Integrated Report 2020 CONNECTIONS THAT INSPIRE Content Statement of Responsibility [GRI 102-50] This document contains true and sufficient information about the business activities carried out by Consorcio Transmantaro S.A. (ISA CTM) during 2020. Notwithstanding the responsibility of the issuer, the undersigned parties take responsibility for its content in accordance with applicable legal provi- sions. Bernardo Vargas Carlos Mario Caro Sánchez Chairman of the Board General Manager [GRI 102-51, 102-52, 102-54] “This report is prepared on an annual basis, with 2019 as the latest reporting year” “This report has been prepared in accordance with the GRI Standards: Core option”. Message from the Chairman [GRI 102-14] Dear Shareholders, Despite the various changes in all economic At the financial level, ISA CTM ended 2020 with a Net Profit of sectors that COVID-19 caused worldwide, USD 60 MM, increasing by 4.6% compared to 2019 and EBIT- ISA CTM proved its succeed, transforming its DA of USD 187.4 MM, with an increase of 2.8% compared to processes with resilience and adaptability, to the previous year. Additionally, it has assets amounting to USD continue offering the quality service that millions of 1,807.8 MM and equity of USD 472.4 MM. Peruvians needed during 2020, thus contributing The risk rating carried out by specialized agencies confirmed the to their development and well-being. strength and financial soundness of ISA CTM, maintaining the Therefore, I am pleased to share with you the results of ISA investment grade with international rating agencies, Baa3 from CTM’s management during that period, which show excellent Moody’s Investor Service and BBB from Fitch Ratings. This de- financial and operational performance, as well as fulfillment of cision is based on the stability and positive trend of the compa- relevant milestones, which reaffirm our leadership in the elec- ny’s revenues and profits from electricity transmission services. tricity sector and our purpose of generating CONNECTIONS In addition, during 2020, ISA CTM successfully ‘reopened’ its THAT INSPIRE with our stakeholders, despite the uncertainty. green international bond for USD 200 MM. The management of ISA CTM was carried out by Red de En- Likewise, ISA CTM continued developing power transmission ergía del Perú (ISA REP), a company that fulfilled its commit- infrastructure expansion projects, with an investment of more ments and allowed us to continue with our progress. than USD 564.7 MM. Among them, the development of the 4 [GRI 102-14] Yana Coya projects with the Peruvian State stands out, in addi- to the future assures us that ISA CTM will continue to contrib- tion to connection projects with private companies. In this way, ute to the development of Peru. I am also grateful to the con- ISA CTM maintains its position as one of the most important tractors and suppliers, who faced a year of many changes and operators of high voltage power transmission in the country, restrictions together with the company. However, we worked with a total network availability of 99.63%. jointly to continue delivering quality service to the country. On the other hand, during 2020 we understood that we had to With total transparency, we deliver this document to you with join forces with the State, academia, researchers and other pri- the firm conviction that you will find in it the necessary informa- vate sector companies, to bring help to those who needed it tion to contextualize the management of ISA CTM in the year most due to the damage of Covid19 in our society. For this rea- 2020. son, we deployed the “We are All One” humanitarian campaign, bringing food and health support to the most vulnerable commu- Sincerely, nities in our area of influence. In addition, we contributed to the implementation of a medical oxygen plant in La Merced, Junín. I am grateful to the shareholders, Interconexión Eléctrica ISA and Grupo Energía de Bogotá, whose support made possible the results that we are now delivering and whose commitment Bernardo Vargas Chairman of the Board - ISA CTM 5 2020 Milestones We invested more than half a million dollars to help fight the COVID-19 health emergency. In Alliance with Pontificia Universidad Católica del Perú, we delivered 100 MASI mechanical ventilators Through an agreement with to the ICUs that most needed them in the country. Universidad Peruana Cayeta- no Heredia, research on rapid molecular tests was financed, among other contributions. The medical oxygen plant was inaugurated in La Mer- ced, which Consorcio Transmantaro helped implement together with the Vicariate of the area, the Armed Forces, PUCP, and other strategic partners. Consorcio Transmantaro successfully ‘reopened’ its international green bond for USD 200 MM ISA CTM Figures 99.63 % 85 % of our suppliers are LOCAL NETWORK availability dollars in 0 COMPLAINTS 167,000 SOCIAL due to corruption cases INVESTEMENT 0 FATALITIES in our operations 7 1 Our Value Proposal Our Value 1 Proposal 1.1. Who are we? [GRI 102-1, 102-7] We are Consorcio Transmantaro (ISA CTM), a concession holder of the Mantaro-Socabaya transmission line, engaged in construction, op- eration and maintenance of high voltage electric power transmission lines. ISA CTM is a business unit of ISA REP and pro- vides us with technical and administrative man- agement services. 