Financial Data and Key Metrics Changes - Total passenger traffic grew by over 7% year over year, exceeding 9% when excluding the discontinued Natal concession [5][6] - Revenues increased by 6% year over year, and nearly 12% on an ex IAS 29 basis [6][19] - Adjusted EBITDA reached $156 million, up 4% excluding IAS 29, with a margin of 38.2% [7][24] - Total revenues ex IFRIC 12 increased by 6.4% year on year or 11.5% on an ex IAS 29 basis [19] - Total costs and expenses excluding IFRIC 12 rose by 17.7% year over year [22] Business Line Data and Key Metrics Changes - Aeronautical revenues increased by 6.8% year over year, or 12.7% when excluding IAS 29, driven by strong performance in Argentina [20] - Commercial revenues grew by 6.1% year over year, primarily from parking facilities, VIP lounges, and duty-free stores [21] - Cargo volumes were up 9% year over year, with strong growth in Uruguay and Argentina [17][18] Market Data and Key Metrics Changes - In Argentina, passenger traffic rose over 12%, with international traffic increasing by 21% year over year [10][11] - Italy saw traffic growth of over 10%, with international traffic accounting for roughly three-quarters of total volume [12] - Brazil experienced mid-single-digit traffic growth year over year, with international traffic up 28% [13] - In Uruguay, total traffic increased in low single digits, benefiting from new international routes [14] Company Strategy and Development Direction - The company is focused on pursuing both organic and inorganic growth opportunities to expand its airport portfolio [26][30] - Ongoing negotiations with the Argentine government regarding the revision of the AA2000 concession agreement [30] - Expansion plans in Italy are progressing, with a positive environmental review for the Florence Master Plan [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of passenger demand, particularly in Argentina and Italy [28][44] - The company anticipates continued positive traffic trends, supported by new operations and strong demand [30][44] - Management remains committed to maintaining strict cost discipline, especially in Argentina [22][51] Other Important Information - The company closed the quarter with a liquidity position of $524 million and a net leverage ratio of 1.1 times [25][26] - Recent awards for operational excellence were received by Carrasco International Airport and Brasilia Airport, highlighting the company's commitment to quality service [31][32][33] Q&A Session Summary Question: Information on the Montenegro proposal and traffic outlook for Argentina - Management provided details on the Montenegro proposal, highlighting its potential for tourism growth and targeting mid-teens IRR [39][41] - Traffic in Argentina is expected to remain strong, with several new routes starting operations [43][44] Question: Cost control initiatives and potential impacts of government changes in Argentina - Management discussed ongoing cost control measures and the expectation of normalized cost growth in line with inflation [51][52] - The impact of government changes on the concession process is uncertain, but management does not foresee significant delays [55][56] Question: Update on expansions in Italy - Management indicated that the environmental impact approval process is progressing well, with updates expected by the third quarter [67][68]

Financial Data and Key Metrics Changes - Total passenger traffic grew by over 7% year over year, exceeding 9% when excluding the discontinued Natal concession [5][6] - Revenues increased by 6% year over year, and nearly 12% on an ex IAS 29 basis [6][21] - Adjusted EBITDA reached $156 million, up 4% excluding IAS 29, with a margin of 38.2% [7][25] - Total revenues ex IFRIC 12 increased by 6.4% year on year or 11.5% on an ex IAS 29 basis [21] - Total costs and expenses excluding IFRIC 12 rose by 17.7% year over year [24] Business Line Data and Key Metrics Changes - Domestic traffic increased by 4% year over year, or nearly 8% when excluding Natal [9] - International traffic rose by close to 13% year over year, with Argentina and Italy leading the growth [10] - Aeronautical revenues were up 6.8% year over year, or 12.7% when excluding IAS 29, driven by strong performance in Argentina [22] - Commercial revenues increased by 6.1% year over year, primarily from parking facilities and duty-free stores [23] Market Data and Key Metrics Changes - In Argentina, passenger traffic rose over 12%, with domestic traffic growing by 9% and international traffic increasing by 21% [10][12] - Italy saw traffic up over 10%, with domestic traffic growing over 17% year over year [13] - Brazil experienced mid-single-digit growth in traffic year over year, with international traffic growing by 28% [14] - In Uruguay, total traffic was up low single digits, benefiting from new international routes [15] Company Strategy and Development Direction - The company is focused on pursuing both organic and inorganic growth opportunities to expand its airport portfolio [29][33] - Ongoing negotiations with the Argentine government regarding the revision of the AA2000 concession agreement [32] - Expansion plans in Italy are progressing, with a positive environmental review for the Florence Master Plan [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of passenger demand, particularly in Argentina and Italy, with expectations for continued positive traffic trends [31][45] - The company anticipates a strong summer season in both Italy and Armenia [34] - Management highlighted the importance of maintaining strict cost discipline, especially in Argentina [24][52] Other Important Information - The company closed the quarter with a total liquidity position of $524 million and a net leverage ratio of 1.1 times [28][29] - Cargo volumes increased by 9% year over year, with a new cargo business model implemented in Argentina [18][20] Q&A Session Summary Question: Information on the Montenegro proposal and traffic outlook for Argentina - Management provided details on the Montenegro proposal, highlighting its potential for tourism growth and targeting mid-teens IRR [42][43] - Traffic in Argentina is expected to remain strong, supported by new routes and healthy demand [45] Question: Cost control initiatives and potential impacts from government changes in Argentina - Management discussed ongoing cost control measures and expected normalized cost increases, emphasizing a focus on maintaining costs despite inflation [52] - The impact of government changes on the concession process is uncertain, but management does not foresee significant delays [58] Question: Update on expansions in Italy - Management indicated that the environmental impact approval process is progressing well, with expectations for updates by the third quarter [74]

FIRST QUARTER 2025 EARNINGS CALL PRESENTATION MAY 23, 2025 → OPENING REMARKS → KEY HIGHLIGHTS → TRAFFIC & CARGO TRENDS → FINANCIAL TRENDS → CLOSING REMARKS → Q&A → APPENDIX CORPORACION AMERICA AIRPORTS CORPORACIÓN AMÉRICA AIRPORTS 2 Disclaimer and Forward-Looking Statement Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include all statements that a ...

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the company's financial performance and position for the interim period, including income, balance sheet, equity changes, and cash flows [Glossary of Terms](index=2&type=section&id=Glossary%20of%20terms) This section provides definitions for key terms and acronyms used throughout the financial report, including currency symbols, regulatory bodies, and company-specific terms, to ensure clarity and consistent understanding - The glossary defines key terms such as **'$' for Argentine peso**, **'U$S' for US dollar**, and **'La Sociedad' for Aeropuertos Argentina 2000 S.A.**, along with various regulatory and accounting acronyms[3](index=3&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Aeropuertos Argentina 2000 S.A. (AA2000) is primarily engaged in the exploitation, administration, and operation of airports. The company's controlling entity is Corporación América S.A.U., holding 45.90% of common stock and total votes - The principal activity of Aeropuertos Argentina 2000 S.A. is the exploitation, administration, and operation of airports[5](index=5&type=chunk) - Corporación América S.A.U. is the controlling company, with a **45.90% participation** in common stock and total votes[7](index=7&type=chunk) Capital Breakdown (Issued Common Shares, in $) | Class | Subscribed ($) | Paid-in ($) | | :--- | :--- | :--- | | 79,105,489 Class "A" Shares | 79,105,489 | 79,105,489 | | 79,105,489 Class "B" Shares | 79,105,489 | 79,105,489 | | 61,526,492 Class "C" Shares | 61,526,492 | 61,526,492 | | 38,779,829 Class "D" Shares | 38,779,829 | 38,779,829 | | **Total** | **258,517,299** | **258,517,299** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the three-month period ended March 31, 2025, the company reported a significant decrease in net income to $42,919 million from $233,062 million in the prior year, primarily driven by reduced finance income and higher income tax expenses. Operating profit also declined Consolidated Statement of Comprehensive Income (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Sales income | 264,586 | 291,906 | | Construction income | 21,695 | 44,222 | | Cost of service | (169,294) | (158,795) | | Construction costs | (21,612) | (44,141) | | **Income for gross profit for the period** | **95,375** | **133,192** | | Distribution and selling expenses | (15,640) | (16,802) | | Administrative expenses | (14,134) | (11,601) | | Other income and expenses, net | 2,300 | 5,153 | | **Operating profit for the period** | **67,901** | **109,942** | | Finance Income | (1,401) | (100,510) | | Finance Costs | 7,205 | 392,213 | | RECPAM | (2,331) | (21,669) | | **Income before income tax** | **71,374** | **379,976** | | Income tax | (28,455) | (146,914) | | **Net Income for the period** | **42,919** | **233,062** | | Income per share basic and diluted | 165.7104 | 899.8533 | - Net Income for the period decreased significantly from **$233,062 million** in Q1 2024 to **$42,919 million** in Q1 2025[9](index=9&type=chunk) - Operating profit for the period decreased from **$109,942 million** in Q1 2024 to **$67,901 million** in Q1 2025[9](index=9&type=chunk) [Consolidated Statements of Financial Position](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2025, total assets slightly decreased to $2,428,948 million from $2,475,943 million at December 31, 2024. Total shareholders' equity increased to $1,303,574 million, while total liabilities decreased to $1,125,374 million, indicating an improved equity position relative to liabilities Consolidated Statements of Financial Position (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 2,183,498 | 2,209,703 | | Total Current Assets | 245,450 | 266,240 | | **Total Assets** | **2,428,948** | **2,475,943** | | Total Shareholders' Equity | 1,303,574 | 1,260,582 | | Total Non-Current Liabilities | 923,452 | 937,279 | | Total Current Liabilities | 201,922 | 278,082 | | **Total Liabilities** | **1,125,374** | **1,215,361** | | **Total Shareholder's Equity and Liabilities** | **2,428,948** | **2,475,943** | - Total Assets decreased by approximately **$47 billion** from December 31, 2024, to March 31, 2025[12](index=12&type=chunk) - Total Shareholders' Equity increased by approximately **$43 billion**, while Total Liabilities decreased by approximately **$90 billion** over the same period[12](index=12&type=chunk) [Consolidated Statements of Changes in Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) The consolidated equity attributable to majority shareholders increased to $1,303,346 million as of March 31, 2025, from $1,260,302 million at January 1, 2025, primarily due to the net income for the period of $42,971 million Consolidated Statements of Changes in Equity (Millions of $) | Item | Balance at 01.01.25 | Compensation plan | Net Income for the period | Balance