Investor Presentation

Transcription

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 Andean Investor Conference. New York. September 9, 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 New ISA Institutional consolidation 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. 5

6 AGENDA 6

7 Shareholders Structure and Dividend Policy The Colombian State is the controller 31.44% is the free float June 2015 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 ,86% INDIVIDUALS ,06% FOREIGN INVESTORS ,58% LEGAL PERSONS ,84% ISA ADR PROGRAM ,10% SUBSCRIBED AND PAID CAPITAL INTO CIRCULATION ,00% Dividends %

8 ISA s Board of Directors Principal Minister of Mines and Energy Vice-Minister General Director General of Public Credit and National Treasury Carlos Mario Giraldo* Carlos Felipe Londoño Álvarez Jesús Arturo Aristizabal Guevara* Henry Medina Gonzalez* Santiago Montenegro Trujillo* Camilo Zea Gómez * Nominated by: Ministry of Mines and Energy Ministery of Finance and Public Credit Ministery of Finance and Public Credit Independent -nominated by the Nation MHCP Not independent -nominated by the Nation MHCP Independent - nominated by EPM Independent - nominated by Ecopetrol Independent nominated by the pension funds Independent nominated by the pension funds *Independent members President: Mr. Santiago Montenegro Trujillo Secretary: Sonia Margarita Abuchar Alemán, ISA's Secretary General. 8

9 AGENDA 9

10 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 10

11 ISA, a Linear Infrastructure Company ELECTRIC ENERGY TRANSPORT TOLL ROAD CONCESSIONS TELECOMMUNICATIONS TRANSPORT SMART MANAGEMENT OF REAL TIME SYSTEMS Revenues by Business Electric Energy Transport 95% 90% 80% 80% 68% 70% Toll road concessions 0% 5% 16% 17% 26% 21% Telecommunications Transport 3% 3% 2% 3% 4% 6% Smart Management of Real Time Systems 2% 2% 2% 2% 2% 3% 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 Investment opportunities COLOMBIA There are significant short-term investment opportunities in the energy transmission business PERU CHILE Colombia, UPME Expansion Plan. Investment: USD 260 reference value. Virginia - Nueva Esperanza Cuestecitas Copey Fundación Porvenir Palenque San Antonio Conexión Cartago Conexión La Enea Peru, Proinversión projects 2015 Montalvo Los Héroes line. USD 25 million Brazil, reinforcement projects for an average of USD 245 million annually. Colombia-Panama Interconnection. USD 500 Chile, CDEC-SIC & SING. Investment: USD 185 million reference value for Line 2x500 kv Pichirropulli - Puerto Montt Substation Nueva Charrúa New Substation Crucero Encuentro Figures in millions 13

14 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 14

15 Telecommunications Transport Consolidation of operations 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. BRAZIL In Peru, the terrestrial network covers part of the sierra, the jungle and the coast, connecting Lima with Ecuador, Chile and Bolivia. PERU CHILE CENTRAL AMERICA 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). Figures in millions 15

16 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%. 16

17 Road Concessions Investment opportunities 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 In Colombia: Analysis to evaluate participation in the 4G Third Ola projects km in total. Investment: COP 10 Trillion (yellow lines) Pasto Popayan Ocaña Cúcuta Cúcuta Pamplona Pamplona Bucaramanga Bogotá Barbosa Barbosa Bucaramanga Manizalez Honda Villeta Duitama Pamplona* Pore Arauca* Chiquinquitá Puerto Boyacá* Sogamoso Aguazul* COLOMBIA *contracts for rehabilitation of roads and critical points 17

18 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 18

19 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. 19

20 AGENDA 20

21 EBITDA AO&M Revenues Consolidated Income Statement USD million. Exchange rate: COP 2.585,11 COLGAAP IFRS S14 1S S14 1S S14 1S15 21

22 Margins Net Income Consolidated Income Statement USD million. Exchange rate: COP 2.585,11 COLGAAP IFRS S14 1S15 69% 68% 56% 58% 56% 56% 50% 47% 8% 6% 43% 48% 47% 46% 13% 15% 16% 13,40% S14 1S15 Net Margin Operating Margin EBITDA Margin 22

23 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% 23

24 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% 24

25 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 2015 Stable outlook May

26 An investment of USD million supports future growth... Long-term investment plan ensures ongoing growth COLOMBIA PERU BRAZIL CHILE OTHERS COP million USD million Projections: July TRM Breakdown COP billions by country COP % Colombia ,9 Peru ,5 Brazil ,3 Chile ,2 Others 12 0,1 by business COP % Energy ,7 Toll Roads 167 1,7 Telecommunications 392 4,0 SMRTS 159 1,6 26

27 Investor Relations Contact Website Telephone /ISAAvanza Interconexión Eléctrica ISA /CanalISAAvanza 27

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