Interconexión Electrica S A E S P : Annual Report-4

2021

Message from ISA's CEO  • Report profile  •  The transaction  •  Profile of ISA and its companies  •  Strategy  •  Materiality analysis  •Financial results•Annexes

2020	effective %	Assets	Liabilities	Equity, excluding	Profit (loss)
profit for the	year
Internexa Argentina	99.42	33,189	15,393		17,629	167
Internexa Participações	99.42	29,658	405		36,245	(6,992)
Fundo de Investimento Assis	35.81	20,365	1		19,795	569
Sistemas Inteligentes en Red	99.77	18,327	8,363		3,354	6,609
Fundo de Investimento Barra Bonita Renda	35.81	14,388	3		14,021	364
Interconexiones Viales	65.00	3,643	124		3,712	(193)
ISA Intervial Colombia	100.00	592	19		582	(10)
Interligação Elétrica Riacho Grande	35.82	381	12		369	-
ISA Inversiones Tolten	100.00	34	-		39	(5)

33. Contingent liabilities and assets

As of December 31, 2020, and 2021, ISA and its companies are involved as defendants in administrative, civil, and labor lawsuits, none of which have the potential to cause significant impacts on the consolidated financial position and consolidated results of operations.

Litigation and claims to which ISA and its companies are exposed are managed by the legal area of ISA and each subsidiary. Lawsuits are periodically evaluated and classified according to their probability of loss. For those processes in which an outflow of resources is likely to occur and a reliable estimate can be made, ISA and its companies recognize the corresponding provisions in the consolidated financial statements (see Note 19).

ISA and its companies are defendants in labor, civil, social security and tax lawsuits involving risks of loss that, based on management's assessment supported by internal and third-

party legal counsel, are classified	as possible loss, for which no provision was recognized. ISA and its companies monitor the probability of loss periodically. The following are the
most significant cases in which the	probability of a possible outflow of resources is estimated.

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2021

Message from ISA's CEO  • Report profile  •  The transaction  •  Profile of ISA and its companies  •  Strategy  •  Materiality analysis  •Financial results•Annexes

Company	Nature	Description of the proceeding	No. of proceedings	Estimated value	Probability
		Nullity of EPTE merger by CTEEP
		• Declaratory action: lawsuit by which the minority shareholders claim the
		nullity of the merger of EPTE by the company or, jointly and severally, the
		declaration of their right of separation and determination of the payment of
		the value of reimbursement of shares.
CTEEP	Civil	• Damages action: in October 2020, the minority shareholders initiated a	2	349,026	Possible
		new action against the company claiming that the compensation for the
		value of the shares be calculated based on the RBSE report. The minority
		shareholders presented a technical-economic report that establishes an
		approximate amount of BRL 133 million for the lawsuit. The lawsuit is in
		the evidentiary phase.
		Goodwill amortization
		Judgments arising from tax assessment notices issued by the Federal Rev-
CTEEP	Tax	enue Service from 2013 to 2017 (period from 2008 to 2013), related to	2	123,006	Possible
		goodwill paid by ISA Capital in the acquisition of the shareholding control
		of CTEEP.
		Urban Land & Property Tax (IPTU)
CTEEP	Tax	The company is a party in processes related to the collection of property tax	159	66,667	Possible
		(IPTU) in several municipalities in the State of São Paulo.

34. Guarantees

ISA and its companies provide guarantees to support the growth of their different business units and to ensure the viability of strategic commercial projects and operations. Guarantees within the framework of paragraph 14 of IFRS 7 corresponding to pledged assets as contingent asset/liability guarantees granted by ISA and its companies.

As of December 31, 2021, and 2020, the total amount of outstanding guarantees classified by country of domicile of the company granting the guarantee is as follows:

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2021

Message from ISA's CEO  • Report profile  •  The transaction  •  Profile of ISA and its companies  •  Strategy  •  Materiality analysis  •Financial results•Annexes

	2021		2020
Chile		13,900,272	12,071,870
Colombia		2,679,000	5,345,852
Brazil		1,657,079	1,547,457
Total amount of outstanding guarantees	18,236,351	18,965,179

Type of guarantee	Beneficiary	Purpose	End	Original	Value in original	Balance in
date	Currency	currency	COP (MM)
COLOMBIA
Security interest in the contractual rights		Guarantee the present and future obligations of the joint and
of the concession contract, in a commer-	Cititrust Colombia S.A.	07/02/34	COP
several obligors, derived from the financing documents.
cial establishment, in fiduciary rights
	Cititrust Colombia	Guarantee the present and future obligations of the joint and
Assignment as security of credit rights	S.A/ Fideicomiso P.A.	07/02/34	COP
several obligors, derived from the financing documents.
	Transacción Costera
		To conditionally guarantee the assignment as security to the
Security interest on accounts	Cititrust Colombia S.A.	Fideicomiso P.A. Transacción Costera and compliance with	07/02/34	COP
		the terms and conditions of the concession contract.			2,679,000	2,679,000
Security Interest	Cititrust Colombia S.A.	Guarantee the present and future obligations of the joint and	07/02/34	COP	million
several obligors, derived from the financing documents.
Trust agreement / Security interest	Cititrust Colombia S.A.	Guarantee compliance with obligations pursuant to the trust	07/02/34	COP
agreement.
		Guarantee compliance with the trust agreement (Fideicom-
Trust agreement / Security interest	Cititrust Colombia S.A.	iso P.A. Costera), required by the concession agreement,	07/02/34	COP
		which acts as debtor pursuant to the financing documents.
Equity support and share retention agree-		Ensure project's liquidity preservation by shareholders and
ment (Capital contribution agreement).	Cititrust Colombia S.A.	07/02/34	COP
Corporate guarantee		compliance with contractual obligations.

