Presentations - Isagen

SECOND QUARTER 2010RESULTS PRESENTATIONAugust 2010

DISCLAIMERThis report has been prepared by ISAGEN S.A. E.S.P. (hereinafter ISAGEN) and it containsinformation that is informative and enlightening. However all information contained in thisreport has been compiled from sources believed to be accurate and reliable, ISAGEN makes norepresentation of warranty of any kind as to the accuracy or completeness of any informationprovided. Opinions and estimates constitute ISAGEN´s judgment as at the date of this reportand are subject to change without notice. ISAGEN accepts no liability whatsoever for any lossor damage resulting from use or reliance on any information provided by this report.

AGENDAHighlightsPower businessQuarterly ResultsExpansion PlanForecasts

AGENDAHighlightsPower businessQuarterly ResultsExpansion PlanForecasts

ENERGY PRODUCTIONISAGEN Generation (GWh)4,2504,8964,5695,0533,8531S 2006 1S 2007 1S 2008 1S 2009 1S 2010ISAGEN’s cumulative generation in the first half of 2010 was 24% lower than that obtained in thesame period of 2009. This lower generation was due to:• Less hydrological inflows during the first months of the year, due to “El Niño” phenomenon.• Regulation through which energy was dammed.During May and June there was a greater hydrological influx because of theweakening of “El Niño” phenomenon.

MARKET PRICESPool PriceContract Prices154.3134.0198.9123.8191.4198.1151.4109.7 106.4 104.1 103.7110.19105.3111.92 111.68107.2 107.1113.96106.0109.95108.92104.1 103.791.5JANUARY FEBRUARY MARCH APRIL MAY JUNEPOOL PRICE 2009 POOL PRICE 2010JANUARY FEBRUARY MARCH APRIL MAY JUNECONTRACT PRICE 2009 CONTRACT PRICE 2010The stock price showed a declining trend in May and June, due to the significant increase observed in theSystem’s hydrological inputs.It’s important to highlight that the average stock price in June was 91,47 $/kWh, the lowest one within thelast 14 months.

AVAILABILITYTotal ISAGENHydraulicThermal87,5% 86,9%91,3%There was a decrease in the availability of San Carlos due to the decision ofundertaking the modernization of one unit.CentralInstalled Real ProgrammedCapacity (MW) Availability (%) Availability (%)San Carlos 1.240 84,6 86,1Miel I 396 97,7 96,6Jaguas 170 77,3 74,2Calderas 19,9 98,2 96,7Total Hydraulic 1.825,9 86,9 87,4Termocentro 280 91,3 90,7Total ISAGEN 2.105,9 87,5 87,8

AGENDAHighlightsPower businessQuarterly ResultsExpansion PlanForecasts

OPERATING RESULTS - REVENUEOperating Revenue (Mill COP$)+0,11%+ 28%713,645 714,462+ 6%+ 21%557,350528,030437,5571S 2006 1S 2007 1S 2008 1S 2009 1S 2010The half-yearly average growth in the operating revenueduring the last 5 years is 14%

OPERATING RESULTS - REVENUEDuring this semester the following events ocurred, which influenced the obtaining of revenue:• Increased revenues from energy sales through National Contracts.• Transferences of energy to Venezuela were not made.• Decrease in revenues from Stock sales due to less generation.• Revenues for AGC went from a 0,30% share of total revenues to a 7% share.Operating Revenue 1S 2009 Operating Revenue 1S 2010PoolTransactions28%AGC OthersGas4%PoolTransactions18%AGC7%OthersGas3%InternationalContracts4%NationalContracts63%NationalContracts71%

OPERATING RESULTS - COSTSOperating Costs (Mill COP$)+ 27%+ 17%+ 2%+ 4%423,180337,895 345,381360,737265,3611S 2006 1S 2007 1S 2008 1S 2009 1S 2010The half-yearly average growth in the operating costs duringthe last 5 years is 13%

