EXPANSION AND MODERNIZATION: ISA CTEEP SETS A RECORD FOR INVESTMENTS IN THE YEAR

• Financial contributions to the expansion and modernization of the installed park grew 152% and reached R$ 3.3 billion in 2021
• Annual record in the distribution of earnings: R$ 2.8 billion
• Flattish revenue and 5% drop in net income due to the rescheduling of the payment of installments of the Basic Network Existing System (RBSE)
• Progress in pioneering and innovation: first digital substation of the basic grid inaugurated, large-scale battery energy storage and intensive use of drones

São Paulo, March 23, 2022 – Last year, ISA CTEEP, the largest private energy transmission company in the country, invested R$ 3.3 billion, with 152% increase when compared to 2020, setting a record in the company's history. Of this amount, R$ 368 million were allocated to reinforcement and improvement projects, aimed at revamping the installed park; more than R$ 1 billion to new projects auctioned off (greenfield) and R$ 1.6 billion to the acquisition (brownfield) of Piratininga – Bandeirantes Transmissora de Energia (PBTE).

In the last quarter of the year, the company invested R$ 362 million, of which R$ 124 million in reinforcements and improvements, a R$ 19.7 million growth as compared to the same period in 2020. The company has authorizations to implement 237 projects with an investment planned by the regulator of R$ 2.7 billion, which should be executed by 2025.

In new projects (greenfield), investment in the quarter reached R$ 238 million, with emphasis on the energization of the Lorena substation, which is part of Itapura Electric Interconnection, and is the first digital substation of the National Interconnected System (SIN).

“In 2021, we maintained our focus on promoting the company's growth with sustainable value generation, through projects that contribute to the expansion and safety of Brazil's electricity transmission system. For this year, we will stick with the same strategy”, explains Rui Chammas, ISA CTEEP’s CEO.

Regulatory financial results

2021 adjusted net operating revenue reached R$ 3.3 billion, growing 3% when compared to the previous year. The growth is explained by the impact of 2021/2022 RAP cycle, which considers the positive variation of IPCA; the application of the Periodic Tariff Review; the start-up of new projects and PBTE acquisition. In the fourth quarter, the result was R$ 694 million, 24% lower compared to the same period in 2020, explained by the rescheduling of the payment of Basic Network Existing System (RBSE) (RBSE), which had a new payment profile set in July last year.

In 2021, adjusted net income was slightly over R$1 billion, down 5% from the previous year. In the last quarter, adjusted net income amounted to R$ 162.5 million, down 64% compared to the same period in 2020, also explained by RBSE reprofiling.

In the year, adjusted EBITDA amounted to R$ 2.6 billion, a result similar to 2020. Considering the last quarter of 2021, Adjusted EBITDA was R$ 504 million, a drop of more than 30% versus the same period of the previous year, due, mainly, to the lower revenue resulting from RBSE's reprofiling and to the accounting of Adjustment Portions (PA) in the period.

Last year, the company set an annual record in the distribution of earnings, with a total amount of R$ 2.8 billion paid. “This result reinforces that we always seek to maximize the generation of value to our shareholders”, says Carisa Cristal, finance and investor relations executive officer at ISA CTEEP.

Finally, in November 2021, the company issued R$ 950 million in green debentures, the company's largest issue in the year and which will contribute to environmentally sustainable infrastructure projects.

Progress in innovation

In 2021, the company was a pioneer in the country with innovative projects that leverage the sector’s digital transformation. Among them is the energization of Lorena substation, the first digital substation of the National Interconnected System (SIN). The project represents a milestone towards Substation 4.0 and will double the energy supply to Vale do Paraíba region (SP), which will now rely on a redundant system.

Also, ANEEL approved the first large-scale battery energy storage project in the Brazilian transmission system, which will be installed in Registro (SP) substation, one of the substations responsible for supplying the Southern Coast of São Paulo. “The project is a historic milestone for the energy sector and will serve as a laboratory of innovation, promoting debates on how to insert battery energy storage, especially for its immediate response capacity and its high operational flexibility, necessary for the transmission network. Furthermore, it is a step towards the diversification of our business”, explains Chammas.

For this project, the investment authorized by the regulator is around R$ 146 million and the work is expected to be delivered in November this year. The RAP will be approximately R$ 27 million

Other highlight was the authorization from the National Civil Aviation Agency (ANAC) to use a drone that incinerates objects that fall on the transmission lines, such as balloons and kites.

About ISA CTEEP

With a staff comprising over 1,500 employees, ISA CTEEP is present in 18 States, operating a complex transmission network, responsible for the flowing of 30% of all electricity consumed in the country, and 94% of the State of São Paulo. Its electrical system comprises more than 29,000 km of circuits (about 28,000 in operation and 1,500 under construction), including owned and jointly controlled assets, and 133 owned substations (126 in operation and seven under construction) with voltage up to 550 kV. Its controlling shareholder is the Colombian company ISA, holder of 35.82% of the total capital.

• Press information: ISA CTEEP – RPMA Comunicação
  Kelly Queiroz – (11) 94216-3176
  Sara Saar – (11) 97566-2433
  [email protected]