Equity Research - Company Update nd June 2 , 2017 Telecom, IT & Media ETB Two steps to complete divestment Rating: BUY TP: COP 715

We are updating our 2017E T.P for ETB to COP 715/share and reiterating CREDICORP CAPITAL RESEARCH our BUY recommendation. This, in consideration of the favorable transaction floor, set at COP 671/share implying a 8.2% premium, a 1.2x Steffania Mosquera P/BV and a 6.3x 2016 EV/EBITDA multiple. But also, because we see the +(571) 3394400 ext. 1025 case for a possible premium resulting from the auctioning process amid [email protected] the controlling stake (86.4%) divestment held by the District of Bogotá, which grants tag along rights. Moreover, we think ETB could be favored Juan Camilo Dauder by its strategic market position, with a cutting edge infrastructure and +(574) 2042525 ext. 4155 improving fundamentals. [email protected] Sale process sets an opportunity for minority shareholders, with no downside in case it concludes successfully. The District is going through Stock Data the sale of its 86.4% stake in ETB. Minority shareholders have tag along rights Ticker etb cb in case of a transaction that results in the transfer of +30% stake of the Price (COP) 620 company, while the District is in the sale process of its controlling stake Target (COP) 715 (86.4%). If a strategic shareholder is interested in acquiring control, which should not be available under COP 671/share, minority shareholders should Total Return 15% have a minimum premium of 8.2%, once the sale process concludes. LTM Range 560 - 655 ETB as a unique asset. ETB is the only massive provider of FTTH in Market Cap (USD mn) 758 Colombia, with 1.3mn connected households in Bogota. Among the current Shares Outstanding (mn) 3,550 telecom environment of heavy competition, this asset should be valuable either Free Float 11.6% for fortifying an existing position in Colombia, or for entering the Colombian ADTV (USD mn) 0.12 market with an important position in a venue such as Bogota. That said, upside from the transaction is subject to interest from third parties and favorable bid incentives in the auction scheme. Furthermore, relative valuations set Price Chart (COP) and Volume (USD mn) up to 29% premiums when compared to current prices. 120 3 Improvement in cost structure. ETB had an upturn during the last year in 110 terms of cost structure, with a positive trend. EBITDA margin was set at 23% 2 during 1Q16 and reached 35% during 4Q16. This resulted in the first y/y 100 increase in EBITDA since 2011, despite the fact that revenues remained flat.

90 USD mn Furthermore, moderation in CAPEX continues to favor DCF for the company, 1 with a COP 400 bn CAPEX, below the company’s guidance. 80 Turning point in revenues. The company's revenues were flat during 2016, with a 20% decrease in fixed line and double digit growths in mobile, TV and 70 0 May-16 Sep-16 Jan-17 May-17 . Revenue from fiber and mobile was worth 21% of the top line during 2016, compared to 10% during 2015. This was mainly driven by non copper ETB COLCAP users almost doubling during 2016. The continuation of this trend, with decreases in fixed line but double digit increases in mobile, TV and internet result in an acceleration of the revenue growth starting in 2017. Valuation Sumary Sources: Bloomberg 2014 2015 2016a 2017E 2018E EV/EBITDA 2.6x 4.4x 5.7x 4.6x 4.4x IMPORTANT NOTICE (US FINRA RULE 2242) This document is intended for P/E nm nm nm nm nm INSTITUTIONAL INVESTORS and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail P/BV 0.6x 0.8x 1.1x 1.2x 1.4x investors. 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 P/CF nm nm nm nm nm may have a conflict of interest that could affect the objectivity of this report. Div Yield 3.4% 21.9% 0.0% 0.0% 0.0% Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on page 18 1to 22, Analyst Sources: Company Reports and Credicorp Capital; E Credicorp Capital Estimates Certification on Page 18. Additional disclosures on page 22. Credicorp Capital ETB Charts

ETB - Company Summary Company description Sector: Telecoms & Media Empresa de Telecomunicaciones de Bogotá (ETB) is a telecommunications prov ider w ith a strong Rating: Buy position in Bogotá w ith almost a 130 y ears ex perience. The company currently prov ides local and long- Target Price: 715 distance fix ed-line serv ices and broadband serv ices (34.1% market share in Bogota), TV serv ices (7.8% in Bogota) mobile v oice and internet. Stock Data Ticker etb cb Positives Concerns Price (COP) 620 - Attractiv e relativ e v aluations - Highly competitiv e market LTM Range 560 - 655 - Strong brand recognition and presence in Bogota - Decrease in ETB's customers in fix ed line Market Cap (USD mn) 758 - Only operator w ith massiv e FTTH Shares Outstanding(mn) 3,551 Free Float 12% ADTV (USD mn) 0.1 Income Statement COP mn 2014 2015 2016E 2017E 2018E LTM Revenue Breakdown Rev enues 1,416,447 1,460,006 1,458,533 1,485,966 1,612,329 EBIT 29,429 (252,439) (215,677) (198,478) (180,092) Data EBITDA 554,639 402,525 424,787 506,491 541,289 26% Mobile Net Income (36,492) (68,659) (254,686) (242,644) (221,724) 9% EPS (COP) -10.3 -19.3 -71.7 -68.3 -62.4 EBIT Margin 2.1% -17.3% -14.8% -13.4% -11.2% EBITDA Margin 39.2% 27.6% 29.1% 34.1% 33.6% TV 5% Net Margin -2.6% -4.7% -17.5% -16.3% -13.8%

