CORPORATE PRESENTATION - ISA PRESENTATION August, 2014 ... Lagunas project at 220 kV ... electric...

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CORPORATE PRESENTATION August, 2014 All rights reserved Interconéxión Eléctrica S.A E.S.P

Transcript of CORPORATE PRESENTATION - ISA PRESENTATION August, 2014 ... Lagunas project at 220 kV ... electric...

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CORPORATEPRESENTATIONAugust, 2014

All rights reserved Interconéxión Eléctrica S.A E.S.P

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Evolution of ISA

The Colombian Government endorses establishment of ISA to develop high-voltage energy transmission and generation projects.

ISA concludes development of the hydroelectric complex in the Eastern region of Antioquia province: San Carlos, Jaguas and Calderas (1.428 MW).

ISA operates the interconnection

between the country’s central and the Atlantic

coast regions (500 kV).

ISA operates the first regional

integration system at 230 kV

(537 km).

ISA puts in operation

the CentralNetwork at

230 kV (537 km).

ISA ventures into the energy generation business.

ISA operatesChivor

Hydroelectric Plant

(1.000 MW).

ISA commissions the first stage of San Carlos Hydroelectric Plant (620 MW).

ISA operates the National Telecommunications and Control Center.

1967

1977

1971

1984

19851982

1988

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The Shareholders’s Meeting approves legal transfor-mation of ISA into a State Industrial and Commercial Company with authorization to attract private capital.

Venture intothe telecommunica-

tions market as carrier’s carrier.

ISA commissions the satellite network and second stage of the fiber optics project.

ISA operates the Colombia - Ecuador

international interconnection (230 kV)

Acquisition of 65% of energy transport assets of CORELCA.

Establishment of TRANSELCA (Colombian Atlantic Coast).

The State acquires 51% ownership of ISA.

The Shareholders’ Meeting approves spin-off of ISA and establishment of ISAGEN S.A. E.S.P with the generation assets.

ISA operates the Colombia-Venezuela

international interconnection (230 kV).

Beginning of the Wholesale Energy

Market, the Energy Pool and the Commercial Settlement System.

19911994

1992

1996

19981995

1999

Evolution of ISA

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First public listing program - ISA, Shares for All. 62.000 new shareholders and 115 million shares sold.

Entrance to international markets after winning public bidding in Peru to build 373 km

of lines and expand substations.

Beginning of commercial operation of INTERNEXA, the telecommunications subsidiary that provides

carrier’s carrier services in Colombia.

Installation of Arcos undersea cable to interconnect Colombia with North, Central

and South America and the Caribbean (8.600 km of fiber optics).

Filing as economic group with ISA as parent company, Transelca, Internexa and First

Mark Communications Co. as subsidiaries, and ISA Perú as affiliate.

2000

2001

Second offer of shares of the program ISA, Shares for All. 120 million shares sold to 47.000 Colombians.

2002

Evolution of ISA

Construction, in association with Transelectric, of international interconnection at 230 kV between Colombia and Ecuador.

The Peruvian Government awards concession for electric transmission systems (ETECEN and ETESUR). Establishment of Red de Energía del Perú –REP–

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Evolution of ISA

Beginning of operations of Transnexa, company engaged in telecommunications traffic between Colombia and Ecuador.

Filing of ADR Level I with the United States Securities

and Exchange Commission.

REP concludes construction of Peruvian segment of the

electric interconnection project integrating Peru with Ecuador.

2003

2004

Subscription to the Global Compact promoted by the United Nations.

Establishment of XM, Expert CompanyMarkets S.A. E.S.P. to operate the National Interconnected System and administer the Wholesale Energy Market.

2005

Scheme for International Electricity Transactions –TIE– between Ecuador and Colombia becomes operational.

ISA wins in Bolivia bidding to construct and operate five substations and three energy transmission lines (604 km). Establishment of ISA Bolivia.

Participation in Empresa owner of Red –EPR– (1,830 km of transmission lines at 230 kV in Central America).

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Arrival to the Brazilian market with purchase of 50,1% of common shares of CTEEP through investment vehicle ISA Capital do Brasil Ltda.

