INSTITUTIONAL PRESENTATION 2 Q 1 9 | R E S U L T S
ISA CTEEP ISA CTEEP in the Transmission Sector Sustainable Value Financial Highlights
WHY INVEST IN ISA CTEEP? Strong Cash Growth Generation Opportunities in retrofitting, No demand greenfield projects risk and no and M&A default risk Profitability Dividends Sustainable value creation Minimum payout of 75% (regulatory net income) Investment Grade Fitch: AAA(bra) Benchmark Reference Company in quality and O&M Valuation Attractive valuation
ISA CTEEP IE Garanhuns 51% Revenue² : BRL 2,579 million Revenue² : BRL 46 million IE Pinheiros 100% IENNE 100% Largest publicly traded pure transmission Revenue² : BRL 57 million utility in Brazil Revenue² : BRL 46 million IE Serra do Japi 100% Transmission of ~ 25% of Brazil’s power Revenue² : BRL 59 million IE Madeira IEMG generation 51% 100% Revenue²: BRL 261 million Revenue: BRL 19 million Transmission of ~ 100% of the power generated in the State of São Paulo Benchmark player in costs and quality 18.6 thousand km of transmission lines Evrecy 100% 126 substations Revenue² : BRL 10 million 65.9 thousand MVA of transformation capacity Regulatory Net Revenue¹: BRL 2.9 billion Regulatory EBITDA¹: IE Sul BRL 2.3 billion (margin of 78%) 100% Revenue² : BRL 18 million Notes: ¹ Last 12 months ending on 06/30/2019. Figures consider IE Madeira and IE Garanhuns proportional results to ISA CTEEP’s participation ² 2019/2020 Revenue Cycle proportional to ISA CTEEP’s participation
IE Itaquerê 100% IE Paraguaçu 50% Revenue³ : BRL 51 million Revenue³: BRL 59 million IE Itapura Lorena 100% Revenue³ : BRL 10 million Largest publicly traded pure transmission IE Ivaí IE Itapura Bauru utility in Brazil 100% 50% Revenue³ : BRL 12 million Revenue³ : BRL 146 million Sustainable growth IE Aguapeí IE Tibagi 100% 100% Organic growth: CapEx of around BRL 180 Revenue³ : BRL 59 million million/year Revenue³ : BRL 20 million Greenfield Projects¹: CapEx of BRL 2.9 billion and revenue (RAP) of BRL 490 million/year IE Aimorés 50% + 2 thousand km of transmission lines² Revenue³ : BRL 40 million + 8 thousand MVA of transformation capacity² IE Itaúnas 100% Revenue³ : BRL 52 million IE Biguaçú 100% Revenue³ : BRL 40 million Notes: ¹ ISA CTEEP’s investments in 10 projects acquired in 2016, 2017 and 2018 auctions. CAPEX and 2019/2020 Revenue adjusted to ISA CTEEP’s participation ² Figures consider 100% of the projects ³ Considers 2019/2020 Revenue Cycle adjusted to ISA CTEEP’s participation
A successful story of growth, resilience and performance Winner bid for 5 lots in April auction ISA acquires CTEEP and Extension of Main becomes the Concession Winner bid for controlling CESP spin off creates Contract (059/2001) 2 lots in June shareholder Transmissão Paulista for 30 years auction Transmissão Set up of RBSE Paulista merger compensation Expansion to 17 with EPTE ( Ordinance 120 Brazilian states through Ministry of Mining greenfield projects and and Energy ) acquisitions Winner bid for 3 lots in October auction 1999 2001 2006 2007 2012 2013 2016 2017 2018 2019³ ‘000 km¹ of 18.6 18.6 17.7 15.4 12.3 18.6 11.5 transmission lines Consolidated regulatory EBITDA² 2.3 ICVM 527 in 2.5 1.6 BRL billion 0.1 0.7 1.1 1.6 0.2 0.7 Note: ¹ Information considers 100% of the projects ² Figures c onsider JV’s proportional results to ISA CTEEP’s participation ³ Last 12 months ending on 06/30/2019
Shareholder Structure on 06/30/2019 Tickers: TRPL3¹ and TRPL4² Corporate Governance: Level 1 at B3 Common shares: 257,937,732 Preferred shares: 400,945,572 Average daily volume in 1H19: Total: 658,883,304 BRL 31 million ISA CTEEP Market cap³: BRL 17 billion 35.8% 64.2% ISA Free Float Distribution of capital: 54% of foreign investors CONTROLLED BY ISA Common shares: 10.5% Common shares: 89.5% 46% of Brazilian investors Preferred shares: 98.7% Preferred shares: 1.3% FREE FLOAT OF 64% ADRs: “CTPTY” and “CTPZY” Coverage of 12 institutions : 75% Hold 35.4% 28.8% 25% Sell Eletrobras Others Common shares: 9.8% Common shares: 0.7% Preferred shares: 51.9% Preferred shares: 46.8% Notes: ¹ Common share l ² Preferred share l ³On 06/30/2019
