Corporate Presentation August, 2014

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Transcription:

Corporate Presentation August, 2014

Evolution of ISA 1967 1971 1977 1982 1984 The Colombian Government endorses establishment of ISA to develop high-voltage energy transmission and generation projects. ISA operates the first regional integration system at 230 kv (537 km). ISA puts in operation the Central Network at 230 kv (537 km). ISA ventures into the energy generation business. ISA operates Chivor Hydroelectric Plant (1.000 MW). ISA commissions the first stage of San Carlos Hydroelectric Plant (620 MW). ISA operates the National Telecommunications and Control Center. 1985 1988 1991 1992 1994 ISA operates the interconnection between the country s central and the Atlantic coast regions (500 kv). ISA concludes development of the hydroelectric complex in the Eastern region of Antioquia province: San Carlos, Jaguas and Calderas (1.428 MW). The State acquires 51% ownership of ISA. ISA operates the Colombia-Venezuela international interconnection (230 kv). The Shareholders Meeting approves spin-off of ISA and establishment of ISAGEN S.A. E.S.P with the generation assets. 1995 1996 1998 1999 Beginning of the Wholesale Energy Market, the Energy Pool and the Commercial Settlement System. The Shareholders s Meeting approves legal transformation of ISA into a State Industrial and Commercial Company with authorization to attract private capital. Venture intothe telecommunications market as carrier s carrier. ISA operates the Colombia - Ecuador international interconnection (230 kv) Acquisition of 65% of energy transport assets of CORELCA. Establishment of TRANSELCA (Colombian Atlantic Coast). ISA commissions the satellite network and second stage of the fiber optics project. 2

Evolution of ISA 2000 2001 First public listing program - ISA, Shares for All. 62.000 new shareholders and 115 million shares sold. Entrance to international markets after winning public bidding in Peru to build 373 km of lines and expand substations. Beginning of commercial operation of INTERNEXA, the telecommunications subsidiary that provides carrier s carrier services in Colombia. Installation of Arcos undersea cable to interconnect Colombia with North, Central and South America and the Caribbean (8.600 km of fiber optics). Filing as economic group with ISA as parent company, Transelca, Internexa and First Mark Communications Co. as subsidiaries, and ISA Perú as affiliate. 2002 2003 Second offer of shares of the program ISA, Shares for All. 120 million shares sold to 47.000 Colombians. Construction, in association with Transelectric, of international interconnection at 230 kv between Colombia and Ecuador. The Peruvian Government awards concession for electric transmission systems (ETECEN and ETESUR). Establishment of Red de Energía del Perú REP Beginning of operations of Transnexa, company engaged in telecommunications traffic between Colombia and Ecuador. Scheme for International Electricity Transactions TIE between Ecuador and Colombia becomes operational. ISA wins in Bolivia bidding to construct and operate five substations and three energy transmission lines (604 km). Establishment of ISA Bolivia. 2004 2005 Filing of ADR Level I with the United States Securities and Exchange Commission. REP concludes construction of Peruvian segment of the electric interconnection project integrating Peru with Ecuador. Subscription to the Global Compact promoted by the United Nations. Establishment of XM, Compañía de Expertos en Mercados S.A. E.S.P. to operate the National Interconnected System and administer the Wholesale Energy Market. Participation in Empresa Propietaria de la Red EPR (1,830 km of transmission lines at 230 kv in Central America). 3

Evolution of ISA 2006 2007 Arrival to the Brazilian market with purchase of 50,1% of common shares of CTEEP through investment vehicle ISA Capital do Brasil Ltda. In association with Empresa de Energía de Bogotá, acquisition of 100% of share capital of Consorcio Transmantaro, a Peruvian energy transmission company. Consolidation of CTEEP ownership with 89,40% of common shares and 37,46% of total capital of the company. Internationalization of telecommunications business begins with establishment of INTERNEXA Perú S.A. The Board of Directors formalizes public offer of common stock (56 million shares through book building). 2008 2009 Adoption of new corporate visual identity in accordance with the business strategy (linear infrastructure systems). CTEEP is awarded concession of Porto Velho - Araraquara 2 transmission line (2.375 km and 600 kv). ISA ADRs are quoted on international electronic platform OTCQX. INTERNEXA purchased 90% of shares of Comunicaciones Intermedias S.A., thus holding title to fiber optics networks and nodes connecting important Chilean cities. Interconexión Eléctrica Colombia Panamá S.A. ICP starts activities in Panama City, in association with ETESA S.A., seeking to make possible bi-national power integration. The Board of Directors formalizes public offer of common stock (32 million shares through book building). 4