Balance Sheet Internet COP mn 2014 2015 2016E 2017E 2018E 29% Fixed- line Cash & Equiv alents 861,909 585,357 269,457 326,549 222,667 31% Other Current Assets 710,867 524,834 367,722 418,496 450,183 Long Term Assets 3,214,175 3,788,240 3,679,303 3,595,974 3,635,738 Total Assets 4,786,951 4,898,431 4,316,482 4,341,019 4,308,588 Ownership Structure Financial Debt 530,238 530,180 550,180 530,180 710,912 Other Liabilities 1,438,886 2,089,639 1,768,883 2,056,064 2,064,625 Universidad Total liabilities 1,969,124 2,619,819 2,319,063 2,586,244 2,775,537 Distrital Shareholder's equity 2,817,827 2,278,612 1,997,419 1,754,775 1,533,051 2% Total liabilities + Equity 4,786,951 4,898,431 4,316,482 4,341,019 4,308,588 Foreign Net Debt (331,671) (55,177) 280,723 203,631 488,245 Funds 3% Net Debt / EBITDA (0.6) (0.1) 0.7 0.4 0.9 Financial Debt / Equity 18.8% 23.3% 27.5% 30.2% 46.4% Bogotá D.C. Others ROAE -1.3% -2.8% -12.0% -13.1% -13.9% 86% 9% ROAA -0.8% -1.4% -5.6% -5.6% -5.2%

Cash Flow COP mn 2014 2015 2016E 2017E 2018E Initial Cash 960,286 861,909 585,357 269,457 326,549 Management Cash from Operation 667,043 1,044,333 342,522 467,765 550,518 CEO: Jorge Catellanos CAPEX 703,267 703,267 403,363 527,238 655,625 CFO: Diana Barón Changes in Financial Debt (445) (58) 20,000 (20,000) 180,732 IR Manager: Eugenia Londoño Div idends (Paid) Receiv ed (61,709) (471,664) 0 0 0 w w w .etb.com.co Other CFI & CFF Items 0 145,896 275,059 (136,565) 179,506

Sources: Company Reports, Bloomberg and Final Cash 861,909 585,357 269,457 326,549 222,667 Credicorp Capital; E Credicorp Capital Estimates Change in Cash (98,378) (276,552) (315,900) 57,092 (103,881)

2 Investment Thesis: An opportunity for minority and strategic shareholders

Sale process to drive share price. The district announced the sale process of the company during 1H16, and share price had a +19.23% rally since January 2016. In Success in the accordance to the legal process to sell a publicly owned assets, the company was valued sale process of by an investment bank ( JP Morgan) to determine its minimum sale price (for any stake ETB guarantees sold by the District). This floor was set at COP 671/share, which means the District can a minimum not sell any stocks under this price. Additionally, if the sale process goes through, minority premium of 8.2% shareholders have tag along rights1 for share transfers of +30% stake in the company, while the percentage to be sold is 86.4%. Therefore, ETB shares set an opportunity in the short term related to the transaction. Likewise, the transaction offers upside for long term investors, which could benefit from the upturn the company could have with a strategic controlling shareholder. ETB as a tactical asset. Competition in Bogota’s market has become fierce over the last years. UNE/EPM lost 1% market share over the last year in internet market in Bogota, ETB’s while DirvecTV lost as much as 3% in TV market in Bogota, probably related to high infrastructure prices and unbundled TV products (See page 8). In this context ETB could provide scale should be for UNE/EPM or present the opportunity to DirecTV of bundling better its products. attractive for Moreover, ETB could provide a technologic advantage to the player that decides to other players in purchase a controlling stake in ETB, either to fortify an existing position or to enter the the sector Colombian market through a venue such as Bogota. ETB is the only massive provider of FTTH in Colombia, with 1.3mn connectable households in Bogota and the best internet product, with the highest speed offered in the market. Improvement in the cost structure of the company. The company went through a dramatic transformation during 2016, going from an EBITDA margin of 23% during 1Q16 to 35% in 4Q16. Recall ETB came from a negative period on these terms, as EBITDA ETB’s improved margin went from 53% in 2011 to 28% during 2015. Furthermore, EBITDA showed a y/y EBITDA margin increase during 2016 for the first time since 2011. We believe current EBITDA margins are and moderated sustainable for ETB, and we factor in an average EBITDA margin of 34.2% in our CAPEX projection. Moreover, the company had a more moderated CAPEX than what it had enhances previously announced, with a COP 400 bn it had during 2016, compared to COP 700 bn it valuations had implied. Top line seems to be at an inflection point, with less dependence on copper products, which seems to be stabilizing, while non copper products revenue grows at a double digit ETB’s revenue is pace. Non copper revenue was worth 25% of the top line in 1Q17, compared to 10% in successfully 2015. Market position improves in TV and mobile markets. The company is gaining TV changing its users successfully, as it has reached a 8% market share over the last 3 years in spite of stream of heavy competition in Bogota, setting its product as the most competitive of the market income away (See page 8). In regards to mobile services, the company continues to improve its position form copper with a 0.5% market share gain over the last year. Downside to our T.P from failure to sell ETB. If the sale process does not come through, minority shareholders would be subject to discontinuity in its management and strategy, related to the District’s controlling stake (see page 6 for more detail on previous processes). Also, there is an ongoing request for the recall of the mayor of Bogota, which Main downside if successful, could represent a bump in the road for the process. However no recall risk to our thesis request has ever been successful in Colombia.2 Upside on current minimum price (COP is failure to sell 671/share) is subject to competition and the terms of the auction, and in the case there the company were only one bidder, the stake could be sold at the minimum price. On the other hand, there is also upside risk from competition, enhanced valuations and control premiums.

1 http://www.alcaldiabogota.gov.co/sisjur/normas/Norma1.jsp?i=68967 2http://www.cmi.com.co/uno-dos-tres/la-revocatoria-del-alcalde-penalosa-es- practicamente-imposible/418869/ 3 What has changed in our estimates?

Our T.P is based Our T.P. is now based in a DCF model and a transaction multiple. Our 690 T.P. was on both a DCF based on an estimated transaction multiple of 6.0x EBITDA (See page 10 for and a multiple comparable transactions) but we provided a COP 600/share based on a DCF. We are factoring a slower CAPEX execution in our projection. The company’s CAPEX was COP 400 bn during 2016, much lower than the guidance it had given during May 2016, where it stated it should execute a 2.1 tn CAPEX between 2016 and 2018. In fact, Incorporating a the company had a positive cash flow in 1Q17 related to lower than expected CAPEX. We slower CAPEX were factoring this CAPEX between 2016 and 2019, but in our latest update we are including 80% of the maintenance CAPEX for PP&E plus a CAPEX per installed internet of mobile user. Therefore, the CAPEX of the company is now more moderated, but remains stable throughout the projection. Increased EBITDA margins. The company provided an EBITDA margin guidance of 28% Long term to 30% for 2016, beating it during 3Q16 and 4Q16, falling at 33% and 35% respectively. In EBITDA margin 1Q17 it surprised in again with a 36.3% EBITDA margin, setting a guidance EBITDA set at 35%, vs margin of ~36% for 2017 and ~35% for 2018. Also, it started reporting with a greater 30% detail its costs. Therefore, we are now projecting costs with a greater detail and our EBITDA margin now stands at 35% at the end of the projection, compared to a 30% in our previous update.