at 03.31.2025 | | :--- | :--- | :--- | :--- | :--- | | Common Shares | 259 | - | - | 259 | | Share Premium | 137 | - | - | 137 | | Adjustment of capital | 148,089 | - | - | 148,089 | | Legal Reserve | 29,655 | - | - | 29,655 | | Facultative Reserve | 764,080 | - | - | 764,080 | | Other Reserves | 4,547 | 73 | - | 4,620 | | Retained Earnings | 313,535 | - | 42,971 | 356,506 | | **Total Attributable to majority shareholders** | **1,260,302** | **73** | **42,971** | **1,303,346** | | Non-Controlling Interest | 280 | - | (52) | 228 | | **Total Shareholders' Equity** | **1,260,582** | **73** | **42,919** | **1,303,574** | - Net Income attributable to shareholders for the period was **$42,971 million**[15](index=15&type=chunk) - Total Shareholders' Equity increased from **$1,260,582 million** at January 1, 2025, to **$1,303,574 million** at March 31, 2025[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operating activities significantly increased to $93,341 million in Q1 2025 from $17,161 million in Q1 2024. However, net cash flow from financing activities resulted in a larger outflow of $78,530 million, primarily due to dividend payments and financial debt repayments, leading to a net increase in cash and cash equivalents of $16,938 million Consolidated Statements of Cash Flow (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Net cash Flow generated by operating activities | 93,341 | 17,161 | | Net Cash Flow generated by (applied to) investing activities | 2,127 | (6,828) | | Net Cash Flow applied to financing activities | (78,530) | (49,718) | | **Net Increase (decrease) in cash and cash equivalents** | **16,938** | **(39,385)** | | Cash and cash equivalents at the beginning of the period | 114,294 | 172,512 | | Cash and cash equivalents at the end of the period | 97,537 | 134,692 | - Operating cash flow saw a substantial increase from **$17,161 million** in Q1 2024 to **$93,341 million** in Q1 2025[17](index=17&type=chunk) - Financing activities resulted in a net cash outflow of **$78,530 million** in Q1 2025, including **$27,537 million** in dividend payments[17](index=17&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements, covering accounting policies, specific financial items, and risk management [NOTE 1 – Company Activities](index=10&type=section&id=NOTE%201%20%E2%80%93%20COMPANY%20ACTIVITIES) Aeropuertos Argentina 2000 S.A. (AA2000) holds concession rights for 35 airports in Argentina, with the concession period extended to February 13, 2038. The company is engaged in ongoing negotiations and legal processes with ORSNA regarding the review of the Financial Projection of Income and Expenses (PFIE) and the restoration of the concession's financial-economic equation, with procedural deadlines suspended until June 30, 2025 - AA2000 operates **35 airports** in Argentina under a concession agreement, extended until **February 13, 2038**[20](index=20&type=chunk)[23](index=23&type=chunk) - The company is in a judicial process with ORSNA regarding the review of the Financial Projection of Income and Expenses (PFIE) for 2019-2023, with procedural deadlines suspended until **June 30, 2025**[25](index=25&type=chunk)[26](index=26&type=chunk)[30](index=30&type=chunk) - The National State retains the right to rescue the Concession as of **February 13, 2018**, subject to compensation payment to the Company[31](index=31&type=chunk) [NOTE 2 - Basis for Consolidation](index=12&type=section&id=NOTE%202%20-%20BASIS%20FOR%20CONSOLIDATION) The condensed consolidated interim financial statements include the assets, liabilities, and results of AA2000 and its subsidiaries, such as Servicios y Tecnología Aeroportuarios S.A. (99.30% owned) and Texelrio S.A. (70% owned). Accounting policies of subsidiaries are adjusted for consistency with the Group's policies Key Subsidiaries and Participation | Subsidiaries | Participation in capital and votes | | :--- | :--- | | Servicios y Tecnología Aeroportuarios S.A. | 99.30% | | Cargo & Logistics S.A. | 98.63% | | Paoletti América S.A. | 50.00% | | Texelrío S.A. | 70.00% | | Villalonga Furlong S.A | 1.46% | - The Company directly and indirectly owns **98.53%** of Cargo & Logistics S.A.[32](index=32&type=chunk) - The Company is in charge of the administration of Paoletti America S.A. and appoints the Chairman of the Board of Directors, who has a double vote in case of a tie[36](index=36&type=chunk) [NOTE 3 – Accounting Policies](index=13&type=section&id=NOTE%203%20%E2%80%93%20ACCOUNTING%20POLICIES) The financial statements are presented in millions of Argentine pesos, prepared in accordance with IFRS and IAS 34, and restated for hyperinflation as Argentina has been classified as a hyperinflationary economy since July 1, 2018. There were no significant changes in accounting policies or estimates from the prior year - The financial statements are prepared in accordance with **IFRS and IAS 34**, and are restated for hyperinflation as Argentina is considered a hyperinflationary economy since **July 1, 2018**[39](index=39&type=chunk)[41](index=41&type=chunk)[57](index=57&type=chunk) - The Company is managed as a single business unit, with all airports considered as a whole, operating under a 'cross-subsidies' model[45](index=45&type=chunk)[46](index=46&type=chunk) - As of March 31, 2025, the cumulative inflation rate for the three-month period was **7.4%**, and year-on-year inflation was **54.2%**[60](index=60&type=chunk) [7) Foreign currency conversion and financial information in hyperinflationary economies](index=15&type=section&id=7)%20Foreign%20currency%20conversion%20and%20financial%20information%20in%20hyperinflationary%20economies) The financial statements are adjusted for inflation using a general price index, as required by IAS 29 for hyperinflationary economies. Monetary items are not restated, while non-monetary assets and liabilities are updated using adjustment coefficients. Foreign exchange gains and losses are recognized in the comprehensive income statement - Argentina has been classified as a hyperinflationary economy under **IAS 29** since **July 1, 2018**, requiring financial statements to be restated to reflect inflation[57](index=57&type=chunk) - Non-monetary assets and liabilities are updated by adjustment coefficients, while monetary assets and liabilities are presented in terms of current purchasing power[62](index=62&type=chunk)[63](index=63&type=chunk)[68](index=68&type=chunk) - The loss or gain from the net monetary position is included in the comprehensive net result as **RECPAM** (Result from Exposure to Changes in the Purchasing Power of the Currency)[62](index=62&type=chunk)[68](index=68&type=chunk) [9) Income tax and Deferred tax - Tax revalued - Tax inflation adjustment](index=18&type=section&id=9)%20Income%20tax%20and%20Deferred%20tax%20-%20Tax%20revalued%20-%20Tax%20inflation%20adjustment) The income tax for the three-month period ended March 31, 2025, was a loss of $28,455 million. This includes an adjustment for inflation of $36,363 million to determine the taxable net result, as the CPI variation for the 36-month period ending fiscal year 2025 is expected to exceed 100% - Income tax for the three-month period ended March 31, 2025, was a loss of **$28,455 million**[72](index=72&type=chunk) - A tax inflation adjustment of **$36,363 million** was incorporated into the tax result due to the expected CPI variation exceeding **100% over 36 months**[73](index=73&type=chunk) [NOTE 4 - Sales Income](index=18&type=section&id=NOTE%204%20-%20SALES%20INCOME) Total sales income for the three-month period ended March 31, 2025, decreased to $264,586 million from $291,906 million in the prior year. Aeronautical income, primarily from air station use rates, constituted the majority of sales but also saw a decline Sales Income (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Air station use rate | 146,589 | 157,603 | | Landing fee | 11,283 | 14,886 | | Parking fee | 4,197 | 5,754 | | **Total aeronautical income** | **162,069** | **178,243** | | Total non-aeronautical income | 102,517 | 113,663 | | **Total** | **264,586** | **291,906** | - Total sales income decreased by **$27,320 million (approx. 9.4%)** year-over-year[74](index=74&type=chunk) - Aeronautical income decreased by **$16,174 million**, with air station use rates being the largest component[74](index=74&type=chunk) [NOTE 5 - Costs of Sales, Administrative, Distribution, and Selling Expenses](index=19&type=section&id=NOTE%205%20-%20COSTS%20OF%20SALES,%20ADMINISTRATIVE,%20DISTRIBUTION,%20AND%20SELLING%20EXPENSES) Total cost of sales increased to $169,294 million in Q1 2025, driven by higher airport services and maintenance and amortization of intangible assets. Distribution and marketing expenses decreased, while administrative expenses increased, mainly due to higher salaries and social charges - Cost of sales increased by **$10,499 million (6.6%)** year-over-year[76](index=76&type=chunk)[167](index=167&type=chunk) - Distribution and marketing expenses decreased by **$1,162 million (6.9%)** year-over-year[77](index=77&type=chunk)[168](index=168&type=chunk) - Administrative expenses increased by **$2,533 million (21.8%)** year-over-year[79](index=79&type=chunk)[169](index=169&type=chunk) [5.1. Sales Cost](index=19&type=section&id=5.1.%20Sales%20Cost) Sales cost for the three-month period ended March 31, 2025, was $169,294 million, an increase from $158,795 million in the prior year. Key drivers were increases in airport services and maintenance, and amortization of intangible assets, partially offset by a decrease in salaries and social charges Sales Cost (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Specific allocation of income | 39,029 | 43,118 | | Airport services and maintenance | 36,884 | 27,506 | | Amortization of intangible assets | 36,452 | 26,546 | | Salaries and social charges | 42,846 | 47,336 | | **Total** | **169,294** | **158,795** | - Airport services and maintenance costs increased by **$9,378 million (34.1%)** year-over-year[76](index=76&type=chunk) - Amortization of intangible assets increased by **$9,906 million (37.3%)** year-over-year[76](index=76&type=chunk) [5.2. Distribution and marketing expenses](index=19&type=section&id=5.2.%20Distribution%20and%20marketing%20expenses) Distribution and marketing expenses decreased to $15,640 million in Q1 2025 from $16,802 million in Q1 2024. This reduction was mainly due to lower taxes, despite an increase in provision for bad debts Distribution and Marketing Expenses (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Taxes | 12,750 | 15,020 | | Provision for bad debts | 1,199 | 1,022 | | Salaries and social charges | 874 | 118 | | **Total** | **15,640** | **16,802** | - Taxes within distribution and marketing expenses decreased by **$2,270 million (15.1%)** year-over-year[77](index=77&type=chunk) - Salaries and social charges in this category increased significantly from **$118 million** to **$874 million**[77](index=77&type=chunk) [5.3. Administrative expenses](index=20&type=section&id=5.3.