Evolution of ISA

In association with Empresa de Energía de Bogotá, acquisition of 100% of share capital of Consorcio Transmantaro, a

Peruvian energy transmission company.

Consolidation of CTEEP ownership with 89,40% of common shares and 37,46%

of total capital of the company.

Internationalization of telecommunications business begins with establishment

of INTERNEXA Perú S.A.

The Board of Directors formalizes public offer of common stock (56 million

shares through book building).

2006

2008

2007 2009

Adoption of new corporate visual identity in accordance with the business strategy (linear infrastructure systems).

CTEEP is awarded concession of Porto Velho - Araraquara 2 transmission line (2.375 km and 600 kV).

ISA ADRs are quoted on international electronic platform OTCQX.

INTERNEXA purchased 90% of shares of Comunicaciones Intermedias S.A., thus holding title to fiber optics networks and nodes connecting important Chilean cities.

Interconexión Eléctrica Colombia – Panamá S.A. –ICP– starts activities in Panama City,in association with ETESA S.A., seeking to make possible bi-national power integration.

The Board of Directors forma-lizes public offer of common stock (32 million shares through book building).

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The State, represented by INCO, and ISA subscribe contract to develop the Autopistas de la Montaña project. ISA shall conduct studies and develop four road corridors about 1.000 km long.

Subscription of incorporation deed of DERIVEX S.A., a subsidiary of XM and the Colombian Stock Exchange that administers the energy-commodities derivatives market.

Formalization with Cintra Infraestructuras S.A., Ferrovial’s highway subsidiary, of sale document to acquire 60% of Cintra Chile Ltda., a company controlling five highway concessions in that country.

INTERNEXA purchases tele-communications connectivity infrastructure in Brazil and Argentina (6.000 km of fiber optics network).

XM and ISA incorporate Sistemas Inteligentes en Red S.A.S. to carry out activities related to management, operation and administration of a mobility management center for Medellin City.

ISA purchases remaining 40% of INTERVIAL CHILE.

INTERNEXA developed a strategy that will permit it to become the distribution leader in Latin America of relevant digital content.

2010

2011

Evolution of ISA

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ISA arrives to the Chilean electric energy transport market after winning three

projects totaling 743 km of 500 kV double-circuit lines. Incorporation of INTERCHILE

2012

2013

Evolution of ISA

ISA won a new bid in Peru to design, finance, build, operate and maintain the Mantaro – Marcona – Socabaya – Montalvo transmission line at 500 kV (920 km) and its associated substations, the largest concession ProInversión had granted to this date. This project will be executed by Transmantaro.

In Chile, ISA was awarded a new public international bid to design, finance, build, operate and maintain the Encuentro – Lagunas project at 220 kV (174 km), which will strengthen the Chilean power system in the country’s North improving service quality and reliability. The new project will be undertaken by INTERCHILE.

As part of its expansion strategy to complement its value offer and expand its customer portfolio, INTERNEXA S.A., a subsidiary of ISA, acquired an information transport network company currently operatingin the State of Rio de Janeiro, Brazil. The transaction totaled BRL 190 million.

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Evolution of ISA

2013

ISA and its new role

ISA started in 2013 a Strategic Update process which separated the corporate strategic issues in one parent company, –ISA–, and those related to operation and maintenance in one subsidiary –INTERCOLOMBIA– that will be engaged in energy transport in the country.

ISA, as corporate center, will focus on the functions of guiding the group’s actions, profitably administering the portfolio of growth opportunities, defining the big corporate choices,providing competitive guidance to the companies, and establishing the action framework that will characterize the management and practices to be applied in relevant processes.

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INTERCOLOMBIA, ISA’s new subsidiary, started commercial operations on January 1st.

ISA, leader in pollutant emissions compensation. ISA received the CarbonNeutral Certification for having compen-sa-ted its emission of greenhouse gases during 2012 through bonds purchase to South Pole Carbon, a world leader in carbon compensation. By compensating its carbon footprint in the energy trans-port business, ISA assumes a new environmental and social commitment.