Evolution of ISA 2010 2011 The State, represented by INCO, and ISA subscribe contract to develop the Autopistas de la Montaña project. ISA shall conduct studies and develop four road corridors about 1.000 km long. Subscription of incorporation deed of DERIVEX S.A., a subsidiary of XM and the Colombian Stock Exchange that administers the energy-commodities derivatives market. Formalization with Cintra Infraestructuras S.A., Ferrovial s highway subsidiary, of sale document to acquire 60% of Cintra Chile Ltda., a company controlling five highway concessions in that country. INTERNEXA purchases telecommunications connectivity infrastructure in Brazil and Argentina (6.000 km of fiber optics network). XM and ISA incorporate Sistemas Inteligentes en Red S.A.S. to carry out activities related to management, operation and administration of a mobility management center for Medellin City. ISA purchases remaining 40% of INTERVIAL CHILE. INTERNEXA developed a strategy that will permit it to become the distribution leader in Latin America of relevant digital content. 2012 2013 ISA arrives to the Chilean electric energy transport market after winning three projects totaling 743 km of 500 kv double-circuit lines. Incorporation of INTERCHILE ISA won a new bid in Peru to design, finance, build, operate and maintain the Mantaro Marcona Socabaya Montalvo transmission line at 500 kv (920 km) and its associated substations, the largest concession ProInversión had granted to this date. This project will be executed by Transmantaro. In Chile, ISA was awarded a new public international bid to design, finance, build, operate and maintain the Encuentro Lagunas project at 220 kv (174 km), which will strengthen the Chilean power system in the country s North improving service quality and reliability. The new project will be undertaken by INTERCHILE. As part of its expansion strategy to complement its value offer and expand its customer portfolio, INTERNEXA S.A., a subsidiary of ISA, acquired an information transport network company currently operating in the State of Rio de Janeiro, Brazil. The transaction totaled BRL 190 million. 5

Evolution of ISA 2013 ISA and its new role ISA started in 2013 a Strategic Update process which separated the corporate strategic issues in one parent company, ISA, and those related to operation and maintenance in one subsidiary INTERCOLOMBIA that will be engaged in energy transport in the country. ISA, as corporate center, will focus on the functions of guiding the group s actions, profitably administering the portfolio of growth opportunities, defining the big corporate choices, providing competitive guidance to the companies, and establishing the action framework that will characterize the management and practices to be applied in relevant processes. 2014 INTERCOLOMBIA, ISA s new subsidiary, started commercial operations on January 1st. ISA, leader in pollutant emissions compensation. ISA received the CarbonNeutral Certification for having compensated its emission of greenhouse gases during 2012 through bonds purchase to South Pole Carbon, a world leader in carbon compensation. By compensating its carbon footprint in the energy transport business, ISA assumes a new environmental and social commitment. ISA wins in Peru a new public bidding to design, finance, construct, operate and maintain a 16.9 km transmission line at 220 kv to be executed by Consorcio Transmantaro CTM. 6

Evolution of ISA 2014 Fitch Ratings rating agency upheld the AAA (col) rating for ISA s bond program and the F1+ (col) rating for commercial papers. Additionally, Fitch Ratings International upheld the international corporate BBB rating for local and foreign currency. Outlook for all ratings remained Stable. ISA won public bidding opened by UPME for the design, procurement, construction, operation and maintenance of the connection of the Reforma substation to the Guavio Tunal 230 kv circuit, approximately 1 km in length. UPME awarded ISA, subject to revision by CREG, the project for the design, procurement, construction and maintenance of the Montería Substation at 230 kv and its associated transmission lines (195 km approx.) with connection of existing Chinú and Urabá substations. REP successfully placed corporate bonds for USD 20 million in the Peruvian capital market. ISA s company REP inaugurated an energy transmission mega work in Peru. The 325 km Trujillo-Chiclayo transmission line at 500 kv was executed by Consorcio Transmantaro. Moody s Investors Service improved from Baa3 to Baa2 ISA s issuer ratings. Simultaneously, Moody s increased ISA s basis for credit assessment BCA from Baa3 to Baa2. Outlook is stable. ISA won in Lima a new public bidding that will generate USD 5.7 million annual revenue. It comprises a 90.5 km electric line at 220 kv and a new substation at 220/60 kv. Consorcio Transmantaro CTM will execute the project. 7

