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INSTITUTIONAL PRESENTATION 4 Q 1 9 | R E S U L T S A ISA Viso - PowerPoint PPT Presentation

INSTITUTIONAL PRESENTATION 4 Q 1 9 | R E S U L T S A ISA Viso geral CTEEP ISA CTEEP in the Transmission Sector Sustainable Value Financial Highlights WHY INVEST IN ISA CTEEP Strong Cash Growth Generation Opportunities in


  1. INSTITUTIONAL PRESENTATION 4 Q 1 9 | R E S U L T S

  2. A ISA Visão geral CTEEP ISA CTEEP in the Transmission Sector Sustainable Value Financial Highlights

  3. WHY INVEST IN ISA CTEEP Strong Cash Growth Generation Opportunities in retrofitting, greenfield No demand risk projects and M&A and low default risk Profitability Dividends Sustainable value creation Minimum payout of 75% (regulatory net income) Investment Grade Fitch: AAA(bra) Benchmark Reference Company in Valuation quality and O&M Valuation atrativo

  4. WHY INVEST IN ISA CTEEP Growth with sustainable New energy businesses value creation ▪ ▪ Auctions / M&A Basic network access – “ Conexão ▪ Plus” Retrofitting Projects ▪ Real Estate Social and Operational excellence Management of existing environmental impact and efficiency assets ▪ Biodiversity conservation and ▪ Tariff Reset ▪ Digitalization climate change mitigation ▪ RBSE (financial ▪ Asset Renewal program - 1 st Jaguar component Connection Project in Brazil remuneration) ▪ Law 4819 / SEFAZ

  5. ISA CTEEP IE Garanhuns 51% Revenue 2019/2020 cycle BRL 2,579 million Revenue² 2019/2020 cycle R$ 46 million IE Pinheiros 100% IENNE 100% Largest publicy traded pure transmission Revenue 2019/2020 cycle BRL 57 million utility in Brazil Revenue 2019/2020 cycle BRL 46 million IE Serra do Japi 100% ▪ Transmission of 33% of Brazil’s energy Revenue 2019/2020 cycle BRL 58 million IE Madeira IEMG 51% 100% generation and 94% of the energy in IE Itapura Bauru the State of São Paulo 100% Revenue² 2019/2020 cycle BRL 260 million Revenue 2019/2020 cycle BRL 19 million Revenue 2019/2020 cycle BRL 12 million ▪ Benchmark player in costs and quality ▪ Capacity in operation¹ Evrecy 18.6 thousand km of transmission ▪ 100% lines Revenue 2019/2020 cycle BRL 10 million 65.9 thousand MVA of transformation ▪ capicity 126 substations ▪ ▪ ISA CTEEP Revenue 2019/2020 cycle : BRL 3.1 billion 2 IE Sul 100% Revenue 2019/2020 cycle BRL 18 million Nota: ¹ Considers the full capicity of IE Madeira and IE Garanhuns ² 2019/2020 Revenue Cycle proportional to ISA CTEEP’s participation

  6. IE Itaquerê 100% IE Paraguaçu 50% Revenue 2019/2020 cycle BRL 51 million Revenue² 2019/2020 cycle BRL 59 million IE Itapura Lorena 100% Revenue 2019/2020 cycle BRL 11 million Largest publicly traded pure transmission IE Ivaí utility in Brazil 50% IE Aguapeí 100% Revenue² 2019/2020 cycle BRL 147 million ▪ Growth with sustainable value creation Revenue 2019/2020 cycle BRL 59 million IE Tibagi 100% ▪ Construction capacity 100% Revenue 2019/2020 cycle BRL 25 million 7.6 thousand km of transmission lines ▪ IEMG 100% 1.7 thousand MVA of transformation ▪ Revenue auction BRL 33 million capacity IE Aimorés 50% ▪ Organic growth¹: CapEx of BRL180 Revenue² 2019/2020 cycle BRL 40 million million/year with Revenue of BRL50 million/year IE Itaúnas 100% ▪ Greenfield projects: ANEEL capex BRL5 Revenue 2019/2020 cycle BRL 52 million billion with Revenue 2019/2020 cycle of BRL567 million IE Biguaçú 100% Revenue 2019/2020 cycle BRL 40 million Evrecy Nota: 100% ¹ Last 5 years average ² Considers 2019/2020 Revenue Revenue auction BRL 38 million Cycle adjusted to ISA CTEEP’s participation

  7. A successful story of growth, resilience and performance Winner bid for 5 lots in April auction Winner bid for Extension of Main 2 lots in June ISA acquires Concession Contract CESP spin off auction CTEEP and (059/2001) for 30 years creates becomes the Transmissão controlling Paulista shareholder Set up of RBSE IE Itapura compensation (Bauru) startup ( Ordinance 120 and winner bid Expansion to 17 Transmissão Ministry of Mining for 3 lots in Brazilian states through Paulista and Energy December greenfield projects and merger with auction acquisitions EPTE Winner bid for 3 lots in October auction 1999 2001 2006 2007 2012 2013 2016 2017 2018 2019 ‘000 km¹ of 17.7 transmission lines 15.4 18.6 12.3 18.6 18.6 11.5 Consolidated regulatory EBITDA 1.6 1.1 2.3 2.5 ICVM 527 in 0.7 0.7 0.2 1.6 0.1 BRL billion Note: ¹ Information considers 100% of the projects