Lower revenue We moderated our revenue estimates, related to lower than expected ARPUs, resulting growth, related in a deceleration of the revenue. We are adjusting our estimates in terms of users for fixed to lower than line and internet users, increasing our forecasts due to better than expected results. expected Furthermore, we are estimating stable ARPUs, related to heavy competition and ARPUs expectation of market share gains. Changes in Estimates 2016A 2017E 2018E COP mn New Old Change New Old Change Rev enues 1,458,533 1,485,966 1,609,869 (7.7%) 1,612,329 1,826,455 (11.7%) Fix ed Line 457,000 436,529 500,931 (12.9%) 413,040 487943.561 (15.4%) Internet 406,000 439,459 460,754 (4.6%) 484,607 509336.172 (4.9%) Mobile 122,000 150,412 277,078 (45.7%) 204,611 411,754 (50.3%) TV 59,000 85,347 81,408 4.8% 120,081 106,780 12.5% EBITDA 424,787 506,491 474,830 6.7% 541,289 547,937 (1.2%) Net income (254,686) (242,644) (185,355) 30.9% (221,724) (174,976) 26.7% CAPEX 403,363 527,238 652,074 (19.1%) 655,625 695,179 (5.7%) EBITDA Margin 29.1% 34.1% 29.5% 4.6% 33.6% 30.0% 3.6% Market Shares Fix ed line 19.5% 19.4% 17.5% 1.8% 19.1% 17.5% 1.6% Internet 34.1% 34.5% 33.8% 0.7% 35.1% 33.8% 1.3% Mobile 1.2% 1.5% 1.8% -0.3% 1.9% 2.4% -0.5% TV 7.8% 10.6% 11.1% -0.5% 13.4% 14.3% -0.9% ARPU Local fix ed-line 29,035 29,121 33,701 (13.6%) 29,035 33,701 (13.8%) Internet 52,974 53,082 56,179 (5.5%) 53,082 57,912 (8.3%) Mobile 19,010 15,279 24,214 (36.9%) 15,736 24,975 (37.0%) TV 52,758 50,402 49,039 2.8% 52,758 50,580 4.3%

Credicorp Capital Estimates

4 Valuation Our COP We are calculating our 2017YE TP of COP 715 per share for ETB based on the average 715/share T.P is of our DCF model share price for the stand alone company and a price based on a based on a transaction multiple of 6.0x, to capture current fundamentals of the stand alone company relative valuation and potential upside from the transaction. and a DCF Valuation Inputs Risk Free Rate 2.4% EV Present (COP mn) 793,361 Risk Premium 6.0% EV Perpetuity (COP mn) 1,662,275 Unlev erd Beta 0.7 Total EV (COP mn) 2,455,636 Lev ered Beta 0.8 Debt 2017 530,180 Ke (USD) 10.6% Cash 2017 326,549 Ke (COP) 11.7% Net Debt 203,631 Kd (Before Tax es) 12.3% Equity Value (CPO mn) 2,252,005 Kd afer tax es 8.2% Outstanding Shares(mn) 3.551 CDS Colombia 2.2% 2017 YE DCF Price (COP) 630 Share price g 3.0% Current Price 620 based on a DCF WACC 11.0% Total Return 2% model is COP 630/share COP mn 2016A 2017E 2018E 2019E EBITDA 424,787 506,491 541,289 589,286 Tax es -51,060 0 0 0 CAPEX 403,363 527,238 655,625 633,176 Working Capital 133,325 38,726 -9,229 -10,561 Free Cash Flow -60,841 -59,473 -105,107 -33,328

Relative Valuation 2017 EBITDA 506,491 Net Debt 203,631 Multiple 6.0x EqV 2,835,317 A 6.0x EV 3,038,948 Share Price 800 EV/EBITDA valuation for Target Price ETB results in a Price based on transacion 800 (50% -50%) w eighted av erage 715 COP 800/share Price based on DCF 630 price

Implied Valuation Summary ETB LTM 2017 2018 2019 P/BV 1.3x 1.4x 1.7x 1.8x EV/EBITDA 6.5x 5.4x 5.1x 4.7x We are discounting the company’s cash flows from 2018 to 20281. According to our estimates, perpetuity is worth 67.7% of the company’s value. We highlight the company’s tax situation adds value to its shareholders, as it only pays taxes until 2027, related to a tax loss carry forward and to capex related exemptions. Without considering these two situations, DCF price would be COP 610/share, 3% lower. Our relative valuation is based on a 6.0x EV/EBITDA multiple, grounded on comparable transactions, which would result in a price of COP 800/share. Considering both of our valuations, our T.P. is COP 715/share, from on an average of both methods, capturing the fundamentals of the company and the potential transaction.

1 We are using a perpetuity based on a normalized cash flow, once tax exemptions related to Capex end.

5 Next Steps ETB is going through a sale of the share of the District in the company, however the sale process is suspended due to a legal action taken by a labor union of the company. We expect this to delay the process, as it happened in the 2008 – 2010 sale attempt. According to local media, a decision by the tribunal should take around 3 months.4 Sale process of According to Law 226 process ( Law for selling state - owned assets), the sale process shares for should comply with three conditions i) under no circumstances should the sale harm general government interests, meaning that the transaction can not be closed under Book Value; investors should ii) the sale should be supported by technical studies that take under consideration the start during July, profitability, the liabilities and assets of the company, meaning a valuation opinion from an at prices not investment bank (in this case JP Morgan) and iii) given that ETB provides a public service, lower than COP the continuity of its services should be guaranteed. 671/share The sale has already been approved by the Bogota Council (May 30th - 2016) and the minimum price was published during April 26th 2017at COP 671/share. The next step for the sale is a 2 month period, which started on May 9th and is currently suspended. This stage prioritizes purchases from special actors such as mutual funds, labor unions, employees and former employees of the company at a COP 671/share price. However, some acquisition caps are stated for these actors, with a maximum of 10.7 mn shares to be acquired which con on be sold until 2 years after the transaction. Once this process is concluded, other actors, including strategic investors should enter the transaction, at a price not lower than the minimum price (COP 671/share). This point of the process could grant a further upside to minority shareholders. Should there be competition and competition enhancing auction mechanisms, strategic shareholders should end paying premiums compared to the COP 671/ share price. Once the sale is concluded, the bidder would have to do a tender offer for minority shareholders 6 months after the transaction.

