Slide 1: Corporate Presentation June 2019
CORPORATE PRESENTATION JUNE 2019 CONNECTIONS THAT INSPIRE
Slide 2: ISA is a Multi-Latin Corporate Group
ISA is a Multi-Latin Corporate Group recognized for the operational excellence of its Energy, Roads and Telecommunications businesses 3 Businesses 7 43 countries Affiliates and subsidiaries 2
Slide 3: ISA Strategic Cycles
ISA STRATEGIC CYCLES Internationalization Growth and Profitability New Strategic Cycle Diversification Revenues USD 3,5 billion 2012 Net 80% outside Colombia Income x3 20% other businesses Sustainable Value Creation 4,0 14,0 3,5 12,0 3,0 10,0 2,5 8,0 Revenues 2,0 6,0 Net Income 1,5 4,0 1,0 2,0 * Exc
Slide 4: Main Targets
GROWTH WITH SUSTAINABLE VALUE CREATION Reduce tCO2e by 11 million Achieve a minimum EBITDA increase of 70% Invest USD 2.000 million in new Invest USD 10.500 energy businesses million in current businesses and geographies; and Invest USD 150 expand footprint million in entrepreneurship MAIN TARGETS 4
Slide 5: Energy Transmission Infrastructure
ENERGY TRANSMISSION Revenue participation by market in 2018 INFRASTRUCTURE Colombia Peru Brazil Chile 70% 70% 20% 5% • Average concessions term 25 years. • In Colombia and Chile, the concessions are perpetual. • Largest high voltage Energy Transmission network in Latin America 99,99% Reliability 99,
Slide 6: Toll Road Concessions
TOLL ROAD ISA and Construcciones El Cóndor CONCESSIONS signed alliance to grow in Colombia and Peru As of December 2018 In operation Grupo 907 km Costanera Penta Las 4% OHL Américas 1% 5% Under construction Sacyr Rutas del Loa 8% 136 km Market share ISA interurban roads 40% Global Vía 2018 transit v
Slide 7: Information Technology and Telecommunications
Ashburn United States INFORMATION Asia Europe TECHNOLOGY AND TELECOMMUNICATIONS Miami As of December 2018 Central America Colombia 49.500 km 97,64% 851 Fiber optics cable Service level Clients in operation Ecuador Peru Serves as a platform for operators, companies Brazil and government entities to a
Slide 8: Why Invest in ISA?
WHY INVEST IN ISA? Highest Corporate Long-term businesses Outstanding Footprint - Diversification Governance with predictable balance of across countries and Standards revenues and strong risk/return businesses cash flow generation Higher investor Growth focus Capital intensive returns – on Value in
Slide 9: ISA Has the Highest Corporate Governance Standards
ISA HAS THE HIGHEST CORPORATE GOVERNANCE Shareholder Structure (May 2019) STANDARDS 38,42% Private investors 425.599.786 24,10% Local institutions 266.971.338 1.107.677.894 26.332 USD 5.5 billion Shares Shareholders Market Capitalization 10,70% Foreign investment funds 118.526.874 3,60% Retail inves
Slide 10: Diversification Across Countries and Businesses
DIVERSIFICATION ACROSS COUNTRIES AND BUSINESSES Others 0,1% Peru 19,0% Colombia EBITDA 2014 2015 2016 2017 2018 24,8% Energy 70% 69% 71% 78% 83% Chile Roads 27% 28% 25% 19% 15% 16,8% Brazil Telecommunications 37,9% 3% 3% 3% 3% 2% Excluding non recurring events in Brazil 2018 EBITDA per country 10
Slide 11: Long-Term Business with Predictable Revenues and Strong Cash Flow Generation
LONG-TERM BUSINESS WITH PREDICTABLE REVENUES AND STRONG CASH FLOW GENERATION Figures in USD billion 3,5 2,0 3,0 1,8 3,0 3,0 1,6 2,5 1,4 2,5 2,3 1,8 1,2 2,0 1,0 1,8 1,7 1,8 1,6 1,5 0,8 1,0 1,4 0,6 0,4 0,5 0,2 0,0 - 2019 2020 2021 2022 2023 Operational Cash Generation Net Debt / EBITDA 2019 – 2023 Ann
