INSTITUTIONAL PRESENTATION

3Q19 | RESULTS ISA CTEEP

ISA CTEEP in the Transmission Sector

Sustainable Value

Financial Highlights WHY INVEST IN ISA CTEEP?

Strong Cash Growth Generation Opportunities in retrofitting, No demand greenfield projects risk and low and M&A default risk

Profitability Dividends Sustainable value creation Minimum payout of 75% (regulatory net income) Investment Grade Benchmark Fitch: AAA(bra) Reference Company in quality and O&M Valuation Attractive valuation ISA CTEEP IE Garanhuns 51% Revenue² : BRL 2,579 million Revenue² : BRL 46 million

IE Pinheiros 100% IENNE 100% Largest publicly traded pure transmission Revenue² : BRL 57 million utility in Revenue² : BRL 46 million IE Serra do Japi 100%

▪ Transmission of ~25% of Brazil’s power Revenue² : BRL 58 million generation IE Madeira 51% IEMG 100%

Revenue²: BRL 260 million Revenue²: BRL 19 million IE Itapura Bauru 100% Transmission of ~100% of the power ▪ Revenue² : BRL 12 million generated in the State of São Paulo

▪ Benchmark player in costs and quality 18.6 thousand km of transmission lines 126 substations Evrecy 100% 65.9 thousand MVA of transformation Revenue² : BRL 10 million capacity

▪ RAP ISA CTEEP2019/2020 cycle: BRL 3.1 billion¹

IE Sul 100%

Revenue² : BRL 18 million

Notes: ¹ Operational assetsL ² 2019/2020 Revenue Cycle proportional to ISA CTEEP’s participation IE Itaquerê 100% IE Paraguaçu 50% Revenue²: BRL 51 million Revenue²: BRL 59 million IE Itapura Lorena 100%

Revenue²: BRL 11 million Largest publicly traded pure transmission utility in Brazil IE Ivaí 50% IE Aguapeí 100% Revenue²: BRL 147 million Revenue²: BRL 59 million ▪ Sustainable growth IE Tibagi 100% Organic growth: CapEx of around BRL 180 million/year Revenue²: BRL 20 million

Greenfield Projects¹: Revenue (RAP) cycle 2019/2020: BRL 479 million/year

IE Aimorés 50%

Revenue² : BRL 40 million

IE Itaúnas 100%

Revenue²: BRL 52 million

IE Biguaçú 100%

Revenue²: BRL 40 million

Notes: ¹ ISA CTEEP’s investments in 10 projects acquired in 2016, 2017 and 2018 auctions. CAPEX and 2019/2020 Revenue adjusted to ISA CTEEP’s participation ² Considers 2019/2020 Revenue Cycle adjusted to ISA CTEEP’s participation A successful story of growth, resilience and performance

Winner bid for 5 lots in April auction ISA acquires CTEEP and Extension of Main becomes the Concession CESP spin off creates controlling Contract (059/2001) Winner bid for Transmissão Paulista shareholder 2 lots in June for 30 years auction Transmissão Set up of RBSE Paulista merger compensation with EPTE Expansion to 17 (Ordinance 120 Brazilian states through Ministry of Mining greenfield projects and and Energy) IE Itapura acquisitions (Bauru) startup Winner bid for 3 lots in October auction

1999 2001 2006 2007 2012 2013 2016 2017 2018 2019²

‘000 km¹ of 18.6 18.6 transmission lines 11.5 12.3 15.4 17.7 18.6 Consolidated regulatory EBITDA 2.2 ICVM 527 in 1.6 2.5 BRL billion 0.1 0.7 1.1 1.6 0.2 0.7

Note: ¹ Information considers 100% of the projects ² Last 12 months ending on 09/30/2019 Shareholder Structure on 09/30/2019

▪ Tickers: TRPL3¹ and TRPL4²

▪ Corporate Governance: Level 1 at B3 Common shares: 257,937,732 Preferred shares: 400,945,572 Total: 658,883,304 ▪ Average daily volume in 9M19: BRL 33 million

