PRESENTATION 2 Q 1 9 | R E S U L T S ISA CTEEP ISA CTEEP in - - PowerPoint PPT Presentation

INSTITUTIONAL PRESENTATION

2 Q 1 9 | R E S U L T S

ISA CTEEP in the Transmission Sector Sustainable Value Financial Highlights ISA CTEEP

WHY INVEST IN

ISA CTEEP?

No demand risk and no default risk

Strong Cash Generation

Minimum payout of 75% (regulatory net income)

Dividends

Reference Company in quality and O&M

Benchmark Valuation

Attractive valuation Fitch: AAA(bra)

Investment Grade

Sustainable value creation

Profitability

Opportunities in retrofitting, greenfield projects and M&A

Growth

51%

IE Madeira

Revenue²: BRL 261 million

100%

IENNE

Revenue² : BRL 46 million

ISA CTEEP

Revenue² : BRL 2,579 million

IE Serra do Japi

100%

Revenue² : BRL 59 million

100%

IE Pinheiros

Revenue² : BRL 57 million

100%

Evrecy

Revenue² : BRL 10 million

100%

IE Sul

Revenue² : BRL 18 million

51%

IE Garanhuns

Revenue² : BRL 46 million

100%

IEMG

Revenue: BRL 19 million

Largest publicly traded pure transmission utility in Brazil

• Transmission of ~25% of Brazil’s power

generation

• Transmission of ~100% of the power

generated in the State of São Paulo

• Benchmark player in costs and quality

18.6 thousand km of transmission lines 126 substations 65.9 thousand MVA of transformation capacity

• Regulatory Net Revenue¹:

BRL 2.9 billion

• Regulatory EBITDA¹:

BRL 2.3 billion (margin of 78%)

Notes: ¹ Last 12 months ending on 06/30/2019. Figures consider IE Madeira and IE Garanhuns proportional results to ISA CTEEP’s participation ² 2019/2020 Revenue Cycle proportional to ISA CTEEP’s participation

100%

IE Itaúnas

Revenue³ : BRL 52 million

100%

IE Biguaçú

Revenue³ : BRL 40 million

50%

IE Paraguaçu

Revenue³: BRL 59 million

Largest publicly traded pure transmission utility in Brazil

• Sustainable growth

Notes: ¹ ISA CTEEP’s investments in 10 projects acquired in 2016, 2017 and 2018

• auctions. CAPEX and 2019/2020 Revenue

adjusted to ISA CTEEP’s participation ² Figures consider 100% of the projects ³ Considers 2019/2020 Revenue Cycle adjusted to ISA CTEEP’s participation

Organic growth: CapEx of around BRL 180 million/year Greenfield Projects¹: CapEx of BRL 2.9 billion and revenue (RAP) of BRL 490 million/year +2 thousand km of transmission lines² +8 thousand MVA of transformation capacity²

50%

IE Aimorés

Revenue³ : BRL 40 million

50%

IE Ivaí

Revenue³ : BRL 146 million

100%

IE Tibagi

Revenue³ : BRL 20 million

100%

IE Itapura Lorena

Revenue³ : BRL 10 million

100%

IE Itapura Bauru

100%

IE Aguapeí

Revenue³ : BRL 12 million

100%

IE Itaquerê

Revenue³ : BRL 51 million Revenue³ : BRL 59 million

A successful story of growth, resilience and performance

1999 2013 2001 2012 2006 2007 2017 2016

‘000 km¹ of transmission lines Consolidated regulatory EBITDA² ICVM 527 in BRL billion

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

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 Winner bid for 2 lots in June auction

2018

18.6 2.5 2.3 18.6

2019³

Note: ¹ Information considers 100% of the projects ² Figures consider JV’s proportional results to ISA CTEEP’s participation ³ Last 12 months ending on 06/30/2019

• Tickers: TRPL3¹ and TRPL4²
• Corporate Governance: Level 1 at B3
• Average daily volume in 1H19:

