Luis Fernando Alarcn, CEO Carlos Alberto Rodrguez, CFO 2 - PowerPoint PPT Presentation

SECOND QUARTER 2014 RESULTS Medellín, Colombia July 31, 2014 Luis Fernando Alarcón, CEO Carlos Alberto Rodríguez, CFO

2 DISCLAIMER SECOND QUARTER 2014 RESULTS Certain statements contained in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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. As of June 30, 2014, the exchange rate was of USD 1.00 = COP 1,881.19 (Source: Banco de la República de Colombia).

AGENDA Operating Highlights ISA 2020 Second Quarter 2014 Results Q&A 3

HIGHLIGHTS - RELEVANT INFORMATION 4  ISA wins public bidding process in Peru:  220-kV La Planicie - Industriales Transmission Line and Associated Substations.  Design, financing, construction, operation and maintenance of project.  Annual revenues: USD 5.5 million  Entry into operation: 24 months after official awarding date  Term of Concession : 30 years.  Fitch affirmed its AAA(col ) Rating on ISA’s Bond Program and ‘F1+( col ) ’ Rating for Commercial Papers with outlook Stable.  Fitch Ratings International upheld the international corporate BBB rating for local and foreign currency. Outlook remained Stable.

AGENDA Operating Highlights ISA 2020 Second Quarter 2014 Results Q&A

ISA 2020 – IMPLEMENTATION PLAN 6 Executed Planned Projects 2013 2014 2015 2016 2017 2018 2019 2020 ▪ Strategic alignment Alignment ▪ Positioning and reputation (2) ▪ Change management Organz ▪ Corporate separation ▪ Reorganization ▪ TE Asset Management ▪ Opex TE (5) ▪ Capex TE (7) Efficiencies ▪ TE Supply (3) ▪ CV Efficiencies (2) ▪ TELCO Strategy ▪ GISTR Strategy ▪ Support functions (10) TO ▪ Development of capacities (X) Number of projects

ISA 2020 – INVESTMENT OPPORTUNITIES 7 Figures in millions Energy Transmission  Peru , Proinversión projects, 3Q & 4Q 2014.  Colombia , UPME projects, 3Q & 4Q 2014.  Frispata – Mollepata transmission line – USD 43.5.  230 kV Suria Substation - USD 18.3  Línea Azangaro-Puno - USD 80  Reforma Substation – USD 3.5 (awarded to ISA)  Nueva Lurín – USD 20  230 kV Tuluní Substation - USD 15.4 (awarded to a third party)  220 kV Flores-Caracolí-Sabana - USD 20.6  Chile , CDEC-SIC. 3Q 2014 & 2015.  220 kV Chinú-Montería-Urabá - USD 65.2 (in awarding  4 expansion projects for transformer bank and new process to ISA)  500 kV La Loma - USD 29.2 substations – USD 115  Ituango – USD 427.1  SING-SIC Interconnection – USD 400  500 kV Southwestern area reinforcement – USD 291.7  Caribbean area reinforcement - USD 225.88  Second Eastern reinforcement – USD 84.5  Colombia-Panama Interconnection – USD 400  Porce III – USD 15.6  Tuluní – Ambeima 230 kV – USD 41.7  Córdoba River – USD 19 Road concessions  Colombia: ANI projects, Q4 2014. Design, construction, financing and operation of road concessions. ISA-CINTRA Consortium.  Girardot Neiva 400 km - USD 990  Cruz del Viso-Carreto-Palmar de Varela – USD 630  Santana-Mocoa-Neiva - USD 1,290  Bogota-Villavicencio (Sector 1) - USD 1,160  Popayán-Santander de Quilichao - USD 890

LONG-TERM INVESTMENT PLAN 8 Investment in existing assets and awarded projects for the next 7 years is estimated at COP 7,593 billion, or approximately USD 3,817 million. 2,141 1,904 COLOMBIA PERU BRAZIL CHILE OTHERS 1,625 Projections July 2014 830 419 351 324 2014 2015 2016 2017 2018 2019 2020 (in COP billions) Investment by country COP % Investment by business COP % Colombia 1,893 25 Energy 6,435 85 1,731 23 Peru Toll Roads 583 8 Telecommunications 395 5 Brazil 1,929 25 Chile 1,999 26 SMRTS 181 2 41 1 Others

AGENDA Operating Highlights ISA 2020 Second Quarter 2014 Results Q&A

CONSIDERATIONS 10 Second quarter financial results included the following relevant facts: 1. Lower operating expenses in Brazil. 2. Recognition as operating revenue at INTERCOLOMBIA of annuities from UPME projects in virtue of the ISA-INTERCOLOMBIA corporate separation. 3. Amortization completed for the goodwill of ISA Capital do Brasil. Conversion effect of the foreign affiliates’ financial information, which effect tends to be 4. neutralized in the net result. EXCHANGE 2Q13 2Q14 2013 2Q14 Var % Var % RATES aver Aver end end COP / USD 1,826.83 1,960.99 7.3% 1,926.83 1,881.19 -2.4% REAL / USD 2.03 2.30 13.3% 2.34 2.20 -6.0% CLP / USD 478.68 553.06 15.5% 524.61 552.72 5.4% COP / REAL 898.41 853.79 -5.0% 822.52 854.12 3.8% COP/ CLP 3.82 3.55 -7.1% 3.67 3.40 -7.4%

