Atlantica Sustainable Infrastructure plc

Welcome to Atlantica's full-year 2020 Financial Results Conference call. Atlantica is a sustainable infrastructure company that owns a diverse portfolio of contracted renewable energy, power generation, electric transmission and water assets in North and South America and in certain markets in EMEA. Just a reminder that this call is being webcast live on the internet and a replay of this call will be available on Atlantica's corporate website. Atlantica will be making forward-looking statements during this call based on current expectations and assumptions which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements. If any of our key assumptions are incorrect or because of other factors discussed in today's earnings presentation, or because of the other factors discussed, including the risk factors section of the accompanying presentation and in our latest reports and filings with the Securities and Exchange Commission, all of which can be found on our website. Atlantica does not undertake any duty to update any forward-looking statements. Joining us for today's conference call are Atlantica CEO Santiago Sigi and CFO Francisco Martinez-Davis. As usual, at the end of the conference call, we will open the lines for the Q&A session. I will now pass over to Mr. Sigi. Please go ahead, sir.

Thank you very much. Good morning. Thank you for joining us today for our 2020 conference call. I will start with a few key messages. We have closed 2020 with a very strong performance across our fleet, and a 5.5% CADI growth versus the year before. In terms of growth, in 2020, we closed over $300 million in equity investments, but more importantly, for 2021, we have already agreed approximately $280 million in new equity investments. including the acquisition of three new renewable energy assets. With this, we are initiating our 2021 CAFDI target guidance in the range of $220 to $240 million. And we are setting mid-term CAFDI per share growth target in the range of 5% to 8%. And finally, we have received in the last couple of months top ESG ratings from three different rating entities. I will now turn the call over to Francisco, who will take us through financial results.

Thank you, Santiago. Good morning. Please turn to slide number five, where I will present our key financials for full year 2020. Revenue in 2020 reached $1,013 million, stable versus the previous year. And adjusted EBITDA included unconsolidated affiliates decreased by 3.1% to $796 million. Regarding CAFTI, we generated $201 million in the full year 2020, an increase of close to 6% year over year. In addition to our cash available for distribution, in full year 2020, we generated $216 million in one-off cash through three project debt refinancings. Please now turn to slide number six, where you can see that in 2020, we have had a very strong cash generation. CAFD was $201 million. but the cash generated by the assets in reality was $461 million. At Atlantica, most of our project debt is amortized or repaid over the life of the PPA. $461 million is therefore the cash generated by our portfolio of assets before project debt principal repayments. And out of that amount, we have used over $260 million to repay project debt principal. Let's now please turn to slide number seven, where we will review our performance by sector and geography. In North America, revenue remains stable at $331 million in 2020. The decrease in EBITDA was mainly driven by higher operating expenses at our solar assets in the region. In South America, revenue and EBITDA increased by 7% and 4% respectively, thanks to the continued solid performance of our assets. With higher production from our wind assets and high availability level in transmission lines, and also due to the contribution from recently acquired assets. Revenue and EBITDA in the Maya region decreased slightly. Looking below at the results by business sector, we can see similar effects. In renewable energy, revenue and EBITDA decreased due to the reasons previously mentioned. In efficient natural gas, revenue in EBITDA decreased mainly due to a one-time adjustment with no cash impact recorded in ACT in 2019. Our transmission lines continue to show very good availability levels, which, together with acquisitions, explain the increase in revenues in EBITDA. And finally, in our water sector, revenue in EBITDA increased thanks to the contribution from our third water desalination plant that we started to consolidate in the second quarter of 2020. Moving on to the following slide, number eight. This provides an overview of the key operational matrix of our assets. Electricity produced by our renewable assets reached 3,000 244 gigawatt hours in 2020, a slight increase versus 2019. Looking at our availability-based contracts, once again, ACT continues to show solid performance. And finally, in transmission lines and water, the two other sectors where our revenue is based on availability, we continue to achieve high availability levels of around 100%. Let's now move to slide nine to walk you through our cash flow for full year 2020. Our operating cash flow for 2020 reached $438 million, showing close to a 21% increase versus 2019, mostly thanks to an improvement in variations in working capital. In addition, in 2020 we paid approximately $267 million for the acquisition of the tax equity interest in Solana. From an accounting perspective, this amount is classified as financing cash flow. Financing cash flow in 2020, also including the net proceeds from the debt refinancings and corporate debt financings, our scheduled project debt repayment of approximately $260 million, dividend payments of $192 million, and $162 million in proceeds from the underwritten public offering closed in December 2020. All in all, the net change in consolidated cash in 2020 was an increase of $295 million approximately. On the next slide, 10, we would like to review our net debt position. We closed 2020 with net corporate debt of $659 million, similar to that of the previous year. With this, our net corporate debt to CAFTE pre-corporate debt service ratio stood at three times. Thanks to the corporate and project debt refinancing closed during the first nine months of 2020, we have been able to extend our maturities. And as of today, we do not have any significant corporate debt maturity until 2025. Our average corporate debt maturity stood at approximately 5.1 years as of December 31, 2020. In addition, we have $415 million available from our revolving credit facility, which together with our corporate cash on hand of $335 million represents a total liquidity of more than $750 million available to finance new investments. Net project debt after December 31st, 2020 was $4,704 million. I will now turn the call back over to Santiago.