July 14th, 2016

Company Update

Rating: , Equities Buy Industry: ETB Telecoms & Media Fever for fiber

After the strong performance in the name since our upgrade to BUY in Oct-15 (total return of +20.4% compared to 8.1% the COLCAP), we are setting our 2016 TP at COP 720 with a BUY Company Data recommendation. The new TP and rating consider a successful Ticker etb cb sale process of ETB. Price (COP) 590 . Sale process ahead looks promising. ETB is going through a LTM Range (COP) 485 - 619 process (Law 226) to sell the 86.6% stake of the District in the Target 720 company. The Bogota Council approved the sale process on Ex pected Return 22.0% May 30th as part of Bogota’s Development Plan, and according to the management, the sale to the general public should be Market Cap (USD mn) 714 ready by the second half of 2017. Shares Outstanding (mn) 3,551 Free Float 13.0% . Strategic shift in the company’s outlook. The prior administration invested 2 COP tn in the modernization of ETB’s ADTV (USD mn) 0.3 infrastructure, which allowed the company to have a stronger stream of income in business lines other than copper networks. This gives the company a new competitive outlook. ADTV and Performance . The potential entry of a strategic investor should be value enhancing for current shareholders. We consider that with a 130 6 strategic and experienced majority shareholder, ETB could see 120 5 important improvements in three fronts i) commercial strategy, 110 improving market shares, ii) efficiency, improving margins and 4 100 iii) corporate governance, allowing it to carry on its strategy 3 90

consistently in the long term. USDmn 2 80 . Current administration aligned with a sale process. There 1 were important changes in management with the appointment of 70 new CEO, Jorge Castellanos and new CFO Diana Baron, who 60 0 have a investment banking background, preparing the path for a Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 sale process. ETB COLCAP . Shares look undervalued supporting a constructive view. ETB is trading at a 5.7x 2016E EV/EBITDA multiple, compared to an industry median of 6.1x. Further, ETB is trading slightly CREDICORP CAPITAL EQUITY RESEARCH bellow 1x P/BV, and it could not be sold bellow 1x P/BV on a possible sale process according to regulation. Steffania Mosquera +(571) 339 44 00 ext. 1025 Valuation Sumary [email protected] 2014 2015 2016E 2017E 2018E

EV/EBITDA 2.1x 4.2x 5.7x 4.4x 3.8x Camilo Forero P/E n.a n.a n.a 33.3x 34.9x +(571) 339 44 00 ext. 1002 P/BV 0.6x 0.8x 0.9x 0.9x 0.9x [email protected] Div Yield 3.4% 21.9% 0.0% 0.0% 0.0% Sources: Company Reports and Credicorp Capital; E Credicorp Capital Estimates

Credicorp Capital may do or seek to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on page 16 to1 19 . Analyst Certification on Page 16. Additional disclosures on page 19. ETB - Company Summary Company description Sector: Telecoms & Media Empresa de Telecomunicaciones de Bogotá (ETB) is a telecommunications prov ider w ith a strong position in Bogotá Rating: Buy w ith almost a 130 y ears ex perience. The company currently prov ides local and long-distance fix ed-line serv ices Target Price: 720 (52.3% market share in Bogota) and broadband serv ices (33.8% market share in Bogota), TV serv ices (4.5% in Bogota) mobile v oice and . Stock Data Ticker etb cb Price (COP) 590 Positives Concerns LTM Range 485 - 619 - Attractiv e relativ e v aluation - Commercial capacity to gain market shares in Market Cap (USD mn) 714 - Strong brand recognition and presence in Bogota mobile and TV Shares Outstanding(mn) 3,551 - Only operator dev eloping FTTH - Highly competitiv e market Free Float 12% - Decreasing trend in ETB's customers ADTV (USD mn) 0.3 -Capacity to obtain profits from inv estments

Revenues Breakdown (as of March 2016) Income Statement COP mn 2014 2015 2016E 2017E 2018E Rev enues 1,416,447 1,460,006 1,535,752 1,723,659 1,945,315 Data Other 11% 13% EBIT 29,429 (252,439) 28,844 152,186 152,433 EBITDA 554,639 402,525 391,159 508,091 583,594 Internet Mobile Net Income (37,757) (36,538) (26,898) 62,269 59,357 28% 7% EPS (COP) -10.6 -10.3 -7.6 17.5 16.7 TV EBIT Margin 2.1% -17.3% 1.9% 8.8% 7.8% 3% EBITDA Margin 39.2% 27.6% 25.5% 29.5% 30.0% Net Margin -2.7% -2.5% -1.8% 3.6% 3.1%

Fixed- Balance Sheet line 38% COP mn 2014 2015 2016E 2017E 2018E Cash & Equiv alents 1,122,769 613,115 366,675 410,087 466,206 Other Current Assets 468,993 518,969 560,850 622,079 702,408 Ownership Structure Long Term Assets 3,195,188 3,766,347 3,919,532 4,053,108 4,154,608 Total Assets 4,786,951 4,898,431 4,847,057 5,085,274 5,323,222 Financial Debt 530,238 530,180 582,055 758,863 888,451 Other Liabilities 1,438,886 2,089,639 2,013,289 2,012,429 2,061,432 Universidad Bogotá D.C. Total liabilities 1,969,124 2,619,819 2,595,343 2,771,292 2,949,883 Distrital 86.6% 1.8%Foreign Shareholder's equity 2,817,827 2,278,612 2,251,714 2,313,982 2,373,339 Funds Total liabilities + Equity 4,786,951 4,898,431 4,847,057 5,085,274 5,323,222 2.7% EBITDA / Fin. Ex penses 5.5 19.6 8.9 7.5 7.8 Others Net Debt (638,955) (132,666) 167,288 300,685 374,153 9.9% Net Debt / EBITDA (1.2) (0.3) 0.4 0.6 0.6 Financial Debt / Equity 18.8% 23.3% 25.8% 32.8% 37.4% ROAE -2.7% -1.4% -1.2% 2.7% 2.5% ROAA -0.8% -0.7% -0.6% 1.2% 1.1% ROIC 1.2% -5.0% 0.6% 3.0% 2.7%

Management Cash Flow CEO: Jorge Catellanos COP mn 2014 2015 2016E 2017E 2018E CFO: Diana Barón Initial Cash 960,286 861,909 585,357 366,675 410,087 IR Manager: Eugenia Londoño Cash from Operation 667,043 1,044,333 237,039 453,784 558,424 w w w .etb.com.co CAPEX (703,267) (849,163) (598,618) (652,343) (695,524) Changes in Financial Debt (445) (58) 51,875 176,808 129,588 Div idends (Paid) Receiv ed (61,709) (471,664) 0 0 0 Sources: Company Reports, Bloomberg and Other CFI & CFF Items 0 0 91,022 65,162 63,632 Credicorp Capital; E Credicorp Capital Estimates Final Cash 861,909 585,357 366,675 410,087 466,206 Change in Cash (98,378) (276,552) (218,682) 43,412 56,119 2

Investment thesis: we believe the sale process will bring value to the table

Transformation process driving shares. Shares have strongly outperformed since 2014.

