COP EBITDA

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1 RESULTS Medellín, Colombia, February 26, 2018 ISA S.A. E.S.P. (BVC: ISA; OTC: IESFY) ( ISA or the Company ), Colombian company engaged in the businesses of Energy transmissions, road concessions, Information and Communications Technology, and Real-Time Systems Management, announced its fourth quarter 2017 financial results. Figures are audited and expressed in millions of Colombian pesos (COP). The consolidation process implies the inclusion of 100% of the companies where ISA has control through the global integration method, pursuant to the application of the Colombian Financial Reporting and Accounting Standards - NCIF- adopted by Law 1314 of 2009, regulatory decree 2784 of 2012 and all former amendments and resolution 743 of 2013 and its former amendments, issued by Colombia's National General Accounting Office. ECONOMIC AND FINANCIAL RESULTS CONSOLIDATED FIGURES IN MILLIONS COP Operating Revenues Fourth Quarter 2017 COP EBITDA Margin 57,4% Margin excluding Construction 64,5% COP Net Income Margin 16,1% Margin excluding Construction 17,4% COP Operating Revenues Full-Year 2017 COP EBITDA Margin 63,7% Margin excluding Construction 71,3% COP Net Income Margin 20,7% Margin excluding Construction 22,9%

2 2 / 25 ECONOMIC AND FINANCIAL RESULTS Considerations The last quarter of 2017 shows the entry into operation for the projects of Mantaro-Montalvo, Cotaruse and Termochilca expansions in Peru and the Nuevas Cardones Substation and Cardones - Maitencillo lines expansion in Chile. In addition, it includes the capital contributions made by ISA in ATP Tower Holdings LLC for USD 147 million. Other important consideration for this quarter was the accounting recognition change for the contributions 1 to the FAER, PRONE and FOES funds. Such contributions are collected in the energy tariff and are paid for by users in Colombia. These contributions were recognized in revenues and costs, but as of this quarter they will be only reflected in the Balance Sheet, which implies that they have no impact on the results 2. Those contributions were excluded from revenues and costs in 2016 for comparative purposes. For the full year and for analytical purposes, it should be considered that in September 2016, ISA CTEEP adjusted the Basic Network of the Existing Service (RBSE) value 3 to BRL million (2012 figures), which implied a COP 1,3 trillion income for ISA. Likewise, in June 2017, this value was adjusted to BRL million (2012 figures), from which ISA collected income for COP million in During 2017, five installments were collected from RBSE for COP million, starting in August, as planned. Additionally, in the third quarter of 2017, ISA Capital do Brasil obtained income for COP million resulting from reversal of the liability generated by the ISA CTEEP purchase agreement, taking advantage of the tax amnesty program in Brazil (PERT 4 ), which permitted the conciliation of fiscal losses from previous periods with the taxes generated from this transaction. Likewise, ISA CTEEP also adopted PERT to optimize the tax obligations payment, thereby obtaining higher income of COP million, from which ISA collected COP million in the consolidated. Results For the full year ended December 2017, ISA's net income reached COP million. Excluding the RBSE value impact on ISA CTEEP and the adherence to PERT, the accumulated net income was COP million, an increase of 44,5% or COP million, compared with the same period of the previous year. This variation was mainly explained by the update of the financial performance of the RBSE, new revenues from the entry into operation of energy projects in Peru, Colombia, Brazil and Chile, income for its participation in TAESA and lower financial expenses in Colombia and Chile. 1 FAER: Fondo de Apoyo Financiero para Energización de Zonas Rurales Interconectadas (Financial Support Fund for Energizing Rural Zones), PRONE: Programa de Normalización de Redes Eléctricas (Standardization Plan for Electric Grids), FOES: Fondo de Energía Social (Social Energy Fund) 2 As a result of concept No , issued by the Colombia's National General Accounting Office on January04, RBSE: Basic Network of the Existing System 4 PERT - Special Tax Regulation Program -, approved by the Brazilian government through Provisional Measure No. 783

3 3 / 25 In the fourth quarter of 2017, net income reached COP million, a 57% increase compared with the same period of the last year. This was mainly due to lower costs and operating expenses in Colombia, added to the events that explain the entire year. Dec 17 Dec.16 Change Change EXCHANGE RATES close close % average average % COP/ DOLLAR USD 2.984, ,71-0,6% 2.951, ,42-3,3% COP / REAL 902,06 920,72-2,0% 924,56 876,58 5,5% COP/ CLP 4,85 4,48 8,3% 4,55 4,51 0,7% REAL / DOLLAR USD 3,31 3,26 1,5% 3,19 3,48-8,4% CLP / USD 614,75 669,47-8,2% 649,18 676,67-4,1% The results also include the exchange rate effect of the financial information from foreign subsidiaries and affiliates, which generated variations throughout various line items of the financial statements. The aforementioned was mainly due to the revaluation of the COP versus the USD, as well as the devaluation of the COP against the BRL and the CPL. It is important to note that as a benefit of the Company s natural hedging strategy, the exchange rate effect represented an expensed of 5% % of the total result. CONSOLIDATED INCOME STATEMENT Considering that the annual results include non-recurring events (RBSE and PERT), which significantly affected income for both 2017 and 2016, in this section we will center on discussing the variations connected to the business operation. Additionally, and as a result of the change in 2017 related to the accounting treatment of the contributions to FAER, PRONE and FOES, these contributions were removed from income and costs in 2016, for comparison purposes 5. Operating revenues During the fourth quarter of 2017, operating revenues reached COP million, an increase of 7,6% compared with 4Q16. This difference is explained by the lower construction in Peru and Chile (COP million), added to the behavior of the Brazilian Real and the Colombian Peso 6, which negatively impacted revenues by COP million. 5 COP million for 4Q16 and COP million for full year In 2017, COP million was excluded in October and November and COP million for the first 11 months. 6 Devaluation of the type of exchange average COP/BRL 1,4% in 4Q16 and revaluation of 0,2% in 4Q17

