financial results - isa · 3q16 construction 91.2% in energy transmission 77,7% in peru...

Medellin, November 1, 2016

Third Quarter 2016Financial Results

DISCLAIMER

2016 FINANCIAL RESULTS PRESENTATION

2

ISA has elaborated the following report for information purposes. The company is

not responsible for any investment decision made from this report. The

statements included therein reflect our current points of view in relation to future

events; they are based on assumptions and subject to risks and factors that may

cause results, performance and achievements of the company to change at any

moment. These factors include general changes in the energy sector, financial

conditions, government policies (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 from

estimates provided. The company does not accept responsibility for any change

or information provided by official sources. The user is solely responsible for the

use of this information.

Highlights Investments

3Q16 Financial Results

Q&A

3

AGENDA

4

HIGHLIGHTS AND RECENT EVENTS

The BVC (Colombian Stock Exchange) grants ISA IR Recognition for another year for

complying with the best practices in terms of disclosure and investor relations.

3,420

1,986

867

32

3

For the second consecutive

year, ISA was included in the

Dow Jones Sustainability

Index (DJSI) which confirms

as one of the publicly-traded

companies listed on the

market with the best global

level practices.

Companies analysed

Companies invited

Total completed questionnaires

Invited companies from the Electric Public

Service Sector (ME)

Companies that entered the DJSI

(emerging markets)

Dow Jones Sustainability Index -DJSI-

5


CTEEP administration,

starting from the values

and terms disclosed in

ANEEL Note nº

336/2016, recognized the

value of the RBSE.

Value recognition value of the Basic Network in the Existing System (RBSE)

ADJUSTMENT IN CTEEP Million Reales

On Dec/15, ANEEL (Brazilian Electricity Regulatory Agency)

homologated the RBSE value3.896

RBSE value updated to Sep/16 7.806

Gross up of contributions (pis and cofins 9,25% and others) 796

Updated value of the SE account payable 8.602

IMPACT ON ISASep/16

million pesos

Increase in CTEEP profit (BRL 4.168 million) 3.604.565

Impact on ISA results 37 % 1.331.782

(+) Consolidated ISA profit before adjustments 633.480

ISA consolidated adjusted profit 1.965.262

6


CTEEP, ISA’s Brazilian subsidiary, won three of Energy Transmission projects, whose

total investment is BRL1.149 million.

PROJECT 1:

In consortium with TAESA

State: Bahia and Minas Gerais

Investment: BRL 509 millones

PROJECT 2:

In consortium with TAESA

State: Minas Gerais


PROJECT 3:

100% CTEEP

State: Espírito Santo


1

2

3

Highlights

Investments3Q16 Financial Results

Q&A

7

AGENDA

2016 2017 2018 2019 2020

COLOMBIA PERU BRAZIL CHILE OTHERS

Projections: February 2016

LONG-TERM INVESTMENT PLAN

COP 9.555.292 million

8

3.435

926

519 509

4.167

Investment 3Q16 9M16 % 2016(E)

Colombia 133.713 343.675 14,8 708.590

Peru 202.734 850.700 40,8 1.688.783

Brazil 52.884 143.726 6,2 364.896

Chile 291.223 771.545 37,9 1.402.662

Other 3.807 6.888 0,3 1.442,52

TOTAL 684.361 2.116.535 100,0 4.166.373

Projected investments

of 2016

$3.653.280 million

The difference passes

to 1Q17

CO

P b

illio

ns

9

Colombia UPME Expansion Plan for a total of USD414 million (reference value).

Colombia-Panama Interconnection: estimated of investment: USD500

million.

Peru Proinversión Projects for an estimated investment of over USD490 million.

Chile

Transition expansion Plan: estimated investment: USD687 million.

MOP Projects 2016, related to ISA concessions, with investments of USD

442 million (increased specifications, connectivity, security, etc).

Brazil

ANEEL projects: For over USD 3 trillion, which includes a significant amount

in the state of Sao Paulo for come years.

Reinforcement projects authorized by ANEEL of USD 73 million per year.

Mexico FCE explanation plan: estimated investment USD1.200 million for 2017.

INVESTMENT OPPORTUNITIES

SHORT AND MEDIUM TERM

http://www.iconspedia.com/icon/flag-of-peru-85-1.html

http://www.iconspedia.com/icon/flag-of-peru-85-1.html

http://www.iconspedia.com/icon/flag-of-brazil-8462.html

http://www.iconspedia.com/icon/flag-of-brazil-8462.html

http://www.iconspedia.com/icon/flag-of-chile-8477.html

http://www.iconspedia.com/icon/flag-of-chile-8477.html

Highlights

Investments

3Q16 Financial ResultsQ&A

10

AGENDA

11

CONSIDERATIONS

During the third quarter, financial results reached COP 1.965

billion. Excluding the recognition of the value of the Basic

Network in the Existing System (RBSE) in CTEEP, the net

result was COP 243 billion.

The entry into operation of new projects, higher revenues in Peru, Chile

and Colombia.

Revenues for the quarter and the accumulated period to September

reflected the recognition of the values on non-depreciated assets prior to

May 2000: RBSE.

