Second Quarter 2022 Earnings Call Presentation Second Quarter 2022 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. Forwardlooking 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 ne ...

[Company Information](index=3&type=section&id=Company%20Information) [Company Overview](index=3&type=section&id=Company%20Overview) Aeropuertos Argentina 2000 S.A. (AA2000) was established in 1998, primarily focusing on the development, management, and operation of Argentine airports, holding a concession for 35 airports - The company was founded in 1998, primarily engaged in airport development, management, and operation[3](index=3&type=chunk) - The company holds a concession for 35 airports within the Argentine National Airport System "Group A"[3](index=3&type=chunk)[20](index=20&type=chunk) - The parent company is Corporación América S.A., holding a **45.90% stake**[4](index=4&type=chunk) [Capital Stock](index=3&type=section&id=Capital%20Stock) As of the reporting period, the company's total issued and paid-in capital is ARS 258,517,299, comprising four classes of common shares, each with a par value of ARS 1 and one voting right Capital Stock Composition (ARS) | Stock Class | Subscribed Capital (ARS) | Paid-in Capital (ARS) | | :--- | :--- | :--- | | Class "A" Common Stock | 79,105,489 | 79,105,489 | | Class "B" Common Stock | 79,105,489 | 79,105,489 | | Class "C" Common Stock | 61,526,492 | 61,526,492 | | Class "D" Common Stock | 38,779,829 | 38,779,829 | | **Total** | **258,517,299** | **258,517,299** | [Condensed Consolidated Interim Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the six months ended June 30, 2022, the company achieved a net income of ARS 20.11 billion, a significant improvement from the prior year's loss, with operating profit also turning positive Consolidated Statements of Comprehensive Income Key Data (Six-Month Period, ARS) | Indicator | June 30, 2022 (ARS) | June 30, 2021 (ARS) | | :--- | :--- | :--- | | Revenue | 37,129,730,621 | 19,655,664,834 | | Construction Revenue (IFRIC 12) | 4,550,517,966 | 4,573,353,716 | | Cost of Sales | (23,659,375,420) | (18,275,302,068) | | Construction Costs (IFRIC 12) | (4,539,223,655) | (4,565,145,632) | | Gross Profit for the Period | 13,481,649,512 | 1,388,570,850 | | Operating Profit | 11,738,243,158 | (1,791,980,237) | | Net Income for the Period | 20,111,014,796 | (2,361,433,588) | | Earnings Per Share (Basic and Diluted) | 77.79370 | (9.9876) | [Consolidated Statements of Financial Position](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of June 30, 2022, total assets slightly increased to ARS 226.36 billion, with intangible assets remaining the largest non-current component, while equity slightly decreased and total liabilities increased Consolidated Statements of Financial Position Key Data (ARS) | Indicator | June 30, 2022 (ARS) | December 31, 2021 (ARS) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-Current Assets | 191,865,038,896 | 194,050,153,351 | | Total Current Assets | 34,491,368,986 | 32,222,454,691 | | **Total Assets** | **226,356,407,882** | **226,272,608,042** | | **Shareholders' Equity and Liabilities** | | | | Total Shareholders' Equity | 89,131,907,520 | 91,574,730,181 | | Total Non-Current Liabilities | 104,021,136,104 | 95,580,586,711 | | Total Current Liabilities | 33,203,364,258 | 39,117,291,150 | | **Total Liabilities** | **137,224,500,362** | **134,697,877,861** | | **Total Shareholders' Equity and Liabilities** | **226,356,407,882** | **226,272,608,042** | - Intangible assets represent the largest portion of non-current assets, totaling **ARS 184,119,205,754** as of June 30, 2022[12](index=12&type=chunk) - Investments within current assets increased from **ARS 1,831,821,546** on December 31, 2021, to **ARS 6,638,724,850** on June 30, 2022[12](index=12&type=chunk) [Consolidated Statements of Changes in Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) As of June 30, 2022, total shareholders' equity decreased to ARS 89.13 billion from ARS 91.57 billion on January 1, 2022, primarily due to preferred share redemption and capital adjustments despite positive net income Consolidated Statements of Changes in Equity Key Data (ARS) | Indicator | June 30, 2022 (ARS) | January 1, 2022 (ARS) | June 30, 2021 (ARS) | | :--- | :--- | :--- | :--- | | Common Stock Capital | 258,517,299 | 258,517,299 | 258,517,299 | | Preferred Stock Capital | - | 910,978,514 | 910,978,514 | | Share Premium | 137,280,595 | 137,280,595 | 137,280,595 | | Capital Adjustments | 13,843,007,838 | 34,547,453,786 | 34,556,298,629 | | Legal and Voluntary Reserves | 70,283,024,902 | 70,881,816,983 | 70,899,302,744 | | Retained Earnings | 4,608,342,132 | (15,502,655,403) | (17,864,554,034) | | Total Equity Attributable to Shareholders | 89,130,172,766 | 91,573,012,688 | 89,208,818,716 | | Non-Controlling Interests | 1,734,754 | 1,717,493 | 1,512,615 | | **Total Shareholders' Equity** | **89,131,907,520** | **91,574,730,181** | **89,210,331,331** | - The shareholders' meeting on March 10, 2022, resolved to redeem preferred shares, resulting in zero preferred stock capital and a significant reduction in capital adjustments[14](index=14&type=chunk) - Net income for the period, totaling **ARS 20,110,997,535**, positively impacted retained earnings[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, operating activities resulted in a cash outflow of ARS 8.95 billion, investing activities a cash outflow of ARS 5.37 billion, and financing activities a cash inflow of ARS 11.65 billion, mainly from new financial debt Consolidated Statements of Cash Flows Key Data (Six-Month Period, ARS) | Indicator | June 30, 2022 (ARS) | June 30, 2021 (ARS) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | (8,948,756,475) | 2,128,734,977 | | Net Cash Flow from Investing Activities | (5,365,368,789) | 367,210,641 | | Net Cash Flow from Financing Activities | 11,653,778,819 | (6,542,621,065) | | Decrease in Cash and Cash Equivalents | (2,660,346,445) | (4,046,675,447) | | Cash and Cash Equivalents at End of Period | 19,901,329,925 | 6,653,995,650 | - Operating cash flow shifted from positive to negative year-over-year, primarily influenced by income tax adjustments, bad debt provisions, inflation adjustments, and changes in fees payable to the Argentine National Government[17](index=17&type=chunk) - Financing cash flow significantly turned positive, mainly due to **ARS 27,838,880,775** in new financial debt[17](index=17&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Note 1 – Company Activities](index=8&type=section&id=Note%201%20%E2%80%93%20Company%20Activities) AA2000 holds a concession for 35 airports, extended to February 13, 2038, with some commitments deferred due to COVID-19, and the government retaining the right to repurchase the concession - The company holds concession rights for **35 airports**, with the concession period extended until **February 13, 2038**[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) - In September 2021, ORSNA approved the deferral of certain engineering funds and preferred share redemption commitments to December 2022, and financial forecast adjustments to June 2023, in response to COVID-19 impacts[24](index=24&type=chunk) - The Argentine National Government retains the right to repurchase the concession after February 13, 2018, with compensation payable to the company[25](index=25&type=chunk) [Note 2 – Basis for Consolidation](index=9&type=section&id=Note%202%20%E2%80%93%20Basis%20for%20Consolidation) Consolidated financial statements include AA2000 and its subsidiaries, based on the company's control over entities, with intercompany transactions and balances eliminated for consistency Major Subsidiaries and Shareholding Percentages (ARS) | Subsidiary Name | Capital Participation and Potential Voting Rights | Book Value June 30, 2022 (ARS) | Period Income (ARS) | | :--- | :--- | :--- | :--- | | Servicios y Tecnología Aeroportuarios S.A. | 99.30% | 247,118,550 | 14,254,496 | | Cargo & Logistics SA. | 98.63% | 1,531,495 | (2,307,335) | | Paoletti América S.A. | 50.00% | 15,526 | (5,594) | | Texelrío S.A. | 70.00% | - | - | | Villalonga Furlong S.A | 1.45% | 55,812 | (46,226) | - AA2000 holds a **99.3% stake** in Servicios y Tecnología Aeroportuarios S.A., which primarily engages in duty-free zones, import/export, and airport-related services[31](index=31&type=chunk) - AA2000 holds a **98.63% stake** in Cargo y Logística S.A., which in turn holds a **98.42% stake** in Villalonga Furlong S.A[32](index=32&type=chunk) [Note 3 – Accounting Policies](index=10&type=section&id=Note%203%20%E2%80%93%20Accounting%20Policies) These condensed consolidated interim financial statements are presented in Argentine Pesos, comply with IFRS and IAS 34, and are restated under IAS 29 due to Argentina's hyperinflationary economy - Financial statements are presented in **Argentine Pesos** and comply with **International Financial Reporting Standards (IFRS)** and **International Accounting Standard 34 (IAS 34)**[35](index=35&type=chunk)[38](index=38&type=chunk) - Argentina has been classified as a hyperinflationary economy since **July 1, 2018**, thus financial statements are restated under **IAS 29** to reflect inflation's impact[56](index=56&type=chunk)[57](index=57&type=chunk) - The company is managed as a single business unit, with all airports considered as a whole, and no separate performance evaluation for individual airports, resulting in only one business segment[43](index=43&type=chunk) [Comparative Information](index=10&type=section&id=Comparative%20Information) Comparative information in these financial statements is derived from prior interim and annual consolidated financial statements, restated under IAS 29 to June 30, 2022, constant currency - Comparative information has been restated under **IAS 