The main driver of the shares has been the visibility of the transformation process of the

company as investments in optic fiber, mobile 4G networks and cloud computing have ETB made COP 2 tn been deployed. Its new optical fiber infrastructure places ETB as the only player who investments to delivers Fiber to the Home (FTTH) technology to households, giving it an important renew its competitive advantage, offering the highest speed in the market (150 Mbps) and the technology, these possibility of bundling with high end TV services. Its low saturated 4G spectrum allows ETB investments have to give a service compatible with high video consumption, the latest trend of the industry driven shares since and its cloud computing services are in line with tendencies of services for companies. We 2014. believe current market prices do not incorporate the potential growth ETB could have on its

top line with this new infrastructure, supporting our BUY recommendation.

Reiterate buy on increased expectation for change in control. We believe recent

political change at the District of Bogotá has dramatically improved the outlook of the

shares through an increased likelihood of the sale of the controlling stake of ETB. In our

valuation exercise we are factoring in such sale by 2017. We believe this sale is highly A change of control likely due to the fact the district has made its development plan including funds obtained for ETB towards a from the sale of ETB, which was approved by Bogota Council on May 30th. ETB also strategic buyer is changed its management in line with this strategy, incorporating a new CEO and CFO with highly likely under strong IB and M&A experience. This helps setting a favorable environment for a sale current process both externally, with the political voice of Bogota’s administration, and internally by circumstances. preparing the financial information and improving it by cutting inefficiencies. We believe

given ETB’s recent investments in infrastructure and its strong position in Bogota, a

strategic purchase is the most likely outcome of the sale process.

Boost in value through a strategic controlling shareholder. We believe a strategic

buyer would bring value to the table through its expertise in commercial strategies,

economies of scale and a more sound corporate government. Top line should improve with A strategic buyer a reinforced and more aggressive commercial strategy. Margins should also improve, would boost ETB’s given scale economies and decreases in expenses related to its government controlling value by improving stake and labor unions. A more sound corporate government would help give continuity top line, margins and stability to these favorable strategies. In case such transaction takes place, minority and corporate shareholders would benefit either from a direct purchase of their shares from the new governance. shareholder or from the obligation the district has to purchase their shares at the

transaction price. This is according to a shareholder declaration made by Bogota’s prior

administration, which is valid until 2024.

Risks balance tilted to the upside. The market has yet to price such a change in

ownership at ETB. Current share price is consistent with ETB continuing as a standalone

company and with its business portfolio growing at current trends, although we consider if

the sale is not successful a market discount of liquidity and corporate government should Risks are balanced take place. Even though the sale price is still subject to some degree of political to the upside. uncertainty, we believe ongoing prices have a limited downside in case the sale was to fail,

related to the mentioned discount, while offering substantial upside in case a new controller

was to take over the company. This is especially true after the price adjustment which

followed dividend payment in 2Q15.

Attractive valuations. ETB is currently trading at a 5.7x 2016E EV/EBITDA multiple, Transaction median compared to a global mean of 6.1x. It is also trading bellow 1.0x P/BV, and the transaction of 6.1x EV/EBITDA has to be held at a minimum of 1.0x, supporting a constructive valuation. Regarding compared to current transaction multiples, the current 5.7x also looks undervalued, with a median of similar 5.7x supports a transactions at 6.1x. constructive view.

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Risks to our thesis: Potential risks for our thesis are: i) failure to sell the company and ii) selling the company at a lower than expected multiple.

i. Failure to sell the company: ETB sale is a controversial topic, specially for the left-

wing political sector. Furthermore, ETB has a well positioned union, which sets a

bumpy road for the sale process. Also, recall a process in 2010, where there were no We believe bidders for ETB. We do not see this likely due to the transformation the company has monetizing current gone through. Either way, if the sale process does not go through, we have doubts on investments would the capacity of ETB to obtain profits from recent investments. The controlling stake of be challenging if the the district in the company leads to a lack of stability in the management that makes sale process is not executing strategies a very challenging task. Recall current management has a sale successful. approach rather than a deep expertise of the Telecom industry. Moreover, we believe

that the sale process has given visibility to ETB in the market place. Therefore, if the

process fails there would be an important offer on the shares, setting a corporate

governance and/or liquidity discount for the company’s shares.

ii. Sale of the company at a lower than expected multiple: The company share price is near 1x P/BV, which makes a transaction possible near the current price. However, we assign a low probability to this risk considering current management’s know how on M&A activity.

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Valuation and Scenarios

We see two main possible scenarios for ETB: i) It is sold in 2017 or ii) the company is not Our TP is based on a sold and continues with current trends. Our TP is based on the sale of the company with an sale scenario 2017E EV/EBITDA multiple of 6.0x that considers transactions and current multiples.

2016 2017 2018 2019 2020 …. 2025 TV

1 2 Possible sale based 10 year DCF with a on the 2017E EBITDA 1.1% g on the TV

1. We derive our TP from a relative valuation based on the median 2016E EV/EBITDA multiple (see page 11) for the industry and a benchmark of purchases of Telecom companies.

