UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2021
Commission File Number 001-36487
Atlantica Sustainable Infrastructure plc
(Exact name of Registrant as specified in its charter)
Not applicable
(Translation of Registrant’s name into English)
Great West House, GW1, 17th floor
Great West Road
Brentford, TW8 9DF
United Kingdom
Tel: +44 203 499 0465
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| ☒ Form 20-F | ☐ Form 40-F |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
This Report on Form 6-K is incorporated by reference into the Registration Statement on Form F-3 of the Registrant filed with the Securities and Exchange Commission on August 6, 2018 (File 333-226611).
Q2 2021 Earnings Presentation August 3, 2021
DISCLAIMER Forward Looking StatementsThis presentation contains forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "guidance," "intend," "is likely to," "may," "plan," "potential," "predict," "projected," "should" or "will" or the negative of such terms or other similar expressions or terminology.By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance and are based on numerous assumptions. Our actual results of operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements. Except as required by law, we do not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances.Investors should read the section entitled "Item 3.D—Risk Factors" and the description of our segments and business sectors in the section entitled "Item 4B. Information on the Company—Business Overview", each in our Annual Report for the fiscal year ended December 31, 2020, filed on Form 20-F, for a more complete discussion of the risks and factors that could affect us.Forward-looking statements include, but are not limited to, statements relating to: expected value, payments and closing timelines for investments; business synergies from investments; equity investment and project growth strategy; accretive investment opportunities; strategic business alternatives to ensure optimal company value; estimated returns and cash available for distribution (“CAFD”) estimates, including CAFD per share growth strategy and targets, CAFD estimates per currency, geography and sector, including as a result of project debt refinancing; net corporate leverage based on CAFD estimates; debt refinancing; the quality of our long-term contracts; self-amortizing project debt structure and related debt reduction; the use of non-GAAP measures as a useful predicting tool for investors; the possibility to extend asset life; cost improvements from debt refinancing; dividends; and various other factors, including those factors discussed under “Item 3.D—Risk Factors” and “Item 5.A—Operating Results” in our Annual Report for the fiscal year ended December 31, 2020 filed on Form 20-F.The CAFD and other guidance incorporated into this presentation are estimates as of March 1, 2021. These estimates are based on assumptions believed to be reasonable as of the date Atlantica published its 2020 Financial Results. Atlantica disclaims any current intention to update such guidance, except as required by law. Non-GAAP Financial Information This presentation also includes certain non-GAAP financial measures, including Adjusted EBITDA including unconsolidated affiliates, Adjusted EBITDA including unconsolidated affiliates as a percentage of revenues (margin) and CAFD. Non-GAAP financial measures are not measurements of our performance or liquidity under IFRS as issued by IASB and should not be considered alternatives to operating profit or profit for the period or any other performance measures derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities. Please refer to the appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with IFRS as well as the reasons why management believes the use of non-GAAP financial measures (including CAFD and Adjusted EBITDA) in this presentation provides useful information to investors.In our discussion of operating results, we have included foreign exchange impacts in our revenue and Adjusted EBITDA including unconsolidated affiliates by providing constant currency growth. The constant currency presentation is not a measure recognized under IFRS and excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations. We calculate constant currency amounts by converting our current period local currency revenue and Adjusted EBITDA using the prior period foreign currency average exchange rates and comparing these adjusted amounts to our prior period reported results. This calculation may differ from similarly titled measures used by others and, accordingly, the constant currency presentation is not meant to substitute for recorded amounts presented in conformity with IFRS as issued by the IASB nor should such amounts be considered in isolation.
