Corporate presentation - Isagen

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DisclaimerThis document has been prepared by ISAGEN S.A. E.S.P. (hereinafter ISAGEN) and the contentthereof is of a strictly confidential nature. This document may not be reproduced, distributed orpublished by the recipient, nor used under any circumstances without prior written consent fromISAGEN. Although the information contained herein is based on reliable sources, ISAGENcannot guarantee the accuracy and veracity thereof. The views presented herein represent thoseof ISAGEN at the time of this presentation, and are therefore subject to amendment andmodification. ISAGEN is not liable for any direct loss or reduction in benefits that may result fromthe use of the information contained herein.2

Agenda1. ISAGEN2. ISAGEN s Business and Colombian Energy Sector3. Future Growth4. Financial Results3

We are ISAGEN…35 YEARS EXPERIENCEIn the electricity sectorA MIXED UTILITY COMPANYWith solid corporate governance practicesTHIRD LARGEST GENERATOR OF ELECTRICITYIN THE COUNTRYSupplies 16% of the total demand of electricityTHE COMPANY IS GROWINGISAGEN will increase generation by 60%and installed capacity by 42%.BROAD STUDY PLANdevelopment of Projects in geothermal, windand hydroelectric energy.4

Shareholders and Board of DirectorsShareholders as ofMarch 2013The Board of Directors consists of seven (7) primary members andtheir respective alternates, five (5) of which are independent. Board ofDirectors5

Solid and diversified portfolio of assetsGeneration plants5Installed capacity2,132 MWHydraulic and thermal capacity86% / 14%Availability of plants96,7%Average annual generation9,500 GWhProjects under constuction900 MWProjects under study3,500 MW6

Energy GenerationNet Generation(GWh)Theoretical plant factorReflects the efficiency of the plant accordingto their generation and capacityInstalled capacity 2,132 MWAnnual generation 9,500 GWh-year7

Key participantsin the electrical energy market22%20%Installed capacity (MW)15%Total system: 14,669MW12%16%ColombianEnergy grid8%7%ISAGEN has a participation of 16.3% in the total energy generated in the country,becoming the third largest generator in Colombia.Source: XM-Neon8

ISAGEN, a growing companyAmoyá ProjectInstalled capacity: 80 MWAverage annual generation: 510GWhDate of operation start-up: 2Q2013Progress as of march/13: 99.12%Factor Plant: 73%Sogamoso ProjectInstalled capacity: 820 MWAverage annual generation: 5,056GWhDate of operation start-up: 2Q 2014Progress as of march/13: 74.86%Factor Plant: 70%Installed capacity42%2,132 MW 3,032 MWAverage annual generation60%9,500 GWh 15,478 GWh9

Financing for projects under constructionPROJECTINSTALLEDCAPACITY MWFINANCINGCAPEXUSDAmoyá 80 Cash Flow 258 MillionSogamoso 820Cash FlowDebt1.1 Billion1.3 BillionTOTAL 900 2.6 BillionCash Flow: USD 1.3 BillionDebt: USD 1.3 Billion2006 - 2014Exchange rate. $1,783.6610

Agenda1. ISAGEN2. ISAGEN s Business and Colombian Energy Sector3. Future Growth4. Financial Results11

ISAGEN in the Energy MarketProjectConstructorGeneratorResellerOperationAdministration12

Commercial StrategiesEnergy commercializationSpotMarket(20% average)Maximization of thecommercial operationContracts(80% average)Company strategyAbout 2 or 3 yearsINDUSTRIAL END CLIENTSNon-regulated users(Major Consumers)WHOLESALECOSTUMERSSale to regulated users(Minor consumers)13

Commercial StrategiesEnergy commercializationSpotMarket(20% average)Maximization of thecommercial operationContracts(80% average)Company strategyAbout 2 or 3 yearsINDUSTRIAL END CLIENTSNon-regulated users(Major Consumers)WHOLESALECOSTUMERSSale to regulated users(Minor consumers)Energy SolutionsNatural Gas SalesReliability Charge15

Supply – Demand MarginIntalled CapacityForecast DemandForecast MarginForecast IntalledCapacityGrowthHistorical DemandHistorical MarginSource: Neón XM – UPME – Internal Calculus16