Telecom transaction sample

Transaction Percent Implied Date Target/Issuer Country Value USD mn Sought (%) EV/EBITDA (x ) 03/17/2016 Sunrise Communications Group AG Sw itzerland 809 23.83 8.0x 11/19/2015 Kuwait Telecommunications Company Kuwait 424 25.79 4.0x

We arrive at a 07/24/2015 Public Joint-Stock Company Bashinformsv y az Russia 36 25.0 2.7x EV/EBITDA median 06/09/2014 PT Link Net Tbk Indonesia 62 15.06 5.5x of 6.1x in comparable 04/07/2014 Numericable-SFR France 1,610 34.59 10.6x transactions, similar 11/05/2013 O2 Czech Republic AS Czech Republic 3,481 65.9 4.6x to the 2016E 10/18/2013 Phoenix Satellite Telev ision Holdings Ltd. Hong Kong 214 12.15 9.3x

EV/EBITDA 07/03/2013 Max com Telecomunicaciones S.A.B. de C.V. Mex ico 26 44.69 6.1x

06/27/2013 B Communications Ltd Israel 34 11.95 3.8x

03/19/2013 freenet AG Germany 318 10.4 8.8x 01/10/2013 Intouch Holdings Public Company Limited Thailand 690 10.29 11.9x

Mean 6.9x

Median 6.1x

With these two inputs in mind, we calculate 2017 EV with a projected EBITDA for 2017 and 6.0x multiple. We then calculate 2017 EqV with the projected net debt. We bring the EqV to present with a 12.3% ke and calculate the share price.

Valuation Summary

2017E EBITDA (COP mn) 508,091 EqV 2016 (COP mn) 2,571,579

Our 2016 TP is 720 EV/EBITDA 2017E Multiple 6.0x Net Debt 2016 (COP mn) (132,666) COP, implying a EV 2017E (COP mn) 3,048,545 EV 2016 (COP mn) 2,438,914

22.0% return. Net Debt 2017 (COP mn) 167,288 Share Price 2016 720 EqV 2017 2,881,257

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2. Even though we are foreseeing the sale of ETB as the most likely outcome for the sale, in which we base our TP and use a relative valuation, we are also updating our DCF model. We are projecting a 10 year DCF considering ETB as it is currently, incorporating Our TP is based on a recent trends in penetration and market shares. The model also takes into account sale scenario, not on guidance investments. the following calculations 2016 2017 2018 2019 2020 …. 2025 TV

2 10 year DCF with a 1.1% g on the TV

Results of the DCF show a fair value of ETB’s share at 600 COP. However, we believe in case the sale process is not successful there would be a liquidity discount in the asset, setting its market value at 510 COP per share.

Valuation Inputs Risk Free Rate 1.8% Total EV (COP mn) 1,994,333 Risk Premium 6.0% Net Debt 2016 (COP mn) (132,666) Kd (Before Tax es) 8.0% Equity Value (CPO mn) 2,126,998 Av erage Kd afer tax es 4.6% Outstanding Shares(mn) 3,551

CDS Colombia 3.0% 2016 YE Fair Value (COP) 600

If the sale process is g 1.1% Liquidity Discount 15% not successful, we Av erage WACC 9.9% 2016 YE Market Value 510 are forecasting a EV Present (COP mn) 219,837 Current Price 590 loss of 14% of the EV Perpetuity (COP mn) 1,774,496 Total Return (14%) share price of ETB. Operating CF (COP mn) 2014 2015 2016E 2017E 2018E

EBITDA 554,639 402,525 391,159 508,091 583,594 Capex (703,267) (849,163) (598,618) (652,343) (695,524) Working Capital 486,570 (171,392) (120,714) 9,611 40,375 Operating Tax es (21,616) (8,950) (33,406) (63,918) (65,546)

Free Cash Flow 316,326 (626,979) (361,579) (198,558) (137,100)

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What has changed in the model

The following information is only relevant in case the company is not sold. The explained projections are based on the scenario the sale process does not go through. Considering our prior update, in which we did not reflect a sale of ETB, we adjusted our model to reflect the company as it is currently, not reflecting the possible sale in order to do valid comparisons. . Penetrations:

. Fixed Line: slight decrease in home penetration of fixed lines in Colombia, reaching a minimum of 39.1% on 2026 based on a 0.3% average quarterly decrease in 2013-2015. Household penetration was set constant at 53% in prior models. . Internet: we separated the measurement of penetration between Colombia We changed inputs and Bogota, because Bogota is the main market of internet for ETB, and on penetration concentrates all of its optical fiber investments. We foresee a 1% quarterly evolution and ETB increase in penetration in Bogota, and a 0.2% increase in Colombia based on market shares the 2012-2015 historic average. We projected a maximum penetration in considering historic Bogota set at 81% of households in 2020. Internet penetration had a 0.3% behaviors. quarterly increase for Colombia in prior models.

. TV: we separated penetration between Bogota and the rest of Colombia, because of the complementarity of this product with internet, which is also projected in Bogota. We foresee a fall of TV subscription penetration in the long term due to on demand systems; it was projected constant in prior models. . Mobile: a 1.2% quarterly increase in penetration based on a 2012-2015 performance, to stabilize at 137% in 2020. This figure was assumed stable at 116% in prior models.

Industry - Forecasted Penetration Evolution

Internet Mobile TV Fix ed Bogota Other Colombia Bogota Lines

2016 68.3% 44.2% 123.7% 47.9% 51.1% 2017 72.3% 47.5% 128.5% 45.1% 49.9%

2018 76.3% 50.8% 132.1% 42.3% 48.7%

2019 80.3% 54.0% 136.9% 39.5% 47.5% 2020 81.3% 57.2% 136.9% 36.7% 46.3%

2021 81.3% 60.3% 136.9% 33.9% 45.1% 2022 81.3% 63.4% 136.9% 31.1% 43.9%

2023 81.3% 66.4% 136.9% 28.3% 42.7%

2024 81.3% 69.3% 136.9% 25.5% 41.5%

2025 81.3% 76.3% 136.9% 19.9% 39.1%

Source: MINTIC, DANE, Credicorp Capital

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. Market Shares

. Fixed Line: slight decrease in market share of fixed lines of -0.3% quarterly in

2016-2017, in line with the 2014-2015 performance. Market share stabilizes at

16.7% at the end of 2017.

. Internet: we are projecting a -0.05% quarterly decrease of market share, consistent with the 2013-2015 trend. We foresee the company stabilizing its market share at 33.4% by the end of 2017.

