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

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

WHY INVEST IN

ISA CTEEP

No demand risk and low default risk

Strong Cash Generation

Minimum payout

• f 75% (regulatory

net income)

Dividends

Reference Company in quality and O&M

Benchmark Valuation

Valuation atrativo Fitch: AAA(bra)

Investment Grade

Sustainable value creation

Profitability

Opportunities in retrofitting, greenfield projects and M&A

Growth

WHY INVEST IN

ISA CTEEP

Management of existing assets

▪ Tariff Reset ▪ RBSE (financial component remuneration) ▪ Law 4819 / SEFAZ ▪ Basic network access – “Conexão Plus” ▪ Real Estate ▪ Biodiversity conservation and climate change mitigation program - 1st Jaguar Connection Project in Brazil ▪ Digitalization ▪ Asset Renewal

Operational excellence and efficiency New energy businesses Social and environmental impact Growth with sustainable value creation

▪ Auctions / M&A ▪ Retrofitting Projects

51%

IE Madeira

Revenue² 2019/2020 cycle BRL 260 million

100%

IENNE

Revenue 2019/2020 cycle BRL 46 million

ISA CTEEP

Revenue 2019/2020 cycle BRL 2,579 million

IE Serra do Japi

100%

Revenue 2019/2020 cycle BRL 58 million

100%

IE Pinheiros

Revenue 2019/2020 cycle BRL 57 million

100%

Evrecy

Revenue 2019/2020 cycle BRL 10 million

100%

IE Sul

Revenue 2019/2020 cycle BRL 18 million

51%

IE Garanhuns

Revenue² 2019/2020 cycle R$ 46 million

100%

IEMG

Revenue 2019/2020 cycle BRL 19 million

Largest publicy traded pure transmission utility in Brazil

▪

Transmission of 33% of Brazil’s energy generation and 94% of the energy in the State of São Paulo

▪

Benchmark player in costs and quality

▪

Capacity in operation¹

▪ 18.6 thousand km of transmission lines ▪ 65.9 thousand MVA of transformation capicity ▪ 126 substations

▪

ISA CTEEP Revenue 2019/2020 cycle: BRL 3.1 billion2

Nota: ¹ Considers the full capicity of IE Madeira and IE Garanhuns ² 2019/2020 Revenue Cycle proportional to ISA CTEEP’s participation

IE Itapura Bauru

100%

Revenue 2019/2020 cycle BRL 12 million

100%

IE Itaúnas

Revenue2019/2020 cycle BRL 52 million

100%

IE Biguaçú

Revenue2019/2020 cycle BRL 40 million

50%

IE Paraguaçu

Revenue²2019/2020 cycle BRL 59 million

Largest publicly traded pure transmission utility in Brazil

▪

Growth with sustainable value creation

▪

Construction capacity

▪ 7.6 thousand km of transmission lines ▪ 1.7 thousand MVA of transformation capacity

▪

Organic growth¹: CapEx of BRL180 million/year with Revenue of BRL50 million/year

▪

Greenfield projects: ANEEL capex BRL5 billion with Revenue 2019/2020 cycle of BRL567 million

50%

IE Aimorés

Revenue²2019/2020 cycle BRL 40 million

50%

IE Ivaí

Revenue²2019/2020 cycle BRL 147 million

100%

IE Tibagi

Revenue2019/2020 cycle BRL 25 million

100%

IE Itapura Lorena

Revenue2019/2020 cycle BRL 11 million

100%

IE Aguapeí

100%

IE Itaquerê

Revenue2019/2020 cycle BRL 51 million Revenue2019/2020 cycle BRL 59 million Nota: ¹ Last 5 years average ² Considers 2019/2020 Revenue Cycle adjusted to ISA CTEEP’s participation

100%

IEMG

Revenue auction BRL 33 million

100% 100%

Evrecy

Revenue auction BRL 38 million

A successful story of growth, resilience and performance

1999 2013 2001 2012 2006 2007 2017 2016

‘000 km¹ of transmission lines Consolidated regulatory EBITDA ICVM 527 in BRL billion

