The first road safety audit was carried out to evaluations and registration feed the General Road Safety System. of incidents, the conditions INSPECTIONS in which they occurred, and Conexión Pacífico 2 analyses of the conditions of Road safety audits are conducted annually the areas in the road where and inspections occur constantly. There most accidents occur. In 2017, are monthly committee meetings held thanks to corrective actions, with the Highway Police and the technical incidents were reduced to zero supervision firm to formulate plans in four critical points, two in of action to respond to any identified each concession. challenges.

Airport Concessions

El Dorado Airport A Strategic Road Safety Plan was demarcation, signaling, and INFRASTRUCTURE implemented and filed with the maintenance activities on the Superintendency of Ports and concessioned roads. Thus, 37% AND SIGNADE Transportation. 100% of infrastructure- of the findings identified within the related action plans were executed with appraisal of road risks were corrected.

El Dorado Airport Contractors underwent 37 audits within the framework of the third party INSPECTIONS management pillar of the Strategic Road Safety Plan. Criteria for the evaluation of this matter were included in the cargo terminal and joint work groups were formed with spaceholders. 74

OAD SAFETY Culture Fostering a culture of road safety promotes the creation of environments of prevention through the education and awareness of road actors so that their decisions are governed by self-care and respect for life and for the health of those who are on the road. With the help of institutional

Informe de Gestión Informe partnerships with local authorities, we implemented awareness strategies for concession employees, drivers, and pedestrians.

Road Concessions

Malla Vial del Meta Autopistas del Nordeste and Boulevard Turístico del Atlántico • • It has a Road Culture • There has been an ongoing road safety campaign Program as part of in the media since 2015, which intensifies during the Contractual Social holidays and key dates. Management Plan. • 6,571 people participated Autopistas del Café in 84 prevention activities • 4,200 people were reached, including 100% as part of the Road Culture of students in the area. Program of the Contractual • Items such as tents, flyers, traffic cones, Social Management and banners were contributed to the road Plan. It included 57 education and prevention processes. prevention days, four quarterly campaigns, and Conexión Pacífico 2 23 pedagogical days at • 17,432 users, 59 campaigns, and 30 educational educational institutions. workshops at 13 schools together with the National Police Force, the Superintendency of Transportation, and the National Infrastructure Agency. Balanced Progress

Malla Boulevard Vial del Autopistas Autopistas Turístico del Conexión Total Number of Meta del Café del Nordeste Atlántico Pacífico 2 road culture awareness campaigns 84 140 1 12 89 326

Airport Concessions

El Dorado Airport • 90% of direct personnel who drive corporate vehicles were evaluated on their knowledge of and aptitude for driving. 99% passed. • 5 awareness campaigns aimed at the airport community. Odinsa Anual Report 2017 75

Technology

Road Concessions

Autopistas del Café • Mobile app by the ayudame.com.co system. Autopistas del Café is a pioneer of projects of this nature, in which we have made progress with sophisticated technologies applied to mobility from a cell phone anywhere on the road. • REV (Registration of Events on the Road) platform that supports the registration of events on the corridor. • Management of communications of the Operations Control Center. • Toll-free line #850.

Autopistas del Nordeste and Boulevard del Atlántico • Road intervention programs for both maintenance and the implementation of new devices and technologies to reduce incidents Road culture awareness day at schools, Autopistas del Café. and accidents.

LOOKING FORWARD (103-2)

El Dorado Airport of the current situation. Autopistas del Nordeste and • Focus on safe infrastructure • Monitor contractual Boulevard del Atlántico strategies in accordance obligations, identify potential • Continue with the “Go Slow” with the Strategic Road risks and sensitive spots. campaign, not just during the Safety Plan. • In the medium term, audit holidays but year-round. • Assess 100% of internal these processes. • Raise awareness among young and external roads. Green Corridor people and transport unions, • Work on road safety with • Have zero road accidents and who are the populations most spaceholders and contractors. carry out operational and risk likely to suffer incidents. • Promote road culture analysis controls to ensure • Implement devices and campaigns with all road such a result. technology to reduce accident actors. Autopistas del Café rates and improve user • In the long term, consolidate • Train all the students of the experience. a road safety management schools in the rural areas of Conexión Pacífico 2 model for international the corridor in road culture. • Achieve the ISO 39001 airports, to which national • Participate in the training certification of the Road airports can attach to as well. processes traffic agencies Safety Management System. Concesión Vial de Los Llanos hold in the schools in the • Launch an impact campaign • In short term, implement a urban areas of the corridor. aimed at users. Road Safety Management • Maintain the institutional System based on a diagnosis partnerships. 76 Informe de Gestión Informe

Fire station at El Dorado airport

Occupational Health and Safety

Balanced Progress (103-1) The protection of lives, health, and safety are a necessary condition for HOW WE MANAGE IT (103-2) (103-3) the achievement of sustainable results. In order to manage Occupational • We created the We manage these aspects both among Health and Safety (OHS), we Emergency Policy. the employees of the concessionaire have a management system • We reviewed and updated and among contractors, subcontractors, designed in accordance with the hazards and risk and commercial operators. This way, we the local legislation of each appraisal matrices, have an impact on the quality of life of operation. Additionally, every emergency plans, and employees and we go beyond their family year a plan is prepared to the matrix of OHS nucleus and community. strengthen the culture of self- legal requirements. We promote a self-care culture that care and reduce risks. During • We strengthened favors the management of risks throu- 2017 at Odinsa: brigades with monthly gh the prevention and minimization of • We evaluated the OHS training sessions. incidents and occupational illnesses Management System • We conducted promotion associated with unsafe acts and condi- in accordance with the and prevention activities tions in each of the activities and stages parameters established by such as: The Happiness of the projects. local regulations. Circuit, Health and Safety Our priority will always be the pro- • We updated our OHS, Road Week, the flu immunization tection of life, health, and safety as the Safety, and Prevention of campaign, business spa, main condition for the fulfillment of the Consumption of Psychoactive and physical and cognitive company’s strategic and sustainable Substances policies. active breaks, among others. growth goals. Odinsa Anual Report 2017 77

Airport Concessions

El Dorado Airport • 2,182 occupational health • Update of physical conditioning and safety inspections technical sheets and medical conducted on spaceholders, sports assessment contractors, subcontractors, of all firefighters. of compliance with the audit and employees. • Mentoring workshop for of the Occupational Health • 80% of employees attended managers and directors and Safety System. Because the “Knowing Yourself” focused on safety. pf this score, we were talks on psychosocial risks. Attendance of 95%. nominated for an Emerald • 100% of ergonomic inspections • Zero serious accidents related Cross. We received an of work stations and training to high-risk activities. honorable mention from the on office ergonomics • 48,995 people who entered Colombian Safety Council for for new employees. the concessioned area to carry the “self-care” poster. • 1,139 active breaks with out different tasks were a compliance of 105%. trained in HSEQ.

Mariscal Sucre Airport • The Occupational Health and Safety Policy is part of the company’s internal Health and Safety Regulations. • The Health and Safety Manual, the General Matrix for the Identification of Risks, and an accident investigation and notification process are all mandatory for commercial operators. • The health and safety process applies to all employees, commercial operators, and contractors.