%20Administrative%20expenses) Administrative expenses rose to $14,134 million in Q1 2025 from $11,601 million in Q1 2024. The primary drivers for this increase were higher salaries and social charges, amortization of intangible assets, and insurance costs Administrative Expenses (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Salaries and social charges | 7,691 | 6,393 | | Amortization of intangible assets | 990 | 230 | | Office expenses | 1,715 | 1,416 | | Insurance | 613 | 127 | | **Total** | **14,134** | **11,601** | - Salaries and social charges in administrative expenses increased by **$1,298 million (20.3%)** year-over-year[79](index=79&type=chunk) - Amortization of intangible assets in administrative expenses increased significantly from **$230 million** to **$990 million**[79](index=79&type=chunk) [NOTE 6 - Other Items of the Comprehensive Income Statement](index=20&type=section&id=NOTE%206%20-%20OTHER%20ITEMS%20OF%20THE%20COMPREHENSIVE%20INCOME%20STATEMENT) The company experienced a significant shift in financial results, moving from a large finance income in Q1 2024 to a net finance cost in Q1 2025, primarily due to foreign exchange differences. Other net income and expenses also decreased - Net financial income and costs totaled a profit of **$5,804 million** in Q1 2025, a substantial decrease from **$291,703 million** in Q1 2024[170](index=170&type=chunk) - The variation in financial results is mainly attributed to the result arising from exposure to foreign currency[171](index=171&type=chunk) - Other net income and expenses decreased from a gain of **$5,153 million** in Q1 2024 to **$2,300 million** in Q1 2025[80](index=80&type=chunk)[172](index=172&type=chunk) [6.1 Other Net Incomes and Expenses](index=20&type=section&id=6.1%20Other%20net%20incomes%20and%20expenses) Other net incomes and expenses decreased to a gain of $2,300 million in Q1 2025 from $5,153 million in Q1 2024, mainly due to a reduction in 'Trust for Strengthening' income and an increase in 'Other' expenses Other Net Incomes and Expenses (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Trust for Strengthening | 6,505 | 7,186 | | Other | (4,205) | (2,033) | | **Total** | **2,300** | **5,153** | [6.2. Finance Income](index=20&type=section&id=6.2.%20Finance%20Income) Finance income shifted from a negative $100,510 million in Q1 2024 to a negative $1,401 million in Q1 2025. This significant change was primarily driven by a reduction in negative foreign exchange differences Finance Income (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Interest | 5,963 | 15,187 | | Foreign Exchange differences | (7,364) | (115,697) | | **Total** | **(1,401)** | **(100,510)** | [6.3 Financial Costs](index=21&type=section&id=6.3%20Financial%20Costs) Financial costs decreased substantially to $7,205 million in Q1 2025 from $392,213 million in Q1 2024. This was mainly due to a significant reduction in positive foreign exchange differences, despite a decrease in interest costs Financial Costs (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Interest | (13,279) | (19,051) | | Foreign Exchange differences | 20,488 | 411,264 | | **Total** | **7,205** | **392,213** | [6.4 Income Tax](index=21&type=section&id=6.4%20Income%20Tax) Income tax expense decreased to $28,455 million in Q1 2025 from $146,914 million in Q1 2024, primarily driven by a significant reduction in deferred tax liabilities Income Tax (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Current | 4 | (23) | | Deferred | (28,459) | (146,891) | | **Total** | **(28,455)** | **(146,914)** | [NOTE 7 – Intangible Assets](index=21&type=section&id=NOTE%207%20%E2%80%93%20INTANGIBLE%20ASSETS) Net intangible assets slightly decreased to $2,083,570 million as of March 31, 2025, from $2,093,480 million at March 31, 2024. This was due to higher amortization during the period, partially offset by new acquisitions Intangible Assets (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Original values: Balance at March 31 | 3,537,591 | 3,439,345 | | Accumulated Amortization: Balance at March 31 | (1,454,021) | (1,345,865) | | **Net balance at March 31** | **2,083,570** | **2,093,480** | - Acquisitions of intangible assets for the period were **$21,695 million** in Q1 2025, compared to **$44,222 million** in Q1 2024[85](index=85&type=chunk) - Accumulated amortization increased by **$37,546 million** in Q1 2025[85](index=85&type=chunk) [NOTE 8 - Financial Debts](index=22&type=section&id=NOTE%208%20-%20FINANCIAL%20DEBTS) Total net financial debt decreased to $630,568 million as of March 31, 2025, from $690,070 million at the beginning of the period. This reduction was driven by significant financial debt payments and foreign exchange differences, despite accrued interest. The company fully canceled Class VI Bonds during the period - Total net financial debt decreased by **$59,502 million** from January 1, 2025, to March 31, 2025[87](index=87&type=chunk) - Financial debts paid amounted to **$50,339 million** in Q1 2025[87](index=87&type=chunk) - The Company fully canceled Class VI Bonds as of **March 31, 2025**[95](index=95&type=chunk) [8.1 Changes in Financial Debt](index=22&type=section&id=8.1%20Changes%20in%20Financial%20Debt) The initial balance of financial debt was $690,070 million, which decreased to $630,568 million by March 31, 2025. This change was influenced by financial debt payments ($50,339 million), negative foreign exchange differences ($21,908 million), and accrued interest ($12,560 million) Changes in Financial Debt (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Initial Balance | 690,070 | 1,237,966 | | New financial debts | 102 | - | | Financial debts paid | (50,339) | (48,674) | | Accrued interest | 12,560 | 18,593 | | Foreign Exchange differences | (21,908) | (397,406) | | Inflation adjustment | 83 | 11,651 | | **Total Net Balance at March 31** | **630,568** | **822,130** | [8.2 Breakdown of Financial Debt](index=22&type=section&id=8.2%20Breakdown%20of%20Financial%20Debt) As of March 31, 2025, non-current financial debts totaled $559,957 million, primarily consisting of Negotiable Obligations. Current financial debts amounted to $70,611 million, also largely from Negotiable Obligations. The fair value of financial debt was $666,984 million Breakdown of Financial Debt (Millions of $) | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Non-current Financial Debts: Negotiable Obligations | 560,706 | 601,092 | | Non-current Financial Debts: Cost of issuance of NO | (749) | (892) | | **Total Non-current Financial Debts** | **559,957** | **600,200** | | Current Financial Debts: Bank borrowings | 11,075 | 11,343 | | Current Financial Debts: Negotiable Obligations | 59,849 | 78,880 | | Current Financial Debts: Cost of issuance of NO | (313) | (353) | | **Total Current Financial Debts** | **70,611** | **89,870** | | **Overall Total** | **630,568** | **690,070** | - The fair value of financial debt as of March 31, 2025, was **$666,984 million**, classified as **Level 2** in the fair value hierarchy[88](index=88&type=chunk) [8.3 Negotiable Obligations](index=23&type=section&id=8.3%20Negotiable%20Obligations) The company has various classes of Negotiable Obligations (NOs), primarily denominated in US dollars, with maturities ranging from 2025 to 2032 and interest rates up to 9.500%. As of March 31, 2025, Class VI Bonds were fully canceled, and the company holds Class IX and X Bonds totaling US$17 million Negotiable Obligations (Capital in U$S Millions) | Class | Maturity | Interest | Currency | Capital at 03.31.2025 | | :--- | :--- | :--- | :--- | :--- | | Guaranteed with Maturity in 2027 | 02.2027 | 6.875% | U$S | 10.0 | | Class I Series 2020 | 02.2027 | 6.875% | U$S | 36.1 | | Class I Series 2021 - Additional | 08.2031 | 8.500% | U$S | 272.9 | | Class IV | 11.2028 | 9.500% | U$S | 59.3 | | Class V | 02.2032 | 5.500% | U$S | 138.0 | | Class VI | 02.2025 | 2.000% | U$S | - | | Class IX | 08.2026 | 0.000% | U$S | 22.9 | | Class X | 07.2025 | 0.000% | U$S | 17.9 | | Class XI | 12.2026 | 5.500% | U$S | 28.8 | - The company complies with financial covenants for its international Negotiable Obligations as of **March 31, 2025**[94](index=94&type=chunk) - Class VI Bonds were fully canceled, and the company holds Class IX and Class X Bonds totaling **US$17 million**[95](index=95&type=chunk)[96](index=96&type=chunk) [8.4 Bank Debt](index=24&type=section&id=8.4%20Bank%20debt) Bank debt includes a loan from ICBC - Dubai Branch of U$S 10.0 million maturing in October 2025, with an interest rate of SOFR+7.875%. Additionally, there is a short-term financing for imports of EUR 0.1 million maturing in April 2025 Bank Debt (Capital in Original Currency) | Institution | Start | Maturity | N.A.R. | Currency | Initial Capital | Capital at 03.31.2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | ICBC - Dubái Branch | 07.2022 | 10.2025 | SOFR+ 7.875% | U$S | 10.0 | 10.0 | | Financing Imports | 03.2025 | 04.2025 | 11.000% | EUR | 0.1 | 0.1 | [NOTE 9 - Composition of Certain Items of the Consolidated Statements of Financial Position](index=24&type=section&id=NOTE%209%20-%20COMPOSITION%20OF%20CERTAIN%20ITEMS%20OF%20THE%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) This note details the composition of various balance sheet items. Other receivables, both current and non-current, saw minor changes. Trade receivables decreased, while investments showed mixed trends with an increase in current investments and a decrease in non-current. Cash and cash equivalents decreased, and accounts payable also saw a reduction - Non-current other receivables increased to **$50,025 million** from **$47,203 million**, mainly due to the 'Trust for Strengthening'[99](index=99&type=chunk) - Current other receivables decreased to **$22,498 million** from **$25,609 million**, driven by lower tax credits and prepaid insurance[100](index=100&type=chunk) - Trade receivables, net, decreased to **$97,199 million** from **$102,265 million**[102](index=102&type=chunk) [9.2 Trade Receivables](index=25&type=section&id=9.2%20Trade%20receivables) Net trade receivables decreased to $97,199 million as of March 31, 2025, from $102,265 million at December 31, 2024. This was primarily due to a decrease in gross trade receivables and related parties balances, partially offset by a slight reduction in the provision for bad debts Trade Receivables (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Trade receivables | 102,271 | 107,194 | | Related parties | 2,023 | 2,443 | | Checks-postdated checks | 2,903 | 2,786 | | Subtotal sales credits | 107,197 | 112,423 | | Provision for bad debts | (9,998) | (10,158) | | **Total** | **97,199** | **102,265** | [9.3 Investments](index=25&type=section&id=9.3%20Investments) Total non-current investments decreased to $44,582 million, mainly due to a reduction in negotiable obligations. Conversely, current investments increased to $27,971 million, driven by higher negotiable obligations Investments (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Non-current investments: Negotiable obligations | 40,551 | 47,546 | | Non-current investments: Negotiable obligations of related companies | 2,463 | 3,812 | | Non-current investments: Other financial assets | 1,568 | 2,064 | | **Total Non-current investments** | **44,582** | **53,422** | | Current investments: Negotiable Obligations | 23,059 | 15,452 | | Current investments: Negotiable Obligations of related companies | 1,232 | - | | Current investments: Other financial assets | 3,680 | 8,446 | | **Total Current investments** | **27,971** | **23,898** | [9.4 Cash and Cash Equivalents](index=26&type=section&id=9.4%20Cash%20and%20cash%20equivalents) Cash and cash equivalents decreased to $97,537 million as of March 31, 2025, from $114,294 million at December 31, 2024. This was primarily due to a reduction in bank balances, partially offset by an increase in term deposits Cash and Cash Equivalents (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Cash and funds in custody | 897 | 179 | | Banks | 56,821 | 88,737 | | Checks not yet deposited | 707 | 517 | | Term deposits and others | 39,112 | 24,861 | | **Total** | **97,537** | **114,294** | [9.5 Accounts Payable and Other](index=26&type=section&id=9.5%20Accounts%20payable%20and%20other) Total current accounts payable and other liabilities decreased to $97,344 million from $123,886 million. This reduction was mainly driven by lower balances with suppliers and foreign suppliers, as well as reduced salaries and social security liabilities Current Accounts Payable and Other (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Suppliers | 40,394 | 57,829 | | Foreign suppliers | 6,671 | 9,494 | | Related Parties | 4,732 | 4,869 | | Salaries and social security liabilities | 37,673 | 43,813 | | Other fiscal liabilities | 7,874 | 7,881 | | **Total** | **97,344** | **123,886** | [NOTE 10 - Balances and Transactions with Related