Luis Fernando Alarcn, CEO Carlos Alberto Rodrguez, CFO 2 - - PowerPoint PPT Presentation

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THIRD QUARTER 2014 RESULTS Medelln, Colombia November 4, 2014 Luis Fernando Alarcn, CEO Carlos Alberto Rodrguez, CFO 2 DISCLAIMER Certain statements contained in this report constitute "forward-looking statements" within the

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THIRD QUARTER 2014 RESULTS Medellín, Colombia November 4, 2014

Luis Fernando Alarcón, CEO Carlos Alberto Rodríguez, CFO

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DISCLAIMER

Certain statements contained in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Also, these forward-looking statements present our estimates and assumptions only as of the date

  • f this report. Except for our ongoing obligation to disclose material information as

required by federal securities laws, we do not intend to update you concerning any future revisions to any forward-looking statements to reflect events or circumstances

  • ccurring after the date of this report.

Amounts expressed in US dollars are for information purposes only, and do not reflect accounting conversion techniques usually applied. As of September 30, 2014, the exchange rate was of USD 1.00 = COP 2.028,48 (Source: Banco de la República de Colombia).

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Operating Highlights Investments Third Quarter 2014 Results Q&A

AGENDA

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HIGHLIGHTS

4 UPME 02 2014 Reforma Connection:

  • Construction of two line bays of Reforma Substation and 1-km. transmission line.

Villavicencio - Meta.

  • Estimated revenues: COP 0.5 million
  • Date of Entry into Operation: November 30, 2015

During the third quarter of 2014, ISA and its affiliates were awarded 7 energy transmission projects in the region

  • COLOMBIA

UPME 06 2013 Caracolí Substation:

  • Construction of Caracolí 220 kV Substation and two transmission lines, 22 km and 31 km

long.

  • Soledad – Atlántico.
  • Estimated revenues: COP 7.54 million
  • Date of Entry into Operation: November 30, 2016

UPME 07 2013 Montería Substation:

  • Construction of Montería and Chinú Substations and 71-km. and 124-km.

transmission lines. Córdoba.

  • Estimated revenues: COP 9.0 million
  • Date of Entry into Operation: November 30, 2016
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HIGHLIGHTS

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  • ISA won bidding process in Peru:
  • Design, financing, construction, operation and

maintenance of one 220-kV transmission line Friaspata – Mollepata, Expansion of Friaspata and Mollepata Substations.

  • Concession Term: 30 years.
  • Estimated revenues: COP 5.7 million
  • Date of Entry into Operation: 24 months from the date of

awarding of project.

During the third quarter of 2014, ISA and its affiliates were awarded 7 energy transmission projects in the region

  • PERÚ
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HIGHLIGHTS

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During the third quarter of 2014, ISA and its affiliates were awarded 7 energy transmission projects in the region

  • CHILE

Project V.I. Ref. COMA Referential thousands USD Term

Dec ’09 (USD MM) (months)

1 Autotransformer bank S/E Nueva Cardones, 500/220 kV, 750 MVA 25.3 364 36 2 Autotransformer bank S/E Nueva Maitencillo, 500/220 kV, 750 MVA 25.3 364 36 3 Autotransformer bank S/E Pan de Azúcar, 500/220 kV, 750 MVA 25.3 364 36 Total Bidding Process 75.8

  • Estimated revenues: USD 2.6 million
  • Date of Entry into Operation: September 30, 2017

V.I. Ref: reference investment value COMA: operation, maintenance & management cost

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HIGHLIGHTS

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  • Upheld the Bond program
  • ratings. Outlook remained

Stable.

AAA(col)

  • Affirmed local and

international long-term rating

BBB

Rating agencies upgraded and affirmed ISA’s ratings

  • Upgraded international

issuer rating to

Baa2

Outlook stable

  • Upgraded the international

corporate credit rating to

BBB

Outlook stable

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AGENDA

Operating Highlights Investments Third Quarter 2014 Results Q&A

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2014 2015 2016 2017 2018 2019 2020 Colombia Peru Brazil Chile Others Investment by country COP % Colombia

2,233 26.2

Peru

1,854 21.7

Brazil

2,332 27.3

Chile

2,076 24.3

Others

37 0.4

Investment by business COP % Energy

7,544 88.4

Toll Roads

518 6.1

Telecommunications

290 3.4

SMRTS

180 2.1

LONG-TERM INVESTMENT PLAN

9

COP billions

1.393 2.494 1.044

Projections September 2014

481 331 377 2.411

COP 8,532 billion (USD 4,296 million)

Long-term investment plan ensures ongoing company’s growth

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INVESTMENT OPPORTUNITIES

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  • ENERGY TRANSMISSION (2014 and 1S-2015)