ISA wins in Peru a new public bidding to design, finance, construct, operate and maintain a 16.9 km transmission line at 220 kV to be executed by Consorcio Transmantaro –CTM–.

Fitch Ratings rating agency upheld the AAA (col) rating for ISA’s bond program and the F1+ (col) rating for commer-cial papers. Additionally, Fitch Ratings International upheld the international corporate BBB rating for local and foreign currency. Outlook for all ratings remained Stable.

ISA won public bidding opened by UPME for the design, procurement, construction, operation and maintenance of the connection of the Reforma substation to the Guavio – Tunal 230 kV circuit, approximately 1 km in length.

UPME awarded ISA, subject to revision by CREG, the project for the design, procurement, construction and maintenance of the Montería Substation at 230 kV and its associated trans-mission lines (195 km approx.) with connection of existing Chinú and Urabá substations.

REP successfully placed corporate bonds for USD 20 million in the Peruvian capital market.

ISA’s company REP inaugurated an energy transmission mega work in Peru. The 325 km Trujillo-Chiclayo transmission line at 500 kV was executed by Consorcio Transmantaro.

Moody’s Investors Service improved from Baa3 to Baa2 ISA’s issuer ratings. Simultaneously, Moody’s increased ISA’s basis for credit assessment –BCA– from Baa3 to Baa2. Outlook is stable.

ISA won in Lima a new public bidding that will gene-rate USD 5.7 million annual revenue. It comprises a 90.5 km electric line at 220 kV and a new substation at 220/60 kV. Consorcio Transmantaro –CTM– will execute the project.

2014

Evolution of ISA

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Presence in8 countries

4 business units

33 subsidiaries and affiliates

3.821 employees

29.000 kmof fiber opticsin operation

Operation coordinationof 24.457 km

of transmission lines

Mobility control forMedellín and

its five townships

907 kmof road

infrastructurein operation

About Us

41.185 km of high-voltagegrid in operation

6.689 km underconstruction

Transformation inoperation: 76.407 MVA

Transformation underconstruction: 16.070 MVA

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Business units and companiesISA in Latin America

ELECTRIC ENERGY TRANSPORT

TELECOMMUNICATIONS TRANSPORT

ROAD CONCESSIONS

SMART MANAGEMENT OF REAL TIME SYSTEMS

INVESTMENT VEHICLE

ECONOMIC GROUP

Internexa

EPR, ISA’s investment (11,11%)Interconexión Eléctrica Colombia - Panamá,ISA investment (50%)REDCA, ISA’s investment (11,11%) through INTERNEXASistemas Inteligentes en Red

INTERCOLOMBIAISA

TRANSELCAINTERNEXA

XM

Derivex, 49,95% investmentthrough XM and 0,025%

through INTERNEXA

IEMGCTEEP

PINHEIROSSERRA DO JAPIEVRECYINTERNEXANQTIPNETISA Capital do BrasilINTERNEXA Participações

INTERCHILEINTERNEXA

INTERVIAL CHILERuta del MaipoRuta del Maule

Ruta del BosqueRuta de la Araucanía

Ruta de los RíosISA Inversiones Chile

ISA Inversiones Maule

ISA BoliviaProyectos de

Infraestructura del PerúINTERNEXA

REPTransmantaro

ISA Perú

TRANSNEXA,5% investment through

INTERNEXAand 45% through INTERNEXA (Perú)

COLOMBIA

ARGENTINA

CENTRAL AMERICA

BOLIVIA

BRAZIL

PERU

ECUADOR

CHILE

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Our shareholders

Investors

State investors 682.078.108 61,58 The State 569.472.561 51,41 EPM 112.605.547 10,17

State and private capital investors 77.373.530 6,99 ECOPETROL S.A. 58.925.480 5,32 Empresa de Energía de Bogotá 18.448.050 1,67

Private investors 348.226.256 31,44 Institutional investors 207.425.511 18,73 Individuals 67.884.572 6,13 Legal entities 12.988.430 1,17 Foreign Investment Funds 58.872.193 5,31 ISA ADR Program 1.055.550 0,10

