UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2019
Commission File Number 001-36487
Atlantica Yield plc
(Exact name of Registrant as Specified in its Charter)
Not Applicable
(Translation of Registrant's name into English)
Great West House, GW1, 17th floor
Great West Road
Brentford, TW8 9DF
United Kingdom
Tel.: +44 20 7098 4384
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
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☒ Form 20-F
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☐ Form 40-F
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Full Year 2018 Earnings PresentationFebruary 28, 2019
DISCLAIMER Forward Looking StatementsThis presentation contains forward-looking statements.
These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding our future financial position and
results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate or anticipated regulatory changes in the markets in which we operate or intend
to operate. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "guidance," "intend," "is likely to," "may," "plan,"
"potential," "predict," "projected," "should" or "will" or the negative of such terms or other similar expressions or terminology.By their nature, forward-looking statements involve risks and uncertainties because they relate to events
and depend on circumstances that may or may not occur in the future. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance and are based on numerous assumptions. Our
actual results of operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements. Except as required by law, we do not
undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances.Investors should read the
section entitled "Item 3D. Key Information—Risk Factors" and the description of our segments and business sectors in the section entitled "Item 4B. Information on the Company—Business Overview", each in our annual report for the fiscal
year ended December 31, 2018 filed on Form 20-F, for a more complete discussion of the risks and factors that could affect usForward-looking statements include, but are not limited to, statements relating to: uncertainties in emerging
markets where we have international operations; changes in government regulations impacting remaining project life for assets; challenges in achieving growth and making acquisitions due to our dividend policy; increased DPS and
accretive investment opportunities; our ability to close announced asset acquisitions, such as Tenes; estimated returns and cash available for distribution estimates from recently announced acquisitions and finalized asset acquisitions;
cash available for distribution estimations made in reliance on asset performance and assets reaching COD by the expected date; increases in the cost of energy and gas, which could increase operating costs; revocation or termination of
our concession agreements or power purchase agreements; counterparty credit risk and failure of counterparties to our offtake agreements to fulfill their obligations; reputational and financial damage caused by our off-take PG&E and
potential default under our project finance agreement due to a potential breach of our underlying PPA agreement with PG&E; reliance on third-party contractors and suppliers; risks associated with acquisitions and investments;
deviations from our investment criteria for future acquisitions and investments; calculations of maximum possible electrical energy output; the possibility to extend asset life; intentions to improve shareholder return; the comparative
usefulness of financial measurements in the industry; and various other factors, including those factors discussed under “Item 3.D—Risk Factors” and “Item 5.A—Operating Results” in our Annual Report for the fiscal year ended December
31, 2018 filed on Form 20-F.Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations. These factors should be considered in connection with information regarding
risks and uncertainties that may affect our future results included in our filings with the U.S. Securities and Exchange Commission at www.sec.gov. We undertake no obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or developments or otherwise. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated, expected or targeted.The CAFD and other guidance included in this presentation are estimates as of February 28, 2019. These estimates are based on assumptions believed to be
reasonable as of the date, when Atlantica Yield published its FY 2018 Financial Results. Atlantica Yield plc. disclaims any current intention to update such guidance, except as required by law.Non-GAAP Financial Information This
presentation also includes certain non-GAAP financial measures, including Further Adjusted EBITDA including unconsolidated affiliates, Further Adjusted EBITDA including unconsolidated affiliates as a percentage of revenues (margin) and
cash available for distribution (“CAFD”). 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 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 presentation for a reconciliation of the non-GAAP financial measures included in this presentation 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 in this presentation provides useful information.