Key Messages Q2 2021 dividend of $0.43 per share +12.9% year-over-year CAFD growth in H1 2021 up to $109.9 million Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates (see reconciliation on page 25). $400 million Green Notes successfully closed in May, extending part of our corporate debt maturities from 2025 to 2028 Closed two previously announced investments:Coso, a renewable plant in the US with 19-year average remaining PPA life49% equity interest in a wind portfolio in the US
US $ in millions 2021 2020 ∆ Reported ∆ Excluding FX impact & non-recurrent project3 Revenue 611.2 465.7 +31.2% +13.5% Adjusted EBITDA incl. unconsolidated affiliates1 404.2 380.1 +6.3% +1.4% Margin2 66% 82% CAFD 109.9 97.3 +12.9% HIGHLIGHTS12.9% CAFD Growth in H1 2021 Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates (see reconciliation on page 25).Adjusted EBITDA Margin including unconsolidated affiliates is defined as Adjusted EBITDA including unconsolidated affiliates divided by revenue (see reconciliation on page 27).Compared to the first half of 2020 on a constant currency basis and adjusted for the consolidation of a non-recurrent Rioglass solar project. First Half
Includes 49% of the US Wind Portfolio production since its acquisition. Includes curtailment in wind assets for which we receive compensation. Represents total installed capacity in assets owned or consolidated at the end of the period, regardless of our percentage of ownership in each of the assets, except for the US Wind Portfolio for which we have included our 49% interest.GWh produced includes 30% share of the production from Monterrey.Availability refers to the time during which the asset was available to our client totally or partially divided by contracted or budgeted availability, as applicable.Includes 43 MW corresponding to our 30% share in Monterrey and 55 MWt corresponding to thermal capacity from Calgary District Heating. WATER RENEWABLES TRANSMISSION LINES EFFICIENT NATURAL GAS & HEAT H1 2021 H1 2020 Availability4 99.7% 102.0% Mft3 in operation2 17.5 17.5 H1 2021 H1 2020 GWh produced1 1,984 1,482 MW in operation2 2,018 1,551 H1 2021 H1 2020 GWh produced3 1,043 1,268 Availability4 99.4% 101.7% MW in operation5 398 343 H1 2021 H1 2020 Availability4 99.9% 99.9% Miles in operation 1,166 1,166 KEY OPERATIONAL METRICSSteady Operational Performance
Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates (see reconciliation on page 25).Consolidated cash as of June 30, 2021 decreased by $182.2 million vs December 31, 2020 including FX translation differences of $(4.8) million. CASH FLOWOperating Cash Flow US $ in millions 2021 2020 Adjusted EBITDA incl. unconsolidated affiliates1 404.2 380.1 Share in Adjusted EBITDA of unconsolidated affiliates (7.6) (7.5) Net interest and income tax paid (163.7) (131.0) Variations in working capital 20.4 (84.0) Non-monetary adjustments and other (7.0) (9.2) OPERATING CASH FLOW 246.3 148.4 INVESTING CASH FLOW (327.0) 16.8 FINANCING CASH FLOW (96.7) 71.9 Net change in consolidated cash2 (177.4) 237.1 First Half
NET DEBT POSITION1 Net debt corresponds to gross debt including accrued interest less cash and cash equivalents.Corporate Net Debt defined as indebtedness where Atlantica Sustainable Infrastructure plc. is the primary obligor minus cash and cash equivalents held at Atlantica Sustainable Infrastructure plc. Project Net Debt is defined as indebtedness where one of our project subsidiaries is the primary obligor minus cash and cash equivalents held by our project subsidiaries.Net corporate leverage is calculated as corporate net debt divided by midpoint 2021 CAFD guidance before corporate debt service. US $ in millions As of Jun. 30,2021 As of Dec. 31,2020 Corporate Net Debt2 941.8 658.5 Project Net Debt3 4,771.1 4,704.3 NET DEBTCorporate Leverage Corporate net debt / CAFD pre corporate debt service X.Xx Corporate net debt / CAFD pre corporate debt service4 3.4x
STRATEGIC UPDATEGrowth Strategy Update Asset Sector Geography Investment Transaction Closed Coso $170 million1 US Wind Portfolio $198 million Closing Acquisitions as Expected (1) Total investment was $170 million, including $130 million in equity value and $40 million paid in July 2021 to reduce project debt.
Appendix Q2 2021 Results Presentation