35.8% 64.2% ▪ Market cap³: BRL 17 billion ISA Free Float ISA CTEEP ▪ Distribution of capital: CONTROLLED BY ISA Common shares: 89.5% Common shares: 10.5% 53% of foreign investors Preferred shares: 1.3% Preferred shares: 98.7% 47% of Brazilian investors FREE FLOAT OF 64% ▪ ADRs: “CTPTY” and “CTPZY”

▪ Coverage of 12 institutions: 67% Hold 35.4% 28.8% 33% Sell Others Common shares: 9.8% Common shares: 0.7% Preferred shares: 51.9% Preferred shares: 46.8%

Notes: ¹ Common share l ² Preferred share l ³On 09/30/2019 INTERCONEXIÓN ELÉCTRICA, A multilatina company focused in transmission with growth ▪ Largest high-tension electric ISA S.A.E.S.P. opportunities in Brazil transmission network in Latin America Operational: ▪ 46,280 km of transmission lines Central Colombia ▪ 91,880 MVA in power capacity America 70% of participation in the Transmission market in 2018 Under construction: ▪ 5,869 km of transmission lines ▪ 13,232 MVA in power capacity

Peru ▪ Businesses in: 70% of participation in the Transmission market ▪ Energy transmission in 2018 ▪ Highway concessions Brazil ▪ Information Technology/Telecom 20% of participation in the Transmission market in 2018 ▪ Controlled by the Colombian Chile government (51% of shares) 5% of participation in the Transmission market in 2018 ▪ Market cap: USD 5 billion¹

Bolivia Argentina

Solid Presence in Latin America: 7 countries, 3 sectors, Notes: ¹ On 09/30/2019 43 companies CORPORATE ISA CTEEP and its subsidiaries Assured STRUCTURE Annual Revenue (RAP) 2019/2020 Cycle of BRL 4.1 billion RAP Cycle RAP ISA CTEEP Location 2019/2020¹ Cycle 2019/2020 Profit Regime² Share (%) Consolidation (BRL million) (BRL million) ISA CTEEP Operational São Paulo 2,579 2,579 Real Profit ISA CTEEP 100% Fully consolidated IE Madeira Operational Rondônia / SP 511 260 Real Profit ISA CTEEP 51% / Furnas 24,5% / Chesf 24,5% Equity method IE Ivaí Under construction Paraná 294 147 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Paraguaçu Under construction Bahia / MG 118 59 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Garanhuns Operational 91 46 Real Profit ISA CTEEP 51% / Chesf 49% Equity method IE Aimorés Under construction 79 40 Real Profit ISA CTEEP 50% / TAESA 50% Equity method IE Pinheiros Operational São Paulo 57 57 Presumed Profit ISA CTEEP 100% Fully consolidated IE Serra do Japi Operational São Paulo 58 58 Presumed Profit ISA CTEEP 100% Fully consolidated IE Aguapeí Under construction São Paulo 59 59 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itaúnas Under construction Espírito Santo 52 52 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itaquerê Under construction São Paulo 51 51 Presumed Profit ISA CTEEP 100% Fully consolidated IENNE Operational 46 46 Presumed Profit ISA CTEEP 100% Fully consolidated IE Biguaçu Under construction 40 40 Presumed Profit ISA CTEEP 100% Fully consolidated IE Tibagi Under construction SP / Paraná 20 20 Presumed Profit ISA CTEEP 100% Fully consolidated IE Sul Operational 18 18 Real Profit ISA CTEEP 100% Fully consolidated IEMG Operational Minas Gerais 19 19 Presumed Profit ISA CTEEP 100% Fully consolidated Evrecy Operational Espírito Santo 10 10 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Bauru Operational São Paulo 12 12 Presumed Profit ISA CTEEP 100% Fully consolidated IE Itapura - Lorena Under construction São Paulo 11 11 Presumed Profit ISA CTEEP 100% Fully consolidated Total 4,127 3,587 ¹ 2019/2020 cycle RAP with PA, net of PIS and COFINS ² Presumed profit: a presumed profit of 8% of operational revenue is calculated, with a retainment of 25% of income tax rate on the presumed amount. For the Social Contribution of Net Profit (CSLL), 12% of operational revenue is calculated, with a retainment of 9% of CSLL on presumed profit. Real Profit: 34% of income tax + CSLL on real taxable profit Corporate Governance Structure