. TV: we are projecting a 0.7% quarterly increase in market share in Bogota,

consistent with the performance since 2014, when the program started in

Bogota. We see this trend unsustainable in the long term, therefore we project

quarterly market share gains of 0.35% from 2020 on.

. Mobile: We maintain 2015 quarterly increase in market share of 0.16% for the 2016-2019 period. We foresee slower market share gains from 2020 on.

ETB - Forecasted Market Share Evolution

Internet Mobile TV Fix ed Bogota Other Colombia Bogota Lines

2016 33.6% 1.5% 1.3% 7.3% 17.9% 2017 33.4% 1.4% 2.0% 10.1% 16.7%

2018 33.4% 1.3% 2.6% 12.9% 16.7%

2019 33.4% 1.2% 3.2% 15.7% 16.7%

2020 33.4% 1.2% 3.6% 17.1% 16.7%

2021 33.4% 1.1% 3.9% 18.5% 16.7% 2022 33.4% 1.0% 4.2% 19.9% 16.7%

2023 33.4% 0.9% 4.5% 21.3% 16.7% 2024 33.4% 0.8% 4.8% 22.7% 16.7%

2025 33.4% 0.7% 5.5% 25.5% 16.7%

Source: MINTIC, DANE, Credicorp Capital

We decreased the . EBITDA margin: we are projecting EBITDA margin of 28% for 4Q16. This is in line with EBITDA margin to the company’s guidance, considering recent layoffs that have yet to be incorporated 30%, from 33% in and the fact that new business lines have not reached equilibrium point. Recall EBITDA prior models. margin dropped from 39.2% to 27.6% in 2015. A 4.6% of this 11.6% decrease was due to a 23.5% increase in personal expenses and a 99.3%increase in fees. We believe this trend will reverse with recent management measurements, recovering EBITDA margins to 30% in the long term. . Data business line: data business is assumed to have a steady share in the revenue mix.

. CAPEX: the updated model incorporates the new management’s CAPEX plan.(COP 2 tn over the next 4 years).

. Depreciations: due to recent investments, assets of ETB will depreciate slower

changing average lifetime of the assets from 10 years in prior models, to 15 years in

current model.

Liquidity discount . Liquidity discount: It was set at 25% in prior models, taking into account the entry of went form 25% to the company in the COLCAP and the market attention the company has gained through 15%. its investments we are setting it at 15%.

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Financial Statements

ETB Income Statement COP mn 2014 2015 2016E 2017E 2018E

Revenues 1,416,447 1,460,006 1,535,752 1,723,659 1,945,315 Local fix ed-line 451,070 419,964 407,121 Long distance 74,822 71,282 69,102 Internet 434,006 491,978 544,486 Data 158,841 176,343 194,165 Other* 201,388 196,044 202,092 Mobile 166,961 301,884 443,890 TV 48,665 66,164 84,459 Costs & Ex penses 861,808 1,057,481 1,144,593 1,215,568 1,361,720

EBITDA 554,639 402,525 391,159 508,091 583,594

EBITDA Mgn 39.2% 27.6% 25.5% 29.5% 30.0%

Depreciations & Amortizations 525,210 654,964 362,315 355,905 431,162

EBIT 29,429 (252,439) 28,844 152,186 152,433

EBIT Mgn 2.1% (17.3%) 1.9% 8.8% 7.8%

Non Operating Income /ex penses (96,510) (24,830) (29,766) (44,826) (48,298) Earnings before tax es (67,082) (277,270) (921) 107,360 104,135

Tax es (30,590) (208,611) 25,682 45,091 44,778

Net Income (37,757) (36,538) (26,898) 62,269 59,357

Net Mgn (2.7%) (2.5%) (1.8%) 3.6% 3.1% *Detail on rev enue not av ailable for 2014 and 2015 ETB Balance Sheet COP mn 2014 2015 2016E 2017E 2018E

Cash and equiv alents 1,122,769 613,115 366,675 410,087 466,206 Accounts receiv able 418,896 456,549 492,959 551,323 626,770 Inv erntories 13,163 20,705 32,810 35,675 40,557 Fix ed Assets 2,797,283 3,199,462 3,435,766 3,732,203 3,996,566 Long Term Inv estments 46,424 49,731 48,092 48,092 48,092 Other 388,416 558,869 470,756 307,893 145,031 Assets 4,786,951 4,898,431 4,847,057 5,085,274 5,323,222 Debt 530,238 530,180 582,055 758,863 888,451 Accounts pay able 654,110 883,396 811,198 882,038 1,002,742 Other 784,776 1,206,242 1,202,091 1,130,390 1,058,690 Liabilities 1,969,124 2,619,819 2,595,343 2,771,292 2,949,883 Shareholders equity 2,817,827 2,278,612 2,251,714 2,313,982 2,373,339 Sources: Company Reports and Credicorp Capital; E Credicorp Capital Estimates

9 Operating and Financial Ratios

Operating Figures 2014 2015 2016E 2017E 2018E

Subscribers Local fix ed-line 1,441,320 1,359,322 1,270,943 1,181,667 1,176,254 Broadband 504,432 544,726 588,494 633,314 683,257 Cell Phone 21,170 390,171 796,516 1,242,112 1,712,368 TV 15,436 69,649 104,421 135,767 164,203

Market Share (%) Local fix ed-line Colombia 20.1% 19.1% 17.9% 16.7% 16.7% Broadband Bogota 33.6% 33.8% 33.6% 33.4% 33.4% Cell Phone Colombia 0.0% 0.7% 1.3% 2.0% 2.6%

TV Bogota 0.4% 4.5% 7.3% 10.1% 12.9%

ARPU (monthly COP) Local fix ed-line 36,697 34,076 33,343 33,430 33,430

Internet 73,127 57,489 56,911 59,562 61,400

Mobile 28,248 29,165 21,346 23,357 24,091

TV 8,497 35,192 44,156 44,016 45,399

Financial Ratios 2014 2015 2016E 2017E 2018E

Debt Debt / Assets 11.1% 10.8% 12.0% 14.9% 16.7% Debt / Equity 0.2x 0.2x 0.3x 0.3x 0.4x Debt / EBITDA 1.0x 1.3x 1.5x 1.5x 1.5x Net debt / EBITDA -1.2x -0.3x 0.4x 0.6x 0.6x Interest cov erage 5.5x 19.6x 8.9x 7.5x 7.8x

