Interconexion Electrica Sa Esp · BVC:ISA
Interconexion Electrica Sa Esp — ISA — 2023 Emerging Markets Debt and Equity Conference
30 slides from Interconexion Electrica Sa Esp's conference presentation, 2023
Slide 1: ISA: Creating sustainable value
ISA: Creating sustainable value 1
Slide 2: Leading Multi-Latin energy and infrastructure platform, operating strategic assets in the region
Leading Multi-Latin energy and infrastructure platform, operating strategic assets in the region Colombia Power Market Share: Toll Roads Ruta Costera: Transmission 62% 146 kms Colombia Peru Brazil Power Market Share: Power Market Share: Peru Transmission 73% Transmission 19% Brasil Chile Bolivia Pow
Slide 3: Attributes of our value proposition
Attributes of our value Atributos de nuestra propuesta de valor proposition Contracted revenues, Perpetual or long-term Robust cash flow with inflation protection concessions generation Growth in our markets Strong financial position Economic cycles resilience 3
Slide 4: ISA’s strategic cycles in Colombia & Latin America
ISA’s strategic cycles in Colombia & Latin America Growth and Profitability Sustainable Value Internationalization Diversification Efficiency Generation Revenues: 80% outside Colombia To 2020 Revenues of USD 2,5 billion Shareholder 20% other businesses Value Corporate sustainability Positive social
Slide 5: ISA´s corporate structure (main platforms)
ISA´s corporate structure (main platforms) Pension Funds Other Investors 51.4% 8.8% 27.3% 12.5% Controlled Platforms (1) Shared Control(1) INTERNEXA INTERCOLOMBIA TRANSELCA INTERVIAL ISA PERÚ TRANSMANTARO REP RUTA DE LA RUTA DE LOS RUTA DEL ARAUCANÍA RIOS MAIPO CTEEP ISA BOLIVIA INTERCHILE RUTA DEL
Slide 6: Sustainable value
Shareholder value: Profitable growth Corporate governance Sustainable Corporate sustainability value Positive social and environmental impact: Caring for the planet, and Leverage value creation contributing towards achieving through innovation, digital Sustainable Development Goals transformation, c
Slide 7: Key investment highlights
Key investment highlights 1. Regulated businesses, stable and predictable cash flow with inflation protection 2. Growth strategy 3. Attractive risk-return due to geographic and multisectoral diversification 4. Profitable Growth, 5. Investment Grade and leverage leeway 6. Attractive shareholder retur
Slide 8: Regulated businesses with no demand risk and predictable cash flows
Regulated businesses with no demand risk and predictable cash flows 1 Regulated revenue paid according to availability (no demand risk). ISA's strategy is to continue operating under regulated frameworks that encourage operational efficiency. Power Transmission Toll Roads ✓ Revenues indexed to CPI o
Slide 9: Regulated income, diversified by currency
1 Regulated income, diversified by currency Four different exchange exposures Long-term contracted revenues USD: 28% Others 1-5 years USD 1% COP 5% 28% 18% Perpetual 25% 5-10 years COP REVENUES COP REVENUES 19% $13,4 Chilean peso $ 13,4 TRILLION TRILLION Brazilian Real 19% 34% + 10 years 51% 9
Slide 10: Continuous growth ensuring shareholder value generation
2 Continuous growth ensuring shareholder value Backlog generation breakdown (2) Others Peru 0% 9% Colombia Backlog: USD 5.9 billion (1) 23% Country USD 1.4 Brazil Chile 50% 18% USD 1.1 USD 1.2 USD 1.0 USD 0.8 USD 0.5 Telco Roads 4% 6% 2023 2024 2025 2026 2027 2028-2030 Colombia Chile Brazil Peru Oth
Slide 11: 2023 growth pipeline
Panamá USD 1.1 bi 2 2023 growth pipeline (1) 5% Colombia USD 3.1 bi 15% Power Brazil transmission Perú USD 10.1 bi USD 1 bi 50% USD 14.4 5% billion Opportunities* Chile USD 20 USD 4.8 bi billion 24% Roads USD 5.6 billion (1) Real economic participation by country: Colombia 25%, Chile 40%, Brasil 30%
Slide 12: Attractive risk-return profile due to geographic and multisectoral diversification
3 Attractive risk-return profile due to geographic and multisectoral diversification EBITDA (1) by country (3) EBITDA (1) by business Others Telco Peru 0% 2% Business EBITDA(2) 16% Country EBITDA (2) Roads Power Colombia 125 16% 441 Colombia transmission 23% Chile 93 Roads 87 Brazil 234 Telco 11 1Q2
Slide 13: Profitable growth
4 Profitable growth Revenues EBITDA Figures in USD Million CAGR Figures in USD Million EBITDA Margin (1) CAGR 2019-2022 2019-2022 8,2% 7,8% $2,016 $3,145 $1,903 $2,979 $1,780 $2,753 $1,611 $2,471 $818 $567 72% 75% 76% 84% 85% 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23 ____________________ 13
Slide 14: Profitable growth (cont.)
