Interconexion Electrica Sa Esp · BVC:ISA
Interconexion Electrica Sa Esp — 2024 J.P. Morgan Global Emerging Markets Corporate Conference
17 slides from Interconexion Electrica Sa Esp's conference presentation, July 2024
Slide 1: Important note
CORPORATE PRESENTATION 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 ass
Slide 2: Corporate Presentation 4Q23
CORPORATE PRESENTATION 4Q23
Slide 3: Leading multilatin developer and operator of power transmission systems, roads and digital infrastructure
Leading multilatin developer and 65% ISA + ITCO 59% Transelca 6% operator of power transmission Ruta Costera: 146 km systems, roads and digital infrastructure in the Latam region 72% CTM 39% 19% CTEEP1 12% REP 28% TAESA 7% ISA Peru 5% Key metrics Transformer ~ 110,000 MVA Roads in 699 kms capacity o
Slide 4: 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 5: Sustainable Value
Generate shareholder value ⮚ Projects under construction that will generate over USD 384 M in new revenues1. ⮚ Net profit of USD 645 M in 2023, an 12% increase compared to 2022. ⮚ Historical level of new investments awarded totaling USD 2.3 trillion. ⮚ ROAE of 14% at the close of 2023. Sustainable E
Slide 6: ISA executed investments totaling USD 1 billion in 2023
ISA executed investments totaling USD 1 billion in 2023, focusing on the expansion and strengthening of the energy transmission network and the road business. Executed CAPEX CAPEX by country USD million CAPEX by business unit Peru Colombia Power 15% 29% transmission 274 277 291 81% 244 LTM LTM 4Q23
Slide 7: USD 2.1 bn. EBITDA and 14% ROAE
USD $2.1 bn. EBITDA and 14% ROAE Peru 3% 18 % Telco Colombia 24 % 19 % EBITDA Revenue Roads Chile LTM 4Q23 LTM 4Q23 17 % USD $3.3 bn. USD $2.1 bn. 78 % Power transmission Brazil 41 % USD$ 570 Net profit Million 17 % Net margin 14 % ROAE 7
Slide 8: 20% of revenues denominated in USD, and over 80% contracted for 10 years or more
20% of revenues denominated in USD, and over 80%+ contracted for 10 years or more Diversified currency and regulatory risk Long-term contracted revenue, mostly B2G Other 1-5 years 1% 2% USD CLP 5-10 years 20 % 17% Perpetual 15 % 31 % Revenue Revenue LTM 4Q23 LTM 4Q23 USD $ 3.3 bn. COP USD $3.3 bn. 2
Slide 9: Investment grade rating with leverage leeway
Investment grade rating with leverage leeway ISA Banks Bonds Fixed MOODY'S Baa2 19% 54% rate Fitch Ratings BBB 47% CTEEP Total Debt Total Debt DCM Fitch Ratings AAA 4Q23 4Q23 4Q23 CTM MOODY'S Baa3 Fitch Ratings BBB Capital Green Variable market bonds rate Interchile MOODY'S Baa1 81% 46% 53% Fitch Ra
Slide 10: Strong contracted growth: USD 7.8 bn. in backlog 4Q23
Strong contracted growth: USD $ 7.8 bn. in backlog 4Q23 Figures in Bn. Of USD. Evolution Composition Execution 0.8 7.8 0.2 Other investments 7.4 0.3 Projection for Maintenance (6) -0.2 1.0 Projection for Reinforcements and Improvements (5) 0.4 Capital contributions (4) -1.7 Reinforcements and 0.9 im
Slide 11: 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) (02/23 – 02/24) 500 450 400 350 300 250 200 150 02/23 03/23 04/23 05/23 06/23 07/23 08/23 09/23 10/23 11/23 12/23 01/24 02/24 Col 31 Col 34 ISA 33 Col 31 Col 34 ISA 33 Max 446 508 348 Min 281 318 200 Avg 344 399 25
Slide 12: A diversified portfolio of opportunities for sustainable growth
A diversified portfolio of opportunities for sustainable growth Panama USD 1.2 Bn. Opportunities * Colombia USD 11 Bn. USD 2.5 Bn. Brazil Peru USD 2.9 Bn. USD 680 M Energy Transmission Roads Chile USD 7.3 Bn. USD 3.7 Bn. USD 3.7 Bn. *Investment opportunities portfolio for 12 months ending December 2
Slide 13: ISA's country risk premium is significantly lower than the country risk of Colombia
ISA’s country risk premium, when weighted by EBITDA, is significantly lower than the country risk of Colombia Bps 400 350 Colombia 300 EMBI ISA 250 Brazil 200 Peru 150 Chile 100 80 120 160 200 240 280 320 Bps CDS Country Brazil Chile Colombia Peru ISA avg1 CDS 231 106 287 126 190 EMBI 200 131 298 15
Slide 14: Board will recommend an ordinary dividend of USD 0.3 per share
The board of directors of ISA will recommend to the General Shareholders' Meeting an ordinary dividend of USD 0.3 per share(4), equivalent to USD 322 M, representing 50% of the net profits for 2023. (Expressed USD) 88% 70% CAGR (1) (2019-2024) 50% 50% 45% 45% 15% 40% 40% 0.4 0.2 0.2 0.3 0.1 0.2 0.2
Slide 15: Closing messages
Closing messages • In 2023, we continued our growth trajectory, with increases in operating revenues, EBITDA, net profit, net margin, and return on equity. • Committed investments pending execution close the year at USD 7.8 bn. • We maintain a strong balance sheet and financial flexibility to suppor
Slide 16: 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
Slide 17: Appendix D: ISA, 55 years in Colombia & Latin America
Appendix D: 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 Hydroe