Santander Latin American Conference C a n c u n | J a n u a r y 2 0 1 9

Growth Opportunities & Valuation

Financial Highlights

ISA CTEEP

WHY TO INVEST AT

ISA CTEEP?

No demand risk and no default risk

Strong Cash Generation

Minimum payout of 75% (regulatory net

income)

Dividends

Reference Company for quality and O&M

Benchmark

Valuation Attractive valuation

Fitch: AAA(bra)

Investment Grade

Sustainable value

Profitability

Opportunities in grid reinforcements, greenfield projects and M&A

Growth

A successful story of growth, resilience and performance

1999 2013 2001 2012 2006 2007 2017 2016

‘000 km of transmission lines

Consolidated regulatory

EBITDA in BRL billion

0.1 0.7 1.4 1.6 0.2 0.7 1.4

11.5 12.3 15.4 17.7 18.6

Transmissão Paulista merger with EPTE

Origin from CESP spin off and creation of Transmissão Paulista

Set up of RBSE compensation

(Ordinance 120 Ministry of Mining

and Energy)

Winner bid for 3 lots in October

auction

Expansion to 17 Brazilian states through greenfield projects and acquisitions

ISA acquires CTEEP and

becomes the controlling

shareholder

Winner bid for 5 lots in April auction

Extension of Main Concession

Contract (059/2001) for 30 years

Winner bid for 2 lots in June auction

2018¹

18.6

2.3

Note: ¹ Last twelve months ending on September 30, 2018

Largest listed transmission utility in Brazil

51% IE Madeira

Revenue: BRL 497 million³

100% IENNE

Revenue: BRL 44 million

ISA CTEEP

Revenue: BRL 2.421 million

IE Serra do Japi 100%

Revenue: BRL 60 million

100% IE Pinheiros

Revenue: BRL 54 million

100% Evrecy

Revenue: BRL 7 million

100% IE Sul

Revenue: BRL 18 million

51% IE Garanhuns

Revenue: BRL 87 million³

100% IEMG

Revenue: BRL 18 million

Largest listed transmission utility in Brazil

Transmission of 24% of Brazil’s power generation

Transmission of 90% of the power load in the State of São Paulo

Benchmark player in cost and quality

18,600 km of transmission lines

126 substations

65,500 MVA of transformation capacity

IENS¹: 2.26 x 10-6

Availability Discount/Revenue: 0.68%

Regulatory Net Revenue²: BRL 2,800 million

Regulatory EBITDA²: BRL 2,300 million (margin of 84%)

Nota: ¹ Index of Non-Supplied Energy on 09/30/2018 ² Last 12 months ended on 09/30/2018 ³ Total revenue of the asset

100% IE Itaúnas

Revenue: BRL 47 million

100%² IE Biguaçú

Revenue: BRL 38 million

50% IE Paraguaçu

Revenue: BRL 107 million³

Largest listed transmission utility in Brazil

Sustainable growth

Nota: ¹ Average of last 5 revenue cycles ² ISA CTEEP’s investments in 10 projects acquired in 2016, 2017 and 2018 auctions ³ Total revenue of the project

Organic growth: capex of around

BRL 200 million/year and revenue

(RAP) of BRL 40 million/year¹

Greenfield Projects²: CapEx of BRL

2,900 million and revenue (RAP) of

BRL 448 million/year

+2,000 km of transmission lines

+8,000 MVA of transformation

capacity

50% IE Aimorés

Revenue: BRL 71 million³

50% IE Ivaí

Revenue: BRL 267 million³

100% IE Tibagi

Revenue: BRL 18 million

100% IE Itapura Lorena

Revenue: BRL 10 million

100% IE Itapura Bauru

100% IE Aguapeí

Revenue: BRL 11 million

100% IE Itaquerê

Revenue: BRL 46 million

Revenue: BRL 54 million

Tickers: TRPL3¹ and TRPL4²

Corporate Governance: Level 1 at B3

Average daily volume in 2018: BRL 27.0 million

Market cap³: BRL 11,400 million

Free Float: 77% of Brazilian investors 23% of foreign investors

ADR: “CTPTY” and “CTPZY”

