Atlantica Sustainable Infrastructure plc

Welcome to Atlantica's Fall Year 2022 Financial Results Conference Call. Atlantica is a sustainable infrastructure company. Just a reminder that this call is being webcast live on the internet and the replay of this call will be available on Atlantica's corporate website. Atlantica will be making forward-looking statements during this call based on the 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 earning presentation, or because of other factors discussed including the risk factors section of the accompanying presentation and in our latest reports and filing 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's CEO, Santiago Sieg and CFO, Francesco Martinez-Davies. As usual, at the end of the conference call, we will open the lines for a Q&A session. I will now pass you over to Mr. Sieg. Please, sir, go ahead.

Thank you very much. Good morning. Thank you, everybody, for joining us for our 2022 conference call. I will start with a few key messages. In 2022, revenue on adjusted BDA increased by 2.9% and 1.5% respectively on a comparable basis. At the same time, cash available for distribution increased by 5.5% year over year, reaching $238 million. Net cash provided by operating activities in 2022 was $586 million, a 16% increase compared with 2021. With those results, we are initiating our 2023 CAFI guidance in the range of $235 to $260 million. And in terms of investments growth, we have already committed or we have earmarked investments representing for 2023 between $165 and $185 million. With those key messages in mind, I will now turn the call to Francisco, who will take you through the results. Francisco, whenever you want.

Thank you very much, Santiago, and good morning to everyone. Please turn to slide number five, where I will present our key financial for full year 2022. Revenue reached $1,102 million, which represents a 2.9 percent growth on a comparable basis, excluding the effects of the non-recurrent solar project that we discussed last year and foreign exchange. Adjusted EBITDA amounted to $797 million, representing an increase of 1.5% on the same comparable basis. Regarding cash available for distribution, we generated $238 million for the full year of 2022, an increase of 5.5% year over year. On the following slide, number six, You can see our performance by geography and business sector. In North America, revenue increased by 2% to $405 million in the full year 2022, mainly due to the contribution from the recently acquired assets. In South America, revenue increased by 7% compared to 2021, up to $166 million, and EBITDA increased 6% up to $126 million. The increase was mainly due to the assets acquired during the period and to inflation mechanisms. Revenue and EBITDA in the Maya region, excluding the foreign exchange impact and the non-recurrent effect mentioned previously, both increased by 2% in 2022. This was mostly due to higher production and inflation indexation in Cachú, as well as higher electricity prices in Spain. Looking below at the results by business sector, we can see similar effects. Now, let's please turn to slide number seven, where we will review our operational performance. Electricity produced by renewable assets reached 5,319 gigawatt hours in the full year 2022, an increase of 14% versus the same period of 2021. The increase was largely due to the contribution of assets recently acquired. Looking at our availability-based contracts, once again, ACT continues to show solid performance. In water, Availability in 2022 was higher than 2021 with very good performance in all the assets. Our transmission lines continue to achieve high availability levels. Now let's move to slide number eight to walk you through our cash flow for the full year 2022. Our operating cash flow reached $586 million, a strong 16% increase compared to the full year 2021. This increase was mainly due to an improvement in changes in working capital of $82 million, mostly a result of better collections in ACT and better collections in Spain. Investing cash flow for the full year 2022 mainly includes investments in new assets and the distributions received from entities under the equity method. Financing cash flow was $535 million, and it mainly includes the scheduled principal repayment of our project finance agreement for $426 million, and dividends paid to shareholder and non-controlling interest for $242 million. On the next slide, number nine, we would like to review our net debt position, which has decreased significantly compared to 2021 year-end. Net debt as of December 31, 2022, was 4,013 million, a decrease of approximately 500 million versus December 31st, 2021. In addition, we closed the full year 2022 with a net corporate debt of 956 million. With this, our net corporate debt to cap the pre-corporate debt service ratio stood at 3.4 times. Moving on to the next slide, slide number 10. In 2022, we have also made good progress on the ESG front, and our efforts continues to be recognized. In November 2022, Atlantica was ranked number one globally on the GRESB's Infrastructure Public Disclosure Rating. In December 2022, we were included for the second consecutive year in CDP's A-list, achieving the highest score on environmental transparency and action in relation to climate change. In January 2023, we were ranked for the third consecutive year by Global 100 among the world's 100 more sustainable corporations. Also, in January 2023, Atlantica was included for the third consecutive year in the Bloomberg Gender Equality Index. And finally, in February 2023, Atlantica was included for the second consecutive year in the S&P Global Sustainability Yearbook. Now with this, I will turn the call back over to Santiago.