CONSOLIDATED FINANCIAL RESULTS 11 REVENUES 1.8% Total operating 916 900 1,000 revenues reached 800 COP billion COP 915,867 million / 600 USD 487 millions in 400 2Q14. 200 0 2Q13 2Q14 Breakdown by Business – 2Q14 Breakdown by Country – 2Q14 PERU SMRTS OTHERS 12.2% 3.1% 1.4% Telecommu nications 5.7% BRAZIL 22.5% Energy 68.3% COLOMBIA 40.9% Roads CHILE 22.9% 22.9% SMRTS: Smart Management of Real Time Systems

CONSOLIDATED FINANCIAL RESULTS 12 COSTS AND OPERATING EXPENSES Breakdown by Business – 2Q14 SMRTS 550 5.3% Telecommu -0.5% nications 10.1% COP billion 500 477 475 450 Energy Roads 71.5% 13.2% 400 2Q13 2Q14 Breakdown by Country – 2Q14 OTHERS PERU 1.6% Change 12.8% 2Q13 2Q14 (in millions) % AOM Costs and Expenses 376,208 433,346 -13.2% COLOMBIA (ex. Pensions) BRAZIL 41.3% Provisions, Depreciation, Amortization 30.6% 98,326 43,389 126.6% and Pensions Total 474,534 476,736 -0.5% CHILE 13.7%

CONSOLIDATED FINANCIAL RESULTS 13 EBITDA 15.6% 63.9 59.7 60.3 58.9 57.7 540 54.4 51.9 550 500 COP billion 467 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 450 EBITDA Margin 400 2Q13 2Q14 EBITDA reached COP 539,659 million / USD 287 million in 2Q14. Breakdown by Country – 2Q14 Breakdown by Business – 2Q14 PERU OTHERS Telecommu SMRTS 15.6% 1.4% nications 0.8% 2.8% BRAZIL 13.6% COLOMBIA Roads 41.1% 28.4% CHILE Energy 28.2% 68.0%

CONSOLIDATED FINANCIAL RESULTS 14 NON-OPERATING RESULTS 0 -50 Non-operating results COP billion -100 was – COP 123,666 million / – USD 66 million in 2Q14. -124 -150 -26.5% -168 -200 2Q13 2Q14 Breakdown by Country Breakdown by Business (in millions) 2Q14 (in millions) 2Q14 Energy Transmission 10,402 Colombia -30,944 Chile -134,615 Road Concessions -133,941 Brazil 50,344 Telecommunications Transport -501 -7,415 Peru SMRTS 374 -1,036 Other

CONSOLIDATED FINANCIAL RESULTS 15 NET INCOME -4.9% 28.4 25.7 24.7 23.8 147 22.6 150 16.2 140 17.3 11.9 11.0 COP billion 8.6 4.9 16.4 15.3 0.6 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Net Margin Net Margin BMI 100 2Q13 2Q14 Net Income for 2Q14 reached COP 139,997 million / USD 74 million. Breakdown by Business Breakdown by Country (in millions) 2Q14 (in millions) 2Q14 Colombia 117,318 Energy Transmission 117,318 18,656 Chile Road Concessions 18,656 Brazil 2,229 2,229 Telecommunications Transport 1,794 Peru SMRTS 1,794 117,318 Other

CONSOLIDATED BALANCE SHEET 16 Assets by Business - 2Q14 Assets 25,567 25,804 -0.5% 30,000 SMRTS Telecommu 1.1% nications 25,000 2.6% -1.7% 20,000 COP billion Energy 14,411 14,165 Roads 64.4% 31.9% 15,000 5.3% 10,000 3,705 3,900 Assets by Country - 2Q14 5,000 -0.9% OTHERS 7,451 7,383 0.5% PERU 11.4% 0 2013 2Q14 Liabilities Minority interest Equity COLOMBIA 30.1% BRAZIL Assets in 2Q14 totaled $25,447,424 million or 25.9% USD 13,527 million. CHILE 32.1%

CONSOLIDATED FINANCIAL DEBT 17 Var 2Q14 In millions 2013 2Q14 4.25 4.20 4.29 % USD 3.88 3.86 3.62 3.6 CHILE 4,217,278 3,932,967 -6.7 2,091 COLOMBIA 1,788,574 1,763,076 -1.4 937 3.4 3.26 3.12 3.04 BRAZIL 2.90 1,169,464 1,217,438 4.1 647 2.66 2.53 PERU 1,464,947 1,499,180 2.3 797 BOLIVIA 51,134 45,385 -11.2 24 2012 1Q13 2Q13 3Q13 2013 1Q14 2Q14 ARGENTINA 7,071 4,924 -11.2 3 Net Debt / EBITDA EBITDA / Interest TOTAL 8,698,468 8,462,970 -2.7 4,499 Breakdown by Rate Breakdown by Source Breakdown by Currency COP IPCA Fija 19.7% Otras Other 0.6% 16.6% 0.1% 0.8% UF Banks CDI 26.1% 39.7% UF + CLP BRL 8.9% 46.3% 13.5% Capital Market 73.1% IPC DTF USD Libor 15.0% 4.6% 20.5% TJLP TAB 4.7% 6.6% 3.2%

AGENDA Operating Highlights ISA 2020 Second Quarter 2014 Results Q&A

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