9 Our Value Proposal Our Value 1 Proposal We are part of ISA Group OPERATIONS IN [GRI 102-8] 6 COUNTRIES ISA is a multi-Latin business group with IN SOUTH AMERICA AND CENTRAL AMERICA more than 53 years of experience and background engaged COMPANIES in electric power, roads, telecommunications and ICT busi- 51 ISA, PARENT COMPANY OF THE GROUP AND 50 SUBSIDIARIES HOLDINGS IN 14 COMPANIES nesses, contributing to the quality of life of millions of people in Colombia, Brazil, Chile, Peru, Bolivia, Argentina and Central America, through the work of its nearly 4 thousand employees 4352 EMPLOYEES in its 51 companies. OF THE MANAGEMENT 30% TEAM ARE WOMEN The group develops its business based on technical excel- lence, efficient provision of its services, creation of sustainable ENERGÍA ELÉCTRICA value for its stakeholders and society in general, leveraged by innovation and digital transformation, supported by the best VÍAS corporate governance and ethics practices. TELECOMUNICACIONES Y TIC ISA and its companies are committed to mitigating and adapt- 47,358 km and ing to climate change, the rational use of resources, devel- 95,120 MVA of transmission opment of programs that generate a positive impact on the infrastructure in operation environment, comprehensive development of the communi- 1,053 km of 65,612 km and highways in ties where they operate, quality, reliability and availability of the 114,017 MVA including operation 54,137 km of fiber participation of ISA in services they provide. 136 km dof highways optics in operation other companies under construction 6,529 km and 15,603 MVA of transmission infrastructure under construction 10 Our Value Proposal Our Value 1 Proposal Coordination of the Colombian After more than five decades of leadership in the region, ISA has transcended the physical act of con- necting one point to another to connect people, making each connection an inspiring event. electricity system operation, ISA is a mixed-ownership public services company, constituted as a stock company, governed by Acts 142 and 143 of 1994 and domiciled in the city of Medellín (Colombia). The Government, through the 70,249 GWh Ministry of Finance and Public Credit, is ISA’s largest or controlling shareholder since it owns 51.41% of of met demand, the capital stock. 17,485 MW of net effective capacity The company has state and private investors. Its shares and bonds are traded on the Colombian Stock Mobility control in 5 municipalities Exchange and it has Level I ADRs, which are traded on the Over the Counter (OTC) market in the United (Medellín, Colombia and townships) States. All constituent shares of the capital stock have the same rights, they are ordinary, registered and dematerialized, with no statutory restrictions on their transferability. ISA applies high standards of trans- parency, efficiency and corporate governance that provide protection and confidence to its investors. Table 1: Shareholding Structure (December 31, 2020) Member of the Dow Jones Sustainability Index Shareholders Shares % for six consecutive years State investors 667,196,974 60.23 The Government 569,472,561 51.41 Public Companies of Medellín 97,724,413 8.82 Private investors 440,480,920 39.77 Member of the Dow Jones Sustainability Index MILA Pacific Alliance Institutional 297,761,561 26.88 Foreign investment funds 106,715,904 9.63 Natural entities 35,631,705 3.22 ISA ADR Program 371,750 0.03 Quality seal of the Colombian Stock Exchange for its Subscribed and paid-in circulating capital 1,107,677,894 100 transparency, corporate governance and commitment to the stock market, for five consecutive years. 11 Our Value Proposal Our Value 1 Proposal Our Purpose Our Business Lines [GRI 102-16] [GRI 102-2] We transport high voltage power that drives the development and well-being of millions of Peruvi- ans. To achieve this we take action on our purpose: Transmission We provide uninterrupted high and very high voltage electric power ISA CTM, connections that inspire transportation service from power generation plants located through- out the country and then deliver it to distribution companies and free customers. Likewise, to provide solutions that contribute to solving society’s challenges together, we are guid- ed by our principles. We want to make each connection an inspiring act, reflecting effort, commit- ment and the way we look at the world. Operation We manage transmission facilities in their planning, real-time execu- We generate connections when: tion, evaluation and improvement stages.