About Us Presence in 8 countries 4 business units 33 subsidiaries and affiliates 3.821 employees 41.185 km of high-voltage grid in operation 6.689 km under construction Transformation in operation: 76.407 MVA Transformation under construction: 16.070 MVA 29.000 km of fiber optics in operation 907 km of road infrastructure in operation Operation coordination of 24.457 km of transmission lines Mobility control for Medellín and its five townships 8

ISA in Latin America Business units and companies COLOMBIA ISA INTERCOLOMBIA TRANSELCA INTERNEXA XM Sistemas Inteligentes en Red Derivex, 49,95% investment through XM and 0,025% through INTERNEXA ECUADOR TRANSNEXA, 5% investment through INTERNEXA and 45% through INTERNEXA (Perú) PERU REP Transmantaro ISA Perú Proyectos de Infraestructura del Perú INTERNEXA CHILE INTERCHILE INTERNEXA INTERVIAL CHILE Ruta del Maipo Ruta del Maule Ruta del Bosque Ruta de la Araucanía Ruta de los Ríos ISA Inversiones Chile ISA Inversiones Maule ECONOMIC GROUP ELECTRIC ENERGY TRANSPORT TELECOMMUNICATIONS TRANSPORT ROAD CONCESSIONS SMART MANAGEMENT OF REAL TIME SYSTEMS INVESTMENT VEHICLE CENTRAL AMERICA EPR, ISA s investment (11,11%) Interconexión Eléctrica Colombia - Panamá, ISA investment (50%) REDCA, ISA s investment (11,11%) through INTERNEXA BRAZIL CTEEP IEMG PINHEIROS SERRA DO JAPI EVRECY INTERNEXA NQT IPNET ISA Capital do Brasil INTERNEXA Participações BOLIVIA ISA Bolivia ARGENTINA Internexa 9

Our shareholders Shareholding as on June 30, 2014 Investors Number of shares June 30, 2014 % State investors 682.078.108 61,58 The State 569.472.561 51,41 EPM 112.605.547 10,17 State and private capital investors 77.373.530 6,99 ECOPETROL S.A. 58.925.480 5,32 Empresa de Energía de Bogotá 18.448.050 1,67 Private investors 348.226.256 31.44 Institutional investors 207.425.511 18,73 Individuals 67.884.572 6,13 Legal entities 12.988.430 1,17 Foreign Investment Funds 58.872.193 5,31 ISA ADR Program 1.055.550 0,10 Outstanding subscribed and paid share capital 1.107.677.894 100,00% 10

Our Partners In the Electric Energy Transport companies Peru: REP y Transmantaro EEB 40% Brazil: Interligação Elétrica Norte e Nordeste S.A. IENNE CYMI Holding 25,00% ISOLUX Energía 50,00% Interligação Elétrica Sul S.A. IESUL CYMI Holding 49,90% Interligação Elétrica do Madeira S.A. IEMADEIRA Furnas Centrais Elétricas S.A Furnas 24,50% Companhia Hidro Elétrica do São Francisco CHESF 24,50% Interligação Elétrica Garanhuns S.A. IEGARANHUNS Companhia Hidro Elétrica do São Francisco CHESF 49,00% CTEEP São Paulo Secretaria da Fazenda 6,12% Centrais El Bras SA Eletrobras 35,23% Vinci Equities Gestora de Recursos Ltda 3,80% ISA Capital do Brasil S.A. (investment vehicle) HSBC Bank 17,21% Votorantim Bank 17,21% Central America: EPR INDE of Guatemala 11,11% CEL and ETESAL of El Salvador 11,11% ENEE of Honduras 11,11% ENATREL of Nicaragua 11,11% ICE of Costa Rica 11,11% ETESA of Panama 11,11% ENDESA Latinoamérica of Spain 11,11% CFE of Mexico 11,11% Colombia: Interconexión Eléctrica Colombia Panamá S.A.S ETESA: 50% Panama: Interconexión Eléctrica Colombia - Panamá ICP ETESA: 50% 11