Road Concessions

Autopistas del Café Malla Vial del Meta Conexión Pacífico 2 • Daily 5-minute talks • The accident rate went down • The procedure on health and safety. from 10.69% to 7.71%. for the transport, storage • Occupational Health and Safety • The rate of incapacitating injuries and handling of chemical Week and healthy lifestyle went down from 0.52 to 0.13. substances was campaigns aimed especially • Accidents went from 19 events put into operation. at good nutrition habits. in 2016, to 15 in 2017. • Safe work standards and • Access to sessions with • The first 7 employees were trained procedures were updated. a clinical psychologist is provided. in the 50-hour virtual OHS course. • The OHS Management • The OHS Management System • 100% of staff who perform System applies to reached a progress of 82% with work at heights and confined all contractors and the support of the Occupational spaces were trained. subcontractors. Risks Administrator. • The hazards and risk appraisal matrix and the emergency plan were updated. Boulevard Turístico del Atlántico and Autopistas del Nordeste • In 2017, accidents and absences • A monthly Occupational Health and Safety Committee related to common illnesses was held with representatives of the company were reduced compared and employees from all departments. to 2015 and 2016. • Two category 5 hurricanes did not affect any employees thanks to the contingency plan. 78

OCCUPATIONAL HEALTH AND SAFETY

Airport El Dorado Mariscal Sucre Concessions 2015 2016 2017 2015 2016 2017 Informe de Gestión Informe Frequency Rate 21.69 28.75 23.27 7.35 1.92 9.64

Severity Rate 466 348 150 22 9 39

Conexión Malla Vial del Meta Autopistas del Café Road Pacífico 2 Concessions 2015 2016 2017 2015 2016 2017 2017

Frequency Rate 12.84 34.07 26.08 60.56 37.68 29.51 4.9

Severity Rate 49.23 150.61 53.89 149.07 157.86 233.83 77.4

Odinsa 2016 2017 of workers are represented in OHS Frequency Rate 5.33 0 committees. (403-1)

Severity Rate 0 0 Balanced Progress

Contractor Conexión Pacífico 2 Odinsa Anual Report 2017 79

LOOKING FORWARD (103-2)

Conexión Pacífico 2 • Minimize absences of work • Continue the timely identification, evaluation, and common origin. and establishment of the risks factors that • Continue to strengthen self-care and are inherent to the work environment in commitment towards the prevention order to determine the appropriate control of work incidents and accidents. measures and promote an organizational • Have 0 accidents. culture in a safe and healthy environment. Green Corridor Boulevard Turístico del Atlántico • Consolidate a culture of safety at work during • Maintain the OHS certification granted by the the maintenance or availability stage. During Ministry of Labor of the Dominican Republic. this stage, there will be a greater exposure of Autopistas del Nordeste staff to traffic due to the fact that the roads • Maintain the OHS certification granted by the will be fully operational. Ministry of Labor of the Dominican Republic. Malla Vial del Meta • Continue to raise awareness among staff • Obtain the OHS system certification about the importance of complying with all the under the standard NTC 18001-2007. provisions issued by the OHS Committees. • Continue to promote self-care to strengthen Autopistas del Café the prevention of occupational incidents • Continue to implement the Occupational and illnesses and to achieve a timely Health and Safety System. identification and treatment • Continue with the activities related to of unsafe acts and conditions. welfare, promotion of health and prevention • Comply with 100% of the standards of work accidents. of the OHS system.

El Dorado Airport Corporate Areas • Implement the safety program • Reintroduction to the OHS system to promote a culture of self-care. for 100% of employees. • Implement strategies aimed • Include a feature in the Odinsa app at controlling hazardous energy. to report incidents, accidents (link to ARL) • Implement the management system and unsafe conditions. for chemical hazards. • Integrated system to manage and monitor • Airport adaptation plan for people with the indicators of Odinsa and its subsidiaries. disabilities or reduced mobility. • Generate a virtual learning community to share Mariscal Sucre International Airport lessons learned, best practices, synergies, • Measure the level of psychosocial risk in and new trends, among other things. 100% of employees. • Strengthen the self-care culture among employees, contractors, and subcontractors so that in the medium term it will transcend the work sphere into other spheres such as family and communities. 80 Informe de Gestión Informe Odinsa Anual Report 2017 81

OUR LEGACY

We always have a service attitude We work today for the future

Conexión Pacífico 2 82 Informe de Gestión Informe

Autopistas del Café

Innovation Our Legacy (103-1) We use infrastructure as a platform to deve- We understand innovation as the development of new lop strategic corridors through a business model that initiatives or applications that have not yet been imple- allows us to take advantage of gaps in the sector, mented in our field and that cause a positive impact on strengthen regional development, and capture asset management, greater user satisfaction, or that a portion of the economic value generated by its represent optimizations. This is why innovation is such construction. We implement and adopt the best practi- an important component of our growth strategy, as ces in the industry and we leverage technologies it will allow us to face the different challenges in the capable of creating or developing the best tools to sector, exploit and develop new business opportunities, achieve such an objective. and remain competitive. Odinsa Anual Report 2017 83

HOW WE MANAGE IT (103-2) (103-3) During 2017, together with Grupo Argos, we made The goals of these theses are: progress in the definition of an innovation strategy • To apply digital technology to monitor to support the evolution of the organization and the and capture infrastructure and user data continuous learning demanded by the industry. Said for simulations and optimization. strategy is based on three investment theses: • To identify technologies and processes • Identify and adopt or develop innovative ideas and that allow us to develop new poly- initiatives that are complementary and establish functional and eco-friendly materials. synergies among the companies in the group. • To integrate the transport, • Improve processes and obtain internal efficiency. communications, energy, and water • Develop new and more efficient materials that have less infrastructure as well as monitoring impact on the environment. and climate management systems, among other aspects.

Airport Identified Opportunities Concessions We have identified initiatives in the digital and materials areas, as well as in the field of sustainability. From the perspective of information (103-2) Mariscal Sucre Airport management, there are opportunities aimed at improving user excellence and supervising collec- • The Passenger Improvement Project was tions and security. We are determined to evaluate implemented to reduce wait times and improvements to the mechanical characteristics improve user experience. of materials by involving local and international • Like the smart business platform Smart cutting-edge technology, such as smart pavement. Airports, which allows us to analyze As for sustainability, we will install equipment to trends and make decisions, a line generate photovoltaic energy to supply part of the monitoring and management system consumption of the national interconnected grid, was implemented to measure service and we will build the control center building with times in the emigration area. LEED features and electric vehicle charging sta- • The self-check-in process for tions. All identified initiatives will be analyzed and passengers and baggage evaluated with cost-benefit criteria over different was put into operation periods of time and in accordance with how actua- in coordination with five airlines. lly feasible it is to apply them to different projects. • Ten automatic boarding gates were installed.

El Dorado Airport • A passenger interaction app was put LOOKING FORWARD (103-2) into service. • Close to 100 m2 of vertical gardens El Dorado Airport were installed to improve the visual • In 2018, it is expected that 15% of the airport’s energy experience and to help regulate consumption will be generated through photovoltaic panels temperature and reduce noise. installed in certain sectors of the roof. • Feasibility studies were conducted Mariscal Sucre International Airport for the installation of the photovoltaic • In 2018, it is expected the biometric Fly to Gate system systems on the airport’s roofs. will be implemented to process and serve passengers. • Service levels will be measured throughout the entire terminal. 8484 tión Informe de Ges - Informe Informe de Gestión Informe

Supplier Conexión Pacífico 2 contractors Management

(103-1) Our suppliers and contractors are strategic allies that allow us to fulfill our contractual obligations and thus build and operate high-quality road and airport infrastruc- 100% of Mariscal Sucre Airport ture projects in a safe manner. The selection, monitoring, suppliers rated at levels 1 and and development of suppliers based on the principles of transparency and trust has allowed the company to fulfill 2 of criticality obtained their its contractual obligations and generate value for its stake- certifications taking into account holders by carrying out projects that favor connectivity and local development in the different geographical regions environmental, social, and where we operate. Supplier management with criteria that promote the sustainability of the chain of supply allows economic criteria, among others. the prevention of associated risks, saves implementation time and costs, ensures a higher administrative efficiency, consolidates institutional relationships, and promotes trust from stakeholders.

HOW WE MANAGE IT (103-2) (103-3)

Our Legacy In order to promote fair processes and a healthy They also analyze criteria such as experience, competition in the market, we have selection criteria service background, performance and transparency, that must be followed during processes to contract financial capacity, and price and quality of raw goods and services to ensure an objective and materials. The above, aside from ensuring the transparent election under the principles of efficiency, fulfillment of the contractual obligations, also favors quality and responsibility, which in turn favors the compliance with sustainability standards that prevent creation of collaborative bonds with our allies as well associated risks; reduce environmental impacts; as the sustainability of the chain of supply. protect the life, health, and safety of everyone In order to implement these guidelines, our staff is who is part of our projects; and good relationships trained in the selection of suppliers and contractors. with local stakeholders. Odinsa Anual Report 2017 85

Selection Process Our strategies to manage contractors are focused on purchase planning and promoting long-term strategic partnerships that guarantee quality and give the company a greater capacity for negotiation and thus reduce costs. thus reduce costs. In this regard, the development of a supplier database systematized by commodities associated with the different goods and services provided allowed El Dorado Airport to increase its negotiation capacity and obtain savings of 13.31% on its total purchases. These negotiations include a strategic five-year partnership for the maintenance Mulatos Tunnel, Conexión Pacífico 2 service of the baggage handling system (BHS), one of the most important in the airport’s operation, which resulted in savings of 16%. of products and services, with of contractors. In regards to the Leveraged by the implementation monitoring and evaluation of control and administration of of the Comprehensive Management suppliers. The airport operations contracts, a process was carried System, the supplier management of El Dorado and Mariscal Sucre out in the ERP which notifies process begins with purchase include the JD Edwards ERP supervisors, contract directors, planning, formalization of the (Enterprise Resource Planning) and Purchasing 90 days before contractual relationship, and software, which enables a better contracts are set to expire. is followed by the verification administration and management

Monitoring and Evaluation The standards of quality and sustainability of our suppliers in regards to the rating of contractors in order to improve generate trust, both in our financiers and in our users. purchasing processes. In this sense, the quarterly This is why, aside from having the aforementioned selection supplier evaluation indicator showed a rate of compliance criteria, these standards are monitored and certified pursuant to the standard established (95%) throughout through audits performed by independent third parties. the year. It is also important to point out that 100% of This has allowed disbursements to take place as planned, suppliers rated by levels 1 and 2 of criticality obtained thus ensuring the continuity of the project. The certification their certifications taking into account environmental, is supported in a Quality Management System (ISO 9001) social, and economic criteria. whose main focus is to review the joint correlation between In order to control risks associated with corruption, money the quality of the product, the requirements, technical laundering, and terrorism financing, the airport evaluated specifications, any tests performed, and the documentation its suppliers with the help of programs, such as Risk of the manufacture processes. Mitigation in Contracting, through the insurance broker It is important to point out that Mariscal Sucre Airport Delima Marsh, and the LAFT Validation System through has been implementing additional controls since 2017 the use of the Datalaft Inspektor platform. 86

SUPPLIER MANAGEMENT

Development LOOKING FORWARD (103-2) At Odinsa, we know that partnerships with our suppliers At Odinsa, we will continue to work for

Informe de Gestión Informe generate joint growth. For example, a sustainable chain of supply that is in during the construction of Mariscal line with the best social, economic, and Sucre Airport, we promoted the environmental standards. To do so, in 2018 training of local companies with we will design a hiring manual that ensures the manufacturers of critical airport our selection, monitoring, and evaluation systems and promoted agreements processes include sustainability criteria. among said companies for El Dorado Airport representation in Ecuador. • Develop a new procedure in the As a result, today we have local JD Edwards software for macro companies that have grown and negotiations that allows us to optimize developed by providing specialized recurring processes. services to the airport. Mariscal Sucre Airport The purchasing volume has served • Have a finalized supplier rating process as an engine for the growth and that is applicable to all purchases and motivation of all our suppliers, start the supplier evaluation process for which favors local development the compliance matrices. through companies that promote • Continue the development programs sustainable models of with more local suppliers specialized in development. airport products and services. • Find synergies with other actors in the industry in the medium and long term. Autopistas del Café • Obtain a higher number of suppliers with responsible activities in terms of the environment and the community to % LOCAL PURCHASES allow us to maintain and improve the profitability of the company. Odinsa 82% 99% Green Corridor • Consolidate long-term relationships with suppliers that master the engineering Autopistas 90% del Café specialties the project requires. Malla Vial del Meta Autopistas 99% • An ERP system to control and del Nordeste automate the purchasing process and to control corruption risks Boulevard Turístico del 99% associated with suppliers. In terms

Our Legacy Atlántico of development, for the purpose of promoting and recognizing excellence, Conexión 99% Pacífico 2 the implementation of an award to the supplier of the year has been El Dorado considered. Airport 89%

Mariscal Sucre 74% Airport Odinsa Anual Report 2017 87

Sanitary services contractors at El Dorado Airport 88

HOW WE MANAGE IT Community (103-2) (103-3) Relationships Fulfilling our contractual obligations and the commitment to implementing the Ecuador (103-1) We believe in the positive impact of road Principles favors the social license to operate

Informe de Gestión Informe and airport infrastructure on economic develop- and ensures the development of responsible ment. That is why we have decided to participate in operations. Our concessions establish local regions with opportunities for growth, where private relationship plans focused on the following individuals and the government share a commit- aspects: ment to investment in infrastructure. Beyond fulfilling our social and environmental obli- Recognition of the organizational forms gations derived from the concession contracts, our of the communities. purpose is to make balanced progress and make Local hiring for the execution our mark by being allies of local development. of the work. We understand the importance of maintaining good relationships with the communities where we Relationships with local actors. have influence.

Open, direct, and transparent communication to: Project impact management.

Manage Establish trusting Social capital our impacts relationships with adequately communities we Road Safety influence Mechanisms for filing claims and complaints

Partnerships with key actors to contribute to local development and social inclusion.

Identified Impacts (413-2)

Increased vehicular traffic

Property valuation

Noise

Hiring of local labor

Acquisition of properties Our Legacy

Environmental impacts

Economic development

Connectivity Suroeste compra Suroeste Program Conexión Revitalization of local economy Pacífico 2 Odinsa Anual Report 2017 89

Dialogue We promote trusting relationships by establishing direct and close communication, and providing communities timely and clear information in participative spaces.

Airport Road Concessions Concessions

Malla Vial del Meta Boulevard Turístico del Atlántico Mariscal Sucre Airport • 17 work groups with 109 • The Community Relationships • 4,191 participants in leaders of Community Action Plan establishes yearly permanent processes Councils in Puerto López, Puerto relationship goals with related to the Public Gaitán, San Martín, Guamal, social leaders. Consultation and Granada, and Villavicencio. Green Corridor Participation Plan. Autopistas del Café • Direct contact with communities • 3,000 youngsters • 38 informative meetings. for the solution of doubts, and children visited During the construction of La questions or claims. the airport facilities. Paz relief road in Chinchiná Conexión Pacífico 2 El Dorado Airport and the Bosques de la • 14 sustainability training • Meetings with leaders Acuarela pedestrian bridge sessions. 29 civic-environmental in Engativá and Fontibón in Dosquebradas, bimonthly days. 40 community about the infrastructure meetings were held with participation committees. projects, employment, authorities and social leaders. and channels of communication. Skills and Local Road Concessions Airport Development Concessions

The construction of Malla vial del Meta El Dorado Airport infrastructure implies • 92% of labor hired from the local • 98% of labor hired locally. the demand of labor community. Mariscal Sucre that develops skills in Conexión Pacífico 2 • The shop Nuestra Huerta was those who participate • 543 unskilled laborers (66%) from opened, which is a space as employees, the direct area of influence. to commercialize agricultural contractors or • 133 merchants, hoteliers, products from the area closest suppliers. This institutions, banks, and 44 brands to the operations. strengthens local of coffee in the region participated • 504 people from nearby competitiveness and in the first round of the program communities were trained local employability. “Suroeste compra Suroeste” in English and improve (“The Southwest Buys from their work profile. the Southwest”).

Social capital Malla Vial del Meta Road Concessions • 37 community leaders and municipal officials attended the First Participation and Leadership Congress organized with the support of SENA. 90

COMMUNITY RELATIONSHIPS Social Investment/Donations Airport Road Concessions Concessions

Autopistas del Café Mariscal Sucre Airport

Informe de Gestión Informe • 1,000 school packs were donated to students • 126 scholarships given to children and teens in 20 educational institutions. in vulnerable conditions, with catastrophic Autopistas del Nordeste illnesses, and low economic resources. • 150 families affected by the hurricanes of 2017 • 2016 talks in six neighboring communities about received basic necessity items. biodiversity, environmental pollution, adequate • 925 children received school supplies. use of water, and global warming. Conexión Pacífico 2 • 420 children receive support to practice soccer • 96 children and teens in La Pintada were in seven schools in nearby communities. benefited by the strengthening of the music school and the maintenance of the instruments.

Protection of Historic and Cultural Heritage

Road Concessions

Autopistas del Café Conexión Pacífico 2 • During the execution of the preventive archeology program • 368 deposits evidenced “Archaeological Monitoring and Rescue in La Paz Relief Road”, during the prospecting evidence was found of ancient settlers, bone remains, and C-14 dated process. carbon samples that permitted the corroboration and broadening of • 36 rescues of sites chronological inferences. Findings were delivered to the Museum of with high archaeological Archeology and History of the University of Caldas. potential.

LOOKING FORWARD (103-2) We will continue to strengthen We will prioritize direct Conexión Pacífico 2 relationship mechanisms with relationships with communities • Institutional strengthening local communities based on to identify and address • and training activities the mapping of key actors and questions or claims in will be ongoing in order on timely, transparent, and a timely manner. to promote employability constructive communication Mariscal Sucre Airport and the generation

Our Legacy with local authorities and • A training center will be of jobs through communities. created to offer training entrepreneurial initiatives. We will continue to report in skills related to airport Autopistas del Café to users and neighboring operations. • Participation committees communities the events El Dorado Airport will be strengthened and at concessions in real time, • Participation in the the strengthening of social through digital platforms Social Responsibility capital will be promoted and social media, and Airport Committee will through participation and we will facilitate be strengthened. Said leadership conferences. communication with them. committee is created and led by Civil Aviation. 91

VIP lounge, International terminal, El Dorado Airport 92

(103-1) Transport infrastructure is a re translates into connectivity, growth, User way to facilitate the delivery of goods competitiveness, and development. and services that promote economic At Odinsa, we are committed to pro- Satisfaction growth and the mobility of people, viding users safe and efficient infras- because well-planned, designed, and tructure that also offers the best expe-

Informe de Gestión Informe operated road and airport infrastructu- rience to our passengers and travelers.

HOW WE MANAGE IT (103-2) (103-3)

Airport Concessions

El Dorado Airport 100 90 99 % 99 % 99% 99 % 99 % 99 % 99 % 99% 99% 99 %

El Dorado Airport got a five-star 98 % 98 % 96 % 96 % 96% 96 % 96 % 95 % 95 % 95% 94 % 93 % rating in the International World 80 93% Airport Awards ranking and was 70 recognized as the best in South 60 America for the third consecutive 50 year by Skytrax. Among more 40 than 3,400 passengers surveyed, El Dorado obtained a user 30 satisfaction level of 99% and four 20 stars out of five. 10 0 Cargo Terminal 2012 2013 2014 2015 2016 2017 100 Puente aéreo International terminal Domestic terminal Total 90

80 With a voluntary and supplementary investment of COP 70

420,000 million, in 2017 the expansion of El Dorado 60 will provide millions of users greater comfort, new services, 50 and shopping areas. As of December 31, 75 commercial 40 spaces were authorized, which is equivalent to 23 30 contracts, compared to the 21 that were planned, 20 that is, 128% of the planned 100%. 10 0 2014 2015 2016 2017 On-Site Phone Total

El Dorado Today Our Legacy

With the expansion of the terminal, Close to 24,000 m 2 Over 30 commercial 223,700 m2 are now complete of commercial areas brands

Capacity for 47 domestic routes 40 million passengers and 49 international routes 6 VIP lounges Odinsa Anual Report 2017 93 In 2017, El Dorado ranked 42nd in the Top 100 Airports and it is the number one Latin American airport on the list.

VIP lounge, International terminal, El Dorado Airport

Passenger Satisfaction 2010 - 2017 Mariscal Sucre Airport 100 It obtained third place among the airports 90 of Latin America and the Caribbean in the 80 Airport Service Quality (ASQ) Awards, given 70 out by Airports Council International (ACI), 60

50 after having obtained second place for two consecutive years. Skytrax named it the 40 best regional airport in South America for 30 the second consecutive year and it was 20 recognized as having the best staff in the 10 0 region. It also maintained the four-star 2010 2011 2012 2013 2014 2015 2016 2017 rating for quality of service. Additionally, Satisfaction Average Linear (Satisfaction) it received the World Travel Award for leading airport in South America for the Additionally, a citizen perception survey was conducted, fourth year in a row, and the Mayor of Quito which yielded the following results: recognized Corporación Quito as an honorary ambassador of the city. The level of user satisfaction with Mariscal has increased: 2017 CITIZEN PERCEPTION SURVEY it went from 68.48% in 2012 to 87.72% in 2017. The opinions of the citizens of The airport contributes to development (increase of 11% vs. 2016) Quito, Cuenca, and Guayaquil confirm the 89% perception about the positive impacts caused by the airport on the touristic and economic The airport attracts more international tourists (increase of 11% vs 2016 ) dynamics of the city of Quito and the region. 89.7%

