28 slides from Interconexion Electrica Sa Esp's investor presentation, September 2019
Slide 1: Corporate Presentation September 2019
CORPORATE PRESENTATION SEPTEMBER 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 Efficiency Revenues USD 3,5 billion 2012 Net 80% outside Colombia Income x3 20% other businesses Sustainable Value Generation4,0 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
Slide 4: Main Targets
GROWTH WITH SUSTAINABLE VALUE CREATION Reduce tCO2e by 11 million Achieve a minimum EBITDA increase of 70% Invest USD 2 billion in new Invest USD 10,5 energy businesses billion in current businesses and geographies; and Invest USD 150 expand footprint million in MAIN entrepreneurship TARGETS 4
Slide 5: Our Manifest
OUR MANIFEST
Slide 6: Energy Transmission
Market participation by ENERGY 2018 revenues TRANSMISSION Colombia Peru Brazil Chile 70% 70% 20% 5% • Average concession term of 25 years. • In Colombia and Chile, the concessions are perpetual. USD 9,6 billion • Largest high-voltage Energy Transmission 2030 investment target network in Latin Americ
Slide 7: Toll Road Concessions
TOLL ROAD CONCESSIONS 40% USD 3 billion Market share* 2030 investment target As of December 2018 In operation 907 km ISA and Construcciones El Under construction Cóndor signed a Rutas del Loa 136 km strategic partnership 2018 transit vehicles agreement to grow 148 million* per year in Colombia and *
Slide 8: Information Technology and Telecommunications
Ashburn United States INFORMATION Asia Europe TECHNOLOGY AND TELECOMMUNICATIONS Miami As of December 2018 49.500 851 97,64% Fiber optics km Clients Service level Central America Colombia Ecuador • Infrastructure and connectivity services • Security platforms Peru • Managed services • Data center Bra
Slide 9: Why Invest in ISA?
WHY INVEST IN ISA? Leading multi-latin in the High cash generation with Highest Corporate Long-term businesses region, operating strategic predictable flows and low Governance with predictable, and essential assets for the volatility, favored by the Standards regulated revenues and economies where i
Slide 10: ISA Has the Highest Corporate Governance Standards
ISA HAS THE HIGHEST CORPORATE GOVERNANCE Shareholder Structure (July 2019) STANDARDS 51,41% Colombian Government 60,23% 569.472.561 Government investors 8,82% 667.196.974 Empresas Públicas de Medellín 97.724.413 IR Committed awarded by BVC 39,77% 25,51% Private investors Local institutions 440.480.9
Slide 11: High Standards of Ethics and Corporate Governance
Maximum qualification in legal audit in 2017 and 2018 in each of the components. Board of Directors: • At least 5 of 9 members must be independent • Currently 7 members are independent Application of 95% of Country Code HIGH Shares and bonds recommendations STANDARDS OF traded on the Colombian Stock
Slide 12: Diversification Across Countries and Businesses
DIVERSIFICATION ACROSS COUNTRIES AND BUSINESSES Others 1,4% EBITDA 2014 2015 2016 2017 2018 6M19 Peru Colombia 19,4% 24,2% Energy 70% 69% 71% 78% 83% 84% Roads 27% 28% 25% 19% 15% 14% Chile Brazil 17,5% Telecommunications 3% 3% 3% 3% 2% 2% 37,5% Excluding non recurring events in Brazil 6M19 EBITDA p
Slide 13: Long-Term Leverage and Cash Generation Profile
LONG-TERM LEVERAGE AND CASH GENERATION PROFILE Figures in USD billion 1,9 2,9 USD 1,9 3,5 1,9 2,6 2,8 USD 1,8 3,0 1,8 USD 1,7 USD 1,8 2,1 2,5 1,8 1,7 2,0 1,7 USD 1,6 1,5 1,7 1,0 1,6 1,6 USD 1,4 USD 1,5 USD 1,7 USD 1,8 USD 1,9 0,5 1,5 - 2019 2020 2021 2022 2023 Operational Cash Generation Net Debt /
Slide 14: ROE: Robust Growth with Profitability
ROE 15% 12,8% 12,1% 9,1% 8,9% 7,4% 5,8% 2013 2014 2015 2016* 2017* 2018 2Q19 ROBUST COLGAAP *Excluding non recurring events in Brazil GROWTH WITH IFRS PROFITABILITY Average Colombian issuers 2018 8,9% Source Bloomberg 14