29** to the constant currency of June 30, 2022[40](index=40&type=chunk) [Controlled Entities](index=10&type=section&id=Controlled%20Entities) The company consolidates entities over which it has control, defined by power and variable returns, with intergroup transactions and unrealized gains/losses eliminated - The company consolidates entities when it has control over them[40](index=40&type=chunk) - Intergroup transactions, balances, and unrealized gains and losses are eliminated[41](index=41&type=chunk) [Segment Information](index=11&type=section&id=Segment%20Information) The company manages all airports as a single business unit, with airport revenue comprising non-aeronautical and aeronautical income, the latter determined by ORSNA's financial projections - The company is managed as a **single business unit**, with all airports considered as a whole, constituting only one business segment[43](index=43&type=chunk) - Airport revenue includes non-aeronautical and aeronautical income, with aeronautical revenue rates determined by ORSNA based on financial forecast reviews[46](index=46&type=chunk) [Accounting Policy Changes and Estimates](index=11&type=section&id=Accounting%20Policy%20Changes%20and%20Estimates) No changes occurred in the group's accounting policies as of January 1, 2022, and management's judgments and estimates align with the 2021 annual financial statements - No changes occurred in the group's accounting policies as of **January 1, 2022**[49](index=49&type=chunk) - Management's judgments and estimates in preparing the financial statements are consistent with the 2021 annual financial statements[51](index=51&type=chunk) [Foreign Currency and Hyperinflationary Economies](index=12&type=section&id=Foreign%20Currency%20and%20Hyperinflationary%20Economies) The company's functional and presentation currency is the Argentine Peso, with financial statements restated under IAS 29 due to Argentina's hyperinflationary economy, and inflation adjustments recognized in comprehensive income - The company's functional and presentation currency is the **Argentine Peso**[53](index=53&type=chunk) - Argentina has been classified as a hyperinflationary economy since **July 1, 2018**, requiring financial statements to be restated under **IAS 29**[56](index=56&type=chunk) - Non-monetary assets and liabilities are updated using adjustment factors from their acquisition or inception dates, while monetary assets and liabilities are not restated; inflation adjustment gains or losses are presented as "Impact of changes in the purchasing power of money" in the statement of comprehensive income[64](index=64&type=chunk)[66](index=66&type=chunk) [Contingencies](index=15&type=section&id=Contingencies) The company has legal claims and contingent liabilities related to normal operations, with no expectation of significant additional liabilities beyond existing provisions - The company has legal claims and contingent liabilities related to normal operations, with no expectation of significant additional liabilities[74](index=74&type=chunk) [Income Tax and Deferred Tax](index=15&type=section&id=Income%20Tax%20and%20Deferred%20Tax) For the six months ended June 30, 2022, income tax revenue was ARS 2.05 billion, with the company including inflation adjustments in its taxable net results and submitting a statement to AFIP - For the six months ended June 30, 2022, income tax revenue was **ARS 2.05 billion**[74](index=74&type=chunk) - The company included an inflation adjustment of **ARS 22.47 billion** in its taxable net results and submitted a statement to AFIP to assert its rights regarding this adjustment[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) [Note 4 – Breakdown of Certain Items of Financial Position and Comprehensive Income](index=16&type=section&id=Note%204%20%E2%80%93%20Breakdown%20of%20Certain%20Items%20of%20Financial%20Position%20and%20Comprehensive%20Income) This note details specific balance sheet and comprehensive income items, including receivables, investments, cash, payables, and the composition of aeronautical and non-aeronautical revenue, highlighting significant changes in trade receivables and investments Financial Position Items Breakdown (ARS) | Item | June 30, 2022 (ARS) | December 31, 2021 (ARS) | | :--- | :--- | :--- | | Other Non-Current Receivables | 7,106,862,898 | 8,305,627,397 | | Other Current Receivables | 1,873,829,607 | 2,546,845,998 | | Net Trade Receivables | 6,077,484,604 | 5,679,129,855 | | Investments | 6,638,724,850 | 1,831,821,546 | | Cash and Cash Equivalents | 19,901,329,925 | 22,164,657,292 | | Accounts Payable and Other Non-Current Liabilities | 244,668,076 | 1,064,644,930 | | Accounts Payable and Other Current Liabilities | 8,532,461,987 | 11,438,029,448 | Comprehensive Income Items Breakdown (Six-Month Period, ARS) | Item | June 30, 2022 (ARS) | June 30, 2021 (ARS) | | :--- | :--- | :--- | | Aeronautical Revenue | 18,300,885,380 | 5,483,011,754 | | Non-Aeronautical Revenue | 18,828,845,241 | 14,172,653,080 | | Total Revenue | 37,129,730,621 | 19,655,664,834 | | Other Net Income and Expenses | 850,522,715 | (872,094,574) | | Financial Income | 2,332,653,065 | 947,813,483 | | Financial Costs | 1,925,417,172 | 3,506,715,054 | | Income Tax | 2,050,466,571 | (4,412,627,306) | - Net trade receivables increased from **ARS 5,679,129,855** on December 31, 2021, to **ARS 6,077,484,604** on June 30, 2022[79](index=79&type=chunk) - Investments significantly increased from **ARS 1,831,821,546** on December 31, 2021, to **ARS 6,638,724,850** on June 30, 2022[79](index=79&type=chunk) [Note 5 – Intangible Assets](index=18&type=section&id=Note%205%20%E2%80%93%20Intangible%20Assets) As of June 30, 2022, the company's net intangible assets totaled ARS 184.12 billion, with ARS 4.55 billion in additions and ARS 5.31 billion in amortization during the period Intangible Assets Movement (ARS) | Indicator | June 30, 2022 (ARS) | June 30, 2021 (ARS) | | :--- | :--- | :--- | | Balance at January 1 (Original Value) | 289,040,072,237 | 281,633,841,916 | | Additions for the Period | 4,550,517,966 | 4,573,353,716 | | Balance at June 30 (Original Value) | 293,590,590,203 | 286,207,195,632 | | Accumulated Amortization at January 1 | (104,158,099,164) | (94,322,470,545) | | Amortization for the Period | (5,313,285,285) | (4,834,018,728) | | Accumulated Amortization at June 30 | (109,471,384,449) | (99,156,489,273) | | **Net Balance at June 30** | **184,119,205,754** | **187,050,706,359** | [Note 6 – Financial Debts](index=18&type=section&id=Note%206%20%E2%80%93%20Financial%20Debts) As of June 30, 2022, total financial debt increased to ARS 93.17 billion, driven by ARS 27.84 billion in new debt and ARS 16.00 billion in repayments, utilizing various financing methods including transferable debt and syndicated loans Financial Debts Breakdown (ARS) | Debt Type | June 30, 2022 (ARS) | December 31, 2021 (ARS) | | :--- | :--- | :--- | | **Non-Current Liabilities** | | | | Bank Loans | 3,682,509,849 | 7,629,181,122 | | Transferable Debts | 78,376,983,934 | 64,752,214,080 | | Debt Issuance Costs | (1,266,392,934) | (1,835,081,457) | | **Total Non-Current Liabilities** | **80,793,100,849** | **70,546,313,745** | | **Current Liabilities** | | | | Bank Loans | 5,198,188,207 | 7,883,266,213 | | Transferable Debts | 7,405,088,310 | 8,926,097,858 | | Debt Issuance Costs | (228,204,162) | (305,690,861) | | **Total Current Liabilities** | **12,375,072,355** | **16,503,673,210** | | **Total Financial Debts** | **93,168,173,204** | **87,049,986,955** | Financial Debts Movement (ARS) | Movement Item | June 30, 2022 (ARS) | June 30, 2021 (ARS) | | :--- | :--- | :--- | | Balance at January 1 | 87,049,986,955 | 91,254,368,637 | | New Financial Debts | 27,838,880,775 | 3,990,539,608 | | Financial Debts Repaid | (16,001,245,361) | (10,276,195,147) | | Accrued Interest | 3,964,043,876 | 4,495,887,268 | | Foreign Exchange Differences | (10,300,936,026) | (8,234,924,192) | | Inflation Adjustment | 617,442,985 | (761,077,892) | | **Net Balance at June 30** | **93,168,173,204** | **80,468,598,282** | - The company issued **USD 400 million** in transferable debt in 2017, maturing in 2027, with an interest rate of **6.875%**[88](index=88&type=chunk) - The company established a global program for transferable debt issuance totaling **USD 1.5 billion** in 2020, with multiple series issued including 2020 Series I, 2021 Series I, Class 2, Class 3, Class 4, Class 5, and Class 6[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk) - The company also secured financing through syndicated loans, Banco Macro loans, City Bank loans, and Eurobank loans, with some loans refinanced and extended[104](index=104&type=chunk)[109](index=109&type=chunk)[116](index=116&type=chunk)[125](index=125&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) [Note 7 – Balances and Transactions with Related Parties](index=27&type=section&id=Note%207%20%E2%80%93%20Balances%20and%20Transactions%20with%20Related%20Parties) This note discloses related party balances and transactions, showing increased trade and other receivables from related parties, decreased payables, and significant government-related payables and trust fund receivables Related Party Balances (ARS) | Item | June 30, 2022 (ARS) | December 31, 2021 (ARS) | | :--- | :--- | :--- | | Trade Receivables | 311,339,864 | 244,795,132 | | Other Receivables | 236,898,519 | 117,317,774 | | Accounts Payable and Others | 34,790,913 | 272,734,783 | | Shareholders – Dividends | 279,504,684 | 311,865,221 | | Shareholders – Debt to National Government | 9,647,388,424 | - | - As of June 30, 2022, the company owed the Argentine National Government **ARS 4,485,256,216** for specific revenue allocation fees and recorded **ARS 7,106,862,898** in trust receivables for infrastructure