Note 4. - Financial information by segment

Atlantica’s segment structure reflects how management currently makes financial decisions and allocates resources. Its operating segments are based on the following geographies where the contracted concessional assets are located:

•

North America

•

South America

•

EMEA

Based on the type of business, as of March 31, 2020, the Company had the following business sectors:

Renewable energy: Renewable energy assets include two solar plants in the United States, Solana and Mojave, each with a gross capacity of 280 MW and located in Arizona and California, respectively. The Company owns eight solar platforms in Spain: Solacor 1 and 2 with a gross capacity of 100 MW, PS10 and PS20 with a gross capacity of 31 MW, Solaben 2 and 3 with a gross capacity of 100 MW, Helioenergy 1 and 2 with a gross capacity of 100 MW, Helios 1 and 2 with a gross capacity of 100 MW, Solnova 1, 3 and 4 with a gross capacity of 150 MW, Solaben 1 and 6 with a gross capacity of 100 MW and Seville PV with a gross capacity of 1 MW. The Company also owns a solar plant in South Africa, Kaxu with a gross capacity of 100 MW. Additionally, the Company owns three wind farms in Uruguay, Palmatir, Cadonal and Melowind, with a gross capacity of 50 MW each, and a hydroelectric power plant in Peru with a gross capacity of 4 MW.

Efficient natural gas: Efficient natural gas assets include (i) ACT, a 300 MW cogeneration plant in Mexico, which is party to a 20-year take-or-pay contract with Pemex for the sale of electric power and steam, and (ii) a minority interest in Monterrey, a 142 MW gas-fired engine facility including 130 MW installed capacity and 12 MW battery capacity.

Electric transmission lines: Electric transmission assets include (i) three lines in Peru, ATN, ATS and ATN2, spanning a total of 1,029 miles; and (ii) four lines in Chile, Quadra 1, Quadra 2, Palmucho and Chile TL3, spanning a total of 137 miles.

Water: Water assets include a minority interest in two desalination plants in Algeria, Honaine and Skikda with an aggregate capacity of 10.5 Mft3 per day.

Atlantica’s Chief Operating Decision Maker (CODM) assesses the performance and assignment of resources according to the identified operating segments. The CODM considers the revenues 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 from continued operations, income tax, share of profit/(loss) of associates carried under the equity method, finance expense net, depreciation, amortization and impairment charges of entities included in these consolidated condensed interim financial statements.

In order to assess performance of the business, the CODM receives reports of each reportable segment using revenues 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 three-month period ended March 31, 2020, Atlantica had two customers with revenues representing more than 10% of the total revenues, one in the renewable energy and one in the efficient natural gas business sectors. In the three-month period ended March 31, 2019, Atlantica had three customers with revenues representing more than 10% of the total revenues, two in the renewable energy and one in the efficient natural gas business sectors.

The following tables show Revenues and Adjusted EBITDA by operating segments and business sectors for the three-month periods ended March 31, 2020 and 2019:

	Revenue				Adjusted EBITDA
	For the three-month period ended March 31,				For the three-month period ended March 31,
	($ in thousands)
Geography	2020		2019		2020		2019
North America		59,283		60,441		51,176		50,870
South America		35,654		33,493		28,422		28,212
EMEA		115,466		127,518		82,811		100,007
Total		210,403		221,452		162,409		179,089

	Revenue				Adjusted EBITDA
	For the three-month period ended March 31,				For the three-month period ended March 31,
	($ in thousands)
Business sector	2020		2019		2020		2019
Renewable energy		150,793		156,817		113,491		123,484
Efficient natural gas		26,403		34,009		23,540		30,476
Electric transmission lines		26,608		24,867		21,538		21,650
Water		6,599		5,759		3,840		3,479
Total		210,403		221,452		162,409		179,089

The reconciliation of segment Adjusted EBITDA with the profit/(loss) attributable to the Company is as follows:

	For the three-month period ended March 31, ($ in thousands)
	2020			2019
Profit/(Loss) attributable to the Company	$	(40,511	)		(8,957	)
(Loss)/Profit attributable to non-controlling interests		2,246			5,267
Income tax		(10,147	)		9,577
Share of (profits)/losses of associates		668			(1,823	)
Financial expense, net		100,534			99,289
Depreciation, amortization, and impairment charges		109,619			75,736
Total segment Adjusted EBITDA	$	162,409			179,089

The assets and liabilities by operating segments (and business sector) as of March 31, 2020 and December 31, 2019 are as follows:

Assets and liabilities by geography as of March 31, 2020:

	North America		South America		EMEA		Balance as of March 31, 2020
	($ in thousands)
Assets allocated
Contracted concessional assets		3,238,914		1,170,544		3,497,872		7,907,329
Investments carried under the equity method		79,526		-		48,093		127,619
Current financial investments		123,186		27,814		20,084		171,084
Cash and cash equivalents (project companies)		182,423		80,417		271,906		534,746
Subtotal allocated		3,624,049		1,278,774		3,837,955		8,740,778
Unallocated assets
Other non-current assets								249,189
Other current assets (including cash and cash equivalents at holding company level)								529,204
Subtotal unallocated								778,393
Total assets								9,519,171

