1Q20 RESULTS PRESENTATION Disclaimer The statements contained in - PowerPoint PPT Presentation

1Q20 RESULTS PRESENTATION

Disclaimer The statements contained in this report regarding the business outlook of ISA CTEEP (“ISA CTEEP”, “CTEEP”, “Company”), the projections and their growth potential are based on mere forecasts and were based on management's expectations in regarding the Company's future. These expectations are highly dependent on changes in the market, in the general economic performance of the country, the sector and international markets, and are subject to change. The financial information was prepared in accordance with CVM (Brazilian Securities and Exchange) rules and CPCs, and it is in compliance with international accounting standards (IFRS) issued by the International Accounting Standard Board (IASB). The Regulatory Result is presented in accordance with accounting practices adopted in Brazil. The purpose of disclosing the Regulatory Result is merely to collaborate to understand ISA CTEEP's business. Sums may differ due to rounding. The Regulatory result is audited only at the end of each fiscal year by the independent auditors. 2

Management focus on the pandemic Priority is to care for our people and society, and to continue to provide the essential energy transmission service Operation executed with Cleaning and sanitization Analysis of the potential impact of minimal employees and service reinforcement in all work pandemic on 2020 budget with providers face to face, and environment and functional different scenarios for resuming home office orientation transportation activities Risk assessment for all operations Creation of a “Health Channel” Backup Operation Center and and establishment of a Crisis to assist employees and hiring teams division with protocols Committee of an infectologist to validate for shift exchanges in the the protocols operating room BRL1.5 million donation to the Oswaldo Cruz Foundation to Daily health monitoring of all Employees and service produce quick test for detecting employees through an app providers orientation to the disease maintain the adequate distance Social and emotional support Voluntary employee contribution activities: PASS support and program to participate actively Yoga and relaxation classes Restrictions in national and against COVID-19. The funds will international travels, events be used to purchase equipment to participation, and external visits reinforce hospital facilities Risk to execute growth projects in the ISA CTEEP's challenging schedule 3

Growth - Greenfield Projects ANEEL investment of ~BRL5 billion and revenue of BRL567 million in the 2019/2020 cycle IE Tibagi IE Paraguaçú IE Itaúnas IE Ivaí IE Itaquerê IE Aimorés ANEEL construction term: Aug/21 ANEEL construction term: Feb/22 ANEEL construction term: Aug/22 ANEEL construction term: Aug/21 ANEEL construction term: Feb/22 ANEEL construction term: Feb/22 Tax: Presumed Profit Tax: Real Profit¹ Tax: Real Profit Tax: Presumed Profit Tax: Real Profit¹ Tax: Presumed Profit 100% 100% 99% 95% 100% 100% 100% 100% 100% 99% 100% 100% 97% 75% 70% 57% 46% 31% IL Land Project IL Land Project IL Land Project IL Land Project IL Land Project IL Land Project IE Itapura IE Aguapeí Três Lagoas Triângulo Mineiro IE Biguaçu Minuano Lorena ANEEL construction term: Aug/21 ANEEL construction term: Dec/24 ANEEL construction term: Jun/23 ANEEL construction term: Dec/24 ANEEL construction term: Sep/22 ANEEL construction term: Sep/23 Tax: Presumed Profit Tax: Presumed Profit Tax: Presumed Profit Tax: Presumed Profit Tax: Presumed Profit Tax: Presumed Profit 100% 100% 100% 100% In progress In progress In progress In progress In progress In progress In progress In progress 73% 64% 28% 5% 6% 5% IL Land Project IL Land Project IL Land Project IL Land Project IL Land Project IL Land Project Opportunity to generate sustainable value with projects that will contribute to the expansion and security of Brazil's electricity transmission system ¹ “ Sudene ” tax benefit IL: Installation License Land: Released properties 4 Project: Evolution of all activities related to the enterprise until it starts up

Organic Growth Growth through retrofitting projects¹ Retrofitting projects: Growth without competition BRL7 million invested in 1Q20 Risk to delay startup of projects due to the pandemic Average investment of ~BRL180 million/year with average revenue of ~BRL50 million/year (average of last 5 years) ~ BRL500 million already authorized by ANEEL to be executed by ISA CTEEP in the upcoming years Asset renewal opportunity Ten Year Energy Plan (PDE) 2029 Investment opportunity of ~BRL70 billion in retrofitting projects expected by 2029 and ~BRL38 billion in greenfield projects Two auctions were planned in 2020 with investments estimated at BRL11 billion Auction scheduled for mid 2020 has been postponed. Opportunity to generate sustainable value with projects that will contribute to the expansion and security of Brazil's electricity transmission system ¹ Retrofitting projects consist in upgrading assets to improve transmission service and investments to ensure higher quality service 5