Coverage of 15 institutions: 60% Buy 40% Hold

Common shares: 89.5% Preferred shares: 1.3%

ISA 35.8%

Common shares: 10.5% Preferred shares: 98.7%

Free Float 64.2%

Common shares: 9.8% Preferred shares: 51.9%

Eletrobras 35.4%

Common shares: 0.7% Preferred shares: 46.8%

Others 28.8%

Common shares: 64,484,433 Preferred shares: 100,236,393 Total: 164,720,826

CONTROLLED BY ISA FREE FLOAT OF 64%

ISA CTEEP

Notes: ¹ Common share l ² Preferred share l ³ On 12/31/2018

Shareholder Structure on 12/31/2018

Notes: ¹ Considers 2017 IFRS Results adjusted by participation l ² On 12/31/2018 | ³ ALAS20 - Sustainability Leaders Agenda 2020

Central America

Transmission Telecom

Brazil 34% of net income Transmission Telecom

Bolivia Transmission Argentina

Telecom

Peru 21% of net income

Transmission Telecom

Ecuador Telecom

Colombia 25% of net income Transmission Telecom Highway concessions Real Time Systems

Chile 18% of net income

Transmission Telecom

Highway concessions

Transmission: 77.2%

The largest energy transmission company in Colombia and Peru, with 70% of capacity in each market

2nd largest player in Chile with 18% of market share

2nd largest player in Brazil with investments in ISA CTEEP and TAESA

Highway concessions: 22.0%

Real Time Systems: 0.7%

Telecom: 0.1%

ISA CTEEP represents 31% of ISA’s¹ net income

2017 Net Income Breakdown:

Benchmark player in the sector

44,200 km of transmission lines

87,100 MVA of transformation capacity

907 km of highways

Controlled by the Colombian government (51.4% of shares)

Market Cap: USD 4,800 million²

Alas20 Award³ - Recognition in Corporate Governance

ISA INTERCONEXIÓN ELÉTRICA, S.A.E.S.P.

A multilatina company focused in transmission, telecom, highway concession and real time systems with growth opportunities in Brazil

Solid Presence in Latin America: 8 countries, 4 sectors, 40 companies

6

7

11

18

63

State Grid

Alupar

TAESA

ISA CTEEP

Eletrobras

2017 M a rk e t S h a re ( t hou s and km o f l i n e s )

T ra n s m is s io n R e v e n u e s ¹ ( 2017 /2018 c y c l e )

Total: BRL 37,000 million

IS THE PURE TRANSMISSION COMPANY IN THE SECTOR IN BRAZIL

Transmission companies are remunerated by the availability of its assets

Notes: ¹ Considers auctions held until June of 2018 | ² Interconnected National System| ³ National Electric Energy Agency | 4 National Operator of the Electric System

SIN² is composed of 135,000 km of transmission lines and serves 98% of the market

The transmission sector is regulated and monitored by ANEEL³ and coordinated and controlled by ONS4

Transmission companies are remunerated by the availability of its assets. There is no demand risk and no default risk.

38%

10% 8% 9%

31%

4%

Alupar Others Eletrobras ISA CTEEP State Grid TAESA

Source: ANEEL

STRATEGY BASED ON

Regulation

RBSE Receivables of ~BRL 9,200 million

Legal

Pension Fund Lawsuit receivables ~BRL 2,000 million

Growth

10 projects in execution with capex of ~BRL 2,900 million

Affiliates

EBITDA: BRL 400 million (87%margin)

Brownfield Projects

EBITDA: BRL 150 million (85% margin)

Operation and Maintenance

EBITDA: BRL 350 million (40% margin)

P E S S O A S

Regulação

Valor Justo

Jurídico

Gestão de Litígios

Crescimento

Disciplina de Capital

Integração

Subsidiárias

Projetos

Crescimento Orgânico

Operação e Manutenção

Eficiência, Qualidade, Segurança

SOLID & SUSTAINABLE RESULTS

Note: ¹ Regulatory results of the last 12 months ending on 09/30/2018

O&M Reinforcement Projects

RBSE Receivables

100% JV

Adjusted Net Revenue

799 179 1,619 176 258 3,031

Adjusted EBITDA

347 156 1,619 151 228 2,501

LAST 12 MONTHS¹

(BRL million)

OPERATIONAL HOLDING SUBSIDIARIES Total

Growth Opportunities & Valuation

ISA CTEEP

Financial Highlights

46.2% 51.3% 76.0% EBITDA Margin

85.3% REGULATORY RESULTS HIGHLIGHTS

STRONG CASH GENERATION BOOSTED BY RBSE

Note: ¹ Last twelve months ended on 09/30/2018

² Costs do not consider depreciation and contingencies

Net Revenue and EBITDA include only 100% owned subsidiaries. Shared control companies are accounted as equity shareholder.