Transmissão Paulista merger with EPTE CESP spin off creates Transmissão Paulista Set up of RBSE compensation (Ordinance 120 Ministry of Mining and Energy Winner bid for 3 lots in October auction Expansion to 17 Brazilian states through greenfield projects and acquisitions ISA acquires CTEEP and becomes the controlling shareholder Winner bid for 5 lots in April auction Extension of Main Concession Contract (059/2001) for 30 years

2018

Winner bid for 2 lots in June auction

2019

0.1 0.7 1.1 1.6 0.2 0.7 1.6 11.5 12.3 15.4 17.7 18.6 18.6 2.5 2.3 18.6

Note: ¹ Information considers 100% of the projects

IE Itapura (Bauru) startup and winner bid for 3 lots in December auction

▪ Tickers: TRPL3¹ and TRPL4² ▪ Corporate Governance: Level 1 at B3 ▪ Average daily volume in 2019:

BRL 34 million

▪ Market cap³: BRL 16 billion ▪ Distribution of capital:

51% of foreign investors 49% of Brazilian investors

▪ ADRs: “CTPTY” e “CTPZY” ▪ Coverage of 14 institutions :

Common shares: 89.5% Preferred shares: 1.3%

ISA 35.8%

Common shares: 10.5% Preferred shares: 98.7%

Free Float 64.2%

Common shares: 9.7% Preferred shares: 53%

Eletrobras 36%

Common shares: 0.7% Preferred shares: 45.8%

Others 28%

50% Hold 36% Sell 14% Buy

Common shares: 257,937,732 Preferred shares: 400,945,572 Total: 658,883,304

CONTROLLED BY ISA FREE FLOAT OF 64%

ISA CTEEP

Notes: ¹ Common share l ² Preferred share l ³On 12/31/2019

Shareholder Structure on 12/31/2019

Note: ¹On 12/31/2019

América Central Brasil

20% of participation in the Transmission market in 2019

Bolivia Argentina Peru

70% of participation in the Transmission market in 2019

Colombia

70% of participation in the Transmission market in 2019

Chile

12% of participation in the Transmission market in 2019

▪ Largest high-tension electric

transmission network in Latin America

INTERCONEXIÓN ELÉCTRICA, S.A.E.S.P .

A multilatina company recognized for the excellence of its operations Solid Presence in Latin America: 7 countries, 3 sectors, 43 companies

ISA

Operational:

▪ 46,374 km of transmission lines ▪ 92,600 MVA in power capacity

Under construction :

▪ 7,431 km of transmission lines ▪ 15,482 MVA in power capacity ▪ Businesses in: ▪ Energy transmission ▪ Highway concessions ▪ Information Technology/Telecom

▪ Controlled by the Colombian

government (51% of shares)

▪ Market cap: USD 6 billion¹

CORPORATE STRUCTURE

ISA CTEEP and its subsidiaries Assured Annual Revenue (RAP) 2019/2020 Cycle of BRL 3.7 billion

Social Security Contribution rates on real taxable profit RAP ISA CTEEP Cycle 2019/2020

(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 Consolidation Location RAP Cycle 2019/2020¹

(BRL million)

Share (%) Profit Regime²

Corporate Governance Structure

Human Resources Committee Audit Committee Fiscal Council

8 effective members, of which 2 are independent and one is elected by the employees 5 effective members and 5 substitute members

Board of Directors Rui Chammas CEO

Ethics and Transparency recognized at ISA and at ISA CTEEP level 2019 Transparency Trophy from ANEFAC Experienced Management team focused

• n value

creation

Shareholders CFO and IRO COO Institutional Relations Officer Alessandro Gregori Filho Carlos Ribeiro Carlos Ribeiro (interim) Chief Project Officer Rui Chammas (interim)