Key Messages Strong Results, Meeting Guidance in 2018 Once
More CAFD Revenues +1% Further Adj. EBITDA incl. unconsolidated affiliates1 $M $M +4% $M +9% Further Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. Additionally,
for the fiscal year 2017, it includes the dividend from the preferred equity investment in Brazil or its compensation (see reconciliation on page 28).FY 2017 CAFD includes $10.4 million of ACBH dividend compensation (see reconciliation on
page 28). Commitment to Increase DPS in 2019 and Beyond Dividend of $0.37 per Share Declared;+19% Increase vs Q4 2017 Creation of a Strategic Review Committee
1. Financial Results 2. Strategic Update AGENDA Appendix
1. Financial Results
HIGHLIGHTSStrong Operating Results in 2018 Further Adjusted EBITDA including unconsolidated affiliates
includes our share in EBITDA of unconsolidated affiliates. Additionally, for the Fiscal Year 2017, it includes the dividend from the preferred equity investment in Brazil or its compensation (see reconciliation on page 28).Further Adjusted
EBITDA Margin including unconsolidated affiliates is defined as Further Adjusted EBITDA including unconsolidated affiliates divided by revenue (see reconciliation on page 28).CAFD for the Fiscal Year 2017 includes $10.4 million of ACBH
dividend compensation (see reconciliation on page 30). Full Year US $ in millions 2018 2017 ∆ Revenue 1,043.8 1,008.4 +4% Further Adjusted EBITDA incl. unconsolidated affiliates1 858.7 786.6 +9%
Margin2 82.3% 78.0% CAFD 171.6 170.6 +1% 3 Guidance for the year achieved
WATER FY 2018 FY 2017 ∆ 23.5 26.3 (11)% 22.0 23.6 (7)% 94% 90% RENEWABLES FY 2018 FY
2017 ∆ 793.5 767.2 +3% 664.4 569.2 +17% 84% 74% EFFICIENT NATURAL GAS FY 2018 FY 2017 ∆ 130.8 119.8 +9% 93.8 106.1 (12)% 72% 89% TRANSMISSION FY 2018 FY
2017 ∆ 96.0 95.1 +1% 78.5 87.7 (11)% 82% 92% Further Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. Additionally, for the Fiscal Year 2017, it includes the
dividend from the preferred equity investment in Brazil (South America region and Transmission sector) or its compensation (see reconciliation on page 28).Further Adjusted EBITDA Margin including unconsolidated affiliates is defined as
Further Adjusted EBITDA including unconsolidated affiliates divided by revenue. (see reconciliation on page 30). HIGHLIGHTSSolid Performance by Sectors and Regions By Sector US $ in millions Revenue Further Adjusted EBITDA incl.
unconsolidated affiliates1 Margin2 EMEA FY 2018 FY 2017 ∆ 563.4 554.9 +2% 449.7 395.5 +14% 80% 71% NORTH AMERICA FY 2018 FY 2017 ∆ 357.2 332.7 +7% 308.8 282.3 +9% 86% 85% SOUTH AMERICA FY 2018 FY
2017 ∆ 123.2 120.8 +2% 100.2 108.8 (8)% 81% 90% By Region US $ in millions Revenue Further Adjusted EBITDA incl. unconsolidated affiliates1 Margin2
Includes curtailment in wind assets for which we received compensation.Represents total installed
capacity in assets owned at the end of the period, regardless of our percentage of ownership in each of the assets.Electric availability refers to operational MW over contracted MW with PEMEX.Availability refers to actual availability divided
by contracted availability. GWh produced FY 2018 3,058 FY 2017 3,167 GWh produced Electric availability FY 2018 2,318 FY 2017 2,372 99.8% 100.5% Availability FY 2018 FY
2017 99.9% 97.9% Availability FY 2018 102.0% FY 2017 101.8% MW in operation 300 300 Mft3 in operation 10.5 10.5 Miles in operation 1,152 1,099 MW in operation 1,496 1,442 2 4 4 3 2 1 KEY OPERATIONAL
METRICSSolid Operational Performance WATER RENEWABLES EFFICIENT NATURAL GAS TRANSMISSION
CASH FLOWIncreasing Operating Cash Flow Further Adjusted EBITDA including unconsolidated affiliates
includes our share in EBITDA of unconsolidated affiliates. Additionally, for the Fiscal Year 2017, it includes the dividend from the preferred equity investment in Brazil or its compensation (see reconciliation on page 29).Includes proceeds
for $72.6 million and investments for $4.6 million in 2018, and proceeds for $42.5 million and investments for $12.4 million in 2017.Consolidated cash as of December 31, 2018 decreased by $37.9 million vs December 31, 2017 including FX
translation differences of $(18.8) million. US $ in millions FY 2018 FY 2017 Further Adjusted EBITDA incl. unconsolidated affiliates1 858.7 786.6 Share in Further Adjusted EBITDA of unconsolidated affiliates (8.1) (7.3) Net
interest and income tax paid (333.5) (349.5) Variations in working capital (18.3) (8.8) Non-monetary adjustments and other (97.7) (35.4) OPERATING CASH FLOW 401.0 385.6 INVESTING CASH