projects[149](index=149&type=chunk) - As of June 30, 2022, the National Government also owed the company **ARS 9,647,388,424** as debt for the redemption of preferred shares[149](index=149&type=chunk) - Short-term compensation for key management personnel was **ARS 90,846,880** in H1 2022, compared to **ARS 93,221,338** in H1 2021[150](index=150&type=chunk) [Note 8 – Bad Debt Provisions](index=28&type=section&id=Note%208%20%E2%80%93%20Bad%20Debt%20Provisions) As of June 30, 2022, bad debt provisions significantly decreased to ARS 1.73 billion from ARS 6.37 billion at year-end, primarily due to recoveries, foreign exchange differences, and inflation adjustments Bad Debt Provisions Movement (ARS) | Movement Item | 2022 (ARS) | 2021 (ARS) | | :--- | :--- | :--- | | Initial Balance at January 1 | 6,368,227,254 | 7,237,269,810 | | Recoveries / Additions | (1,044,865,444) | 153,491,594 | | Foreign Exchange Differences | (1,492,274,651) | 671,617,465 | | Utilized | (368,771,952) | (3,669,867) | | Inflation Adjustment | (1,736,814,894) | (1,546,562,807) | | **Final Balance at June 30** | **1,725,500,313** | **6,512,146,195** | [Note 9 – Provisions and Other Charges](index=29&type=section&id=Note%209%20%E2%80%93%20Provisions%20and%20Other%20Charges) As of June 30, 2022, total provisions and other liabilities amounted to ARS 15.72 billion, reflecting new debt provisions related to government preferred share redemption and adjustments to litigation, deferred income, and project trusts Provisions and Other Liabilities Movement (2022, ARS) | Item | Balance at Jan 1 (ARS) | Increase / (Recovery) (ARS) | Decrease (ARS) | Inflation Adjustment (ARS) | Accrued (ARS) | Exchange Rate Differences (ARS) | Balance at Jun 30 (ARS) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Litigation | 962,440,606 | 56,786,231 | (74,423,665) | (260,387,780) | - | 122,353,020 | 806,768,412 | | Deferred Income | 2,460,500,566 | 185,622,910 | - | (275,006,506) | (560,393,511) | 104,043,610 | 1,914,767,069 | | Project Trust | 2,963,097,145 | 662,027,979 | (1,392,101,170) | (798,723,932) | 419,970,360 | - | 1,854,270,382 | | Guarantees Received | 213,871,658 | 61,050,999 | (30,255,371) | (67,198,051) | - | 24,426,732 | 201,895,967 | | Concessionaire Prepaid Expenses | 341,824,901 | 44,422,275 | - | - | (57,147,543) | - | 329,099,633 | | Dividends Payable | 311,865,221 | - | - | (88,493,426) | - | 56,132,889 | 279,504,684 | | Debt to National Government | - | 22,557,693,991 | (12,266,924,550) | (4,596,484,222) | 3,953,103,205 | - | 9,647,388,424 | | Others | 768,399,775 | 26,361,855 | (44,964,909) | (220,170,715) | 18,046,142 | 140,458,784 | 688,130,932 | | **Total** | **8,021,999,872** | **23,593,966,240** | **(13,808,669,665)** | **(6,306,464,632)** | **3,773,578,653** | **447,415,035** | **15,721,825,503** | - Under "Debt to National Government", **ARS 22,557,693,991** was added due to preferred share redemption, and **ARS 12,266,924,550** was paid[156](index=156&type=chunk) [Note 10 – Costs of Sales, Administrative, Distribution, and Selling Expenses](index=30&type=section&id=Note%2010%20%E2%80%93%20Costs%20of%20Sales%2C%20Administrative%2C%20Distribution%2C%20and%20Selling%20Expenses) For the six months ended June 30, 2022, total costs of sales, administrative, distribution, and selling expenses increased to ARS 26.25 billion, with specific revenue allocation, salaries, and intangible asset amortization as key components Costs of Sales, Administrative, Distribution, and Selling Expenses Breakdown (Six-Month Period, ARS) | Item | Cost of Sales (ARS) | Distribution and Selling Expenses (ARS) | Administrative Expenses (ARS) | Total (ARS) | | :--- | :--- | :--- | :--- | :--- | | **June 30, 2022** | | | | | | Specific Revenue Allocation | 5,497,390,144 | - | - | 5,497,390,144 | | Airport Services and Maintenance | 4,504,464,267 | - | 19,398,644 | 4,523,862,911 | | Amortization of Intangible Assets | 5,277,855,259 | 1,093,714 | 34,336,312 | 5,313,285,285 | | Salaries and Social Security Contributions | 6,396,548,690 | 57,196,970 | 774,850,888 | 7,228,596,548 | | Bad Debt Expense | - | (1,044,865,444) | - | (1,044,865,444) | | **Total** | **23,659,375,420** | **1,119,375,604** | **1,474,553,465** | **26,253,304,489** | | **June 30, 2021** | | | | | | Specific Revenue Allocation | 2,908,711,967 | - | - | 2,908,711,967 | | Airport Services and Maintenance | 3,949,087,358 | - | 1,338,801 | 3,950,426,159 | | Amortization of Intangible Assets | 4,786,155,476 | 1,260,547 | 46,602,705 | 4,834,018,728 | | Salaries and Social Security Contributions | 5,028,203,043 | 43,909,916 | 495,413,836 | 5,567,526,795 | | Bad Debt Expense | - | 153,491,594 | - | 153,491,594 | | **Total** | **18,275,302,068** | **1,276,827,623** | **1,031,628,890** | **20,583,758,581** | - Specific revenue allocation costs significantly increased in H1 2022, from **ARS 2,908,711,967** in the prior year to **ARS 5,497,390,144**[158](index=158&type=chunk) - Bad debt expense shifted from an expense of **ARS 153,491,594** in H1 2021 to a recovery of **ARS 1,044,865,444** in H1 2022[158](index=158&type=chunk) [Note 11 – Foreign Currency Assets and Liabilities](index=31&type=section&id=Note%2011%20%E2%80%93%20Foreign%20Currency%20Assets%20and%20Liabilities) As of June 30, 2022, the company's net foreign currency liability position increased to ARS 78.67 billion, with USD being the primary currency exposure across various asset and liability categories Foreign Currency Assets and Liabilities Breakdown (ARS) | Item | Currency Type | June 30, 2022 (ARS) | December 31, 2021 (ARS) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | | 19,435,177,469 | 22,840,917,807 | | Of which: Net Trade Receivables | US$ | 3,079,960,277 | 3,141,425,708 | | Of which: Cash and Cash Equivalents | US$ | 16,355,217,192 | 19,699,492,099 | | **Liabilities** | | | | | Total Current Liabilities | | 16,637,012,838 | 22,034,408,898 | | Total Non-Current Liabilities | | 81,468,003,885 | 69,242,887,256 | | **Total Liabilities** | | **98,105,016,723** | **91,277,296,154** | | **Net Liability Position** | | **78,669,839,254** | **68,436,378,347** | - The **US dollar** constitutes the primary component of the company's foreign currency assets and liabilities[162](index=162&type=chunk) - As of June 30, 2022, the buy exchange rate for USD to ARS was **125.0300**, and the sell exchange rate was **125.2300**[73](index=73&type=chunk)[162](index=162&type=chunk) [Note 12 – Other Restricted Assets](index=31&type=section&id=Note%2012%20%E2%80%93%20Other%20Restricted%20Assets) As of June 30, 2022, other current restricted assets include ARS 1.25 million in third-party lease guarantees and ARS 599.50 million in cash and cash equivalents specifically for transferable debt repayment - Other current assets include **ARS 1,254,587** in third-party lease guarantees[163](index=163&type=chunk) - Cash and cash equivalents include **ARS 599,499,180** in bank account balances specifically designated for the repayment of 2021 Series and Class IV transferable debts[163](index=163&type=chunk) [Note 13 – Capital Stock](index=32&type=section&id=Note%2013%20%E2%80%93%20Capital%20Stock) As of June 30, 2022, the company's paid-in and subscribed capital is ARS 258,517,299, consisting of 258,517,299 common shares, following a resolution to redeem all preferred shares and reduce capital Capital Stock Composition (ARS) | Item | Par Value (ARS) | | :--- | :--- | | Paid-in and Subscribed | 258,517,299 | | Registered in Public Commercial Registry | 1,169,495,813 | - The company's capital stock consists of **258,517,299 common shares** with a par value of **ARS 1** each[165](index=165&type=chunk) - On March 10, 2022, the company resolved to redeem all issued preferred shares, reducing capital from **ARS 1,169,495,813** to **ARS 258,517,299**, with this capital reduction currently being registered[166](index=166&type=chunk) [Note 14 – Dividends by Preferred Shares](index=32&type=section&id=Note%2014%20%E2%80%93%20Dividends%20by%20Preferred%20Shares) On February 25, 2022, the board resolved to redeem all issued preferred shares for a total of ARS 17.23 billion, including nominal value and cumulative dividends, with payments scheduled in installments - On February 25, 2022, the Board of Directors resolved to redeem all **910,978,514** issued preferred shares[168](index=168&type=chunk) - The total redemption value is **ARS 17,225,719,240**, including nominal value, cumulative dividends for 2020, 2021, and pro-rata for 2022, all adjusted for inflation[168](index=168&type=chunk) - Redemption payments will be made in installments: **ARS 11,100,000,000** after the capital reduction process is completed, and the remaining balance by December 31, 2024, with interest at **2% per annum** plus inflation adjustment[168](index=168&type=chunk) [Note 15 – Resolutions of Shareholders' Meetings](index=33&type=section&id=Note%2015%20%E2%80%93%20Resolutions%20of%20Shareholders'%20Meetings) Shareholders' meetings in 2021 and 2022 resolved to carry forward negative earnings and confirmed preferred share dividends were not paid due to lack of realized profits, with all preferred shares subsequently redeemed - The shareholders' meeting on April 20, 2021, resolved to carry forward the negative earnings of **ARS 7,589,111,384** for the 2020 fiscal year to the next fiscal year[173](index=173&type=chunk) - The April 20, 2021, shareholders' meeting confirmed preferred share dividends of **ARS 237,821,433** were due but not paid due to the company lacking realized and liquid profits[174](index=174&type=chunk) - The shareholders' meeting on April 28, 2022, resolved to carry forward the negative earnings of **ARS 2,548,150** for the 2021 fiscal year and confirmed all preferred shares had been redeemed, thus no further dividends would be paid[176](index=176&type=chunk) [Note 