NET REVENUE (BRL MILLION) O&M COSTS² (BRL MILLION)

EBITDA (BRL MILLION) NET INCOME (BRL MILLION)

143 181 82 129 220

747 675 671

694

689

2015

21 20

1,778

23 112 135

2016

172 22

2017

1,660

LTM¹

890 955

2,773

212%

180 195 20 120 157 197

747

191 199

244

246

75

2015

23

411

125 24

2016 LTM¹

148 21

2017

1,660

488

1,351

2,322

465%

404 439 472 472

15 7 19

430

2015

22 9 19

2016 2017

23 26

LTM¹

467 509 521

21%

247 246

635

2015 2016

1,075

2017 LTM¹

335%

O&M

Others

RBSE

New Investments

Subsidiaries

SOLID DEBT PROFILE WITH

Debt Amortization Schedule (BRL million) Debt Breakdown

55%

19%

26%

Local bonds - CDI/IPCA BNDES - TJLP Others - CDI

Debt Profile on 9/30/2018

Gross Debt: BRL 2,992 million

Average cost: 8.3% p.a

Average term: 3.3 years

Net Debt / Adjusted EBITDA: 0.6x

Investment Grade by Fitch: AAA(bra)

74

243 232

74 70

369

894

2025 + 2022 4Q18 2019 2020 2023 2021 2024

1,035

230 226

335

247

2016

585

2014 2018+ 2015 2017 2013

Note: ¹ The Company registered net loss due to the provision for losses related to Law 4,819/58

Strong cash generation allows higher dividends

(BRL million)

Regulatory Payout

N.A.¹ 91% 123% 108% 95%

Minimum payout of 75% of regulatory net income limited to the financial covenant of 3.0x Net Debt/EBITDA

Proceeds via interest on capital and dividends payments

BRL 1,985 million dividend payment in 2018 (BRL 12.05/share)

1,985

ISA CTEEP

Financial Highlights

Growth Opportunities & Valuation

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

Digitalization Real Estate Opportunities Energy Storage Distributed Energy Resources

Operational safety optimization with cost reduction through substation teleassistance

and substations retrofitting

Ancillary Services

NEW BUSINESSES EFFICIENCY

GROWTH OPPORTUNITIES

TO CREATE VALUE

Note: ¹ RAP based on RAP / Investment of 17.1% observed in the Auction 002/2018 l ² Source: PET/PELP, MME Study consolidating the expansion constructions

GREENFIELD PROJECTS AND GRID REINFORCEMENTS

ACQUISITIONS Always studying market opportunities

Recent acquisitions

IE Sul

Acquisition of 50% of shares from CYMI for BRL 20 million

ISA CTEEP holds 100% of IESUL as of 3Q18

IENNE

Acquisition of 50% of shares from ISOLUX and 25% of shares from CYMI for BRL 101 million

ISA CTEEP holds 100% of IENNE as of 3Q17

2027 Decennial Energy Plan

Increase of around 55,000 km of new transmission lines

Total investment in transmission of BRL 108,000 million

BRL 38,000 million in auctions

Reinforcements and improvements in the grid amount from BRL 70,000 million to BRL 110,000 million

P E S S O A S

Regulação

Valor Justo

Jurídico

Gestão de Litígios

Crescimento

Disciplina de Capital

Integração

Subsidiárias

Projetos

Crescimento Orgânico

Operação e Manutenção

Eficiência, Qualidade, Segurança

RISKS & OPPORTUNITIES

Tariff Reset

O&M, WACC & RAB

Pension Fund Lawsuit

Receivables of BRL 2,500

million

RBSE Receivables

Ke ~BRL 1,500

million

68

70

72

74

76

78

80

82

84

86

UBS

Brasil Plural

Eleven Financial

Goldman Sachs

BTG Pactual

HSBC

Santander

DOES NOT REFLECT ISA CTEEP’S CASH GENERATION

Bradesco

Itaú BBA

Credit Suisse

Merrill Lynch

Safra

JP Morgan Citi

TRPL4 TARGET PRICE (BRL/share)

63

65

67

69

71

73

75

77

79

81

83

85

Hold Buy Sell

UBS

Goldman Sachs

BTG Pactual

HSBC

Santander

Bradesco

Merrill Lynch

Safra Citi

Itaú BBA

Banco do Brasil

JP Morgan

XP

Brasil Plural

e-mail: ri@cteep.com.br phone: +55 11 3138-7557

www.isacteep.com.br/ir

INVESTOR RELATIONS Rinaldo Pecchio Michelle Corda Lúcia Cesari Gabriela Bussotti Yuri Utino