ISA s investments in Brazil January 30, 2017
AGENDA 2
ISA s Corporate Strategy VISION In 2020, ISA s 2012 profits will be tripled, by capturing the most profitable growth opportunities in its existing businesses in Latin America, boosting operational efficiency and optimizing its business portfolio. ISA s 2012 profits will be tripled NET INCOME 702 593 433 273 2.6x 3.0x 819 2012 2013 2014 2015 2016 2017 2018 2019 2020 20 10 relative profitability enhanced significantly 0 CONSOLIDATED INDICATORS 2,9 2,3 2,0 7,4 4,5 5,8 2,9 8,9 2012 2013 2014 2015 ROE (%) EBITDA (COP (billones billion) $) 3.500 1.500-500 3
Profitability as primary strategic goal Profitability as primary strategic goal Business and geographic mix: based on synergies with existing capabilities and assets, mainly in Colombia, Brazil, Peru and Chile Growth: Will depend on the opportunities that meet the desired profitability level. ISA s vocation: value creation through the operation and high quality infrastructure development 1 Capturing growth opportunities with higher profitability 2 Improving profitability of current and core businesses 3 Dynamic adjustment of business and geography portfolio 4
AGENDA 5
The Colombian Government is the controller with 51,41% of the shares 36,76% is the free float Shareholders Structure December 2016 # SHARES % STATE INVESTORS 682.078.108 61,58% THE COLOMBIAN GOVERNMENT 569.472.561 51,41% EMPRESAS PÚBLICAS DE MEDELLÍN 112.605.547 10,17% COMPANIES WITH PUBLIC AND PRIVATE CAPITAL 18.448.050 1,67% EEB 18.448.050 1,67% FREE FLOAT 407.151.736 36,76% INSTITUTIONAL INVESTORS 240.925.173 21,75% FOREIGN INVESTORS 92.307.506 8,33% INDIVIDUALS 56.364.266 5,09% LEGAL ENTITIES 17.222.241 1,55% ISA ADR PROGRAM 332.550 0,03% SUBSCRIBED AND PAID-IN CAPITAL 1.107.677.894 100,00% 6
Strong Corporate Governance in accordance with OECD 1 directives... ISA s Board of Directors Principal Vice Minister General Director of Public Credit and National Treasury Carlos Caballero Argáez Carlos Mario Giraldo Carlos Felipe Londoño Álvarez Jesús Arturo Aristizabal Guevara Henry Medina Gonzalez Santiago Montenegro Trujillo** Camilo Zea Gómez Nominated by: Ministry of Finance and Public Credit Ministry of Finance and Public Credit Independent - nominated by the Nation MHCP Independent - nominated by the Nation MHCP Independent - nominated by the Nation MHCP Independent - nominated by EPM Independent - nominated by Ecopetrol Independent - nominated by Pension Funds Independent - nominated by Pension Funds ** Chairman of the Board 1. OECD: Organization for Economic Co-operation and Development ISA was awarded in 2015 and 2016 the ALAS 2020 prize for best Corporate Governance in Colombia. 7
AGENDA 8
ISA, a multi-latin corporation with wide presence in most of Latin America 9
ISA: Main figures Figures in COP billions Revenues EBITDA Net Income 4.217 5.271 3.743 4.810 2.297 2.872 2.133 2.455 510 702 560 634 2014 2015 9M15 9M16 2014 2015 9M15 9M16 2014 2015 9M15 9M16 Assets Margins Debt 63% 55% 57% 55% 45% 46% 49% 57% 12% 13% 15% 16% 2014 2015 9M15 9M16 Operating EBITDA Net Excluding construction and RBSE Total financial debt amounts to COP12.469 billion in September 2016 3,9 3,9 3,9 3,9 3,9 4,0 3,9 3,6 4Q15 1Q16 2Q16 3Q16 Debt / EBITDA *9M16 figures excludes the accounting recognition of the value of the RBSE (Basic Network of the Existing System) 10
Availability (%) ISA is the largest international energy carrier in Latin America Revenues 2015 COP 3.776b or USD 1.199m EBITDA Margin: 52,1% ITCO 99,94 Transelca 99,83 REP 99,52 Transmantaro 99,75 ISA Peru 99,83 CTEEP 99,96 ISA Bolivia 99,55 11
ISA has other businesses with presence in the region.. Telecommunications The longest wide band fiber optics ring in the continent Revenues 2015: USD 90m EBITDA Margin: 32,1% Toll Roads The largest operator of toll roads in Chile. Revenues 2015: USD 348m EBITDA Margin: 72,4% Energy Control Center (XM) operates the National Interconnected System manages international electricity transactions 12
AGENDA 13
ISA in Brazil: 10 years of growth in Energy Transmission... EXPANSION BRL 9 billion investments in all regions of the country Participation in 14 of the 19 auctions held until 2012 Adding 5,000 km of transmission lines and 14,650 MVA of transformation capacity * Includes total investment of CTEEP 14
ISA ISA in in Brazil: 10 has years been of growing growth... in telecommunications... EXPANSION 1 4 o 1 2010 Brazil Network Rio de Janeiro 3 o2 2011 2014 Network anchors 2 o3 o4 2014 NQT Rio acquisition 2016 Submarine cable 5 o5 2016 Expansion Sao Paulo network 15
USD 2,8 billion in investments already committed supports future growth... Figures in COP billions, USD in million Projections: January 2017 5.048 COLOMBIA PERU BRAZIL CHILE OTHERS COP 8.504 billion USD 2.817 million 1.816 315 250 2017 2018 2019 2020 Exchange rate 3.075 2.974 2.895 2.915 USD 929 million will be in Brazil, including 14,9% of TAESA participation. by country % Brazil 32,8 Colombia 30,5 Chile 22,8 Peru 13,8 Others 0,1 In 2016 ISA resumed the investments in Brazil 16
Areas of higher energy consumption in Brazil Population is strongly concentrated in the Southeast and Northeast. Industrial activity is concentrated in the metropolitan areas of SP, RJ, Curitiba, Campinas, Porto Alegre, Belo Horizonte, Manaus, S. Bahia, Recife and Fortaleza. https://es.wikipedia.org/wiki/brasil 17
CTEEP... Its presence extends to 17 states, with 12 long term concessions and approximately 20 thousand km of lines 18
TAESA... Present in almost every Brazilian state, with 33 long term concessions and approximately 11 thousand km of lines Source: TAESA s November 2016 Presentation See ISA s Relevant Information 12/27/2016 19
Disclaimer ISA has elaborated the following report for information purposes. The company is not responsible for any investment decision made from this report. The statements included therein reflect our current points of view in relation to future events; they are based on assumptions and subject to risks and factors that may cause results, performance and achievements of the company to change at any moment. These factors include general changes in the energy sector, financial conditions, government policies (national and international), as well as variations in interest rates, inflation, volatility in exchange rates, and levels of taxes. As a result of these risks and factors, current results may differ materially from estimates provided. The company does not accept responsibility for any change or information provided by official sources. The user is solely responsible for the use of this information. 20
Investor Relations Contact Email Website InvestorRelations@isa.com.co www.isa.co Telephone +574 315 7470 @ISA_Avanza /ISAAvanza Interconexión Eléctrica ISA /CanalISAAvanza 21