	North America		South America		EMEA		Balance as of March 31, 2020
	($ in thousands)
Liabilities allocated
Long-term and short-term project debt		1,689,143		886,319		2,201,730		4,777,192
Grants and other liabilities		1,483,240		12,615		126,402		1,622,257
Subtotal allocated		3,172,383		898,934		2,328,132		6,399,449
Unallocated liabilities
Long-term and short-term corporate debt								807,347
Other non-current liabilities								588,523
Other current liabilities								154,722
Subtotal unallocated								1,550,592
Total liabilities								7,950,041
Equity unallocated								1,569,130
Total liabilities and equity unallocated								3,119,722
Total liabilities and equity								9,519,171

Assets and liabilities by geography as of December 31, 2019:

	North America		South America		EMEA		Balance as of December 31, 2019
	($ in thousands)
Assets allocated
Contracted concessional assets		3,299,198		1,186,552		3,675,379		8,161,129
Investments carried under the equity method		90,847		-		49,078		139,925
Current financial investments		159,267		29,190		20,673		209,131
Cash and cash equivalents (project companies)		181,458		80,909		234,097		496,464
Subtotal allocated		3,730,771		1,296,652		3,979,227		9,006,649
Unallocated assets
Other non-current assets								239,553
Other current assets (including cash and cash equivalents at holding company level)								413,613
Subtotal unallocated								653,166
Total assets								9,659,815

	North America		South America		EMEA		Balance as of December 31, 2019
			($ in thousands)
Liabilities allocated
Long-term and short-term project debt		1,676,251		884,835		2,291,262		4,852,348
Grants and other liabilities		1,490,679		12,864		138,209		1,641,752
Subtotal allocated		3,166,930		897,699		2,429,471		6,494,100
Unallocated liabilities
Long-term and short-term corporate debt								723,791
Other non-current liabilities								564,855
Other current liabilities								162,213
Subtotal unallocated								1,450,859
Total liabilities								7,944,959
Equity unallocated								1,714,856
Total liabilities and equity unallocated								3,165,715
Total liabilities and equity								9,659,815

Assets and liabilities by business sector as of March 31, 2020:

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of March 31, 2020
					($ in thousands)
Assets allocated
Contracted concessional assets		6,436,376		529,540		861,725		79,688		7,907,329
Investments carried under the equity method		67,789		15,469		-		44,362		127,619
Current financial investments		16,122		109,189		27,814		17,958		171,084
Cash and cash equivalents (project companies)		444,622		19,805		59,612		10,707		534,746
Subtotal allocated		6,964,909		674,003		949,150		152,716		8,740,778
Unallocated assets
Other non-current assets										249,189
Other current assets (including cash and cash equivalents at holding company level)										529,204
Subtotal unallocated										778,393
Total assets										9,519,171

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of March 31, 2020
	($ in thousands)
Liabilities allocated
Long-term and short-term project debt		3,584,214		523,907		647,085		21,986		4,777,192
Grants and other liabilities		1,615,004		99		6,435		719		1,622,257
Subtotal allocated		5,199,218		524,006		653,520		22,705		6,399,449
Unallocated liabilities
Long-term and short-term corporate debt										807,347
Other non-current liabilities										588,523
Other current liabilities										154,722
Subtotal unallocated										1,550,592
Total liabilities										7,950,041
Equity unallocated										1,569,130
Total liabilities and equity unallocated										3,119,722
Total liabilities and equity										9,519,171

Assets and liabilities by business sector as of December 31, 2019:

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of December 31, 2019
	($ in thousands)
Assets allocated
Contracted concessional assets		6,644,024		559,069		872,757		85,280		8,161,129
Investments carried under the equity method		77,549		17,154		-		45,222		139,925
Current financial investments		13,798		148,723		28,237		18,373		209,131
Cash and cash equivalents (project companies)		421,198		11,850		53,868		9,548		496,464
Subtotal allocated		7,156,568		736,796		954,862		158,423		9,006,649
Unallocated assets
Other non-current assets										239,553
Other current assets (including cash and cash equivalents at holding company level)										413,613
Subtotal unallocated										653,166
Total assets										9,659,815

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of December 31, 2019
	($ in thousands)
Liabilities allocated
Long-term and short-term project debt		3,658,507		529,350		640,160		24,331		4,852,348
Grants and other liabilities		1,634,361		146		6,517		728		1,641,752
Subtotal allocated		5,292,868		529,495		646,677		25,059		6,494,100
Unallocated liabilities
Long-term and short-term corporate debt										723,791
Other non-current liabilities										564,855
Other current liabilities										162,213
Subtotal unallocated										1,450,859
Total liabilities										7,944,959
Equity unallocated										1,714,856
Total liabilities and equity unallocated										3,165,715
Total liabilities and equity										9,659,815

The amount of depreciation, amortization and impairment charges recognized for the three-month periods ended March 31, 2020 and 2019 are as follows:

	For the three-month period ended March 31,
Depreciation, amortization and impairment by geography	2020			2019
	($ in thousands)
North America		(57,121	)		(26,583	)
South America		(15,572	)		(11,250	)
EMEA		(36,927	)		(37,902	)
Total		(109,619	)		(75,736	)

	For the three-month period ended March 31,
Depreciation, amortization and impairment by business sectors	2020			2019
	($ in thousands)
Renewable energy		(71,613	)		(72,139	)
Efficient natural gas		(26,202	)		2,537
Electric transmission lines		(10,457	)		(6,134	)
Water		(1,348	)		-
Total		(109,619	)		(75,736	)