BRL 31 million

• Market cap³: BRL 17 billion
• Distribution of capital:

54% of foreign investors 46% of Brazilian investors

• ADRs: “CTPTY” and “CTPZY”
• Coverage of 12 institutions:

75% Hold 25% Sell

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: 9.8% Preferred shares: 51.9%

Eletrobras 35.4%

Common shares: 0.7% Preferred shares: 46.8%

Others 28.8%

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 06/30/2019

Shareholder Structure on 06/30/2019

Notes: ¹ Considers 2018 IFRS Results adjusted by participation l ² On 06/30/2019

Central America

Transmission Telecom

Brazil

33% of net income Transmission Telecom

Bolivia

Transmission

Argentina

Telecom

Peru

15% of net income Transmission Telecom

Colombia

27% of net income Transmission Telecom Highway concessions Real Time Systems

Chile

25% of net income Transmission Telecom Highway concessions

• The largest energy transmission

company in Colombia and Peru

• Business in Highway concessions, Real Time

Systems and Telecom

• ISA CTEEP represents 36% of ISA’s¹ net

income

• 86% of Net Income in Transmission
• Benchmark player in the sector
• 45,142 km of transmission lines
• 90,821 MVA of transformation capacity
• 907 km of highways
• Controlled by the Colombian government

(51% of shares)

• Market Cap: USD 6 billion²

ISA

INTERCONEXIÓN ELÉCTRICA, S.A.E.S.P .

A multilatina company focused in transmission with growth

• pportunities in Brazil

Solid Presence in Latin America: 7 countries, 4 sectors, 43 companies

CORPORATE STRUCTURE

ISA CTEEP and its subsidiaries Assured Annual Revenue (RAP) 2019/2020 Cycle of BRL 4.1 billion

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 510 260 Real Profit ISA CTEEP 51% / Furnas 24,5% / Chesf 24,5% Equity method IE Ivaí Under construction Paraná 292 146 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 80 40 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Pinheiros Operational São Paulo 58 58 Presumed Profit ISA CTEEP 100% Fully consolidated IE Serra do Japi Operational São Paulo 59 59 Presumed Profit ISA CTEEP 100% Fully consolidated IE Aguapeí Under construction 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 IE Tibagi Under construction SP / Paraná 20 20 Presumed Profit ISA CTEEP 100% Fully consolidated IE Sul Operational Rio Grande do Sul 19 19 Real Profit ISA CTEEP 100% Fully consolidated IEMG Operational Minas Gerais 18 18 Presumed Profit ISA CTEEP 100% Fully consolidated Evrecy Operational Espírito Santo 12 12 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Bauru Under construction São Paulo 10 10 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Lorena Under construction São Paulo 10 10 Presumed Profit ISA CTEEP 100% Fully consolidated Total 4,124 3,584 Consolidation Location RAP Cycle 2019/2020

(BRL million)

Share (%) Profit Regime

Corporate Governance Structure

Human Resources Committee Audit Committee CFO and IRO COO Institutional Relations Department Alessandro Gregori Filho Carlos Ribeiro Rafael Noda Project Director Weberson Abreu Board of Auditors

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 César Ramirez (temporary) CEO

Ethics and Transparency recognized at ISA and at ISA CTEEP levels Experienced Management team focused on value creation 2018 Transparency Trophy from ANEFAC

Shareholders

CONNECTIONS THAT CREATE VALUE THROUGH

• Forest projects that reduce the

impact of greenhouse gases

• Climate change mitigation
• Conservation of biodiversity in

jaguar’s habitat

JAGUAR CONNECTION:

• ~BRL 15 million in investments in 2018
• Projects related to Youth Leadership,

Local Development, and the Environment

• Educational Focus

SOCIAL RESPONSIBILITY: Sponsorship with tax benefit

ACTIONS 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

NEW BUSINESSES EFFICIENCY

Sustainable Value Financial Highlights ISA CTEEP in the Transmission Sector ISA CTEEP

6 7 13 19 65

State Grid Alupar TAESA ISA CTEEP Eletrobras

2018 Mark et S hare ( tho us a nd km o f lines ) Transmission Rev enues ¹ (2019/ 2020 cycle)

Total: BRL 37 billion

IS THE PURE TRANSMISSION COMPANY IN THE SECTOR IN BRAZIL

Transmission companies are remunerated by the availability of its assets

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.