The District published Decree 207 of 2017 to outline the divestment process, but there are still several questions to be answered for the process, which should be cleared through the bylaws of the first and second stage. Previous processes 2011: Process to sale up to the whole District’s participation. This proposal did not end up being approved by Bogota’s Council. 2008-2010: ETB started the search of a strategic shareholder on October 2008, looking We believe for a partner that would capitalize the company while the District kept the control. The current sale bylaws for the process became public on September 2009 and the sale process was process should suspended during 52 days related to a legal action by the labor union of the company2. be successful Telmex, Telefonica, Entel and were among the rumored interested parties of the related to transaction. Finally, the share dropped 38% during Sep 2010 when there were no bids competition on from strategic shareholders. the sector, the 2000: The company had not been listed yet. Major of Bogota, Enrique Peñalosa fostered controlling stake the sale of the asset. According to the major, interested parties did not end up concluding on the table and the process related to security issues in the country. On the other hand, Colombian appetite for attorney said this cancelation was related to irregularities in the process. Either way, the Colombia sale did not come through and Enrique Peñalosa is once again major of Bogota. 3

We believe current conditions support a sale for ETB, with competition in the sector, a general appetite for Colombia and control for the company on the table.

1 http://www.dinero.com/edicion-impresa/negocios/articulo/etb-entra-recta-final/88158 2 http://www.corteconstitucional.gov.co/relatoria/2010/T-882-10.htm 3 http://www.eltiempo.com/archivo/documento/MAM-1245622 4http://www.eltiempo.com/bogota/autorizacion-para-vender-la-etb-sigue-vigente-pese-a-decision-judicial- 6 89848 Possible strategic bidders . Millicom, which operates through TIGO in Colombia has stated its interest in purchasing a stake in ETB. Millicom has presence in Latam and Africa. It has a close relationship with ETB, related to the JV they have in mobile services, where Millicom has a 18% mobile market share while ETB has a 1% share. A purchase of ETB could represent important synergies as Millicom bundles TV + Mobile + Internet outside Colombia. A purchase would allow the multinational to complete its bundle, from currently having only mobile services (directly). Millicom could also profit from ETB’s data center, another business line from both companies. . UNE - 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 34.1% market share and EPM has a 8.7% market share. This would place EPM as the main competitor of Claro in internet both in Bogota and in Colombia (where Claro holds 37% and 47% respectively). . It is noteworthy that TIGO (Millicom) acquired a 50% stake in UNE – EPM, while UNE has a 50% + 1 stake on the company. This implies that UNE- EPM and Millicom could eventually be a single bidder through UNE TIGO. . Une – EPM has a 3.5x Debt/EBITDA ratio, which could imply the need for additional funding from its parent companies. . AT&T - DirecTV: in 2015, the company expressed its interest on ETB, as it 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 in this service. Furthermore, DirecTV’s product loses competitivity without bundling, which could result in client churn. If the transaction were to happen, DirecTV would be able to bundle internet, mobile, TV and telephone, offering more competitive prices. . Telefonica: Telefonica no longer seems like a fit buyer for ETB, related to its difficult financial situation and the latest capitalization announced by its shareholders.

7 Market Shares Mobile Mobile Internet 2015 2016 2015 2016 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q CLARO 51% 49% 49% 49% 49% 55% 55% 56% 55% 53% 22% 23% 23% 23% 23% 24% 27% 26% 26% 29% TIGO+UNE/EPM 20% 20% 20% 19% 18% 16% 13% 12% 13% 12% VIRGIN 4% 4% 4% 4% 4% AVANTEL 1% 1% 2% 2% 2% 3% 3% 3% 3% 3% ÉXITO 1% 1% 2% 2% 2% ETB 1% 1% 1% 1% 1% 2% 2% 2% 3% 3% UFF 0% 0% 0% 0% 0%

Internet market share in Colombia Internet market share in Bogota 100% 100%

80% 80% EPM would be the second 60% 60% participant in 40% 40% internet market shares both in 20% 20% Bogota and in 0% 0% Colombia through 1Q114Q113Q122Q131Q144Q143Q152Q16 1Q114Q113Q122Q131Q144Q143Q152Q16 a purchase of ETB Claro UNE/EPM Movistar Others ETB. ETB Claro UNE/EPM Movistar Others Fixed line market share in Colombia Fixed line market share in Bogota 100% 100%

80% 80% 60% 60% 40% 40% ETB has slightly 20% decreased its 20% market share over 0% the last 2 years 4Q15 1Q16 2Q16 3Q16 4Q16 0% ETB Claro UNE Movistar Others 4Q15 1Q16 2Q16 3Q16 4Q16 ETB Claro UNE Movistar Others TV Market Share in Colombia TV Market Share in Bogota

100% 100%

80% 80%

60% 60%

40% 40%

ETB has gained 20% 20% TV market share since its entry to 0% 0% Bogota, with a 8% 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 share gain in less ETB Claro DIRECTV UNE/EPM ETB Claro DIRECTV UNE/EPM than 3 years. Movistar HV TV Others Movistar HV TV Others

