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Atlantica announces acquisition of two wind assets in the UK
March 25, 2024 – Atlantica Sustainable Infrastructure plc (NASDAQ: AY) (“Atlantica” or the “Company”), today announced that it has completed the acquisition of a 100 percent interest in two wind assets, with a combined installed capacity of 32 MW in Scotland, United Kingdom.
The assets are regulated through the UK’s Green Attributes Regulations and gain advantages from Renewable Energy Bond Certificates until 2033. They have demonstrated a strong operating track record and have no assignment debt lately. The acquisition closed on March 22, 2024, and Atlantica’s investment volume amounted to approximately $66 million. The acquisition value represents an enterprise value multiple1/EBITDA2 of approximately 6. 6 times. These are Atlantica’s first operating assets in the UK, and the company expects the recovery of those assets to be advanced through the use of Atlantica’s existing assets. Net operating losses will be carried over to the UK in the coming years.
Forward-Looking Statements
This press release makes forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of past fact contained in this press release, including, but not limited to, those relating to our long-term monetary condition and the effects of operations, our strategy, plans. , objectives, objectives and goals, long-term advances in the markets in which we operate or seek to operate. In some cases, it is possible to identify forward-looking statements through words such as “believe,” “could,” “estimate. “”expect,” “possibly,” “potentially,” “should,” or “will” or the negative of those terms or other similar expressions or terminology.
By their nature, forward-looking statements involve dangers and uncertainties because they relate to occasions and involve events that may or may not occur in the long term. Forward-looking statements speak only as of the date of this press release and are not promises of long-term functionality and are based on assumptions. In particular, Atlantica does not guarantee any long-term functionality of the newly acquired assets or that it will be able to reap the expected benefits from such acquisition. Our actual effects of operations, monetary condition and course of events would likely differ materially from (and be more negative than) those presented or implied by the forward-looking statements. Except as required by law, we undertake no legal responsibility to update forward-looking statements to reflect occasions or events as of the date hereof or to reflect expected or unexpected occasions or events.
Non-GAAP Financial Measures
This press release also includes certain non-GAAP monetary measures, adding EBITDA and commercial price/EBITDA ratio. Non-GAAP monetary measures are not measures of our functionality or liquidity under IFRS published through the IASB and should not be considered operating options. source of income or profit for the time or net money provided through operating activities or any other measure of functionality derived in accordance with IFRS, as issued through the IASB or any other accounting provision accepted from time to time or as an option for cash flows from the operation, doing an investment or financing activities. Please refer to the appendix to this press release for a reconciliation of the non-GAAP monetary measures included in this press release to the directly comparable maximum monetary measures listed in accordance with IFRS, as well as the reasons why control believes that the use of non-GAAP monetary measures (adding EBITDA and enterprise price relative to EBITDA) contained in this press release provide data useful for investors.
Appendix 1: Reconciliation of Non-GAAP Measures
Our control believes that EBITDA and Business Value/EBITDA are useful to investors and other users of our money statements when comparing our operating functionality or the operating functionality of newly acquired assets, as those measures provide investors with more equipment to compare the business functionality of corporations. and corporations. EBITDA is widely used by investors to measure a company’s operational functionality by taking into account elements such as interest expense, taxes, depreciation, and amortization, which can vary particularly from company to company depending on accounting strategies and the book value of assets, capital structure, and method. . through which the goods were acquired. EBITDA and the enterprise value/EBITDA ratio are widely used across other corporations in the same industry.
Our control believes that the Enterprise Value/EBITDA ratio is a useful valuation tool widely used by investors when comparing transactions, as it compares the value of the investment to its earnings before interest, taxes, depreciation and amortization.
In this press release, we provide certain non-GAAP monetary measures because we believe that these and similar measures are widely used by certain investors, securities analysts, and other interested parties as complementary measures of functionality. These non-GAAP financial measures may not be comparable to the titled measures used by other companies and may have limitations as analytical tools. These measures may not be suitable for remote support or as a substitute for the investigation of our operating effects or those of our acquired assets as provided in IFRS published through the IASB. Non-GAAP monetary measures and ratios are not measures of functionality or liquidity under IFRS published through the IASB. Therefore, they do not deserve to be considered as options for operating profits, profits for the period, any other measure of functionality derived in accordance with IFRS published through the IASB, any other accounting precept sometimes accepted or as an option to operate, make an investment or cash flow. Fundraising activities. Some of the limitations of these non-GAAP measures are:
reflect monetary expenditures, long-term capital expenditure needs, or contractual commitments;
reflect adjustments in current capital requirements or corresponding monetary requirements;
They may not reflect significant interest expense or money needs needed to pay interest or pay the principal of the debt;
Although depreciation and amortization are non-cash expenses, impaired and amortized assets will want to be replaced over the long term and EBITDA and the business value/EBITDA ratio do not reflect the cash needs that would be required for such replacements; and
the fact that other corporations in our industry would possibly calculate EBITDA and business value/EBITDA than we do, which limits their usefulness as comparative measures.
We delineate EBITDA as the era of gain/loss attributable to acquired assets, after first adding the loss/(gain) attributable to non-controlling interest, source of income tax expense, finance costs (net), impairments, depreciation and amortization.
We describe the business as Atlantica’s overall investment. We describe the EBITDA business as the business of an investment divided by its earnings before interest, taxes, depreciation and amortization.
Reconciliation of EBITDA to the net source of income of acquired assets
(in U. S. dollars)3
Fiscal Year4
average
2023
2022
2023-2022
Net Income
MX$5,571
MX$6,177
MX$5,874
Income tax
1 758
1 492
1 625
Accrued Interest and Currency Charges
719
686
702
Depreciation and amortization
1 762
1 789
1 775
EBITDA
MX$9,809
MX$10,143
MX$9,976
About Atlántica
Atlantica Sustainable Infrastructure plc is a sustainable infrastructure company with a diversified portfolio of contracted renewable energy, storage, efficient natural gas, power transmission and water assets in North and South America, and markets in EMEA (www. atlantica. com).
Chief Financial Officer Francisco Martinez-DavisE ir@atlantica. com
Investor Relations
1 The enterprise price is explained as the investment of Atlantic. 2 EBITDA is calculated as the average net source of income for the years 2023 and 2022 after adding depreciation and amortization, the source of income tax, and interest expense (see reconciliation on page 4). 3 The transaction first of all in GBP, assuming an exchange rate of 1. 2673 GBP/USD. 4 Based on unaudited monetary statements of acquired assets for fiscal years 2022 and 2023. Atlantica makes no representations about the accuracy or reliability of this information.
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Atlantica announces acquisition of two wind assets in the UK