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

TAESA Eletrobras ISA CTEEP State Grid Alupar Others

Source: ANEEL

Concessions prior to 1998 Concessions between 1999 and 2006 Concessions after 2008

Note: ¹ Regulatory Asset Base

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:

72% RAP in

• peration:

1% RAP in

• peration:

13% RAP under construction: 14%

DEMAND DOES NOT IMPACT TRANSCO’S REVENUE

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

Annual Allowed Revenue (RAP) Breakdown

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

PV

OTHERS¹

Note: ¹Other revenues consider bilateral and sharing contracts

• 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

ISA CTEEP

ISA CTEEP in the Transmission Sector Financial Highlights Sustainable Value 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

SOLID & SUSTAINABLE RESULTS

O&M Reinforcement Projects RBSE Receivables 100% JV Adjusted Net Revenue

874 247 1,378 182 257 2,937

Adjusted EBITDA

340 220 1,378 158 203 2,300

Last 12 months¹ (BRL million) OPERATIONAL HOLDING SUBSIDIARIES

Total

Note:

¹ Regulatory results of the last 12 months ending on 06/30/2019

Focus in cost efficiency, service quality and

• perational safety to maximize results

0.4 0.15 0.1 0.07 0.05 0.093

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

Focus in efficiency results in reduc ucti tion

• n of

37% of OPEX, excluding contingencies, going from BRL 915 million in 2006 to BRL 572 million in 20181 DREQ/FREQ indicators, in June/19, suggest that for every 8 ye years and 4 months ths, there would be 1 total shutdown of ISA CTEEP’s system of approximately 23 minutes

Note: ¹ Considers controlled and affiliates weighted by the Company’s share June/2019 figures

12.16 7.08 5.81 6.11 1.49 2.29 0.0056% 0.0033% 0.0030% 0.0032% 0.009% 0.0013%

Reinforcements and Improvements CapEx (BRL million) Average: BRL 180 million/year

ORGANIC FROM RETROFITTING PROJECTS

• Opportunity for organic

growth (increase of transmission capacity)

• Execution and project

selection to guarantee profitability

Reinforcements and Improvements Revenue (BRL million) Average: BRL 50 million/year 198 214 147 210 144 150

2014 2018 2015 2019e 2016 2017

31 47 41 61 63

2016/2017 2015/2016 2017/2018 2018/2019 2019/2020

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 SUL2 (100%)

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

IE Madeira (51%)

TL: 2,385 km Substation: 7,470 MVA Revenue¹: BRL 261 million

IE Pinheiros (100%)

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

IE Serra do Japi (100%)

TL: 137 km Substation: 2,000 MVA Revenue: BRL 59 million

IEMG (100%)

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

Evrecy (100%)

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

MANAGEMENT OF SUBSIDIARIES WITH GOVERNANCE AND INTEGRATION

• 8 subsidiaries fully in operation
• 14 concession contracts
• 4.4 thousand km of transmission lines
• 27 substations
• 17 thousand MVA of power

transformation capacity

• Revenue (RAP) of BRL 516 million¹

Notes:

¹ 2019/2020 RAP Cycle weighted by ISA CTEEP’s participation | ² Fully consolidated as of September of 2018