Parties](index=26&type=section&id=NOTE%2010%20-%20BALANCES%20AND%20TRANSACTIONS%20WITH%20RELATED%20PARTIES) Balances with related parties show a mix of receivables and payables. Other receivables from related companies increased, while trade receivables decreased. Investments in related company negotiable obligations increased for current and decreased for non-current. Significant transactions include payments for office rental, airport maintenance, and IT outsourcing, as well as commercial income from Duty Paid S.A. and compensation to key management Balances with Related Parties (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Other receivables | 3,223 | 2,777 | | Trade receivables | 2,023 | 2,443 | | Investments (non-current) | 2,463 | 3,812 | | Investments (current) | 1,232 | - | | Accounts payable and other | 4,732 | 4,869 | | Provisions and other charges (Dividends to be paid) | - | 14,575 | - The Company allocated **$979 million** for office rental and maintenance with Proden S.A. and **$1,921 million** for airport maintenance with Grass Master S.A.U. in Q1 2025[113](index=113&type=chunk) - Short-term compensation to key management was **$661 million** for the three-month period ended March 31, 2025[117](index=117&type=chunk) [NOTE 11 – Provisions and Other Charges](index=29&type=section&id=NOTE%2011%20%E2%80%93%20PROVISIONS%20AND%20OTHER%20CHARGES) Total provisions and other charges decreased significantly to $25,252 million as of March 31, 2025, from $56,700 million at January 1, 2025. This reduction was primarily due to the payment of dividends and negative inflation adjustments, despite increases in deferred income and guarantees received Provisions and Other Charges (Millions of $) | Item | At 01.01.25 | Increases / (Recovery) | Decreases | Inflation Adjustment | Accruals | Exchange differences | At 03.31.25 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Litigations | 3,686 | 191 | (397) | (257) | 11 | 89 | 3,323 | | Deferred Income | 14,708 | 1,072 | - | (416) | (4,538) | 328 | 11,154 | | Guarantees Received | 2,281 | (39) | 248 | (172) | - | 369 | 2,687 | | Upfront fees from concessionaires | 5,596 | 699 | - | - | (791) | - | 5,504 | | Dividends to be paid | 27,873 | - | (27,537) | (1,380) | - | 1,044 | - | | Others | 2,556 | 124 | (47) | (173) | 27 | 97 | 2,584 | | **Total** | **56,700** | **2,047** | **(27,733)** | **(2,398)** | **(5,291)** | **1,927** | **25,252** | - Dividends to be paid decreased from **$27,873 million** to zero due to payments of **$27,537 million**[122](index=122&type=chunk) - Deferred income increased by **$1,072 million** but saw significant accruals and inflation adjustments[122](index=122&type=chunk) [NOTE 12 - Foreign Currency Assets and Liabilities](index=30&type=section&id=NOTE%2012%20-%20FOREIGN%20CURRENCY%20ASSETS%20AND%20LIABILITIES) The company holds a net liability position in foreign currency, totaling $453,081 million as of March 31, 2025, a decrease from $521,721 million at December 31, 2024. This is primarily driven by significant non-current financial debts denominated in US dollars Foreign Currency Assets and Liabilities (Millions of $) | Item | 03.31.2025 | 12.31.2024 | | :--- | :--- | :--- | | Total current assets | 168,061 | 188,135 | | Total Non-Current Assets | 43,493 | 50,184 | | **Total assets** | **211,554** | **238,319** | | Total current liabilities | 99,370 | 152,526 | | Total non-current liabilities | 565,265 | 607,514 | | **Total liabilities** | **664,635** | **760,040** | | **Net liability position** | **453,081** | **521,721** | - The net liability position in foreign currency decreased by **$68,640 million**[124](index=124&type=chunk) - Non-current financial debts in US dollars represent the largest component of foreign currency liabilities, totaling **$560,834 million**[124](index=124&type=chunk) [NOTE 13 – Other Restricted Assets](index=30&type=section&id=NOTE%2013%20%E2%80%93%20OTHER%20RESTRICTED%20ASSETS) As of March 31, 2025, the company held $6,361 million in restricted cash and cash equivalents, specifically allocated in bank accounts for the settlement of Negotiable Obligations Series 2021 and Class IV - Restricted cash and cash equivalents for Negotiable Obligations Series 2021 and Class IV amounted to **$6,361 million** as of March 31, 2025[125](index=125&type=chunk) [NOTE 14 - Capital Stock](index=31&type=section&id=NOTE%2014%20-%20CAPITAL%20STOCK) As of March 31, 2025, the company's capital stock consists of 258,517,299 ordinary shares, each with a par value of $1 and one vote per share. The total subscribed and integrated capital is $258,517,299 Capital Stock (in $) | Item | Par Value ($) | | :--- | :--- | | Integrated and subscribed | 258,517,299 | | Registered in the Public Registry | 258,517,299 | - The capital stock is composed of **258,517,299 ordinary shares**, each with a par value of **$1** and one vote[126](index=126&type=chunk) [NOTE 15 - Resolution of General Meetings](index=31&type=section&id=NOTE%2015%20-%20RESOLUTION%20OF%20THE%20ORDINARY%20GENERAL%20MEETINGS,%20SPECIAL%20MEETINGS%20OF%20CLASS%20A,%20B,%20C%20AND%20D%20AND%20SPECIAL%20MEETINGS%20OF%20PREFERRED%20SHARES%20OF%20AEROPUERTOS%20ARGENTINA%202000%20S.A.%20OF%20APRIL%2024,%202024%20AND%20APRIL%2029,%202025) General meetings in 2024 and 2025 resolved to restate profits for inflation and allocate them to legal and discretionary reserves for future infrastructure plans and dividend payments. Specifically, the 2023 profit was restated to $14,262,583,889, and a discretionary reserve of $737,844,377,142 was partially released for US$80,000,000 in dividends. The 2024 profit was restated to $316,986,187,842 and allocated to a discretionary reserve - The profit for fiscal year ended December 31, 2023, was restated to **$14,262,583,889** and allocated to legal and discretionary reserves[127](index=127&type=chunk) - A discretionary reserve of **$737,844,377,142** was partially released to distribute **US$80,000,000** in dividends to shareholders[127](index=127&type=chunk) - The positive result for fiscal year ended December 31, 2024, was restated to **$316,986,187,842** and allocated to a discretionary reserve for future infrastructure plans and potential dividends[130](index=130&type=chunk) [NOTE 16 – Earnings Per Share](index=32&type=section&id=NOTE%2016%20%E2%80%93%20EARNINGS%20PER%20SHARE) Earnings per share significantly decreased to $165.7104 in Q1 2025 from $899.8533 in Q1 2024, reflecting the lower net income for the period Earnings Per Share | Item | 03.31.2025 | 03.31.2024 | | :--- | :--- | :--- | | Income for the period (in millions of $) | 42,919 | 233,062 | | Amount of ordinary shares (millions) | 259 | 259 | | **Earnings per shares ($ per share)** | **165.7104** | **899.8533** | - Earnings per share decreased by approximately **81.6%** year-over-year[131](index=131&type=chunk) [NOTE 17 - Financial Risk Management](index=32&type=section&id=NOTE%2017%20-%20FINANCIAL%20RISK%20MANAGEMENT) The company is exposed to market risk (exchange rate, interest rate, price), credit risk, and liquidity risk. No significant modifications were made to the disclosure of these risks compared to the December 31, 2024, annual financial statements. Recent BCRA measures in April 2025 eased access to the MULC for foreign currency, which the company is monitoring for impact - The company is exposed to **market risk** (exchange rate, interest rate, price), **credit risk**, and **liquidity risk**[132](index=132&type=chunk) - No significant modifications to financial risk disclosures were made compared to the December 31, 2024, annual financial statements[134](index=134&type=chunk) - BCRA implemented measures in **April 2025** to ease access to the **MULC** for foreign currency, which the company is monitoring for potential impacts[135](index=135&type=chunk)[136](index=136&type=chunk) [NOTA 18 - Events Subsequent to the End of the Period](index=32&type=section&id=NOTA%2018%20-%20EVENTS%20SUBSEQUENT%20TO%20THE%20END%20OF%20THE%20PERIOD) No events or transactions have occurred since March 31, 2025, that would significantly affect the company's financial and equity situation - No significant subsequent events or transactions have occurred that would materially affect the company's financial and equity situation[137](index=137&type=chunk) [Summary Report (CNV Rules)](index=33&type=section&id=Summary%20Report%20(CNV%20Rules)) This section provides a summary report prepared under CNV rules, offering an overview of the company's financial position, operational results, cash flow, and key performance indicators [Presentation Base](index=33&type=section&id=Presentation%20base) This Summary Report is prepared in accordance with Article 4 of Chapter III of Title IV of the NSC Regulations and should be read in conjunction with the Interim Condensed Consolidated Financial Statements. All values are expressed in constant currency as of March 31, 2025, following IAS 29 for hyperinflationary economies - The report is prepared according to **NSC Regulations** and **IAS 29**, with values expressed in constant currency as of **March 31, 2025**[139](index=139&type=chunk)[140](index=140&type=chunk) [1. General Considerations](index=33&type=section&id=1.%20General%20considerations) The company's revenues are highly seasonal, peaking during summer and winter holidays. Various infrastructure projects are underway at key airports like Ezeiza, Jorge Newbery, Rio Hondo, San Rafael, Iguazú, San Juan, Resistencia, and Formosa, while the New Passenger Terminal and Parking project at La Rioja Airport has been terminated and suspended - Company revenues are highly influenced by the seasonality of air traffic, with higher income during summer and winter holiday periods[143](index=143&type=chunk) - Ongoing works include beaconing and electrical substations at Ezeiza, renovation of inspection points at Jorge Newbery, and terminal expansions at Rio Hondo, San Rafael, Iguazú, San Juan, Resistencia, and Formosa[145](index=145&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - Works on the New Passenger Terminal and Parking at La Rioja Airport have been terminated due to supplier non-compliance and the new tender suspended[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [2. Equity Structure](index=36&type=section&id=2.%20Equity%20structure) The company's equity structure shows an increase in Net Equity to $1,303,574 million as of March 31, 2025, from $1,285,316 million in the prior year. Total assets slightly decreased, while total liabilities saw a more significant reduction, improving the overall equity position Comparative Consolidated Equity Structure (Millions of $) | Item | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Current Asset | 245,450 | 277,665 | 289,516 | 610,338 | 240,451 | | Non-current Assets | 2,183,498 | 2,213,591 | 2,077,627 | 1,995,620 | 2,058,149 | | **Total Assets** | **2,428,948** | **2,491,256** | **2,367,143** | **2,605,958** | **2,298,600** | | Current liabilities | 201,922 | 212,756 | 256,013 | 545,978 | 513,816 | | Non- Current Liabilities | 923,452 | 993,184 | 1,041,152 | 1,263,888 | 858,494 | | **Total Liabilities** | **1,125,374** | **1,205,940** | **1,297,165** | **1,809,866** | **1,372,310** | | Net equity attributable to majority shareholders | 1,303,346 | 1,285,270 | 1,070,269 | 796,073 | 926,271 | | Non-controlling interest | 228 | 46 | (291) | 19 | 19 | | **Net Equity** | **1,303,574** | **1,285,316** | **1,069,978** | **796,092** | **926,290** | - Net Equity increased by **$18,258 million** from March 31, 2024, to March 31, 2025[162](index=162&type=chunk) - Total Liabilities decreased by **$80,566 million** from March 31, 2024, to March 31, 2025[162](index=162&type=chunk) [3. Results Structure](index=37&type=section&id=3.