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SECOND QUARTER 2014 RESULTS
Medellín, Colombia
July 31, 2014
Luis Fernando Alarcón, CEO
Carlos Alberto Rodríguez, CFO
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).
2
Operating Highlights
ISA 2020
Second Quarter 2014 Results
Q&A
AGENDA
3
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.
HIGHLIGHTS - RELEVANT INFORMATION 4
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
2013 2014 2015 2016
▪ TE Supply (3)
▪ Capex TE (7)
Projects
▪ Strategic alignment
▪ Corporate separation
▪ Opex TE (5)
▪ Change management
▪ TE Asset Management
▪ Development of capacities
▪ Reorganization
▪ TELCO Strategy
▪ Support functions (10)
▪ GISTR Strategy
▪ Positioning and reputation (2)
2017 2018 2019 2020
▪ CV Efficiencies (2)
Alig
nm
ent
O
rga
nz
Effic
iencie
s
TO
Executed
Planned
(X) Number of projects
6 ISA 2020 – IMPLEMENTATION PLAN
ISA 2020 – INVESTMENT OPPORTUNITIES 7
Energy Transmission
Colombia, UPME projects, 3Q & 4Q 2014.
230 kV Suria Substation - USD 18.3
Reforma Substation – USD 3.5 (awarded to ISA)
230 kV Tuluní Substation - USD 15.4 (awarded to a third
party)
220 kV Flores-Caracolí-Sabana - USD 20.6
220 kV Chinú-Montería-Urabá - USD 65.2 (in awarding
process to ISA)
500 kV La Loma - USD 29.2
Ituango – USD 427.1
500 kV Southwestern area reinforcement – USD 291.7
Caribbean area reinforcement - USD 225.88
Second Eastern reinforcement– USD 84.5
Porce III – USD 15.6
Tuluní – Ambeima 230 kV – USD 41.7
Córdoba River – USD 19
Figures in millions
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
Road concessions
Peru, Proinversión projects, 3Q & 4Q 2014.
Frispata–Mollepata transmission line – USD 43.5.
Línea Azangaro-Puno - USD 80
Nueva Lurín – USD 20
Chile, CDEC-SIC. 3Q 2014 & 2015.
4 expansion projects for transformer bank and new
substations – USD 115
SING-SIC Interconnection – USD 400
Colombia-Panama Interconnection – USD 400
Investment by country COP %
Colombia 1,893 25
Peru 1,731 23
Brazil 1,929 25
Chile 1,999 26
Others 41 1
Investment by business COP %
Energy 6,435 85
Toll Roads 583 8
Telecommunications 395 5
SMRTS 181 2
LONG-TERM INVESTMENT PLAN 8
(in COP billions)
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.
Projections July 2014
2014 2015 2016 2017 2018 2019 2020
COLOMBIA PERU BRAZIL CHILE OTHERS
1,625
2,141
830
419 324 351
1,904
AGENDA
Operating Highlights
ISA 2020
Second Quarter 2014 Results
Q&A
CONSIDERATIONS
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.
4. Conversion effect of the foreign affiliates’ financial information, which effect tends to be
neutralized in the net result.
10
EXCHANGE
RATES
2Q13
aver
2Q14
Aver Var %
2013
end
2Q14
end
Var %
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%
Breakdown by Business – 2Q14 Breakdown by Country – 2Q14
Total operating
revenues reached
COP 915,867 million /
USD 487 millions in
2Q14.
SMRTS: Smart Management of Real Time Systems
CONSOLIDATED FINANCIAL RESULTS
REVENUES 11
CO
P b
illio
n
900 916
0
200
400
600
800
1,000
2Q13 2Q14
1.8%
COLOMBIA 40.9%
CHILE 22.9%
BRAZIL 22.5%
PERU 12.2%
OTHERS 1.4%
Energy 68.3%
Roads 22.9%
Telecommunications
5.7%
SMRTS 3.1%
(in millions) 2Q13 2Q14 Change
%
AOM Costs and Expenses
(ex. Pensions) 376,208 433,346 -13.2%
Provisions, Depreciation, Amortization
and Pensions 98,326 43,389 126.6%
Total 474,534 476,736 -0.5%
CONSOLIDATED FINANCIAL RESULTS
COSTS AND OPERATING EXPENSES
Breakdown by Business – 2Q14
Breakdown by Country – 2Q14
12 C
OP
bill
ion
-0.5%
477 475
400
450
500
550
2Q13 2Q14
COLOMBIA 41.3%
CHILE 13.7%
BRAZIL 30.6%
PERU 12.8%
OTHERS 1.6%
Energy 71.5% Roads
13.2%
Telecommunications
10.1%
SMRTS 5.3%
Breakdown by Country – 2Q14
CONSOLIDATED FINANCIAL RESULTS
EBITDA
Breakdown by Business – 2Q14
13 C
OP
bill
ion
EBITDA reached COP 539,659 million / USD 287 million in 2Q14.
