financial results fourth quarter 2017 - isa results fourth quarter 2017 ... operation in colombia,...

© ALL RIGHTS RESERVED BY INTERCONEXION ELECTRICA S.A. E.S.P

Financial ResultsFourth Quarter 2017February 27, 2018


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FINANCIALRESULTS 4Q17

AGENDA

➢ 4Q17 Financial Results

➢ Highlights

➢ Q&A

2



3

2.137

1.438

2012COLGAAP

2013COLGAAP

2014NCIF

2015NCIF

2016NCIF

2017NCIF

Net Income

Financial ResultsFigures in COP billions

CONSOLIDATED FIGURES

Net Income 2017

COP 1.438

2017 Net Profit of 2017 is 5.3x of 2012, therebyISA fulfilled the target

defined for 2020



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Financial ResultsFigures in COP billions

4Q17

Operating Revenues

COP 1.667

EBITDA

COP 956Margin 57%

Margin excluding construction 65%

Net Income

COP 269Margin 16%

Margin excluding construction 17%

2017*

COP 6.954

COP 4.43164%

71%

COP 1.43821%

23%

✓Revenue from new projects in operation in Colombia, Peru and Chile and reinforcements in Brazil

✓Incorporation of the results of TAESA

✓ATP capitalization

✓RBSE value update

✓PERT adoption (Tax Regulation Special Program)


* Including PERT and RBSE



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2017 Financial ResultsFigures in COP billions


✓Brazil: ✓RBSE: Value update, financial adjustment and collection of 5 installments.✓PERT Adoption (Tax Regulation Special Program)

✓New projects and reinforcements in operation in Colombia, Chile, Peru and Brazil.

✓Inflation deceleration 2017 vs. 2016.

✓BRL/COP*: ✓4T17: revaluación 0,2%, 4T16: devaluación de 1,4%.✓devaluación de 5,5% en promedio año.

✓CLP/COP*: devaluación de 8,3% en tasas de cierre.

✓Accounting of contributions only in Balance

** reflected in the effect by conversion. does not represent cash



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RevenuesFigures in COP billions

QuarterOperation*: -0,6%Construction: -38,5%

9MOperation*: 17,6%Construction: -40,4%

VARIATIONS

✓New projects in operation in Chile and Peru

✓ Entry into operation of reinforcements in Brazil.

✓RBSE Financial update

* Excluding construction, PERT and RBSE


COP 1.804 COP 1.667

COP 11.893

COP 6.954

4Q16 4Q17 2016 2017

2017

2017

Colombia28,9%

Chile19,3%

Brazil34,6%

Peru15,1%

Others2,0%

Energy 73,0%

Roads18,7%

Telco5,9%

MRTS2,3%



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Operating costs and expensesFigures in COP billions

QuarterOperation*: 1,9%Construction: -39,8%

9MOperation*: -0,4%Construction: -40,4%

VARIATIONS

* Excluding construction, PERT and RBSE


2017

2017

Colombia39,0%

Chile15,4%

Brazil24,7%

Peru18,3%

Others2,6%

Energy 67,7%Roads

13,6%

Telco13,6%

MRTS5,1%

COP 892 COP 1.006

COP 3.638COP 3.119

4Q16 4Q17 2016 2017



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Figures in COP billions

EBITDA

2017

2017

EBITDA Margin

QuarterOperation*: -5,0%

9MOperation*: 24,9%

VARIATIONS

* Excluding PERT and RBSE


Energy 77,0%

Roads19,4%

Telco2,5%

MRTS1,1%Colombia

25,4%

Chile19,5%

Brazil35,6%

Peru17,8%

Others1,6%

COP 1.804 COP 1.667

COP 11.893

COP 6.954

4Q16 4Q17 2016 2017

55,8% 57,4%

67,4%64,5%

4 Q1 6 4 Q1 7

Total Excluding construction



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-COP 237 -COP 252

-COP 1.033 -COP 867

4Q16 4Q17 2016 2017

Financial expensesFigures in COP billions

QuarterOperation: 6,5%

2017Operation: -5,5%

VARIATIONS ✓ Lower expenses in Colombia and Chile linked to lower inflation.

✓ Lower expense from exchange rate difference in Peru.