HIGHLIGHTSPerformance by Sector and Region Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates (see reconciliation on page 25).Adjusted EBITDA Margin including unconsolidated affiliates is defined as Adjusted EBITDA including unconsolidated affiliates divided by revenue (see reconciliation on page 27).Includes Revenue and Adjusted EBITDA of a non-recurrent Rioglass solar project. WATER H1 2021 H1 2020 ∆ 27.5 15.6 +76% 19.5 12.9 +51% 71% 83% RENEWABLES H1 20213 H1 2020 ∆ 471.6 344.7 +37% 295.0 275.1 +7% 63% 80% EFFICIENT NAT. GAS & HEAT H1 2021 H1 2020 ∆ 58.5 52.0 +13% 47.2 47.8 (1)% 81% 92% TRANSMISSION LINES H1 2021 H1 2020 ∆ 53.6 53.4 +0% 42.5 44.3 (4)% 79% 83% By Sector US $ in millions Revenue Adjusted EBITDA incl. unconsolidated affiliates1 Margin2 EMEA NORTH AMERICA H1 2021 H1 2020 ∆ 178.8 157.9 +13% 134.9 142.6 (5)% 75% 90% SOUTH AMERICA H1 20213 H1 2020 ∆ 354.0 232.8 +52% 209.1 177.7 +18% 59% 76% By Region US $ in millions Revenue Adjusted EBITDA incl. unconsolidated affiliates1 Margin2 H1 2021 H1 2020 ∆ 78.4 75.0 +5% 60.2 59.8 +1% 77% 80%
LIQUIDITY AND DEBT MATURITIES SUMMARYHealthy Balance Sheet and Strong Liquidity Strong Liquidity and No Significant Corporate Debt Maturities in the Short-term $523 million Corporate Liquidity ~5.8 years average maturity2 of current corporate debt Revolving Credit Facility (RCF)’s maturity in December 2023. Limit is $450.0 million, of which $440.0 million are available as of June 30, 2021$523 million available liquidity, out of which $83.2 million is corporate cash as of June 30, 2021 Corporate Debt Maturities1 Corporate Debt Maturities as of June 30, 2021. Corporate Debt is the indebtedness where Atlantica Sustainable Infrastructure plc. is the primary obligor.Weighted average maturity of debt outstanding as of June 30, 2021.Corporate Liquidity means cash and cash equivalents held at Atlantica Sustainable Infrastructure plc as of June 30, 2021, plus available capacity under the Revolving Credit Facility as of June 30, 2021.Corporate Cash corresponds to cash and cash equivalents held at Atlantica Sustainable Infrastructure plc as of June 30, 2021. 2 2 3 4
CORPORATE DEBT DETAILSCorporate Debt as of June 30, 2021No significant maturities in the short term Exchange rates as of June 30, 2021 (EUR/USD = 1.1858).Amounts include principal amounts outstanding, unless stated otherwise.As of June 30, 2021, letters of credit with face value in an amount equal to $10 million were outstanding and $440 million were available under the RCF. Total RCF limit of $450 million.Other facilities include the commercial paper program, accrued interest payable and other debts. US $ in millions1 Maturity Amounts2 Credit Facilities (RCF)3 2023 - (Other facilities)4 2021 – 2025 24.5 Green Exchangeable Bond5 2025 103.4 Green Senior Secured Notes6(€ denominated) 2026 340.9 2020 NIFA7 (€ denominated) 2027 162.2 Green Senior Notes8 2028 394.0 Total 1,025.1 (5) Senior unsecured notes dated July 17, 2020, exchangeable into ordinary shares of Atlantica, cash, or a combination of both, at Atlantica’s election.Senior secured notes dated April 1, 2020, of €290 million.2020 NIFA refers to the senior unsecured note facility dated July 8, 2020, of €140 million.Green Senior Unsecured Notes dated May 18, 2021, of $400 million.
Exchange rates as of June 30, 2021 (EUR/USD = 1.1858) and December 31, 2020 (EUR/USD = 1.2216).Restricted cash is cash which is restricted generally due to requirements of project finance agreements. US $ in millions1 As of June 302021 As of Dec. 312020 Corporate cash at Atlantica 83.2 335.2 Existing available revolver capacity 440.0 415.0 Total Corporate Liquidity 523.2 750.2 Cash at project companies 603.1 533.3 - Restricted2 292.2 279.8 - Other 310.9 253.5 LIQUIDITYLiquidity Position
STRATEGIC UPDATEGreen Senior Notes Issued in May 2021 $400 million raised Issue Green Senior Unsecured Notes Amount $400 million Use of Proceeds Full prepayment of the NIFA 2019 and financing of the acquisition of Eligible Green Assets Interest rate 4.125% coupon Maturity June 15, 2028 Closing May 18, 2021 Issue Ratings BB+ (S&P) / BB+ (Fitch) 4th Green Financing Part of our corporate debt maturity extended from 2025 to 2028
Weighted Average Life Project debt term (2) Regulation term in the case of Spain and Chile TL3. PPAs with predefined prices for ~16 years on average1 Refinancing opportunities could increase CAFD in earlier years Possibility to extend life in many assets (excluding ATN and ATS) Tails in most assets after debt amortization Contract term2 LONG-TERM STABLE CASH FLOWPortfolio of Assets Represents weighted average years remaining as of June 30, 2021 including closed acquisitions as of August 3, 2021.