Shareholders Ethics and Transparency recognized at ISA Board of Directors Board of Auditors and at ISA CTEEP 8 effective members, of 5 effective members which 2 are independent and 5 substitute levels and one is elected by the members employees Experienced Human Resources Audit Committee Committee Management team focused on value CEO creation César Ramirez 2019 Transparency Institutional Relations CFO and IRO Project Director COO Trophy from Department ANEFAC Alessandro Gregori Filho Weberson Abreu Rafael Noda Carlos Ribeiro CONNECTIONS THAT CREATE VALUE THROUGH

ACTIONS JAGUAR CONNECTION:

▪ Forest projects that reduce the impact of greenhouse gases ▪ Climate change mitigation ▪ Conservation of biodiversity in jaguar’s habitat

SOCIAL RESPONSIBILITY: Sponsorship with tax benefit

▪ ~BRL 15 million in investments in 2018 ▪ Projects related to Youth Leadership, Local Development, and the Environment ▪ Educational Focus CONEXIONS THAT INSPIRE CONNECTIONS TO GENERATE SUSTAINABLE VALUE

Digitalization Energy Storage Ancillary Services Real Estate Opportunities

Operational safety optimization with cost reduction through substation teleassistance and retrofitting

EFFICIENCY NEW BUSINESSES ISA CTEEP

ISA CTEEP in the Transmission Sector

Sustainable Value

Financial Highlights IS THE PURE TRANSMISSION COMPANY IN THE SECTOR IN BRAZIL

2018 Market Share Transmission Revenues ¹ ( t h o u s a n d km of lines) ( 2019/2020 cycle)

Eletrobras 65 Total: BRL 37 billion 34% ISA CTEEP 19 36%

TAESA 13

Alupar 7 4% 9% 10% 7% State Grid 6

Eletrobras ISA CTEEP TAESA State Grid Alupar Others

Source: ANEEL

SIN² is composed of 135 The transmission sector is regulated and TransmissionTransmission companies companies are are thousand km of transmission monitored by ANEEL³ and coordinated remuneratedremunerated by by the the availability availability of of its its lines and serves 98% of the and controlled by ONS4 assetsassets. There is no demand risk and market no default risk.

Notes: ¹ Considers auctions held until December of 2018 | ² Interconnected National System| ³ National Electric Energy Agency | 4 National Operator of the Electric System THE COMPANY’S MAIN IS IN

Concessions prior ▪ Revenue (RAP) annually adjusted by IPCA to 1998 ▪ Contracts renewed in 2013 (Provisional Measure 579/2012) RAP in ▪ Tariff Reset every 5 years (O&M, WACC operation: and RAB¹) 72%

Concessions ▪ RAP annually adjusted by IGP-M between 1999 th and 2006 ▪ 50% RAP reduction on the 16 year of operation RAP in operation: ▪ No tariff reset 1% ▪ Reset of reinforcements and improvements, starting in July 2019 every 5 years

Concessions ▪ RAP annually adjusted by IPCA after 2008 ▪ 30-year-contract, with 3 tariff resets (cost of RAP in debt applied at WACC) operation: 13% ▪ Reset of reinforcements and improvements every 5 years RAP under construction: 14%

Note: ¹ Regulatory Asset Base DEMAND DOES NOT IMPACT TRANSCO’S REVENUE Annual Allowed Revenue (RAP) Breakdown ISA CTEEP

▪ Revenue (RAP) approved by ANEEL with periodic tariff reset (“PTR”) Net Investment x RBSE Annual Costs of Regulatory WACC ▪ RBSE (CAEE) Electric Assets + Receivables related to the non depreciated assets (CAAE) Gross Investment x in operation in May/2000 (Contract 059/2001) Depreciation Rate

▪ O&M Part of revenues that reimburses operational costs PV of concessionaires partially or fully. Defined in the O&M

PTR process and annually adjusted by inflation (AOM) PV O&M Revenue Gross Investment x ▪ New Investments (NI) %O&M Organic growth with execution of authorized (AOM) reinforcements and improvements NI (CAAE & AOM) ▪ Variable Parcel (PV) Revenue reduction due to unavailability OTHERS¹