* Excluding PERTCONSOLIDATED FIGURES

2017

2017

Colombia25,2%

Chile44,6%

Brazil22,0%

Peru7,8%

Others0,4%

2

-21

-427

-530

MRTS

Telco

Roads

Energy



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Net incomeFigures in COP billions

Net Margin %

QuarterOperation: 57,0%

9MOperation: 44,5%

VARIATIONS


2017

2017

Colombia35,6%

Chile21,1%

Brazil24,7%

Peru15,4%

Others3,2%

Energy 77,3%

Roads22,0%

Telco0,1%

MRTS0,7%

COP 1.710

COP 269

COP 2.137

COP 1.438

4Q16 4Q17 2016 2017

9,516,110,6

17,4

4Q16 4Q17Total Excluding construction, RBSE, PERT

* Excluding PERT and RBSE



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38.516

43.409

21.60524.985

7.0487.467

9.864

10.957

2016 2017

Assets Liabilities Minority interest Equity

Balance SheetFigures in COP billions

Assets by business

Assets by country

+12.7%

+5,9%

15,7%


Colombia20,0%

Chile25,4%

Brazil39,7%

Peru14,4%

Others0,5%

Energy 77,6%

Roads19,9%

Telco2,1%

MRTS0,4%

+11,1%



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DebtFigures in COP billion

By currencyBy source

From 3Q16 excludes RBSE recognition and PERT for 3Q17. Includes cash from RBSE


COP 2.848

COP12.829 COP79

COP1.733

COP950 COP104 COP14 COP2 COP339 COP16.016

Capital Market59%

Banks41%

UF+CLP27,4%

USD29,6%

COP27,3%

BRL15,7% 3,9 3,9 4,0

4,5

4,15 4,28

3,6 3,7 3,7 3,8

4,20 4,49

3 Q 1 6 4 Q 1 6 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7

Debt / EBITDA EBITDA / Interest



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CAPEXFigures in COP billions

2018 – 2022 Investments COP 11.874 billion

February 2018

Breakdown by country

%

Colombia 24,9%

Chile 28,0%

Brazil 26,2%

Peru 20,8%

Otros 0,0%

Breakdown by business

%

Energy 73,2%

Telco. 18,1%

Roads 6,1%

MRTS 2,5%

2017 investmentsCOP 3.853 billion


51,0%

23,9%

7,3%

17,7% Colombia

Chile

Brazil

Peru

COP 3.699

COP 2.434

COP 2.971

COP 1.813

COP 956

2018 2019 2020 2021 2022

Colombia Chile Brazil Peru Others



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2017 HighlightsAcquisitions and Investments

ISA won two energy transmission projects in Colombia:1. Copey-Cuestecitas and Copey-Fundación lines.2. Bosque Transformer Bay.

In Chile, ISA won a energy transmission project: New 1x750 MVA 500/220 kV Autotransformer Bank in S/E Nueva Cardones, S/E Nueva Maitencillo and S/E Nueva Pan de Azúcar.

ISA CTEEP won five projects in energy transmission auction in Brazil.

ISA bought 14.88% of the total stake in TAESA.

Acquisition of 26.5% of ATP, and the purchase of Torres Unidas by ATP.

ISA CTEEP acquired 75% of IENNE and stayed with 100% of the company.

ISA subsidiary presented the best offer for LOA road routes in Chile.

ISA won a new energy transmission project in Peru:

Transmission lines Mantaro-Nueva Yanango-Carapongo and Nueva Yanango-Nueva Huánuco and the associated substations.



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2017 Highlights

✓ ALAS20 2017: Leading company in investor relations and sustainability.

✓ ISA was included in the Sustainability Yearbook for the third consecutive year.

✓ America Economía awarded ISA the "Multilatin Company of the Year" award.

AWARDS

✓ ISA PERU: Socially Responsible Company, Peru 2021

✓ ISA CTEEP: Main company in the Brazilian energy sector

✓ Dow Jones Sustainability Index (DJSI) for the third consecutive year.

✓ FTSE4Good Index for complying with the ethical indexes of the stock market, as well as the global standards of corporate responsibility.



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Disclaimer

ISA has elaborated the following report for information purposes. The company is notresponsible for any investment decision made from this report. The statementsincluded therein reflect our current points of view in relation to future events; they arebased on assumptions and subject to risks and factors that may cause results,performance and achievements of the company to change at any moment. Thesefactors include general changes in the energy sector, financial conditions, governmentpolicies (national and international), as well as variations in interest rates, inflation,volatility in exchange rates, and levels of taxes.

As a result of these risks and factors, current results may differ materially fromestimates provided. The company does not accept responsibility for any change orinformation provided by official sources. The user is solely responsible for the use ofthis information.

© ALL RIGHTS RESERVED BY INTERCONEXION ELECTRICA S.A. E.S.P© ALL RIGHTS RESERVED BY INTERCONEXION ELECTRICA S.A. E.S.P

www.isa.coINTERCONEXIÓNELÉCTRICA S.A E.S.P.NIT: 860.016.610 - 3

Calle 12 Sur 18 - 168 Medellín, ColombiaPhone: +57 4 3252270 | Fax: +57 4 3170848 A.A. 8915

Carrera 69 25B - 44, 10th floor, Bogotá, ColombiaPhone: +57 1 4165596 | Fax: +57 1 4165398A.A. 55063

Contacts• Carlos Alberto Rodríguez L.• CFO

• Gloria Cecilia Velásquez T.• Investor Relations

• [email protected]

mailto:[email protected]

financial results fourth quarter 2017 - isa results fourth quarter 2017 ... operation in colombia,...

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