Outstanding subscribed and paid share capital 1.107.677.894 100,00%

Number of sharesJune 30, 2014

%

Shareholding as on June 30, 2014

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Interligação Elétrica do Madeira S.A. –IEMADEIRA–

Furnas Centrais Elétricas S.A –Furnas 24,50% Companhia Hidro Elétrica do São Francisco –CHESF 24,50%

Interligação Elétrica Garanhuns S.A. –IEGARANHUNS–

Companhia Hidro Elétrica do São Francisco – CHESF 49,00%

Our Partners In the Electric Energy Transport companies

ISA Capital do Brasil S.A. (investment vehicle)

Banco HSBC 17,21%Banco Votorantim 17,21%

CTEEPSão Paulo Secretaria da Fazenda 6,12% Centrais El Bras SA Eletrobras 35,23%Vinci Equities Gestora deRecursos Ltda 3,80%

Brazil

Peru Colombia Central America

Panama

Interligação Elétrica Sul S.A. –IESUL–

CYMI Holding 49,90%

Interligação Elétrica Norte e Nordeste S.A. –IENNE–

CYMI Holding 25,00% ISOLUX Energía 50,00%

REP y TransmantaroEEB 40%

Interconexión Eléctrica Colombia – Panamá S.A.S

ETESA 50%

EPR INDE of Guatemala 11,11% CEL and ETESAL of El Salvador 11,11% ENEE of Honduras 11,11% ENATREL of Nicaragua 11,11% ICE of Costa Rica 11,11% ETESA of Panamá 11,11% ENDESA Latinoamérica of España 11,11%

CFE of México 11,11%

Interconexión EléctricaColombia - Panamá –ICP–

ETESA 50%

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Distribution of average payroll

5,8%XM and

subordinatecompany

TRANSELCA

9,9%REP

41,0%CTEEP andaffiliates

4,4%ISA

13,9%INTERCOLOMBIA

9,3%INTERVIAL CHILE

and concessionaires

7,5%INTERNEXA and

subordinatecompanies

0,5%

5,0%

INTERCHILE

0,9%

1,9%

ISA Bolivia

PDI Perú

August, 2014

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Integrated Management System –SIG–

Business Units

Electric Energy Transport

(1)

*

(1)

*

(1) (1)

ISA

INTERCOLOMBIA

CTEEP

REP

TRANSELCA

ISA Bolivia

PDI

Companies ISO9001

ISO27001

* As on June 2014 (1) “Construction of Infrastructure Projects” process pending

Conventions: Certified Under process

ISO14001

OHSAS18001

Toll-Road Concessions

Real-Time Systems Smart Management

INTERNEXA

INTERVIALCHILE

XM

Telecommunications Transport

Certifications*

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Strategic Risks Financial Legal and regulatory Reputational Human capital Breach of contract Governance Growth

Environmental Risks Natural phenomenaSocio-political

Operating Risks Human andprocedural errors Equipment faults and failures Road infrastructure failures TIC unavailability Fraud Environmental Land and easement management

Comprehensive Risk Management

Risk map of ISA and its companies

ISA and its companies identify, evaluate, manage and disclose the main risks they are exposed to

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Corporate Social Responsibility Commitments to the stakeholders

Associates: Contributing to their integral development

and valuing their contribution to

the organization.

Suppliers: Transparency,

equity and clear rules.

State: Respect and promote

the rule of law.

Society: Respect for human rights, efficiency and quality of services, timely disclosure

of public-interest information, and contribution to

sustainable developmentand social well-being.

Customers: Sustainable relation, competitive quality

and costs, and reliable communication.

Shareholders: Profitable growth and

creation of value.

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Good Corporate Governance

Good Governance Practices

Boards of Directors and Administration Councils abide by local regulations and comply with the propor-tion for independent members prescribed by capital market regulations.

Periodic scheduling of meetings of Boards of Directors and Administration Councils: mechanisms for reporting and accountability.

Strict and transparent compliance with obligations to society and its government.

Respect for the rights of minority shareholders and creditors.

Disclosure, awareness and interiorization of the corporate framework: mission, vision, values, code of ethics, policies, guidelines, corporate guides, Good Governance Code, etc.