8 Comparable transactions

Transaction Percent Implied Date Target/Issuer Country Value USD Sought EV/EBITDA mn (%) 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 07/24/2015 Public Joint-Stock Company Bashinformsv y az Russia 36 25.0 2.7x We arrive at a EV/EBITDA 06/09/2014 PT Link Net Tbk Indonesia 62 15.06 5.5x median of 6.1x in 04/07/2014 Numericable-SFR France 1,610 34.59 10.6x comparable transactions 11/05/2013 O2 Czech Republic AS Czech Republic 3,481 65.9 4.6x 10/18/2013 Phoenix Satellite Telev ision Holdings Ltd. Hong Kong 214 12.15 9.3x 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

Source: Capital IQ

9 Comparables

Mkt. Cap P/E FV/EBITDA P/BV EBITDA ROE Div. Yield Company USD mn 2017E 2018E 2017E 2018E LTM Mg. LTM 2017E LATAM ETB 760 n.m n.m 5.7 4.8 1.1 32.5% -11.2% n.a. Entel 3,414 47.1 24.5 7.9 6.7 1.8 22.0% 1.9% 0.4% Telefonica Brazil 22,865 14.9 12.8 5.3 5.0 1.1 32.2% 5.5% 4.6% Oi 981 n.a. n.a. 6.9 6.6 0.3 25.0% -43.5% n.a. TIM 7,254 27.0 22.2 4.7 4.4 1.4 34.1% 4.3% 0.6% America Mov il 53,432 16.1 16.6 6.2 6.1 4.1 26.4% 15.8% 1.9% Ax tel 497 n.a. 26.9 5.9 5.5 3.9 30.0% -58.4% n.a. Telecom Argentina 5,076 15.9 13.8 5.0 4.5 4.1 27.5% 26.6% 1.6% Latam Avg 24.2 19.4 5.96 5.44 2.2 28.2% -6.8% 1.8% USA and Canada AT&T 238,973 13.4 13.0 6.8 6.7 1.9 30.4% 10.2% 5.0% Verizon 189,731 12.4 12.1 6.8 6.7 7.9 34.2% 51.0% 4.9% Telephone & Data 3,203 n.a. n.a. 5.0 4.9 0.7 19.1% 1.5% 2.1% T-Mobile 56,414 33.8 26.1 7.8 7.0 3.1 26.1% 9.2% n.a. Us Cellular Corp 3,431 n.a. n.a. 5.8 5.6 0.9 17.1% 1.8% n.a. Sprint 34,123 n.a. n.a. 5.9 5.9 1.8 29.7% -6.4% n.a. Shenandoah 1,510 n.a. n.a. 8.0 7.6 5.1 34.1% -4.2% 0.8% Telus 20,199 16.9 15.9 8.1 7.8 3.4 33.7% 16.5% 4.1% BCE 40,699 18.1 17.2 9.0 8.7 3.1 39.7% 17.2% 4.5% Rogers Communications 24,084 19.1 17.8 9.4 9.1 6.1 32.9% 17.5% 3.0% USA and Canada Avg 19.0 17.0 7.3 7.0 3.4 29.7% 11.4% 3.5% Europe Telekom Austria 5,418 15.9 15.0 5.4 5.3 1.9 31.8% 16.1% n.a. Mobistar n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Telenet 7,864 31.2 23.0 10.0 9.2 (6.2) 45.0% -10.0% n.a. Bt Group 38,997 10.6 10.3 5.4 5.4 3.7 28.0% 23.9% 4.8% 78,696 32.6 25.9 7.1 6.6 1.0 30.8% -8.8% 5.1% Tdc 4,809 14.6 13.6 6.5 6.5 1.4 39.2% 13.0% 2.6% Elisa n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Orange 46,309 15.1 14.1 5.3 5.2 1.3 26.5% 9.3% 3.9% Viv endi 28,407 28.3 23.3 18.6 15.5 1.4 8.4% 2.6% 2.0% Deutsche Telekom 90,774 20.0 17.1 6.2 6.0 2.2 28.1% 0.8% 3.5% Hellenic Telecom 5,302 19.3 16.2 4.3 4.2 1.9 32.3% 5.6% 0.9% Telecom Italia 18,829 11.4 10.6 5.4 5.3 0.8 42.7% 7.0% n.a. Telenor 24,514 14.2 13.0 5.7 5.6 3.8 35.2% 5.1% 5.7% Ab-A 5,245 28.8 21.2 9.3 8.2 2.6 9.4% -11.0% 5.7% Millicom 5,897 44.2 26.3 4.1 3.9 1.8 32.1% -1.5% 4.6% Sw isscom 24,843 16.4 16.4 7.6 7.7 3.9 37.0% 25.5% 4.7% Europ Avg 21.6 17.6 7.2 6.8 1.5 30.8% 5.7% 3.9%

10 Financial Statements

ETB Income Statement COP mn 2014 2015 2016E 2017E 2018E Revenues 1,416,447 1,460,006 1,458,533 1,485,966 1,612,329 Fix ed line 568,000 457,000 436,529 413,040 Internet 366,000 406,000 439,459 484,607 Data 365,000 370,000 346,319 359,837 Mobile 67,000 122,000 150,412 204,611 TV 22,000 59,000 85,347 120,081 Other* 72,006 44,533 27,899 30,154 Costs & Ex penses 861,808 1,057,481 1,033,745 979,474 1,071,041 EBITDA 554,639 402,525 424,787 506,491 541,289 EBITDA Mgn 39.2% 27.6% 29.1% 34.1% 33.6% Depreciations & Amortizations 378,946 424,014 541,958 602,582 615,861 EBIT 933,585 826,540 966,745 1,109,074 1,157,150 EBIT Mgn 65.9% 56.6% 66.3% 74.6% 71.8% Non Operating Income /ex penses 1.6 1.3 1.4 1.5 1.5 Earnings before tax es (67,082) (277,270) (277,324) (242,532) (221,724) Tax es (30,590) (208,611) (51,060) 0 0 Net Income (36,492) (68,659) (254,686) (242,644) (221,724) Net Mgn (2.6%) (4.7%) (17.5%) (16.3%) (13.8%)