The conversion effect of foreign affiliates raised profits for the quarter by

COP 1,431 million.Book value from the recognition

COP5.462.071 million

Net income

9M16

COP 1.965.262

Excluding RBSE:

COP 633.480

million

The figures are unaudited. Amounts expressed in US Dollars are for information purposes only.

CONSOLIDATED FINANCIAL RESULTS - NCIF

REVENUES

12

Exchange Rate USD 1 = COP 2.879,95

3Q

16

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Total Operation Construction RBSE Recognition

1.454

7.1094.252

10.272

3Q15 3Q16 9M15 9M16

VARIATION

GSTR: Real Time Systems Management

* Excluding construction and RBSE recognition

Construction Participation 3Q16

90,1% Energy Transmission

75,7% Peru

Excluding construction and RBSE

Quarter: 9.5%

Nine months: 18.8%

RBSE Recognition

COP 5.462.071 million

USD 1.897 million

Colombia36,4%

Chile20,3%

Brazil26,1%

Peru15,1%

Others2,1%

Energy 71,7%

Roads19,9%

Telco6,1%

MRTS2,4%

3Q16 Construction costs

COP 301,789 million

USD 105 million

3Q16 construction

91.2% in Energy Transmission

77,7% in Peru


COSTS AND OPERATING EXPENSES

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VARIATION IN COSTS

3Q

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Excluding construction

Quarter: 18,9%

Nine months: 20,9%

753 928

2.0362.815

3Q15 3Q16 9M15 9M16

Total Operation Construction

* Excluding construction

Colombia46,0%

Chile12,2%

Brazil21,6%

Peru17,7%

Others2,5%

Energy 71,4%

Roads11,3%

Telco12,8%

MRTS4,5%

Colombia31,2%

Chile23,5%

Brazil25,5%

Peru17,9%

Others1,9%

CONSOLIDATED FINANCIAL RESULTS – NCIF

EBITDA

14

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850

6.342

2.133

7.917

3Q15 3Q16 9M15 9M16

EBITDA MARGIN

Quarter 3Q16:

Total: 89,2%

Excluding construction and RBSE: 65,2%

VARIATION

* Excluding RBSE recognition

Excluding RBSE recognition

Quarter: 9.5%

Nine months: 18.8%

Nine months endeed September 2016:

Total: 77.1%


Energy 72,7%

Roads23,4%

Telco3,4%

MRTS0,5%


FINANCIAL EXPENSES

15

COP billions

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232 285

681796

3Q15 3Q16 9M15 9M16Total financial expensesQuarter: USD 99 million

Nine months: USD 277 million

232 285

681796

3Q15 3Q16 9M15 9M16

VARIATION

Quarter: 23,1%

Nine months: 17,0%

2

30

37

130

86

Others

Peru

Brazil

Chile

Colombia

-0,4

5

123

157

MRTS

Telco

Roads

Energy

Colombia29,1%

Chile30,4%

Brazil17,2%

Peru19,6%

Others3,7%

Energy 67,8%

Roads30,6%

Telco0,8%

MRTS0,8%

252

1.575

560

1.965

3Q15 3Q16 9M15 9M16


NET INCOME

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* Excluding RBSE recognition

Net Margin 3Q16

Total: 22,2%


Excluding RBSE

Quarter: -3,4%

Nine months: 13,1%

VARIATION

Net Income excluding RBSE

Quarter: $243 b or USD 84 m

Nine months: COP 634 b USD 220 m

Net Income

Quarter: COP 1,5 t or USD 547 million

Nine months: COP 2,0 t or USD 682 million

Total Operation RBSE Recognition

Colombia19,8%

Chile26,5%

Brazil37,8%

Peru15,3%

Others0,5%

7.840

3.553

16.720

2015 Sep. 2016


BALANCE SHEET

17


28.113 36.999

CO

P b

illio

ns

As

se

ts b

rea

kd

ow

n*

by

Co

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try

Assets: 31,6%

Liabilities: 26,2%

Minority Interest (IM): 83,0%

Equity: 19,9%

VARIATION

21

.09

46

.50

29

.40

3L

IAB

ILIT

IES

MI

EQ

UIT

Y

ASSETS

*Recognition RBSE effect

*

*

*

BRL14,0%

COP20,4%

USD29,5%

UF + CLP36,0%

CONSOLIDATED FINANCIAL DEBT

NCIF (includes preferred shares with repurchase option)

18

disbursements (increase)

amortization (decrease)

3Q

16

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urr

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cy

COP million


4,3 4,3 4,2 3,9 3,9 3,9 3,9

3,9 3,9 4,2

3,9 4,0 3,9

3,6

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Debt / EBITDA EBITDA / Interest

Highlights

Investments

3Q16 Financial Results

Q&A

19

AGENDA

20

INVESTOR RELATIONSCONTACT

Email [email protected]

Website www.isa.co

Telephone +574 315 7470

@ISA_Avanza /ISAAvanza Interconexión

Eléctrica ISA/CanalISAAvanza

financial results - isa · 3q16 construction 91.2% in energy transmission 77,7% in peru...

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