Express definition of how to handle conflicts of interest.

Parent Company focused on exercising its functions: organization engaged in directing and advising its companies, and ensuring addition of value from and towards them.

Parent-company organizational structure: mechanism that promotes agility, flexibility, exchange of knowledge, capture of synergies and scale economies.

Corporate-scope committees: mechanisms that comprehensively ensure alignment, strategic coherence and exchange of good practices between the parent company and its companies.

Guidelines for achieving unit of purpose and direction permitting optimal use of resources to contribute to efficiency and profitability.

Corporate Governance Management Governance

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ISA has as its mission the highly efficient development and operation of linear infrastructure systems where it has differential capacities and advantages based on the advancement of its human talent and innovation capacity to create value for its shareholders and other stakeholders and contribute to the sustainable develop-ment of the societies where it is present.

In the year 2020, ISA will have tripled its earnings by capturing the most profitable growth opportunities in its current business areas in Latin America, promoting operational efficiency and optimizing its business portfolio.

ISA’s profitability will be higher than the cost of its equity, a trend sustainable along time.

In the Energy Transport Business Unit, ISA will remain as the operator with the largest presence in Latin America, will consolidate its position in the region and will reach levels of operational efficiency that are consistent with worldwide best practices.

In the Road Concessions Business Unit, ISA will seize regional opportunities, focusing on Colombia.

In the Telecommunications Transport Business Unit, ISA will consolidate its leadership as an independent transporter in Latin America and will have developed an IP ecosystem in the region.

ISA will expand its Real-Time Systems Smart Management towards new services, accessing highly profitable new opportunities in other business areas.

Strategic direction

Mission Strategic pivots

VisionCapture of growth opportunities with superior profitability.

Improvement of current and

core business profitability.

Dynamic adjustment of geography and business portfolio.

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Business Unit

EnergyTransport

Toll-RoadConcessions

Revenue* EBITDA* Assets* Description

ISA, through its companies, operates and maintains its electric energy network with high levels of availability, reliability and quality. The business unit’s management is supported on strict and outstanding processes, safe to people, and both environmentally balanced and socially responsible.

ISA structures, designs, constructs, operates, main-tains, and exploits urban and interurban roads in markets where it can be relevant. Operation and main-tenance are performed according to standards previously established by the business regulators in each of the countries where ISA is present and are based on processes that guarantee operational excellence and safety for users.

USD 1.270 USD 666 USD 8.283

USD 477 USD 362 USD 4.513

*Figures in millions of US Dollars. December, 2013.

Business Units

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Telecommunications Transport

Real-Time Systems Smart Management

The participation of ISA in this business is materialized through INTERNEXA, the carrier’s carrier with the continent’s largest land continuous network. INTERNEXA has developed a strategy that will permit it to be-come the distribution leader in Latin America of relevant digital content. Accordingly, INTERNEXA has consolidated as a unique provider that allows access to the most sought-after contents by Latin American users in a direct and integrated manner.

The power sector relies on the operation of the National In-terconnected System and administration of the Energy Mar-ket in Colombia, including international electricity transactions with Ecuador. In the Traffic and Transport sector, the Medellin Mobility Management Center is operated under alliance be-tween UNE EPM Telecomunicaciones, the ITS Medellín consor- tium and XM. In the financial sector, together with the Colombian Stock Exchange, ISA participates in DERIVEX, the company that administers the energy-commodities derivatives market.

USD 45 USD 3 USD 133

USD 77 USD 14 USD 340

*Figures in millions of US Dollars. December, 2013.