Profitability ROAE -2.7% -1.4% -1.2% 2.7% 2.5% ROAA -0.8% -0.7% -0.6% 1.2% 1.1% Net Mgn -2.5% -1.8% 3.6% 3.1% 2.3% Rev enues / Assets 0.3 0.3 0.3 0.3 0.4 Assets / Equity 1.7 2.1 2.2 2.2 2.2

ROIC -5.0% 0.6% 3.0% 2.7% 2.4% CAPEX CAPEX (COP th) (703,267.1) (849,162.7) (598,618.4) (652,342.6) (695,523.9) CAPEX / Rev enues (49.7%) (58.2%) (39.0%) (37.8%) (35.8%)

10 Comparables: Telecoms

Mkt. Cap P/E FV/EBITDA P/BV EBITDA ROE Div. Yield Company USD mn 2016E 2017E 2016E 2017E LTM Mg LTM 2016E

LATAM ETB 727.1 n.a 33.6 5.7 4.4 1.0 22.7% (3.5%) 19.1% Entel 2,768.8 31.6 19.4 7.5 6.2 2.1 21.6% 0.9% n.a. Telefonica Brazil 22,567.3 16.1 14.8 5.8 5.4 1.3 31.8% 6.6% 4.0% Oi 799.5 n.a. n.a. 6.4 6.4 0.2 28.0% (48.0%) n.a. TIM 5,615.9 27.2 26.2 4.2 4.0 1.3 38.8% 12.4% 2.5% America Mov il 40,048.8 13.3 11.6 5.6 5.5 4.3 29.1% 20.4% 5.1% Ax tel 437.7 n.a. 26.5 5.0 5.2 1.8 19.6% (76.6%) n.a. Latam Avg 22.1 22.0 5.7 5.3 1.7 27.4% (12.5%) 7.7% USA and Canada AT&T 262,184 14.9 14.1 7.1 6.8 2.1 32.5% 11.2% 4.5% Verizon 228,272 14.4 13.9 7.4 7.2 12.8 37.2% 100.7% 4.0% Telephone & Data 3,408 76.8 50.8 5.2 5.0 0.7 18.9% 1.7% 1.8% T-Mobile 36,349 35.8 26.1 6.1 5.3 2.2 25.0% 7.7% n.a. Us Cellular Corp 3,467 67.2 45.7 5.9 5.6 1.0 16.9% 2.5% n.a. Sprint 19,436 n.a. n.a. 5.2 4.8 1.0 23.0% (10.1%) n.a. Shenandoah 2,042 30.3 30.5 10.6 8.6 7.0 42.5% 15.3% 0.6% Telus 19,814 16.5 15.8 8.3 8.0 3.6 33.9% 18.5% 4.1% BCE 41,988 17.9 17.1 8.9 8.7 3.4 38.8% 17.4% 4.3% Rogers Communications 21,346 18.7 17.6 8.9 8.7 5.1 36.3% 25.3% 3.6% USA and Canada Avg 32.5 25.7 7.4 6.9 3.9 30.5% 19.0% 3.3% Europe Telekom Austria 3,771 12.0 11.5 4.5 4.4 1.4 33.8% 16.0% 1.0% Telenet 5,420 24.6 20.4 8.9 8.4 n.a. 49.8% (11.2%) n.a. Bt Group 52,732 13.5 12.4 6.4 6.2 3.5 33.4% 26.1% 3.2% 80,417 38.2 30.5 7.4 7.1 0.8 26.4% (6.3%) 5.0% Tdc 4,340 13.2 13.0 6.9 7.0 1.5 18.4% (10.9%) 2.8% Orange 42,538 14.7 13.6 5.4 5.4 1.2 27.9% 8.1% 4.2% Viv endi 24,527 33.3 28.1 14.0 13.0 1.1 25.6% 13.3% 11.6% Deutsche Telekom 78,250 17.2 15.4 5.9 5.8 1.9 31.3% 14.9% 3.7% Hellenic Telecom 4,553 14.9 13.5 4.0 4.0 1.6 31.0% 5.7% 1.1% Telecom Italia 13,370 13.1 11.9 5.5 5.4 0.6 35.5% 1.3% n.a. Telenor 25,164 14.1 12.9 6.1 5.8 3.5 33.8% 6.8% 5.3% Ab-A 4,083 32.0 20.8 9.6 8.0 1.9 15.8% 6.3% 6.9% 5,870 33.3 22.6 5.2 4.9 1.6 30.6% (12.7%) 4.5% Sw isscom 25,469 16.5 16.3 7.8 7.8 4.9 35.4% 27.0% 4.6% Europ Avg 20.8 17.4 7.0 6.7 2.0 30.5% 6.2% 4.5% Asia China Telecom 37,878 13.1 11.3 3.5 3.3 0.8 28.4% 6.8% 2.4% China Mobile 241,025 14.6 13.3 4.7 4.4 1.7 37.1% 12.2% 3.0% China Unicom 24,608 21.6 16.7 3.3 3.1 0.7 29.8% 3.5% 2.3% Bharti Airtel 21,690 26.1 21.1 5.5 5.0 2.0 35.3% 7.8% 0.6% Idea Cellular 5,726 21.9 19.1 5.2 4.7 1.5 36.3% 12.1% 0.6% Softbank Group 67,580 9.7 9.6 6.9 6.4 2.2 26.2% 12.7% 0.7% Nippon Telegraph 97,895 12.9 12.0 5.0 4.9 1.0 27.1% 6.2% 2.3% Kddi Corp 80,055 14.5 13.6 6.4 6.1 2.6 30.6% 13.2% 2.2% Ax iata Group Ber 12,375 19.8 18.0 7.5 6.9 2.1 40.0% 9.7% 3.6% Max is Bhd 11,360 24.0 23.5 12.1 12.0 11.6 52.9% 46.7% 3.3% Digi.Com Bhd 9,545 22.3 21.9 13.1 12.7 n.a. 43.2% 321.2% 4.3% Singapore Teleco 50,423 16.8 15.5 15.0 14.5 2.7 29.3% 15.1% 4.1% Kt Corp 6,985 11.6 10.7 3.1 3.1 0.7 21.7% 4.0% 1.6% Far Eastone Tele 7,740 20.8 19.5 10.1 9.3 3.5 25.9% 16.2% 4.9% Asia Avg 17.8 16.1 7.2 6.9 2.5 33.1% 34.8% 2.6% Global Avg 22.2 19.2 6.9 6.5 2.5 30.7% 15.0% 3.8% Global Median 17.0 16.5 6.1 5.8 1.9 30.6% 8.4% 3.6%

11 Source: Bloomberg, Credicorp Capital

Sale process ETB is currently going through a sale process for the share of the District in the company as stipulated under Law 226 of 1995 (Law for government property divestments). According to the company, once this process is concluded ETB could be effectively sold towards the second half of 2017.