Distribution of average payroll August, 2014 5,8% XM and subordinate company 7,5% INTERNEXA and subordinate companies 5,0% TRANSELCA 0,5% 9,9% REP 41,0% CTEEP and affiliates 9,3% INTERVIAL CHILE and concessionaires 13,9% INTERCOLOMBIA 4,4% ISA 0,9% 1,9% ISA Bolivia PDI Perú INTERCHILE 12

Integrated Management System SIG Certifications* Business Units Companies ISO 9001 ISO 14001 OHSAS 18001 ISO 27001 Electric Energy Transport ISA INTERCOLOMBIA CTEEP REP TRANSELCA ISA Bolivia PDI (1) (1) * * (1) (1) Telecommunications Transport INTERNEXA Toll-Road Concessions INTERVIAL CHILE Real-Time Systems Smart Management XM 13 Conventions: Certified Under process * As on June 2014 (1) Construction of Infrastructure Projects process pending

Comprehensive Risk Management ISA and its companies identify, evaluate, manage and disclose the main risks they are exposed to Risk map of ISA and its companies Operating Risks Human and procedural errors Equipment faults and failures Road infrastructure failures TIC unavailability Fraud Environmental Land and easement management Operating Risks Strategic Risks Environmental Risks Strategic Risks Financial Legal and regulatory Reputational Human capital Breach of contract Governance Growth Environmental Risks Natural phenomena Socio-political 14

Corporate Social Responsibility Commitments to the stakeholders Shareholders: Profitable growth and creation of value. Suppliers: Transparency, equity and clear rules. Society: Respect for human rights, efficiency and quality of services, timely disclosure of public-interest information, and contribution to sustainable development and social well-being. Associates: Contributing to their integral development and valuing their contribution to the organization. State: Respect and promote the rule of law. Customers: Sustainable relation, competitive quality and costs, and reliable communication. 15

Good Corporate Governance Good Governance Practices Corporate Governance Boards of Directors and Administration Councils abide by local regulations and comply with the proportion for independent members prescribed by capital market regulations. Periodic scheduling of meetings of Boards of Directors and Administration Councils: mechanisms for reporting and accountability. Strict and transparent compliance with obligations to society and its government. Respect for the rights of minority shareholders and creditors. Disclosure, awareness and interiorization of the corporate framework: mission, vision, values, code of ethics, policies, guidelines, corporate guides, Good Governance Code, etc. Management Governance Parent Company focused on exercising its functions: organization engaged in directing and advising its companies, and ensuring addition of value from and towards them. Parent-company organizational structure: mechanism that promotes agility, flexibility, exchange of knowledge, capture of synergies and scale economies. Corporate-scope committees: mechanisms that comprehensively ensure alignment, strategic coherence and exchange of good practices between the parent company and its companies. Guidelines for achieving unit of purpose and direction permitting optimal use of resources to contribute to efficiency and profitability. Express definition of how to handle conflicts of interest. 16

Strategic direction Mission ISA has as its mission the highly efficient development and operation of linear infrastructure systems where it has differential capacities and advantages based on the advancement of its human talent and innovation capacity to create value for its shareholders and other stakeholders and contribute to the sustainable development of the societies where it is present. Vision In the year 2020, ISA will have tripled its earnings by capturing the most profitable growth opportunities in its current business areas in Latin America, promoting operational efficiency and optimizing its business portfolio. ISA s profitability will be higher than the cost of its equity, a trend sustainable along time. In the Energy Transport Business Unit, ISA will remain as the operator with the largest presence in Latin America, will consolidate its position in the region and will reach levels of operational efficiency that are consistent with worldwide best practices. In the Telecommunications Transport Business Unit, ISA will consolidate its leadership as an independent transporter in Latin America and will have developed an IP ecosystem in the region. ISA will expand its Real-Time Systems Smart Management towards new services, accessing highly profitable new opportunities in other business areas. In the Road Concessions Business Unit, ISA will seize regional opportunities, focusing on Colombia. Strategic pivots Capture of growth opportunities with superior profitability. Improvement of current and core business profitability. Dynamic adjustment of geography and business portfolio 17