Business Units Business Unit Revenue* EBITDA* Assets* Description

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Electric infrastructure projects under construction

Colombia:395 km of circuits

2.745 MVA of transformation

USD 285 million Brazil:

938 km of circuits 8.200 MVA of

transformation

USD 850 million

Chile:1.795 km of circuits

USD 1.000 million

Central America:Partner in EPR

(11,11%)

36 km of circuits

Peru:1.680 km of circuits

1.975 MVA oftransformation

USD 625 million

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Consolidated financial figures

Consolidated income statement at June 2014

Million ofUS Dollars*

Revenue Operating costs and expenses EBITDA EBITDA MarginNet IncomeNet Margin

Revenue by country Brazil Colombia Peru Chile Bolivia Argentina

EBITDA by country Brazil Colombia Peru Chile Bolivia Argentina

Market Representative Rate 30/06/2014 (1.881.19)

966.70 495.57 157.23 576.12

59,60%16,26%

212

221220393119

09

76163237

91

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Consolidated balance sheet at June 2014

Million ofUS Dollars*

Assets 13.527

Liabilities 7.530

Equity 2.073

Minority interest 3.924 Assets by country Argentina 6

Bolivia 59

Brazil 3.506

Chile 4.341

Colombia 4.076

Peru 1.539

Market Representative Rate 30/06/2014 (1.881.19)

Consolidated financial figures

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4.369

2011

Revenue

COP 1.000.000 million

2012 2013

4.303

3.601

3.027 2.903

2.012

1.029 0.9650.5700.337 0.4330.273

EBITDA Net incomeIncome before minority interest

Growth

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Access to financial markets Financing alternatives

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

ISA’s Public Listing, sale

No. of shares 2001- 115 mm2002- 120 mm

Filing of Level I ADR

NY OTC Market

Stock

Issuance of common shares

No. shares 56 mm

Issuanceof common

shares No. of shares 32 mm

International Project Finance

ISA Peru (USD 40.5

mm)

ISA Bolivia (USD 54 mm)

ISA Bolivia (USD 7 mm)

2012 2013 2014

Bonds and Promissory Notes

Colombia: ISA and Transelca

Peru: REP and CTM

Brazil: CTEEP and Subsidiaries

ISA Capital144A Reg/S USD 554 M

ISA Capital TenderOfferUSD

522.3 M

CTM 144A Reg/S

USD 450 M

Hedgingoperations

ISA SWAP USD 44.3 MUSD 36.5 MUSD 50.1 M

ISACommodities

Raw materials

CTEEPSWAPBRL

101 M -151 M

REPSWAP

PEN 104-77 USD

40-30M

Syndicated and Subordinated Loans

ISA (CTEEP)(USD 550 mm)(USD 148 mm)

TRANS-MANTARO

USD 100 mmUSD 60 mm

RIOSUSD

220 mm

TRANS-MANTARO

USD 90 mm

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Credit risk ratings

(*) Rating for bonds issued in each country.

ISA BBB (Stable)Jul. 2013

Baa3 (Stable) Dec. 2013

Baa3 (Stable) Investment grade

Apr. 2014

BBB- (Stable) Apr. 2014

BBB (Stable) May. 2014

F1+May. 2014

AAA (Stable) May. 2014

AAA (Stable) Apr. 2014

AA+ (Stable) Aug. 2013

AA+ (Stable) Aug. 2013

A- (Stable) Dec. 2013

BB+ (Stable) Aug. 2013

AA - (Stable) Aug. 2013

BBB- (Stable) Aug. 2013

BBB- (Stable) Apr. 2013

Baa3 (Stable) May. 2014

A (Stable) Jun. 2014

AAA (Stable) Abr. 2014

AAA (Stable) APr. 2014

A (Stable) Jun. 2014

A (Stable) Jun. 2014

BB+ (Stable) Jun.2014

BBB- (Stable) Jun.2014

Baa2 (Stable) May. 2014

Baa3 (Stable) Dec. 2013

TRANSELCA

CTEEP

REP

Ruta del MAIPO

Ruta del MAULE

Ruta del BOSQUE

TRANSMANTARO

ISA CAPITAL DO BRASIL

S&PCOMPANY RATINGTYPE

Corporate

Corporate

Corporate

Domestic Bond Issues

Commercial papers

Domestic Bond Issues

National rating

International Bond Issues

Bond Issues

International Bond Issues

Bond Issues

Bond Issues

Bond Issues

Bond Issues

MOODY´S FITCH FELLER-RATE EQUILIBRIUMAPOYO Y ASOCIADOS

PACIFICCREDIT RATING

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Behavior of the stock in the market