16 – Earnings Per Share](index=34&type=section&id=Note%2016%20%E2%80%93%20Earnings%20Per%20Share) Earnings per share are calculated based on net income less accrued preferred share dividends, divided by common shares, showing a significant improvement to ARS 77.79 per share as of June 30, 2022 Earnings Per Share Calculation (ARS) | Indicator | June 30, 2022 | June 30, 2021 | | :--- | :--- | :--- | | Net Income for the Period, less Accrued Dividends | 20,111,014,796 | (2,581,965,307) | | Number of Common Shares | 258,517,299 | 258,517,299 | | **Earnings Per Share** | **77.7937** | **(9.9876)** | [Note 17 – Financial Risk Management](index=34&type=section&id=Note%2017%20%E2%80%93%20Financial%20Risk%20Management) The company faces market, credit, and liquidity risks, and this interim report should be read with the 2021 audited consolidated financial statements for comprehensive risk management information - The company faces market risks (including exchange rate risk, interest rate fair value risk, and price risk), credit risk, and liquidity risk[179](index=179&type=chunk) - This condensed consolidated interim financial statement should be read in conjunction with the audited consolidated financial statements for December 31, 2021, for complete financial risk management information[180](index=180&type=chunk) [Note 18 – Impact of COVID-19 on Operations](index=34&type=section&id=Note%2018%20%E2%80%93%20Impact%20of%20COVID-19%20on%20Operations) The COVID-19 pandemic significantly impacted operations, but with restrictions lifted and borders reopened in late 2021, international and domestic travel is recovering, expected to positively affect operating performance in 2022 - The COVID-19 pandemic led to significant negative impacts on company operations due to Argentine government measures such as border closures, mandatory quarantines, and flight suspensions[181](index=181&type=chunk)[182](index=182&type=chunk) - International and domestic travel has been steadily recovering since the lifting of restrictions and border reopenings in late 2021[184](index=184&type=chunk) - This recovery trend is expected to consolidate throughout the remainder of 2022, leading to higher passenger traffic and a positive impact on operating results[184](index=184&type=chunk) [Note 19 – Assignment of Credit to Trusts for NAS Strengthening](index=35&type=section&id=Note%2019%20%E2%80%93%20Assignment%20of%20Credit%20to%20Trusts%20for%20NAS%20Strengthening) The company is authorized to assign receivables from Aerolineas Argentina S.A. to the National Airport System Strengthening Trust to offset certain payables, complying with trust agreements and notified to relevant parties - Aerolineas Argentina S.A. proposed to repay its debt as of March 31, 2020, in **72 equal monthly installments** and agreed to assign these amounts to the NAS Strengthening Trust[186](index=186&type=chunk) - The company obtained ORSNA authorization to offset certain payables for the period from November 2020 to October 2021 by assigning receivables to the Trust[189](index=189&type=chunk) - The assignment of credit has been notified to Banco de la Nacion Argentina and Aerolineas Argentinas S.A[190](index=190&type=chunk) [Note 20 – Events Subsequent to the End of the Year](index=36&type=section&id=Note%2020%20%E2%80%93%20Events%20Subsequent%20to%20the%20End%20of%20the%20Year) Post-period, the company continued financing activities, including new transferable debt issuance, syndicated loans, and early loan repayments, aiming to strengthen cash positions and fulfill commitments - On July 8, 2022, the company issued **USD 20 million** in transferable debt, maturing on July 8, 2025, with a **0% interest rate**[192](index=192&type=chunk) - On July 14, 2022, the company early repaid **ARS 2,180,516,527** of a syndicated loan[193](index=193&type=chunk) - On July 25, 2022, the company signed a **USD 10 million** loan agreement with Industrial and Commercial Bank of China Dubai Branch, and on July 29, canceled a **USD 1.1 million** loan with Eurobank[193](index=193&type=chunk)[196](index=196&type=chunk) - On August 8, 2022, the Board approved the issuance of new Class 8 and Class 9 transferable debts for a maximum of **USD 60 million**, currently in the bidding and issuance process[196](index=196&type=chunk) - On July 8, 2022, the company paid **ARS 5,070,000,000** to the National Government for the redemption of preferred shares[198](index=198&type=chunk) [Summary of Information Required by Resolution N° 368/01 of the National Securities Commission](index=38&type=section&id=Summary%20of%20Information%20Required%20by%20Resolution%20N%C2%B0%20368%2F01%20of%20the%20National%20Securities%20Commission) [General Considerations](index=38&type=section&id=General%20Considerations) This summary, prepared under CNV Resolution N° 368/01, is inflation-adjusted under IAS 29, highlighting the seasonal nature of airport revenue and ongoing construction and renovation projects across multiple concession airports - This summary information has been inflation-adjusted under **IAS 29** and is presented in constant currency as of June 30, 2022[202](index=202&type=chunk) - The company's revenue is affected by the seasonality of Argentine air traffic, with higher passenger volumes and revenue during summer and winter months (December-February and July-August)[205](index=205&type=chunk) - In H1 2022, the company undertook engineering projects at various concession airports, including Ezeiza International Airport, Jorge Newbery Airport, Posadas Airport, Santa Rosa Airport, Comodoro Rivadavia Airport, Córdoba Airport, Iguazú Airport, Bariloche Airport, San Juan Airport, La Rioja Airport, Esquel Airport, and Jujuy Airport, with some projects resuming or in progress after pandemic-related halts[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) [IFRS Application and Seasonality](index=38&type=section&id=IFRS%20Application%20and%20Seasonality) The company has mandatorily applied IFRS since the fiscal year beginning January 1, 2012, with revenue exhibiting significant seasonality, peaking in summer and winter months - The company has mandatorily applied IFRS since the fiscal year beginning **January 1, 2012**[204](index=204&type=chunk) - Company revenue is subject to air traffic seasonality, with higher revenue during summer and winter months (December-February and July-August)[205](index=205&type=chunk) [Airport Projects and Works](index=39&type=section&id=Airport%20Projects%20and%20Works) In H1 2022, the company advanced construction and renovation projects at various airports, including new control towers, runway works, and terminal expansions at Ezeiza, Jorge Newbery, and other key locations - Ezeiza International Airport is undergoing projects including a new control tower, beacon ring, and main substation, with some projects resuming after pandemic-related halts[208](index=208&type=chunk) - Jorge Newbery Airport is undertaking external works, sidewalks, landscaping, coastal landfill, and underground parking, with adjustments to international departure/arrival areas completed[209](index=209&type=chunk) - Posadas Airport has completed runway, taxiway, and platform rehabilitation, along with a new high-intensity beacon system[211](index=211&type=chunk) - Santa Rosa Airport has initiated runway, taxiway, and platform rehabilitation, a new beacon system, and passenger terminal renovation and expansion[211](index=211&type=chunk) [Equity Structure](index=41&type=section&id=Equity%20Structure) As of June 30, 2022, total assets were ARS 226.36 billion, total liabilities ARS 137.22 billion, and net equity attributable to majority shareholders ARS 89.13 billion, reflecting an increase in assets and liabilities but a slight decrease in equity year-over-year Consolidated Equity Structure (ARS thousands) | Indicator | June 30, 2022 | June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Current Assets | 34,491,369 | 17,295,175 | 20,869,835 | 24,936,834 | 29,423,265 | | Non-Current Assets | 191,865,039 | 196,866,533 | 204,049,955 | 185,267,897 | 161,708,454 | | **Total Assets** | **226,356,408** | **214,161,708** | **224,919,790** | **210,204,731** | **191,131,719** | | Current Liabilities | 33,203,364 | 45,931,355 | 34,680,317 | 26,738,005 | 16,239,603 | | Non-Current Liabilities | 104,021,136 | 79,020,023 | 85,965,071 | 67,670,117 | 81,578,171 | | **Total Liabilities** | **137,224,500** | **124,951,378** | **120,645,388** | **94,408,122** | **97,817,774** | | Net Equity Attributable to Majority Shareholders | 89,130,173 | 89,208,818 | 104,195,588 | 115,744,580 | 93,251,001 | | Non-Controlling Interests | 1,735 | 1,512 | 78,814 | 52,029 | 62,944 | | **Total Net Equity** | **89,131,908** | **89,210,330** | **104,274,402** | **115,796,609** | **93,313,945** | - Current assets reached **ARS 34,491,369 thousand** on June 30, 2022, a significant increase from **ARS 17,295,175 thousand** in the prior year period[221](index=221&type=chunk) - Non-current liabilities increased from **ARS 79,020,023 thousand** on June 30, 2021, to **ARS 104,021,136 thousand** on June 30, 2022[221](index=221&type=chunk) [Results Structure](index=42&type=section&id=Results%20Structure) For the six months ended June 30, 2022, gross profit was ARS 13.48 billion and operating profit ARS 11.74 billion, both significantly improved from the prior year, with net profit reaching ARS 20.11 billion, reversing previous losses Consolidated Statements of Comprehensive Income Summary (Six-Month Period, ARS thousands) | Indicator | June 30, 2022 | June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 13,481,650 | 1,388,571 | 1,442,861 | 20,325,743 | 21,587,078 | | Administrative, Distribution, and Marketing Expenses | (2,593,929) | (2,308,456) | (3,682,261) | (5,192,913) | (6,118,709) | | Other Net Income and