▪ Adjustment Parcel (PA) PA Compensates excess or deficit of revenues in the previews tariff cycle

Note: ¹Other revenues consider bilateral and sharing contracts ISA CTEEP

ISA CTEEP in the Transmission Sector

Sustainable Value

Financial Highlights REMUNERATION FROM ASSET AVAILABILITY

Assured Annual Revenue (RAP) - 2019/2020 Cycle¹

R$ 3,585 million Operação e Projetos Integração Regulação Jurídico Crescimento Manutenção Crescimento Subsidiárias Valor Justo Gestão Disciplina Eficiência, Qualidade, Orgânico RAP de Litígios de Capital Segurança Composition of Contract 059 RBSE

O&M Contract 059 New Investments Subsidiaries in Operation PESSOASSubsidiaries in Constructio

Note: ¹ Considers revenue proportional to ISA CTEEP’s participation in assets with partnerships FREQ (times) DREQ (minutes) IENS (%) Equivalent Frequency of Interruption Equivalent Duration of Interruption Index of Non-Supplied Energy

ISA CTEEP 0.1 ISA CTEEP 2.43 ISA CTEEP 0.0013%

South South South 0.05 1.61 0.007%

Southeast/ Southeast/ Southeast/ Midwest 0.1 Midwest 6.86 Midwest 0.0025%

SIN 0.14 SIN 6.9 SIN 0.0025%

Northeast 0.23 Northeast 16.99 Northeast 0.0052%

North 0.51 North 8.92 North 0.0029%

Sep/2019 figures Focus in cost efficiency, service quality and operational safety to maximize results

DREQ/FREQ indicators, in Focus in efficiency results in reduction of Sep/19, suggest that for 37% of OPEX, excluding contingencies, every 8 years and 4 months, going from BRL 915 million in 2006 to BRL 1 there would be 1 total 572 million in 2018 shutdown of ISA CTEEP’s system of approximately 24 minutes

Note: ¹ Considers controlled and affiliates weighted by the Company’s share IENNE (100%) TL: 710 km MANAGEMENT OF Substation: none SUBSIDIARIES Revenue: BRL 46 million WITH GOVERNANCE AND INTEGRATION

▪ 9 subsidiaries in operation IE Garanhuns (51%) TL: 633 km Substation: 2,100 MVA ▪ 15 concession contracts Revenue¹: BRL 46 million

4.4 thousand km of transmission lines Evrecy (100%) ▪ TL: 154 km Substation: 450 MVA IE Madeira (51%) Revenue: BRL 10 million ▪ 17 thousand MVA of power TL: 2,385 km transformation capacity Substation: 7,470 MVA IEMG (100%) Revenue¹: BRL 260 million TL: 173 km Substation: none ▪ Revenue (RAP) of BRL 526 million¹ IE SUL (100%) Revenue: BRL 19 million TL: 167 km Substation: 900 MVA IE Pinheiros (100%) Revenue: BRL 18 million TL: 1 km Substation: 4,200 MVA Revenue: BRL 57 million

Note: IE Itapura – Bauru ¹ 2019/2020 RAP Cycle weighted by ISA CTEEP’s participation Transmission (100%) 1 Static Component Line (TL) Substation IE Serra do Japi (100%) TL: 137 km (Bauru Substation) In operation Line Entrance Substation: 2,000 MVA Revenue: BRL 12 million Revenue: BRL 58 million RBSE (BASIC NETWORK OF EXISTING SERVICE) CASH FLOW BOOSTS CASH GENERATION FOR THE NEXT YEARS

RBSE Receivables Schedule² (BRL million) ▪ RBSE: receivables related to the non depreciated assets in operation in 1,566 1,532 1,532 1,532 1,532 May/2000 1,461

▪ April of 2017 injunction determined 729 1,132 785 785 785 785 temporary exclusion of Ke 750

▪ In October of 2019 Bill 4,636/19 was 785 approved in the House of Mines and 785 Energy Commision, that proposes the exchange of Ke to WACC. This Bill is in 837 discussion at the Finance and Taxation 711 747 747 747 747 785 Committee (CFT) and will later follow to the CCJC and then to the Senate 347