FLOW2 (14.9) 71.4 FINANCING CASH FLOW (405.2) (416.3) Net change in consolidated cash3 (19.0) 40.7 +4%
NET DEBT POSITION1 Net debt corresponds to gross debt including accrued interest less cash and cash
equivalents.Corporate Net Debt defined as indebtedness where Atlantica Yield Plc is the primary obligor minus cash and cash equivalents held at Atlantica Yield Plc. Project Net Debt is defined as indebtedness where one of our subsidiaries is
the primary obligor minus cash and cash equivalents held by one of our subsidiaries.Net corporate leverage calculated as corporate net debt divided by Cash Available For Distribution for the year 2018 before corporate debt service. US $ in
millions As of Dec. 31,2018 As of Dec. 31,2017 Corporate Net Debt2 577.4 494.6 Project Net Debt3 4,566.3 4,954.3 Corporate net debt / CAFD pre corporate debt service4 2.7x NET DEBTSignificant Reduction in Consolidated Net
Debt ~$400 million Reduction in Project Net Debt in 2018
2. Strategic Update
STRATEGIC UPDATEDelivering on Our Commitment to Grow Dividends Declared Dividends by Year1 Quarterly
dividends declared by the Board of Directors and paid during the following quarter. 2019 dividend chart above does not represent any scale. $1.39 $1.11 New quarterly dividend declared of $0.37 per share or $1.48 annualizedMaintaining
2022 DPS growth target Amounts in USD per share Commitment to DPS Growth in 2019 and Beyond +25%
FY 2019 GUIDANCEInitiating 2019E Guidance 2019E Guidance1 820 Range in $
Millions 870 Further Adjusted EBITDA incl. unconsolidated affiliates - Reflects 2019E expectations including full contribution from our Mojave project, for which the off-taker is PG&E. Under the current contract, we expect Mojave’s
contribution to 2019E CAFD to range between $30 million to $35 million. PG&E filed for reorganization under Chapter 11 of the Bankruptcy Code on January 29, 2019, at this point we do not have the certainty that the current contract will
be honored by PG&E due to its current situation. See “Disclaimer – Forward Looking Statements”. (See reconciliation of 2019E Guidance on page 31). CAFD 180 200 -
Appendix
STRATEGIC UPDATEExposure to PG&E Project Off-taker PPA Term
Left Type Institution 31/12/2018 Balance Maturity ~13.5% Mojave Solar LLC PG&E 22 years Non-recourse Loan FFB (U.S. DOE) $739m 2036 2018 Gross CAFD1 Exposure PPA Financing No impact on 2019 CAFD so far: Mojave
dividend usually collected in December every yearNon-recourse finance at the project level Gross CAFD is defined as cash distributions received by Atlantica from its subsidiaries before corporate debt service and corporate general and
administrative expenses.
STRATEGIC UPDATEUpdate on Recently Announced Acquisitions Asset Sector Investment as of
Today Transaction Closed ATN Expansion 1 $12 million Chile TL3 $6 million Melowind $45 million PTS Transport. $0 million ATN Expansion 2 - Expected H1 2019 Tenes $20 million SPA signed Closing subject to
approval by the Algerian Administration 2018 2019 × Full Year × Full Year × Full Year × × × Half Year Expected × Half Year Expected Target CAFD Contribution Closing Acquisitions as Expected
TAIL PERIODSRemaining Project Life after Debt Amortization Contract term2 Project debt
term Year Represents weighted average years remaining as of December 31, 2018, and including the acquisitions of new assets closed as of December 31, 2018. (2) Regulation term in the case of Spain and Chile TL3.(3) Mini-perm structure:
sculpted semiannual debt service payments using an underlying tenor of 15 years but with contractual legal maturity in 2028. (4) Weighted average maturity of the different debt tranches. 3 3 PPAs with predefined prices for >18 years
on average1 Refinancing opportunities could increase CAFD in earlier years Possibility to extend life in most assets (excluding ATN and ATS) Tails in most assets after debt amortization 4 4
FINANCINGPrudent Financing Policy SELF AMORTIZING PROJECT DEBT STRUCTURE 100% Project debt
self-amortizing progressively before the end of the contracted life $384 million project debt reduction in 2018 +90% of interest rates fixed or hedged ~$1.1B planned debt reduction in the next 4 years
LIQUIDITYTotal Cash Position1 Includes short-term financial investments. Exchange rates as of December
31, 2018 (EUR/USD = 1.1467) and December 31, 2017: (EUR/USD = 1.2005).Restricted cash is cash which is restricted generally due to the requirements of the project finance lenders. US $ in millions2 As of Dec. 31,2018 As of Dec.