%20Results%20structure) The company's results structure for Q1 2025 shows a significant decline in net income to $42,919 million from $233,062 million in Q1 2024. This was primarily due to a sharp decrease in financial income and costs, and a higher income tax expense, despite a positive operating profit Comparative Consolidated Statements of Comprehensive Income (Millions of $) | Item | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 95,375 | 133,192 | 104,559 | 68,416 | 15,931 | | Administrative and distribution and marketing expenses | (29,774) | (28,403) | (24,025) | (16,969) | (10,403) | | Other net income and expenses | 2,300 | 5,153 | 5,444 | 4,104 | (11,543) | | **Operating profit** | **67,901** | **109,942** | **85,978** | **55,551** | **(6,015)** | | Income and financial costs | 5,804 | 291,703 | 8,597 | 11,446 | 3,432 | | Result by exposure to changes in the acquisition power of currency | (2,331) | (21,669) | (4,571) | 16,764 | (8,076) | | **Income before tax** | **71,374** | **379,976** | **90,004** | **83,761** | **(10,659)** | | Income tax | (28,455) | (146,914) | (42,867) | (4,153) | (5,178) | | **Result of the period** | **42,919** | **233,062** | **47,137** | **79,608** | **(15,837)** | - Operating profit decreased by **$42,041 million (38.2%)** year-over-year[164](index=164&type=chunk) - Income and financial costs decreased dramatically from **$291,703 million** in Q1 2024 to **$5,804 million** in Q1 2025[164](index=164&type=chunk) [4. Cash Flow Structure](index=37&type=section&id=4.%20Cash%20flow%20structure) The cash flow structure for Q1 2025 shows a significant increase in cash generated by operating activities to $93,341 million, up from $17,161 million in Q1 2024. However, cash flow used in financing activities also increased, leading to a net positive cash flow for the period of $16,938 million, a reversal from the prior year's net decrease Comparative Consolidated Statements of Cash Flow (Millions of $) | Item | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash Flow generated by operating activities | 93,341 | 17,161 | 28,211 | 24,504 | 16,551 | | Cash Flow generated by / (used in) investing activities | 2,127 | (6,828) | (122) | (130,835) | 3,813 | | Cash Flow (used in) /generated by financing activities | (78,530) | (49,718) | (33,132) | 238,960 | (16,029) | | **Net Cash Flow generated by / (used in) the period** | **16,938** | **(39,385)** | **(5,043)** | **132,629** | **4,335** | - Cash flow from operating activities increased by **$76,180 million** year-over-year[165](index=165&type=chunk) - Net cash flow from financing activities resulted in a larger outflow of **$78,530 million** compared to **$49,718 million** in the prior year[165](index=165&type=chunk) [5. Analysis of Operations for Q1 2025 and Q1 2024](index=38&type=section&id=5.%20Analysis%20of%20operations%20for%20the%20three-month%20periods%20ended%20at%20March%2031,%202025%20and%202024) This section provides a detailed analysis of the company's operational results, liquidity, and capital resources for the three-month periods ended March 31, 2025, and 2024. It highlights changes in revenues, costs, and financial performance, as well as capitalization and debt ratios [5.1 Results of Operations](index=38&type=section&id=5.1%20Results%20of%20operations) Total revenues decreased by 9.4% year-over-year, with both aeronautical and non-aeronautical income declining. Cost of sales increased, while distribution and marketing expenses decreased, and administrative expenses rose. Net financial income and costs saw a significant shift, and other net income and expenses also declined Revenue Composition (Millions of $) | Revenues | 03.31.2025 | % Revenues | 03.31.2024 | % Revenues | | :--- | :--- | :--- | :--- | :--- | | Aeronautical revenues | 162,069 | 61.25% | 178,243 | 61.06% | | Non-aeronautical revenues | 102,517 | 38.75% | 113,663 | 38.94% | | **Total** | **264,586** | **100.00%** | **291,906** | **100.00%** | - Total revenues decreased by **$27,320 million (9.4%)** year-over-year[166](index=166&type=chunk) - Net financial income and costs shifted from a **$291,703 million** revenue in Q1 2024 to a **$5,804 million** profit in Q1 2025, mainly due to foreign currency exposure[170](index=170&type=chunk)[171](index=171&type=chunk) [5.2 Liquidity and Capital Resources](index=39&type=section&id=5.2%20Liquidity%20and%20Capital%20Resources) The Group's total capitalization decreased to $1,934,142 million as of March 31, 2025, from $2,107,446 million at December 31, 2024. Debt as a percentage of total capitalization improved, decreasing to 32.60% from 39.01% in the prior year - Total capitalization decreased by **$173,304 million** from December 31, 2024, to March 31, 2025[173](index=173&type=chunk) - Debt as a percentage of total capitalization decreased from **39.01%** to **32.60%** year-over-year[174](index=174&type=chunk) [6. Index](index=40&type=section&id=6.%20Index) The company's liquidity ratio improved to 1.287 in Q1 2025 from 1.014 in Q1 2023, while solvency also increased to 1.176 from 0.789 over the same period. Cost effectiveness, however, decreased to 0.033 from 0.199 in Q1 2024 Key Financial Ratios | Index | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Liquidity | 1.287 | 1.459 | 1.014 | 0.866 | 0.550 | | Solvency | 1.176 | 1.094 | 0.789 | 0.704 | 0.703 | | Immobilization of capital | 0.899 | 0.889 | 0.883 | 0.858 | 0.890 | | Cost effectiveness | 0.033 | 0.199 | 0.045 | 0.090 | (0.017) | - Liquidity ratio decreased from **1.459** in Q1 2024 to **1.287** in Q1 2025[176](index=176&type=chunk) - Solvency ratio increased from **1.094** in Q1 2024 to **1.176** in Q1 2025[176](index=176&type=chunk) [7. Statistical Data](index=40&type=section&id=7.%20Statistical%20data) Passenger traffic increased by 11.8% year-over-year to 11,811 thousand passengers in Q1 2025, with Aeroparque and Ezeiza being the largest contributors. Aircraft movements also increased by 4.7% to 115,319 total movements, with Aeroparque leading the growth Passenger Traffic (Thousands of passengers) | Airport | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Aeroparque | 4,416 | 3,785 | 3,643 | 2,721 | 152 | | Ezeiza | 3,426 | 3,062 | 2,746 | 1,484 | 1,525 | | Córdoba | 801 | 744 | 643 | 595 | 141 | | Bariloche | 659 | 616 | 589 | 533 | 271 | | Mendoza | 642 | 562 | 527 | 359 | 138 | | Iguazú | 470 | 345 | 352 | 229 | 58 | | Salta | 358 | 317 | 334 | 272 | 99 | | Tucumán | 194 | 179 | 205 | 152 | 63 | | C. Rivadavia | 141 | 128 | 122 | 80 | 33 | | Jujuy | 127 | 146 | 146 | 99 | 36 | | **Total** | **11,234** | **9,884** | **9,307** | **6,524** | **2,516** | | **Overall total** | **11,811** | **10,562** | **9,960** | **7,060** | **2,705** | | **Variation** | **11.8%** | **6.0%** | **41.1%** | **161.0%** | **-68.9%** | Aircraft Movement (Number of movements) | Airport | 03.31.25 | 03.31.24 | 03.31.23 | 03.31.22 | 03.31.21 | | :--- | :--- | :--- | :--- | :--- | :--- | | Aeroparque | 35,250 | 31,188 | 28,409 | 22,113 | 1,646 | | Ezeiza | 20,912 | 19,834 | 15,465 | 10,737 | 14,803 | | San Fernando | 12,706 | 13,299 | 4,712 | 13,589 | 10,803 | | Córdoba | 6,930 | 6,713 | 5,935 | 4,286 | 2,018 | | Mendoza | 5,702 | 5,179 | 4,865 | 3,334 | 1,678 | | Bariloche | 5,202 | 4,590 | 4,528 | 4,052 | 2,649 | | Salta | 4,224 | 4,077 | 2,517 | 2,465 | 1,228 | | Iguazú | 3,484 | 2,607 | 2,598 | 1,802 | 1,184 | | Mar del Plata | 2,138 | 2,558 | 2,420 | 1,904 | 1,184 | | San Rafael | 2,125 | 2,678 | 496 | 1,214 | 1,139 | | **Total** | **98,673** | **92,723** | **71,945** | **65,496** | **38,332** | | **Overall Total** | **115,319** | **110,140** | **81,985** | **79,623** | **47,908** | | **Variation** | **4.7%** | **34.3%** | **3.0%** | **66.2%** | **-46.8%** | - International passenger traffic increased by **20%** year-over-year in Q1 2025, surpassing 2019 levels by **11%**. Domestic traffic grew by **8%** year-over-year[180](index=180&type=chunk) [Outlook for 2025](index=42&type=section&id=Outlook%20for%202025) The company anticipates continued growth in both international and domestic passenger traffic, expecting 2025 to be a record year. Commercial revenues are performing solidly, with improvements in parking and Duty Free segments. Operating costs remain affected by the macroeconomic context, prompting ongoing efficiency measures. The contractual investment plan, focusing on airport modernization, continues as scheduled - Passenger traffic is expected to continue growth trends, making **2025 a record year**, though the domestic segment may be sensitive to macroeconomic context[182](index=182&type=chunk) - Commercial revenues show solid performance, with notable improvement in parking and favorable performance in the Duty Free segment[183](index=183&type=chunk) - Operating costs are affected by the macroeconomic context, leading to implemented and monitored control and efficiency measures[184](index=184&type=chunk) - The contractual investment plan, including Phase II works in Buenos Aires Metropolitan Area and provinces, is progressing according to schedule[185](index=185&type=chunk) [Report on Review of Condensed Consolidated Interim Financial Statements](index=43&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Price Waterhouse & Co. S.R.L. conducted a review of the condensed consolidated interim financial statements for Aeropuertos Argentina 2000 S.A. as of March 31, 2025, in accordance with NIER 2410. The review concluded that nothing came to their attention to suggest the statements are not prepared, in all material respects, in accordance with IAS 34. The report also noted that the statements are pending recording in the Inventory and Balance Sheets book - The review was performed by **Price Waterhouse & Co. S.R.L.** in accordance with International Standard for Review Engagements **NIER 2410**[189](index=189&type=chunk) - The Board of Directors is responsible for the preparation and presentation of the financial statements in accordance with **IAS 34**[188](index=188&type=chunk) - The review found no material issues, concluding that the statements are prepared in accordance with **IAS 34**, but noted they are pending recording in the Inventory and Balance Sheets book[190](index=190&type=chunk)[192](index=192&type=chunk) [Surveillance Committee Report](index=45&type=section&id=Surveillance%20Committee%20Report) The Surveillance Committee reviewed the separate condensed interim financial statements of Aeropuertos Argentina 2000 S.A. as of March 31, 2025, in accordance with legal and BYMA regulations. Based on their review and the external auditor's report, they found no observations regarding the statements' consistency with corporate decisions or formal compliance, except for the pending transcription in the 'Inventories and Balance Sheets' book - The Surveillance Committee conducted its review in accordance with **Article 294 Subsection 5º of Act No. 19,550** and **Article 63 Subsection b) of the BYMA Regulations**[194](index=194&type=chunk)[195](index=195&type=chunk) - The Committee considered the limited review report of the external auditor, **Juan Manuel Gallego Tinto of Price Waterhouse & Co. S.R.L.**[196](index=196&type=chunk) - The Committee reported no observations on the financial statements, except for their pending transcription in the 'Inventories and Balance Sheets' book[199](index=199&type=chunk)

Core Insights - The global trade war has negatively impacted many stocks in the past quarter, but a stealth bull market is emerging in certain overseas stocks, particularly in Latin America, which has significantly outperformed in 2025 [1]. Group 1 - Latin American equities have shown strong performance, indicating potential investment opportunities in this region [1]. - The article suggests that despite broader market challenges, specific sectors or regions may still present favorable conditions for investors [1]. Group 2 - The investing group led by Ian offers various features including market analysis, trade alerts, and direct access to insights, which can be beneficial for investors looking for new opportunities [2]. - Ian Bezek, with a decade of experience in Latin America, provides valuable on-the-ground research for investors interested in markets like Mexico, Colombia, and Chile [3].

Corporacion America Airports S.A. (CAAP) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual i ...

[Key Information](index=7&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines critical information, including various risk factors that could impact the company's operations and financial stability [Risk Factors](index=7&type=section&id=D.RISK%20FACTORS) The company identifies a wide range of risks that could materially affect its business, financial condition, and operations, categorized by business, specific concessions, other markets, and common shares [Risks Related to Our Business and Industry](index=9&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) The company's business is subject to significant industry-specific risks, primarily the potential for early termination of its concession agreements, which are its main assets, alongside vulnerabilities to air traffic levels, cybersecurity threats, and emerging market instability - The company's core business relies on concession agreements which can be terminated by governments for public interest reasons or due to breaches, posing a significant risk to business continuity and financial stability[37](index=37&type=chunk)[38](index=38&type=chunk) - Revenue is highly dependent on passenger and cargo traffic, which are vulnerable to factors beyond the company's control, including economic downturns, pandemics, and geopolitical conflicts like the wars in Ukraine and the Middle East[66](index=66&type=chunk)[47](index=47&type=chunk)[51](index=51&type=chunk) - Ezeiza Airport in Argentina is a major revenue source, accounting for **23.7% of consolidated revenue in FY2024**, where any adverse event affecting this airport could materially impact the company's overall financial performance[67](index=67&type=chunk) - The company faces significant cybersecurity risks to its information and communication systems, which are critical for airport operations, where a successful cyberattack could lead to operational disruptions, data loss, and reputational damage[61](index=61&type=chunk)[62](index=62&type=chunk) - A substantial portion of the company's operations are in emerging markets, exposing it to risks such as high inflation, currency devaluation against the U.S. dollar, and political instability[83](index=83&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - The company has a significant concentration of aeronautical customers, with LATAM Group and Aerolíneas Argentinas Group accounting for **14.2% and 14.1% of consolidated aeronautical revenue** respectively in 2024, posing a risk if these customers suspend or interrupt payments[75](index=75&type=chunk)[76](index=76&type=chunk) [Risks Related to Argentina and the AA2000 Concession Agreement](index=23&type=section&id=Risks%20Related%20to%20Argentina%20and%20the%20AA2000%20Concession%20Agreement) Operations in Argentina, which represent a majority of revenue, face substantial risks tied to the AA2000 Concession Agreement and the country's volatile macroeconomic and political environment, including potential government buyout, investment compliance failures, and adverse regulatory changes - The AA2000 Concession Agreement, which accounted for **56.4% of total consolidated revenue in 2024**, can be bought out by the Argentine Government at any time for public interest reasons, which would materially affect revenues and operations[116](index=116&type=chunk) - The extension of the AA2000 concession until 2038 is contingent on fulfilling significant investment commitments, including a Phase 2 commitment of approximately **U.S.$41 million plus VAT annually between 2024 and 2027**, where failure to comply could lead to fines or termination[111](index=111&type=chunk)[115](index=115&type=chunk) - Argentina's macroeconomic instability, characterized by hyperinflation (**117.8% in 2024**) and currency controls, significantly impacts operations, as devaluation of the Argentine peso affects financial results, and exchange controls may restrict the ability to service foreign currency debt and pay dividends[155](index=155&type=chunk)[135](index=135&type=chunk)[139](index=139&type=chunk) - Regulatory authority ORSNA can adjust aeronautical fees and investment plans, where adverse adjustments or failure to restore the concession's economic equilibrium could negatively impact financial results[118](index=118&type=chunk) - Significant political and economic reforms, such as Decree 70/2023, introduce uncertainty, and while aimed at deregulating the economy, legal challenges and political opposition could lead to abrupt regulatory changes affecting the aeronautical sector[121](index=121&type=chunk)[122](index=122&type=chunk)[134](index=134&type=chunk) [Risks Related to Other Principal Operations and Markets](index=32&type=section&id=Risks%20Related%20to%20Our%20Other%20Principal%20Operations%20and%20Other%20Principal%20Markets%20in%20Which%20We%20Operate) The company faces distinct risks in its other key markets, including approval delays in Italy, potential improper payments in Brazil, traffic dependency in Uruguay, political instability in Ecuador, and conflict-related disruptions in Armenia - **Italy:** The approval of the 2035 Florence Airport Master Plan is still pending environmental and administrative procedures, expected to conclude in 2025, where further delays could adversely affect the ability to increase revenues and profits from this airport[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - **Brazil:** The company identified payments of approximately **R$0.8 million** made by its subsidiary ICAB in 2014 that may have been improper, potentially exposing it to fines and reputational damage, with a fine of **R$1.3 million** already imposed and being contested[176](index=176&type=chunk)[177](index=177&type=chunk) - **Brazil:** The Brasilia Airport concession requires a large annual fixed fee, which leads to significant accounting losses due to the accretion of the associated financial liability, resulting in a recognized loss of **U.S.$87.1 million** in 2024[179](index=179&type=chunk) - **Uruguay:** Airport operations, especially at Punta del Este, are heavily dependent on air traffic from Argentina and Brazil, where economic deterioration or adverse travel regulations in these neighboring countries could materially impact business results[186](index=186&type=chunk)[187](index=187&type=chunk) - **Ecuador:** The country faces significant political, economic, and social crises, including a declared state of emergency in January 2024, where this instability could negatively affect airport operations and growth[189](index=189&type=chunk)[190](index=190&type=chunk) - **Armenia:** The ongoing war between Russia and Ukraine continues to disrupt air travel routes and passenger flows, which could negatively affect the operational performance and financial results of the Armenian airports[194](index=194&type=chunk)[195](index=195&type=chunk) [Risks Related to Our Common Shares](index=38&type=section&id=Risks%20Related%20to%20Our%20Common%20Shares) Investors in the company's common shares face several risks, including high price volatility, potential dilution from share-based compensation, market impact from majority shareholder sales, and challenges due to its foreign private issuer status under Luxembourg law - The company's majority shareholder, A.C.I. Airports S.à r.l., holds approximately **80.5% of common shares** and has registration rights to sell a substantial number of these shares, which could cause the market price to drop[199](index=199&type=chunk) - As a "foreign private issuer" under U.S. securities laws, the company is exempt from certain SEC disclosure and procedural requirements, such as proxy solicitations and short-swing profit reporting, resulting in less information being available to investors[208](index=208&type=chunk) - The company is a holding company and relies on dividends from its subsidiaries to meet its financial obligations, where the ability of subsidiaries to distribute funds is restricted by local laws (e.g., Argentine exchange controls), debt covenants, and statutory reserve requirements[211](index=211&type=chunk) - Shareholders may face challenges in protecting their interests as the company is governed by Luxembourg law, which differs from U.S. corporate law, particularly regarding shareholder rights and director responsibilities[212](index=212&type=chunk) - Dividend payments are subject to a **15% Luxembourg withholding tax**, though reductions or exemptions may apply under certain tax treaties or domestic law[220](index=220&type=chunk)[1198](index=1198&type=chunk) [Information on the Company](index=45&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details the company's history, global operations, key customer relationships, and regulatory frameworks for its concessions [History and Development of the Company](index=45&type=section&id=A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) Corporación América Airports S.A. (CAAP) has grown since 1998 to become a leading global private airport operator, expanding its portfolio through acquisitions and new concessions across Latin America, Europe, and Eurasia, securing long-term operational stability - The company began operations in 1998 with the concession for 33 airports in Argentina and has since expanded to operate **52 airports** across Latin America, Europe, and Eurasia[225](index=225&type=chunk)[231](index=231&type=chunk) - Significant concession extensions have been secured in key markets, including Argentina (AA2000 extended to 2038) and Uruguay (Carrasco extended to 2053 and Punta del Este to 2043), ensuring long-term operational stability[226](index=226&type=chunk)[229](index=229&type=chunk) Overview of Airport Concessions | Country | Concession | CAAP Effective Ownership | Number of Airports | Concession Start Date | Concession End Date | Extension Details | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Argentina | AA2000 | 84.8% | 35 | 1998 | 2038 | — | | | ANSA | 77.7% | 1 | 2001 | 2026 | — | | | BBL | 85.0% | 1 | 2008 | 2033 | Extendable for 10 years | | Italy | TA (Pisa & Florence) | 46.7% | 2 | 2003/2006 | 2045/2048 | — | | Brazil | ICAB | 50.9% | 1 | 2012 | 2037 | 5 years, extendable for equilibrium | | Uruguay | Puerta del Sur | 100% | 7 | 2003 | 2053 | — | | | CAISA | 100% | 1 | 1993 | 2043 | — | | Ecuador | TAGSA | 50.0% | 1 | 2004 | 2031 | — | | | ECOGAL | 99.9% | 1 | 2011 | 2026 | — | | Armenia | AIA | 100% | 2 | 2002 | 2032 | Option to renew every 5 years | [Business Overview](index=48&type=section&id=B.BUSINESS%20OVERVIEW) The company operates 52 airports across Latin America, Europe, and Eurasia, managing a diverse portfolio with revenue from aeronautical, commercial, and construction services, governed by varying long-term concession agreements across six country segments - The company operates under three different concession models: single-till (e.g., Argentina, Armenia), dual-till (e.g., Italy), and inflation-based (e.g., Ecuador, Uruguay, Brazil), which dictates how tariffs are regulated and returns are calculated[242](index=242&type=chunk)[244](index=244&type=chunk) - Revenue is categorized into aeronautical (passenger/aircraft fees), commercial (retail, cargo, parking), and construction services (upgrades under IFRIC 12)[234](index=234&type=chunk)[235](index=235&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) Key Consolidated Financial and Operational Metrics (FY2024 vs. FY2023) | Metric | FY2024 | FY2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,843.3 M | $1,400.0 M | +31.7% | | Net Income from Continuing Ops | $307.9 M | $226.5 M | +36.0% | | Adjusted EBITDA | $628.7 M | $677.7 M | -7.2% | | Total Passengers | 79.0 M | 81.1 M | -2.7% | | Total Aircraft Movements | 823,671 | 849,473 | -3.0% | [Our Airports by Country](index=50&type=section&id=Our%20Airports%20by%20Country%20in%20Which%20We%20Operate) The company's operations are segmented by country, with Argentina as the largest segment, alongside key airports in Italy, Brazil, Uruguay, Ecuador, and Armenia, each contributing to the overall portfolio Revenue and Adjusted EBITDA by Segment (FY2024) | Segment | Revenue (in millions of U.S.$) | % of Total Revenue | Adjusted Segment EBITDA (in millions of U.S.