Substation Line Entrance Transmission Line (TL) In operation

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

• BRL 12 billion to be received, of

which approximately BRL 3 billion were paid in the 2017/2018 and 2018/2019 cycle

• April of 2017 injunction determined

temporary exclusion of Ke

• ANEEL recalculated the RAP for

2018/2019 cycle, excluding Ke¹ and considering the linearization of the Economic Component so that payments will be flat until 2022/2023 cycle (REH 2,408/18)

Notes:

¹ Technical Note 170/17 | ² Net of PIS/COFINS

RBSE Receivables Schedule² (BRL million)

Economic Component Financial Component ex-Ke Ke Assumptions pursuant to RES ANEEL 762/2017

IPCA (Dec/12-Jun/17): 34.45% WACC: 6.64% p.a. Cost of Equity (Ke): 10.74% p.a. (1H13) and 10.44% p.a. (from Jul/13 to Jun/17) Estimated amounts. WACC will be defined in tariff reset and asset base is subject to write-offs.

837 711 747 747 747 747 347 785 729 750 785 785 785 785 785 264 246 253 264 264 264 264 264

2022/2023

1,796

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

1,812 1,714 1,796 1,796 1,796 1,396 1,049

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%

• Contributions sent to Public

Hearing on 04/22/2019

• Contributions are in analysis
• Technical Note 215/2018
• Fixed revenue throughout

the tariff cycle

• ANEEL proposal based on

investments realized in the last years

• Annual revenue proposed of

approximately BRL 10 million/year

Minor improvements

10 PROJECTS UNDER CONSTRUCTION WILL ADD BRL 490 MILLION OF REVENUE¹

• CapEx ISA CTEEP: BRL 2.9 billion²
• Extension of lines: +2 thousand km³
• Capacity: +8 thousand MVA²

Note:

¹ 2019/2020 RAP Cycle proportional to ISA CTEEP’s participation ²Total CapEx ANEEL of BRL 5.2 billion ³ Considers information of the project (100%)

IE Itaquerê (100%)

3 Synchronous Components (Araraquara Substation) CAPEX ANEEL: BRL 398 million Revenue: BRL 51 million Deadline ANEEL: Aug/21

IE Aguapeí (100%)

TL: 111 km Substation: 1,400 MVA CAPEX ANEEL: BRL 602 million Revenue: BRL 59 million Deadline ANEEL: Aug/21

IE Paraguaçu (50%)³

TL: 338 km Substation: none CAPEX ANEEL: BRL 510 million Revenue: BRL 118 million Deadline ANEEL: Feb/22

IE Itaúnas (100%)

TL: 79 km Substation: 1,197 MVA 1 Static Component CAPEX ANEEL: BRL 298 million Revenue: BRL 52 million Deadline ANEEL: Feb/22

IE Aimorés (50%)³

TL: 208 km Substation: none CAPEX ANEEL: BRL 342 million Revenue: BRL 80 million Deadline ANEEL: Feb/22

IE Itapura – Bauru (100%)

1 Static Component (Bauru Substation) CAPEX ANEEL: BRL 126 million Revenue: BRL 12 million Deadline ANEEL : Feb/21

IE Tibagi (100%)

TL: 36 km Substation: 1000 MVA CAPEX ANEEL: BRL 135 million Revenue: BRL 20 million Deadline ANEEL: Aug/21

IE Ivaí (50%)³

TL: 1,200 km (230/500 kV) Substation: 2,988 MVA CAPEX ANEEL: BRL 1,937 million Revenue: BRL 292 million Deadline ANEEL: Aug/22

Substation Line Entrance Transmission Lines (TL) Under construction

IE Itapura - Lorena (100%)

TL: 6 km Substation : 1,200 MVA CAPEX ANEEL: BRL 238 million Revenue: BRL 10 million Deadline ANEEL : Sep/22

IE Biguaçú (100%)

TL: 57 km Substation: 300 MVA CAPEX ANEEL: BRL 641 million Revenue: BRL 40 million Deadline ANEEL : Sep/23

