Atlantica Sustainable Infrastructure PLC
Atlantica Sustainable Infrastructure — Q3 2023 Earnings Presentation
32 slides from Atlantica Sustainable Infrastructure's earnings presentation, Nov 13, 2023
Slide 1: Q3 2023 Earnings Presentation
November 8, 2023 Q3 2023 Earnings Presentation
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER Forward Looking Statements This 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 f
Slide 3: Highlights
Highlights Prudent and Simple Financing Model No complex financings. No partners with preferred distribution rights Non-recourse self-amortizing project debt is a key principle BB+ Rating Limited interest rate risk1 Constructive PPA Environment Solid prospects for renewable energy demand PPA prices
Slide 4: Highlights: Operating Results
US$ in million (except CAFD per share) 2023 2022 ∆ Reported ∆ Excluding FX impact Revenue 858.6 858.4 - -2 Adjusted EBITDA 627.3 630.6 (0.5)% (0.5)%2 CAFD 184.2 179.0 2.9% 0.6%3 CAFD per share1 1.59 1.57 1.2% (1.1)%3 HIGHLIGHTS Operating Results CAFD per share is calculated by dividing CAFD for the
Slide 5: Performance by Region and Sector
HIGHLIGHTS Performance by Region and Sector North America South America EMEA Renewables Efficient Nat. Gas & Heat Transmission Lines Water Revenue Adjusted EBITDA US$ in million Revenue Adjusted EBITDA By Region By Sector 9m 2023 9m 2022 ∆ 338.7 323.7 4.6% 260.7 258.1 1.0% 9m 2023 9m 2022 ∆ 140.3 12
Slide 6: Key Operational Metrics
Includes 49% of Vento II 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
Slide 7: Proactively Managing Investments in 2023 and 2024
INVESTMENT PLAN Proactively Managing Investments in 2023 and 2024 2023 2024 Committed or earmarked for the full year Coso Batteries 1 & 2 Batteries US PV Expansion of our existing lines Transmission Storage & others Others North America, South America & Europe $100-120M $150-180M $46-53M1 (1) Our pa
Slide 8: Growth Update: PPAs Signed with an Investment Grade Utility
GROWTH UPDATE 2 PPAs Signed with an Investment Grade Utility Coso Batteries Projects PPAs Signed for Coso Batteries 1&2 Two 15-year tolling agreements signed for Coso Batteries 1 and Coso Batteries 2 Coso Batteries 2 is an 80 MWh (4 hours) storage project located inside our Coso geothermal plant in
Slide 9: Growth Update: Pipeline of ~2.1 GW Renewable Energy + ~6.0 GWh Storage
GROWTH UPDATE Pipeline of ~2.1 GW of Renewable Energy + ~6.0 GWh of storage Project Type (GW)1 Focus on North America supported by the Inflation Reduction Act Only includes projects estimated to be ready to build before or in 2030 of approximately 3.6 GW, 2.1 GW of renewable energy and 1.5 GW of sto
Slide 10: Prudent and Simple Financing Model
PRUDENT FINANCING Prudent and Simple Financing Model Project Debt Interest Rate Risk Key Principle: majority of non-recourse self amortizing project debt in ring-fenced subsidiaries Project debt is fully repaid progressively before the end of PPA/regulation3 No complex financings. No partnerships wh
Slide 11: Appendix
QB 2023 Earnings Presentation Appendix Atlantica Sustainable Infrastructure
Slide 12: Sizeable and Diversified Asset Portfolio
Geography1 Interest rates Currency Highly Sector1 SIZEABLE AND DIVERSIFIED ASSET PORTFOLIO Portfolio Breakdown Based on Estimated CAFD 70% Renewable 15% Eff. Natural Gas & Heat 12% Transmission Lines 3% Water of interest rates in project debt are fixed or hedged3 ~92 % 90 Denominated in USD or hedge
Slide 13: Cash Flow: Operating Cash Flow
CASH FLOW Operating Cash Flow US$ in million 2023 2022 Adjusted EBITDA 627.3 XX 630.6 Share in Adjusted EBITDA of unconsolidated affiliates (25.3) (37.6) Net interest and income tax paid (159.9) (162.1) Variations in working capital (116.1) 47.8 Non-monetary adjustments and other 7.9 37.0 OPERATING
Slide 14: Net Debt
Net corporate debt is calculated as long-term corporate debt plus short-term corporate debt minus cash and cash equivalents at Atlantica’s corporate level. Net corporate debt / CAFD before corporate debt service is calculated as net corporate debt divided by midpoint 2023 CAFD guidance before corpor
Slide 15: Liquidity Position
Exchange rates as of September 30, 2023 (EUR/USD = 1.0573) and December 31, 2022 (EUR/USD = 1.0705). Restricted cash is cash which is restricted generally due to requirements of certain project finance agreements. US $ in million1 As of Sept. 30 2023 As of Dec. 31 2022 Corporate cash at Atlantica 48
Slide 16: Strong Liquidity and No Significant Corporate Debt Maturities
Strong Liquidity and No Significant Corporate Debt Maturities in the Short-term ~$441.1 million @ 30/09/23 Corporate Liquidity ~3.4 years average maturity2 of current corporate debt Revolving Credit Facility’s total limit is $450.0 million, of which $393.1 million was available as of September 30, 2
Slide 17: Corporate Debt Details