Agenda1. ISAGEN2. ISAGEN s Business and Colombian Energy Sector3. Future Growth4. Financial Results17

ISAGEN, a growing companyHydroelectric•Piedra del sol (153 MW)•Cañafisto (937 MW)•Andaquí (687 MW)•Patía l (520 MW)•Patía ll (570MW)•Samaná (188 MW)GeothermalWind•Macizo Volcánico delRuiz (50 MW)•Binacional Colombia –Ecuador (130 MW)•Guajira (32 MW)•Convenio Iberdrola (280MW)ISAGEN is ready to participate in upcoming reliability charge auctions, in orderto maintain its position in the Colombian market18

Energy ExportsStudies to interconnect withPanama are underwayExpected to restart talks with Panama sGovernmentFirst stage 300 MWSecond stage 600 MWBilateral contract exclusivelywith ISAGEN until 2017Cuestecitas CuatricentenarioLine 150 MWTIE’s• Jamondino- Pomasqui Line:500 MW• Panamericana-Tulcan-Ecuador1: 35 MWThere are ongoing conversations amongthe governments of Peru, Chile, Ecuadorand Colombia, with the aim ofestablishing energy exchanges withthese countries19

Opportunities abroadSTRATEGIC GUIDELINESProspecting and trading generation business inPeru, Panama, Guatemala, Costa Rica, Chile,Brazil for the Acquisition of:• Assets in operation• Shareholding companiesTECHNOLOGIESHydricWindGeothermalASSOCIATIONPriority countriesMonitoringcountries• Search for joint ventures• Preference for operational and commercialcontrol• Financial control is not important• Criteria for Selection of Partners20

Agenda1. ISAGEN2. ISAGEN s Business and Colombian Energy Sector3. Future Growth4. Financial Results21

Operating Income and CostsOperating IncomeOperating CostsValues in millions of dollars calculated with the year's average exchange rate.2008: $1,989.4 - 2009: $2,180.2 - 2010: $1,910.9 - 2011: $1,853.6 – 2012: $1,798.722

EBITDA, Operating Profit and Net ProfitEBITDAOperating profitNet profitValues in millions of dollars calculated with the year's average exchange rate. 2008: $1,989.4 -2009: $2,180.2 - 2010: $1,910.9 - 2011: $1,853.62 – 2012: $1,798.723

DividendsPursuant to ISAGEN bylaws, at least 70% of the Adjusted Profit shall bedistributed in cash7%10%5%2.4%10%2008 2009 2010 201120122013Pay out ratio65% 57% 40% 40%44%41%Dividend Yield2.80% 2.50% 2.15% 2.88%3.32%3.07%Figures in million dollars24

DebtTotal debtAverage termCurrencyDebt CostUSD$1,180 million6.9 years96.0% in Colombian pesos10.4% nominal in PesosDebt/EBITDA ratio: 3.47Coverage of debt service : 3.03Local corporate debt ratingInternal public debt bond ratingInternational Debt Rating (IDR)Information as of March 2013 – TRM: COP1,832.20/USD 25

Debt compositionBorrower Debt Balance Currency TermInterestRateOPIC* 242,81 COP 20 IPC + 5.25%Bonds 7 108,53 COP 7 IPC + 5.93%Bonds 10 152,49 COP 10 IPC + 6.48%Bonds 15 202,90 COP 15 IPC + 6.99%Club Deal 379,46 COP 10 DTF + 4.90%Leasing 41,52 COP 15 DTF + 4.40%JBIC 31,26 USD 13 Libor + 2,85%BTMU 20,84 USD 6 Libor + 1,00%TOTAL IN COP 1.127,71TOTAL IN USD 52,11(*)Loan guaranted by nationValues in millions of USD as of march 31. Exchange rate $ 1,832.2026

¿Why invest in ISAGEN? We are an important player in the energysector of the country. Strong and diversified portfolio of assets Increasing profits. High liquidity and cash flow. Solid and strong expansion plan. Managment model with high standars ofcorporate responsibility and corporategovernance.27

THANK YOUInvestor RelationsBertha Libia SuarezAna María Cartagena(0574 ) 325 7979 – 3257978ir@isagen.com.cowww.isagen.com.co/investors/