Key principle: non-recourse project financing in ring-fenced subsidiaries100% project debt self-amortizing progressively before the end of the contracted lifeLow interest rate risk, with +90% of interest rates fixed or hedged ~$1.9B planned debt reduction in the next 5 years FINANCING Self-Amortizing Project Debt Structure as of Dec. 31, 2020
1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 Revenues 221,452 283,338 293,373 213,289 1,011,452 210,403 255,344 302,987 244,526 1,013,260 235,190 375,985 Adj. EBITDA incl. unconsolidated affiliates 181,106 229,352 247,668 163,429 821,555 165,962 214,107 240,958 175,096 796,123 170,070 234,165 Adj. EBITDA margin (%) 81.8% 80.9% 84.4% 76.6% 81.2% 78.9% 83.9% 79.5% 71.6% 78.6% 72.3% 62.2% Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates (2,017) (2,043) (3,062) (3,229) (10,351) (3,553) (3,959) (3,943) (3,013) (14,468) (3,298) (4,295) Adjusted EBITDA 179,089 227,309 244,606 160,200 811,204 162,409 210,148 237,015 172,083 781,655 166,772 229,870 Dividends from unconsolidated affiliates ��- - 26,945 3,498 30,443 5,120 5,262 9,758 2,106 22,246 8,799 4,431 Non-monetary items (14,632) (7,729) (10,288) (4,783) (37,432) (4,334) (3,683) (5,327) (8,289) (21,633) (6,177) (3,018) Net interest and income tax paid (13,925) (129,405) (24,339) (131,845) (299,514) (11,436) (119,517) (31,625) (124,661) (287,239) (30,663) (133,066) Principal amortization of indebtedness net of new indebtedness at projects (15,176) (93,935) (22,115) (123,568) (254,794) (14,898) (75,301) (18,963) (151,260) (260,422) (22,693) (97,278) Deposits into/withdrawals from debt service accounts1 21,461 25,564 (52,463) 4,721 (717) 32,921 17,605 8,844 27,807 87,177 (26,576) 26,383 Change in non-restricted cash at project companies1 (61,445) 69,866 (58,847) 119,707 69,281 (50,467) 31,257 (94,192) 34,784 (78,618) (63,265) 39,833 Dividends paid to non-controlling interests - (5,105) (18,978) (5,156) (29,239) (4,915) (9,246) (6,833) (1,950) (22,944) (4,215) (7,395) Changes in other assets and liabilities (50,253) (37,183) (38,792) 27,271 (98,957) (66,842) (6,808) (46,724) 100,843 (19,531) 29,255 (1,103) Cash Available For Distribution (CAFD) 45,119 49,382 45,729 50,045 190,275 47,558 49,717 51,953 51,463 200,691 51,237 58,657 Dividends declared2 39,625 40,641 41,657 41,657 163,579 41,657 42,673 42,673 46,491 173,494 47,643 47,658 # of shares3 100,217,260 101,601,662 101,601,662 101,601,662 101,601,662 101,601,662 101,601,662 110,691,722 110,797,738 110,833,204 DPS (in $ per share) 0.39 0.40 0.41 0.41 1.61 0.41 0.42 0.42 0.42 1.67 0.43 0.43 Project debt 5,076.4 4,997.4 4,931.3 4,852.3 4,852.3 4,777.2 5,007.6 5,281.2 5,237.6 5,237.6 5,200.2 5,374.2 Project cash Project cash (546.7) (469.0) (568.5) (496.8) (496.8) (535.3) (510.1) (602.2) (533.3) (533.3) (624.6) (603.1) Net project debt 4,529.6 4,528.4 4,362.8 4,355.6 4,355.6 4,241.9 4,497.5 4,679.0 4,704.3 4,704.3 4,575.6 4,771.1 Corporate debt 697.5 689.6 686.4 723.8 723.8 807.3 837.0 959.7 993.7 993.7 965.3 1,025.1 Corporate cash (107.9) (107.0) (73.2) (66.0) (66.0) (154.9) (278.7) (186.7) (335.2) (335.2) (434.2) (83.2) Net corporate debt 589.7 582.6 613.2 657.8 657.8 652.4 558.3 773.0 658.5 658.5 531.1 941.8 Total net debt 5.119.3 5,111.0 4,976.0 5,013.3 5,013.3 4,894.4 5,055.8 5,452.0 5,362.9 5,362.8 5,106.7 5,713.0 Net Corporate Debt/CAFD pre corporate interests4 2.5x 2.5x 2.7x 2.9x 2.9x 2.4x 2.3x 3.3x 3.0x 3.0x 2.6x5 3.4x HISTORICAL FINANCIAL REVIEWKey Financials by Quarter Debt details Key Financials US $ in thousands “Deposits into/ withdrawals from restricted accounts” and “Change in non-restricted cash at project level” are calculated on a constant currency basis to reflect actual cash movements isolated from the impact of variations generated by foreign exchange changes during the period. Prior periods have been recalculated to conform this presentation.Dividends are paid to shareholders in the quarter after they are declared. Number of shares outstanding on the record date corresponding to each dividend. US $ in millions (4) Ratios presented are the ratios shown on each earnings presentation.(5) For net corporate leverage ratio calculation purposes, corporate net debt as of March 31, 2021, was calculated proforma including the payment of $170m total investment ($130m equity investment paid in April 2021 plus additional $40m paid in July 2021 to reduce debt.