OPERATING RESULTS - COSTS• Higher purchases of energy to fulfill the contracts, since the generation was lower.• Higher purchases of gas for the operation of Termocentro plant.Operating Costs 1S 2009 Operating Costs 1S 2010Overheads,personnel andother expenses17%Fuel9%EnergyPurchases31%Overheads,personnel andother expenses16%Fuel15%EnergyPurchases33%Depreciation14%Depreciation11%FAZNIContribution2%Transfers (Law99/93)5%CND, CRD´S andSIC1%Use andConnectionCharges21%FAZNIContribution1% Transfers(Law 99/93)3%CND, CRD´S andSIC1%Use andConnectionCharges20%

EBITDA53%44%43%41%43%45%36%33%33%31%194,690217,177239,197376,078307,744143,687165,522186,253322,855253,774EBITDA AND INCOME1S 2006 1S 2007 1S 2008 1S 2009 1S 2010EBITDA (Mill COP$) EBITDA MARGINNet Income1S 2009 1S 2010230.842 Mill $ 199.404 Mill $14%Operating Income1S 2006 1S 2007 1S 2008 1S 2009 1S 2010OPERATING INCOME (Mill COP$) OPERATING MARGIN (%)

EBITDA AND INCOMECompared to the first quarter of 2010 it is noticeable arecovery in margins and income42% 5% 36%4%38%15%47%31%44%39%53% 52%46%39%32% 32%23%180,612104,978142,242148,796207,222131,897168,856175,147125,92078,216104,922121,1871T2T1T2T1T2T2009 2010 2009 20102009 2010 2009 20102009 2010 2009 2010Operating IncomeEBITDANet Income

LEGAL STABILITY CONTRACTThe undersigned contract has a duration of 20 years and it stabilizes all activitiesincluded within ISAGEN’s social object, thus contributing to the Company’s growth.Provisions with a greater impact for ISAGEN•Permanence of 33% rate in income tax.•Exclusions from presumptive income applicable to ESP and power generation companies.•30% special deduction on the purchase of real productive fixed assets and tax deductions on income tax, VATon imports of heavy machinery for basic industries.Payment of a premium to The Nation (millions pesos)0.5% of the total annual investment on Sogamoso Project.Año 2010 2011 2012 2013 2014 TotalPrima 2.958 2.958 2.958 2.958 4.448 16.280

AGENDAHighlightsPower businessQuarterly ResultsExpansion PlanForecasts

EXPANSION PLANAdvances in Expansion Plan’s ProjectsGuarinó Project97,87%Manso Project59,50%Amoyá Project58,81%Sogamoso Project15,60%

FINANCING STRATEGYYear 2009 Year 2010Financing PlanCOP 2,7 billionsResource requirementsCOP 4,5 billionsFinancing PlanCOP 2,4 billionsObtained resources83%BonosLocalesCOP 450ClubDealCOP1,545The current scenario allowsISAGEN to work on newalternatives to optimize thelifetime of structured debt.CAF 265.400Hermes - Santander 161.150JBIC - BTMU 128.950Leasing Local 75.000Values in million pesosEstimated figures

AGENDAHighlightsPower businessQuarterly ResultsExpansion PlanForecasts

FORECASTS Guarinó enters production in August 2010. Continue with the Company’s Expansion Plan within the stablishedtimetable. Complete the total financing of the Expansion Plan. Continue with the commercialization efforts to achieve our financialgoals. Provision of the total value of the award of the Court of Arbitrationof the lawsuit on Miel.

LAWSUITCase 13571 related to the lawsuit placed in 2006 againstISAGEN by the Miel ConsortiumPESOS DÓLARESPretensiones 91.361.366.190 40.178.621Laudo Tribunal 38.782.430.847 10.944.683ISAGEN will make a provision of $113,869,994,296.79ISAGEN appealed for annulment of this award.

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