31,2017 Corporate cash at Atlantica Yield 106.7 148.5 Existing Available Revolver Capacity (including the $85 M increase signed in January 2019) 190.0 71.0 Cash at project companies1 603.7 596.4 -
Restricted3 375.3 338.9 - Other 228.4 257.5
HISTORICAL FINANCIAL REVIEWKey Financials by Quarter Dividends are paid to shareholders in the
quarter after they are declaredRatios presented are the ratios shown on each earnings presentationsIncludes the impact of a one-time partial refinancing of ATN2. Key Financials US $ in thousands (4) Includes compensation from our preferred
equity investment in Brazil ($21.2M in Q3 2016, $6.8M in Q4 2016 and $10.4M in Q1 2017).(5) Excludes Solana debt repayments with proceeds received from Abengoa $52.5M in March 2018 and $42.5M in December 2017. (5) FY
2016 1Q17 2Q17 3Q17 4Q17 FY 2017 1Q18 2Q18 3Q18 4Q18 FY 2018 Revenues 971,797 198,146 285,069 291,964 233,202 1,008,381 225,265 287,848 323,812 206,897 1,043,822 F.A. EBITDA margin
(%) 79.5% 83.3% 79.9% 80.9% 67.5% 78.0% 79.8% 91.5% 82,3% 68.8% 81.5% Further Adj. EBITDA incl. unconsolidated affiliates 772,112 165,049 227,841 236,252 157,433 786,575 179,800
263,458 271,188 144,270 858,717 Atlantica Yield’s pro-rata share of EBITDA from unconsolidated affiliates (8,802) (1,100) (2,064) (2,052) (2,049) (7,265) (1,832) (2,071) (2,183) (2,024) (8,110) Further Adjusted
EBITDA 763,310 163,949 225,777 234,200 155,384 779,310 177,968 261,388 269,005 142,246 850,607 Dividends from unconsolidated affiliates 4,984 - - 2,454 549 3,003 - - 4,432 - 4,432 Non-monetary
items (59,375) (12,025) (10,758) (13,005) 14,906 (20,882) (8,839) (60,629) (14,755) (15,056) (99,279) Interest and income tax
paid (334,057) (26,610) (143,081) (28,976) (150,866) (349,533) (26,760) (133,844) (29,212) (143,721) (333,537) Principal amortization of indebtedness net of new indebtedness at project
level (182,636) (21,522) (54,528) (20,330) (113,362) (209,742) * (17,647) (71,028) (13,025) (127,947) (229,647) Deposits into/withdrawals from debt service
accounts (46,705) 7,557 (8,157) (26,581) (1,205) (28,386) (21,720) 9,122 (24,388) 6,149 (30,837) Change in non-restricted cash at project companies 41,413 (27,293)
66,886 (143,982) 83,397 (20,992) (68,031) 94,448 (92,027) 95,596 29,986 Dividends paid to non-controlling interests (8,952) - (1,801) (2,837) - (4,638) - (6,787) (2,958) - (9,745) Changes in other assets and
liabilities (21,694) (23,184) (39,756) 35,747 49,621 22,428 8,060 (45,963) (54,344) 81,815 (10,433) Asset refinancing 14,893 - - - - - - - - - - Cash Available For Distribution (CAFD) 171,181
60,872 34,582 36,690 38,424 170,568 43,031 46,706 42,728 39,082 171,547 Dividends declared1 70,452 25,054 26,056 29,063 31,067 111,241 32,070 34,074 36,078 37,080 139,302 # of
shares at the end of the period 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 100,217,260 DPS (in $ per share) 0.703
0.250 0.260 0.290 0.310 1.110 0.32 0.34 0.36 0.37 1.39 Project debt 5,330.5 5,410.3 5,474.1 5,579.5 5,475.2 5,475.2 5,533.8 5,218.8 5,214.7 5,091.1 5,091.1 Project cash (472.6)
(487.4) (435.4) (597.0) (520.9) (520.9) (604.5) (504.9) (609.6) (524.8) (524.8) Net project debt 4,857.9 4,922.9 5,038.7 4,982.5 4,954.3 4,954.3 4,929.3 4,713.9 4,605.1 4,566.3 4,566.3 Corporate
debt 668.2 667.9 684.6 700.9 643.1 643.1 657.3 639.0 641.8 684.1 684.1 Corporate cash (122.2) (102.0) (178.9) (197.1) (148.5) (148.5) (151.4) (152.3) (135.1) (106.7) (106.7) Net corporate
debt 546.0 565.9 505.7 503.8 494.6 494.6 505.9 486.8 506.7 577.4 577.4 Total net debt 5,403.8 5,488.8 5,544.4 5,486.3 5,448.9 5,448.9
5,435.2 5,200.6 5,111.8 5,143.6 5,143.6 Net Corporate Debt/CAFD pre corporate interests2 2.7x 2.6x 2.3x 2.3x 2.3x 2.3x 2.3x 2.2x 2.3x 2.7x 2.7x Debt details US $ in millions (3)(4) (4) (5)
FY 2016 1Q17 2Q17 3Q17 4Q17 FY 2017 1Q18 2Q18 3Q18 4Q18 FY 2018 by