Slide 15: High Investor Returns
HIGH INVESTOR RETURNS DIVIDEND YIELD PAYOUT RATIO ISA average 3,6% 3,9% 3,4% 05% ISA 50% 2,9% 2,8% 04% average 55% 56% 54% 04% 50% 60% 3,3% 2,5% 03% 45% 55% 03% 40% 50% 45% 02% 40% 35% 02% 30% 01% 25% 01% 20% 00% Average 15% Average Colombian 2014 2015 2016 2017 2018 2019 Colombian 2014 2015 2016 20
Slide 16: Stock Market Information
BVC: ISA CB OTC: IESFY December 2014 – July 31, 2019 Max historic price 07/12/2019 21.000 3,7x COP 19.960 STOCK MARKET INFORMATION 19.000 17.000 15.000 As of July 31, 2019 13.000 Mkt cap 11.000 USD 5,98 billion Annual daily volume 9.000 USD 2,80 million 7.000 Closing price COP 17.800 5.000 2014 2015
Slide 17: Growing Financial Results with Focus on Sustainable Value
GROWING FINANCIAL RESULTS WITH FOCUS ON SUSTAINABLE VALUE Excluding non recurring events in Brazil Figures in USD million Others REVENUES CAGR 1,3% 2014-2018 Peru Colombia 18,5% 15,2% 29,7% USD 2.069 USD 2.269 USD 1.960 USD 1.619 USD 1.289 USD 1.229 Brazil Chile 31,0% 19,5% 2014 2015 2016 2017 2018
Slide 18: Growing Financial Results with Focus on Sustainable Value
GROWING FINANCIAL RESULTS WITH FOCUS ON SUSTAINABLE VALUE Excluding non recurring events in Brazil Figures in USD million CAGR USD 478 2014-2018 USD 346 USD 220 USD 240 USD 248 31,5% USD 160 Net 2014 2015 2016 2017 2018 6M19 Income 21,1% 20,2% 16,7% 12,4% 13,6% 12,2% Net Margin 2014 2015 2016 2017 2
Slide 19: Operating Cash Result
OPERATING CASH RESULT Excluding concepts that do not represent cash from the income statement Figures in USD million Others Net income as of June 2019 2,7% Peru Colombia 27,0% 35,6% USD 418 Country USD 149 USD 418 Chile USD 122 USD 30 16,9% Brazil 17,8% USD 248 USD 71 Increase Decrease Telco 3,0% Ro
Slide 20: Assets Growth Sustained in Profitability and Diversification
ASSETS GROWTH SUSTAINED IN PROFITABILITY AND DIVERSIFICATION Figures in USD million 63,0% 2014 6M19 USD 14.744 Others 0,4% Others USD 8.716 Peru 0,5% 13,1% Colombia Peru Colombia 28,1% 14,2% 20,5% USD 9.045 USD 5.006 Brazil 23,9% USD 6.028 Brazil Chile USD 4.039 Chile 38,1% 26,7% 34,5% 2014 6M19 Ass
Slide 21: Credit Ratings
SOLID FINANCIAL STRUCTURE THAT SUPPORTS CREDIT RATING ISA’s credit ratings reflect the CREDIT RATINGS company’s low risk profile and predictable cash flows. 5,8 6,0 5,7 6,1 5,2 Moody’s 3,1 3,0 3,0 3,0 International Corporate Ratings 2,7 Baa2, stable outlook. May. 2019 S&P 2Q18 3Q18 4Q18 1Q19 2Q19 In
Slide 22: ISA Plays a Key Role in the Region's Investment Metrics
ISA PLAYS A KEY ROLE IN THE REGION’S INVESTMENT METRICS Figures in USD billion Investment amount for the period USD 3,8 billion USD 1,4 CAPEX 2019 - 2023 USD 0,9 USD 1,0 USD 0,3 Others USD 0,2 Telco 0,2% 4,0% Peru Roads Colombia 22,1% 2019 2020 2021 2022 2023 22,5% 23,9% Colombia Chile Brazil Peru O
Slide 23: ESG
WHY INVEST IN ISA? ISA is a company that is working towards growth with sustainable value creation. ESG 23
Slide 24: Recognitions
RECOGNITIONS ISA is recognized by the KEY SUSTAINABILITY indexes in the world Second year in a row on 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 25: Environmental Management
+ 802 1.604 Acres = Soccer of protected forests fields and restored ISA, ISA INTERCOLOMBIA, USD 15,6 million XM y REP are invested in Latin America carbon neutral in 2018 MANAGEMENT ENVIRONMENTAL Biodiversity, Climate change, Environmental management plans 25
Slide 26: Conexión Jaguar Program
CONEXIÓN JAGUAR PROGRAM 42 families benefited in Peru Protection of more than Goals: 60 species of fauna 9 million tCO2e reduced 250 families 20 projects benefited in 400,000 Ha protected Colombia 4 current projects: Colombia: Scimitarra and Tierralta Peru: Huayabamba and Ucayali Allies
Slide 27: 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 28: 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