HISTORICAL FINANCIAL REVIEWSegment Financials by Quarter 2 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 by Geography NORTH AMERICA 60,441 104,095 109,378 59,052 332,965 59,283 98,648 109,757 63,233 330,921 60,585 118,216 SOUTH AMERICA 33,493 35,597 36,671 36,447 142,207 35,654 39,375 36,990 39,441 151,460 38,308 40,043 EMEA 127,518 143,646 147,325 117,790 536,280 115,466 117,321 156,240 141,852 530,879 136,297 217,726 by Business Sector RENEWABLES 156,817 223,269 229,742 151,261 761,090 150,793 193,881 234,556 173,859 753,089 166,691 304,934 EFF. NATURAL. GAS & HEAT 34,009 27,689 31,193 29,390 122,281 26,403 25,629 28,086 30,912 111,030 28,408 30,097 TRANSMISSION LINES 24,867 26,231 25,926 26,429 103,453 26,608 26,787 25,834 26,813 106,042 26,614 26,975 WATER 5,759 6,149 6,511 6,209 24,629 6,599 9,047 14,511 12,942 43,099 13,477 13,979 Total Revenue 221,452 283,338 293,373 213,289 1,011,452 210,403 255,344 302,987 244,526 1,013,260 235,190 375,985 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 by Geography NORTH AMERICA 50,870 96,293 108,198 51,881 307,242 52,661 89,954 95,879 40,871 279,365 40,287 94,574 84.2% 92.5% 98.9% 88.8% 92.3% 88.8% 91.2% 87.4% 64.6% 84.4% 66.5% 80.0% SOUTH AMERICA1 28,212 29,252 30,293 27,589 115,346 28,422 31,380 29,947 30,275 120,024 29,943 30,279 84.2% 82.2% 82.6% 75.6% 81.1% 79.7% 79.7% 81.0% 76.8% 79.2% 78.2% 75.6% EMEA 102,024 103,807 109,177 83,959 398,968 84,879 92,773 115,132 103,950 396,734 99,840 109,312 80.0% 72.3% 74.1% 71.3% 74.4% 73.5% 79.1% 73.7% 73.3% 74.7% 73.3% 50.2% by Business Sector RENEWABLES 123,484 177,910 192,168 110,517 604,079 113,670 161,415 181,788 119,412 576,285 115,857 179,174 78.7% 79.7% 83.6% 73.1% 79.4% 75.4% 83.3% 77.5% 68.7% 76.5% 69.5% 58.8% EFF. NATURAL GAS & HEAT 30,476 23,826 27,983 26,915 109,200 24,462 23,303 27,479 25,762 101,006 23,182 24,039 89.6% 86.1% 89.7% 91.6% 89.3% 92.6% 90.9% 97.8% 83.3% 91.0% 81.6% 79.9% TRANSMISSION LINES 21,650 21,936 21,548 20,524 85,658 21,922 22,423 21,702 21,225 87,272 21,203 21,319 87.1% 83.6% 83.1% 77.6% 82.7% 82.4% 83.7% 84.0% 79.2% 82.3% 79.7% 79.0% WATER 5,496 5,680 5,969 5,473 22,619 5,908 6,966 9,989 8,697 31,560 9,828 9,633 95.4% 92.4% 91.7% 88.1% 91.8% 89.5% 77.0% 68.8% 67.2% 73.2% 72.9% 68.9% Total Adj. EBITDA incl. unconsolidated affiliates1 181,106 229,352 247,668 163,429 821,556 165,962 214,107 240,958 175,096 796,123 170,070 234,165 81.8% 80.9% 84.4% 76.6% 81.2% 78.9% 83.9% 79,5% 71.6% 78.6% 72.3% 62.3% Revenue Adj. EBITDA incl. unconsolidated affiliates Adjusted EBITDA includes our share in EBITDA of unconsolidated affiliates. US $ in thousands
1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 RENEWABLES3 (GWh) 581 1,071 1,048 536 3,236 526 957 1,125 636 3,244 606 1,377 (GWh) 383 483 615 694 2,090 644 624 664 642 2,574 542 501 (availability %) 87.1% 89.9% 101.5% 101.4% 95.0% 102.4% 100.9% 103.8% 101.2% 102.1% 98.3% 100.1% TRANSMISSION LINES (availability %) 99.9% 100.0% 99.9% 100.0% 100.0% 99.9% 99.9% 100.0% 100.0% 100.0% 100.0% 99.9% WATER (availability %) 99.8% 100.6% 103.6% 100.1% 101.2% 101.8% 102.2% 101.1% 95.4% 100.1% 97.5% 101.9% 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 RENEWABLES1 (MW) 1,496 1,496 1,496 1,496 1,496 1,496 1,551 1,551 1,551 1,551 1,591 2,018 EFFICIENT NAT. GAS & HEAT2 (MW) 300 300 343 343 343 343 343 343 343 343 343 398 TRANSMISSION LINES (Miles) 1,152 1,152 1,152 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 WATER1 (Mft3/day) 10.5 10.5 10.5 10.5 10.5 10.5 17.5 17.5 17.5 17.5 17.5 17.5 Capacity in operation(at the end of the period) Production / Availability 5 5 5 Represents total installed capacity in assets owned or consolidated at the end of the period, regardless of our percentage of ownership in each of the assets, except for the US Wind Portfolio for which we have included our 49% interest. Includes 43 MW corresponding to our 30% share in Monterrey since August 2, 2019, and 55 MWt corresponding to thermal capacity from Calgary District Heating since May 14, 2021.Includes 49% of the US Wind Portfolio production since its acquisition. Includes curtailment in wind assets for which we receive compensation.Major maintenance overhaul held in Q1 and Q2 2019 in ACT, as scheduled, which reduced production and electric availability as per the contract. GWh produced includes 30% of the production from Monterrey since August 2, 2019.Availability refers to the time during which the asset was available to our client totally or partially divided by contracted or budgeted availability, as applicable. EFFICIENT NAT. GAS & HEAT 4 HISTORICAL FINANCIAL REVIEWKey Performance Indicators