ETB Balance Sheet COP mn 2014 2015 2016E 2017E 2018E Cash and equiv alents 861,909 585,357 269,457 326,549 222,667 Accounts receiv able 225,206 235,903 204,457 223,792 241,747 Inv erntories 13,163 20,705 9,286 6,633 7,165 PP&E 2,413,236 2,766,791 2,602,615 2,548,507 2,587,325 Intangibles 384,047 432,671 458,252 437,015 437,961 Long Term Inv estments 46,424 49,731 43,803 36,590 36,590 Other 842,967 807,273 728,612 761,933 775,133 Assets 4,786,951 4,898,431 4,316,482 4,341,019 4,308,588 Debt 530,238 530,180 550,180 530,180 710,912 Accounts pay able 476,447 627,356 451,166 429,122 456,838 Other 962,438 1,462,283 1,317,717 1,626,942 1,607,788 Liabilities 1,969,124 2,619,819 2,319,063 2,586,244 2,775,537 Shareholders equity 2,817,827 2,278,612 1,997,419 1,754,775 1,533,051 Sources: Company Reports and Credicorp Capital; E Credicorp Capital Estimates

11 Other Figures Operating Figures 2014 2015 2016E 2017E 2018E Subscribers Local fix ed-line 1,441,320 1,359,322 1,278,256 1,216,174 1,152,754 Broadband 563,362 606,083 647,345 712,109 780,793 Cell Phone 21,170 390,171 689,811 914,807 1,183,826 TV 15,436 69,649 110,584 157,197 207,365 Market Share (%) Local fix ed-line Colombia 20.1% 19.6% 19.5% 19.4% 19.1% Broadband Bogota 33.6% 33.8% 34.1% 34.5% 35.1% Cell Phone Colombia 0.0% 0.7% 1.2% 1.5% 1.9% TV Bogota 0.4% 4.5% 7.8% 10.6% 13.4% ARPU (monthly COP) Local fix ed-line 34,977 34,076 29,035 29,121 29,035 Internet 51,301 51,484 52,974 53,082 53,082 Mobile 100,142 29,165 19,010 15,279 15,736 TV 33,990 35,192 52,758 50,402 52,758

Financial Ratios 2014 2015 2016E 2017E 2018E Debt Debt / Assets 11.1% 10.8% 12.7% 12.2% 16.5% Debt / Equity 0.2x 0.2x 0.3x 0.3x 0.5x Debt / EBITDA 1.0x 0.9x 1.0x 0.8x 1.1x Profitability ROAE -1.3% -2.8% -12.0% -13.1% -13.9% ROAA -0.8% -1.4% -5.6% -5.6% -5.2% Net Mgn -2.6% -4.7% -17.5% -16.3% -13.8% Rev enues / Assets 0.30 0.30 0.34 0.34 0.37 Assets / Equity 1.7 2.1 2.2 2.5 2.8 CAPEX CAPEX (COP mn) 2,893,441 826,194 403,363 527,238 655,625 CAPEX / Rev enues 204.3% 56.6% 27.7% 35.5% 40.7%

12 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”). Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this research report can do so only through Credicorp Capital Securities Inc., a registered broker-dealer in the United States. Under no circumstances may a U.S. recipient of this research report effect any transaction to buy or sell securities or related financial instruments directly through Credicorp Capital. CCSI or any of its representatives are not involved in any way in the preparation, development, or supervision of the research report and does not have any influence whatsoever over the research content. Any analyst whose name appears on this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority (“FINRA”) and is not a registered representative of Credicorp Capital Securities Inc. and, therefore, is not subject to applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a research analyst account.

A. Analyst Disclosures The functional job title of the person(s) responsible for the recommendations contained in this report is Equity Research Analyst unless otherwise stated on the cover.

Regulation AC - Analyst Certification: Each Equity Research Analyst listed on the front-page of this report is principally responsible for the preparation and content of all or any identified portion of this research report and hereby certifies that with respect to each issuer or security or any identified portion of the report with respect to an issuer or security that the Equity Research Analyst covers in this research report, all of the views expressed in this research report accurately reflect their personal views about those issuer(s) or securities. Each Equity Research Analyst also certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that Equity Research Analyst in this research report. Each Equity Research Analyst certifies that he or she is acting independently and impartially from the referenced company/shareholders, directors and is not affected by any current or potential conflict of interest that may arise from any of the companies’ activities. Analyst Compensation: The research analyst(s) primarily responsible for the preparation of the content of this research report attest(s) that no part of his or her compensation was, is or will be, directly or indirectly, related to the specific recommendations that he or she expressed in the research report. The equity research analysts responsible for the preparation of this report receive compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues. Registration of non-US Analysts: Unless otherwise noted, the non-US analysts listed on the front of this report are employees of one of the companies jointly referred as Credicorp Capital, which are non-US affiliates of Credicorp Capital Securities Inc., a SEC registered and FINRA member broker-dealer. Equity Research Analysts employed by the companies jointly referred as Credicorp Capital, are not registered/ qualified as research analysts under FINRA/NYSE rules, are not registered representatives of Credicorp Capital Securities Inc. and may not be subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account. Please refer to www.credicorpcapital.com for further information relating to research and conflict of interest management.

13 B. Ownership and Material Conflicts of Interest

Other significant financial interests Credicorp Capital Securities Inc. or its affiliates ´beneficially own´ securities issued by the company referenced in this report according to the following table:

Type of instruments Equal or less than USD 50,000 Other equity securities - Debt securities - Derivatives on ETB equity/debt securities

Neither the research analysts primarily responsible for the preparation of the content of this research report nor their household members ´beneficially own´ securities issued by any of the companies referenced herein.

C. Compensation and Investment Banking Activities Neither Credicorp Capital Securities Inc. or any of its affiliates have managed or co-managed a public offering of securities for any of the companies referenced in this report. Neither Credicorp Capital Securities Inc. nor its affiliates have received compensation, within the past 12 months, for investment banking services from any of the companies referenced in this report. Neither Credicorp Capital Securities Inc. nor its affiliates do expect to receive or intend to seek compensation, in the next 3 months, for investment banking services from the companies referenced in this report.