CONNECTIONS THAT CREATE VALUE THROUGH ACTIONS

▪ Forest projects that reduce the

impact of greenhouse gases

▪ Climate change mitigation ▪ Conservation of biodiversity in

jaguar’s habitat

JAGUAR CONNECTION:

▪ ~BRL 8 million in investments in 2019 ▪ Projects related to Youth Leadership, Local

Development, and the Environment

▪ Educational Focus

SOCIAL RESPONSIBILITY: Sponsorship with tax benefit

CONEXIONS THAT INSPIRE

C O N N E C T I O N S T O G E N E R A T E S U S T A I N A B L E V A L U E

Digitalization Real Estate Opportunities Energy Storage

Operational safety optimization with cost reduction through substation teleassistance and retrofitting

Ancillary Services “Conexão Plus”

NEW BUSINESSES EFFICIENCY

A ISA CTEEP no Setor de transmissão Sustainable Value Financial Highlights ISA CTEEP in the Transmission Sector A ISA CTEEP

T r ansm issio n R ev enues ¹ (2 0 1 9 /2 0 2 0 cycle)

36% 10% 7% 9% 34% 4%

TAESA Eletrobras Alupar ISA CTEEP State Grid Outros

Total: BRL 37 billion

IS THE PURE TRANSMISSION COMPANY IN THE SECTOR IN BRAZIL

Notes: ¹ Considers auctions held until December of 2018 | ² Interconnected National System| ³ National Electric Energy Agency | 4 National Operator of the Electric System

SIN² is composed of 135 thousand km of transmission lines and serves 98% of the market The transmission sector is regulated and monitored by ANEEL³ and coordinated and controlled by ONS4 Transmission companies are remunerated by the availability of its

• assets. There is no demand risk and

no default risk.

Source: ANEEL

Concessions prior to 1998 Concessions between 1999 and 2006 Concessions after November 2006

THE COMPANY’S MAIN IS IN

▪ Revenue (RAP) annually adjusted by

IPCA

▪ Contracts renewed in 2013

(Provisional Measure 579/2012)

▪ Tariff Reset every 5 years (O&M,

WACC and RAB¹)

▪ RAP annually adjusted by IGP-M ▪ 50% RAP reduction on the 16th year of

• peration

▪ No tariff reset ▪ Reset of reinforcements and improvements,

starting in July 2019 every 5 years

▪ RAP annually adjusted by IPCA ▪ 30-year-contract, with 3 tariff resets (cost of

debt applied at WACC)

▪ Reset of reinforcements and improvements

every 5 years RAP in

• peration:

70% RAP in

• peration:

1% RAP in

• peration:

14% RAP under construction: 15%

Note: ¹ Regulatory Asset Base

▪ Revenue (RAP) approved by ANEEL with periodic

tariff reset (“PTR”)

▪ RBSE

Receivables related to the non depreciated assets in operation in May/2000 (Contract 059/2001)

▪ O&M

Part of revenues that reimburses operational costs

• f concessionaires partially or fully. Defined in the

PTR process and annually adjusted by inflation

▪ New Investments (NI)

Organic growth with execution of authorized reinforcements and improvements

▪ Variable Parcel (PV)

Revenue reduction due to unavailability

▪ Adjustment Parcel (PA)

Compensates excess or deficit of revenues in the previews tariff cycle

Annual Costs of Electric Assets (CAAE) O&M Revenue (AOM)

Gross Investment x %O&M

+

Gross Investment x Depreciation Rate Net Investment x Regulatory WACC

ISA CTEEP

Annual Allowed Revenue (RAP) Breakdown

DEMAND DOES NOT IMPACT TRANSCO’S REVENUE

PV RBSE (CAAE) O&M (AOM) NI (CAAE e AOM) PA

PV

OTHERS¹

Note: ¹Other revenues consider bilateral and sharing contracts

ISA CTEEP in the Transmission Sector Estratégia e gestão Financial Highlights Sustainable Value A ISA CTEEP

P E S S O A S

Regulação Valor Justo Jurídico Gestão de Litígios Crescimento Disciplina de Capital Integração Subsidiárias Projetos Crescimento Orgânico Operação e Manutenção Eficiência, Qualidade, Segurança

REMUNERATION FROM ASSET AVAILABILITY

Note:

¹ Considers revenue proportional to ISA CTEEP’s participation in assets with partnerships

BRL 3,585 million RAP Composition

• f Contract

059

Contract 059 Subsidiaries in Operation Subsidiaries in Construction RBSE O&M New Investments

Assured Annual Revenue (RAP) - 2019/2020 Cycle¹

Focus in cost efficiency, service quality and

• perational safety to maximize results

0,0031% 0,0056% 0,0020% 0,0025% 0,007% 0,0010% 12,95 16,37 7,69 7,06 2,16 2,67 0,55 0,35 0,2 0,17 0,07 0,11

ISA CTEEP South Southeast/ Midwest SIN Northeast North

FREQ (times)

Equivalent Frequency of Interruption

DREQ (minutes)

Equivalent Duration of Interruption

ISA CTEEP South Southeast/ Midwest SIN Northeast North

IENS (%)

Index of Non-Supplied Energy

ISA CTEEP South Southeast/ Midwest SIN Northeast North e

December 2019 figures

OPERATIONAL ASSETS

▪ 18.6 thousand km of

transmission lines

▪ 65.9 thousand MVA of

power transformation capacity

▪ Revenue (RAP) of BRL3.1

million¹

Note:

¹ 2019/2020 RAP Cycle weighted by ISA CTEEP’s participation

IENNE (100%)

TL: 710 km Substation: none Revenue: BRL 46 million

IE Garanhuns (51%)

TL: 633 km Substation: 2,100 MVA Revenue¹: BRL 46 million

IE SUL (100%)

TL: 167 km Substation: 900 MVA Revenue: BRL 18 million

IE Madeira (51%)

TL: 2.4 thousand km Substation: 7.5 MVA Revenue¹: BRL 260 million

ISA CTEEP

LT: 14.3 thousand km Substation: 48,800 MVA RAP: R$ 2.6 billion

IE Serra do Japi (100%)

TL: 137 km Substation: 2,000 MVA Revenue: BRL 58 million

IEMG (100%)

TL: 173 km Substation: none Revenue: BRL 19 million

Evrecy (100%)

TL: 154 km Substation: 450 MVA Revenue: BRL 10 million

Substation Line Entrance Transmission Line (TL) In operation

IE Itapura – Bauru (100%)

1 Static Component (Bauru Substation) Revenue: BRL 12 million

IE Pinheiros (100%)

TL: 1 km Substation: 4,200 MVA Revenue: BRL 57 million

RBSE (BASIC NETWORK OF EXISTING SERVICE) CASH FLOW BOOSTS CASH GENERATION FOR THE NEXT YEARS

▪ RBSE: receivables related to the non

depreciated assets in operation in May/2000

▪ April of 2017 injunction determined

temporary exclusion of Ke

▪ In November / 19, the judiciary

dismissed some lawsuits, which led to the exclusion of Ke from the financial component, consequently the respective injunctions were no longer effective.

▪ In October of 2019 Bill 4,636/19 was

approved in the House of Mines and Energy Commission, that proposes the exchange of Ke to WACC. This Bill is in discussion at the Finance and Taxation Committee (CFT) and will later follow to the CCJC and then to the Senate

Note:

¹ Net of PIS/COFINS. Amounts represent what was established for cycles 2017/2018 (REH ANEEL 2,258), 2018/2019 (REH ANEEL 2,408) and 2019/2020 (REH ANEEL 2,565). Premises for future cycle according to REN ANEEL 762/2017 and based on REH ANEEL 2,565. Regulatory WACC of 6.64%, that will be updated in the tariff review. Asset base is subject to write-offs in the tariff review process.