$) | % of Total Adj. EBITDA | | :--- | :--- | :--- | :--- | :--- | | Argentina | $1,043.9 | 56.6% | $335.3 | 53.3% | | Italy | $138.8 | 7.5% | $44.3 | 7.0% | | Brazil | $111.1 | 6.0% | $61.5 | 9.8% | | Uruguay | $185.7 | 10.1% | $64.0 | 10.2% | | Armenia | $252.8 | 13.7% | $102.7 | 16.3% | | Ecuador | $110.3 | 6.0% | $33.7 | 5.4% | - In 2024, the Argentina segment served **42.1 million passengers**, Italy **9.0 million**, Brazil **15.5 million**, Uruguay **2.2 million**, Armenia **5.4 million**, and Ecuador **4.7 million**[251](index=251&type=chunk)[258](index=258&type=chunk)[279](index=279&type=chunk)[302](index=302&type=chunk)[314](index=314&type=chunk)[324](index=324&type=chunk) [Main Customers](index=66&type=section&id=Main%20Customers) The company's revenue is concentrated among a few key aeronautical and commercial customers, with LATAM Group and Aerolíneas Argentinas Group as top aeronautical clients and Dufry as the most significant commercial customer Main Aeronautical Customers by Revenue (FY2024) | Customer | Revenue (in millions of U.S.$) | % of Total Aeronautical Revenue | | :--- | :--- | :--- | | LATAM Group | 124.2 | 14.2% | | Aerolíneas Argentinas Group | 123.5 | 14.1% | | Gol Transportes Aéreos | 56.5 | 6.4% | | Copa | 53.5 | 6.1% | | Avianca Group | 37.7 | 4.3% | Main Commercial Customers by Revenue (FY2024) | Customer | Revenue (in millions of U.S.$) | % of Total Commercial Revenue | | :--- | :--- | :--- | | Dufry | 89.3 | 12.1% | | Flyone Armenia | 21.4 | 2.9% | | Aeroflot Group | 14.9 | 2.0% | [Regulatory and Concessions Framework](index=69&type=section&id=Regulatory%20and%20Concessions%20Framework) The company's operations are governed by specific concession agreements and regulatory bodies in each country, with varying models and investment commitments across Argentina, Italy, Brazil, Uruguay, Ecuador, and Armenia - **Argentina (AA2000):** The concession runs until 2038 under a single-till model, requiring a payment of **15% of total revenues** (excluding construction) to the government and mandating a capex program of approximately **U.S.$500 million plus VAT between 2022-2027**[256](index=256&type=chunk)[368](index=368&type=chunk) - **Italy (TA):** Concessions for Florence (exp. 2045) and Pisa (exp. 2048) operate under a dual-till model, with the Florence Airport Master Plan for a new runway and terminal undergoing a lengthy environmental and administrative approval process expected to conclude in 2025[259](index=259&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - **Brazil (ICAB):** The Brasilia concession (exp. 2037) requires a substantial annual fixed payment (**R$180.0 million for 2021-2031**) plus a variable fee based on gross revenues, where the concessionaire can request extraordinary reviews to restore economic equilibrium[292](index=292&type=chunk)[294](index=294&type=chunk) - **Uruguay (PDS):** The Carrasco concession was extended to 2053 and expanded to include six new regional airports, requiring an aggregate investment of **U.S.$67 million between 2022-2028**[586](index=586&type=chunk) - **Armenia (AIA):** The concession (exp. 2032 with renewal options) operates under a single-till model that guarantees an annual Internal Rate of Return (**IRR) of 20%**, with no concession fees payable to the government[325](index=325&type=chunk)[327](index=327&type=chunk)[661](index=661&type=chunk) [Operating and Financial Review and Prospects](index=126&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes the company's financial performance, including revenue, expenses, profitability, liquidity, and capital management [Operating Results](index=150&type=section&id=A.%20OPERATING%20RESULTS) For the year ended December 31, 2024, total revenue increased by 31.7% to U.S.$1,843.3 million, driven primarily by significant revenue growth in Argentina due to inflation and currency devaluation impacts, despite a slight decrease in overall passenger traffic Consolidated Results of Operations (FY2024 vs. FY2023) | (in millions of U.S.$) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total consolidated revenue** | **1,843.3** | **1,400.0** | **31.7%** | | Aeronautical revenue | 876.7 | 644.5 | 36.0% | | Commercial revenue | 738.7 | 603.7 | 22.4% | | Construction service revenue | 223.4 | 144.7 | 54.3% | | **Total Cost of Services** | **(1,237.3)** | **(914.7)** | **35.3%** | | **Operating income** | **447.3** | **540.6** | **(17.3)%** | | **Income for the year** | **307.9** | **226.5** | **36.0%** | - The **31.7% increase in total revenue in 2024** was primarily driven by the Argentina segment, which saw revenue grow by **63.0% to U.S.$1,043.9 million**, mainly due to the accounting effects of inflation and currency devaluation under IAS 29, along with an increase in international passenger traffic[778](index=778&type=chunk)[779](index=779&type=chunk)[782](index=782&type=chunk) - Total passenger traffic decreased by **2.7% from 81.1 million in 2023 to 79.0 million in 2024**, mainly driven by a **10.3% decrease in domestic passengers**, partially offset by an **8.4% increase in international passengers**[760](index=760&type=chunk) Adjusted EBITDA Reconciliation | (in millions of U.S.$) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Income from continuing operations | 307.9 | 226.5 | 165.6 | | Financial income | (71.4) | (101.6) | (63.9) | | Financial loss | (110.3) | 406.6 | 196.4 | | Inflation adjustment | 21.3 | 40.5 | (19.5) | | Income tax | 298.8 | (24.2) | 24.9 | | Amortization and depreciation | 182.5 | 130.0 | 153.1 | | **Adjusted EBITDA** | **628.7** | **677.7** | **456.7** | | **Adjusted EBITDA excluding Construction Services** | **622.2** | **671.3** | **454.8** | [Liquidity and Capital Resources](index=178&type=section&id=B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's liquidity is primarily sourced from cash flows generated by its operating subsidiaries and non-recourse debt, used for operating expenses, debt service, and capital expenditures, with dividend payments dependent on subsidiary distributions subject to local regulations and debt covenants - The company's ability to receive funds from its subsidiaries is restricted by local laws and debt covenants, with foreign exchange controls in Argentina limiting the ability to transfer dividends abroad, requiring prior approval from the Central Bank (BCRA)[872](index=872&type=chunk)[883](index=883&type=chunk) - Net cash provided by operating activities increased by **13.7% to U.S.$405.3 million in 2024**, mainly due to increased airport activity and a **U.S.$90.6 million concession compensation payment** for the Natal Airport[919](index=919&type=chunk) - Net cash used in financing activities was **U.S.$271.2 million in 2024**, an increase from **U.S.$201.6 million in 2023**, primarily due to higher loan repayments, particularly in Italy and at the holding company level[921](index=921&type=chunk)[923](index=923&type=chunk) - The company has significant capital expenditure plans, including a proposed **EUR 605 million infrastructure plan** for its Florence and Pisa airports and a **U.S.$425 million plan** for its Armenian airports, subject to regulatory approvals[753](index=753&type=chunk)[856](index=856&type=chunk) [Indebtedness](index=192&type=section&id=Indebtedness) The company manages a diverse and complex debt portfolio across its subsidiaries, including senior secured notes in Argentina and Uruguay, a new financial contract in Italy, and a significant credit facility in Brazil, all containing various restrictive covenants - **Argentina:** AA2000 has multiple series of notes, including the Argentine Notes Series 2017, 2020, and 2021, secured by trusts over tariff and cargo revenues, where termination of the AA2000 Concession Agreement would trigger a default on these notes[924](index=924&type=chunk)[934](index=934&type=chunk)[936](index=936&type=chunk) - **Uruguay:** ACI Sudamerica has issued senior secured notes (due 2032 and 2034) guaranteed by its subsidiaries and secured by pledges over shares of Puerta del Sur and Cerealsur S.A., as well as dividend flows[988](index=988&type=chunk)[989](index=989&type=chunk)[998](index=998&type=chunk) - **Italy:** In June 2024, subsidiary TA secured a new financial contract for up to **€176.4 million** to refinance existing debt and fund capital expenditures for the Pisa and Florence airports, with the loan partially guaranteed by SACE S.p.A[966](index=966&type=chunk)[967](index=967&type=chunk) - **Brazil:** The ICAB subsidiary has a major credit facility with BNDES, where the agreement includes restrictive covenants, such as limitations on changes of control at the CAAP level without BNDES's prior consent[973](index=973&type=chunk)[985](index=985&type=chunk) [Directors, Senior Management and Employees](index=210&type=section&id=ITEM%206.%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section outlines the company's leadership structure, including its Board, senior management, compensation, governance practices, and employee demographics [Directors and Senior Management](index=210&type=section&id=A.%20DIRECTORS%20AND%20SENIOR%20MANAGEMENT) The company is led by a Board of Directors and a senior management team, with Martín Francisco Antranik Eurnekian serving as Director and CEO, overseeing day-to-day operations alongside other key executives Board of Directors | Name | Position | First Appointment | | :--- | :--- | :--- | | Martín Francisco Antranik Eurnekian | Director & CEO | September 14, 2017 | | Máximo Luis Bomchil | Director | September 14, 2017 | | Roderick H. McGeoch | Director | September 14, 2017 | | David Arendt | Independent Director | September 14, 2017 | | Valérie Pechon | Independent Director | September 14, 2017 | | Carlo Alberto Montagna | Independent Director | September 14, 2017 | | Daniel Marx | Director | February 28, 2019 | Senior Management | Name | Position | First Appointment | | :--- | :--- | :--- | | Martín Francisco Antranik Eurnekian | Chief Executive Officer | September 14, 2017 | | Jorge Arruda Filho | Chief Financial Officer | April 30, 2021 | | Roberto Naldi | Head of European Business Development | September 14, 2017 | | Andrés Zenarruza | Head of Legal & Compliance | September 14, 2017 | | Eugenio Perissé | Head of Business Development | September 14, 2017 | [Compensation](index=213&type=section&id=B.%20COMPENSATION) Total compensation for directors and senior management in 2024 was U.S.$4.9 million, with a Management Share Compensation Plan allowing for allocation of up to 2% of outstanding shares to key employees and executives, complemented by a clawback policy for erroneous awards - Total compensation for directors and senior management was **U.S.$4.9 million in 2024**[1035](index=1035&type=chunk) - The Management Compensation Plan allows for up to **2% of outstanding shares** to be allocated as incentive compensation, with **1,068,120 shares** delivered to date and **2,132,325 held in treasury** for the plan[1036](index=1036&type=chunk)[1037](index=1037&type=chunk)[1038](index=1038&type=chunk) - The company adopted a Clawback Policy on November 15, 2023, to recover erroneously awarded compensation from executive officers in the event of a financial restatement[1042](index=1042&type=chunk)[1058](index=1058&type=chunk) [Board Practices](index=214&type=section&id=C.%20BOARD%20PRACTICES) As a foreign private issuer, the company follows Luxembourg corporate governance practices, which differ from NYSE standards, with key governance bodies including an independent Audit Committee, an Executive Committee, and other specialized committees - The Audit Committee is composed of three independent directors: Valérie Pechon, David Arendt (Financial Expert), and Carlo Alberto Montagna (President), complying with NYSE and SEC independence requirements[1046](index=1046&type=chunk) - The Executive Committee, responsible for implementing strategy and managing risks, consists of the CEO (Martín Eurnekian), CFO (Jorge Arruda Filho), and Head of Legal & Compliance (Andrés Zenarruza)[1047](index=1047&type=chunk) - The company has established several other committees, including a Compensation Committee to administer incentive plans and a new Information Security Incident Response Committee (ISIRC) to manage cybersecurity events[1051](index=1051&type=chunk)[1052](index=1052&type=chunk) [Employees](index=217&type=section&id=D.