4 4 / 25 OPERATING REVENUES MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Energy Transmission , , Road concessions , ,2 387 Telecommunications , ,6 117 GSTR , ,0 46 TOTAL , , By country, the operating revenues composition for the fourth quarter of 2017 was: Brazil 30,5%, Colombia 25,8%, Peru 22,0% and 19,0% in Chile. OPERATING REVENUES MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Colombia , ,9 570 Chile , ,9 399 Brazil , ,6 753 Peru , ,0 473 Others , ,9 38 TOTAL , , Construction Revenues For the October - December 2017 period, construction revenues were COP million, a decrease of 38.5% compared with 4Q16. This variation was mainly explained by a higher energy transmission construction activity during 2016 in Peru and the third-lane road project for Ruta del Maipo in Chile. In the accumulated figure, construction revenues decreased by 40,4% compared to full year 2016, for the same reasons as in the quarter. Notwithstanding the foregoing, it is necessary to highlight that in Brazil, there was higher revenue due to reinforcements and from the start of works at the Itaúnas, Tibagi, Itaquerê, Itapura e Aguapeí projects for COP million. Operating Revenues During 4Q17, operating revenues reached COP million, a decrease of 0,6% compared with the same period of the previous year. This variation was the result of lower revenues in Brazil (COP million), due to the exchange rate effect of BRL to COP. Excluding this variation, revenues for 4Q17 increased 3,9%. OPERATING REVENUES (excluding construction) MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change $ % 2017 USD Energy Transmission , , Road concessions , ,4 369 Telecommunications , ,6 117 GSTR , ,0 46 TOTAL , , GSTR: Real-Time Systems Management, for its acronym in Spanish.

5 5 / 25 The variation in the quarterly revenues compared with revenues for 4Q16 considers: In Energy Transmission a decrease of 0,3%, due mainly to the conversion effect of the Brazilian Real to the Colombian Peso. Excluding the exchange rate impact in Brazil, revenues increased 5,9% due to higher revenues from ISA CTEEP and its affiliates (COP million) because of the entry into operation of improvements and reinforcement and the higher financial yields of the Brazilin concessions, plus new projects in operation in Peru (COP million), such as Mantaro-Montalvo, Cotaruse and Termochilca expansions and Nueva Cardones substation expansion and the Cardones- Maitencillo energy transmission line in Chile. In Road Concessions a decrease of 4,6% due to traffic increase, which accelerates the reduction of accounts payable to the state and consequently generates a lower financial return. This was partially offset by higher income related to higher maintenance services. In Information and Telecommunications an increase of 1,6%, due to higher sales to corporate clients in Peru and Argentina. And in Real-Time Systems Management an increase of 20.1% due to higher operations traded in the market. Unregulated revenues also increased due to the implementation and operation project for the public transportation system collection, management, and control in Medellín. Finally, for the 2017 accumulated period, operating revenues reached COP million, a 17,6% increase compared with the same period of This variation was mainly explained by higher revenues at ISA CTEEP due to financial returns of the RBSE account receivable for COP million corresponding to 12 months vs. 3 months of returns in 2016 for an amount of COP million, which partially offset by COP million in lower revenues due to inflation adjustment of the July 2017/June 2018 tariff cycle, as a result of lower 2017 IPCA/IGPM compared with 2016 (1.43% vs. 4.96%). Additionally, the entry into operation of new projects for COP million. In the annual figure, Colombia and Chile also presented lower revenues due to the same reasons as in the quarter, added to the lower revenue of COP million due to Linear Systems (Captive) by not participating in the insurance underwriting program. The lower income from Captive does not impact EBITDA since it has the same cost value. OPERATING REVENUES (excluding construction) MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Colombia , ,9 570 Chile , ,9 381 Brazil , ,5 683 Peru , ,4 298 Others , ,9 38 TOTAL , , By country, operating revenues for the fourth quarter was as follows: Brazil 30,8%, Colombia 29,4%, Chile 20,2% and 16,5% in Peru.

6 6 / 25 Operating costs and expenses Operating costs and expenses 8, for the October-December 2017 period amounted to COP million, a 11,3% decrease compared with the same period in OPERATING COSTS AND EXPENSES MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Energy Transmission , ,9 783 Road concessions , ,4 124 Telecommunications , ,9 109 GSTR , ,9 41 TOTAL , , Main items associated to operating costs and expenses are described below. OPERATING COSTS AND EXPENSES MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Sales and operation , ,9 847 Depreciations , ,8 96 Amortizations , ,4 95 Provisions , ,7 19 TOTAL , , By country, operating costs and expenses during the fourth quarter were: 27,9% in Brazil, 27,5% in Colombia, 25,1% in Peru, and 15,9% in Chile. OPERATING COSTS AND EXPENSES MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Colombia , ,5 313 Chile , ,2 138 Brazil , ,4 271 Peru , ,3 313 Others , ,0 21 TOTAL , , Construction Costs and Expenses Construction costs reached COP million in 4Q17, which represented a 39,8% decrease compared with 4Q16. This variation was mainly due to a lower level of construction in Peru and Chile, explained in the revenue discussion section. Excluding construction, the administrative and operating costs for the fourth quarter period reached COP million, 1,9% more than 4Q16. 8 Includes sales and operating costs, management costs and construction costs.