Geography NORTH AMERICA 337,061 60,952 109,505 99,580 62,668 332,705 61,781 110,534 122,309 62,553 357,177 SOUTH AMERICA 118,763 28,527 30,161 31,317 30,792 120,797
29,536 30,345 31,928 31,405 123,214 EMEA 515,973 108,667 145,403 161,067 139,742 554,879 133,948 146,969 169,576 112,938 563,431 by Business Sector RENEWABLES 724,326
137,664 225,939 230,872 172,751 767,226 167,225 224,988 259,922 141,422 793,557 EFFICIENT NATURAL GAS 128,046 29,800 29,614 30,240 30,130 119,784 28,387
33,050 33,918 35,444 130,799 TRANSMISSION 95,137 24,165 23,452 23,447 24,032 95,096 23,840 24,063 24,018 24,076 95,998 WATER 24,288 6,517 6,064 7,405 6,289 26,275 5,813
5,747 5,955 5,954 23,468 Total Revenue 971,797 198,146 285,069 291,964 233,202 1,008,381 225,265 287,848 323,813 206,896 1,043,822 FY 2016 1Q17 2Q17 3Q17 4Q17 FY
2017 1Q18 2Q18 3Q18 4Q18 FY 2018 by Geography NORTH AMERICA 284,690 54,753 97,033 91,503 39,039 282,328
60,247 94,411 117,498 36,591 308,748 84.5% 89.8% 88.6% 91.9% 62.3% 84.9% 97.5% 85.4% 96.1% 58.5% 86.4% SOUTH AMERICA1 124,599 33,757 24,858 25,560 24,591 108,766
24,180 25,067 26,987 23,999 100,233 104.9% 118.3% 82.4% 81.6% 79.9% 90.0% 81.9% 82.6% 84.5% 76.4% 81.3% EMEA 362,823 76,539 105,951 119,190 93,801 395,481
95,373 143,979 126,703 83,681 449,736 70.3% 70.0% 72.9% 74.0% 67.1% 71.3% 71.2% 98.0% 74.7% 74.1% 79.8% by Business Sector RENEWABLES 538,427
102,625 176,638 183,344 106,586 569,193 131,434 213,952 220,529 98,514 664,429 74.3% 74.5% 78.2% 79.4% 61.7% 74.2% 78.6% 95.1% 84.8% 69.7% 83.7% EFFICIENT NATURAL GAS 106,492
26,716 26,126 27,128 26,170 106,140 23,330 23,652 24,742 22,134 93,858 83.2% 89.7% 88.2% 89.7% 86.9% 88.6% 82.2% 71,.6% 72.9% 62.4% 71.8% TRANSMISSION1 104,795 30,459 19,373 18,817 19,046
87,695 19,837 20,463 20,148 18,014 78,463 110.2% 126.0% 82.6% 80.3% 79.2% 92.2% 83.2% 85.0% 83.9% 74.8% 81.7% WATER 22,398 5,249 5.705 6,964 5,629 23,547
5,199 5,392 5,769 5,608 21,967 92.2% 80.5% 94.0% 94.0% 89.5% 89.6% 89.4% 93.8% 96.9% 94.2% 93.6% Total Further Adj. EBITDA incl. unconsolidated affiliates1 772,112 165,049 227,842 236,253 157,431
786,575 179,800 263,458 271,188 144,270 858,717 79.5% 83.3% 79.9% 80.9% 67.5% 78.0% 79.8% 91.5% 84.2% 69.7% 82.3% Revenue Further Adj. EBITDA incl. unconsolidated affiliates HISTORICAL FINANCIAL REVIEWSegment
Financials by Quarter US $ in thousands Further Adjusted EBITDA includes our share in EBITDA of unconsolidated affiliates. Additionally, it includes the dividend from our preferred equity investment in Brazil or
its compensation $21.2M in Q3 2016, $6.8M in Q4 2016 and $10.4M in Q1 2017.
1Q16 2Q16 3Q16 4Q16 FY 2016 1Q17 2Q17 3Q17 4Q17 FY 2017 1Q18 2Q18 3Q18 4Q18 FY
2018 RENEWABLES2 (GWh) 514 974 1,098 501 3,087 460 1,100 1,017 590 3,167 507 939 1,109 504 3,058 (GWh) 529 621 649 617 2,416 591 580 615 585 2,372 547 554 613 603 2,318 (electric
availability %) 87.5% 102.5% 103.5% 103.3% 99.1% 99.8% 99.8% 101.6% 100.9% 100.5% 97.9% 99.3% 101.3% 100.9% 99.8% TRANSMISSION (availability
%) 99.9% 99.9% 99.9% 100.0% 100.0% 94.4% 98.8% 99.2% 99.2% 97.9% 100.0% 99.9% 100.0% 99.8% 99.9% WATER (availability
%) 101.5% 102.7% 102.9% 100.2% 101.8% 102.3% 101.9% 102.6% 100.4% 101.8% 99.1% 102.6% 103.7% 102.5% 102.0% 1Q16 2Q16 3Q16 4Q16 FY 2016 1Q17 2Q17 3Q17 4Q17 FY 2017 1Q18 2Q18 3Q18 4Q18 FY
2018 RENEWABLES (MW) 1,441 1,441 1,442 1,442 1,442 1,442 1,442 1,442 1,442 1,442 1,446 1,446 1,446 1,496 1,496 EFF. NATURAL GAS (electric MW) 300 300 300 300 300
300 300 300 300 300 300 300 300 300 300 TRANSMISSION (Miles) 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,099 1,152 1,152 WATER (Mft3/day) 10.5 10.5 10.5 10.5
10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 10.5 Capacity in operation1(at the end of the period) Production / Availability HISTORICAL FINANCIAL REVIEWKey Performance Indicators 4 5 6 Represents
