Financial information by segment | Note 4. - Financial information by segment Atlantica’s segment structure reflects how management currently makes financial decisions and allocates resources. Its operating and reportable segments are based on the following geographies where the contracted concessional assets are located: North America, South America and EMEA. In addition, based on the type of business, as of September 30, 2022, the Company had the following business sectors: Renewable energy, Efficient natural gas and heat, Transmission lines and Water. Atlantica’s Chief Operating Decision Maker (CODM), which is the CEO, assesses the performance and assignment of resources according to the identified operating segments. The CODM considers the revenue as a measure of the business activity and the Adjusted EBITDA as a measure of the performance of each segment. Adjusted EBITDA is calculated as profit/(loss) for the period attributable to the parent company, after adding back loss/(profit) attributable to non-controlling interests, income tax expense, financial expense (net), depreciation, amortization and impairment charges of entities included in the these Consolidated Condensed Interim Financial Statements and depreciation and amortization, financial expense and income tax expense of unconsolidated affiliates (pro rata of Atlantica’s equity ownership). Until September 30, 2021, adjusted EBITDA excluded share of profit/(loss) of associates carried under the equity method and did not include depreciation and amortization, financial expense and income tax expense of unconsolidated affiliates (pro-rata of Atlantica’s equity ownership). Prior periods have been presented accordingly. In order to assess performance of the business, the CODM receives reports of each reportable segment using revenue and Adjusted EBITDA. Net interest expense evolution is assessed on a consolidated basis. Financial expense and amortization are not taken into consideration by the CODM for the allocation of resources. In the nine-month periods ended September 30, 2022 and 2021, Atlantica had two customers with revenues representing more than 10% of total revenue, both in the renewable energy business sector. a) The following tables show Revenue and Adjusted EBITDA by operating segments and business sectors for the nine-month periods ended , and : Revenue Adjusted EBITDA For the nine-month period ended September 30, For the nine-month period ended September 30, ($ in thousands) Geography 2022 2021 2022 2021 North America 323,693 308,661 258,161 243,361 South America 122,549 117,129 95,080 90,626 EMEA 412,163 514,628 277,400 300,094 Total 858,405 940,418 630,641 634,081 Revenue Adjusted EBITDA For the nine-month period ended September 30, For the nine-month period ended September 30, ($ in thousands) Business sector 2022 2021 2022 2021 Renewable energy 652,757 725,756 469,851 464,861 Efficient natural gas & heat 81,944 93,524 66,808 76,387 Transmission lines 83,278 80,428 66,226 64,243 Water 40,424 40,710 27,756 28,590 Total 858,405 940,418 630,641 634,081 The reconciliation of segment Adjusted EBITDA with the loss attributable to the Company is as follows: For the nine-month period ended September 30, ($ in thousands) 2022 2021 Loss attributable to the Company (9,473 ) (18,166 ) Profit attributable to non-controlling interests 11,278 11,720 Income tax 12,975 42,390 Financial expense, net 224,893 251,422 Depreciation, amortization, and impairment charges 374,059 334,916 Depreciation and amortization, financial expense and income tax expense of unconsolidated affiliates (pro rata of Atlantica’s equity ownership) 16,909 11,799 Total segment Adjusted EBITDA 630,641 634,081 b) The assets and liabilities by operating segments (and business sector) as of September 30, 2022 and December 31, 2021 are as follows: Assets and liabilities by geography as of September 30, 2022: North America South America EMEA Balance as of September 30, 2022 ($ in thousands) Assets allocated Contracted concessional assets 3,191,373 1,274,981 2,872,095 7,338,449 Investments carried under the equity method 222,624 - 45,528 268,151 Current financial investments 117,327 29,244 43,498 190,069 Cash and cash equivalents (project companies) 211,483 99,880 364,179 675,542 Subtotal allocated 3,742,807 1,404,105 3,325,300 8,472,211 Unallocated assets Other non-current assets 305,507 Other current assets (including cash and cash equivalents at holding company level) 368,614 Subtotal unallocated 674,121 Total assets 9,146,332 North America South America EMEA Balance as of September 30, 2022 ($ in thousands) Liabilities allocated Long-term and short-term project debt 1,771,257 857,401 1,993,282 4,621,940 Grants and other liabilities 1,019,619 25,115 197,325 1,242,059 Subtotal allocated 2,790,876 882,516 2,190,607 5,863,999 Unallocated liabilities Long-term and short-term corporate debt 955,540 Other non-current liabilities 344,293 Other current liabilities 177,132 Subtotal unallocated 1,476,965 Total liabilities 