Expenses | 850,523 | (872,095) | 725,034 | 1,235,014 | 1,134,914 | | Operating Profit | 11,738,244 | (1,791,980) | (1,514,366) | 16,367,844 | 16,603,283 | | Financial Income and Costs | 4,258,070 | 4,454,528 | (5,765,083) | 3,277,998 | (13,221,613) | | Impact of Changes in Purchasing Power of Money | 2,066,593 | (611,355) | (887,790) | (2,474,201) | (1,313,102) | | Income Before Tax | 18,060,548 | 2,051,193 | (8,167,239) | 17,171,641 | 2,068,568 | | Income Tax | 2,050,467 | (4,412,627) | 5,953,736 | 1,111,180 | (1,873,216) | | **Net Profit for the Period** | **20,111,015** | **(2,361,434)** | **(2,213,503)** | **18,282,821** | **195,352** | - Gross profit significantly increased from **ARS 1,388,571 thousand** on June 30, 2021, to **ARS 13,481,650 thousand** on June 30, 2022[224](index=224&type=chunk) - Operating profit shifted from a negative **ARS 1,791,980 thousand** on June 30, 2021, to a positive **ARS 11,738,244 thousand** on June 30, 2022[224](index=224&type=chunk) [Cash Flow Structure](index=42&type=section&id=Cash%20Flow%20Structure) For the six months ended June 30, 2022, operating activities resulted in a cash outflow of ARS 8.95 billion, investing activities a cash outflow of ARS 5.37 billion, and financing activities a cash inflow of ARS 11.65 billion, leading to a net decrease of ARS 2.66 billion in cash and cash equivalents Consolidated Statements of Cash Flows Summary (Six-Month Period, ARS thousands) | Indicator | June 30, 2022 | June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash Flow from Operating Activities | (8,948,756) | 2,128,735 | 4,536,768 | (6,389,425) | 4,582,977 | | Cash Flow from Investing Activities | (5,365,369) | 367,211 | 184,807 | 776,394 | (318) | | Cash Flow from Financing Activities | 11,653,779 | (6,542,621) | (4,773,754) | (4,107,823) | (2,364,881) | | **Net Change in Cash and Cash Equivalents for the Period** | **(2,660,346)** | **(4,046,675)** | **(52,179)** | **(9,720,854)** | **2,217,778** | - Cash flow from operating activities shifted from an inflow of **ARS 2,128,735 thousand** in the prior year period to an outflow of **ARS 8,948,756 thousand** in H1 2022[226](index=226&type=chunk) - Cash flow from financing activities shifted from an outflow of **ARS 6,542,621 thousand** in the prior year period to an inflow of **ARS 11,653,779 thousand** in H1 2022[226](index=226&type=chunk) [Analysis of Operations for Six-Month Periods Ended June 30, 2022 and 2021](index=43&type=section&id=Analysis%20of%20Operations%20for%20Six-Month%20Periods%20Ended%20June%2030%2C%202022%20and%202021) This section analyzes the company's operational performance for H1 2022 and 2021, showing significant total revenue growth driven by aeronautical recovery, increased costs, and improved net financial and other income/expenses - Total revenue in H1 2022 reached **ARS 37,129,731 thousand**, an **88.9% increase** compared to **ARS 19,655,665 thousand** in H1 2021[228](index=228&type=chunk) - Aeronautical revenue's share of total revenue increased from **27.90%** in H1 2021 to **49.29%** in H1 2022, with non-aeronautical revenue's share decreasing accordingly[228](index=228&type=chunk) - In H1 2022, cost of sales increased by **ARS 5,384,073 thousand**, administrative expenses increased by **ARS 442,924 thousand**, and distribution and marketing expenses decreased by **ARS 157,452 thousand**[229](index=229&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - Net financial income and costs shifted from an income of **ARS 4,454,529 thousand** in H1 2021 to an income of **ARS 4,258,070 thousand** in H1 2022, primarily impacted by foreign exchange exposure losses[233](index=233&type=chunk)[234](index=234&type=chunk) - Other net income and expenses shifted from a loss of **ARS 872,095 thousand** in H1 2021 to an income of **ARS 850,523 thousand** in H1 2022[235](index=235&type=chunk) [Revenue Analysis](index=43&type=section&id=Revenue%20Analysis) In H1 2022, total revenue reached ARS 37.13 billion, an 88.9% increase year-over-year, with aeronautical revenue significantly rising to 49.29% of total, primarily from airport usage fees Consolidated Revenue Composition (Six-Month Period, ARS thousands) | Revenue Type | June 30, 2022 | % Revenue | June 30, 2021 | % Revenue | | :--- | :--- | :--- | :--- | :--- | | Aeronautical Revenue | 18,300,885 | 49.29% | 5,483,012 | 27.90% | | Non-Aeronautical Revenue | 18,828,846 | 50.71% | 14,172,653 | 72.10% | | **Total** | **37,129,731** | **100.00%** | **19,655,665** | **100.00%** | Aeronautical Revenue Composition (Six-Month Period, ARS thousands) | Aeronautical Revenue Type | June 30, 2022 | % Revenue | June 30, 2021 | % Revenue | | :--- | :--- | :--- | :--- | :--- | | Landing Fees | 1,611,237 | 8.80% | 837,915 | 15.28% | | Parking Fees | 626,139 | 3.42% | 480,783 | 8.77% | | Airport Usage Fees | 16,063,509 | 87.77% | 4,164,314 | 75.95% | | **Total** | **18,300,885** | **100.00%** | **5,483,012** | **100.00%** | - Airport usage fees are the main component of aeronautical revenue, accounting for **87.77%** of aeronautical revenue in H1 2022[228](index=228&type=chunk) [Cost of Sales Analysis](index=43&type=section&id=Cost%20of%20Sales%20Analysis) In H1 2022, cost of sales increased by ARS 5.38 billion to ARS 23.66 billion compared to the prior year period Cost of Sales Movement (ARS thousands) | Item | Amount | | :--- | :--- | | Cost of Sales for the Period Ended June 30, 2022 | 23,659,375 | | Cost of Sales for the Period Ended June 30, 2021 | 18,275,302 | | **Change** | **5,384,073** | [Administrative Expenses Analysis](index=44&type=section&id=Administrative%20Expenses%20Analysis) In H1 2022, administrative expenses increased by ARS 442.92 million to ARS 1.47 billion compared to the prior year period Administrative Expenses Movement (ARS thousands) | Item | Amount | | :--- | :--- | | Administrative Expenses for the Period Ended June 30, 2022 | 1,474,553 | | Administrative Expenses for the Period Ended June 30, 2021 | 1,031,629 | | **Change** | **442,924** | [Distribution and Marketing Expenses Analysis](index=44&type=section&id=Distribution%20and%20Marketing%20Expenses%20Analysis) In H1 2022, distribution and marketing expenses decreased by ARS 157.45 million to ARS 1.12 billion compared to the prior year period Distribution and Marketing Expenses Movement (ARS thousands) | Item | Amount | | :--- | :--- | | Distribution and Marketing Expenses for the Period Ended June 30, 2022 | 1,119,376 | | Distribution and Marketing Expenses for the Period Ended June 30, 2021 | 1,276,828 | | **Change** | **(157,452)** | [Income and Financial Costs Analysis](index=44&type=section&id=Income%20and%20Financial%20Costs%20Analysis) In H1 2022, net financial income and costs resulted in a profit of ARS 4.26 billion, a decrease from the prior year's ARS 4.45 billion income, primarily due to foreign exchange exposure losses - In H1 2022, net financial income and costs resulted in a profit of **ARS 4,258,070 thousand**, a decrease from the prior year's income of **ARS 4,454,529 thousand**[233](index=233&type=chunk) - The change is primarily attributable to losses from foreign exchange exposure[234](index=234&type=chunk) [Other Incomes and Expenditures Analysis](index=44&type=section&id=Other%20Incomes%20and%20Expenditures%20Analysis) In H1 2022, other net income and expenses recorded a gain of ARS 850.52 million, a significant improvement from the prior year's ARS 872.10 million loss - In H1 2022, other net income and expenses recorded an income of **ARS 850,523 thousand**, a significant improvement from the prior year's loss of **ARS 872,095 thousand**[235](index=235&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2022, the group's total capitalization was ARS 182.30 billion, with financial debt accounting for 51.11%, an increase in the debt-to-capitalization ratio year-over-year - As of June 30, 2022, the group's total capitalization was **ARS 182,300,081 thousand**, comprising financial debt of **ARS 93,168,173 thousand** and net equity of **ARS 89,131,908 thousand**[236](index=236&type=chunk) - The debt-to-total capitalization ratio was approximately **51.11%** on June 30, 2022, an increase from **47.42%** on June 30, 2021[238](index=238&type=chunk) [Financial Ratios](index=45&type=section&id=Financial%20Ratios) As of June 30, 2022, the company's current ratio was 1.085, solvency ratio 0.664, capital immobilization ratio 0.848, and cost-efficiency ratio 0.223, showing improved liquidity and profitability year-over-year Key Financial Ratios | Indicator | June 30, 2022 | June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Liquidity (*) | 1.085 | 0.389 | 0.617 | 0.950 | 1.850 | | Solvency (*) | 0.664 | 0.732 | 0.878 | 1.240 | 0.960 | | Capital Immobilization | 0.848 | 0.919 | 0.907 | 0.880 | 0.850 | | Cost-Efficiency | 0.223 | (0.026) | (0.021) | 0.171 | 0.002 | - The liquidity ratio significantly increased from **0.389** on June 30, 2021, to **1.085** on June 30, 2022, indicating a notable improvement in liquidity[240](index=240&type=chunk) - The cost-efficiency ratio shifted from a negative **0.026** on June 30, 2021, to a positive **0.223** on June 30, 2022, demonstrating enhanced profitability[240](index=240&type=chunk) [Statistical Data](index=45&type=section&id=Statistical%20Data) For the six months ended June 30, 2022, total passenger traffic across the company's airport system reached 14.28 million, a 231.4% increase year-over-year, with aircraft movements totaling 168,679, reflecting strong aviation recovery Passenger Traffic (thousands of passengers) | Airport | June 30, 2022 | June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Aeroparque | 5,714 | 820 | 2,292 | 6,231 | 6,616 | | Ezeiza | 3,098 | 1,840 | 2,878 | 6,112 | 5,189 | | Córdoba | 963 | 234 | 697 | 1,810 | 1,683 | | Bariloche | 890 | 377 | 433 | 741 | 615 | | Mendoza | 754 | 220 | 431 | 1,165 | 929 | | Salta | 565 | 169 | 325 | 668 | 480 | | Iguazú | 513 | 101 | 352 | 739 | 445 | | Tucumán | 320 | 104 | 178 | 471 | 454 | | Jujuy | 213 | 66 | 81 | 195 | 202 | | C. Rivadavia | 191 | 63 | 123 | 328 | 309 | | **Total (Top Ten Airports)** | **13,221** | **3,994** | **7,790** | **18,460** | **16,922** | | **Total (All Airports)** | **14,275** | **4,308** | **8,802** | **20,531** | **18,378** | | **Change** | **231.4%** | **(51.1)%** | **(57.1)%** | **11.7%** | **8.8%** | Aircraft Movements (movements) | Airport | June 30, 2022 | June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | :--- | | Aeroparque | 46,777 | 10,057 | 22,100 | 56,928 | 65,177 | | San Fernando | 29,456 | 21,653 | 11,749 | 20,579 | 20,541 | | Ezeiza | 22,189 | 19,416 | 22,245 | 41,770 | 36,236 | | Córdoba | 9,841 | 3,790 | 6,638 | 16,360 | 16,581 | | Mendoza | 7,299 | 3,000 | 4,622 | 11,349 | 9,846 | | Bariloche | 6,838 | 3,951 | 3,435 | 6,131 | 5,893 | | Salta | 5,480 | 2,298 | 3,280 | 6,754 | 5,249 | | Iguazú | 4,092 | 1,282 | 3,359 | 6,191 | 4,182 | | Mar del Plata | 3,156 | 1,949 | 2,180 | 4,605 | 5,314 | | Tucumán | 2,794 | 1,441 | 1,682 | 4,530 | 4,920 | | C. Rivadavia | 2,756 | 2,292 | 2,657 | 5,010 | 4,916 | | **Total (Top Ten Airports)** | **140,678** | **71,129** | **83,947** | **180,207** | **178,855** | | **Total (All Airports)** | **168,679** | **89,233** | **101,679** | **212,475** | **208,590** | | **Change** | **89.0%** | **(12.2)%** | **(52.1)%** | **1.9%** | **8.3%** | - In H1 2022, total passenger traffic increased by **231.4%** year-over-year, with Aeroparque Airport recording the highest passenger volume at **5,714 thousand**[241](index=241&type=chunk) - In H1 2022, aircraft movements increased by **89.0%** year-over-year, with Aeroparque Airport recording the highest number of movements at **46,777**[243](index=243&type=chunk) [Outlook for 2022](index=47&type=section&id=Outlook%20for%202022) The company anticipates continued recovery in international and domestic passenger traffic for the remainder of 2022, driven by high vaccination rates and eased travel restrictions, while maintaining strict cost control and financial measures - In H1 2022, international passenger traffic recovered to nearly **70%** of 2019 levels, and domestic traffic recovered to **83%**[245](index=245&type=chunk) - Passenger traffic is expected to continue consolidating its recovery trend for the remainder of 2022, primarily due to high vaccination rates, border reopenings, and eased travel restrictions[246](index=246&type=chunk) - The company will continue to strictly control operating costs to manage passenger volume recovery and implement financial measures to strengthen its cash position and fulfill commitments[247](index=247&type=chunk) [Review Reports](index=48&type=section&id=Review%20Reports) [Report on Review of Condensed Consolidated Interim Financial Statements](index=48&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Price Waterhouse & Co. S.R.L. reviewed AA2000's condensed consolidated interim financial statements for June 30, 2022, finding no material non-compliance with IAS 34, though noting the statements are not yet recorded in the 'Inventory and Balance Sheet' - The scope of the review is less than an audit, therefore no audit opinion is expressed[253](index=253&type=chunk) - Based on the review, no material non-compliance with **International Accounting Standard 34** was identified[256](index=256&type=chunk) - The financial statements have not yet been recorded in the "Inventory and Balance Sheet"[257](index=257&type=chunk) - As of June 30, 2022, the company's accrued and unpaid debt to the Argentine Integrated Social Security System was **ARS 403,271,282**[257](index=257&type=chunk) [Surveillance Committee Report](index=50&type=section&id=Surveillance%20Committee%20Report) The Surveillance Committee reviewed AA2000's interim financial statements for June 30, 2022, confirming compliance with legal provisions and consideration of all known material events, while noting the statements are not yet recorded in the 'Inventory and Balance Sheet' - The Surveillance Committee reviewed the financial statements in accordance with legal requirements and referenced the external auditor's report[261](index=261&type=chunk)[263](index=263&type=chunk) - The Surveillance Committee did not perform management control, as management's business decisions are the sole responsibility of the Board of Directors[265](index=265&type=chunk) - The Surveillance Committee confirmed that the financial statements consider all known material events and circumstances and comply with legal provisions, but are not yet recorded in the "Inventory and Balance Sheet"[266](index=266&type=chunk)

Corporación América Airports S.A. (NYSE:CAAP) Q1 2022 Earnings Conference Call May 18, 2022 10:00 AM ET Company Participants Patricio Inaki Esnaola - Head, IR Martin Eurnekian - CEO Jorge Arruda - CFO Conference Call Participants Operator Good morning and welcome to the Corporación América Airports First Quarter 2022 Earnings Conference Call. A slide presentation accompanies today's webcast and is available in the Investors section of the Corporación América Airports Investor Relations website. As a reminde ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ OR ☐ SHELL COMPANY REPORT PURSU ...

Corporacion America Airports SA (NYSE:CAAP) Q4 2021 Earnings Conference Call March 23, 2022 10:00 AM ET Company Participants Patricio Inaki Esnaola - Head, IR Martin Eurnekian - CEO & Director Jorge Arruda - CFO Conference Call Participants Alejandro Demichelis - Nau Securities Limited Bruno Amorim - Goldman Sachs Group Operator Good morning, and welcome to Corporación América Airports Fourth Quarter 2021 Earnings Conference Call. A slide presentation accompanies today's webcast and is available in the Inve ...

AeropuertosArgentina2000S .A . AnnualReportandInd ividualF inancialStatem ents A tDecember31, 2021presentedincomparativeformat Exh ib it99 .2 Aeropuertos Argentina 2000 S.A. Registration number with the Superintendency of Corporations: 1645890 ANNUAL REPORT PRESIDENT´S LETTER As every year, we present the performance and the main actions implemented in the year by Aeropuertos Argentina 2000 S.A. (hereafter the "Company" or "AA2000") to the people, institutions, companies and organizations with which the Com ...

Financial Data and Key Metrics Changes - Traffic across operations reached 10.5 million passengers, up 90% sequentially, and 46% of pre-pandemic levels compared to Q3 2019 [7] - Revenues excluding IFRIC more than doubled year-on-year to nearly $170 million, up 38% sequentially, reaching 55% of Q3 2019 levels [9] - Comparable adjusted EBITDA improved to $38 million from $7 million in the prior quarter and a loss of $19 million in Q3 2020 [10][28] - Total liquidity position at the end of the quarter was $297 million, with total debt stable at $1.3 billion [37] Business Line Data and Key Metrics Changes - Aeronautical revenues increased over two times year-on-year, reaching 39% of pre-pandemic levels [24] - Commercial revenues reached 70% of 2019 levels, with cargo revenues increasing by 10% versus 2019 [25] - Cargo activity reached 82% of pre-pandemic levels, with Uruguay and Italy exceeding 2019 cargo volume levels [9][23] Market Data and Key Metrics Changes - Argentina and Uruguay were heavily impacted by government travel restrictions, while traffic in Brazil and Armenia showed significant recovery [8][19] - Passenger traffic in Italy was up over 85% year-on-year, reaching 50% of Q3 2019 levels [17] - Traffic in Brazil more than doubled year-on-year, reaching 74% of the corresponding quarter in 2019 [18] Company Strategy and Development Direction - The company has taken steps to strengthen liquidity and improve the debt profile, refinancing $425 million in existing debt and obtaining $179 million in new funding [11] - A 20-year extension of the Carrasco International airport concession in Uruguay was obtained, adding six regional airports [12][30] - The company is focused on economic re-equilibrium processes across concessions to restore equity value [40] Management's Comments on Operating Environment and Future Outlook - Management expects passenger dynamics to continue improving as the summer season approaches, supported by lower travel restrictions and pent-up demand [39] - The company remains cautious about the pandemic's impact and is monitoring COVID-19 cases in Europe [39] - Long-term expectations include sustained traffic growth and a focus on new business opportunities [40][42] Other Important Information - The company achieved positive adjusted EBITDA in all countries of operations except Peru, with margins above 2019 levels in Ecuador and Armenia [28] - The company has maintained compliance with debt covenants, with no direct indebtedness at the corporate level [37] Q&A Session Summary Question: Details on Uruguay concession extension and future traffic revenues - Management indicated that investments are required to bring new airports to certification levels, with a planned investment of $67 million over four years [47][49] Question: Outlook for dividends post-COVID crisis - Management stated it is too early to determine dividend policies but indicated a return to pre-COVID dividend ideas is likely [50] Question: Expectations for cost dynamics in the coming quarters - Management expects higher operating expenses as traffic levels normalize but anticipates a better cost base post-pandemic [53]

Corporación América Airports S.A. Third Quarter 2021 Earnings Call Presentation 1 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 are not historical facts and can be identified by terms such as "believes," "continue," "could," "potential," "remain," "will," "would" or similar expres ...

[Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Index and Company Information](index=2&type=section&id=Index) This section lists the financial statements included in the report, defines key currencies, and provides essential company registration details, including its legal address, principal activity, and share capital structure - Aeropuertos Argentina 2000 S.A. (AA2000) is registered under number 1645890, primarily engaged in airport exploitation, administration, and operation[4](index=4&type=chunk)[6](index=6&type=chunk) Issued and Paid-in Share Capital | Issued Shares | Subscribed $ | Paid-in | | :----------------------------------------------------------------------- | :-------------- | :------------ | | 79,105,489 Class "A" common shares of AR$ 1 par value and 1 vote each | 79,105,489 | 79,105,489 | | 79,105,489 Class "B" common shares of AR$ 1 par value and 1 vote each | 79,105,489 | 79,105,489 | | 61,526,492 Class "C" common shares of AR$ 1 par value and 1 vote each | 61,526,492 | 61,526,492 | | 38,779,829 Class "D" common shares of AR$ 1 par value and 1 vote each | 38,779,829 | 38,779,829 | | 910,978,514 Preferred shares of AR$ 1 par value with no voting rights | 910,978,514 | 910,978,514 | | **Total** | **1,169,495,813** | **1,169,495,813** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Consolidated Statements of Comprehensive Income show a significant improvement in net income for the three-month period ended September 30, 2021, compared to the prior year, though the nine-month period still reflects a net loss, albeit substantially reduced Consolidated Statements of Comprehensive Income (in $) | Metric | Three Months at 09.30.2021 | Three Months at 09.30.2020 | Nine Months at 09.30.2021 | Nine Months at 09.30.2020 | | :------------------------------------------ | :------------------------- | :------------------------- | :------------------------ | :------------------------ | | Revenue | 6,506,850,270 | 4,030,540,583 | 19,523,257,186 | 23,208,647,257 | | Operating profit | (645,605,318) | (4,144,143,339) | (1,832,293,438) | (5,148,345,133) | | Income before income tax | 861,928,649 | (6,488,822,845) | 2,220,273,550 | (11,904,658,897) | | Net Income for the period | 808,946,090 | (6,042,420,976) | (754,846,371) | (7,510,232,729) | | Income per share basic and diluted (in $) | 2.8469 | (23.6525) | (3.76710) | (29.8831) | - Net Income for the nine-month period significantly improved from a loss of **$7.51 billion** in 2020 to a loss of **$754.8 million** in 2021[10](index=10&type=chunk) [Consolidated Statements of Financial Position](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The Consolidated Statements of Financial Position show a decrease in total assets and liabilities as of September 30, 2021, compared to December 31, 2020, with a slight reduction in total shareholders' equity Consolidated Statements of Financial Position (in $) | Metric | 09.30.2021 $ | 12.31.2020 $ | | :--------------------------- | :---------------- | :---------------- | | Total Non-Current Assets | 129,570,291,549 | 133,153,639,318 | | Total Current Assets | 9,887,753,750 | 16,434,881,171 | | **Total Assets** | **139,458,045,299** | **149,588,520,489** | | Total Shareholders' Equity | 59,871,003,697 | 60,625,850,068 | | Total Non-Current Liabilities| 48,407,715,940 | 58,252,270,912 | | Total Current Liabilities | 31,179,325,662 | 30,710,399,509 | | **Total Liabilities** | **79,587,041,602** | **88,962,670,421** | - Total Assets decreased by approximately **$10.1 billion** from December 31, 2020, to September 30, 2021[13](index=13&type=chunk) - Total Liabilities decreased by approximately **$9.4 billion** over the same period[13](index=13&type=chunk) [Consolidated Statements of Changes in Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) The Consolidated Statements of Changes in Equity illustrate the movements in the company's equity for the nine-month periods ended September 30, 2021 and 2020, primarily reflecting the impact of net income for the period on retained earnings Consolidated Statements of Changes in Equity (in $) | Equity Component | Balance at 01.01.21 | Net Income for the period | Balance at 09.30.2021 | | :---------------------------- | :------------------ | :------------------------ | :-------------------- | | Capital Stock Common Shares | 258,517,299 | - | 258,517,299 | | Capital Stock Preferred Shares| 910,978,514 | - | 910,978,514 | | Share Premium | 137,280,595 | - | 137,280,595 | | Adjustment of capital | 22,436,671,286 | - | 22,436,671,286 | | Legal Reserve | 1,588,849,678 | - | 1,588,849,678 | | Facultative Reserve | 45,350,624,545 | - | 45,350,624,545 | | Other Reserves | 205,896,811 | - | 205,896,811 | | Retained Earnings | (10,263,898,728) | (755,030,152) | (11,018,928,880) | | Total Shareholders' Equity | 60,625,850,068 | (754,846,371) | 59,871,003,697 | - Total Shareholders' Equity decreased by **$754.8 million** during the nine-month period ended September 30, 2021, primarily due to the net loss for the period[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) The Consolidated Statements of Cash Flows indicate a significant net cash outflow from financing activities in 2021, leading to an overall net decrease in cash and cash equivalents, despite positive cash flow from operating activities Consolidated Statements of Cash Flows (in $) | Cash Flow Activity | 09.30.2021 $ | 09.30.2020 $ | | :------------------------------------------------ | :---------------- | :---------------- | | Net income for the period | (754,846,371) | (7,510,232,729) | | Net cash generated by operating activities | 1,670,299,627 | 3,724,751,642 | | Net Cash Flow generated by investing activities | 1,066,709,408 | 122,962,332 | | Net Cash (used in) generated by financing activities | (6,173,454,265) | 524,812,630 | | Net (decrease) /Increase in cash and cash equivalents | (3,436,445,230) | 4,372,526,604 | | Cash and cash equivalents at the end of the period | 3,797,012,128 | 8,477,079,405 | - Net cash generated by operating activities decreased by **55.1%** from **$3.72 billion** in 2020 to **$1.67 billion** in 2021[19](index=19&type=chunk) - Financing activities shifted from generating **$524.8 million** in 2020 to using **$6.17 billion** in 2021, primarily due to increased financial debt payments[19](index=19&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [NOTE 1 – Company Activities](index=8&type=section&id=NOTE%201%20%E2%80%93%20COMPANY%20ACTIVITIES) Aeropuertos Argentina 2000 S.A. (AA2000) operates 35 airports in Argentina under a concession agreement, which was extended to February 13, 2038. The agreement maintains exclusivity in the Metropolitan Region of Buenos Aires and for fiscal warehouses, while the National Government retains a buyout right with compensation - AA2000 holds concession rights for the operation, administration, and exploitation of 35 airports in Argentina[21](index=21&type=chunk)[22](index=22&type=chunk) - The concession period was extended to February 13, 2038, maintaining exclusivity in the Metropolitan Region of Buenos Aires and for fiscal warehouses nationwide[23](index=23&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - The Argentine National Government has the right to buyout the concession as of February 13, 2018, with a requirement to pay compensation to the Company[27](index=27&type=chunk) [NOTE 2 - Basis for Consolidation](index=9&type=section&id=NOTE%202%20-%20BASIS%20FOR%20CONSOLIDATION) The condensed consolidated interim financial statements include AA2000 and its subsidiaries, where the Company exercises control through majority ownership or administrative influence, ensuring consistent application of accounting policies across the Group - The Group consolidates subsidiaries where AA2000 has control, including Servicios y Tecnología Aeroportuarios S.A. (**99.30% ownership**), Cargo & Logistics SA (**98.63% ownership**), and Paoletti América S.A. (**50% ownership** with administrative control)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) Subsidiaries and Ownership (in $) | Subsidiaries (1) | Number of common shares | in capital and possible votes | Book entry value at 09.30.2021 | Net Shareholders 'equity at closing $ | Income for the period | | :------------------------------- | :---------------------- | :---------------------------- | :----------------------------- | :------------------------------------ | :-------------------- | | Servicios y Tecnología Aeroportuarios S.A. (2) | 14,398,848 | 99.30% | 150,670,496 | 151,728,192 | 29,540,408 | | Cargo & Logistics SA. | 1,637,116 | 98.63% | 2,509,880 | 2,544,743 | (1,127,874) | | Paoletti América S.A. | 6,000 | 50.00% | 15,526 | 31,051 | (5,585) | [NOTE 3 – Accounting Policies](index=10&type=section&id=NOTE%203%20%E2%80%93%20ACCOUNTING%20POLICIES) The financial statements are presented in Argentine Pesos, prepared under IFRS and IAS 34, and consistently apply accounting policies from the prior annual statements. A key aspect is the mandatory application of IAS 29 for hyperinflationary economies since July 1, 2018, requiring restatement of non-monetary items and equity to reflect inflation - The financial statements are presented in Argentine Pesos and prepared in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standard (IAS) No. 34 'Intermediate Financial Information'[35](index=35&type=chunk)[38](index=38&type=chunk) - Argentina has been classified as a hyperinflationary economy under IAS 29 since July 1, 2018, due to a cumulative inflation rate exceeding **100%** over three years[56](index=56&type=chunk) - In accordance with IAS 29, non-monetary assets, liabilities, and equity accounts are restated using general price indices to reflect the effects of inflation, with the coefficient for the nine-month period ended September 30, 2021, being **1.3068**[60](index=60&type=chunk)[61](index=61&type=chunk)[66](index=66&type=chunk) [NOTE 4 – Breakdown of Certain Items of Financial Position and Comprehensive Income](index=16&type=section&id=NOTE%204%20%E2%80%93%20BREAKDOWN%20OF%20CERTAIN%20ITEMS%20OF%20THE%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION%20AND%20THE%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) This