Business Units Business Unit Description Revenue* EBITDA* Assets* Energy Transport ISA, through its companies, operates and maintains its electric energy network with high levels of availability, reliability and quality. The business unit s management is supported on strict and outstanding processes, safe to people, and both environmentally balanced and socially responsible. USD 1.276 USD 666 USD 8.283 Toll-Road Concessions ISA structures, designs, constructs, operates, maintains, and exploits urban and interurban roads in markets where it can be relevant. Operation and maintenance are performed according to standards previously established by the business regulators in each of the countries where ISA is present and are based on processes that guarantee operational excellence and safety for users. USD 477 USD 362 USD 4.513 *Figures in millions of US Dollars. December, 2013. 18

Business Units Business Unit Description Revenue* EBITDA* Assets* Telecommunications Transport The participation of ISA in this business is materialized through INTERNEXA, the carrier s carrier with the continent s largest land continuous network. INTERNEXA has developed a strategy that will permit it to become the distribution leader in Latin America of relevant digital content. Accordingly, INTERNEXA has consolidated as a unique provider that allows access to the most sought-after contents by Latin American users in a direct and integrated manner. USD 71 USD 14 USD 340 Real-Time Systems Smart Management The power sector relies on the operation of the National Interconnected System and administration of the Energy Market in Colombia, including international electricity transactions with Ecuador. In the Traffic and Transport sector, the Medellin Mobility Management Center is operated under alliance between UNE EPM Telecomunicaciones, the ITS Medellín consortium and XM. In the financial sector, together with the Colombian Stock Exchange, ISA participates in DERIVEX, the company that administers the energy-commodities derivatives market. USD 45 USD 3 USD 133 *Figures in millions of US Dollars. December, 2013. 19

Electric infrastructure projects under construction Colombia: 395 km of circuits 2.745 MVA of transformation Peru: 1.680 km of circuits 1.975 MVA of transformation Brazil: 938 km of circuits 8.200 MVA of transformation USD 285 million USD 625 million USD 850 million Chile: 1.795 km of circuits USD 1.000 million Central America: Partner in EPR (11,11%) 36 km of circuits 20

Consolidated financial figures Consolidated income statement at June 2014 Million of US Dollars* Revenue Operating costs and expenses EBITDA EBITDA Margin Net Income Net Margin Revenue by country Brazil Colombia Peru Chile Bolivia Argentina EBITDA by country Brazil Colombia Peru Chile Bolivia Argentina 966.70 495.57 157.23 576.12 59,60% 16,26% 2 12 221 220 393 119 0 9 76 163 237 91 Market Representative Rate 30/06/2014 (1.881.19) 21

Consolidated financial figures Consolidated balance sheet at June 2014 Million of US Dollars* Assets 13.527 Liabilities 7.530 Equity 2.073 Minority interest 3.924 Assets by country Argentina 6 Bolivia 59 Brazil 3.506 Chile 4.341 Colombia 4.076 Peru 1.539 Market Representative Rate 30/06/2014 (1.881.19) 22

Growth COP 1.000.000 million 23

Access to financial markets Financing alternatives 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Bonds and Promissory Notes Stock Hedging operations ISA s Public Listing, sale No. of shares 2001-115 mm 2002-120 mm ISA SWAP USD 44.3 mm USD 36.5 mm USD 50.1 mm Colombia: ISA and Transelca Filing of Level I ADR NY OTC Market Peru: REP and CTM ISA Commodities Raw materials ISA Capital 144A Reg/S USD 554 mm Issuance of common shares No. shares 56 mm Brazil: CTEEP and Subsidiaries Issuance of common shares No. of shares 32 mm ISA Capital Tender Offer USD 522.3 mm CTEEP SWAP BRL 101 mm -151 mm CTM 144A Reg/S USD 450 mm REP SWAP PEN 104-77 USD 40-30 mm International Project Finance ISA Peru (USD 40.5 mm) ISA Bolivia (USD 54 mm) ISA Bolivia (USD 7 mm) Syndicated and Subordinated Loans ISA (CTEEP) (USD 550 mm) (USD 148 mm) TRANS- MANTARO USD 90 mm TRANS- MANTARO USD 100 mm USD 60 mm RIOS USD 220 mm 24