total installed capacity in assets owned at the end of the period, regardless of our percentage of ownership in each of the assets.Includes curtailment in wind assets for which we receive compensation.Efficient Natural Gas production and
availability were impacted by a scheduled major maintenance in February 2016, which occurs periodically.Electric availability refers to operational MW over contracted MW with PEMEX.Availability refers to actual availability adjusted as per
contract.Availability refers to actual availability divided by contracted availability. EFFICIENT NATURAL GAS3
1Q16 2Q16 3Q16 4Q16 FY 2016 1Q17 2Q17 3Q17 4Q17 FY 2017 1Q18 2Q18 3Q18 4Q18 FY
2018 US 17.3% 36.4% 33.5% 16.0% 25.8% 18.1% 41.9% 29.5% 18.2% 27.0% 18.8% 39.9% 38.9% 15.0% 28.2%
Spain 9.5% 27.0% 35.4% 9.9% 20.4% 10.0% 31.0% 33.4% 12.6% 21.8% 8.8% 20.8% 30.6% 7.3% 16.9%
Kaxu 42.2% 25.8% 33.2% 34.3% 33.9% 15.9% 20.9% 21.4% 41.1% 24.9% 36.9% 27.6% 29.9% 50.0% 36.0% WIND2
Uruguay 31.6% 32.2% 35.9% 34.9% 33.7% 27.8% 36.1% 46.1% 37.7% 37.0% 31.2% 34.5% 42.3% 40.7% 37.2% SOLAR Historical Capacity Factors1 HISTORICAL FINANCIAL REVIEWCapacity Factors Capacity factor ratio represents
actual electrical energy output over a given period of time to the maximum possible electrical energy output assuming continuous operation at full nameplate capacity over that period. Historical Capacity Factors are calculated from the date
of entry into operation or the acquisition of each asset. Some capacity factors are not indicative of a full period of operations.Includes curtailment production in wind assets for which we receive compensation. It does not include Melowind,
which was acquired on December 13, 2018.
CORPORATE DEBT DETAILSCorporate Debt as of December 31, 2018 Exchange rates as of December 31, 2018:
(EUR/USD = 1.1467).Amounts include principal amounts outstanding and interests to be paid in the short term. US $ in millions1 Maturity Amounts2 2019 Notes 2019 257.3 Credit Facilities (2021 Revolving
CF) 2021 107.6 (Other facilities) 2019 11.6 Note Issuance Facility in Euros (Note 1) 2022 102.9 (Note 2) 2023 102.3 (Note 3) 2024 102.4 Total 684.1
SIZEABLE AND DIVERSIFIED ASSET PORTFOLIOPortfolio Breakdown Based on Estimated
CAFD1 CURRENCY2 SECTOR GEOGRAPHY Based on CAFD estimates for the 2019-2023 period, including the acquisitions of new assets announced (ATN Expansion 1, ATN Expansion 2, Chile TL3, PTS, Tenes and Melowind). Final purchase agreements for
some of which have been not been signed yet as of today. Some of the acquisitions have not closed and may not be completed within the expected period of time, if ever. See “Disclaimer – Forward Looking Statements”.Including the effect of
currency swap agreements. of long term interest rate in projects is fixed or hedged2 ~ 90% 90 Denominatedin USD % > 68% Renewable14% Efficient Natural Gas14% Transmission & Transpor. 4% Water 36% North America41%
Europe12% South America11% RoW
AT A GLANCESizeable and Diversified Asset Portfolio As of December 2018
ASSET TYPE STAKE LOCATION GROSSCAPACITY OFFTAKER RATING 1 YEARS INCONTRACT LEFT CURRENCY RENEWABLE ENERGY Solana 100%2 USA (Arizona) 280 MW APS A-/A2/A- 25 USD Mojave 100% USA (California) 280
MW PG&E D/WR/D 21 USD Solaben 2/3 70% Spain 2x50 MW Kingdom of Spain A-/Baa1/A- 19/18 EUR 4 Solacor 1/2 87% Spain 2x50 MW Kingdom of Spain A-/Baa1/A- 18/18 EUR 4 PS 10/20 100% Spain 31 MW Kingdom of
Spain A-/Baa1/A- 13/15 EUR 4 Helioenergy 1/2 100% Spain 2x50 MW Kingdom of Spain A-/Baa1/A- 18/18 EUR 4 Helios 1/2 100% Spain 2x50 MW Kingdom of Spain A-/Baa1/A- 19/19 EUR 4 Solnova 1/3/4 100% Spain 3x50
MW Kingdom of Spain A-/Baa1/A- 16/16/17 EUR 4 Solaben 1/6 100% Spain 2x50 MW Kingdom of Spain A-/Baa1/A- 20/20 EUR 4 Seville PV 80% Spain 1 MW Kingdom of Spain A-/Baa1/A- 17 EUR Kaxu 51% South Africa 100
MW Eskom BB/Baa3/BB-3 16 ZAR Palmatir 100% Uruguay 50 MW UTE BBB/Baa2/BBB-3 15 USD Cadonal 100% Uruguay 50 MW UTE BBB/Baa2/BBB-3 16 USD Melowind 100% Uruguay 50