Stockmarket indices YTD At June of 2014

Market Capitalization

Market capitalization (COP MM) Market capitalization (COP USD)

10.157.406

5.386

ISA’s MarketCapitalization

At the end of JuneISA had 39.384

shareholders

9th position

MarchHIGH

ISA

Stock quote

ISA 9.100 9.170 2.898 $9.600 $7.330

2013 closing date dec-30

Closing date June, 2014

Minimum quote for 2014

Daily averagemillions

Maximum quotefor 2014

May 23, 2014

Minimum quotefor 2014

February 20,2014

ISA (0,2%) COLCAP (5,4%)

S&P (7,6%)MSCI EM Latin America (10,6%)

15%

10%

5%

0%

-5%

-10%

-15%

-20%

-25%

Valu

atio

n%

31-Dec 30-Jan 1-Mar 31-Mar 30-Apr 30-May 29-Jun

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ISA Accolades

The National General Auditing Office ranks ISA as “Exemplary Company” for having the best Internal Control System.

ISA is recognized by Colombia’s Junior Chamber as the company with best social projection.

Honorable Mention in the ANDESCO Award to Corporate Social Responsibility.

The Ministry of Environment

awards ISA the National

EnvironmentalAward.

The Presidency of the Republic and the Ministry of Economic Development grant ISA the Colombian Award forManagement Quality.

ISA is ranked by the Great Place to Work Institute

Colombia as best company to work for among

State entities.

ANALDEX and Proexport honor ISA and CREG with the

Exports National Award, Export Project category, for their

work in the International Electricity Transactions –TIE–.

1990

2002

1998

2006

2003

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ISA Accolades

ISA was honored with the ANDESCO Corporate Social Responsibility Award for best company, and for best social performance for its ISA-Region program.

Along the Latin American Investor Relations Awards, ISA won first place in the “Best Investors Website” category and third place in the “Best Annual Report for Investors” and “Best Disclosure of Financial Results” categories.

ISA was honored with the ANDESCO

Corporate Social Responsibility Award

for its social performance and

corporategovernance.

2009

2012

2011 2013

The Colombian Stock Exchange –BVC– recognized ISA as the company with the longest term for bond underwriting.

ISA improved by 2 points, from 92 to 94, out of 100, corresponding to low risk, its score in the survey of transparency policies and mechanisms for public utilities conducted by Corporación Transparencia por Colombia.

The Colombian Stock Exchange delivered ISA the “IR Recognition”, an initiative that while ratifying the commitment of the company to the market, implies its increased commitment to a management style based on best practices.

ISA’s Antifraud Code was recognized in the Fourth Round of Good Corporate Transparency Practices, an event led by Corporación Transparencia por Colombia. This good practice adopted by the corporation since 2011, formalizes the strategic will of ISA and its Latin American companies regarding fraud.

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Corporate Good Governance Index of the Lima Stock Exchange, an award that symbolizes trust on and recognition to the company in good governance principles.

REP Accolades

Good Corporate Governance Contest – Best Conduct towards Internal and External Environment.

Recognition for Corporate Ethics and Leadership.

National Quality Award.

Social and Environmental

Management CACIER.

Award to its commitment to education.

The company obtained the ABE Seal from Asociación

de Buenos Empleadores, sponsored by the American

Chamber of Commerce in Peru, which recognizes

companies that stand out for their labor practices.

Distinction as socially

responsible company.

2006

2009

2007

2012

2011 2013

Leading Company in Management Excellence, Gold Category.

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CTEEP Accolades

Quality Award (APIMEC/SP).

Abrasca Criação de Valor – Destaque Setorial

Category: Best model for creation of value for

shareholders of power sector companies.

2008

2009

“Selo Assiduidade APIMEC Ouro 11 Años 2012” of Asociación de Analistas y Profesionales de Inversión del Mercado de Capitales de Brasil –APIMEC–.

2012

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INTERNEXA Accolades

XM Accolades

This company was honored with the ANDESCO award to Corporate Social Responsibility, Best Small Utilities and Telecommunications Company category.