The best airport in the country (increase of 21% vs. 2016) 92% 94

USER SATISFACTION

Road Concessions (103-3) Informe de Gestión Informe Malla Vial del Meta Conexión Pacífico 2 It is in the pre-operational phase. However, The survey conducted in 2017 yielded the following results: because it has the so-called functional unit 0, it is the object of measurement of the compliance index associated with user service. In accordance with the provisions of the contract, it has conducted on journey

satisfaction surveys among the users of the road Time spend in order to determine their perception. In 2017, 70% of respondents had a favorable perception. The positive result has allowed the concession to receive 100% of the compensation, with no Condition discounts for non-compliance, which is equivalent of the road to 23% of the compensation it is entitled to by Poor Good Excellent virtue of functional unit 0. The results of the 2017 level of service showed operational excellence with 100% compliance with the 2017 USER SATISFACTION operation indicators of the National Infrastructure Agency. SURVEY Additionally, 100% of estimated response times and road operation indicators were met. By the end of the year, Surveyed: 1,200 3,291 events had been reported, all of which were dealt with within contractual times. Autopistas del Café has Excellent 36% app-type interactive systems available to download on cell phones, computers and tablets. These systems are Good 34% used to manage the entire road corridor and to maintain contact with users. Thanks to these tools, 100% of Fair 8% reaction and response times to incidents reported on our road during 2017 were met. Poor 7%

No 16% answer Resolved incidents: 164 (100%)

New communications and customer service channels have In order to ensure user satisfaction supported been made available to users. El Dorado, Autopistas del

Our Legacy by efficient, safe, and high-quality operations, Café, and Conexión Pacífico 2 have mobile apps that provide Conexión Pacífico 2 promotes a work culture information on the following: through a series of training strategies, • Condition of roads assignment of necessary tools for the • Attractions: tourist sites and shopping operation, monitoring and compliance with the • News Management System and of the monitoring • Reports of events committees held jointly with the technical • Flight status supervisors and the Highway Police in order • Maps and directories to provide greater safety and efficiency to the • Tolls services provided to users of the road. • Service requests • Weather Odinsa Anual Report 2017 95

El Dorado Airport

LOOKING FORWARD (103-2) HUMAN RIGHTS

Respect for and the Mariscal Sucre Airport • In the long term, we will • promotion of human rights • Reach the highest level have a more robust system are crucial to our vision of satisfaction both in for the operational stage so of sustainability. We will process measurement that it ensures compliance align with the UN’s Guiding surveys and in the ASQ. with the contractual Principles on Business • Maintain the four-star indicators and thus avoid and Human Rights. We Skytrax rating. penalties in compensation will begin by adopting a El Dorado Airport and maintain the IMS policy that reflects our • Continue to be recognized certification. commitment, and includes as the best airport in South Conexión Pacífico 2 the identification of America. • Improve the efficiency risks and their appraisal • Offer innovative solutions of interactions from the for the development of to achieve a seamless Operations Control Center due diligence and the travel process with and with users through establishment of measures passengers. the improvement of the for timely attention and Malla Vial del Meta communications systems reparation measures. • In 2018, the concession in the segments of road will have to obtain under the responsibility of certification in all three the concession. systems, thus starting the continuous improvement of the company’s processes. 96 Informe de Gestión Informe Odinsa Anual Report 2017 97

CONSOLIDATED

FINANCIAL STATEMENTS

Conexión Pacífico 2 98

CONSOLIDATED FINANCIAL STATEMENTS Informe de Gestión Informe Financial Statements Odinsa Anual Report 2017 99 100

CONSOLIDATED FINANCIAL STATEMENTS ODINSA S.A. Consolidated Financial Position Statements As of December 31, 2017 and 2016 (Figures in thousands of Colombian Pesos) Informe de Gestión Informe NOTE 2017 2016 ASSETS CURRENT ASSETS Cash and Cash Equivalents 9 192,265,788 311,590,615 Restricted cash 9 646,872,140 523,647,103 Trade receivables and other accounts receivable 10 309,816,511 398,378,258 Inventories 11 133,240 247,653 Other non-financial assets 12 8,316,070 13,338,480 Other financial assets 14 - 2,257 Tax assets 19 41,508,395 28,054,602 Assets classified as held for sale 20 41,738,047 342,358,651 TOTAL CURRENT ASSETS 1,240,650,191 1,617,617,619

NON-CURRENT ASSETS Investments in associates and joint ventures 13 1,258,486,061 990,742,935 Property, plant and equipment 17 24,075,667 40,417,435 Investment properties 18 7,262,912 39,117,421 Deferred income tax assets 19 48,888,938 49,684,944 Other financial assets 14 317,324 422,079 Intangible assets, net 16 131,079,269 137,410,325 Trade receivables and other accounts receivable 10 2,411,499,725 2,325,691,501 Other non-financial assets 12 7,291,697 7,334,458 TOTAL NON-CURRENT ASSETS 3,888,901,593 3,590,821,098

TOTAL ASSETS 5,129,551,784 5,208,438,717 EQUITY AND LIABILITIES Estados financieros EQUITY ATTRIBUTABLE TO THE OWNERS Share capital 29 19,604,682 19,604,682 Issue premium 354,528,587 354.528.587 Year results 670,201,765 670.201.765 Other comprehensive income 121,023,458 121.023.458 Accumulated earnings (229,121,173) (229.121.173) Reserves 29 1,072,633,626 499,067,792 Other components of equity (6,541,592) (6.541.592) Non-controlling interest 382,476,273 382.476.273 TOTAL EQUITY 1,906,116,966 1,811,239,792 Financial Statements Odinsa Anual Report 2017 101

NOTE 2017 2016 CURRENT LIABILITIES Loans and obligations 21 374,246,957 501,667,201 Trade payables and other accounts payable 26 167,374,418 149,209,692 Tax liabilities 19 20,567,896 22,858,916 Other non-financial liabilities 24 53,617,185 71,108,882 Employee benefits 25 11,900,995 7,239,304 Other provisions 23 - 2,552,524 Securities issued 28 135,538,084 40,885,749 Liabilities classified as held for sale 20 - 190,874,829 Other financial liabilities 356,943 - - Income received in advance - - TOTAL CURRENT LIABILITIES 764,860,793 986,397,097

NON-CURRENT LIABILITIES Loans and obligations 21 1,097,892,495 1,303,120,406 Trade payables and other accounts payable 26 148,228,966 231,362,367 Other non-financial liabilities 24 218,015,168 203,823,225 Employee benefits 25 2,772,273 4,935,525 Other provisions 23 96,678,020 112,321,091 Deferred tax liabilities 19 119,707,675 50,761,915 Securities issued 28 775,279,428 504,477,299 TOTAL NON-CURRENT LIABILITIES 2,458,574,025 2,410,801,828 TOTAL LIABILITIES 3,223,434,818 3,397,198,925 TOTAL LIABILITIES AND EQUITY 5,129,551,784 5,208,438,717 The accompanying notes are integral parts of the financial statements.

CONSOLIDATED FINANCIAL STATEMENTS ODINSA S.A. Consolidated Income Statement For the years ended Dec. 31, 2016 and Dec. 31, 2017 (Figures expressed in thousands of Colombian pesos) Informe de Gestión Informe NOTE 2017 2016

CONTINUOUS OPERATIONS

Revenue from regular business activities 30 740,709,514 1,360,747,519

Share in the gains (losses) of associates and joint 13 ventures posted using the equity method 110,210,681 124,846,930

Cost of sales (244,759,300) (244.759.300) GROSS PROFIT 1,240,835,149 1.240.835.149 Other revenues 32 73,562,410 20,238,361

Administrative expenses 31 (189,898,271) (163,164,466)

Other expenses, net 32 (24,133,579) (67,607,579)

OPERATING GAIN 1,030,301,465 1.030.301.465

Financial income and expenses, net 33 (182,032,539) (140,511,981) GAINS BEFORE TAXES 889,789,484 889.789.484

Tax expense 19 (85,523,870) (50,112,580) GAINS OF THE GROUP FOR CONTINUOUS 198,241,425 839,676,904 OPERATIONS DISCONTINUED OPERATIONS

Net gains (losses) of the Group for discontinued 20 1,345,488 (329,797,731) operations

NET GAINS FOR THE YEAR 199,586,913 509,879,173 GAINS (LOSSES) ATTRIBUTABLE 55,580,835 (160,322,592) TO NON-CONTROLLING INTEREST

GAINS ATTRIBUTABLE TO THE OWNERS 144,006,078 670,201,765 OF THE PARENT

EARNINGS PER SHARE (IN PESOS) 1,018 2,601

From continuous operations 1,011 4,283

From discontinued operations 7 (1,682)

Las notas que se acompañan son parte integral de los estados financieros.

ODINSA S.A. Consolidated Statement of Comprehensive Income For the years ended Dec. 31, 2016 and Dec. 31, 2017 (Figures expressed in thousands of Colombian pesos)

NOTE 2017 2016

GAINS ATTRIBUTABLE TO THE OWNERS 144,006,078 670,201,765 OF THE PARENT

Equity method 13 (14,098,072) 863,621

Difference from exchange rates 13 (24,970,590) 7,571,426

Employee benefits 17,215 -

Difference from exchange rates - discontinued 20 1,116,630 (1,116,631) operations

ITEMS RECLASSIFIED AFTER INCOME (37,934,817) 7,318,416

COMPREHENSIVE GAINS (LOSSES) ATTRIBUTABLE (94,439) (2,862,269) TO NON-CONTROLLING INTERESTS COMPREHENSIVE INCOME ATTRIBUTABLE 105,976,822 674,657,912 TO OWNERS OF THE COMPANY

The accompanying notes are integral parts of the financial statements.

MAURICIO OSSA ECHEVERRI MARIO ALONSO GARCÍA ROMERO JORGE ELIÉCER MORENO URREA Legal Representative Accountant P.C. 69852-T Tax Auditor P.C. 42619 - T (see attached certification) (See attached certification) Member of PricewaterhouseCoopers Ltda. (See attached report) - - 104 - 4,456,146 (4,099,772) 41,028,879 (2,248,603) 44,475,588 (13,907,098) (95,000,370) 285,944,156 509,879,174 (38,029,256) 199,586,913 974,031,209 TOTAL EQUITY TOTAL 1,811,239,792 1,906,116,966 ------(94,439) (See attached report) Tax Auditor P.C. 42619 - T Auditor P.C. Tax (2,862,270) 44,475,588 55,580,835 INTEREST 285,944,156 (160,322,591) 382,476,273 482,438,257 JORGE ELIÉCER MORENO URREA 259,716,978 NON-CONTROLLING NON-CONTROLLING Member of PricewaterhouseCoopers Ltda. Member of PricewaterhouseCoopers ------Informe de Gestión Informe (613,042) OTHER (4,296,112) OF EQUITY (2,245,480) (6,541,592) (7,154,634) COMPONENTS ------7,318,416 OTHER INCOME (37,934,817) 83,088,641 113,705,042 121,023,458 COMPREHENSIVE Accountant P.C. 69852-T Accountant P.C. - - - (See attached certification) ------MARIO ALONSO GARCÍA ROMERO 45,324,991 INCOME (13,907,098) ACCUMULATED ACCUMULATED (274,446,164) (229,121,173) (243,028,271) ------144,006,078 (95,000,370) 670,201,765 (133,190,039) (575,201,395) 133,190,039 FINANCIAL YEAR RESULTS OF THE RESULTS 670,201,765 144,006,078 ------Legal Representative (see attached certification) MAURICIO OSSA ECHEVERRI (4,099,772) (1,635,561) DONATIONS 133,190,039 575,201,395 RESERVE FOR RESERVE 291,479,351 420,569,618 994,135,452 INVESTMENTS AND ------LEGAL RESERVE 78,498,174 78,498,174 78,498,174 ------PREMIUM SHARE ISSUE 354,528,587 354,528,587 354,528,587 ------CAPITAL 19,604,682 19,604,682 SUBSCRIBED 19,604.682 AND PAID SHARE AND PAID Transfers from other Transfers comprehensive income to accumulated earnings CHANGES IN EQUITY: Other movements Other movements Other comprehensive income Gains for the year Non-controlling interest Non-controlling interest Other comprehensive income Gains for the year on wealth Tax Appropriations BALANCES ON 2016 DECEMBER 31, Appropriations Ordinary dividends distributed in cash FINAL BALANCE ON 2017 DECEMBER 31, CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED The accompanying notes are integral partsThe accompanying of the financial statements. CHANGES IN EQUITY: Tax on wealth Tax OPENING BALANCE AS OF 2016 JAN. 1,

ODINSA S.A. Consolidated Statement of Changes in Equity 2017 2016 and Dec. 31, the years ended Dec. 31, For (Figures expressed in thousands of Colombian pesos) Financial Statements Odinsa Anual Report 2017 105

ODINSA S.A. Consolidated Cash Flow Statements For the years ended Dec. 31, 2016 and Dec. 31, 2017 (Figures expressed in thousands of Colombian pesos)

2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES NET GAINS FOR THE YEAR 199,586,913 509,879,173 Adjustments to reconcile the net profits of the year with the (used) cash provided by operating activities: Income tax expense 85,523,870 18,761,170 Share in the income of associates and joint ventures (110,210,681) (124,846,931) Financial expenses recognized in the results of the period 197,971,089 - Interest income recognized in the results of the period (203,887,062) - Expenses recognized in relation to employee benefits and provisions (13,125,293) 46,856,596 Profit (loss) from purchases in advantageous terms - (665,093,736) Net profits (losses) from the sale of property, plant and equipment (56,185) 811,697 Net Profits (losses) from the sale of investments (37,837,239) (64,506,306) Net profits (losses) of the fair value arising from investments - (10,893,067) Net profits (losses) of the fair value arising from investment properties (1,231,838) - Profits (losses) from the valuation id financial instruments measured at fair value through - 383,403,807 profits and losses Net losses arising from the sale of non-current assets available for sale and other assets 3,146,581 - Net losses (profits) from the valuation of financial instruments measured at fair value 102,905 - Net impairment on non-current assets recognized in the results of the period 1,979,193 - Depreciation and amortization of non-current assets 49,494,530 37,202,706 Exchange difference recognized in income of financial instruments 128,467 - Other adjustments to reconcile the gains (losses) (4,725,899) (15,785,799) 166,859,351 115,789,310

CHANGES IN ASSETS AND LIABILITIES:

Trade receivables and other accounts receivable (62,186,100) 89,550,294 Inventories 110,343 7,283,873 Other assets - taxes, expenses paid in advance 6,028,139 (21,281,193) Other financial assets 84,011,997 3,041,098 Current tax assets 4,825,333 382,982 Investments in associates and joint ventures - 151,725,448 Trade payables and other accounts payable 19,587,763 16,171,411 Provisions (2,623,677) 2,265,681 Deferred revenues 1,258,314 140,402,403 Employee benefits 4,662,960 (8,430,855) Securities issued - 40,545,738 Other liabilities (19,088,429) (104,198,507) Interests received 12,824,117 1,330,849 Tax paid on wealth (2,381,946) - Income tax paid (37,872,490) (23,412,353) Dividends received 59,719,993 3,936,180 NET CASH FLOW USED IN OPERATING ACTIVITIES 235,735,668 415,102,359

CONSOLIDATED FINANCIAL STATEMENTS

Informe de Gestión Informe DEC-31-17 DEC-31-16

CASH FLOWS BY INVESTMENT ACTIVITIES Acquisition of properties, plant and equipment (6,784,675) (56,695,289) Product of the sale of properties, plant and equipment 2,149,603 1,033,567 Product of the sale of investment properties 4,000,000 - Acquisition of intangible assets (67,188,074) 40,595,207 Increase/decrease of interests in associates and joint ventures (102,360,434) 292,217,547 Product of the sale of interests in associates and joint ventures 66,347,157 37,336,063 Increase/decrease of other assets 80,223,036 (111,868,378) CASH FLOWS GENERATED BY INVESTMENT ACTIVITIES (23,613,387) 202,618,717

CASH FLOWS BY FINANCE ACTIVITIES Bond issue 400,000,000 - Payment of bonds and commercial papers (38,554,300) (56,737,058) Increase/decrease of other financing instruments (247,425,485) - Dividends paid (131,066,151) - Interests paid (188,815,582) (89,888,825) Increase/decrease of other liabilities - (17,900,344) CASH FLOWS GENERATED (USED) BY FINANCING ACTIVITIES (205,861,518) (164,526,227)

NET INCREASE (NET DECREASE) OF CASH AND CASH EQUIVALENTS 6,260,764 453,194,849 Cash and cash equivalents at the beginning of the period 835,237,718 382,042,869 Effects of exchange rate variation on cash and cash equivalents held in foreign currency (2,360,554) - CASH AND CASH EQUIVALENTS AS OF DECEMBER 31 839,137,928 835,237,718

The accompanying notes are integral parts of the financial statements.

SEPARATE

FINANCIAL STATEMENTS

El Dorado Airport 108

SEPARATE FINANCIAL STATEMENTS Informe de Gestión Informe Financial Statements Odinsa Anual Report 2017 109 110

SEPARATE FINANCIAL STATEMENTS Informe de Gestión Informe Financial Statements Odinsa Anual Report 2017 111

ODINSA S.A. Separate Financial Position Statements As of December 31, 2017 and December 31, 2016 (Figures in thousands of Colombian Pesos)

NOTE DEC-31-17 DEC-31-16

ASSETS CURRENT ASSETS Cash and Cash Equivalents 7 7,667,512 47,421,427

Trade receivables and other accounts receivable 8 137,182,134 269,980,598

Tax assets 9 21,434,929 9,204,364

Other non-financial assets 10 430,047 236,996

Assets classified as held for sale 11 41,738,047 11,947,474 TOTAL CURRENT ASSETS 338,790,859 338.790.859

NON-CURRENT ASSETS

Investments in subsidiaries, associates and joint ventures 12 1,863,707,731 1,460,262,900

Property, plant and equipment 13 4,930,788 18,369,659

Investment properties 14 - 33,159,080

Intangible assets other than capital gain 15 1,523,201 850,633

Deferred tax assets 9 22,156,668 36,203,351

Other financial assets 16 315,146 418,049

Other non-financial assets 10 7,063,964 7,264,682 TOTAL NON-CURRENT ASSETS 1,556,528,354 1.556.528.354

TOTAL ASSETS 2,108,150,167 1,895,319,213

EQUITY AND LIABILITIES EQUITY Subscribed and paid share capital 23 19,604,682 19,604,682

Issue premium 23 354,528,587 354,528,587

Year results 23 144,006,078 670,201,765

Accumulated earnings 23 (243,028,271) (229,121,173)

Reserves 23 1,072,633,626 499,067,792

Other comprehensive income 83,088,641 121,023,458

Other components of equity (7,154,634) (6,541,592) TOTAL EQUITY 1,423,678,709 1,428,763,519 The accompanying notes are integral parts of the financial statements.

SEPARATE FINANCIAL STATEMENTS SEPARATE STATEMENT OF FINANCIAL POSITION Informe de Gestión Informe NOTE 2017 2016

LIABILITIES CURRENT LIABILITIES Financial obligations 17 59,628,129 146,461,118

Trade payables and other accounts payable 18 63,037,699 68,052,632

Employee benefits 19 8,918,926 5,019,282

Current tax liabilities 9 14,449,132 282,018

Other non-financial liabilities 20 3,112,825 4,511,308

Securities issued 21 84,512,182 332,449

Liabilities classified as held for sale 22 - 6,758,784 TOTAL CURRENT LIABILITIES 233,658,893 231,417,591

NON-CURRENT LIABILITIES Financial obligations 17 16,569,060 131,328,474

Trade payables and other accounts payable 18 - 456,970

Employee benefits 19 2,287,842 4,593,818

Deferred tax liabilities 9 37,179,283 19,648,978

Securities issued 21 394,776,380 79,000,000

Other non-financial liabilities 20 - 109,863 TOTAL NON-CURRENT LIABILITIES 450,812,565 235,138,103 TOTAL LIABILITIES 684,471,458 466,555,694 TOTAL LIABILITIES AND EQUITY 2,108,150,167 1,895,319,213

The accompanying notes are integral parts of the financial statements.

ODINSA S.A. Separate Statement of Comprehensive Income As of December 31, 2017 and December 31, 2016 (Figures in thousands of Colombian Pesos)s)

NOTE DEC-31-17 DEC-31-16

CONTINUOUS OPERATIONS

Revenue from regular business activities 24 67,010,941 117,367,757

Share in gains (losses) of associates and joint ventures 193,784,792 651,045,609 posted using the equity method

Cost of sales (1,614,277) (4,348,854) GROSS PROFIT 259,181,456 764,064,512 Other revenues 25 19,205,101 10,297,390

Administrative expenses 26 (68,360,680) (49,641,576)

Other expenses 27 (8,131,358) (10,255,445)

GAINS (LOSSES) ON OPERATING ACTIVITIES 201,894,519 714,464,880

Financial income 28 16,815,662 11,994,771

Financial costs 28 (43,625,696) (41,928,632) FINANCIAL COST, NET (26,810,034) (29.933.861)

GAINS (LOSSES) BEFORE TAXES 175,084,485 684,531,019

Income tax expense 9 (30,168,384) (5,628,070) GAINS (LOSSES) FOR THE YEAR FROM 144,916,101 678,902,949 CONTINUOUS OPERATIONS DISCONTINUED OPERATIONS Net (losses) from discontinued operations 29 (910,023) (8,701,184) NET GAINS (LOSSES) OF THE YEAR 144,006,078 670,201,765

Gains (losses) per share of continuous operations 0.74 3.46

Gains (losses) per share of discontinued operations (0.005) (0.04)

The accompanying notes are integral parts of the financial statements.

