Investor Presentation Colombia Inside Out New York. September, 2014

Transcription

1 Investor Presentation Colombia Inside Out New York. September,

2 Disclaimer Certain statements contained in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of These forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Also, these forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by federal securities laws, we do not intend to update you concerning any future revisions to any forward-looking statements to reflect events or circumstances occurring after the date of this report. Amounts expressed in US dollars are for information purposes only, and do not reflect accounting conversion techniques usually applied. 2

3 AGENDA About ISA Consolidated Financial Results 3

4 ISA, a Linear Infrastructure Company ELECTRIC ENERGY TRANSPORT TOLL ROAD CONCESSIONS TELECOMMUNICATIONS TRANSPORT SMART MANAGEMENT OF REAL TIME SYSTEMS Revenues by Business S14 Electric Energy Transport 95% 90% 80% 80% 68% 69% Toll road concessions 0% 5% 16% 17% 26% 22% Telecommunications Transport 3% 3% 2% 3% 4% 6% Smart Management of Real Time Systems 2% 2% 2% 2% 2% 3% 4

5 Opportunities Electric Infrastructure 19 companies in Colombia, Peru, Central America, Bolivia, Brazil and Chile. 40,630 km circuits of transmission lines in operation, 5,132 km circuits under development (includes Chile s projects). Transformation capacity: 75,148 MVA. Majority participation in Colombia and Peru, greater transmission operator in the state of Sao Paulo in Brazil, and an important participation in Bolivia. Network availability in 2013: ISA 99.93%, TRANSELCA 99.89%, REP 99.60%, Transmantaro 99.70%, ISA Peru 99.83%, ISA Bolivia 99.73% and CTEEP 99.98%. Perspectives OPEX and CAPEX efficiencies Evaluate investment opportunities and invest in those that are relevant for ISA. Colombia, UPME 2014 expansion plan for transmission lines and substations. Estimated value USD 948 million. Peru, Proinversión transmission line projects for Estimated value USD 144 million. Chile, CDEC-SIC transmission line projects. Estimated value USD 515 million in

6 Opportunities Road Infrastructure Largest toll road concession operator in Chile. 907 km of toll road infrastructure in operation. Used by over 99 million vehicles in toll plazas. 293 bridges, 368 structures (overpasses, connections, among others), 188 pedestrian walkways. Design speed is 120 km/hour. Award for road safety in all concessions during 2013, which implies higher revenues. Perspectives Enter the toll road concession operation in Colombia. Develop service and security works in existing roads. Colombia, ANI Projects 4G bids. Concessions where ISA is prequalified (figures in million): Girardot Neiva 400 km - USD 990 Cruz del Viso-Carreto-Palmar de Varela USD 630 Santana-Mocoa-Neiva - USD 1,290 Bogota-Villavicencio (Sector 1) - USD 1,160 Popayán-Santander de Quilichao - USD 890 Chile, third runways in Maipo, pedestrian connections in Rios and closed television circuits in Araucanía and Bosque. USD 293 million 6

7 Telecommunication Infrastructure Perspectives 26,022 km in operation, the largest open information transportation network in South America. Presence in Colombia, Ecuador, Peru, Chile, Argentina and Brazil and connections with Venezuela and Bolivia. 2.5 Tbps, generated USD 93M in revenues during 2013, with an annual growth rate of 8% in the last 7 years. 400 operators serviced, in local as well as national, regional and international needs. 150 Gbps in IP capacity in the countries in the region, served from local nodes and international connections via agreements with the most important agents in the industry. Service availability of 2013 was 94.93%. Consolidate operations in Chile, Argentina and Brazil and keep the position reached in Colombia, Ecuador y Peru. Deepen into the leadership achieved in the distribution of Internet traffic in the region. Increase regional traffic and fidelity of operators on INTERNEXA's network. 7