D. Other Compensation and Non-Investment Banking Activities Credicorp Capital Securities Inc. or its affiliates currently provide or have provided, within the past 12 months, non-investment- banking securities-related services to the following company: ETB Credicorp Capital Securities Inc. or its affiliates also have received compensation, within the past 12 months, for non-investment- baking securities-related services from the following company: ETB

E. Market Making Credicorp Capital Securities Inc. or its affiliates act as market maker in the following company(ies): ETB

14 F. 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. The IPSA, COLCAP and IGBVL indexes are the selective equity indexes calculated by the Bolsa de Comercio de Santiago, the Bolsa de Valores de Colombia, and the Bolsa de Valores de Lima, respectively. 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.

G. Distribution of Ratings

Buy Hold Underperform Restricted / UR

Companies covered with this rating 31% 49% 14% 6%

Compensation for investment banking 36% 41% 18% 20% services in the past 12 months*

*Percentage of investment banking clients in each rating category.

H. 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.

15 I. Price Chart.

ETB (etb cb)

800 Date Rating Price (COP) T.P. (COP) 750 12/09/2014 hold 565 620 24/10/2014 hold 549 600 700 26/10/2015 buy 605 630 B 715 650 B 690 24/06/2016 Under Rev iew 587 Under Rev iew B 720 600 01/07/2016 buy 587 720 550 06/09/2016 buy 606 690 02/06/2017 buy 620 715 500 450

400

Jul-16

Oct-16 Apr-17

Jun-16 Jan-17 Jun-17

Feb-17 Mar-17

Nov-16 Dec-16

Aug-16 Sep-16 May-17

Source: Bloomberg and Credicorp Capital

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

16 II.ADDITIONAL DISCLOSURES

This product is not for retail clients or private individuals.

The information contained in this publication was obtained from various publicly available sources believed to be reliable, but has not been independently verified by the companies jointly referred as Credicorp Capital, therefore they do not warrant the completeness or accuracy of such information and does not accept any liability with respect to the accuracy or completeness of such information, except to the extent required by applicable law. This publication is a brief summary and does not purport to contain all available information on the subjects covered. Further information may be available on request. This report may not be reproduced for further publication unless the source is quoted. This publication is for information purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of any securities, or for engaging in any other transaction. This publication is not for private individuals.

Any opinions, projections, forecasts or estimates in this report are those of the author only, who has acted with a high degree of expertise. They reflect only the current views of the author at the date of this report and are subject to change without notice. The companies jointly referred to as Credicorp Capital have no obligation to update, modify or amend this publication or to otherwise notify a reader or recipient of this publication in the event that any matter, opinion, projection, forecast or estimate contained herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. The analysis, opinions, projections, forecasts and estimates expressed in this report were in no way affected or influenced by the issuer. The author of this publication benefits financially from the overall success of Credicorp Capital. The investments referred to in this publication may not be suitable for all recipients. Recipients are urged to base their investment decisions upon their own appropriate investigations that they deem necessary. Any loss or other consequence arising from the use of the material contained in this publication shall be the sole and exclusive responsibility of the investor and Credicorp Capital accepts no liability for any such loss or consequence. In the event of any doubt about any investment, recipients should contact their own investment, legal and/or tax advisers to seek advice regarding the appropriateness of investing. Some of the investments mentioned in this publication may not be readily liquid investments. Consequently it may be difficult to sell or realize such investments. The past is not necessarily a guide to future performance of an investment. The value of investments and the income derived from them may fall as well as rise and investors may not get back the amount invested. Some investments discussed in this publication may have a high level of volatility. High volatility investments may experience sudden and large falls in their value which may cause losses. International investing includes risks related to political and economic uncertainties of foreign countries, as well as currency risk.

To the extent permitted by applicable law, no liability whatsoever is accepted for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of this publication or its contents.

This report may not be independent of Credicorp Capital’s proprietary interests. Credicorp Capital trades the securities covered in this report for its own account and on a discretionary basis on behalf of certain clients. Such trading interests may be contrary to the recommendation(s) offered in this report

Credicorp Capital (and its affiliates) has implemented written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research business, which are available upon request. The Credicorp Capital research analysts and other staff involved in issuing and disseminating research reports operate independently of Credicorp Capital’s Investment Banking business. Information barriers and procedures are in place between the research analysts and staff involved in securities trading for the account of Credicorp Capital or clients to ensure that price sensitive information is handled according to applicable laws and regulations.

17 Country and region disclosures

United Kingdom: This document is for persons who are Eligible Counterparties or Professional Clients only and is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described in Articles 19(5) (Investment professionals) and 49(2) (High net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. Any investment to which this document relates is available only to such persons and other classes of person should not rely on this document.

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This communication is confidential and is intended solely for the addressee. It is not to be forwarded to any other person or copied without the permission of the sender. This communication is provided for information only. It is not a personal recommendation or an offer to sell or a solicitation to buy the securities mentioned. Investors should obtain independent professional advice before making an investment.

Notice to U.S. Investors: This material is not for distribution in the United States, except to “major US institutional investors” as defined in SEC Rule 15a-6 ("Rule 15a-6") and related guidance. Credicorp Capital and its affiliates has entered into arrangements with Credicorp Capital Securities Inc., which enables this report to be furnished to certain U.S. recipients in reliance on Rule 15a-6 through Credicorp Capital Securities Inc., which is registered under the U.S. Securities Exchange Act of 1934, as amended.

Each U.S. recipient of this report represents and agrees, by virtue of its acceptance thereof, that it is a "major U.S. institutional investor" (as such term is defined in Rule 15a-6) and that it understands the risks involved in executing transactions in such securities. Any U.S. recipient of this report that wishes to discuss or receive additional information regarding any security or issuer mentioned herein, or engages in any transaction to purchase or sell or solicit or offer the purchase or sale of such securities, should contact a registered representative of the Credicorp Capital Securities Inc. that provided the report.

Credicorp Capital Securities Inc. is a broker-dealer registered with the SEC, a member of FINRA and SIPC. You can reach Credicorp Capital Securities Inc. At 121 Alhambra Plaza, suite 1200, Coral Gables, Miami 33134, phone (305) 4480971 Equity trading: 786 999 1633.