1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 US 15.2% 39.8% 35.2% 16.3% 26.6% 18.2% 37.5% 35.2% 17.6% 27.1% 18.0% 38.6% Chile2 - - - - - - 27.9% 29.8% 38.2% 24.0% 28.4% 20.9% Spain 12.1% 26.7% 27.2% 6.7% 18.2% 8.0% 22.1% 28.6% 8.3% 16.8% 9.1% 24.8% Kaxu 48.7% 27.8% 27.5% 45.4% 37.3% 28.9% 8.6% 26.8% 44.7% 27.3% 38.9% 26.9% Uruguay3 33.0% 36.3% 40.9% 38.0% 37.2% 34.6% 40.8% 40.6% 42.8% 39.7% 32.6% 38.3% SOLAR Historical Capacity Factors1 Capacity factor ratio represents actual electrical energy output over a given period of time to the maximum possible electrical energy output assuming continuous operation at full nameplate capacity over that period. Historical Capacity Factors are calculated from the date of entry into operation or the acquisition of each asset. Some capacity factors are not indicative of a full period of operations.Includes Chile PV 1 since Q2 2020 and Chile PV 2 since Q1 2021.Includes curtailment production in wind assets for which we receive compensation. HISTORICAL FINANCIAL REVIEWCapacity Factors WIND
CURRENCY2 SECTOR GEOGRAPHY Based on CAFD estimates for the 2021-2025 period, including the acquisitions announced as of August 3, 2021. See “Disclaimer – Forward Looking Statements”.Including the effect of currency hedges. Of long-term interest rates in projects are fixed or hedged2 ~ 90% 90 Denominatedin USD % > 73% Renewable13% Efficient Natural Gas11% Transmission Lines 3% Water 44% North America35% Europe13% South America 8% RoW SIZEABLE AND DIVERSIFIED ASSET PORTFOLIOPortfolio Breakdown Based on Estimated CAFD1 INTEREST RATES AND INFLATION Indexed to inflation or formula based on inflationIndexed to a fixed numberNot indexed Escalation factors included in contracts
As of June 30, 2021 ASSET TYPE STAKE LOCATION GROSSCAPACITY OFFTAKER RATING2 YEARS INCONTRACT LEFT CURRENCY RENEWABLE ENERGY Solana 100% USA (Arizona) 280 MW APS A-/A2/A- 22 USD Mojave 100% USA (California) 280 MW PG&E BB-/WR/BB 18 USD Chile PV 1 35% Chile 55 MW n/a n/a n/a USD 5 Chile PV 2 35% Chile 40 MW n/a n/a n/a USD 5 Solaben 2/3 70% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 16/16 EUR 4 Solacor 1/2 87% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 16/16 EUR 4 PS 10/20 100% Spain 31 MW Kingdom of Spain A/Baa1/A- 11/13 EUR 4 Helioenergy 1/2 100% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 15/15 EUR 4 Helios 1/2 100% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 16/16 EUR 4 Solnova 1/3/4 100% Spain 3x50 MW Kingdom of Spain A/Baa1/A- 14/14/14 EUR 4 Solaben 1/6 100% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 17/17 EUR 4 Seville PV 80% Spain 1 MW Kingdom of Spain A/Baa1/A- 15 EUR 4 Kaxu 51% South Africa 100 MW Eskom BB-/Ba2/BB-3 14 ZAR Elkhorn Valley 49% USA (Oregon) 101 MW Idaho Power Company BBB/A3/-- 7 USD Prairie Star 49% USA (Minnesota) 101 MW Great River Energy --/A3/A- 7 USD Twin Groves II 49% USA (Illinois) 198 MW Exelon Generation Co. BBB-/Baa2/BBB 5 USD Lone Star II 49% USA (Texas) 196 MW EDPR Not rated 2 USD Palmatir 100% Uruguay 50 MW UTE BBB/Baa2/BBB-3 13 USD Cadonal 100% Uruguay 50 MW UTE BBB/Baa2/BBB-3 13 USD Melowind 100% Uruguay 50 MW UTE BBB/Baa2/BBB-3 15 USD Coso 100% USA (California) 135 MW SCPPA & two CCAs6 Investment grade6 19 USD Mini-Hydro 100% Peru 4 MW Peru BBB+/A3/BBB+ 12 USD 5 EFFICIENT NAT. GAS & HEAT ACT 100% Mexico 300 MW Pemex BBB/Ba3/BB- 12 USD 5 Monterrey 30% Mexico 142 MW Industrial Customers Not rated 17 USD 5 Calgary 100% Canada 55 MWt 22 High quality clients7 ~41% A+ or higher7 20 CAD Includes closed acquisitions as of August 3, 2021.Reflects the counterparties’ issuer credit ratings issued by S&P, Moody’s and Fitch, respectively, as of August 2, 2021.For Kaxu, it refers to the credit rating of the Republic of South Africa, and for Palmatir, Cadonal and Melowind, it refers to the credit rating of Uruguay, as UTE is unrated.Gross cash in euros dollarized through currency hedges. AT A GLANCESizeable and Diversified Asset Portfolio1 (5) USD denominated but payable in local currency.(6) Southern California Public Power Authority, with AA- Rating from Fitch, and two Community Choice Aggregators: Silicon Valley Clean Energy and Monterrey Bar Community Power, both with A Rating from S&P.(7) Diversified mix of 22 high credit quality clients (~41% A+ rating or higher, the rest unrated).
