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 June 30, 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, and a solar PV plant in Chile, Chile PV I with a gross capacity of 55 MW. Additionally, the Company owns three wind farms in Uruguay, Palmatir, Cadonal and Melowind, with a gross capacity of 50 MW each, 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 interests in three desalination plants in Algeria, Honaine, Skikda and Tenes with an aggregate capacity of 17.5 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 six-month period ended June 30, 2020, Atlantica had four customers with revenues representing more than 10% of the total revenues, three in the renewable energy and one in the efficient natural gas business sectors. In the six-month period ended June 30, 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.

a) The following tables show Revenues and Adjusted EBITDA by operating segments and business sectors for the six-month periods ended June 30, 2020 and 2019:

	Revenue				Adjusted EBITDA
	For the six-month period ended June 30,				For the six-month period ended June 30,
	($ in thousands)
Geography		2020	2019		2020		2019
North America		157,932		164,536		139,273		147,162
South America		75,029		69,090		59,803		57,464
EMEA		232,786		271,164		173,481		201,772
Total		465,747		504,790		372,557		406,398

	Revenue				Adjusted EBITDA
	For the six-month period ended June 30,				For the six-month period ended June 30,
	($ in thousands)
Business sector	2020		2019		2020		2019
Renewable energy		344,674		380,086		274,761		301,395
Efficient natural gas		52,032		61,698		45,877		54,302
Electric transmission lines		53,395		51,098		43,216		43,585
Water		15,646		11,908		8,703		7,116
Total		465,747		504,790		372,557		406,398

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

	For the six-month period ended June 30, ($ in thousands)
	2020			2019
Profit/(Loss) attributable to the Company	$	(28,171	)		16,956
(Loss)/Profit attributable to non-controlling interests		1,979			5,791
Income tax		3,471			27,040
Share of (profits)/losses of associates		(1,591	)		(3,352	)
Financial expense, net		202,797			209,900
Depreciation, amortization, and impairment charges		194,073			150,063
Total segment Adjusted EBITDA	$	372,557			406,398

b) The assets and liabilities by operating segments (and business sector) as of June 30, 2020 and December 31, 2019 are as follows:

Assets and liabilities by geography as of June 30, 2020:

	North America		South America		EMEA		Balance as of June 30, 2020
	($ in thousands)
Assets allocated
Contracted concessional assets		3,189,576		1,221,048		3,624,266		8,034,890
Investments carried under the equity method		79,187		-		47,425		126,613
Current financial investments		118,563		27,951		40,788		187,302
Cash and cash equivalents (project companies)		193,323		78,226		238,058		509,607
Subtotal allocated		3,580,649		1,327,225		3,950,538		8,858,412
Unallocated assets
Other non-current assets								231,374
Other current assets (including cash and cash equivalents at holding company level)								677,160
Subtotal unallocated								908,534
Total assets								9,766,946

	North America		South America		EMEA		Balance as of June 30, 2020
	($ in thousands)
Liabilities allocated
Long-term and short-term project debt		1,657,615		927,322		2,422,596		5,007,533
Grants and other liabilities		1,476,559		11,558		114,037		1,602,155
Subtotal allocated		3,134,174		938,880		2,536,633		6,609,688
Unallocated liabilities
Long-term and short-term corporate debt								836,973
Other non-current liabilities								603,324
Other current liabilities								159,842
Subtotal unallocated								1,600,139
Total liabilities								8,209,827
Equity unallocated								1,557,119
Total liabilities and equity unallocated								3,157,259
Total liabilities and equity								9,766,946

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 June 30, 2020:

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of June 30, 2020
					($ in thousands)
Assets allocated
Contracted concessional assets		6,490,467		515,445		854,401		174,577		8,034,890
Investments carried under the equity method		64,115		17,716		46		44,736		126,613
Current financial investments		17,049		103,640		27,951		38,662		187,302
Cash and cash equivalents (project companies)		406,392		31,569		47,212		24,434		509,607
Subtotal allocated		6.978.023		668,370		929,610		282,409		8,858,412
Unallocated assets
Other non-current assets										231,374
Other current assets (including cash and cash equivalents at holding company level)										677,160
Subtotal unallocated										908,534
Total assets										9,766,946

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of June 30, 2020
	($ in thousands)
Liabilities allocated
Long-term and short-term project debt		3,731,485		516,805		636,140		123,103		5,007,533
Grants and other liabilities		1,594,452		83		6,251		1,369		1,602,155
Subtotal allocated		5,325,937		516,888		642,391		124,472		6,609,688
Unallocated liabilities
Long-term and short-term corporate debt										836,973
Other non-current liabilities										603,324
Other current liabilities										159,842
Subtotal unallocated										1,600,139
Total liabilities										8,209,827
Equity unallocated										1,557,119
Total liabilities and equity unallocated										3,157,259
Total liabilities and equity										9,766,946

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

c) The amount of depreciation, amortization and impairment charges recognized for the six-month periods ended June 30, 2020 and 2019 are as follows:

	For the six-month period ended June 30,
Depreciation, amortization and impairment by geography	2020			2019
	($ in thousands)
North America		(95,981	)		(53,013	)
South America		(27,666	)		(22,859	)
EMEA		(70,426	)		(74,191	)
Total		(194,073	)		(150,063	)

	For the six-month period ended June 30,
Depreciation, amortization and impairment by business sectors	2020			2019
	($ in thousands)
Renewable energy		(140,806	)		(142,895	)
Efficient natural gas		(35,697	)		5,425
Electric transmission lines		(16,961	)		(12,593	)
Water		(609	)		-
Total		(194,073	)		(150,063	)