CORPORATE DEBT DETAILS Corporate Debt as of September 30, 2023 No significant maturities in the short term Exchange rates as of September 30, 2023 (EUR/USD = 1.0573). Amounts include principal amounts outstanding, unless stated otherwise. As of September 30, 2023, letters of credit with face value i
Slide 18: Interest Rate Risk Coverage
Project Debt Calculated as the weighted average of the percentage of fixed or hedged corporate debt and the % of fixed or hedged project debt based on outstanding balance as of September 30, 2023. (2) See our Annual Report on Form 20-F for the fiscal year ended December 31, 2022 for additional infor
Slide 19: Project Debt Amortization Schedule
Project Debt Amortization Schedule Asset ($ Millions) Oct. 1 to Dec.31 2023 Full Year Forescasted ammortization Schedule on non-recourse Project debt as of September 30, 2023 ($ millions) 2023 (October to December) 2024 2025 2026 2027 2028 Thereafter Total Solana 22.8 24.2 26.8 29.5 32.4 35.4 415.4
Slide 20: Long-Term Stable Cash Flows
Weighted Average Life Project debt term PPAs with predefined prices for ~13 years on average2 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 term3 Does not include
Slide 21: Historical Financial Review: Key Financials by Quarter
HISTORICAL FINANCIAL REVIEW Key Financials by Quarter (1/2) “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 forei
Slide 22: Debt Details
Debt Details 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 Project Debt 5,200.2 5,374.2 5,278.9 5,036.2 5,036.2 5,037.0 4,735.5 4,621.9 4,553.1 4,553.1 4,596.6 4,438.2 4,412.1 Project Cash (624.6) (603.1) (685.0) (534.4) (534.4) (625.9) (545.1) (675.8) (540.2) (540.2) (493.5) (414
Slide 23: Historical Financial Review: Segment Financials by Quarter
HISTORICAL FINANCIAL REVIEW Segment Financials by Quarter 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 by Geography NORTH AMERICA 60,585 118,216 129,860 87,114 395,775 74,304 124,968 124,423 81,352 405,047 72,840 129,331 136,574 SOUTH AMERICA 38,308 40,043 38,778 37,856 154,985 3
Slide 24: Historical Operating Metrics by Quarter
1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 RENEWABLES3 (GWh) 606 1,377 1,477 1,195 4,655 1,094 1,554 1,507 1,164 5,319 1,192 1,611 1,580 (GWh)4 542 501 622 627 2,292 625 626 647 603 2,501 600 630 662 (availability %)5 98.3% 100.1% 101.1% 103.0% 100.6% 100.3% 99.9% 101.1% 95.1%
Slide 25: Historical Capacity Factors
Historical Capacity Factors1 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 3Q22 4Q22 2022 1Q23 2Q23 3Q23 SOLAR US 18.0% 38.6% 31.0% 17.0% 26.1% 17.2% 39.1% 32.4% 16.6% 26.3% 15.2% 42.4% 36.9% Chile2 28.4% 20.9% 20.6% 25.8% 23.9% 25.3% 20.4% 24.6% 28.8% 24.8% 27.6% 21.4% 19.0%5 Spain 9.1% 24.8% 29.6% 10.7% 18.6
Slide 26: Non-GAAP Measures Definitions
Our management believes Adjusted EBITDA, CAFD and CAFD per share are useful to investors and other users of our financial statements in evaluating our operating performance because such measures provide investors with additional tools to compare business performance across companies and across perio
Slide 27: Pro-rata Share of Unconsolidated Affiliates
Information presented as the pro-rata share of our unconsolidated affiliates reflects our proportionate ownership of each asset in our property portfolio that we do not consolidate and has been calculated by multiplying our unconsolidated affiliates’ financial statement line items by our percentage
Slide 28: Reconciliation of Profit to Adjusted EBITDA
“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
Slide 29: Reconciliation of Adjusted EBITDA and CAFD
RECONCILIATION Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities (in thousands of U.S. dollars) For the three-month period ended September 30 For the three-month period ended June 30 For the nine-month period ended September 30 2023 2022 2023 2022 Net cash provided by op
Slide 30: Asset List: North America, South America and Other
As of October 30 2023 ASSET TYPE STAKE LOCATION GROSSCAPACITY OFFTAKER RATING1 YEARS INCONTRACT LEFT6 CURRENCY RENEWABLE ENERGY Solana 100% USA (Arizona) 280 MW APS BBB+/A3/BBB+ 20 USD Mojave 100% USA (California) 280 MW PG&E BB-/Ba2/BB+ 16 USD Coso 100% USA (California) 135 MW SCPPA & two CCAs4 Inv
Slide 31: Asset List: Europe, Africa and Other
As of October 30, 2023 ASSET TYPE STAKE LOCATION GROSSCAPACITY OFFTAKER RATING1 YEARS INCONTRACT LEFT6 CURRENCY RENEWABLE ENERGY Solaben 2/3 70% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 14/14 EUR4 Solacor 1/2 87% Spain 2x50 MW Kingdom of Spain A/Baa1/A- 13/14 EUR4 PS 10/20 100% Spain 31 MW Kingdom o
Slide 32: Signatures
Great West House, GW1, 17th floor, Great West Road Brentford TW8 9DF London (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
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