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025

Financial Component Economic Component

PROCEEDINGS 246 253 264 264 264 264 264 264 WACC 151 156 163 163 163 163 163 163 LOWER HOUSE UPPER HOUSE EXECUTIVE SANCTION CME CFT CCJC COMMITTEES PLENARY VETOS 246 253 264 264 264 264 264 264 Notes: Ke 246 253 264 264 264 264 264 264 ¹ Technical Note 170/17 | ² Net of PIS/COFINS Note: ¹ Net of PIS/COFINS. Amounts represent what was established for cycles 2017/2018 (REH ANEEL 2,258), 2018/2019 (REH ANEEL 2,408) and 2019/2020 (REH ANEEL 2,565). Premises for future cycle according to REN ANEEL 762/2017 and based on REH ANEEL 2,565. Regulatory WACC of 6.64%, that will be updated in the tariff review. Asset base is subject to write-offs in the tariff review process. ▪ Transmission concession contracts renewed in 2013 are subject to a periodic tariff reset (“PTR”) every five years ▪ ANEEL opened Public Hearings 41/2017, 31/2018 and GUARANTEE 09/2019 to discuss and improve 2018 PTR rules AN ▪ PTR was postponed to Cycle 2020/2021, with retroactive ADEQUATE effects to 2018 TARIFF RESET

Regulatory Operational Improvements in small Cost of Capital Regulatory Asset Base & Costs (O&M) scale (WACC) Regulatory Price Reference GUARANTEE ADEQUATE TARIFF RESET

Regulatory Minor Cost of Capital Regulatory Asset Operational improvements WACC Base & Price Costs Reference ▪ New Price Reference Technical Note 215/2018 ▪ Opening of Public Hearing ▪ Technical Note (“TN”) ▪ 09/2019 and publication of approved by Resolution 204/2018 Technical Note 37/2019 2,514/2019 ▪ Fixed revenue throughout the tariff cycle ▪ Reduction of O&M costs of ▪ Increase of WACC from ▪ Price Reference constructed 17% (vs. 19% TN 6.64% to 7.32% based on investments in the 141/2018), phased in 5 ▪ ANEEL proposal based on sector between 2013 and 2017 years investments realized in the last years ▪ Deadline to send contributions to Public Hearing on 12/02/2019 ▪ Evaluation report of assets ▪ TN subject to approval in should be presented to ANEEL in ANEEL board meeting ▪ Annual revenue proposed of mid July of 2019 (ANEEL approximately BRL 10 dispatch 1,140/2019) million/year ▪ Next steps: ANEEL auditing of the report IE Paraguaçu (50%)² TL: 338 km Substation: none CAPEX ANEEL: BRL 510 million

RevenueCycle 19/20: BRL 118 million Deadline ANEEL: Feb/22

IE Aimorés (50%)² TL: 208 km Substation: none 9 PROJECTS CAPEX ANEEL: BRL 341 million

RevenueCycle 19/20: BRL 79 million UNDER Deadline ANEEL: Feb/22

CONSTRUCTION IE Itaúnas (100%) IE Aguapeí (100%) TL: 79 km WILL ADD BRL 479 TL: 111 km Substation: 1,200 MVA Substation: 1,400 MVA 1 Static Component MILLION OF CAPEX ANEEL: BRL 602 million CAPEX ANEEL: BRL 298 million RevenueCycle 19/20: BRL 59 million RevenueCycle 19/20: BRL 52 million REVENUE¹ Deadline ANEEL: Aug/21 Deadline ANEEL: Feb/22 IE Itaquerê (100%) IE Tibagi (100%) 3 Synchronous Components TL: 18 km in double circuit (Araraquara Substation) Substation: 500 MVA CAPEX ANEEL: BRL 398 million CAPEX ANEEL: BRL 135 million RevenueCycle 19/20: BRL 51 million RevenueCycle 19/20: BRL 20 million Deadline ANEEL: Aug/21 Deadline ANEEL: Aug/21 IE Itapura - Lorena (100%) IE Biguaçú (100%) TL: 6 km in double circuit TL: 57 km Substation : 1,200 MVA Substation: 300 MVA CAPEX ANEEL: BRL 238 million CAPEX ANEEL: BRL 641 million RevenueCycle 19/20: BRL 11 million Deadline ANEEL : Sep/22 RevenueCycle 19/20: BRL 40 million Deadline ANEEL : Sep/23 IE Ivaí (50%)² Note: TL: 599 km (230/500 kV) in double circuit ¹ 2019/2020 RAP Cycle proportional to ISA CTEEP’s participation ²Considers information of the project (100%) Transmission Substation: 2,988 MVA Lines (TL) CAPEX ANEEL: BRL 1,936 million Substation Revenue : BRL 294 million Under construction Cycle 19/20 Line Entrance Deadline ANEEL: Aug/22 GROWTH OPPORTUNITIES TO CREATE VALUE GREENFIELD PROJECTS AND RETROFITTING