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2021

Message from ISA's CEO  • Report profile  •  The transaction  •  Profile of ISA and its companies  •  Strategy  •  Materiality analysis  •Financial results•Annexes

Type of guarantee	Beneficiary	Purpose	End	Original	Value in original	Balance in
date	Currency	currency	COP (MM)
Total Ruta Costera						2,679,000
Colombia						2,679,000
BRAZIL
Pledge of Shares	Itaú Corpbanca	Guarantee compliance with payments of the obligations un-	12/15/43	BRL	1,010,844,450	721,142
dertaken with Debênture de Infraestrutura.
Pledge of Shares	BNDES	Guarantee compliance with payment obligations of the bond	02/15/30	BRL	477,631,316	340,745
indenture with BNDES.
Corporate Surety Bond	Itaú Corpbanca, BES	Guarantee compliance with payments of the obligations un-	03/18/25	BRL	214,384,819	152,943
Pledge of Shares	dertaken with Debênture de Infraestrutura.
Fiduciary assignment of	BNDES	Guarantee compliance with payment obligations of the bond	03/15/32	BRL	199,537,270	142,351
credit rights	indenture with BNDES.
Pledge of Shares	Banco da Amazônia	Guarantee compliance with payment obligations of the bond	01/10/33	BRL	143,825,205	102,606
indenture with Banco da Amazônia.
Corporate Surety Bond	Banco do Nordeste	Guarantee compliance with payment obligations of the bond	05/19/30	BRL	135,405,725	96,599
Pledge of Shares	indenture with Banco Nordeste.
Pledge of Shares	BNDES	Guarantee compliance with payments of the obligations un-	12/15/28	BRL	78,485,406	55,992
dertaken with Debênture de Infraestrutura.
Pledge of Shares	BNDES		05/15/26	BRL	31,752,895	22,653
Pledge of Shares	BNDES	Guarantee compliance with payment obligations of the bond	05/15/26	BRL	15,809,999	11,279
Pledge of Shares	BNDES	02/15/28	BRL	6,702,297	4,781
indenture with BNDES
Pledge of Shares	BNDES	02/15/28	BRL	5,785,556	4,127
Pledge of Shares	BNDES		05/15/25	BRL	2,608,769	1,861
Total ISA CTEEP						1,657,079
Brazil						1,657,079

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2021

Message from ISA's CEO  • Report profile  •  The transaction  •  Profile of ISA and its companies  •  Strategy  •  Materiality analysis  •Financial results•Annexes

Type of guarantee	Beneficiary	Purpose		End	Original	Value in original	Balance in
	date	Currency	currency	COP (MM)
CHILE
	Banco de Chile / MBIA
	Insurance Corporation	Guarantee compliance with payment and obligations of
Pledge of Shares	/ Banco del Estado de
USD Bond Financing and UF bonds Series C, D, E, and F	12/15/30	UF	21,472,361	3,136,448
Chile y Wilmington
	(Ruta del Maipo)
	Trust National
	Association
Pledge of Shares	Banco Chile	Guarantee compliance with duties and obligations pursuant	07/02/34	COP	375,112,718,002	375,113
(security agent)	to concession share transfer agreement
Pledge of Shares	Syncora Guarantee	Guarantee compliance with payment obligations of Series A
and B Bonds financing and the current credit line (Ruta del	12/31/22	UF	1,590,688	232,350
Inc.
	Bosque)
Pledge of Shares	Banco Santander	Guarantee compliance with obligations of the project financ-	06/15/50	UF	1,556,500	227,356
(Securities Agent)	ing contract
	Banco de Chile,	Guarantee compliance with payment obligations of the 2010
Pledge of Shares	Banco Estado e Itaú	Financing, 2013 Refinancing and Opening	of Financing and	06/15/24	UF	1,438,438	210,111
	Corpbanca Chile	Modification for the 2018 Loan (Ruta de la	Araucanía)
	Banco de Chile, Banco	Guarantee compliance with payment obligations of the 2010
Pledge of Shares	Estado and Itaú	Financing, 2013 Refinancing and Opening	of Financing and	03/17/25	CLP	31,165,867,979	146,890
	Corpbanca Chile	Modification for the 2018 Loan (Ruta de la	Araucanía)
Pledge of Shares	BICE, Security and	Guarantee compliance with obligations of the bond	09/30/25	UF	600,397	87,699
BCI Banks	indenture.
	Banco de Chile / MBIA
	Insurance Corporation	Guarantee compliance with payment obligations of USD
Pledge of Shares	/ Banco del Estado de	Bond Financing and UF bonds Series C, D, E, and F	12/31/22	USD	11,948,868	47,570
Chile and Wilmington

Trust National	(Ruta del Maipo)
Association

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