Interconexion Electrica Sa Esp · BVC:ISA
Interconexion Electrica Sa Esp — ISA — Colombia Investment Summit 2023
19 slides from Interconexion Electrica Sa Esp's conference presentation, 2023
Slide 1: Important note
COLOMBIA INVESTMENT SUMMIT Important note ISA has prepared the following report for informational purposes. The Company is not responsible for any investment decisions based on this report. The statements contained herein reflect our current views regarding future events and are, therefore, based on
Slide 2: Colombia Investment Summit
. COLOMBIA INVESTMENT ° SUMMIT iY4o— ol
Slide 3: ISA, 55 years in Colombia & Latin America
ISA, 55 years in Colombia & Latin America 2002 2021 Second equity Ecopetrol 1967 1982-1984 issuance: 2006 Chivor and San 1998 47.000 new Acquisition 2012 acquires ISA and aims to Establishment Carlos I Inception of shareholders Creation of become one of of CTEEP, INTERCHILE of ISA Hydroelectric TRAN
Slide 4: Leading multilatin developer and operator of power transmission systems, roads and digital infrastructure
Leading multilatin developer and 63% ISA + ITCO 57% Transelca 6% operator of power transmission Ruta Costera: 146 km systems, roads and digital infrastructure in the Latam region 73% CTM 40% 18% CTEEP1 12% REP 28% TAESA 7% ISA Peru 5% Key metrics Transformer ~ 110,000+ MVA Roads in 699 kms capacity
Slide 5: Attributes of ISA's value proposition
Attributes of ISA´s value proposition Atributos de nuestra propuesta de valor Contracted revenue with Perpetual or long-term Robust cash flow inflation protection concessions generation Growth markets Strong financial position Economic cycle resilience 3
Slide 6: Sustainable Value
Generate shareholder value ➢ USD 390 bn+ in new revenues(1). ▪ USD 120 million included from projects won in Brazil and Peru in 3Q23. ➢ Accumulated growing financial results in 2023. ➢ ROAE stands at 14% as of 3Q23. Sustainable Ensure Corporate Validity Value Create a positive social and ➢ With adva
Slide 7: ISA continues to contribute to the development of community ecosystems with social initiatives
ISA continues to contribute to the development of community ecosystems with social initiatives Conexión Desarrollo Program Strengthening entrepreneurship and productivity in 2023 • 1,800+ people1 benefited and COP 5+ Billion2 in investment. • Sectors: tourism, agriculture, livestock and agribusiness
Slide 8: ISA enables Latam's energy transition by developing critical power transmission projects
ISA enables Latam’s energy transition by developing critical power transmission projects 39 projects in execution 5,800+ km of circuit ~18,000 MVA Colombia Peru Brasil1 Chile 14 9 9 7 Projects Projects Projects Projects USD 366m in new annual revenues 1 Without Reinforcements and improvements 86
Slide 9: USD $1.6 bn. EBITDA and 14% ROAE
USD $1.6 bn. EBITDA and 14% ROAE Peru 3% 18 % Telco Colombia 24 % 19 % EBITDA Revenue Roads Chile 9M23 1.6 bn. 9M23 17 % USD $ 2.4 bn. USD $ 78 % Power transmission Brazil 41 % USD$ 500 Net profit Million 19 % Net margin 14 % ROAE 7
Slide 10: 26% of revenues denominated in USD, and over three-fourths contracted for 10 years or more
26% of revenues denominated in USD, and over three-fourths contracted for 10 years or more Diversified currency and regulatory risk Long-term contracted revenue, mostly B2G Other 1-5 years 1% 5% USD CLP 5-10 years 26 % 17% Perpetual 18 % 25 % Revenue Revenue 9M23 9M23 USD $ 2.4 bn. COP USD $ 2.4 bn.
Slide 11: ISA is the most diversified electric power transmission platform in the region
ISA is the most diversified electric power transmission platform in the region, by country and by asset class Power transmission revenues Colombia2 Brazil3 Other Expansion O&M Peru 1% Colombia Expansion B2B Projects 25 % projects1 20 % 23% 21 % 22 % 27 % Chile USD $ 2.5 bn. USD $ 6.3 m. USD $4.5 m.
Slide 12: Investment grade rating with leverage leeway
Investment grade rating with leverage leeway ISA Banks Bonds Fixed MOODY'S Baa2 17% 57% rate Fitch Ratings BBB 47% CTEEP Total Debt Total Debt DCM Fitch Ratings AAA 3Q23 3Q23 3Q23 CTM MOODY'S Baa3 Fitch Ratings BBB Capital Green Variable market bonds rate Interchile MOODY'S Baa1 83% 43% 53% Fitch Ra
Slide 13: Strong contracted growth: USD $6.4 bn. in backlog
Strong contracted growth: USD $ 6.4 bn. in backlog Figures in Bn. Of USD. Evolution Execution Composition 0.9 6.4 6.4 0.2 Other investments 0.2 Maintenance projection (6) 5.7 -0.4 (5) 1 Projection of reinforcements and improvements -0.2 0.2 K contributions Kimal Lo-Aguirre -1.3 reinforcements and 1
Slide 14: A robust portfolio of opportunities for continuous growth
A robust portfolio of opportunities for continuous growth Panama USD 1,2 bn Brazil USD 3 bn Colombia USD 3,8 bn Opportunities* USD $ 14 bn. Peru USD 1,5 bn Power Chile Roads USD 4,6 bn transmission USD $8 bn. USD $6 bn. (*) Portfolio of investment opportunities Sep 2023 - Sep 2024 14
Slide 15: Our low-cost debt reflects the regional diversification of our portfolio
Our low-cost debt reflects the regional diversification of our portfolio G-Spread (1) (2) 500 450 400 350 300 250 200 150 100 10/22 11/22 12/22 01/23 02/23 03/23 04/23 05/23 06/23 07/23 08/23 09/23 10/23 Col 31 Col 34 ISA 33 Col 31 Col 34 ISA 33 Max 433 485 334 Min 270 330 170 Avg 339 399 247 Curren
Slide 16: ISA's country risk premium, when weighted by EBITDA, is significantly lower than Colombia's
ISA’s country risk premium, when weighted by EBITDA, is significantly lower than the country risk of Colombia Bps 400 Colombia 350 300 ISA EMBI 250 Brazil Peru 200 Chile 150 100 80 120 160 200 240 280 320 360 Bps CDS Country Brazil Chile Colombia Peru ISA avg1 CDS 289 132 349 146 246 EMBI 206 135 33
Slide 17: A blended index of the stock exchanges of Colombia, Brazil, Chile and Peru
A blended index of the stock exchanges of Colombia, Brazil, Chile and Peru, weighted by ISA’s EBITDA, remains at levels of 2021. Company Business EV/EBITDA Celsia Generation + distribution 5,1 130 Cemig Integrated + Gas 5,3 120 CPFL Integrated 4,5 CTEEP Energy transmission 7,8 110 Eletrobras Generat
Slide 18: Closing messages
Closing messages • The remaining committed investments of USD $6.4 bn. demonstrate our commitment to corporate sustainability and the creation of sustainable value. • We enable the energy transition by energizing four projects, we enhance the efficiency and reliability of the grid. • Strong financia
Slide 19: Thank you
Thank you Visit our Valuation Kit for more information about ISA and its companies: https://www.isa.co/es/inversionistas/informacion-financiera/#kit