Investor Presentation

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1 The IR Recognition granted by the Colombian Securities Exchange (Bolsa de Valores de Colombia S.A) is not a certification of the registered securities or the solvency of the issuer Investor Presentation BVC - Deceval - Citi Colombia Inside Out. New York - London. May 11-15, 2015

2 Disclaimer Certain statements contained in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 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 of 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 occurring 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. 2

3 AGENDA 3

4 Limited growth in Colombia led to an evolution in the business model Consolidation Geographic expansion Diversification Institutional consolidation New ISA Regional systems interconnection and Center-Coast interconnection. CND COL-VEN interconnection. Leading energy transmitter in COL. Limitation in national growth demanded seeking new opportunities. Entering new markets: Peru, Bolivia, Brazil, Central America. ISA Peru, first internationalization achieved. COL-ECU interconnection. Consolidation transmission business, telecommunications. Intervial Chile, first diversification strategy achieved. COL-PAN interconnection. INTERCHILE

5 Corporate Strategy ISA 2020 Aspirations and General Definitions Ratification of countries and businesses Higher Profitability Growth based on profitability ISA Vocation: Generate value from the operation and excellency in infrastructure development Vision 2020 By 2020, ISA will have tripled its profits, by capturing the most profitable growth opportunities in its businesses existing in Latin America, the boost of operational efficiency and the optimization of its business portfolio. For the long-term cycle, 2014 was established as a key year to seize early victories 5

6 Follow up corporate strategy 2014 Significant advancement of Strategic Plan: two years from its implementation reached 2,2x Growth with higher profitability Current business profitability Management of business portfolio MANAGED BIDS 17 OPEX SAVINGS BY Probable¹ Identified² Required Total Brazil 1, Chile 1, Colombia 11, Peru 4 ~470 USD million Investment ~60% Success Rate Internexa scale increase in operations. Business 65%, Support 35% 159 USD million Savings (with agreements) in CAPEX Methodology developed and applied to investment portfolio. 1 Eventual savings: Achieved in Opex and with contract in CAPEX 2 Identified savings: With strategic project under execution 6

7 AGENDA 7

8 Shareholders Structure and Dividend Policy The Colombian State is the controller 31.44% is the free float December, 2014 SHARES % STATE INVESTORS ,58% THE COLOMBIAN STATE ,41% EMPRESAS PÚBLICAS DE MEDELLÍN ,17% COMPANIES WITH PUBLIC AND PRIVATE CAPITAL ,99% ECOPETROL ,32% EMPRESA DE ENERGÍA DE BOGOTA ,67% PRIVATE INVESTORS ,44% INSTITUTIONAL INVESTORS ,32% INDIVIDUALS ,02% LEGAL PERSONS ,50% FOREIGN INVESTORS ,50% ISA ADR PROGRAM ,09% SUBSCRIBED AND PAID CAPITAL INTO CIRCULATION ,00% Dividend % extraordinary ordinary 8

9 ISA s Board of Directors *Independent members President: Mr. Santiago Montenegro Trujillo Secretary: Sonia Margarita Abuchar Alemán, ISA's Secretary General. 9

10 AGENDA 10

11 ISA ISA in Latin America Colombia Intercolombia Transelca XM INTERNEXA Peru REP Transmantaro ISA Perú PDI INTERNEXA Chile INTERCHILE INTERNEXA INTERVIAL CHILE Ruta del Maipo Ruta del Maule Ruta del Bosque Rutla de la Araucania Ruta de los Rios ISA inversiones Chile ISA inversiones Maule Brazil CTEEP EMG PINHEIROS SERRA DO JAPI EVRECY INTERNEXA ISA Capital do Brasil Others: Ecuador Bolivia Argentina Panama Central America ISA is recognized as a multilatin with broad technical experience, carrying out its activities within the framework of corporate sustainability. 33 Affiliates and subsidiaries 8 Countries 1 Region: Central America 4 Business 11

12 Energy Transmission Characteristics Largest international energy carrier in Latin America. 41,650 kms of high voltage circuit MVA of transformation capacity Presence in Colombia, Peru, Bolivia, Brazil, Chile, Panama and Central America. Grid Availability (%): ISA 99.86; Transelca 99.91; REP 99.60; Transmantaro 99.52; ISA Peru 99.90; ISA Bolivia and CTEEP