According to Law 226, the sale process should comply with three conditions i) under no The company is circumstances should the sale harm government interests, meaning that the transaction currently working on can not be closed under Book Value; ii) the sale should be supported by technical studies the legal process to that take under consideration the profitability, the liabilities and assets of the company, sell the share of the meaning a valuation opinion from an investment bank and iii) given that ETB provides a District public service, the continuity of its services should be guaranteed.

The sale has already been approved by the Bogota Council (May 30th) and there are currently two parallel processes on the way: i) hiring the investment banking firm that will be in charge of valuating and setting a minimum price for ETB and ii) the structuring of the sale program. Once the investment bank is hired it should start analyzing the company in order to issue an opinion and minimum price after 4Q16 results are published. Once the minimum price is set, the local government should accept it and start with the approval of the sale process. The next step for the sale is a decree with the program. This document should include the minimum share price mentioned earlier, the stake to be sold and the allocation mechanism for the new majority shareholder. According to law 226 the final sale process comprises two phases:

a) During the first phase shares should be offered to current and retired employees from the company, labor unions and pension funds. The price paid by these potential investors will be fixed at the minimum price and this process should take a minimum of 2 months. b) Once the process mentioned in a) concludes, other investors will be able to acquire ETB shares in an auction with the starting price set at the minimum price.

Tentative Timeline of the Sale Process

May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

Approv al of the sale in the Council

Preparation of the sale program The stake of the . district of ETB Hiring of the inv estment banking firm should be available for sale for the Understanding of ETB by the general public by inv estment banking firm September 2017, Realease of ETB 4Q16 financial according to statements management Valuation of ETB, minimum price calculation Approv al of the minimum price and the sale program for the decrete

Fist phase of the sale

Second phase of the sale: general public

12

Possible Bidders . Millicom, which operates through TIGO in Colombia has stated its interest in Companies such as purchasing a stake of ETB. Millicom has presence in Latam and Africa. It has a close Millicom, EPM, AT&T relationship with ETB, related to the JV they have in mobile services, where Millicom and Telefonica have has a 19% mobile market share while ETB has a 1% share. A purchase of ETB expressed their could represent important synergies as Millicom bundles TV + Mobile + Internet interest on outside Colombia. A purchase would allow the multinational to complete its bundle, purchasing a stake from currently having only mobile services (directly). Millicom could also profit from on ETB. ETB’s data center, another business line from both companies.

. EPM has stated it is interested in the purchase of a stake in ETB. This would allow the company to have a stronger position in Bogota’s internet market, where ETB has a 33.8% market share and EPM has a 10.4% market share. This would place EPM as the main competitor of Claro in , where it currently has a 22% market share and Bogota. Claro has a 35% and 22% market share in Colombia and Bogota respectively. . It is noteworthy that UNE EPM (Telco subsidiary of EPM) and TIGO (Millicom) merged in 2014. This implies that EPM and Millicom could eventually be a single bidder through UNE TIGO.

. AT&T: since 2015, the company has expressed its interest and ETB could be a strategic acquisition considering the company’s infrastructure in mobile, internet and data center services, also offered by AT&T but not in Colombia. The company has made efforts to enter the Colombian internet market through Directv but currently has a marginal market share. . Telefonica: the operator of has stated its interest in purchasing ETB. This could strengthen its presence on the internet market, where their inorganic growth process gave them an important presence in rural areas in Colombia after the purchase of Telecom, a state owned company.

Internet market share in Colombia Internet market share in Bogota EPM would be the 100% 100% second participant 90% 90% in internet market 80% 80% 70% 70% shares both in 60% 60% Bogota and in .50% 50% Colombia through a 40% 40% 30% 30% purchase of ETB. 20% 20% 10% 10%

0% 0%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q11

Claro UNE/EPM Movistar Others ETB Claro ETB UNE/EPM Movistar Others

TV Market Share in Colombia TV Market Share in Bogota

100% 100% ETB has gained TV 90% 90% market share since 80% 80% its entry to Bogota, 70% 70% 60% 60% with a 4.5% share 50% 50% gain in less than 2 40% 40% 30% 30% years. 20% 20% 10% 10%

0% 0%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q13 3Q15 4Q15

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q13 3Q15 4Q15 1Q13

Claro DIRECTV UNE/EPM Movistar HV TV ETB Others Claro DIRECTV UNE/EPM ETB Movistar HV TV Others

Source: MINTIC, Credicorp Capital 13

Political Risk

During previous updates of ETB, we have referred to the political risk inherent to the The controlling shares, due to the controlling stake of the District in the company. Decisions such for an stake of the district extraordinary dividend in 2015, related to the funding of Bogota’s metro, did not match a in the company financial or strategic decision for ETB. Another political risk in the ETB is the lack of leads to a political stability in the management team as a consequence of changes in administrations in risk regarding Bogota. Recent changes in management include the step down of the President of the management BoD, yet to be appointed, associated to his ties with Bogota´s mayor and the hiring of a instability and a new CEO and CFO. weak corporate governance in Jorge Castellanos and Diana Baron are the new CEO and CFO respectively. Mr general. Castellanos has a PhD in Economics and Finance. The new CEO has a wide experience in the financial sector in the Ministry of Finance and investment banking in Correval and Darby. Mrs Baron is an Economist from Universidad Javeriana and holds an MBA from Instituto de Empresa de Madrid. The new CFO also has a wide experience in the financial sector in Correval, Procredit and the National Planning Department (DNP).