Slide 12: ROE Robust Growth in Profitability
ROE 13,9% 12,8% 12,1% 9,1% 8,9% 7,4% 5,8% 2013 2014 2015 2016* 2017* 2018 1Q19 ROBUST COLGAAP COLGAAP Sin RBSE Sin amnistía tributaria y *Excluding non recurring events in Brazil RBSE en Brasil GROWTH IN IFRS PROFITABILITY 12
Slide 13: High Investor Returns and Stable Dividend Policy
HIGH INVESTOR RETURNS AND STABLE DIVIDEND POLICY DIVIDEND YIELD PAYOUT RATIO Average 3,6% 3,9% 55% 52% 2,9% 2,8% Average 50% 56% 54% 2,5% 3,1% 45% 42% 20% Average Average Colombian Colombian 2014 2015 2016 2017 2018 issuers 2014 2015 2016 2017 2018 issuers 2,3% Excluding non recurring events in Braz
Slide 14: Multiples & Stock Market Information
BVC: ISA CB OTC: IESFY December 2014 – June 13 2019 MULTIPLES & STOCK MARKET 3,4x Max historic price INFORMATION COP 18.600 18.000 May 2019 16.000 P/BV 1,49x P/E 10,33x 14.000 EV/EBITDA 7,70x Yield 3,41% 12.000 10.000 As of June 13 2019 8.000 Mkt Cap USD 6,3 billion 6.000 ADV 4.000 USD 2,9 million 2
Slide 15: Focus on Value Creation: Consolidated Financial Results
FOCUS ON VALUE CREATION CONSOLIDATED FINANCIAL RESULTS Excluding non recurring events in Brazil Figures in USD million Exchange rate COP/USD 2.956,55 CAGR USD 1.627 20,3% USD 1.389 USD 971 USD 1.110 USD 777 EBITDA 2012 2013 2014 2014 2015 CO L GAA P CO L GAA P CO L GAA P N CIF N CIF 66,5% 62,3% EBIT
Slide 16: Focus on Value Creation: Consolidated Balance Sheet
FOCUS ON VALUE CREATION CONSOLIDATED BALANCE SHEET Figures in USD million Exchange rate COP/USD 3.249,75 Others Peru 0,5% Colombia 14,3% 21,6% 55,1% 2018 Brazil Chile 37,6% 26,1% USD 13.836 USD 5.829 46,3% USD 8.922 Others USD 3.984 Peru 0,4% Colombia 62,2% 13,1% USD 8.007 28,1% USD 4.938 Brazil 23,
Slide 17: Healthy Leverage Ratios & Credit Ratings
HEALTHY LEVERAGE RATIOS & CREDIT RATINGS ISA’s credit ratings reflect the company’s strong financial profile showing stable and Total 2018 predictable cash flows. USD 5,4 billion CREDIT RATINGS 5,75 5,97 5,73 Moody’s 5,01 5,24 International Corporate Ratings Baa2, stable outlook. May. 2019 3,25 3,14
Slide 18: Capex 2019-2023
CAPEX 2019-2023 Estimated investment amount for the period USD 3,5 billion Capex 2019 - 2023 USD 1,4 USD 1,0 USD 0,6 Telco Others 4,1% 0,1% USD 0,3 USD 0,2 Roads Peru Colombia 24,8% 22,1% 21,4% 2019 2020 2021 2022 2023 By business By country Colombia Chile Brazil Peru Others Chile Brazil 30,0% Energ
Slide 19: ESG
WHY INVEST IN ISA? ISA is a company that is working towards growth with sustainable value creation. ESG 19
Slide 20: Recognitions
RECOGNITIONS ISA is recognized by the KEY SUSTAINABILITY indexes in the world Second year in a row in the • For the fourth year in a row following indices • One of the three Latin American companies in the category of Public Service Energy • Maximum score in terms of cyber security and in matters re
Slide 21: ISA's Legacy for Future Generations
ISA’S LEGACY FOR FUTURE GENERATIONS Conexión Jaguar, Grupo ISA's sustainable program, was developed in partnership with its technical allies, South Pole and Panthera, in order to contribute to: • Biodiversity conservation • Climate change mitigation • Jaguar natural habitats connectivity in Latin Am
Slide 22: Disclaimer
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
Slide 23: www.isa.co
Carolina Botero Londoño Chief Financial Officer Gloria Cecilia Velásquez T. Investor Relations Phone: +574 315 74 70 gcvelasquez@isa.com.co www.isa.co CONNECTIONS THAT INSPIRE