%20EMPLOYEES) As of December 31, 2024, the company employed approximately 6,100 people, with a significant portion of the workforce unionized, particularly in Argentina, and reports maintaining strong working relationships with unions Total Employees by Function | | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Operations and infrastructure | 5,400 | 5,400 | 5,400 | | Administration | 700 | 700 | 700 | | **Total** | **6,100** | **6,100** | **6,100** | - In Argentina, **63% of the workforce** is represented by labor unions (APA and UPCN), with **53% of the total workforce** being union members/affiliates[1054](index=1054&type=chunk) [Major Shareholders and Related Party Transactions](index=218&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details the company's ownership structure, major shareholders, and significant transactions conducted with related parties [Major Shareholders](index=218&type=section&id=A.%20MAJOR%20SHAREHOLDERS) As of December 31, 2024, the company's majority shareholder is A.C.I. Airports S.à r.l., which beneficially owns 80.53% of the common shares and is ultimately controlled by the Southern Cone Foundation Beneficial Ownership of Common Shares (as of Dec 31, 2024) | Shareholder | Common Shares Beneficially Owned | % of Ownership | | :--- | :--- | :--- | | A.C.I. Airports S.à r.l | 131,450,833 | 80.53% | | All executive officers and directors as a group | 0 | 0% | - The company is ultimately controlled by the Southern Cone Foundation (SCF), a foundation in Liechtenstein, where the board of directors of SCF has broad authority to manage its affairs and designate beneficiaries[1061](index=1061&type=chunk) [Related Party Transactions](index=218&type=section&id=B.RELATED%20PARTY%20TRANSACTIONS) The company engages in various transactions with related parties controlled by its ultimate parent, the Southern Cone Foundation, including technology, legal, accounting, and construction services, as well as financing agreements - Proden S.A., an affiliate, provides technology services and leases the principal office to AA2000, with the company recording **U.S.$3.3 million in expenses** related to these services in 2024[1064](index=1064&type=chunk) - SIASA, another affiliate, provides compliance, legal, accounting, and technology services to CAAP and its subsidiaries, with related expenses totaling **U.S.$4.5 million in 2024**[1065](index=1065&type=chunk) - Helport S.A. and CINC, affiliated construction companies, provided services to AA2000, resulting in expenses of **U.S.$8.6 million in 2024**[1066](index=1066&type=chunk) - The company has a registration rights and indemnification agreement with its Majority Shareholder, providing for demand and piggyback registration rights and indemnification against certain liabilities[1074](index=1074&type=chunk)[1075](index=1075&type=chunk) [Financial Information](index=221&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section presents the company's consolidated financial statements and other pertinent financial disclosures, including significant legal proceedings [Consolidated Statements and Other Financial Information](index=221&type=section&id=A.%20CONSOLIDATED%20STATEMENTS%20AND%20OTHER%20FINANCIAL%20INFORMATION) The company is involved in several material legal proceedings across its operating jurisdictions, including environmental remediation claims in Argentina, administrative and tax disputes in Brazil, and favorable rulings in contract and arbitration cases in Italy and Peru, respectively - **Argentina:** The company is addressing environmental remediation claims through a General Remediation Agreement, with specific plans approved for Ezeiza, San Fernando, and Aeroparque airports, where the costs are considered investments under the AA2000 Concession Agreement[1083](index=1083&type=chunk)[1084](index=1084&type=chunk)[1087](index=1087&type=chunk) - **Brazil:** Subsidiary ICAB is in ongoing administrative and judicial proceedings with ANAC concerning economic re-equilibrium claims and the rescheduling of the 2021 fixed concession fee, having received favorable provisional rulings but still pending final resolution[1094](index=1094&type=chunk)[1098](index=1098&type=chunk) - **Italy:** A civil court ruled in favor of subsidiary TA in a contract dispute with NIT, rejecting NIT's claim and ordering the return of a deposit of approximately **€4.7 million** to TA, though NIT has appealed this decision[1133](index=1133&type=chunk)[1134](index=1134&type=chunk) - **Peru:** An ICSID arbitral tribunal issued a final award ordering the Republic of Peru to pay approximately **U.S.$91.2 million in damages** to Kuntur Wasi (a former associate) for the wrongful termination of the Chinchero airport concession[1138](index=1138&type=chunk) [Controls and Procedures](index=248&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section details the company's internal controls and procedures, including disclosure controls and management's assessment of financial reporting controls [Disclosure Controls and Procedures](index=248&type=section&id=A.%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) As of December 31, 2024, the company's management, including the CEO and CFO, concluded that its disclosure controls and procedures were effective in ensuring timely and accurate reporting of required information, overseen by a dedicated Disclosure Committee - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[1258](index=1258&type=chunk) - A Disclosure Committee is in place to oversee and review all materials requiring disclosure, ensuring information is accumulated and communicated to senior management for timely decisions[1259](index=1259&type=chunk)[1260](index=1260&type=chunk) [Management's Annual Report on Internal Control Over Financial Reporting](index=249&type=section&id=B.%20MANAGEMENT%27S%20ANNUAL%20REPORT%20ON%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) Management concluded that the company's internal control over financial reporting (ICFR) was effective as of December 31, 2024, based on an evaluation using the COSO 2013 framework, providing reasonable assurance regarding financial reporting reliability - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2024, based on the COSO 2013 framework[1264](index=1264&type=chunk)[1265](index=1265&type=chunk) [Attestation Report of the Registered Public Accounting Firm](index=250&type=section&id=C.%20ATTESTATION%20REPORT%20OF%20THE%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) The company's independent registered public accounting firm, Price Waterhouse & Co. S.R.L., has audited and attested to the effectiveness of the company's internal control over financial reporting as of December 31, 2024 - The effectiveness of the company's internal control over financial reporting as of December 31, 2024, has been audited by Price Waterhouse & Co. S.R.L[1267](index=1267&type=chunk) [Corporate Governance and Other Disclosures](index=250&type=section&id=ITEM%2016.%20%5BRESERVED%5D) This section details the company's corporate governance, accountant fees, NYSE standard adherence as a foreign private issuer, and cybersecurity risk management [Principal Accountant Fees and Services](index=250&type=section&id=ITEM%2016C.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) For fiscal years 2024 and 2023, the company paid its principal accountant, Price Waterhouse & Co. S.R.L., total fees of U.S.$2.30 million and U.S.$2.04 million respectively, primarily for audit services, with an audit committee policy for pre-approval of all services Accountant Fees (in thousands of U.S.$) | Fee Type | 2024 | 2023 | | :--- | :--- | :--- | | Audit fees | 2,214 | 1,871 | | Audit related fees | 22 | 95 | | Tax fees | 48 | 58 | | All other fees | 12 | 20 | | **Total** | **2,296** | **2,044** | - The audit committee pre-approves all audit and permissible non-audit services and has delegated authority to its Chairman to approve additional services between meetings[1276](index=1276&type=chunk)[1277](index=1277&type=chunk) [Corporate Governance](index=251&type=section&id=ITEM%2016G.%20CORPORATE%20GOVERNANCE) As a foreign private issuer, the company's corporate governance practices are governed by Luxembourg law, differing from certain NYSE standards for U.S. domestic companies, though it complies with key NYSE requirements like an independent audit committee and has adopted its own governance codes - The company follows home-country (Luxembourg) corporate governance practices, which differ from certain NYSE standards for domestic issuers[1282](index=1282&type=chunk)[1283](index=1283&type=chunk) - Key differences include the absence of a requirement for regularly scheduled executive sessions of non-management directors and less stringent shareholder voting requirements on equity compensation plans[1284](index=1284&type=chunk)[1290](index=1290&type=chunk) - The company complies with the NYSE requirement for an independent audit committee and has adopted its own Corporate Governance Code and Code of Ethics[1286](index=1286&type=chunk)[1292](index=1292&type=chunk) [Cybersecurity](index=253&type=section&id=ITEM%2016K.%20CYBERSECURITY) The company has established a comprehensive cybersecurity risk management framework, formalized in its Information Security Incident Management Policy, with an Information Security Incident Response Committee (ISIRC) and a dedicated department reporting to the Executive Committee and Board of Directors - The company's Board approved an Information Security Incident Management Policy in November 2023 to manage cybersecurity risks[1299](index=1299&type=chunk) - An Information Security Incident Response Committee (ISIRC) is in place to manage and coordinate the response to cybersecurity incidents, including IT, security, and legal leadership[1301](index=1301&type=chunk)[1305](index=1305&type=chunk) - The governance structure involves the Information Security Department reporting to the Executive Committee, which in turn reports critical incidents and provides quarterly updates to the Board of Directors[1312](index=1312&type=chunk)[1316](index=1316&type=chunk) - The company has not been materially affected by any cybersecurity incidents to date but recognizes the growing risk landscape[1310](index=1310&type=chunk) [Financial Statements](index=260&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements and the independent auditor's report, including critical audit matters [Report of Independent Registered Public Accounting Firm](index=260&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Price Waterhouse & Co. S.R.L. issued an unqualified opinion on the company's consolidated financial statements and the effectiveness of its internal control over financial reporting as of December 31, 2024, identifying the impairment assessment of Brazilian Concession Assets as a critical audit matter - The independent auditor, Price Waterhouse & Co. S.R.L., issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2024[1329](index=1329&type=chunk) - A critical audit matter was identified concerning the impairment assessment of the Brazilian Concession Assets due to the high degree of auditor judgment required to evaluate management's significant assumptions, particularly regarding passenger growth rates and the discount rate used in the value-in-use calculation[1336](index=1336&type=chunk)[1337](index=1337&type=chunk)

Group 1 - Corporacion America Airports S.A. (CAAP) is part of the Transportation sector, which includes 130 individual stocks and has a Zacks Sector Rank of 10 [2] - CAAP currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for CAAP's full-year earnings has increased by 41.6%, reflecting improved analyst sentiment [4] Group 2 - Year-to-date, CAAP has returned approximately 2%, outperforming the average loss of 1.5% in the Transportation sector [4] - CAAP belongs to the Transportation - Airline industry, which consists of 27 stocks and is ranked 43 in the Zacks Industry Rank; the industry has gained an average of 8.5% this year, indicating CAAP is slightly underperforming its industry [6] - Another stock in the Transportation sector, REV Group (REVG), has a year-to-date return of 4.6% and a Zacks Rank of 1 (Strong Buy) [5][7]

Corporacion America Airports S.A. (NYSE:CAAP) Q4 2024 Earnings Conference Call March 19, 2025 9:00 AM ET Company Participants Patricio Inaki Esnaola - Head of Investor Relations Martin Francisco Antranik Eurnekian - Chief Executive Officer Jorge Arruda - Chief Financial Officer Conference Call Participants Alejandro Demichelis - Jefferies Fernanda Recchia - BTG Stephen Trent - Citi Operator Good morning, and welcome to the Corporacion America Airports Fourth Quarter and Year-End 2024 Conference Call. A slid ...

Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include all statements that are not historical facts and can be identified by terms such as "believes," "continue," "could," "potential," "remain," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and othe ...