7 7 / 25 Operating Costs and Expenses OPERATING COSTS AND EXPENSES (excluding construction) MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Energy Transmission , , Road concessions , , Telecommunications , , GSTR , ,87 41 TOTAL , , Per each business level and excluding construction, we highlight the following variations versus 4Q16: Energy Transmission a reduction of 0,9%. This variation includes lower maintenance expenses and industry and commerce tax in Colombia, lower costs in the Captive Insurance Company and higher costs and expenses in Brazil as a result of staff expenses, insurances, and brand launch. The provision for the Electricaribe portfolio in 2016 for COP million also explains this difference. Road Concessions an increase of 14,0% due to higher preservation and maintenance costs in Ruta del Maule. These costs have a corresponding income as they are recognized by the MOP, since it exceeded the original term. Information and Telecommunications a decrease of 2,8% due to the recognition in 2016 of the portfolio provision and the Transnexa investment in Colombia, added to the portfolio provision in Brazil. Real-Time Systems Management an increase of 21,4% due to investment in licenses and the renewal of insurance policies, items covered in regulated revenues. OPERATING COSTS AND EXPENSES (excluding construction) MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Colombia , , Chile , , Brazil , , Peru , , Others , ,97 21 TOTAL , , The composition of operating costs and expenses (excluding construction) by country was: 35,0% in Colombia, 26,2% in Brazil, 17,6% in Chile and 16,5% in Peru. Finally, the accumulated figure for operating costs and expenses was COP million, a slight decrease compared with the previous year, as a result of a lower wealth tax in Colombia for COP million, plus the events explained for the quarter.

8 8 / 25 EBITDA and EBITDA margin EBITDA for the fourth quarter of 2017 decreased by 5% (COP million) compared with the same period of the previous year, given the exchange effect of Brazilian Real into Colombian Pesos 9, decreasing EBITDA in 6,8%. Excluding this effect, EBITDA for 4Q17 increased 1,8%, due to higher financial returns from the concessions in Brazil, lower costs and expenses in Colombia and projects entered operation in The EBITDA margin was 57,4% vs. 55,8% in 4Q16. Excluding construction, the EBITDA margin was 64,5% in 4Q17 vs. 67,4% for the same period of the previous year. At the accumulative figure, EBITDA increased by 24,9% compared with January-December 2016, from COP million to COP million. This increase was explained by the same reasons stated for the quarter. Accumulated EBITDA margin reached 62,1% vs. 52,5% for the same period of Excluding the construction effect, EBITDA margin was 70,0% compared to 65,5% for the previous year. Other net revenues/expenses Other net revenues/expenses decreased by COP million in 4Q17 compared with 4Q16, moving from a net revenue of COP million to a loss of COP million. This variation includes the reclassification of expenses related to the PERT implementation that ISA Capital do Brazil and ISA CTEEP made in 3Q17, which were initially presented in the participation method, added to an expense of COP million of the RBSE assets written off by ISA CTEEP. These reasons also explain the decrease of 126,8% for the full year. Equity method The equity method, which includes income from the subsidiaries and affiliates where ISA has joint control and significant influence, increased by COP million in 4Q17 compared with the same period previous year. This variation includes higher income in TAESA and the reclassification to other expenses for the expenses linked to the PERT implementation as mentioned in the prior paragraph. The full year figure declined by 40.4% compared with the same period of 2016, due to the reasons stated for the quarter as well as to lower income associated with the inflation adjustment for the 2017/2018 tariff cycle at IEMadeira and IEGaranhuns for July 2017/June 2018, as consequence of the lower IPCA/IGPM for 2017 versus 2016 (1.43% vs/ 4.96%) See explanation about exchange rate effect in revenues (page 3) 10 Revenues adjustment is executed annually (July 2017/June 2018 tariff cycle) and it is the result of bringing to present value future flows at a rate equal to inflation. When the 2017 ACPI decreases compared with 2016 (1.43% Vs. 4.96%), revenues decrease. In addition, IEGARANHUNS revenues were adjusted by the tariff revision each 5 years.