As of June 30, 2021 ASSET TYPE STAKE LOCATION GROSSCAPACITY OFFTAKER RATING2 YEARS INCONTRACT LEFT CURRENCY TRANSMISSION LINES ATN 100% Peru 379 miles Peru BBB+/A3/BBB+ 20 USD 3 ATS 100% Peru 569 miles Peru BBB+/A3/BBB+ 23 USD 3 ATN 2 100% Peru 81 miles Minera Las Bambas Not rated 12 USD 3 Quadra 1/2 100% Chile 49 miles / 32 miles Sierra Gorda Not rated 14/14 USD 3 Palmucho 100% Chile 6 miles Enel Generacion Chile BBB+/WR /A- 16 USD 3 Chile TL3 100% Chile 50 miles CNE A/A1/A- Regulated USD 3 WATER Skikda 34% Algeria 3.5 Mft3/day Sonatrach & ADE Not rated 13 USD 3 Honaine 26% Algeria 7 Mft3/day Sonatrach & ADE Not rated 16 USD 3 Tenes 51% Algeria 7 Mft3/day Sonatrach & ADE Not rated 19 USD 3 Includes closed acquisitions as of August 3, 2021.Reflects the counterparties’ issuer credit ratings issued by S&P, Moody’s and Fitch, respectively, as of August 2, 2021.USD denominated but payable in local currency. AT A GLANCESizeable and Diversified Asset Portfolio1
NON-GAAP FINANCIAL INFORMATIONReconciliation of Non-GAAP Measures Our management believes Adjusted EBITDA including unconsolidated affiliates and CAFD are useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired. Our management believes CAFD is a relevant supplemental measure of the Company’s ability to earn and distribute cash returns to investors and is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of our ability to make quarterly distributions. In addition, CAFD is used by our management team for determining future acquisitions and managing our growth. Adjusted EBITDA and CAFD are widely used by other companies in the same industry. Our management uses Adjusted EBITDA and CAFD as measures of operating performance to assist in comparing performance from period to period on a consistent basis. They also readily view operating trends as a measure for planning and forecasting overall expectations, for evaluating actual results against such expectations, and for communicating with our board of directors, shareholders, creditors, analysts and investors concerning our financial performance.We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. The non-GAAP financial measures may not be comparable to other similarly titled measures employed by other companies and they may have limitations as analytical tools. These measures may not be fit for isolated consideration or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-GAAP financial measures and ratios are not measurements of our performance or liquidity under IFRS as issued by the IASB. Thus, they should not be considered as alternatives to operating profit, profit for the period, any other performance measures derived in accordance with IFRS as issued by the IASB, any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities. Some of the limitations of these non-GAAP measures are:they do not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments; they do not reflect changes in, or cash requirements for, our working capital needs;they may not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments, on our debts;although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often need to be replaced in the future and Adjusted EBITDA and CAFD do not reflect any cash requirements that would be required for such replacements;some of the exceptional items that we eliminate in calculating Adjusted EBITDA reflect cash payments that were made, or will be made in the future; andthe fact that other companies in our industry may calculate Adjusted EBITDA and CAFD differently than we do, which limits their usefulness as comparative measures.EBITDA has been used in this presentation exclusively for the announced acquisition of a wind portfolio in the United States. EBITDA has been calculated as profit/(loss) of the portfolio for the year 2020 after adding back depreciation, amortization, and impairment changes. There were no financing costs or income tax in 2020 in this portfolio.We define Adjusted EBITDA including unconsolidated affiliates as profit/(loss) for the period attributable to the Company, after adding back loss/(profit) attributable to non-controlling interest from continued operations, profit/(loss) from discontinued operations, income tax, share of profit/(loss) of associates carried under the equity method, finance expense net, depreciation, amortization and impairment charges. CAFD is calculated as cash distributions received by the Company from its subsidiaries minus cash expenses of the Company, including third party debt service and general and administrative expenses.
