Interconexion Electrica S A : APPROVAL OF PROJECT FOR DISTRIBUTION OF PROFITS FOR YEAR 2016 TO DECREE DIVIDENDS AND SET ASIDE EQUITY RESERVES

REGULAR SHAREHOLDER'S MEETING

ITEM 9 OF AGENDA

APPROVAL OF PROJECT FOR DISTRIBUTION OF PROFITS

FOR YEAR 2016 TO DECREE DIVIDENDS AND SET ASIDE EQUITY RESERVES

THE BOARD OF DIRECTORS CONSIDERING THAT:

1.Profit distribution should be consistent with the principles provided in the company's Bylaws and articles 155 and 454 of the Code of Commerce.
2.The company's net income for the 2016 period was COP 2.141.460 million.

3.The company's net profit is COP 2.054.617 million, calculated as follows:

Figures in millions of Colombian pesos

IT PROPOSES:

• To decree a dividend of COP 434.210 million, which corresponds to 21% of the liquid income and 64% percent of the liquid income excluding the recognition of the Basic Network of the Existing System in CTEEP. The proposal is based on giving an ordinary dividend of COP 248 per share and an extraordinary dividend of COP 144 per share, for a total of COP 392 per share which represents a 36% growth against last year for the 1,107,677,894 ordinary shares in circulation.
• To create a tax reserve in the amount of COP 86.843 million, as set forth by Article 130 of the Tax Code.
• To create an occasional reserve for equity strengthening in the amount of COP 1.620.407 million, to accomplish the investment commitments acquired, contribute to the growth strategy, and keep financial soundness.
• Dividends for COP 434.210 million will be paid as follows:

Ex dividend dates are hereinafter detailed:

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