7,340,964 Equity unallocated 1,805,368 Total liabilities and equity unallocated 3,282,333 Total liabilities and equity 9,146,332 Assets and liabilities by geography as of December 31, 2021: North America South America EMEA Balance as of December 31, 2021 ($ in thousands) Assets allocated Contracted concessional assets 3,355,669 1,231,276 3,434,623 8,021,568 Investments carried under the equity method 253,221 - 41,360 294,581 Current financial investments 135,224 28,155 44,000 207,379 Cash and cash equivalents (project companies) 171,744 74,149 287,655 533,548 Subtotal allocated 3,915,858 1,333,580 3,807,638 9,057,076 Unallocated assets Other non-current assets 268,876 Other current assets (including cash and cash equivalents at holding company level) 425,978 Subtotal unallocated 694,854 Total assets 9,751,930 North America South America EMEA Balance as of December 31, 2021 ($ in thousands) Liabilities allocated Long-term and short-term project debt 1,792,739 887,497 2,355,957 5,036,193 Grants and other liabilities 1,051,679 14,445 197,620 1,263,744 Subtotal allocated 2,844,418 901,942 2,553,577 6,299,937 Unallocated liabilities Long-term and short-term corporate debt 1,023,071 Other non-current liabilities 532,312 Other current liabilities 148,005 Subtotal unallocated 1,703,388 Total liabilities 8,003,325 Equity unallocated 1,748,605 Total liabilities and equity unallocated 3,451,993 Total liabilities and equity 9,751,930 Assets and liabilities by business sector as of September 30, 2022: Renewable energy Efficient natural gas & heat Transmission lines Water Balance as of September 30, 2022 ($ in thousands) Assets allocated Contracted concessional assets 5,893,598 476,590 806,781 161,480 7,338,449 Investments carried under the equity method 211,156 13,841 - 43,154 268,151 Current financial investments 4,091 115,893 28,999 41,086 190,069 Cash and cash equivalents (project companies) 514,378 67,744 66,008 27,412 675,542 Subtotal allocated 6,623,223 674,068 901,788 273,132 8,472,211 Unallocated assets Other non-current assets 305,507 Other current assets (including cash and cash equivalents at holding company level) 368,614 Subtotal unallocated 674,121 Total assets 9,146,332 Renewable energy Efficient natural gas & heat Transmission lines Water Balance as of September 30, 2022 ($ in thousands) Liabilities allocated Long-term and short-term project debt 3,483,395 452,360 598,626 87,559 4,621,940 Grants and other liabilities 1,201,593 31,998 6,118 2,350 1,242,059 Subtotal allocated 4,684,988 484,358 604,744 89,909 5,863,999 Unallocated liabilities Long-term and short-term corporate debt 955,540 Other non-current liabilities 344,293 Other current liabilities 177,132 Subtotal unallocated 1,476,965 Total liabilities 7,340,964 Equity unallocated 1,805,368 Total liabilities and equity unallocated 3,282,333 Total liabilities and equity 9,146,332 Assets and liabilities by business sector as of December 31, 2021: Renewable energy Efficient natural & heat Transmission lines Water Balance as of December 31, 2021 ($ in thousands) Assets allocated Contracted concessional assets 6,533,408 517,247 805,987 164,926 8,021,568 Investments carried under the equity method 240,302 15,358 - 38,921 294,581 Current financial investments 10,761 128,461 27,813 40,344 207,379 Cash and cash equivalents (project companies) 442,213 25,392 44,574 21,369 533,548 Subtotal allocated 7,226,684 686,458 878,374 265,560 9,057,076 Unallocated assets Other non-current assets 268,876 Other current assets (including cash and cash equivalents at holding company level) 425,978 Subtotal unallocated 694,854 Total assets 9,751,930 Renewable energy Efficient natural & heat Transmission lines Water Balance as of December 31, 2021 ($ in thousands) Liabilities allocated Long-term and short-term project debt 3,857,313 478,724 602,278 97,878 5,036,193 Grants and other liabilities 1,244,346 11,212 5,795 2,391 1,263,744 Subtotal allocated 5,101,659 489,936 608,073 100,269 6,299,937 Unallocated liabilities Long-term and short-term corporate debt 1,023,071 Other non-current liabilities 532,312 Other current liabilities 148,005 Subtotal unallocated 1,703,388 Total liabilities 8,003,325 Equity unallocated 1,748,605 Total liabilities and equity unallocated 3,451,993 Total liabilities and equity 9,751,930 c) The amount of depreciation, amortization and impairment charges recognized for the nine-month periods ended September 30, 2022 and 2021 are as follows: For the nine-month period ended September 30, Depreciation, amortization and impairment by geography 2022 2021 ($ in thousands) North America (167,497 ) (119,196 ) South America (46,467 ) (43,388 ) EMEA (160,095 ) (172,332 ) Total (374,059 ) (334,916 ) For the nine-month period ended September 30, Depreciation, amortization and impairment by business sectors 2022 2021 ($ in thousands) Renewable energy (322,183 ) (334,513 ) Efficient natural gas & heat (23,884 ) 22,956 Transmission lines (26,321 ) (24,194 ) Water (1,671 ) 836 Total (374,059 ) (334,916 ) |