RECONCILIATIONReconciliation of Cash Available For Distribution and Adjusted EBITDA to Profit for the period attributable to the Company Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates.“Deposits into/ withdrawals from restricted accounts” and “Change in non-restricted cash at project level” are calculated on a constant currency basis to reflect actual cash movements isolated from the impact of variations generated by foreign exchange changes during the period. (in thousands of U.S. dollars) For the three-month period ended June 30, For the six-month period ended June 30, 2021 2020 2021 2020 Profit/(loss) for the period attributable to the Company $ 12,343 $ 12,340 $ (6,829) $ (28,171) Profit/(loss) attributable to non-controlling interest 3,207 (267) 11,315 1,979 Loss/(profit) from discontinued operations 480 - - - Income tax 18,641 13,618 33,128 3,471 Share of loss/(profit) of associates carried under the equity method (1,696) (2,259) (2,656) (1,591) Financial expense, net 91,560 102,263 172,807 202,797 Operating profit $ 124,535 $ 125,695 $ 207,765 $ 178,485 Depreciation, amortization, and impairment charges 105,335 84,454 188,876 194,073 Adjusted EBITDA $ 229,870 $ 210,148 $ 396,642 $ 372,557 Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates 4,295 3,959 7,592 7,512 Adjusted EBITDA including unconsolidated affiliates1 $ 234,165 $ 214,107 $ 404,234 $ 380,069 Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates (4,295) (3,959) (7,592) (7,512) Dividends from equity method investments 4,431 5,262 13,230 10,382 Non-monetary items (3,018) (3,683) (9,195) (8,017) Interest and income tax paid (133,066) (119,517) (163,729) (130,953) Principal amortization of indebtedness (97,278) (75,301) (119,971) (90,199) Deposits into/ withdrawals from restricted accounts2 26,383 17,605 (194) 50,526 Change in non-restricted cash at project level2 39,833 31,257 (23,432) (19,210) Dividends paid to non-controlling interests (7,395) (9,246) (11,610) (14,161) Changes in other assets and liabilities (1,103) (6,808) 28,153 (73,650) Cash Available For Distribution $ 58,657 $ 49,717 $ 109,894 $ 97,275
RECONCILIATIONReconciliation of Adjusted EBITDA including unconsolidated affiliates to Net Cash Provided by Operating Activities Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. (in thousands of U.S. dollars) For the three-month period ended June 30 For the six-month period ended June 30, 2021 2020 2021 2020 Net cash provided by operating activities $ 99,609 $ 62,722 $ 246,317 $ 148,407 Net interest and income tax paid 133,066 119,517 163,729 130,953 Changes in working capital (3,451) 24,672 (20,414) 84,005 Other non-cash adjustments and other 646 3,237 7,010 9,192 Adjusted EBITDA $ 229,870 $ 210,148 $ 396,642 $ 372,557 Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates 4,295 3,959 7,592 7,512 Adjusted EBITDA including unconsolidated affiliates1 $ 234,165 $ 214,107 $ 404,234 $ 380,069
RECONCILIATIONReconciliation of Adjusted EBITDA Margin including unconsolidated affiliates to Operating Profit Margin Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. (in thousands of U.S. dollars) For the three-month period ended June 30, For the six-month period ended June 30, 2021 2020 2021 2020 Revenue $ 375,985 $ 255,344 $ 611,175 $ 465,747 Profit/(loss) for the period attributable to the Company $ 12,343 $ 12,340 $ (6,829) $ (28,171) Profit/(loss) attributable to non-controlling interest 3,207 (267) 11,315 1,979 Loss/(profit) from discontinued operations 480 - - - Income tax 18,641 13,618 33,128 3,471 Share of loss/(profit) of associates carried under the equity method (1,696) (2,259) (2,656) (1,591) Financial expense, net 91,560 102,263 172,807 202,797 Operating profit $ 124,535 $ 125,695 $ 207,765 $ 178,485 Operating profit margin % 33.1 % 49.2 % 34.0 % 38.3 Depreciation, amortization, and impairment charges 28.0 33.1 30.9 41.7 Adjusted EBITDA margin % 61.1 % 82.3 % 64.9 % 80.0 Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates 1.1 1.6 1.2 1.6 Adjusted EBITDA Margin including unconsolidated affiliates1 % 62.3 % 83.9 % 66.1 % 81.6
Great West House, GW1, 17th floor,Great West RoadBrentford TW8 9DFLondon (United Kingdom)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Atlantica Sustainable Infrastructure plc | |||
Date: August 3, 2021 | By: | /s/ Santiago Seage | |
Name: | Santiago Seage | ||
Title: | Chief Executive Officer | ||