Atlantica Announces the Acquisition of Two Wind Assets in the United Kingdom - Seite 2

Non-GAAP Financial Measures

This press release also includes certain non-GAAP financial measures, including EBITDA and Enterprise Value to EBITDA. Non-GAAP financial measures are not measurements of our performance or liquidity under IFRS as issued by IASB and should not be considered alternatives to operating profit or profit for the period or net cash provided by operating activities or any other performance measures derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities. Please refer to the appendix of this press release for a reconciliation of the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with IFRS as well as the reasons why management believes the use of non-GAAP financial measures (including EBITDA and Enterprise Value to EBITDA) in this press release provides useful information to investors.

Appendix 1: Reconciliation of Non-GAAP Measures

Our management believes EBITDA and Enterprise Value to EBITDA are useful to investors and other users of our financial statements in evaluating our operating performance or the operating performance of the assets recently acquired because such measures provide investors with additional tools to compare business performance across companies and across periods. EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired. EBITDA and Enterprise Value to EBITDA are widely used by other companies in the same industry.

Our management believes Enterprise Value to EBITDA is a useful valuation tool widely used by investors when evaluating transactions as it compares the investment’s value to its earnings before interest, taxes, depreciation, and amortization.

In this press release we present certain non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance. These non-GAAP financial measures may not be comparable to other similarly titled measures employed by other companies and they may have limitations as analytical tools. These measures may not be fit for isolated consideration or as a substitute for analysis of our or our acquired assets’ operating results as reported under IFRS as issued by the IASB. Non-GAAP financial measures and ratios are not measurements of performance or liquidity under IFRS as issued by the IASB. Thus, they should not be considered as alternatives to operating profit, profit for the period, any other performance measures derived in accordance with IFRS as issued by the IASB, any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities. Some of the limitations of these non-GAAP measures are: