ISA Energía Brasil (ISAE4) Investor Day 2025 summary

Business overview and portfolio

• Operates 34 energy transmission concessions, covering 95% of São Paulo's energy and 30% of Brazil's circuits, with a market cap of BRL 16 billion as of September.

• Portfolio diversification with 44% of revenue from new concessions and strong organic growth through modernization and retrofitting.

• RAP for the next years is BRL 6.4 billion, with significant contributions from the Paulista Concession and new investments.

• Five major projects under construction will add over BRL 1 billion in future entries, each with 30-year cash flow potential.

• Average concession maturity is 20 years, with a unique mix of renewable and traditional contracts.

Strategic direction and growth initiatives

• Execution of a robust investment plan, with R$ 5.7 billion in authorized investments through 2029, exceeding asset base depreciation.

• Expansion of greenfield projects, with R$ 7.3 billion in CapEx under execution and a pipeline scheduled through 2029, supporting double-digit real shareholder IRR.

• Strengthening of the Paulista Concession through modernization, with R$ 2 billion in R&I projects energized and another R$ 2 billion under execution by 2028.

• Strategy 2040 focuses on growth, financial discipline, and consistent shareholder returns.

• Portfolio profitability remains above two digits, with new and ongoing projects maintaining strong returns.

Paulista Concession and regulatory developments

• ANEEL resolved RBSE compensation, resulting in a lower-than-expected reduction and BRL 3.8 billion to be received over the next years.

• Economic component of RBSE will be paid until 2042, totaling BRL 4 billion.

• Regulatory certainty achieved for RBSE financial component, securing R$ 3.8 billion to be received by June 2028 and over R$ 4 billion by the end of the concession.

• Asset modernization is a key focus, with investments in reinforcement and improvements yielding 12%-17% CapEx profitability.

• Residual value of non-remunerated investments is contractually guaranteed at concession end.