9 9 / 25 Income from operating activities As a result of the above, profit from operating activities reached COP million for 4Q17, or 7,6% lower compared with the same period of last year. The operating margin remained stable at 46.7% for both quarters. Excluding construction, the operating margin for the period reached 52,3% vs. 56,3% in 4Q16, a variation that is linked to the lower IPCA/IGPM in the annual revenue adjustment for the 2017/2018 cycle at IEMadeira and IEGaranhus as well as higher costs and expenses in Brazil, related to expenses for personnel, insurance and brand launchings. Accumulated operating activities as of December 2017 increased by 26,2% compared with the same period in The operating margin was 54.8%, 9% higher that the figure for Excluding construction, the operating margin for the period was 61.6% vs. 57.0%, compared with 2016 and Financial revenues/expenses In the fourth quarter of 2017, net financial expenses reached COP million, representing a 6,5% increase compared with 4Q16. This variation was due to financial expenses linked to the issuance of bonds and the acquisition of loans in Colombia and Brazil, for the acquisition of 75% of IENNE, the 14.88% of TAESA, the contribution of USD 147 million towards ATP and the financing of projects under execution in Brazil, Colombia, Chile and Peru. INCOME (EXPENSE) FINANCIAL NET MILLIONS 4Q17 4Q16 Change Change 4Q17 Change Change 2017 Net financial , , Net exchange difference , ,13-24 TOTAL , , The full year net financial expenses at December 2017 were COP million, a 5,5% decrease compared with the same period in This variation was explained by the lower inflation in the region. Income tax Income tax expense for 4Q17 reached COP million, a reduction of COP 64,853 million (30.3%) compared with 4Q16. This variation was due to lower results before taxes, added to the conversion effect. In the annual figure, the tax increased by 52.0% compared with the same period of 2016, due to higher financial returns at ISA CTEEP and affiliate concessions. Income before non-controlling and minority interest As a result of the, consolidated income before non-controlling interest for 4Q17 reached COP million, an increase of 3.7% compared with the same period of the previous year. For 2017, income before non-controlling interest amounted to COP million, 41.1% higher compared with 2016.

10 10 / 25 For the quarter, the non-controlling interest (minority interest) reached COP million, a 50,9% decrease versus same period of the previous year. This variation was the result of improved results in Brazil, which also explains the increase of 36.1% in the annual figure compared with Net Income Net income for the October-December 2017 period reached COP million, a 57,0% increase compared with the figure reported during the same period of As previously discussed, this variation was mainly due to higher income at ISA CTEEP in Brazil; the inclusion of TAESA's income participation; the incorporation of the new projects which entered operation in Colombia, Chile, and Peru; plus, lower operating costs and expenses in Colombia. The net margin for 3Q17 was 16.1% vs. 9.5% for 4Q16, excluding construction; this indicator rose to 17.4% and 10.6%, respectively, in 4Q17. In the annual figure, net income excluding RBSE and PERT, was COP million, 44.5% higher than the previous year. In addition to the events mentioned for the quarter, the variation was due to the lower financial expense in Colombia and Chile. The net margin as of December 2017 was 16.7%, higher than same period in 2016 in 4.5%. Excluding construction, this margin was 18.5% for 2017 and 14.6% for Indicators Excluding RBSE y PERT ROE 12,1% 9,1% ROA 3,0% 2,4% CONSOLIDATED BALANCE SHEET Assets Assets for ISA and its companies reached COP million, a 12,7% increase compared with December The assets variation was explained by: a) the RBSE adjustment and financial update of the accounts receivable in Brazil; b) the 14,88% share capital acquisition of TAESA; c) the 26,5% capitalization of ATP Tower Holdings LLC; d) the 75% consolidation of IENNE assets; and e) the construction projects in Colombia, Brazil, Peru, and Chile. The composition of assets by country was: 39,7% in Brazil, 25,5% in Chile, 20,0% in Colombia and 14,4% in Peru.

11 11 / 25 Liabilities The consolidated liability amounted to COP million, an increase of 15.7% compared with December This variation was due to: a) debt contracting and the issuance of bonds to finance investments, the execution of projects, reinforcements, and improvements; b) the IENNE financial obligations consolidation, and c) the recognition of the deferred tax linked to the adjustment and financial update of the RBSE account receivable in Brazil. The distribution of liabilities by country was 29,2% in Chile, 27,6% in Brazil, 26,8% in Colombia, and 16,1% in Peru. Non-controlling interest (Minority interest) The non-controlling interest reached COP million, representing an increase of 5,9% compared with December 2016, and was the result of higher income in Brazil. Equity attributable to holders of controlling interest Equity was COP million, compared with COP million at December 2016, and represented a 11.1% increase that resulted from the net effect of higher income in 2017 and the profit distribution approved by ISA s General Shareholders' Meeting. CONSOLIDATED CASH FLOW As of December 2017, cash and cash equivalents reached COP million, an increase of COP million, compared with December During 2017, cash allocated for operations reached COP million, including the collection of the five RBSE installments for COP million. Financing activities generated COP million, as the net result of new debt for COP million and the debt and bonds amortization for COP million. Investment activities totaled COP million, with resources primarily allocated towards the acquisition of a 14,9% stake in TAESA, 75% IENNE, contributions to ATP Tower Holdings LLC for COP million and the current construction projects in Chile, Colombia, Peru and Brazil. DEBT As of December 31, 2017, the consolidated financial debt reached COP million, a 24,8% increase compared with December Changes include the exchange currency exchange effect, which for the period increased the balance by COP million given the devaluation of the Colombian Peso versus the Chilean Peso (closing rate).