13 Energy Transmission Projects that went into operation in projects went into operation, close to 1,000 kms of transmission lines, 2,000 MVA of transformation capacity and an investment of US$ 380 million. 8 projects in Colombia Sogamoso Substation and Sogamoso Guatiguará line Reconfiguration of the Primavera Ocaña and Barranca Bucaramanga lines. Sogamoso connection Expansion of the Cerromatoso, Jamondino, Nueva Barranquilla, Chinú and Termocartagena Substations COLOMBIA 5 projects in Peru Trujillo Chiclayo transmission line and complementary works in the Trujillo Nueva and La Niña Substations Reconfiguration of the Ayaviri Substation Upgrading of the Talara Piura line and construction of the Pariñas Substation. Expansion of the Trujillo Norte Substation Upgrading of the Paragsha Vizcarra line PERÚ 2 projects in Brazil Expansion of the Piratininga de PINHEIROS Substation Expansion of the Conselheiro Pena de EVRECY Substation BRASIL Additionally, in Brazil, IEMADEIRA (shared control), commissioned the continued current stations of Porto Velho and Araraguara (6,100 MVA). 13

14 Energy Transmission Principal projects won in projects that will demand investment close to US$ 400 million, which will entail the construction of 800 kms and 3,300 MVA of transformation. COLOMBIA 3 projects and several expansions in Colombia, which will generate an annual revenue of US$ 21 million: Caracolí Substation and the Caracolí Las Flores and Caracolí Sabana transmission lines. Montería Substation and expansion of the Chinú Substation. Montería - Chinú and Montería transmission lines. Substation connection. Upgrade of the Guavio Tunal circuit. 3 projects in Peru, which will generate annual revenue in the sum of US$ 14 million: PERU CHILE Planicie Industriales transmission line and associated substations. Friaspata - Mollepata transmission line and associated substations. Construction of the Orcotuna substation and link in the Huayucachi Carabayllo line. Upgrading of the Aguaytía Pucallpa line and expansion of the substations transformation capacity. 2 projects in Chile, which will generate annual revenue of US$ 3 million: Installation of autotransformer banks in the substations to 500 kv Cardones, Maitencillo and Pan de Azúcar. 14 Second circuit of the Encuentro-Lagunas transmission line.

15 Energy Transmission Latest Achievements In February 2015, ISA was awarded two UPME (Mining and Energy Planning Unit) projects, one of which is the largest transmission project in Colombia. Estimated revenue of US$ 57 million, 860 kms of circuit and 2,850 MVA of transformation. UPME Project Caribbean Coast Reinforcement: design, acquisition of supplies; construction, operation and maintenance of the Cerromatoso - Chinú Copey transmission line to 500 kv, 330 km. Estimated annual revenues USD USD 14,13 million COLOMBIA UPME Project - Ituango: design, acquisition of supplies; construction, operation and maintenance of the substations to 500 kv, Ituango and Medellín and of the associated transmission lines, approximately 530 km in length. Estimated annual revenues USD 42,42 million UPME Project - Valledupar substation: design, acquisition of supplies, construction, operation and maintenance of the Valledupar substation to 220 kv. Estimated annual revenues USD 631 mil 15

16 Telecommunications Transport Characteristics Largest continued terrestrial network of the continent. 26,700 kms of optical fiber Access to 7 submarine cable heads Owner of the capacity in Arcos 1 Presence: Colombia, Venezuela, Ecuador, Peru, Chile, and Brazil. Equity stake in REDCA (Central America). Award as the Best Wholesale Carrier and Best Service for fourth year in a row. Recognitions granted by the Metro Ethernet Forum 16

17 Telecommunications Transport Consolidation of operations in 2014 A 56.6% increase in revenue in 2014; a year of consolidation of operations and positive net results. COLOMBIA Colombia is the principal market given the number of clients and revenue. In 2014 it continued expanding the capacity of the network in order to attend large operators. PERU In Peru, the terrestrial network covers part of the sierra, the jungle and the coast, connecting Lima with Ecuador, Chile and Bolivia. CHILE ENTRAL MERICA BRAZIL Brazil positioned itself as the market with the greatest potential, by consolidating an optical fiber network of 6,816 kms. Connection of the NQT network to the regional transport network; a company acquired at the end of Business was conducted as to Internet access and content in areas outside Santiago de Chile. Network capillarity of the national network increased, going from attending 20 nodes among principal and intermediary cities, to 60 enabled sites. Start up of network commercial operation in Central America( REDCA 1,800 kms). 17

18 Road Concessions Characteristics Largest operator of interurban roads in Chile. 907 kms of roads in operation in 5 road concessions of the Route between Santiago and Rio Bueno. 11 mainline tolls, 84 lateral tolls and 18 service areas, 293 bridges. A design velocity of 120 km/h. Over 100 million vehicles. Close to US$ 400 million in toll revenue. The concessionaires, due to the management of safety on the road, have the right to adjust the toll up to an additional 5%. 18

19 Road Concessions Projects Managed In Chile: Third line in the Maipo Route Safety and service works in the Araucanía Route and the Los Ríos Route In Colombia: CHILE Studies for the Honda - Girardot Puerto Salgar project, an offering was not made. Analysis to evaluate participation in the 4G projects, where ISA is pre-qualified. Parques del Río Project in Medellín, Colombia: in 2014 a memorandum of understanding was signed between the Municipality of Medellín, ISA and EPM, for the structuring of the project and in order to determine its feasibility. COLOMBIA 19