2029 Decennial Energy Plan 2019 Auction ▪ BRL 104 billion of investments in ▪ December of 2019 transmission estimated for 2020-2029 ▪ 13 lots in 12 States ▪ 71% of transmission lines ▪ 2,380 km of lines ▪ 29% of substations ▪ Investment of ~BRL 4 billion ▪ Increase of around 56 thousand km of new transmission lines

M&A Constantly evaluating market opportunities for consolidation ISA CTEEP

ISA CTEEP in the Transmission Sector

Sustainable Value

Financial Highlights NET REVENUE (BRL MILLION) O&M COSTS¹ (BRL MILLION)

2,767 538 509 467 446 2,045 1,778

951 STRONG CASH GENERATION BOOSTED BY 2016 2017 2018 9M19 2016 2017 2018 9M19 RBSE EBITDA ICVM 527 (BRL MILLION) NET INCOME (BRL MILLION) EBITDA 51% 76% 83% 80% REGULATORY Margin RESULTS HIGHLIGHTS 2,287 1,290

1,631 889 1,351 635

Note: 488 ¹ Costs do not consider depreciation and contingencies 246 Net Revenue and EBITDA include only 100% owned subsidiaries. Shared control companies are accounted as equity shareholder. 2016 2017 2018 9M19 2016 2017 2018 9M19 Debt Profile on 09/30/2019 SOLID DEBT PROFILE WITH ▪ Gross Debt: BRL 3.1 billion ▪ Average cost: 7.1% p.a ▪ Average term: 3.3 years Investment Grade by Fitch: ▪ Net Debt / EBITDA: 0.8x AAA(bra)

▪ Debt Amortization Schedule (BRL million) Debt Breakdown 1,090

924 6% 18%

28%

389 290 48% 246

82 77 51 BNDES - TJLP Debentures - CDI/IPCA Lei 4,131 Others 2019 2010 2021 2022 2023 2024 2025-2029 2030+ (BRL million) 1,985 887

585

335 226 247 Strong cash generation allows higher dividends 2014 2015 2016 2017 2018 9M19

Regulatory 91% 136% 101% 92% 154% 100% Payout

▪ 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 ▪ Dividend yield of 5.5% in 9M19 DOES NOT REFLECT ISA CTEEP’S CASH GENERATION

(BRL) TARGET TARGET PRICE COVERAGE PRICE RATING (BRL/share) 25 HBSC 24 Hold 86 24 ▪ XP ▪ HSBC ▪ Citi Citi 24 Hold 84 XP Investimentos 24 Hold 23 ▪ JP ▪ Brasil Brasil Plural 23 Sell 82 Morgan Plural JP Morgan 23 Sell 22 ▪ Itaú BBA 80 Itaú BBA 22 Sell 21 ▪ Bradesco Bradesco 21 Hold 78 BTG 20 Hold 2076 ▪ BTG Safra 19 Hold

Merrill Lynch 19 Hold 1974 ▪ Safra ▪ Merrill ▪ Santander Santander 19 Hold Lynch 72 Banco do Brasil 17 Sell 18

Average Target Price BRL 21 70 17 ▪ Banco do Brasil 68 16 Sell Hold Buy INVESTOR RELATIONS e-mail: [email protected] phone: +55 11 3138-7407 www.isacteep.com.br/ir