4 Profitable growth (cont.) Net Income ROAE(1) Figures in USD Million Net Margin Excluding extarodinary events Excluding extarodinary events $558 $499 $519 15.8% $444 14.7% 13.6% 14.0% 12.9% $ 423 12,8% $ 364 10,3% $173 20,1% 20,3% 14,9% 16,5% 21,2% 2019 2020 2021 2022 1Q23 2019 2020 2021 2022 1Q23
Slide 15: Investment grade with leverage leeway
Debt breakdown 5 Investment grade with leverage leeway 2022 Brazil 22% Chile 36% Total Debt 2022 Country 4.5 x USD 7.4 bi Peru 4.2 21% 3.7 3.9 4.1 Colombia 21% 3.4 3.2 Banks 16% 2018 2019 2020 2021 2022 1Q22 Source Capital Market Gross Debt / EBITDA Reference 84% Bonds Green ISA´s credit rating and
Slide 16: Debt amortization profile
5 Debt amortization profile Average life Colombia Peru Chile Brazil 10 years 800 700 600 349 500 161 129 400 187 90 9 34 76 155 155 15 10 13 132 300 100 186 146 33 133 201 164 187 144 143 15 436 200 15 324 19 128 17 181 15 33 173 23 32 39 26 12 38 106 125 15 100 37 129 33 50 39 188 197 195 72 86 29
Slide 17: Share performance over the past five years
6 Share performance over the past five years 29% ISA -26% COLCAP 2018 2019 2020 2021 2022 2023 17
Slide 18: Results that translate into higher profitability for our shareholders
6 Results that translate into higher profitability for our shareholders 88% 70% 50% dividend yield Payout 45% average Average 42% 40% 8.3% 4.7% 56% 5.1% 3.8% 3.9% 3.4% 3.3% Ordinary dividend policy Dividend yield (3) 2018 2019 2020 2021 2022 2023 40%-50% 8.3% Net Income Payout Dividend ratio yield 1
Slide 19: Sustainability model
7 Sustainability model Environment Social • Climate change strategy • Biodiversity • Circular economy • Sustainable finance • Social management model • Promote the creation of long-term alliances, strengthening relationships with communities, while mitigating risks and Sustainability impacts. Govern
Slide 20: Governance 4 pillars
7 Ethical culture and integrity • Organizational culture, ethics is in the DNA • Ethics and compliance business program • Human rights Independence and diversity in the management bodies • Board Composition and Committees that support the Board • Gender Diversity Governance Administration with manag
Slide 21: 21
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Slide 22: Appendixes
Appendixes 22
Slide 23: Appendix A: ISA’S participation in subsidiaries
Appendix A: ISA’S participation in subsidiaries Type of ISA's ISA's Type of business Country Society Type of control (1) participation Type of business Country Society participatio control(1) n C Roads Colombia Intervial Colombia S.A.S. 100% C Telco Argentina ITXAR - Transamerican Telecomunication S
Slide 24: Appendix A: ISA’S participation in subsidiaries (cont.)
Appendix A: ISA’S participation in subsidiaries (cont.) Type of ISA's Type of business Country Society control participation SC Power transmission Panama Interconexión Eléctrica Colombia Panamá S.A 50% SC Telco Ecuador TNEX - Transnexa S.A. 50% SC Others Colombia Derivex S.A. 40% SC Power transmissi
Slide 25: Appendix A: ISA’S share price in US Dollar and Brazilian Real
Appendix A: ISA’S share price in US Dollar and Brazilian Real 12 months 7,0 31 6,0 25 BRL USD 5,0 19 4,0 13 USD BRL 3,0 7 5/22 6/22 9/22 12/22 5/23 25
Slide 26: Appendix C: Diversified power transmission revenues by country and project
Appendix C: Diversified power transmission revenues by country and project Power transmission revenues by type of project in Power transmission revenues by country Colombia Others 1% B2B Peru 20% 21% Colombia 30% 2023 2023 Legacy Assets 53% Chile Expansion 5% Projects 27% Brazil 43% ________________
Slide 27: 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
Slide 28: Appendix E: A final resolution is expected for 2023 with the revision of the tariff scheme in Colombia
Appendix E: A final resolution is expected for 2023 with the revision of the tariff scheme in Colombia • Fourth resolution project 1/2023 Semester (estimated) • Final resolution 1/2023 Semester (2023 CREG agenda) • Individual firm resolution (per company) 2/2024 Semester (estimated) • Application of
Slide 29: Appendix E: Tariff scheme revision in Colombia (Cont.)
Appendix E: A final resolution is expected for 2023 with the revision of the tariff scheme in Colombia (Cont.) In view of the tariff situation in Colombia, regulatory relief measures have been implemented, which do not represent a risk of financial unviability for ISA and its companies First action:
Slide 30: Appendix E: Tariff scheme revision in Colombia (Cont.)
Appendix E: A final resolution is expected for 2023 with the revision of the tariff scheme in Colombia (Cont.) Second action: Possibility of deferral of up to 20% of the payment to some traders. Concept Tranche 1 (CREG Resolution 101 029 of 2022) Tranche 2 (CREG Resolution 101 005 of 2023) Period of
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