20 Intelligent Management of Real-Time Systems Characteristics Operates the funds of the National Interconnected System Generation: 64,328 GWh Demand: 63,571 GWh COLOMBIA Manages the Wholesale Energy Market Purchase and sale of energy: COP 13.3 trillion SIC and LAC Invoiced: COP 5 trillion 20

21 Intelligent Management of Real-Time Systems New Initiatives Supervision, coordination and added value to information, associated to transactional infrastructures and platforms: Mobility in Medellín COLOMBIA Modernization of the customs management system for the DIAN Management of the demand Technological tools to conduct follow-up to the execution of the works in the Department of Antioquia. 21

22 AGENDA 22

23 Consolidated Income Statement USD million. Exchange rate: COP 2.392, Revenues AO&M EBITDA

24 Consolidated Income Statement USD million. Exchange rate: COP 2.392, Net Income % 69% 68% 53% 50% 47% 10% 8% 6% 56% 58% 48% 43% 12% 15% Margins Operating EBITDA Net 24

25 Assets Consolidated Balance Sheet USD million. Exchange rate: COP 2.392,46 Assets in December 2014 totaled USD million, - 13,4% increase compared to 2013 Assets by Business Assets ,4% Telecomm unications 2,5% SMRTS 1,1% 11,4% Roads 34,2% Energy 62,1% Assets by Country ,5% 16,8% PERU 13,1% OTHERS 0,5% COLOMBIA 28,1% Equity Minority interest Liabilities BRAZIL 23,9% CHILE 34,4% 25

26 Consolidated Financial Debt USD million. Exchange rate: COP 2.392,46 millions Change % 2014 USD CHILE ,3% COLOMBIA ,2% 746 BRAZIL ,4% 487 PERU ,0% 808 BOLIVIA ,6% 22 ARGENTINA ,1% 3 TOTAL ,4% ,1 3,2 4,5 3,4 3,4 4,7 4,7 3,1 4,5 3,6 3,7 4,3 4,2 1Q13 2Q13 3Q Q14 2Q14 3Q14 4Q14 Debt / EBITDA EBITDA / Interest 4,2 4,5 4,4 Breakdown by Rate Breakdown by Source Breakdown by Currency UF 40,6% Other 0,6% Fixed 19,9% CDI 5,4% Banks 26,1% Other 0,8% UF + CLP 47,4% Others 0,1% COP 17,6% BRL 11,3% DTF 4,1% Libor 5,2% TAB 6,8% ICP 13,5% TJLP 3,9% Capital Market 73,1% USD 23,7% 26

27 ISA's ratings reflect the strong financial profile of the company, with stable and predictable cash flows. International Corporate Ratings Baa2 Stable outlook International Corporate Ratings BBB Stable outlook Rating for bonds issued AAA(col) International Corporate Ratings BBB August 2014 August 2014 Stable outlook May

28 An investment of USD million supports future growth... Long-term investment plan ensures ongoing companies growth Colombia Peru Brazil COP million USD million Projections April 2015 Breakdown COP billions by country COP % Colombia ,3% Peru ,0% Brazil ,4% Chile ,0% Others 33 0,3% by business COP % Energy ,4% Toll Roads 185 1,9% Telecommunications 285 3,0% SMRTS 160 1,7% 28

29 There are significant short-term investment opportunities in the energy transmission business Colombia, UPME Expansion Plan. Investment: USD 260 reference value. Virginia - Nueva Esperanza Cuestecitas - Copey Copey Fundación Porvenir Palenque San Antonio Esmeralda - Hermosa Conexión Cartago Conexión La Enea Peru, Proinversión projects Substation Carapongo. USD 30.0 (2015) Brazil, reinforcement projects for an average of USD 100 million annually. Colombia-Panama Interconnection. USD 500 Chile, CDEC-SIC & SING. Investment: USD 185 reference value. Line 2x500 kv Pichirropulli - Puerto Montt Substation Nueva Charrúa New Substation Crucero Encuentro Figures in millions 29

30 Road concession opportunities are focused on Colombia and Chile Colombia projects ANI, Q Design, construction, financing and operation of road concessions. Consortium ISA-CINTRA. Popayán Santander de Quilichao 76 km - USD 571 Neiva-Girardot 190 km USD 647 River Park project in Medellin, Colombia: in 2014 a memorandum of understanding between the Municipality of Medellin, ISA and EPM, for structuring the project and determine its feasibility was signed. In Chile: Additional opportunities related to the current concessions. Estimated value USD 515. Participation in new projects subject to future bidding processes by MOP. CHILE Figures in millions 30

31 Investor Relations Contact Website Telephone /ISAAvanza Interconexión Eléctrica ISA /CanalISAAvanza 31

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