Periodic Tariff Reset (PTR) - Contract 059 Opening of PTR Public Consultation with contribution deadline on May 15, 2020. The PTR will be applied in the 2020/2021 cycle with retroactive effect as of 2018/2019 cycle Reduction of 0.2% in the 2018/2019 revenue cycle, from BRL2,453 million to BRL2,449 million (base date: June 2018), and adjustment parcel with positive impact of BRL 110 million, to be diluted over the next 3 adjustment cycles. ISA CTEEP is the Transco benchmark company • 17% O&M revenue reduction over the cycle (5 years), from BRL750 million (2017/2018 cycle) to BRL620 • O&M million (2022/2023 cycle). O&M revenue considers a 34% efficiency premium. Value does not consider the margin • The WACC defined in the new methodology for the transmission sector is 7.71% for 2018, 7.40% for • 2019 and 6.96% for 2020. 2018 WACC will be used for the PTR of contract 059 WACC WACC increase from 6.64% to 7.71% has a positive impact on the 2018/2019 revenue cycle of about • BRL80 million¹ Regulatory ANEEL Price Reference update was approved in February/2019 • Evaluation report of assets with new Price Reference has been under ANEEL inspection since 3/30/20 • Asset base ANEEL indicates a reduction of BRL4 million in ISA CTEEP’s 2018/2019 revenue cycle due to the PTR ¹Resulting from the higher remuneration of the Company's asset base (RBNI and RBSE) according to the report presented in the PTR process (filed in Jul/19). Value does not consider possible 6 impacts of the new regulatory WACC on the Financial Component of RBSE. Base date of Jan/20. Non-linearized revenue.

1Q20 Results Main financial indicators reflect robust result in the quarter Adjusted Net Income 2 Net Revenue Adjusted EBITDA¹ PMSO (BRL million) (BRL million) (BRL million) (BRL million) +6% 734 +34% 730 +10% -2% 694 674 345 671 133 130 128 615 309 230 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Margin 81% 83% 88% Note: Results in regulatory accounting Operational Highlights Focus on efficiency, quality and safety Availability: 99.99988% in 1Q20 Non-supplied energy index: 0.0001% ISA CTEEP vs 0.003%³ SIN Strong results allow the growth strategy to advance with sustainable value creation 7 ¹ Excludes equity income and other non recurring effects and includes the proportional EBITDA to its participation in affiliates ² Excludes non-controlling shareholder participation ³ SIN information available only for the month of January 2020

Financial Strength Robust financial position Regulatory Debt Profile on 3/31/2020 Gross Debt: BRL3.4 billion • Cash¹: BRL767 million ▪ Net Debt: BRL2.7 billion • Average cost of debt: 6.4% p.a • Average term: 3.8 years • Net debt / Adjusted EBITDA: 1.1x • Gross Debt amortization schedule (BRL Million) 1,237 725 613 396 250 82 78 51 Investment Grade: AAA (bra) 9M20 2021 2022 2023 2024 2025 2026 to 2030 to 2029 2032 Competitive capital structure allows funding at a competitive cost and leverages return on investments 8 ¹ Considers parent company and subsidiaries

Return to Shareholders Minimum payout¹ of 75%, limited to the leverage of 3x Net Debt/EBITDA Dividends of BRL150 million announced in April This amount will be imputed to the mandatory dividends for the fiscal year 2020 2020 estimated schedule for dividends announcement: ▪ April ▪ July ▪ October ▪ December (with payment in 2021) Cash generation allows sustainable growth and dividends 9 ¹ Regulatory Accounting

Why to invest in ISA CTEEP Growth strategy with sustainable value creation to be shared with stakeholders Growth with sustainable New energy businesses value creation Auctions / M&A ▪ Basic network access – “ Conexão Plus” ▪ Retrofitting Projects ▪ Real Estate ▪ Social and Operational excellence and Existing assets management environmental impact efficiency Biodiversity conservation and ▪ Tariff Reset ▪ Digitalization ▪ climate change mitigation program - RBSE (Financial Component 1 st Jaguar Connection Project in ▪ Asset Renewal ▪ Remuneration) Brazil Law 4819 / SEFAZ ▪ Maximize value creation to share with stakeholders 10

INVESTOR RELATIONS e-mail: ri@isacteep.com.br phone: +55 11 3138-7407 www.isacteep.com.br/ir