8 Intelligent Management of Real-time Systems REAL TIME SYSTEMS Planning, coordination and supervision of the SIN operation in Colombia. 24,500 km in lines, 35,200 MVA of transformation, 14,600 MW in installed capacity. Planning and operation of the mobility control center of affiliates in Medellin, Colombia. Support and maintenance service in control centers in Colombia and Peru. Projects under construction: Control Center for toll road information Antioquia, Colombian. Perspectives Expand services to other sectors. Strengthen synergistic services within Grupo ISA. MARKET MANAGEMENT Management of comercial exchange programs of the wholesale energy market (Colombia). Payment, management of accounts and billing (COP 7.2 trillion) 49.5% of property in DERIVEX negotiations system and registering of operations of financial energy products in Colombia. 7.18% of property in CRCC Central risk agency of the counterparty compensation service as central operations counterparty Colombia, mobility control centers in other cities, asset management system for ISA, and Natural gas market promoter. Chile, monitoring and maneuvering center for InterChile. 8

9 Shareholders Structure As of June 2014 SHARES % STATE INVESTORS 682,078, THE COLOMBIAN STATE 569,472, EMPRESAS PÚBLICAS DE MEDELLÍN 112,605, COMPANIES WITH PUBLIC/PRIVATE CAPITAL 77,373, ECOPETROL 58,925, EMPRESA DE ENERGÍA DE BOGOTA 18,448, PRIVATE INVESTORS 348,226, INSTITUTIONAL INVESTORS 207,425, INDIVIDUALS 67,884, LEGAL PERSONS 12,988, FOREIGN INVESTORS 58,872, ISA ADR PROGRAM 1,055, SUBSCRIBED AND PAID CAPITAL INTO 1,107,677, CIRCULATION Free float 9

10 Dividend Policy ISA's dividend policy Every shareholder is entitled to receive as dividend a part of the earnings of the corporation proportional to the number of shares held by him. For matters of earnings distribution as provided by articles 155 and 454 of the Commercial Code,, distributable income shall be computed through the following procedure: (a) From the Corporation's income taken from actual and accurate financial statements of each fiscal period, subtract the amounts corresponding to: (i) losses from previous periods (if any), (ii) legal reserve, (iii) tax appropriations; (b) To the balance so calculated apply the percentages determined by the aforementioned articles of the Commercial Code. This amount is the minimum amount to be distributed as dividend every period; (c) Balances remaining after distribution of minimum dividends shall be at the disposal of the Shareholders' Meeting for statutory and discretionary reserves or to be distributed as dividend in addition to the minimum dividend established by letter b) above. Dividend (COP) Dividend Payment Date July 21, 2014 COP 196 September 22, 2014 COP 18 10

11 ISA s Board of Directors Principal members Ministry of Mines and Energy Minister Ministry of Finance and Public Credit General Vice-Minister Carlos Mario Giraldo Moreno* EPM-General Manager Santiago Montenegro Trujillo* Alejandro Linares Cantillo Bernardo Vargas Gibsone* Alternative members Ministry of Mines and Energy, Vice - Minister of Energy Ministry of Finance and Public Credit Director General of Public Credit and National Treasury Henry Medina González* Jesús Aristizábal Guevara* Camilo Zea Gómez* Tomás González Estrada Carlos Felipe Londoño Álvarez* *Independent members President: Mr. Santiago Montenegro Trujillo Secretary: Sonia Margarita Abuchar Alemán, ISA's Secretary General. 11

12 Corporate Strategy ISA 2020 VISION By 2020, ISA will have tripled its profits, by capturing the most profitable growth opportunities in its businesses existing in Latin America, the boost of operational efficiency and the optimization of its business portfolio. 1 Capturing growth opportunities with higher profitability 2 Improving profitability of current and core businesses 3 Dynamic adjustment of business and geography portfolio 12

13 AGENDA About ISA Consolidated Financial Results 13

14 EBITDA AOM Revenues Consolidated Income Statement 1,868 2,322 2,287 1, S13 1S14 COLOMBIA BRAZIL PERU CHILE OTHER S13 1S14 COLOMBIA BRAZIL PERU CHILE OTHER 1,343 1,609 1,543 1, USD million. Exchange rate: COP 1, S13 1S14 COLOMBIA BRAZIL PERU CHILE OTHER 14