SEPARATE FINANCIAL STATEMENTS ODINSA S.A. Separate Statement of Other Comprehensive Income As of December 31, 2017 and December 31, 2016 (Figures in thousands of Colombian Pesos) Informe de Gestión Informe DEC-31-17 DEC-31-16

NET PROFITS 144,006,078 670,201,765 OTHER COMPREHENSIVE INCOME Difference from exchange rates (24,970,590) 7,571,426

Equity method (14,098,072) 863,621

Employee benefits 17,215 -

Difference from exchange rates - Discontinued operations 1,116,630 (1,116,630)

OTHER COMPREHENSIVE INCOME TOTAL (37,934,817) 7,318,416 TOTAL COMPREHENSIVE INCOME 106,071,261 677,520,181

The accompanying notes are integral parts of the financial statements.

MAURICIO OSSA ECHEVERRI MARIO ALONSO GARCÍA ROMERO JORGE ELIÉCER MORENO URREA Legal Representative Accountant P.C. 69852-T Tax Auditor P.C. 42619 - T (see attached certification) (See attached certification) Member of PricewaterhouseCoopers Ltda. (See attached report) Financial Statements Odinsa Anual Report 2017 115 - 7,318,416 41,028,879 (4,099,772) (1,635,561) 37,934,817 670,201,765 144,006,078 (95,000,370) (14,520,140) TOTAL EQUITY TOTAL 714,314,231 1,428,763,519 1,423,678,709 ------(613,042) OTHER (4,296,112) OF EQUITY (2,245,480) (6,541,592) (7,154,634) COMPONENTS ------7,318,416 OTHER INCOME 37,934,817 83,088,641 113,705,042 COMPREHENSIVE 121,023,458 ------(See attached report) Tax Auditor P.C. 42619 - T Auditor P.C. Tax JORGE ELIÉCER MORENO URREA INCOME 45,324,991 Member of PricewaterhouseCoopers Ltda. Member of PricewaterhouseCoopers (13,907,098) ACCUMULATED ACCUMULATED (229,121,173) (243,028,271) (274,446,164) ------670,201,765 144,006,078 (133,190,039) (670,201,765) 133,190,039 FINANCIAL YEAR RESULTS OF THE RESULTS 670,201,765 144,006,078 ------(4,099,772) (1,635,561) Accountant P.C. 69852-T Accountant P.C. DONATIONS 133,190,039 575,201,395 (See attached certification) RESERVE FOR RESERVE 291,479,351 420,569,618 994,135,452 INVESTMENTS AND MARIO ALONSO GARCÍA ROMERO ------78,498,174 78,498,174 78,498,174 LEGAL RESERVE ------PREMIUM SHARE ISSUE 354,528,587 354,528,587 354,528,587 - - - - - Legal Representative - - - - - (see attached certification) MAURICIO OSSA ECHEVERRI 19,604,682 19,604,682 19,604,682 SUBSCRIBED AND PAID SHARE CAPITAL PAID COMPREHENSIVE INCOME: Tax on Tax wealth Gains for the year Other comprehensive income Tax on Tax wealth Other movements Other comprehensive income Gains for the year Appropriations FINAL BALANCE ON DECEMBER 2016 31, Appropriations FINAL BALANCE ON DECEMBER 2017 31, Other movements FINAL BALANCE ON DECEMBER 2016 31, COMPREHENSIVE INCOME: The accompanying notes are integral partsThe accompanying of the financial statements. ODINSA S.A. Separate Statement of Changes in Equity 2017 December 31, As of Sunday, (Figures in millions of Colombian Pesos) 116

SEPARATE FINANCIAL STATEMENTS ODINSA S.A. Separate Cash Flow Statements As of December 31, 2017 and December 31, 2016 (Figures in thousands of Colombian Pesos) Informe de Gestión Informe DEC-31-17 DEC-31-16 CASH FLOWS FROM OPERATING ACTIVITIES NET GAINS FOR THE YEAR 144,006,078 670,201,765 Adjustments to reconcile the net profits of the year and the used in operating activities: Income tax expense recognized in profits or losses 30,168,384 5,628,070 Share in the income of associates and joint ventures (193,784,792) (653,726,415) (Losses) profits from the sale of property, plant and equipment 1,355,618 824,585 Net (losses) profits from the sale of investments (37,837,239) (78,124,596) Net profits/losses from the fair value arising from investment properties - (2,310,489) Profits/losses from the valuation of investments measured 102,905 (10,828,749) at fair value through profits and losses Financial costs recognized in profits 39,879,896 34,022,177 Interest income recognized in the results of the period (26,463,735) -

Expenses recognized in relation to employee benefits and provisions - 4,593,818

Net profits/losses arising from the sale of non-current assets 776,326 10,692,795 available for sale and other assets Net losses from discontinued operations (36,962) (1,991,611) Net profits/losses of the value of the amortized cost of financial instruments - 4,832,000 Net impairment on non-current assets recognized in the results of the period (6,036,176) - Depreciation and amortization of non-current assets 3,709,217 3,193,276 Exchange difference recognized in income of financial instruments 69,463 (1,260,340) Other adjustments to reconcile the (losses) gains (4,725,899) 198,514 (48,816,916) (14,055,200) CHANGES IN THE WORK CAPITAL OF: Trade receivables and other accounts receivable 22,112,649 13,185,230 Other assets 11,163,605 1,944,369 Trade payables and other accounts payable (70,714,935) 13,405,475 Employee benefits 1,593,669 1,130,345 Other liabilities (6,758,784) (4,404,171) Interests received - 1,217,569 Tax paid on wealth (1,635,561) (4,099,772) Tax paid on wealth (8,560,957) (8,949,148) NET CASH FLOW USED IN OPERATING ACTIVITIES (101,617,230) (625,303)

DEC-31-17 DEC-31-16

CASH FLOWS BY INVESTMENT ACTIVITIES Dividends received from associates and joint ventures 66,502,350 94,830,666 Acquisition of properties, plant and equipment (3,587,500) (11,480) Product of the sale of properties, plant and equipment 561,335 339,277 Acquisition of intangible assets (2,590,616) (666,915) Product of the sale of intangible assets - 3,090 Acquisition of shares in subsidiaries, associates and joint ventures (116,336,939) (23,815,270) Product of the sale of interests in associates and joint ventures 60,624,189 28,843,113 NET CASH FLOW GENERATED BY INVESTMENT ACTIVITIES 5,172,819 99,522,481

CASH FLOWS BY FINANCE ACTIVITIES Payment of bonds and commercial papers (9,833,121) - Bond issue 400,000,000 - Increase/decrease of other financing instruments (219,719,259) (40,235,647) Dividends paid (94,977,335) - Interests paid (18,779,789) (15,885,195) Return of retainage and other liabilities - (13,645,025) NET CASH FLOWS USED IN FINANCING ACTIVITIES 56,690,496 (69,765,867)

NET INCREASE IN CASH AND CASH EQUIVALENTS (39,753,915) 29,131,311 Cash and cash equivalents at the beginning of the year 47,421,427 18,290,116 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 7,667,512 47,421,427 The accompanying notes are integral parts of the financial statements.

This report was printed in

Journalistic and graphic edition: Taller de Edición Medellín, Colombia www.tallerdeedicion.co Odinsa Anual Report 2017 119 Informe de Gestión