ISA A multilatina company focused in INTERCONEXIÓN ELÉCTRICA, transmission with growth S.A.E.S.P . opportunities in Brazil ISA CTEEP represents 36% of ISA’s¹ net income 86% of Net Income in Transmission Colombia Central 27% of net income America The largest energy transmission Transmission Transmission company in Colombia and Peru Telecom Telecom Highway concessions Business in Highway concessions, Real Time Real Time Systems Systems and Telecom Benchmark player in the sector 45,142 km of transmission lines Peru 90,821 MVA of transformation capacity 15% of net income Transmission 907 km of highways Telecom Controlled by the Colombian government (51% of shares) Brazil 33% of net income Transmission Market Cap: USD 6 billion² Telecom Chile 25% of net income Transmission Telecom Highway concessions Bolivia Argentina Transmission Telecom Solid Presence in Latin America: 7 countries , 4 sectors , Notes: ¹ Considers 2018 IFRS Results adjusted by 43 companies participation l ² On 06/30/2019
ISA CTEEP and its subsidiaries Assured CORPORATE Annual Revenue (RAP) 2019/2020 Cycle of STRUCTURE BRL 4.1 billion RAP Cycle RAP ISA CTEEP Location Profit Regime Share (%) Consolidation Cycle 2019/2020 2019/2020 (BRL million) (BRL million) ISA CTEEP Operational São Paulo 2,579 2,579 Real Profit ISA CTEEP 100% Fully consolidated IE Madeira Operational Rondônia / SP 510 260 Real Profit ISA CTEEP 51% / Furnas 24,5% / Chesf 24,5% Equity method IE Ivaí Under construction Paraná 292 146 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Paraguaçu Under construction Bahia / MG 118 59 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Garanhuns Operational Pernambuco 91 46 Real Profit ISA CTEEP 51% / Chesf 49% Equity method IE Aimorés Under construction Minas Gerais 80 40 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Pinheiros Operational São Paulo 58 58 Presumed Profit ISA CTEEP 100% Fully consolidated IE Serra do Japi Operational São Paulo 59 59 Presumed Profit ISA CTEEP 100% Fully consolidated IE Aguapeí Under construction São Paulo 57 57 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itaúnas Under construction Espírito Santo 52 52 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itaquerê Under construction São Paulo 51 51 Presumed Profit ISA CTEEP 100% Fully consolidated IENNE Operational Tocantins 46 46 Presumed Profit ISA CTEEP 100% Fully consolidated IE Biguaçu Under construction Santa Catarina 40 40 Presumed Profit ISA CTEEP 100% Fully consolidated IE Tibagi Under construction SP / Paraná 20 20 Presumed Profit ISA CTEEP 100% Fully consolidated IE Sul Operational Rio Grande do Sul 19 19 Real Profit ISA CTEEP 100% Fully consolidated IEMG Operational Minas Gerais 18 18 Presumed Profit ISA CTEEP 100% Fully consolidated Evrecy Operational Espírito Santo 12 12 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Bauru Under construction São Paulo 10 10 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Lorena Under construction São Paulo 10 10 Presumed Profit ISA CTEEP 100% Fully consolidated Total 4,124 3,584
Corporate Governance Structure Shareholders Ethics and Transparency recognized at ISA Board of Directors Board of Auditors and at ISA CTEEP 8 effective members, of 5 effective members levels which 2 are independent and 5 substitute and one is elected by the members employees Experienced Human Resources Audit Management team Committee Committee focused on value creation CEO 2018 César Ramirez (temporary) Transparency Trophy from ANEFAC Institutional Relations CFO and IRO Project Director COO Department Alessandro Gregori Filho Carlos Ribeiro Weberson Abreu Rafael Noda
CONNECTIONS THAT CREATE VALUE THROUGH ACTIONS JAGUAR CONNECTION: Forest projects that reduce the impact of greenhouse gases Climate change mitigation Conservation of biodiversity in jaguar’s habitat SOCIAL RESPONSIBILITY: Sponsorship with tax benefit ~BRL 15 million in investments in 2018 Projects related to Youth Leadership, Local Development, and the Environment Educational Focus CONEXIONS THAT INSPIRE
C O N N E C T I O N S T O G E N E R A T E S U S T A I N A B L E V A L U E Ancillary Services Energy Storage Real Estate Opportunities Digitalization Operational safety optimization with cost reduction through substation teleassistance and retrofitting EFFICIENCY NEW BUSINESSES
ISA CTEEP ISA CTEEP in the Transmission Sector Sustainable Value Financial Highlights
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