12 12 / 25 CONSOLIDATED DEBT MILLIONS Company Change COP Change % 2017 USD CHILE , Ruta del Maipo Road concessions ,4 942 Ruta del Maule Road concessions ,8 35 Ruta de la Araucanía Road concessions ,4 218 Ruta del Bosque Road concessions ,9 180 Ruta de los Rios Road concessions ,1 81 Internexa en Chile Telecommunications ,0 11 Interchile Energy transmission ,8 458 COLOMBIA , ISA Energy transmission , Transelca Energy transmission ,7 119 Internexa Telecommunications ,9 41 BRASIL ,7 901 ISA Capital Energy transmission ,1 191 CTEEP Energy transmission ,7 477 IEMG Energy transmission ,5 8 IEPINHEIROS Energy transmission ,0 21 Serra Do Japi Energy transmission ,4 17 IENNE Energy transmission ISA Investimentos Energy transmission Internexa Brazil Telecommunications ,8 28 PERÚ , ISA Peru Energy transmission ,6 29 REP Energy transmission ,0 240 Transmantaro Energy transmission ,0 796 Internexa en Peru Telecommunications ,3 5 BOLIVIA ,3 7 ISA Bolivia Energy transmission ,3 7 ARGENTINA ,0 0 Transamerican Telecom Telecommunications ,0 - TOTAL , TOTAL USD ,8 27,1% of the debt is in Unidades de Fomento -UF- (Chile), 29,6% in U.S. dollars, 27,3% in COP and 16% in Brazilian Real. Approximately 59,2% of the debt is in the Capital Markets and 40,7% is in bank loans. 90,88% of the debt is for a tenor higher than one year and the remaining 9,12% is for a short-term tenor. CAPEX and INVESTMENTS Investments for ISA and its subsidiaries for the fourth quarter of 2017 totaled COP million, which was explained by the following direct investments and contributions to equity: In Colombia, ISA invested COP million in projects under construction, among these are: Ituango and Caracolí substations and the Chinú-Montería-Urabá and Cerromatoso-Chinú-Copey

13 13 / 25 lines. In addition, a contribution was made to ATP Tower Holdings LLC for COP million, increasing ISA's stake in this company from 16% to 26.5%. In telecommunications, Internexa Colombia made contributions to Internexa Participações for operation infrastructure investments in Brazil and made investments in assets for client connection projects and the current infrastructure capacity expansion. In Chile, during the fourth quarter, investments for COP million were mainly made in Interchile in energy transmission projects under execution and road concessions projects for antivandalism mesh, pedestrian overpasses, as well as security regulations engineering studies for the new projects in Ruta del Maule. Installation of LED lighting in Maule, Rios and Araucanía, as the implementation of a collection system in Nueva Angostura in Maipo, the CCTV works in Bosque and Araucanía, as well as the toll expansion works for the latter. Investments in Peru for COP million in projects entering operation (see table below), as well as in construction projects such as 18 and 19 expansions in REP and the Friaspata-Mollepata lines, Carapongo substation and La Niña Substation reactors bank. In Brazil, investments focused on reinforcements for the existing network in Energy Transmission. CAPEX for the full year 2017 reached COP million, the highest in the Company s history. The difference between the estimated investment and the actual one was due to the rescheduling of expenses in projects under construction, which will be executed during CAPEX MILLIONS 1Q17 2Q17 3Q17 4Q % 2017(E) % Brazil , ,8 Colombia , ,7 Chile , ,5 Peru , ,9 Others , ,1 TOTAL , ,0 Projects and companies which entered operation Concessionaire Project Kms or Units Intervened Date Annual revenues (USD millions) Interchile Ampliación barra nueva Cardones 01/12/2017 0,4 Interchile Cardones - Maitecillo 2x500 kv - Tramo /12/ ,7 Transmantaro Subestación Orcotuna 27/11/2017 1,8 Transmantaro Línea de transmisión Mantaro-Montalvo 500 kv /11/ ,5 Transmantaro Ampliación: cotaruse 05/10/2017 0,9 Transmantaro Ampliación Termochilca 2 05/12/2017 0,9

14 14 / 25 ISA INDIVIDUAL REPORT Income Statement In 4Q17, the net income was COP million, a 56.5% increase compared with the same period of the previous year. The net income variation in the quarter was explained by: Higher revenues in energy transmission services for COP million in UPMES 11. The higher income in the joint venture contract due to lower expenses for maintenance and taxes. Lower depreciation expense of assets due to the change service lives in The increase in the equity method of 92.0%, given the higher income at ISA CTEEP linked to the RBSE financial update, to lower judicial actions and the reversal of civil proceedings provision, to the incorporation of TAESA 14.88% income and lower financial expenses of ISA Inversiones Maule. The lower financial expense associated with the behavior of macroeconomic variables to which the debt is indexed. For 2017, net income was COP million, a 32.63% decrease compared with the same period of the last year. This variation was mainly explained by a 40.83% decrease in the equity method directly linked to the RBSE value adjustment in Excluding the RBSE value impact at ISA CTEEP and PERT adoption, the net income totaled COP million representing a 44.2% increase, compared with the same period of the previous year. Statement of Financial Position At the end of December 2017, ISA assets amounted COP million, 20.9% increase compared with December This increase was mainly explained by the acquisition of 14.88% of TAESA through ISA Investimentos for COP million and contributions to ATP (COP million), in addition to the increase in the equity method and projects under construction, among which we have Ituango and Caracolí Substation. Liabilities increased COP million due to the placement of bonds in the local market for COP 1.2 trillion and disbursements received from Banco BBVA for a total of COP million and from Banco Davivienda for a total of COP million to finance investments. Equity amounted to COP million, 11.1% more than in 2016, due to the annual results and was offset by the dividend distribution. 11 ISA receives revenues from UPMES and , which have not been transferred to ISA INTERCOLOMBIA, due to the extensions of the term on the date of entry into service.