15 Margins Net Income Consolidated Income Statement S13 1S14 80% 60% 40% 20% 0% S13 1S14 Operating EBITDA Net BMI Net BMI: Before Minority Interest USD million. Exchange rate: COP 1,

16 Assets Consolidated Balance Sheet Assets by Business June , % 7,479 Telecomm unications 2,6% SMRTS 1,1% 7,657 7,957 7,530 8,089 Roads 31,9% Energy 64,4% 2,081 1,923 2,180 1,969 2, % 2,073 3,172 3,941 3,867 3,192 3, % 3, Q14 Liabilities Minority interest Equity Assets by Country June 2014 OTHERS PERU 0,5% 11,4% Assets in June 2014 totaled USD 13,527 million, a -0.5% decrease compared to USD 13,269 in 2013 USD million. Exchange rate: COP 1, BRAZIL 25,9% COLOMBI A 30,1% CHILE 32,1% 16

17 Consolidated Financial Debt In millions 2013 June 2014 Var % June 2014 USD CHILE 4,217,278 3,932, ,091 COLOMBIA 1,788,574 1,763, BRAZIL 1,169,464 1,217, PERU 1,464,947 1,499, BOLIVIA 51,134 45, ARGENTINA 7,071 4, TOTAL 8,698,468 8,462, ,499 4,25 2,66 3,62 2,53 USD million. Exchange rate: COP 1, ,88 3,86 2,90 3,12 3,6 3,4 4,20 4,29 3,26 3, Q13 2Q13 3Q Q14 2Q14 Net Debt / EBITDA EBITDA / Interest Credit Risk Ratings Moody s S&P Fitch Fitch (local market Bond): Baa2 Stable outlook BBB Stable outlook BBB Stable outlook AAA Stable outlook (August 2014) (August 2014) (May 2014) (May 2014) Breakdown by Rate Breakdown by Source Breakdown by Currency IPCA 0,6% Fija 16,6% Other 0,8% Otras 0,1% COP 19,7% UF 39,7% DTF Libor 4,6% 4,7% CDI 8,9% IPC TAB TJLP 15,0% 6,6% 3,2% Banks 26,1% Capital Market 73,1% UF + CLP 46,3% BRL 13,5% USD 20,5% 17

18 Investment Plan Projects awarded up to date Investment in existing assets and awarded projects for the next 7 years is estimated at COP 7,593 billion, or approximately USD 3,817 million. 1,625 1,904 2,141 COLOMBIA PERU BRAZIL CHILE OTHERS Projections July (in COP billions) Investment by country COP % Colombia 1, Peru 1, Brazil 1, Chile 1, Others 41 1 Investment by business COP % Energy 6, Toll Roads Telecommunications SMRTS

19 Investor Relations Website /ISAAvanza Interconexión Eléctrica ISA /CanalISAAvanza 19

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21 Renewal of CTEEP s concession 059/2001 Non-depreciating assets Pending May 2000 Compensation R$ 2,891 million 50% January % monthly installments, indexed to the IPCA % to July 2015 New Contract: 30 year period, beginning January Revenues R$ 515 million for administration, operation and maintenance. Pending: revenues associated with improvement s investments. Consolidated Figures Colombian GAAP COP billion % Net revenues 857 1,838-53% EBITDA 253 1,434-82% EBITDA margin 29.5% 78.0% -62pp Net Income % Net Margin 3.2% 49.2% -94pp 21

22 CTEEP s challenges Regulatory challenges Indemnification of the Old System SE, including amount, form of payment and interest rate. Indemnification of Capex Improvements Melhorias, executed between 2000 and Remuneration of future Capex Improvements. Capital Structure Deleverage adjustment to the new operational reality. Preference for long-term financial leverage (BNDES and Infrastructure Bonds ) 25.00% 51.00% Operational Efficiency and Growth Cost optimization Capex efficiency Superior profitability in auctions and acquisitions 51.00% 100% 100% 100% 50.10% 22