MW UTE BBB/Baa2/BBB-3 16 USD Mini-Hydro 100% Peru 4 MW Peru BBB+/A3/BBB+ 14 USD EFFICIENT NATURAL GAS ACT 100% Mexico 300 MW Pemex BBB+/Baa3/BBB- 14 USD 5 ELECTRICAL TRANSMISSION ATN 100% Peru 362
miles Peru BBB+/A3/BBB+ 22 USD 5 ATS 100% Peru 569 miles Peru BBB+/A3/BBB+ 25 USD 5 ATN 2 100% Peru 81 miles Minera Las Bambas Not rated 14 USD 5 Quadra 1&2 100% Chile 81 miles Sierra Gorda Not
rated 16/16 USD 5 Palmucho 100% Chile 6 miles Enel Generacion Chile BBB+/Baa1/BBB+ 19 USD 5 Chile TL3 100% Chile 50 miles CNE BBB+/Baa1/BBB+ Regulated USD 5 WATER Skikda 34% Algeria 3.5 Mft3/day Sonatrach
& ADE Not rated 15 USD 5 Honaine 26% Algeria 7 Mft3/day Sonatrach & ADE Not rated 19 USD 5 Reflects the counterparty’s issuer credit ratings issued by S&P, Moody’s and Fitch, respectively, as of October 31,
2018.Liberty Interactive Corporation holds $300M in Class A membership interests in exchange for a share of the dividends and the taxable loss generated by Solana.For Kaxu it refers to the credit rating of the Republic of South Africa, and
for Palmatir and Cadonal it refers to the credit rating of Uruguay, as UTE is unrated.Gross cash in Euros dollarized through currency hedges.USD denominated but payable in local currency.
NON-GAAP FINANCIAL INFORMATIONReconciliation of Non-GAAP Measures Our management believes Further
Adjusted EBITDA including unconsolidated affiliates and CAFD is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business
performance across companies and across periods. Further Adjusted 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. Our management believes cash available for distribution is a relevant
supplemental measure of the Company’s ability to earn and distribute cash returns to investors and that cash available for distribution is useful to investors in evaluating our operating performance because securities analysts and other
interested parties use such calculations as a measure of our ability to make quarterly distributions. In addition, CAFD is used by our management team for determining future acquisitions and managing our growth. Further Adjusted EBITDA and
CAFD are widely used by other companies in the same industry. Our management uses Further Adjusted EBITDA and CAFD as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to
readily view operating trends, as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations, and in communications with our board of directors, shareholders, creditors, analysts
and investors concerning our financial performance.We present 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 and liquidity. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation
or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-GAAP financial measures and ratios are not measurements of our performance or liquidity under IFRS as issued by the IASB and should not
be considered as alternatives to operating profit or profit for the period 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. Some of the limitations of these non-GAAP measures are:they do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; they do
not reflect changes in, or cash requirements for, our working capital needs;they may not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments, on our debts;although
depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often need to be replaced in the future and Further Adjusted EBITDA and CAFD do not reflect any cash requirements that would be required for
such replacements;some of the exceptional items that we eliminate in calculating Further Adjusted EBITDA reflect cash payments that were made, or will be made in the future; andthe fact that other companies in our industry may calculate
Further Adjusted EBITDA and CAFD differently than we do, which limits their usefulness as comparative measures.