RBSE Receivables Schedule1 (BRL million)

PROCEEDINGS LOWER HOUSE UPPER HOUSE EXECUTIVE CME CFT CCJC COMMITTEES PLENARY SANCTION VETOS

837 711 747 747 747 747 347 785 729 750 785 785 785 785 785

2018/2019

1,566

2019/2020 2017/2018 2020/2021 2022/2023 2021/2022 2023/2024 2024/2025

1,461 1,532 1,532 1,532 1,532 1,132 785 246 253 264 264 264 264 264 264

Ke

246 253 264 264 264 264 264 264 246 253 264 264 264 264 264 264

WACC

151 156 163 163 163 163 163 163

Financial Component Economic Component

GUARANTEE AN ADEQUATE TARIFF RESET

▪ Transmission concession contracts renewed in 2013

are subject to a periodic tariff reset (“PTR”) every five years

▪ ANEEL opened Public Hearings 41/2017, 31/2018

and 09/2019 to discuss and improve 2018 PTR rules

▪ PTR was postponed to Cycle 2020/2021, with

retroactive effects to 2018 Regulatory Operational Costs (O&M Cost of Capital (WACC) Regulatory Asset Base & Regulatory Price Reference Improvements in small scale

GUARANTEE ADEQUATE TARIFF RESET

Regulatory Operational Costs Cost of Capital WACC Regulatory Asset Base & Price Reference

▪ Technical Note (“TN”)

204/2018

▪ Reduction of O&M costs of

17% (vs. 19% TN 141/2018), phased in 5 years

▪ TN subject to approval in

ANEEL board meeting

▪ New Price Reference

approved by Resolution 2,514/2019

▪ Price Reference constructed

based on investments in the sector between 2013 and 2017

▪ Evaluation report of assets

should be presented to ANEEL in mid July of 2019 (ANEEL dispatch 1,140/2019)

▪ Next steps: ANEEL auditing of

the report

▪ Opening of Public Hearing

09/2019 and publication of Technical Note 37/2019

▪ Increase of WACC from

6.64% to 7.32%

▪ Deadline to send contributions

to Public Hearing on 12/02/2019

▪ Technical Note 215/2018 ▪ Fixed revenue throughout

the tariff cycle

▪ ANEEL proposal based on

investments realized in the last years

Minor improvements

Nota:

¹ Considers project information (100%) ² 2019/2020 RAP Cycle weighted by ISA CTEEP’s participation

IE Itaquerê (100%)

3 Comp. Synchronous (Araraquara Substation) CAPEX ANEEL: BRL 398 million RAP19/20 cycle : BRL 51 million ANEEL Term: Aug/21

IE Aguapeí (100%)

TL: : 111 km Substation: 1.4 thousand MVA ANEEL CAPEX: BRL 602 million RAP19/20 cycle: BRL 59 million ANEEL term: Aug/21

IE Paraguaçu (50%)²

TL: 338 km Substation: none ANEEL CAPEX: BRL 510 million RAP19/20 cycle : BRL 118 million ANEEL term: Feb/22

IE Itaúnas (100%)

TL: 79 km Substation: 1,200 MVA 1 Static Comp. ANEEL CAPEXc: BRL 298 million RAP19/20 cycle : : BRL 52 million ANEEL term: Feb/22

IE Aimorés (50%)²

TL: 208 km Substation: none ANEEL CAPEX: BRL 341 million RAP19/20 cycle : BRL 79 million ANEEL term: Feb/22

IE Tibagi (100%)

TL: : 18 km on double circuit Substation: 500 MVA ANEEL CAPEX: BRL 135 million RAP19/20 cycle : BRL 20 million ANEEL term: Aug/21

IE Ivaí (50%)²

TL: 599 km (230/500 kV) in double circuit Substation: 3 thousand MVA CAPEX ANEEL: BRL 2 billion RAP19/20 cycle : BRL 294 million ANEEL term: Aug/22

Under construction Substation Line Entrance Transmission Line (TL)

IE Itapura – Lorena (100%)

