Interconexión Electrica S A E S P : Isa will pay 45% of its profits to its shareholders in dividends

• The company will pay a dividend of COP 675 per share. The total disbursement will increase to COP 747.683 million, the highest amount pai​d so far.

• For the fourth consecutive year, the Group obtained the best historic results: a net income of COP 1,64 trillion and a ROE of 13.2%.

• ISA and its companies invested COP 2,6 trillion (USD 784 million) in 2019, of which 33% were invested in Colombia.

• ISA's social investment in 2019 increased to USD 23.5 million and the environmental investment exceeded USD 9 million.

The Ordinary General Shareholders' Meeting of ISA held today 27 March, via online and broadcasted by internet, in compliance with the declaration of preventive isolation decreed by the National Government. It was approved to pay a dividend of COP 675 per share for the 1,107,677,894 ordinary shares outstanding. This approval means a total payment to shareholders for COP 747.683 million, the highest amount paid by the company so far, which corresponds to 45% of 2019 net income (COP 1,64 trillion). In the last 5 years, the dividend payment has had an average annual increase of 20%, higher than Colombia's inflation and the behavior of other investments.

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Similarly, and with the purpose of complying with the investment commitments entered and contributing with the financial soundness of the group, an occasional reserve for COP 895.822 million was approved.

During the meeting, the same 7 independent members and the 2 non-independent members who were holding the position were elected for the period from April 1, 2020 to March 31, 2021.

ISA reached a ROE of 13.2%, the highest of its history

In 2019, the shareholder's returns on equity (ROE) reached 13.2%, the highest of ISA's history, showing its commitment to profitable growth and careful control of costs and expenses.

The group generated an income for COP 8,14 trillion with a 12.5% growth, compared with 2018 results. EBITDA accumulated COP 5,29 trillion, a 9.8% more than in previous year, going positively towards meeting the goal set out in ISA2030 Strategy: increasing the 2018 EBITDA by 70%. Net income was COP 1,64 trillion, representing a 7.5% growth compared with 2018. These indicators are based on the entry into operation of new projects in Colombia, Chile, Brazil, and Peru, finance optimizations, as well as the strict and efficient administration of management, operation, and maintenance of costs and expenses, among other reasons.

In addition, ISA and its companies invested COP 2,6 trillion (USD 784 million) in 2019, of which 33% were invested in Colombia. These investments were mainly focused on the development and construction of new projects related to energy transmission projects, expansion of existing infrastructure, assets renewal, and technological developments. ISA's investment plan as of 2030 includes a total investment of USD 12.5 billion, of which USD 3,657 million are compromised between 2020 and 2024.

Sustainability

In 2019, the company ratified its commitment to sustainable value generation for its stakeholders and for the company in general. Consequently, ISA invested USD 9.2 million (USD 5.8 in Colombia, equivalent to 62%) to meet the environmental commitments of the projects and manage the impacts on its business units. To comply with these commitments, environmental management programs were developed in 4 lines: conservation and restoration, environmental management programs, archeology, and environmental education.

The most relevant events of the environmental period include the start of operations in Brazil of the Conexión Jaguar Program®, supporting a conservation project in the largest continental wetland in America, where the highest number of Jaguars has been detected in the continent. Likewise, in Peru, the program started to support its second conservation project located in the Peruvian Amazon region. During the three years, Conexión Jaguar (program developed together with its technical allies South Pole and Panthera), has been operating, camera traps have recorded more than 60 species of animals, which territory has been protected. It has started with 5,698 Tons of CO2e and has protected more than 400 thousand hectares of forest.

Furthermore, in the last 3 years, the group multiplied by four its social management investment. More than USD 23 million (USD 10 in Colombia) were used in 2019 to promote the development of communities where ISA operates, benefiting 1,554 social organizations and almost half a million persons with programs in 4 management lines: development and institutional strengthening, community infrastructure, social promotion actions, and education and coexistence.

Innovation

One of the pillars supported by ISA2030 Strategy is innovation, a topic in which the group invested USD 15.9 million in 2019. We have developed many entrepreneurship projects within the Group's affiliates, such as Ecoregistry, a platform launched by our affiliate XM to simplify the registration of projects and carbon credits. In addition, this is the first initiative to materialize the use of blockchain with a positive environmental impact. Finally, Octupus, launched by our affiliate INTERNEXA, is a tool used to monitor the status of variables that manage the civil and electric infrastructure, which support the operation of telecommunication equipment.

These results were presented in a virtual press conference, welcoming the preventive measures adopted by the national government to confront the COVID-19 pandemic in the country. Regarding this situation, ISA's CEO, Bernardo Vargas Gibsone, stated: 'The coronavirus has tested us as persons, company, and society. It has also ratified how vulnerable we are and our urgent need for mutual care and making the best decisions as human beings. We are optimistic, but we do not underestimate risks. Hence, we continue increasing our efforts and tirelessly working in all countries to protect the integrity and safety of our employees and their families, and to guarantee the efficient and reliable provision of our services. We are confident that this contingency will bring out the best in everyone, give us great lessons, and strengthen our solidarity and commitment.'​