15 15 / 25 Indicators Solvency -Assets / liabilities 2,91 3,49 Liquidity - Current assets / current liabilities 1,44 1,37 For more details, see the notes to the financial statements in: HIGHLIGHTS ISA CTEEP, affiliate of ISA in Brazil, concluded the total acquisition of the stake that ISOLUX and CYMI had in Interligação Elétrica Norte e Nordeste S.A. (IENNE). Therefore, this ISA's affiliate holds 100% of the company ( ordinary shares). This transaction will represent BRL40.9 million annual revenues for ISA CTEEP. IENNE is a public service concessionaire for the transmission of energy, created in ANEEL call for bids on November 7, It initiated its commercial operation in 2011 with the objective of integrating the National Interconnected System (SIN) and increasing the energy interconnection capacity between the North and the Northeast regions of Brazil. The concessionaire is comprised by two 500 kv transmission lines which together represent 720 kilometers. AméricaEconomía, one of the most influential journals in the fields of business, economy and finance in Latin America, awarded the "Multi-Latin Company of the Year" award to ISA at the VII Multi-Latin Companies Forum in Lima, Peru. In accordance with the Multi-Latin Advance Ranking created by the Intelligence department of AméricaEconomía, this year ISA moved up to the 14 th place (from 18 th ) due to, among other factors, its 41.6% acquisition of the control block of TAES, a business that represents great strategic importance for the holding. This acquisition confirms the Company as one of the most important players of the energy sector in Brazil. AméricaEconomía also recognized that, for the third consecutive year, ISA was included in the Dow Jones Sustainability Index (DJSI), which confirms it as one of listed companies with the best sustainability practices worldwide. ISA was included in the new Dow Jones Sustainability MILA Pacific Alliance index. This index considers the companies with the highest sustainability performance scores from RobecoSAM in the Pacific Alliance region, including countries such as Chile, Mexico, Colombia and Peru. In Peru, ISA was awarde a new energy transmission project, which will reinforce the system from the central zone to the Peruvian coast. It will have a total reference investment of USD million and it will represent annual revenues for USD million. These lines cover 600 kilometers at 500 kv and 250 kilometers at 220 kv, in addition to the construction of three new substations and the expansion of six existing substations. ISA increased its stake in ATP Tower Holdings, LLC (ATP) for USD 80 million. With this increase, ISA's stake will be 24%. From the strategic point of view, aside from being aligned with ISA s group

16 16 / 25 infrastructure, this investment will diversify ISA's business portfolio to generate more revenues as of the existing infrastructure and leverage the capacity of INTERNEXA, ISA affiliate, with unique network elements for the provision of connectivity services, a higher capacity and bandwidth. For the third consecutive year, Alas20 initiative, awarded ISA. This time, the Company was the winner in two categories: Leading Company in Investors Relations, and "Empresa Alas20 Colombia 2017" (Alas20 Colombian Company 2017), the most important award in the category of companies. The relevance of both recognitions lies on their thematic axes, respectively: "the willingness and professionalism with key capital market agents (such as investors, financial analysts and regulators) and its leadership and excellence in the public disclosure of information regarding its investor relations practices, sustainable development, and corporate governance." INTERVIAL Chile presented the best international tender for the Concesión Vial Rutas del Loa project in Chile. This project is in the Antofagasta region covering the areas of Sierra Gorda and Calama and is about the improvement and broadening of the 25 Route double lane between Carmen Alto and the northern part of the city of Calama. The approximate official budget is USD 310 million. This project covers the improvement and addition of a parallel lane of 111 km for Ruta 25 and the construction of 25 new kilometers of road to connect rotes 24, 21, 23 and 25. ISA will receive annual revenues for USD 21.6 million. ISA placed bonds in the local market for COP million, corresponding to subseries A8, C14 and C30 from the twelfth Tranche of the Program on Issuance and Placement of Securities of ISA's Internal Public Debt. The total demand amount was COP million, and was 2.8 times oversubscribed (calculated on the amount offered). The resources obtained from this placement process will be used for financing company investments. Series Term Amount Offered Demand Amount Demand Placed Rate A8 8 years COP 409,840 COP 150, % E.A. C14 14 years COP 500,000 COP 215,100 COP 120,100 IPC % E.A. C30 30 years COP 503,200 COP 229,820 IPC % E.A. Figure in millions ISA's Board of Directors authorized the Global quota extension for the Program on Issuance and Placement of Securities of ISA's Internal Public Debt, by two trillion Colombian Pesos (COP ). With this extension, the overall program quota is six trillion five hundred thousand billion Colombian Pesos (COP ). According to Fitch Ratings, the expansion of this quota is neutral for the Company's credit profile. After adjusting Colombia's rating from BBB to BBB- with a stable outlook on December 11, 2017, Standard and Poor's rating agency adjusted ISA rating from BBB with a negative outlook to BBB- with a stable outlook. ATP, a company in which ISA has stake, announced the acquisition of Torres Unidas. With this transaction, ATP becomes one of the main towers operators in the Andean Region. This acquisition is strategic since Torres Unidas is a quality asset in the region, with solid market practices and great