TL: 6 km of double circuit Substation: 1,200 MVA CAPEX ANEEL: BRL 238 million RAP19/20 cycle : BRL 11 million ANEEL term: Sep/22

IE Biguaçú(100%)

TL:: 57 km Substation: 300 MVA ANEEL CAPEX: BRL 641 million RAP19/20 cycle : BRL 40 million ANEEL term: Sep/23

ASSETS UNDER CONSTRUTION

▪ 2 thousand km of

transmission lines1

▪ 12 thousand MVA of power

transformation capacity1

▪ Revenue (RAP) of BRL 556

million²

Evrecy (100%)

Minuano

TL: 169 km Substation: 2.7 thousand MVA CAPEX ANEEL : BRL 682 million RAPauction: BRL 38 million ANEEL term: Dec/24

Três Lagoas

TL: 37 km Substation: none CAPEX ANEEL: BRL 99 million RAP19/20 cycle : BRL 5 million ANEEL term: Jun/23

IEMG (100%) Triângulo Mineiro

TL: 173 km Substation: 1.6 thousand MVA CAPEX ANEEL: BRL 554 million RAPauction: BRL 33 million ANEEL term: Dec/24

GROWTH OPPORTUNITIES TO CREATE VALUE GREENFIELD PROJECTS AND RETROFITTING

M&A

Constantly evaluating market opportunities for consolidation

2029 Decennial Energy Plan

▪

BRL 104 billion of investments in transmission estimated for 2020-2029

▪

70% in retrofitting projects

▪

30% in greenfield projects 2020 Auction

▪

2 auctions scheduled for 2020 with an investment opportunity of BRL 11 billion

▪

1H20: 6 lots, 240 km of transmission lines, 1,500 MVA of power and an estimated CapEx of BRL 2 billion

▪

2H20: 13 lots, 3,000 km of transmission lines, 5,600 MVA of power and estimated CapEx of BRL 9 billion

ISA CTEEP in the Transmission Sector Sustainable Value Destaques financeiros Financial Highlights A ISA CTEEP

51% 76% 83% 81%

NET REVENUE (BRL MILLION)

951 2017 2016 2018 2019 1,778 2,767 2,775 488 2017 2016 1,351 2018 2,254 2019 2,287 467 509 538 594 2018 2016 2017 2019 229 615 2019 2018 2016 2017 1,276 1,222

Notes:

¹ Excluding depreciation and contingencies The figures for Net Revenue and EBITDA do not consider results

• f affiliates, which are accounted for as equity income

²Net income adjusted for non-controlling interest

O&M COSTS¹ (BRL MILLION) EBITDA ICVM 527 (BRL MILLION) NET INCOME (BRL MILLION)²

EBITDA Margin

REGULATORY RESULTS HIGHLIGHTS

STRONG CASH GENERATION BOOSTED BY RBSE

SOLID DEBT PROFILE WITH

▪ Debt Amortization Schedule (BRL million)

Debt Breakdown

Debt Profile

• n 12/31/2019

▪

Gross Debt: BRL 3.2 billion

▪

Average cost: 7.5% p.a

▪

Average term: 4 years

▪

Net Debt / EBITDA: 1.0x

Investment Grade by Fitch: AAA(bra)

1,077 247 82 78 390 713 657 51

2021 2024 2023 2030+ 2020 2025 2022 2026 +

58% 6% 17% 19%

Debentures - CDI/ IPCA Outros BNDES - TJLP LEI 4.131

▪

Minimum payout of 75% of regulatory net income limited to the financial covenant of 3.0x Net Debt/EBITDA

▪

Proceeds via interest on capital and dividends payments

▪

Dividend yield of 7% in 2019 226 335 247 585 1,985

Strong cash generation allows higher dividends

995 (BRL million) Payout Regulatório 91% 136% 101% 92% 154% 81%

2014 2015 2016 2017 2018 2019

e-mail: ri@isacteep.com.br phone: +55 11 3138-7407 www.isacteep.com.br/ir

INVESTOR RELATIONS