Credit risk ratings COMPANY Rating type S&P APOYO Y MOODY S FITCH FELLER-RATE PACIFIC EQUILIBRIUM ASOCIADOS CREDIT RATING Corporate BBB (Stable) Jul. 2013 Baa3 (Stable) Dec. 2013 BBB (Stable) May. 2014 ISA Domestic Bond Issues AAA (Stable) May. 2014 Commercial papers F1+ May. 2014 TRANSELCA Domestic Bond Issues AAA (Stable) Apr. 2014 National rating AA - (Stable) Aug. 2013 ISA CAPITAL DO BRASIL CTEEP Corporate International Bond Issues Corporate Bond Issues BB+ (Stable) Aug. 2013 BBB- (Stable) Aug. 2013 AA+ (Stable) Aug. 2013 AA+ (Stable) Aug. 2013 TRANSMANTARO International Bond Issues Baa3 (Stable) Investment grade Apr. 2014 BBB- (Stable) Apr. 2014 REP Bond Issues AAA (Stable) Apr. 2014 AAA (Estable) Apr. 2014 Ruta del MAIPO Bond Issues BBB- (Stable) Apr. 2013 Baa3 (Stable) May. 2014 A (Stable) Jun. 2014 Ruta del MAULE Bond Issues BBB- (Stable) Jun.2014 Baa2 (Stable) May. 2014 A (Stable) Jun. 2014 Ruta del BOSQUE Bond Issues BB+ (Stable) Jun.2014 Baa3 (Stable) Dec. 2013 A- (Stable) Dec. 2013 A (Stable) Jun. 2014 (*) Rating for bonds issued in each country. 25

Behavior of the stock in the market Stockmarket indices YTD At June of 2014 Valuation% 15% 10% 5% 0% -5% -10% -15% -20% -25% 31-Dec 30-Jan 1-Mar 31-Mar 30-Apr 30-May 29-Jun ISA (0,2%) COLCAP (5,4%) MSCI EM Latin America (10,6%) S&P (7,6%) ISA s Market Capitalization March HIGH 9th position At the end of June ISA had 39.384 shareholders Stock quote 2013 closing date dec-30 ISA 9.100 Closing date June, 2014 Minimum quote for 2014 Daily average millions Maximum quote for 2014 May 23, 2014 Minimum quote for 2014 February 20, 2014 9.170 2.898 $9.600 $7.330 26 Market Capitalization Market capitalization (COP MM) Market capitalization (COP USD) ISA 10.157.406 5.386

ISA Accolades 1990 1998 2002 ISA is recognized by Colombia s Junior Chamber as the company with best social projection. The Ministry of Environment awards ISA the National Environmental Award. The Presidency of the Republic and the Ministry of Economic Development grant ISA the Colombian Award for Management Quality. The National General Auditing Office ranks ISA as Exemplary Company for having the best Internal Control System. 2003 2006 ISA is ranked by the Great Place to Work Institute Colombia as best company to work for among State entities. ANALDEX and Proexport honor ISA and CREG with the Exports National Award, Export Project category, for their work in the International Electricity Transactions TIE. Honorable Mention in the ANDESCO Award to Corporate Social Responsibility. 27

ISA Accolades 2009 2011 ISA was honored with the ANDESCO Corporate Social Responsibility Award for best company, and for best social performance for its ISA-Region program. ISA was honored with the ANDESCO Corporate Social Responsibility Award for its social performance and corporate governance. 2012 2013 Along the Latin American Investor Relations Awards, ISA won first place in the Best Investors Website category and third place in the Best Annual Report for Investors and Best Disclosure of Financial Results categories. The Colombian Stock Exchange BVC recognized ISA as the company with the longest term for bond underwriting. ISA improved by 2 points, from 92 to 94, out of 100, corresponding to low risk, its score in the survey of transparency policies and mechanisms for public utilities conducted by Corporación Transparencia por Colombia. The Colombian Stock Exchange delivered ISA the IR Recognition, an initiative that while ratifying the commitment of the company to the market, implies its increased commitment to a management style based on best practices. ISA s Antifraud Code was recognized in the Fourth Round of Good Corporate Transparency Practices, an event led by Corporación Transparencia por Colombia. This good practice adopted by the corporation since 2011, formalizes the strategic will of ISA and its Latin American companies regarding fraud. 28

REP Accolades 2006 2007 Good Corporate Governance Contest Best Conduct towards Internal and External Environment. Leading Company in Management Excellence, Gold Category. National Quality Award. Social and Environmental Management CACIER. 2009 2011 2012 Recognition for Corporate Ethics and Leadership. Award to its commitment to education. Distinction as socially responsible company. Corporate Good Governance Index of the Lima Stock Exchange, an award that symbolizes trust on and recognition to the company in good governance principles. 2013 The company obtained the ABE Seal from Asociación de Buenos Empleadores, sponsored by the American Chamber of Commerce in Peru, which recognizes companies that stand out for their labor practices. 29