17 17 / 25 affinity. In this manner, 1,644 sites would be added to the ATP portfolio, reaching 2,150 sites in Chile, Peru and Colombia. Moody's Investor Services maintained ISA's issuer rating on Baa2 with a stable outlook. In its report it highlights that ISA reflects the company's share structure and its links to the Colombian Government as the majority shareholder. For the third consecutive year the company was included in the yearbook that acknowledges companies with the best sustainability practices worldwide and ISA is exalted as a sector leader. ISA was classified within the category "Industrial mover 2018" in The Sustainability Yearbook indicator. "With this recognition, we continue ratifying not only our unwavering commitment to operate with the best practices, but it also constitutes a solid evidence that we are a safe and sustainable investment in the long term for our investors, and it opens new possibilities in the region," stated Bernardo Vargas Gibsone, ISA's Chief Executive Officer. About ISA ISA is recognized today as a Multi-Latin leader with broad technical experience, which directly and through its 40 subsidiaries and affiliates, currently executes important infrastructure projects contributing to the continent development and the progress of the people from Colombia, Brazil, Peru, Chile, Bolivia, Ecuador, Argentina, Panama, and Central America. To achieve this, ISA centers its activities on the business of Energy Transmission, Information and Telecommunication Technologies, Road Concessions, and Real-time systems management. For about 50 years, ISA has been characterized by the efficient and reliable benefit of its services, within a framework of respect to human rights and the protection of the environment, to foster competitiveness and regional sustainability, thanks to a highly qualified and committed human team which is comprised of about collaborators. This report may contain forward-looking statements regarding the performance of ISA and should be taken in good faith by institutions; said forward-looking statements reflect management s views and are based on currently-available information, which assumes risks and uncertainties, including economic conditions and those from other markets, as well as the exchange rate variations and other financial variables with respect to which ISA S.A. E.S.P. may not be held responsible, directly or indirectly, for financial operations that the public may conduct in reliance of the information herein presented. The figures expressed in millions of dollars in this report are only for informative purposes and do not reflect the accounting conversion standards usually used. As of December 31, 2017, the exchange rate used for the rendering of figures in dollars of the financial position statement was USD 1,00 = COP (closing rate) and the rate used for the income statement was USD 1,00 = COP 2.951,15 (cumulative average rate) (source: Banco de la República).

18 18 / 25 ISA Participation: COMPANY COUNTRY % ISA % ISA Total direct TRANSELCA S.A. E.S.P. Colombia 100,0% 100,0% RED DE ENERGIA DEL PERÚ -REP Peru 30,0% 60,0% CONSORCIO TRANSMANTARO S.A. Peru 60,0% 60,0% ISA PERÚ S.A. Peru 45,15% 100,0% ISA BOLIVIA S.A. TAESA - Transmissora Aliança de Energia Elétrica S.A. Bolivia Brazil 51,0% 100,0% 14,88% CTEEP COMPANHIA DE TRANSMISSÃO DE ENERGIA ELÉTRICA PAULISTA Brazil 0,0% 26,09% INTERLIGACAO ELETRICA NORTE E NORDESTE S.A. IENNE Brazil 0,0% 26,09% INTERLIGACAO ELETRICA DE MINAS GERAIS S.A. IEMG Brazil 0,0% 26,09% INTERLIGAÇÃO ELETRICA PINHEIROS S.A. - IEPINHEIROS Brazil 0,0% 26,09% INTERLIGAÇÃO ELETRICA SUL S.A. - IESUL Brazil 0,0% 13,0% INTERLIGAÇÃO ELETRICA DO MADEIRA S.A. - IEMADEIRA - Brazil 0,0% 13,3% INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI Brazil 0,0% 26,09% ENERGY INTERLIGAÇÃO ELÉTRICA GARANHUNS S.A. Brazil 0,0% 13,3% EVRECY Brazil 0,0% 26,09% Interligação Elétrica Paraguaçu S.A. Brazil 0,0% 13,0% Interligação Elétrica Aimorés S.A. Brazil 0,0% 13,0% Interligação Elétrica Itaúnas S.A. Brazil 0,0% 26,09% ELÉTRICAS REUNIDAS DO BRASIL (ERB1) Brazil 0,0% 13,0% IE TIBAGI S.A. Brazil 0,0% 26,09% IE ITAQUERÊ S.A. Brazil 0,0% 26,09% IE ITAPURA S.A. Brazil 0,0% 26,09% IE AGUAPEÍ S.A. Brazil 0,0% 26,09% INTERCONEXIÓN ELÉCTRICA COLOMBIA-PANAMA S.A. Panamá 50,0% 50,0% INTERCONEXIÓN ELÉCTRICA COLOMBIA-PANAMA S.A.S E.S.P. Colombia 1,2% 50,0% EMPRESA PROPIETARIA DE LA RED S.A. - EPR Centro América 11,1% 11,1% INTERCHILE S.A. Chile 82.35% 100,0% INTERCOLOMBIA S.A. E.S.P. Colombia 99,997% 100,0% ISA CAPITAL DO BRASIL S.A. Brazil 72,84% 72,84% ISA Investimentos e Participações S.A. Brazil 99,90% 100,0% INTERNEXA PARTICIPAÇÕES S.A. Brazil 69,60% ISA INVERSIONES CHILE Chile 99,9998% 100,0% FINANCIAL ISA INVERSIONES MAULE Chile 100,0% 100,0% ISA INVERSIONES TOLTEN Chile 99,999% Electricaribe S.A. E.S.P. Colombia 0,481% 0,481765% Financiera de Desarrollo Nacional S.A. Colombia 0,0007% 0,0007% CAMARA DE RIESGO CENTRAL DE CONTRAPARTE DE COLOMBIA S.A. Colombia 0,0% 8,0482% Linear Systems RE LTD Bermuda 100,0% 100,0% INTERNEXA Colombia 99,4% 99,4% INTERNEXA S.A. (PERÚ) Perú 0,0% 99,4% INTERNEXA CHILE S.A. Chile 0,0% 98,4% TELECOM INTERNEXA BRASIL OPERADORA DE TELECOMUNICAÇOES S.A. Brazil 0,0% 69,7% Transamerican Telecomunication S.A. (INTERNEXA ARGENTINA S.A.) Argentina 0,0% 99,42% ATP Tower Holdings LLC United States 24,0% 24,0% REDCA Central America 0,0% 11,0% TRANSNEXA S.A. E.M.A. Ecuador 0,0% 50,0% INFRASTRUCTURE PROYECTOS DE INFRAESTRUCTURA DEL PERU S.A.C. Peru 99,97% 100,0% XM S.A. E.S.P. Colombia 99,7% 99,7% GSTR DERIVEX S.A. Colombia 0,0% 50% Sistemas Inteligentes en Red S.A.S. Colombia 15% 99,8% INTERVIAL CHILE S.A. Chile 0,0% 99,9999% Ruta del Maipo Sociedad Concesionaria S.A. Chile 0,0% 99,9999% Ruta del Maule Sociedad Concesionaria S.A. Chile 0,0% 99,9999% ROADS Ruta del Bosque Sociedad Concesionaria S.A. Chile 0,0% 99,9999% Ruta de los Rios Sociedad Concesionaria S.A. Chile 0,0% 74,9996% Ruta de la Araucanía Sociedad Concesionaria S.A. Chile 0,0% 99,9999% INTERVIAL Colombia S.A Chile 100,00% 100,00%