63.9 57.7
51.9 59.7
54.4 60.3 58.9
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
EBITDA Margin
467
540
400
450
500
550
2Q13 2Q14
15.6%
COLOMBIA 41.1%
CHILE 28.2%
BRAZIL 13.6%
PERU 15.6%
OTHERS 1.4%
Energy 68.0%
Roads 28.4%
Telecommunications
2.8%
SMRTS 0.8%
Non-operating results
was –COP 123,666 million /
–USD 66 million in 2Q14.
CONSOLIDATED FINANCIAL RESULTS
NON-OPERATING RESULTS
(in millions) 2Q14
Colombia -30,944
Chile -134,615
Brazil 50,344
Peru -7,415
Other -1,036
(in millions) 2Q14
Energy Transmission 10,402
Road Concessions -133,941
Telecommunications Transport -501
SMRTS 374
Breakdown by Business Breakdown by Country
14
CO
P b
illio
n
-168
-124
-200
-150
-100
-50
0
2Q13 2Q14
-26.5%
Net Income for 2Q14 reached COP 139,997 million / USD 74 million.
CONSOLIDATED FINANCIAL RESULTS
NET INCOME
Breakdown by Business Breakdown by Country
(in millions) 2Q14
Colombia 117,318
Chile 18,656
Brazil 2,229
Peru 1,794
Other 117,318
(in millions) 2Q14
Energy Transmission 117,318
Road Concessions 18,656
Telecommunications Transport 2,229
SMRTS 1,794
15
CO
P b
illio
n
147
140
100
150
2Q13 2Q14
-4.9%
4.9 8.6 16.4
11.9 11.0
17.3
15.3
28.4
16.2
22.6
0.6
23.8 25.7 24.7
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Net Margin Net Margin BMI
7,451 7,383
3,705 3,900
14,411 14,165
0
5,000
10,000
15,000
20,000
25,000
30,000
2013 2Q14Liabilities Minority interest Equity
Assets in 2Q14 totaled $25,447,424 million or
USD 13,527 million.
Assets by Country - 2Q14
Assets 25,567 25,804 Assets by Business - 2Q14
CONSOLIDATED BALANCE SHEET 16
CO
P b
illio
n
-1.7%
-0.9%
5.3%
-0.5%
COLOMBIA 30.1%
CHILE 32.1%
BRAZIL 25.9%
PERU 11.4%
OTHERS 0.5%
Energy 64.4%
Roads 31.9%
Telecommunications
2.6%
SMRTS 1.1%
In millions 2013 2Q14 Var
%
2Q14
USD
CHILE 4,217,278 3,932,967 -6.7 2,091
COLOMBIA 1,788,574 1,763,076 -1.4 937
BRAZIL 1,169,464 1,217,438 4.1 647
PERU 1,464,947 1,499,180 2.3 797
BOLIVIA 51,134 45,385 -11.2 24
ARGENTINA 7,071 4,924 -11.2 3
TOTAL 8,698,468 8,462,970 -2.7 4,499
CONSOLIDATED FINANCIAL DEBT
Breakdown by Rate Breakdown by Source Breakdown by Currency
17
2.66 2.53 2.90
3.12 3.4
3.26 3.04
4.25 3.62
3.88 3.86 3.6
4.20 4.29
2012 1Q13 2Q13 3Q13 2013 1Q14 2Q14
Net Debt / EBITDA EBITDA / Interest
Fija 16.6%
CDI 8.9%
IPC 15.0%
TJLP 3.2%
TAB 6.6%
Libor 4.7%
DTF 4.6%
UF 39.7%
IPCA 0.6%
Capital Market 73.1%
Banks 26.1%
Other 0.8%
BRL 13.5%
COP 19.7%
USD 20.5%
UF + CLP 46.3%
Otras 0.1%
AGENDA
Operating Highlights
ISA 2020
Second Quarter 2014 Results
Q&A