These appointments are aligned with a mandate for the sale process, easing the preparation for a transaction. However, if the process is not successful, the execution of current plans and the commercial success of the company could be challenging for the current management given their lack of expertise in the Telecom industry. This view is accentuated with the recent step down of the VP of Strategy, Pablo Gomez, who worked on Ericsson for 13 years and has an ample experience on the Telecom industry.

.

14

ETB’s strategic plan

ETB’s strategic plan is focused on cash generating activities, in order to obtain profits from existing investments and reduce costs through three main initiatives:

i. Monetizing the available capacity of the network: ETB has partially installed optical fiber for 1.2 mn households, which represents 49% of the total households in Bogota. However, only 610,000 are ready for connection. ETB’s plan is to install the majority of these 610,000 households by 2018, from current 131,000. Regarding mobile services, ETB is planning to have 2mn mobile users by 2018. We deem these goals optimistic and we are projecting more moderate client gains in our model. ETB is focused on However, this change in focus will allow ETB to start obtaining profits from recent three initiatives: investments. monetizing the ii. Cutting costs: Costs have increased 29% since 1Q15 as opposed to a 6% increase available capacity of in revenue. This has led to a drop in EBITDA margins of from 37% on 1Q15 to 23% the network, cutting on 1Q16. This drop was mainly given by the payroll, which increased 24% during costs and improving 2015. Reacting to this trend since 2015, the company has been making an effort in costumer service. cutting inefficiencies that have yet to be reflected on the financial statements. The company is going through a reduction in personnel; there are some compensation costs before it is possible to see the reduction.

iii. Improving costumer service: The new management has paid special attention in this front with initiatives that have improved costumer service indicators. A new quality model on the call center decreased the service time from 7:40 min in December 2015 to 4:52 min in March 2016. The company also changed its back – front attention model, improving the claim rate q/q. There was also a slight improvement in the mean installation time from December 2015 to March 2016. We deem this approach very important due to the competitive landscape of the Telecom industry in Colombia. We expect this changes will at least defend ETB’s market share on internet and allow it to continue gaining market share in TV and mobile services.

Coverage zones of ETB’s optical fiber

2014 2016

ETB made COP 1,3 tn investments between 2013 and 2015 to develop its optical fiber network in Bogota

15 Important Disclosures

This research report was prepared by Credicorp Capital Peru S.A and/or Credicorp Capital Colombia Sociedad Comisionista de Bolsa and/or Credicorp Capital S.A. Corredores de Bolsa, companies authorized to engage in securities activities in Peru, Colombia and Chile, respectively and indirect subsidiaries of Credicorp Capital Ltd. (jointly referred to as “Credicorp Capital”). None of the companies jointly referred to as Credicorp Capital are registered as broker-dealers in the United States and, therefore, they are not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided for distribution only to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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E. Market Making

Credicorp Capital Securities Inc. or its affiliates act as market maker in the following company ETB.

E. Rating System

Stock ratings are based on the analyst’s expectation of the stock’s total return during the twelve to eighteen months following assignment of the rating. This view is based on the target price, set as described below, and on the analyst’s opinion, general market conditions and economic developments.

Buy: Expected returns of 5 percentage points or more in excess over the expected return of the local index, over the next 12-18 months. Hold: Expected returns of +/- 5% in excess/below the expected return of the local index over the next 12-18 months. Underperform: Expected to underperform the local index by 5 percentage points or more over the next 12-18 months. Under Review: Company coverage is under review.

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In making a recommendation, the analyst compares the target price with the actual share price, and compares the resulting expected return for the IPSA, the COLCAP, and/or the SPBVL indexes, as estimated by Credicorp Capital S.A. Corredores de Bolsa, Credicorp Capital Colombia Sociedad Comisionista de Bolsa, and/or CredicorpCapital Peru S.A, and then makes a recommendation derived from the difference in upside potential between the shares and the respective index.

F. Distribution of Ratings

Buy Hold Underperform Restricted / UR

Companies covered with this rating 32% 46% 15% 7%

Compensation for investment banking 42% 42% 0% 33% services in the past 12 months*

*Percentage of investment banking clients in each rating category.

G. Price Target

Unless otherwise stated in the text of this report, target prices in this report are based on either a discounted cash flow valuation or comparison of valuation ratios with companies seen by the analyst as comparable or a combination of the two methods. The result of this fundamental valuation is adjusted to reflect the analyst’s views on the likely course of investor sentiment. Whichever valuation method is used there is a significant risk that the target price will not be achieved within the expected timeframe. Risk factors include unforeseen changes in competitive pressures or in the level of demand for the company’s products. Such demand variations may result from changes in technology, in the overall level of economic activity or, in some cases, in fashion. Valuations may also be affected by changes in taxation, in exchange rates and, in certain industries, in regulations. Investment in overseas markets and instruments such as ADRs can result in increased risk from factors such as exchange rates, exchange controls, taxation, and political and social conditions. This discussion of valuation methods and risk factors is not comprehensive – further information is available upon request.

H. Price Chart.

ETB (etb cb)

1000.0

900.0 Date Rating Price (COP) T.P. (COP) 800.0 17/08/2014 buy 514 540 12/09/2014 hold 565 620 700.0 B 630 B 720 24/10/2014 hold 549 600 B 600 600.0 B 630 26/10/2015 buy 605 630 500.0 B 600 24/06/2016 Under Rev iew 605 Under Rev iew 400.0 14/07/2016 buy 590 720

300.0 200.0

Jul-15 Jul-15

Oct-15 Apr-16 Jun-16

Jan-16

Mar-16

Feb-16

Sep-15 Aug-15 Nov-15 Dec-15 May-16

Source: Bloomberg and Credicorp Capital

Credicorp Capital ratings: B = Buy, H = Hold, U = Underperform

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In jurisdictions where Credicorp Capital Securities Inc. is not registered or licensed to trade in securities, or other financial products, transactions may be executed only in accordance with applicable law and legislation, which may vary from jurisdiction to jurisdiction and which may require that a transaction be made in accordance with applicable exemptions from registration or licensing requirements.

The information in this publication is based on sources believed to be reliable, but Credicorp Capital Securities Inc. does not make any representation with respect to its completeness or accuracy. All opinions expressed herein reflect the author's judgment at the original time of publication, without regard to the date on which you may receive such information, and are subject to change without notice.