You may obtain information about SIPC, including the SIPC brochure, by contacting SIPC directly at 202-371-8300; website: http://www.sipc.org

18 Credicorp Capital Securities Inc., is a wholly owned subsidiary of Credicorp Capital Ltd.

Nothing herein excludes or restricts any duty or liability to a customer that Credicorp Capital Securities Inc. have under applicable law. Investment products provided by or through Credicorp Capital Securities Inc. are not insured by the Federal Deposit Insurance Corporation and are not deposits or other obligations of any insured depository institution, may lose value and are not guaranteed by the entity that published the research as disclosed on the front page and are not guaranteed by Credicorp Capital Securities Inc.

Investing in non-U.S. Securities may entail certain risks. The securities referred to in this report and non-U.S. issuers may not be registered under the U.S. Securities Act of 1933, as amended, and the issuer of such securities may not be subject to U.S. reporting and/or other requirements. Rule 144A securities may be offered or sold only to persons in the U.S. who are Qualified Institutional Buyers within the meaning of Rule 144A under the Securities Act. The information available about non-U.S. companies may be limited, and non-U.S. companies are generally not subject to the same uniform auditing and reporting standards as U.S. companies. Securities of some non-U.S. companies may not be as liquid as securities of comparable U.S. companies. Securities discussed herein may be rated below investment grade and should therefore only be considered for inclusion in accounts qualified for speculative investment.

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19 CONTACT LIST

ANDEAN RESEARCH TEAM SALES & TRADING

Heinrich Lessau Hugo Horta Director of Research Director of Sales & Trading [email protected] [email protected] # (562) 24461704 # (511) 416 3333 Ext 36088

EQUITY RESEARCH EQUITY SALES & TRADING

CHILE PERU COLOMBIA CHILE PERU COLOMBIA

Carolina Ratto Mallie Héctor Collantes Juan Camilo Dauder René Ossa Rodrigo Zavala Juan A. Jiménez Head of Equity Research - Retail Head of Equity Research - Mining Head of Equity Research International Equity Sales Head of Equity - Peru Head of International Equity Sales [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] # (562) 2446 1768 # (511) 416 3333 Ext 33052 # (571) 339 4400 Ext 4155 # (562) 2651 9324 # (511) 313 2918 Ext 36044 # (571) 339 4400 Ext 1701

Tomás Sanhueza Jorge F. Tudela Carlos E. Rodriguez Christian Munchmeyer Ursula Mitterhofer Santiago Castro Senior Analyst: Food & Beverages, Senior Analyst: Utilities & Small-Caps Associate: Infrastructure, consumption International Sales & Trading Sales & Trading International Sales & Trading Transport, Telecom & I.T. [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] # (511) 416 3333 Ext 37854 # (571) 339 4400 Ext 1365 # (562) 2450 1613 # (511) 313 2918 Ext 32922 # (571) 339 4400 Ext 1344 # (562) 2446 1751 Credicorp Capital UK Ltd. Credicorp Capital Securities INC Andrés Cereceda Sebastián Gallego Senior Analyst: Healthcare, Pension Associate: Banks Marilyn Macdonald Funds, Pulp & Paper. [email protected] International Equity Sales Christopher DiSalvatore [email protected] # (571) 339 4400 Ext 1594 [email protected] Institutional Sales # (562) 2446 1798 # (4477) 7151 5855 [email protected] # (786) 999 1236 Frederic Cartallier Steffania Mosquera Senior Analyst: Utilities Senior Analyst: Transport, TMT & I.T. Cristián Castillo [email protected] [email protected] International Sales Trader # (562) 2651 9332 # (571) 339 4400 Ext 1025 [email protected] # (786) 999 1633 German Wagemann Analyst: Industrials & Mining FIXED INCOME SALES & TRADING [email protected] # (562) 2450 1688 Andrés Nariño Alfredo Bejar Director Sales Offshore Head of International FI Ana María Bauzá [email protected] [email protected] Research Coordinator # (571) 339-4400 Ext. 1459 # (511) 205 9190 Ext 36148 [email protected] # (562) 2450 1609 CHILE PERU COLOMBIA

FIXED INCOME & ECONOMICS RESEARCH Gonzalo Covarrubias Evangeline Arapoglou Carlos Sanchez Head of Capital Markets Head of international FI Sales Head of Fixed Income CHILE PERU COLOMBIA [email protected] [email protected] [email protected] # (562) 2450 1635 # (511) 416 3333 Ext 36099 # (571) 323 9154 Maria Eugenia Diaz Diego Cavero Daniel Velandia, CFA Head of Fixed Income Research Senior Fixed Income Analyst Head of Research & Chief Economist Guido Riquelme Andrés Valderrama Camilo Moreno [email protected] [email protected] [email protected] Head of Sales Fixed Income Sales Head of Sales # (562) 2651 9308 # (511) 416 3333 Ext 37946 # (571) 339 4400 Ext 1505 [email protected] [email protected] [email protected] # (562) 2446 1712 # (511) 416 3333 Ext 40352 # (571) 323 9252 Felipe Guzmán Juan Pablo Brosset Camilo A. Durán Senior Economist Fixed Income Analyst Macro Analyst Belén Larraín Lizeth Espiritu Andrés Agudelo [email protected] [email protected] [email protected] Head of International FI Sales Fixed Income Sales Fixed Income Sales # (562) 2651 9385 # (511) 416 3333 Ext 36018 # (5511) 339 4400 Ext. 1383 [email protected] [email protected] [email protected] # (562) 2446 1720 # (511) 416 3333 Ext 36143 # (571) 339 4400 Ext 1768

Rafael Gaete Guillermo Arana Emilio Luna Local Fixed Income Sales Fixed Income Sales Fixed Income Sales [email protected] [email protected] [email protected] # (562) 2651 9336 # (511) 313 2902 Ext. 36144 # (571) 339 4400 Ext 1761

Diego Hidalgo Santiago de Aubeyzon Credicorp Capital Securities INC Local Fixed Income Sales Fixed Income Sales [email protected] [email protected] # (562) 2450 1693 # (511) 313 2000 Ext. 36168 Jhonathan Rico Fixed Income Sales [email protected] # 1 (786) 999 1614

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