2012

2013

For third year in a row, the company was named by Metro Ethernet Forum as “Best Regional Service Provider of the Year” and “Best Wholesale Ethernet Service Provider”.

2013

Metro Ethernet Forum –MEF– awarded INTERNEXA the MEF 2012 awards in three categories: best carrier ethernet business application, best wholesale ethernet service y regional service provider of the year.

Capacity Media honored INTERNEXA with the “Capacity Awards 2012 – Best Latin America Wholesale Carrier”, a category recognizing the best carriers’ carrier in the region.

All rights reserved Interconéxión Eléctrica S.A E.S.P 35

Electric Infrastructure

CENTRAL AMERICA

COLOMBIA

CHILE

BOLIVIA

PERU

Guate NorteGuate Este

El Cajón

Parrita

PalmarNorte

Veladero

Santa Marta

TermocolEl Bosque

TalaraPiura

Chiclayo

TrujilloTocache

PomacochaCarhuamayo

Machu PicchuAbancay

Cotaruse

Zapallal

Santivañez

CarrascoArboleda

Urubó

Punutuma

Sucre

LagunasEncuentro

Mantaro

Marcona

SocabayaMontalvo

Jandira

Curitiba

Neves 1Araraquara

MesquitaGov Valadares Mascarenhas

El SaltoItapeti

Scharlau

N.S. Rita

Joinville NorteJorge Lacerda B

Sideropolis

Porto VelhoColina

São Joãodo Piaui

Panamá

Sogamoso

Garanhuns

CardonesMaitencillo

Pan de Azúcar

Polpaico

BRAZIL

Country Company Operational circuit km

Colombia: ISA 10.369 TRANSELCA 1.586Peru: REP 6.230 Transmantaro 2.795 ISA Perú 393Bolivia: ISA Bolivia 587Brazil: CTEEP 18.893 IEMG 172 PINHEIROS 6 EVRECY 154 Total 41.185

Country Company Transformation MVA

Colombia: ISA 12.620 TRANSELCA 3.848Peru: REP 2.747 Transmantaro 4.925 ISA Perú 235Bolivia: ISA Bolivia 370Brazil: CTEEP 45.712 PINHEIROS 3.900 SERRA DO JAPI 1.600 EVRECY 450 Total 76.407

TRANSMISSION LINES IN OPERATION

TRANSMISSION LINES UNDER EXECUTION

TRANSMISSION LINES UNDER STUDY

INTERNATIONAL INTERCONNECTION

All rights reserved Interconéxión Eléctrica S.A E.S.P 36

Road Infrastructure

Country Concessions Road km in operation

Chile: Ruta del Maipo 237 Ruta del Maule 193 Ruta del Bosque 161 Ruta de la Araucanía 144 Ruta de los Ríos 172

Total: 907

CHILE

SANTIAGOTalca

ChillánCollipulliTemuco

Río Bueno

ROAD INFRASTRUCTUREIN OPERATION

SANTIAGOTalca

ChillánCollipulliTemuco

Río Bueno

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Connectivity Infrastructure for Telecommunications

ACTUAL NETWORK

FUTURE NETWORK

UNDERSEA CABLE

Country Company Optic fiber km In operacion

Colombia INTERNEXA 6.680Peru INTERNEXA 4.674Chile INTERNEXA 2.377Brazil INTERNEXA 6.811Argentina Internexa 2.577Ecuador TRANSNEXA 2.413Venezuela In association with local operator 1.977Central America 1.800

Total 29.309

Ecuador

Brazil

Colombia

Argentina

Chile

Peru

Venezuela

Caracas

Miami

Bogotá

Lima

Quito

Buenos AiresSantiago

Gran Sao Paulo

Central america

Río de Janeiro

Campos

Macaé

Magé

São Gonçalo

Itaboraí Río das Ostras

Duquede Caixas

Sâo Pedro da AldeiaCabo Frio

Araruama

Petrópolis

Teresópolis

Friburgo

Macabú

Saquarema

Maricá

Niteroi

Río de Janeiro

E-mail

Contact Investor Relations

[email protected]

Web page www.isa.co

Twiter @ISA Avanza