Figures in millions

  • Colombia, Expansion Plan UPME (USD 1,074)
  • La Loma 500 kV - USD 29.2
  • Ituango – USD 427.1
  • Reinforcement Southwest area 500kV – USD 291.7
  • Reinforcement Caribbean area - USD 225.9
  • Second Eastern Reinforcement– USD 84.5
  • Porce III – USD 15.6
  • Chile, , CDEC-SIC & SING (USD 585).
  • Line 2x500 kV Pichirropulli - Puerto Montt – USD 81.0
  • Substation Nueva Charrúa, línea Nueva Charrúa –

Charrúa – USD 81.0

  • New Substation Crucero Encuentro – USD 23.0
  • Interconnection SING-SIC – USD 400.0
  • Peru, Proinversión projects (USD 278)
  • Line Azangaro-Puno - USD 80.0
  • Nueva Lurín – USD 20.0
  • Substation Carapongo – USD 30.0
  • Substation Córpac and LT Industriales–Córpac –

USD 148.0

  • Colombia-Panama Interconnection – USD 500.0

There are significant short-term investment opportunities in the energy transmission business

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INVESTMENT OPPORTUNITIES

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  • ROAD CONCESSIONS

Figures in millions

  • In Colombia projects ANI, Q4 2014. Design,

construction, financing and operation of road

  • concessions. Consortium ISA-CINTRA.
  • Girardot Neiva 191 km - USD 648
  • Cruz del Viso-Carreto-Palmar de Varela 204 km –

USD 265

  • Santana-Mocoa-Neiva 422 km - USD 679
  • Bogota-Villavicencio (Sector 1) 30 km - USD 1,154
  • Popayán-Santander de Quilichao 76 km - USD 680
  • In Chile, projects MOP for USD 300.0
  • Third lane projects I & III in Maipo – USD 200.0
  • Pedestrian connections in Ruta del Maule and Ruta

del Bosque – USD 100.0

Road concession opportunities are focused in Colombia and Chile.

MOP project portfolio USD Route G-21 Ski Centers access 2012 107 Route G-60 Road Connection Melipilla - Camino de la Fruta 2014 38 Road Nogales – Puchuncaví 2014 148 Tunnel El Melón [R] 2015 120 Improvement of Route Nahuelbuta 2015 237 Road Connection Route 78 to Route 68 2015 108 Ruta de la Madera 2016 142 Route 66 Camino de la Fruta 2016 420 Américo Vespucio Oriente Principe de Gales – Grecia 2016 726 Road Concession Autopista Metropolitana del Puerto Montt 2016 273 Concession Route 5, Caldera – Chañaral Section 2017 250 Conurbacion La Serena Coquimbo 2017 133 Improvement Route 68 2020 200

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AGENDA

Operating Highlights Investments Third Quarter 2014 Results Q&A

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CONSIDERATIONS

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EXCHANGE RATES 9M14 average 9M13 average Change % 3Q14 close 3Q13 end Change % COP / USD 1,826.83 1,960.99 7.3% 1,926.83 1,881.19

  • 2.4%

REAL / USD 2.03 2.30 13.3% 2.34 2.20

  • 6.0%

CLP / USD 478.68 553.06 15.5% 524.61 552.72 5.4% COP / REAL 898.41 853.79

  • 5.0%

822.52 854.12 3.8% COP/ CLP 3.82 3.55

  • 7.1%

3.67 3.40

  • 7.4%

Third quarter financial results were COP 161 billion, a 46.2% increase compared with the same period of 2013

Results were due to the following: 1. Increase of revenues in Brazil and Colombia 2. Entry into operation of new projects in Peru 3. Amortization of ISA Capital do Brasil’s goodwill

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Breakdown by Business – 3Q14 Breakdown by Country – 3Q14

Total operating revenues reached COP 1.021.908 million / USD 504 millions in 3Q14.

SMRTS: Smart Management of Real Time Systems

CONSOLIDATED FINANCIAL RESULTS REVENUES

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COP billions

11.0% 921 1.022

200 400 600 800 1.000 1.200 3Q13 3Q14

COLOMBIA 36,6% CHILE 19,9% BRAZIL 30,3% PERU 11,8% OTHERS 1,3% Energy 71,5% Roads 19,8% Telecommu nications 5,8% SMRTS 2,9%

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million 3Q13 3Q14 Change % AOM Costs and Expenses 378.696 410.652 8,4% Depreciation 40.631 41.350 1,8% Amortization 47.925 39.733

  • 17,1%

Provisions 14.002 21.733 55,2% Total 481.254 513.467 6,7%

CONSOLIDATED FINANCIAL RESULTS COSTS AND OPERATING EXPENSES Breakdown by Business – 3Q14 Breakdown by Country – 3Q14

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COP billions

481 513

400 450 500 550 3Q13 3Q14

6.7%

Energy 73,4% Roads 12,1% Telecomm unications 10,0% SMRTS 4,6% COLOMBIA 38,2% CHILE 12,6% BRAZIL 35,7% PERU 12,0% OTHERS 1,5%

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Breakdown by Country – 3Q14 CONSOLIDATED FINANCIAL RESULTS EBITDA Breakdown by Business – 3Q14

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COP billions

EBITDA reached COP 618.715 million / USD 305 million in 3Q14.