RECONCILIATIONReconciliation of Cash Available For Distribution and Further Adjusted EBITDA to
Profit/(loss) for the period attributable to the Company (in thousands of U.S. dollars) For the three-month period ended December 31, For the twelve-month period ended December
31, 2018 2017 2018 2017 Profit/(loss) for the period attributable to the Company $ (78,916) $ (154,386) $ 41,596 $ (111,804) Profit attributable to non-controlling
interest 3,845 4,447 13,673 6,917 Income tax (16,409) 94,507 42,659 119,837 Share of loss/(profit) of associates carried under the equity method (541) (1,651) (5,231) (5,351) Financial
expense, net 115,369 137,937 395,213 448,367 Operating profit $ 23,348 $ 80,854 $ 487,910 $ 457,967 Depreciation, amortization, and impairment charges 118,898 74,530 362,697 310,960
Dividends from exchangeable preferred equity investment in ACBH - - - 10,383 Further Adjusted EBITDA $ 142,246 $ 155,384 $ 850,607 $ 779,310 Atlantica Yield’s pro-rata share of EBITDA from unconsolidated
affiliates 2,024 2,049 8,110 7,265 Further Adjusted EBITDA including unconsolidated affiliates1 $ 144,270 $ 157,433 $ 858,717 $ 786,575 Atlantica Yield’s pro-rata share of EBITDA from unconsolidated
affiliates (2,024) (2,049) (8,110) (7,265) Dividends from equity method investments - 549 4,432 3,003 Non-monetary items (15,056) 14,906 (99,279) (20,882) Interest and income tax
paid (143,721) (150,866) (333,537) (349,533) Principal amortization of indebtedness (127,947) (113,362) (229,647) (209,742) Deposits into/ withdrawals from restricted
accounts 6,149 (1,205) (30,837) (28,386) Change in non-restricted cash at project level 95,596 83,397 29,986 (20,992) Dividends paid to non-controlling interests - - (9,745) (4,638) Changes in
other assets and liabilities 81,815 49,621 (10,433) 22,428 Cash Available For Distribution2 $ 39,082 $ 38,424 $ 171,547 $ 170,568 Further Adjusted EBITDA including unconsolidated affiliates includes our share in
EBITDA of unconsolidated affiliates.CAFD for the twelve-month period ended December 31, 2017 includes $10.4 million of ACBH dividend compensation.
RECONCILIATIONReconciliation of Further Adjusted EBITDA including unconsolidated affiliates to Net Cash
Provided by Operating Activities (in thousands of U.S. dollars) For the three-month period ended December 31, For the twelve-month period ended December 31, 2018 2017 2018 2017 Net cash
provided by operating activities $ 55,375 $ 58,333 $ 393,708 $ 385,623 Net interest and income tax paid 143,721 150,867 333,537 349,533 Variations in working capital
(71,341) (38,706) 25,679 8,797 Other non-cash adjustments and other 14,491 (15,110) 97,683 35,357 Further Adjusted EBITDA $ 142,246 $ 155,384 $ 850,607 $ 779,310 Atlantica Yield’s pro-rata
share of EBITDA from unconsolidated affiliates 2,024 2,049 8,110 7,265 Further Adjusted EBITDA including unconsolidated affiliates1 $ 144,270 $ 157,433 $ 858,717 $ 786,575 Further Adjusted EBITDA including
unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates.
RECONCILIATIONReconciliation of Further Adjusted EBITDA Margin including unconsolidated affiliates to
Operating Profit Margin (in thousands of U.S. dollars) For the three-month period ended December 31, For the twelve-month period ended December
31, 2018 2017 2018 2017 Revenue 206,897 233,202 1,043,822 1,008,381 Profit/(loss) for the period attributable to the Company $ (78,916) $ (154,386) $ 41,596
$ (111,804) Profit attributable to non-controlling interest 3,845 4,447 13,673 6,917 Income tax (16,409) 94,507 42,659 119,837 Share of loss/(profit) of associates carried under the equity
method (541) (1,651) (5,231) (5,351) Financial expense, net 115,369 137,937 395,213 448,367 Operating profit $ 23,348 $ 80,854 $ 487,910 $ 457,967 Operating profit
margin 11.3% 34.7% 46.7% 45.4% Depreciation, amortization, and impairment charges 57.5% 31.9% 34.8% 30.8% Dividends from exchangeable preferred equity investment in ACBH - - - 1.0% Further Adjusted
EBITDA margin 68.8% 66.6% 81.5% 77.3% Atlantica Yield’s pro-rata share of EBITDA from unconsolidated affiliates 0.9% 0.9% 0.8% 0.7% Further Adjusted EBITDA Margin including unconsolidated
affiliates1 69.7% 67.5% 82.3% 78.0% Further Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates.
RECONCILIATIONReconciliation of 2019 Guidance for Further Adjusted EBITDA including unconsolidated
affiliates to CAFD Further Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. (in millions of U.S. dollars) Guidance 2019E Further Adjusted EBITDA including
unconsolidated affiliates1 820 - 870 Atlantica Yield’s pro-rata share of EBITDA from unconsolidated affiliates (7) Dividends from unconsolidated affiliates 0 – 5 Non-monetary items (30) – (40) Interest and income tax
paid (310) – (320) Changes in other assets and liabilities and change in available cash at project level (43) – (48) Principal amortization of indebtedness (250) – (260) Cash Available For Distribution 180 – 200
Great West House, GW1, 17th Floor,Great West RoadBrentford TW8 9DFLondon (United Kingdom)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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ATLANTICA YIELD PLC
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/s/ Santiago Seage
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Name:
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Santiago Seage
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Title:
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Chief Executive Officer
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Date: February 28, 2019
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