19 19 / 25 ECONOMIC AND FINANCIAL RESULTS CONSOLIDATED ISA S.A. E.S.P. - CONSOLIDATED - STATEMENT OF COMPREHENSIVE INCOME (Audited) JANUARY - DECEMBER 2017 Figures expressed in millions of Colombian pesos 4Q17 4Q16 Change $ Change 4Q17 % USD Change $ Revenues from Ordinary Activities Energy transmission services , , Connection charges , ,9 76 Roads , ,4 369 Dispatch and coordination CND-MEM , ,0 28 MEM Services (STN, SIC, SDI) , ,6 11 Telecommunications , ,4 117 Other operating revenues , ,2 23 Construction , ,4 263 Revenues from ordinary activities , , Sales and operation costs , ,9 847 Gross profit on sales , , Administrative expenses , ,1 219 Other income /(expense) net , ,8 61 Net equity method , ,4 47 Income from operating activities , , Financial income , ,6 194 Financial expenses , ,0 488 Income before taxes , , Income tax provision , ,6 310 Year-end income , ,3 794 Minority interests , ,6 307 NET INCOME , ,7 487 Chang e % 2017 USD EBITDA ,0% , EBITDA Margin 57,4% 55,8% 63,7% 75,0% Operating Margin 46,7% 46,7% 59,3% 71,5% Net Margin before IM 22,6% 21,7% 33,7% 42,2% Net Margin 16,1% 9,5% 20,7% 18,0%

20 20 / 25 ISA S.A. E.S.P. - CONSOLIDADO - BALANCE SHEET (Audited) DECEMBER 2017 Amounts expressed in millions of Colombian pesos 2017 Current Assets Cash and cash equivalent , ,4 513 Financial Assets , , Current tax , ,3 104 Inventories - net , ,9 28 Other non-financial assets , ,0 32 Current Assets , , Non-current Assets Restricted cash , ,3 26 Non-current tax , Investments in associates and joint business , , Financial instruments , ,1 5 Current financial assets , , Inventories - net , ,6 29 Property, plant, and equipment -net , , Assets kept for sale , , Intangibles , ,0 22 Non-financial assets , ,4 169 Deferred tax , , TOTAL ASSETS , , Current Liabilities Financial liabilities , ,2 537 Accounts payable , ,9 261 Employee benefits , ,1 25 Current tax , ,5 137 Provisions , ,4 42 Other non-financial liabilities , ,0 38 Current liabilities , , Non-current liabilities Financial liabilities , , Accounts payable , ,6 334 Non-current taxes , ,2 353 Employee benefits , ,7 165 Provisions , ,5 85 Other non-financial liabilities , ,1 164 Deferred tax , , Non-current liabilities , , TOTAL LIABILITIES , , EQUITY Subscribed and paid-in capital , ,0 12 Premium for placement of shares , ,0 479 Reserves , , Retained earnings , , Comprehensive income of year , ,7 482 Other comprehensive income of year , ,8 416 Equity attributable to owners of the parent , , Non-controlling interest , , Equity , , EQUITY AND LIABILITIES , , Part % 2016 Var. $ Var. % 2017 USD