CTEEP Accolades 2008 2009 2012 Quality Award (APIMEC/SP). Abrasca Criação de Valor Destaque Setorial Category: Best model for creation of value for shareholders of power sector companies. Selo Assiduidade APIMEC Ouro 11 Años 2012 of Asociación de Analistas y Profesionales de Inversión del Mercado de Capitales de Brasil APIMEC. INTERNEXA Accolades 2012 2013 Metro Ethernet Forum MEF awarded INTERNEXA the MEF 2012 awards in three categories: best carrier ethernet business application, best wholesale ethernet service y regional service provider of the year. XM Accolades 2013 Capacity Media honored INTERNEXA with the Capacity Awards 2012 Best Latin America Wholesale Carrier, a category recognizing the best carriers carrier in the region. For third year in a row, the company was named by Metro Ethernet Forum as Best Regional Service Provider of the Year and Best Wholesale Ethernet Service Provider. This company was honored with the ANDESCO award to Corporate Social Responsibility, Best Small Utilities and Telecommunications Company category. 30

Electric Infrastructure Guate Norte Guate Este El Cajón CENTRAL AMERICA Palmar Santa Marta Norte Parrita PanamáEl Bosque Termocol Veladero Talara Piura Chiclayo Trujillo Tocache Sogamoso Porto Velho Colina COLOMBIA São João do Piaui Garanhuns Country Company Operational circuit km Colombia: ISA 10.369 TRANSELCA 1.586 Peru: REP 6.230 Transmantaro 2.795 ISA Perú 393 Bolivia: ISA Bolivia 587 Brazil: CTEEP 18.893 IEMG 172 PINHEIROS 6 EVRECY 154 Total 41.185 PERU CHILE Carhuamayo Zapallal Pomacocha Mantaro Machu Picchu Marcona Abancay Cotaruse Carrasco Socabaya Arboleda Montalvo Santivañez Urubó Sucre Lagunas Punutuma Encuentro BOLIVIA Cardones Maitencillo Pan de Azúcar Polpaico Gov Valadares Mascarenhas Mesquita Neves 1 Araraquara Jandira El Salto Curitiba Itapeti Joinville Norte Jorge Lacerda B N.S. Rita Sideropolis Scharlau BRAZIL Country Company Transformation MVA Colombia: ISA 12.620 TRANSELCA 3.848 Peru: REP 2.747 Transmantaro 4.925 ISA Perú 235 Bolivia: ISA Bolivia 370 Brazil: CTEEP 45.712 PINHEIROS 3.900 SERRA DO JAPI 1.600 EVRECY 450 Total 76.407 TRANSMISSION LINES IN OPERATION TRANSMISSION LINES UNDER EXECUTION TRANSMISSION LINES UNDER STUDY INTERNATIONAL INTERCONNECTION 31

Road Infrastructure SANTIAGO Talca Chillán Collipulli Temuco Río Bueno CHILE Country Concessions Road km in operation SANTIAGO Talca Chillán Collipulli Temuco Río Bueno Chile: Ruta del Maipo 237 Ruta del Maule 193 Ruta del Bosque 161 Ruta de la Araucanía 144 Ruta de los Ríos 172 Total: 907 ROAD INFRASTRUCTURE IN OPERATION 32

Connectivity Infrastructure for Telecommunications Miami Campos Central america Bogotá Caracas Venezuela Duque de Caixas Teresópolis Petrópolis Macabú Friburgo Magé Niteroi Río de Janeiro São Gonçalo Itaboraí Maricá Araruama Saquarema Macaé Río das Ostras Sâo Pedro da Aldeia Cabo Frio Ecuador Quito Colombia Peru Lima Brazil Country Company Optic fiber km In operacion Chile Argentina Gran Sao Paulo Río de Janeiro Colombia INTERNEXA 6.680 Peru INTERNEXA 4.674 Chile INTERNEXA 2.377 Brazil INTERNEXA 6.811 Argentina Internexa 2.577 Ecuador TRANSNEXA 2.413 Venezuela In association with local operator 1.977 Central America 1.800 Santiago Buenos Aires Total 29.309 ACTUAL NETWORK FUTURE NETWORK UNDERSEA CABLE 33

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