Credicorp Capital Securities Inc. or its affiliates may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. These publications reflect the different assumptions, views and analytical methods of the analysts who prepared them. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is provided in relation to future performance.

Credicorp Capital Securities Inc. and any company affiliated with it may, with respect to any securities discussed herein: (a) take a long or short position and buy or sell such securities; (b) act as investment and/or commercial bankers for issuers of such securities; (c) act as market makers for such securities; (d) serve on the board of any issuer of such securities; and (e) act as paid consultant or advisor to any issuer. The information contained herein may include forward-looking statements within the meaning of U.S. federal securities laws that are subject to risks and uncertainties. Factors that could cause a company's actual results and financial condition to differ from expectations include, without limitation: political uncertainty, changes in general economic conditions that adversely affect the level of demand for the company's products or services, changes in foreign exchange markets, changes in international and domestic financial markets and in the competitive environment, and other factors relating to the foregoing. All forward-looking statements contained in this report are qualified in their entirety by this cautionary statement.

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ANDEAN RESEARCH TEAM SALES & TRADING

Heinrich Lessau Hugo Horta Director of Research Director of Sales & Trading [email protected] [email protected]

EQUITY RESEARCH EQUITY SALES & TRADING

CHILE PERU COLOMBIA Hernán Arellano Head of Equities Carolina Ratto Mallie Héctor Collantes Camilo Forero [email protected] Head of Equity Research - Retail Head of Equity Research - Mining Head of Equity Research [email protected] [email protected] [email protected] CHILE PERU COLOMBIA # (562) 2446 1768 # (511) 416 3333 Ext 33052 # (571) 339 4400 Ext 1002 Sofía Gueneau de Mussy Rodrigo Zavala Juan A. Jiménez Tomás Sanhueza Jasmine Helme Juan C. Domínguez International Equity Sales Head of Equity - Peru Head of International Equity Sales Senior Analyst: Banks [email protected] [email protected] [email protected] Senior Analyst: Food & Beverages, Senior Analyst: Consumer, Cement & Transport, Telecom & I.T. Construction [email protected] # (562) 2651 9340 # (511) 313 2918 Ext 36044 # (571) 339 4400 Ext 1701 [email protected] [email protected] # (571) 339 4400 Ext 1026 # (562) 2446 1751 # (511) 416 3333 Ext 36065 René Ossa Sebastián Gallego International Equity Sales Ursula Mitterhofer Santiago Castro Andrés Cereceda Jorge F. Tudela Analyst: Oil & Gas [email protected] Sales & Trading International Sales & Trading Analyst: Healthcare, Pension Funds, Senior Analyst: Utilities & Small-Caps [email protected] # (562) 2651 9324 [email protected] [email protected] Pulp & Paper [email protected] # (571) 339 4400 Ext 1594 # (511) 313 2918 Ext 32922 # (571) 339 4400 Ext 1344 [email protected] # (511) 416 3333 Ext 37854 Christian Munchmeyer # (562) 2446 1798 Carlos E. Rodriguez International Sales & Trading CREDICORP CAPITAL Juan Pablo Brosset Analyst: GEA & infrastructure [email protected] SECURITIES INC Frederic Cartallier Research Assistant [email protected] # (562) 2450 1613 Analyst: Utilities [email protected] # (571) 339 4400 Ext 1365 Christopher DiSalvatore [email protected] # (511) 416 3333 Ext 36018 Institutional Sales # (562) 2651 9332 Steffania Mosquera Credicorp Capital UK Ltd. [email protected] Analyst: Transport, Telecom & I.T. # (786) 999 1236 Germán Wagemann [email protected] Marilyn Macdonald Analyst # (571) 339 4400 Ext 1025 International Equity Sales Cristián Castillo [email protected] [email protected] International Sales Trader # (562) 2446 1688 # (4477) 7151 5855 [email protected] # (786) 999 1633

Lourdes Alamos FIXED INCOME SALES & TRADING Research Coordinator & Analyst [email protected] Andrés Nariño Alfredo Bejar # (562) 2450 1609 Director Sales Offshore Head of International FI [email protected] [email protected] # (571) 339-4400 Ext. 1459 # (511) 205 9190 Ext 36148

FIXED INCOME & ECONOMICS RESEARCH CHILE PERU COLOMBIA

CHILE COLOMBIA Gonzalo Covarrubias Evangeline Arapoglou Carlos Sanchez Head of Capital Markets Head of international FI Sales Head of Fixed Income Maria Eugenia Diaz Daniel Velandia [email protected] [email protected] [email protected] Senior Associate Fixed Income Head of Research & Chief Economist # (562) 2450 1635 # (511) 313 2902 - # (511) 313 2908 # (571) 323 9154 [email protected] [email protected] # (562) 2651 9308 # (571) 339 4400 Ext 1505 Guido Riquelme Andrés Valderrama Camilo Moreno Head of Sales Fixed Income Trader Head of Sales Sergio Ferro Camilo A. Durán [email protected] [email protected] [email protected] Senior Fixed Income Analyst Macro Analyst # (562) 2446 1712 # (571) 323 9163 # (571) 323 9252 [email protected] [email protected] # (562) 2651 9368 # (5511) 339 4400 Ext. 1383 Belén Larraín Guillermo Arana José Andrés Riveros Head of International FI Sales Fixed Income Sales Fixed Income Trader [email protected] [email protected] [email protected] # (562) 2446 1720 # (511) 313 2902 Ext. 36144 # (571) 339 4400 Ext 1180

Rafael Gaete Santiago de Aubeyzon Emilio Luna International Fixed Income Sales Fixed Income Sales Fixed Income Sales [email protected] [email protected] [email protected] # (562) 2651 9336 # (511) 313 2000 Ext. 36168 # (571) 339 4400

Benjamín Diaz CREDICORP CAPITAL SECURITIES INC Local Fixed Income Sales [email protected] Christian Jarrin Juan Carlos Londoño # (562) 2446 1738 Fixed Income Sales USA Fixed Income Trader [email protected] [email protected] Diego Hidalgo # 1 (786) 999 1616 # 1 (786) 9991607 Local Fixed Income Sales [email protected] Jhonathan Rico # (562) 2450 1693 Fixed Income Trader [email protected] # 1 (786) 9991614