12.5% 550 619

500 550 600 650 3Q13 3Q14

Energy 72,2% Roads 23,5% Telecommu nications 3,2% SMRTS 1,2%

COLOMBIA 35,9% CHILE 23,5% BRAZIL 24,0% PERU 15,2% OTHERS 1,3%

57,7 51,9 59,7 54,4 60,3 58,9 60,5

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 EBITDA Margin

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Non-operating results was –COP 147.624 million / –USD 73 million in 3Q14.

CONSOLIDATED FINANCIAL RESULTS NON-OPERATING RESULTS

millions 3Q14 Colombia

  • 13.176

Chile

  • 113.906

Brazil

  • 5.329

Peru

  • 13.937

Other

  • 1.274

millions 3Q14 Energy Transmission

  • 29.296

Road Concessions

  • 111.535

Telecommunications Transport

  • 7.192

SMRTS 398

Breakdown by Business Breakdown by Country

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COP billions

  • 520
  • 148
  • 600
  • 500
  • 400
  • 300
  • 200
  • 100

3Q13 3Q14

  • 71,6%
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Net Income for 3Q14 reached COP 160,528 million / USD 79 million.

CONSOLIDATED FINANCIAL RESULTS NET INCOME Breakdown by Business Breakdown by Country

millions 3Q14 Colombia 111.896 Chile 14.150 Brazil 11.416 Peru 20.375 Other 2.692 millions 3Q14 Energy Transmission 141.577 Road Concessions 16.564 Telecommunications Transport

  • 770

SMRTS 3.158

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COP billions

110 161

50 100 150 200 3Q13 3Q14

46.2%

4,9 8,6 16,4 11,9 11,0 17,3 15,3

28,4 16,2 22,6 0,6 23,8 25,7 24,7 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Net Margin Net Margin BMI

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Assets in 3Q14 totaled COP 25,521,515 million or USD 12,582 million.

Assets by Country - 3Q14

Assets 25,567 25,447

Assets by Business - 3Q14 CONSOLIDATED BALANCE SHEET

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COP billions

Energy 64,5% Roads 31,9% Telecommu nications 2,6% SMRTS 0,9% COLOMBIA 29,5% CHILE 32,1% BRAZIL 25,4% PERU 12,6% OTHERS 0,5%

  • 1,8%

0,7% 8,0%

  • 0,2%

7.451 7.506 3.705 4.001 14.411 14.014

5.000 10.000 15.000 20.000 25.000 30.000 2013 3Q14 Liabilities Minority interest Equity

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millions

2013 3Q14 Change % 3Q14 USD

CHILE 4,217,278 3,862,469

  • 8.4%

1,904 COLOMBIA 1,788,574 1,777,134

  • 0.6%

876 BRAZIL 1,169,464 1,151,736

  • 1.5%

568 PERU 1,464,947 1,648,128 12.5% 812 BOLIVIA 51,134 44,044

  • 13.9%

22 ARGENTINA 7,071 6,112

  • 13.6%

3 TOTAL 8,698,468 8,489,624

  • 2.4%

4.185

CONSOLIDATED FINANCIAL DEBT Breakdown by Rate Breakdown by Source Breakdown by Currency

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Fixed 18,1% CDI 8,6% ICP 15,0% TJLP 2,7% TAB 6,3% Libor 5,1% DTF 4,6% UF 39,0% Other 0,6%

Capital Market 73,9% Banks 25,3% Other 0,8% BRL 12,6% COP 19,6% USD 22,4% UF + CLP 45,3% Others 0,1%

4,1 4,5 4,7 4,7 4,5 4,3 4,2 3,2 3,4 3,4 3,1 3,6 3,7 4,2

1Q13 2Q13 3Q13 2013 1Q14 2Q14 3Q14 Debt / EBITDA EBITDA / Interest

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AGENDA

Operating Highlights Investments Third Quarter 2014 Results Q&A

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Investor Relations

Email InvestorRelations@isa.com.co Website www.isa.co Twitter @ISA_Avanza

@ISA_Avanza /ISAAvanza Interconexión Eléctrica ISA /CanalISAAvanza

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