  8. Shareholder Structure on 12/31/2019 ▪ Tickers: TRPL3¹ and TRPL4² ▪ Corporate Governance: Level 1 at B3 ▪ Average daily volume in 2019: Common shares: 257,937,732 Preferred shares: 400,945,572 BRL 34 million Total: 658,883,304 ▪ Market cap³: BRL 16 billion 35.8% 64.2% ▪ Distribution of capital: ISA CTEEP ISA Free Float 51% of foreign investors 49% of Brazilian investors Common shares: 89.5% Common shares: 10.5% Preferred shares: 1.3% Preferred shares: 98.7% CONTROLLED BY ISA ▪ ADRs: “CTPTY” e “CTPZY” FREE FLOAT OF 64% ▪ Coverage of 14 institutions : 50% Hold 36% 28% 36% Sell Eletrobras Others 14% Buy Common shares: 0.7% Common shares: 9.7% Preferred shares: 45.8% Preferred shares: 53% Notes: ¹ Common share l ² Preferred share l ³On 12/31/2019

  9. ISA A multilatina company recognized for INTERCONEXIÓN ELÉCTRICA, ▪ Largest high-tension electric the excellence of its operations S.A.E.S.P . transmission network in Latin America Operational: Colombia ▪ 46,374 km of transmission lines América 70% of participation in the Central ▪ 92,600 MVA in power capacity Transmission market in 2019 Under construction : ▪ 7,431 km of transmission lines ▪ 15,482 MVA in power capacity ▪ Businesses in: Peru Brasil 70% of participation in ▪ Energy transmission the Transmission 20% of participation ▪ Highway concessions market in 2019 in the Transmission market in 2019 ▪ Information Technology/Telecom Chile ▪ Controlled by the Colombian 12% of participation in the Transmission market government (51% of shares) in 2019 Bolivia ▪ Market cap: USD 6 billion¹ Argentina Solid Presence in Latin America: 7 countries , 3 sectors , 43 companies Note: ¹On 12/31/2019

  10. ISA CTEEP and its subsidiaries Assured CORPORATE Annual Revenue (RAP) 2019/2020 Cycle of STRUCTURE BRL 3.7 billion RAP Cycle RAP ISA CTEEP Location Profit Regime² Share (%) Consolidation Cycle 2019/2020 2019/2020¹ (BRL million) (BRL million) ISA CTEEP Operational São Paulo 2,579 2,579 Real Profit ISA CTEEP 100% Fully consolidated IE Madeira Operational Rondônia / SP 511 260 Real Profit ISA CTEEP 51% / Furnas 24,5% / Chesf 24,5% Equity method IE Ivaí Under construction Paraná 294 147 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Paraguaçu Under construction Bahia / MG 118 59 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Garanhuns Operational Pernambuco 91 46 Real Profit ISA CTEEP 51% / Chesf 49% Equity method IE Aimorés Under construction Minas Gerais 79 40 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Aguapeí Under construction São Paulo 59 59 Presumed Profit ISA CTEEP 100% Fully consolidated IE Serra do Japi Operational São Paulo 58 58 Presumed Profit ISA CTEEP 100% Fully consolidated IE Pinheiros Operational São Paulo 57 57 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itaúnas Under construction Espírito Santo 52 52 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itaquerê Under construction São Paulo 51 51 Presumed Profit ISA CTEEP 100% Fully consolidated IENNE Operational Tocantins 46 46 Presumed Profit ISA CTEEP 100% Fully consolidated IE Biguaçu Under construction Santa Catarina 40 40 Presumed Profit ISA CTEEP 100% Fully consolidated Minuano Under construction Rio Grande do Sul 38 38 Presumed Profit ISA CTEEP 100% Fully consolidated Triângulo Mineiro Under construction Minas Gerais 33 33 Presumed Profit ISA CTEEP 100% Fully consolidated IE Tibagi Under construction SP / Paraná 20 20 Presumed Profit ISA CTEEP 100% Fully consolidated IEMG Operational Minas Gerais 19 19 Presumed Profit ISA CTEEP 100% Fully consolidated IE Sul Operational Rio Grande do Sul 18 18 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Bauru Operational São Paulo 12 12 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Lorena Under construction São Paulo 11 11 Presumed Profit ISA CTEEP 100% Fully consolidated Evrecy Operational Espírito Santo 10 10 Presumed Profit ISA CTEEP 100% Fully consolidated Três Lagoas Under construction Mato Grosso do Sul / SP 5 5 Presumed Profit ISA CTEEP 100% Fully consolidated Total 4,203 3,662 1 2019/2020 cycle RAP with PA, net of PIS and COFINS 2 Presumed profit: presumed profit of 8% of operational revenue is calculated, with a 25% Income Tax rate on the presumed amount. CSLL presumes 12% on operational revenue, with 9% CSLL retained on presumed profit. Real Profit: 34% Income Tax and Social Security Contribution rates on real taxable profit

  11. Corporate Governance Structure Shareholders Ethics and Transparency recognized at ISA and at ISA CTEEP Board of Directors Fiscal Council level 8 effective members, of 5 effective members which 2 are independent and 5 substitute and one is elected by the members Experienced employees Management Human Resources Audit Committee Committee team focused on value creation CEO Rui Chammas 2019 Transparency COO Chief Project Officer CFO and IRO Institutional Relations Trophy from Officer Carlos Ribeiro ANEFAC Alessandro Gregori Filho Rui Chammas Carlos Ribeiro (interim) (interim)

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