GROWTH OPPORTUNITIES TO CREATE VALUE GREENFIELD PROJECTS AND RETROFITTING M&A

Constantly evaluating market

• pportunities for consolidation

2027 Decennial Energy Plan

• Increase of around 55 thousand km
• f new transmission lines
• Investment in transmission
• Organic growth opportunity

from BRL 70 billion to BRL 110 billion

• BRL 38 billion in auctions

2019 Auction

• December of 2019
• 13 lots in 12 States
• 2,380 km of lines
• Investment of ~BRL 4 billion

ISA CTEEP in the Transmission Sector Sustainable Value Financial Highlights ISA CTEEP

51% 76% 83% 78%

NET REVENUE (BRL MILLION)

247 747 691 716 758 874 172 135 129

2017 2016

143 1,620 201 188

1,778 2018

1,378 182

LTM¹ 955 2,767 2,681

181%

180 177 220 747 220 267 416 340 73

488

157

2018 2016

120 148 1,620

2017

1,378 158

LTM¹ 1,351 2,286 2,096

330%

439 472 490 541

2016

22 19 9 15 26

2017

24 24

2018

24

LTM¹ 467 509 538 591

27%

246 635 2016 2018 2017 LTM¹ 1,290 1,117

354% RBSE O&M Subsidiaries New Investments

REGULATORY RESULTS HIGHLIGHTS

STRONG CASH GENERATION BOOSTED BY RBSE

O&M COSTS² (BRL MILLION) EBITDA ICVM 527 (BRL MILLION) NET INCOME (BRL MILLION)

EBITDA Margin

Note:

¹ Last 12 months ending on 06/30/2019 ² Costs do not consider depreciation and contingencies Net Revenue and EBITDA include only 100% owned subsidiaries. Shared control companies are accounted as equity shareholder.

SOLID DEBT PROFILE WITH

• Debt Amortization Schedule (BRL million)

Debt Breakdown

48% 19% 33%

Local bonds - CDI/IPCA BNDES - TJLP Others

Debt Profile

• n 06/30/2019
• Gross Debt: BRL 3.1 billion
• Average cost: 7.7% p.a
• Average term: 3.5 years
• Net Debt / EBITDA: 0.8x

Investment Grade by Fitch: AAA(bra)

270 245 82 77 387 921 51 2019 2025-2029 2010 2030+ 2021 2022 2023 2024 1,062 Note:

¹Net Debt/ EBITDA considering IE Madeira and IE Garanhuns figures reaches 1.2x Average term considering IE Madeira and IE Garanhuns figures reaches 4.5 years

Note: ¹ The Company registered net loss due to the provision for losses related to Law 4,819/58

Strong cash generation allows higher dividends

(BRL million) Regulatory Payout 91% 136% 101% 92% 154%

• 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 2.3% in 1H19

79% 226 335 247 585

2017

1,985

2015 1H19 2016 2018 2014

370

68 70 72 74 76 78 80 82 84 86

DOES NOT REFLECT ISA CTEEP’S CASH GENERATION

COVERAGE TARGET PRICE (BRL/share) RATING

HBSC 24 Hold Citi 24 Hold JP Morgan 23 Sell Brasil Plural 23 Sell XP Investimentos 22 Hold Itaú BBA 21 Hold Bradesco 21 Hold BTG 20 Hold Safra 19 Hold Merrill Lynch 19 Hold Santander 18 Hold Banco do Brasil 17 Sell Average Target Price BRL 21

TARGET PRICE (BRL)

16 17 18 19 20 21 22 23 24 25

Hold Buy Sell

• Itaú BBA
• Merrill

Lynch

• Safra
• Citi
• JP

Morgan

• XP
• Santander
• Bradesco
• Banco do Brasil
• HSBC
• Brasil

Plural

• BTG

e-mail: ri@cteep.com.br phone: +55 11 3138-7557 www.isacteep.com.br/ir

INVESTOR RELATIONS