note provides detailed breakdowns of various asset and liability accounts from the Consolidated Statements of Financial Position, including receivables, investments, cash, and payables. It also elaborates on revenue composition (aeronautical vs. non-aeronautical), other net income/expenses, and finance income/costs from the Consolidated Statements of Comprehensive Income Financial Position Items (in $) | Item | 09.30.2021 $ | 12.31.2020 $ | | :--------------------------------- | :---------------- | :---------------- | | Other non-current receivables | 5,729,405,159 | 8,276,950,017 | | Other current receivables | 1,895,212,436 | 3,541,501,899 | | Trade receivables, net | 2,921,702,119 | 3,242,208,800 | | Investments | 1,273,827,067 | 2,692,664,643 | | Cash and cash equivalents | 3,797,012,128 | 6,958,505,829 | | Accounts payable and other non-current | 824,620,247 | 1,007,128,021 | | Accounts payable and other current | 8,363,439,137 | 13,445,590,163 | Comprehensive Income Items (in $) | Revenues | Nine Months at 09.30.2021 | Nine Months at 09.30.2020 | | :------------------------ | :------------------------ | :------------------------ | | Aeronautical revenues | 5,342,466,791 | 10,663,873,205 | | Non-Aeronautical revenues | 14,180,790,395 | 12,544,774,052 | | **Total Revenues** | **19,523,257,186** | **23,208,647,257** | | Other net incomes and expenses | (829,000,259) | 319,933,414 | | Finance Income | 713,038,377 | 1,526,524,155 | | Finance Costs | 3,142,364,516 | (6,391,498,633) | | Income Tax | (2,975,119,921) | 4,394,426,168 | [NOTE 5 – Intangible Assets](index=18&type=section&id=NOTE%205%20%E2%80%93%20INTANGIBLE%20ASSETS) This note details the changes in intangible assets, showing an increase in original values and accumulated amortization for the nine-month period ended September 30, 2021, compared to the beginning of the year Intangible Assets (in $) | Intangible Assets | 09.30.2021 $ | 2020 $ | | :------------------------ | :---------------- | :---------------- | | Balance at January 1 | 186,458,032,038 | 175,805,232,196 | | Acquisitions of the period| 4,102,150,601 | 8,468,728,710 | | Balance at September 30 | 190,560,182,639 | 184,273,960,906 | | Accumulated Amortization: | | | | Balance at January 1 | (62,446,977,661) | (50,298,948,790) | | Amortization of the period| (4,914,977,133) | (9,736,747,772) | | Balance at September 30 | (67,361,954,794) | (60,035,696,562) | - Original values of intangible assets increased by **$4.10 billion** during the nine-month period ended September 30, 2021[83](index=83&type=chunk) [NOTE 6 – Financial Debts](index=18&type=section&id=NOTE%206%20%E2%80%93%20FINANCIAL%20DEBTS) This note provides a comprehensive overview of the company's financial debts, detailing non-current and current bank borrowings and negotiable obligations. It highlights significant debt refinancing activities, new loan agreements, and extensions undertaken during 2020 and 2021 to manage liquidity and capital structure, particularly in response to economic conditions Financial Debts Composition (in $) | Financial Debts Composition | 09.30.2021 $ | 31.12.2020 $ | | :-------------------------- | :---------------- | :---------------- | | Non-current | | | | Bank borrowings | 3,285,507,963 | 6,571,099,124 | | Negotiable Obligations | 30,131,799,298 | 40,502,951,851 | | Total Non-Current | 33,118,425,235 | 46,607,433,874 | | Current | | | | Bank borrowings | 7,430,877,451 | 8,369,589,179 | | Negotiable Obligations | 9,853,708,606 | 5,538,436,971 | | Total Current | 17,196,144,427 | 13,808,281,352 | | **Total** | **50,314,569,662** | **60,415,715,226** | Breakdown of Financial Debts (in $) | Breakdown of Financial Debts | 2021 $ | 2020 $ | | :--------------------------- | :---------------- | :---------------- | | Balance at January 1 | 60,415,715,226 | 54,344,291,232 | | New financial debts | 6,956,876,413 | 7,187,544,812 | | Financial debts paid | (12,883,397,934) | (6,354,967,946) | | Accrued interest | 4,498,599,676 | 3,174,849,092 | | Foreign Exchange differences | (7,850,181,847) | 2,038,415,099 | | Inflation adjustment | (823,041,872) | 104,085,853 | | Net Balance at September 30 | 50,314,569,662 | 60,494,218,142 | - The company expanded its Global Program for the Issuance of Negotiable Obligations from **US$500 million** to **US$1.5 billion** in June 2021[90](index=90&type=chunk) - Multiple loan agreements were signed and refinanced with various banks, including deferrals of capital amortization installments and new loans to cover existing debt payments, particularly in 2020 and 2021[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [NOTE 7 – Balances and Transactions with Related Parties](index=24&type=section&id=NOTE%207%20%E2%80%93%20BALANCES%20AND%20TRANSACTIONS%20WITH%20RELATED%20PARTIES) This note details the balances and transactions with related parties, including trade receivables, other receivables, accounts payable, and provisions. It also identifies Corporación América S.A. as the immediate controlling entity and Southern Cone Foundation as the ultimate beneficiary Related Party Balances (in $) | Related Party Balances | 09.30.2021 $ | 12.31.2020 $ | | :---------------------------- | :----------- | :----------- | | Trade receivables net- Current| 134,483,136 | 106,852,961 | | Other current receivables | 63,701,846 | 35,303,504 | | Accounts payable and other- Current | 206,956,125 | 322,384,148 | | Provisions and other charges | 220,807,088 | 255,954,630 | - Short-term compensation to key management increased from **$71.9 million** in 2020 to **$91.4 million** in 2021 for the nine-month periods[126](index=126&type=chunk) - Corporación América S.A. is the immediate controlling entity (**45.90% direct, 29.75% indirect ownership**), and Southern Cone Foundation is the ultimate beneficiary of the Company[126](index=126&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) [NOTE 8 – Bad Debt Provisions](index=25&type=section&id=NOTE%208%20%E2%80%93%20BAD%20DEBT%20PROVISIONS) This note outlines the changes in the bad debt provision, showing a decrease in the final balance at September 30, 2021, compared to the initial balance, influenced by increases, usage, and inflation adjustments Bad Debt Provisions (in $) | Bad Debt Provisions | 2021 $ | 2020 $ | | :---------------------------- | :------------ | :------------ | | Initial balance at January 1 | 4,791,494,790 | 4,183,038,687 |\ | Increases (*) | 779,064,936 | 1,380,795,664 |\ | Usage | (2,429,666) | (35,041,613) |\ | Inflation adjustment | (1,363,167,775)| (882,888,194) |\ | Final Balance at September 30 | 4,204,962,285 | 4,645,904,544 | - The final balance of bad debt provisions decreased by **$586.5 million** from January 1, 2021, to September 30, 2021[130](index=130&type=chunk) [NOTE 9 – Provisions and Other Charges](index=26&type=section&id=NOTE%209%20%E2%80%93%20PROVISIONS%20AND%20OTHER%20CHARGES) This note provides a detailed breakdown of various provisions and other charges, including litigations, deferred income, trust for works, guarantees received, upfront fees, and dividends payable, showing their evolution and current/non-current classification Provisions and Other Liabilities (in $) | Provision Item | At January 1 2021 $ | Increases / (Recovery) $ | Decreases $ | Inflation Adjustment $ | Accruals $ | Exchange rate differences $ | At September 30, 2021 $ | Total Non Current $ | Total current $ | | :---------------------------- | :------------------ | :----------------------- | :---------- | :--------------------- | :--------- | :-------------------------- | :---------------------- | :------------------ | :-------------- | | Litigations Related Parties | 105,913,826 | 728,101,554 | (51,584,595)| (151,421,175) | - | 39,625,046 | 670,634,656 | 356,258,528 | 314,376,128 | | Deferred Income | 1,417,530,538 | 566,374,998 | - | (137,510,193) | (423,703,304)| 48,318,564 | 1,471,010,603 | 560,826,115 | 910,184,488 | | Trust for works | 1,597,880,014 | 405,778,952 | - | (484,980,233) | 220,840,911| - | 1,739,519,644 | 1,289,586,133 | 449,933,511 | | Guarantees Received | 173,409,264 | 41,242,556 | (30,616,506)| (34,864,286) | - | 7,529,194 | 156,700,222 | - | 156,700,222 | | Upfront fees from Concessionaires | 244,102,598 | 45,091,293 | - | - | (55,514,046)| - | 233,679,845 | 173,152,797 | 60,527,048 | | Dividends to be paid | 255,375,058 | - | - | (73,387,084) | - | 38,392,865 | 220,380,839 | - | 220,380,839 | | Others | - | 577,570,541 | - | (40,646,199) | - | 11,270,379 | 548,194,721 | 307,417,218 | 240,777,503 | | **Total of provisions and other liabilities** | **3,794,790,870** | **2,364,159,894** | **(82,201,101)**| **(922,962,493)** | **(258,376,439)**| **145,136,048** | **5,040,546,779** | **2,687,240,791** | **2,353,305,988** | - Total provisions and other liabilities increased by **$1.25 billion** from January 1, 2021, to September 30, 2021[133](index=133&type=chunk) [NOTE 10 - Costs of Sales, Administrative, Distribution, and Selling Expenses](index=27&type=section&id=NOTE%2010%20-%20COSTS%20OF%20SALES%2C%20ADMINISTRATIVE%2C%20DISTRIBUTION%2C%20AND%20SELLING%20EXPENSES) This note presents a detailed breakdown of costs of sales, administrative expenses, and selling expenses for the nine-month periods ended September 30, 2021 and 2020, highlighting significant components such as specific allocation of revenues, airport services, amortization, and salaries Costs of Sales, Administrative, and Selling Expenses (Nine months ended 09.30.2021, in $) | Item (Nine month period ended at 09.30.2021) | Cost of sales $ | selling expenses $ | Administrative expenses $ | Total $ | | :------------------------------------------- | :---------------- | :----------------- | :------------------------ | :-------------- | | Specific allocation of revenues | 2,882,289,985 | - | - | 2,882,289,985 | | Airport services and maintenance | 3,992,959,327 | - | 1,239,928 | 3,994,199,255 | | Amortization of intangible assets | 4,872,466,913 | 1,217,958 | 41,292,262 | 4,914,977,133 | | Salaries and social security contributions | 4,823,105,803 | 39,380,494 | 510,138,697 | 5,372,624,994 | | Taxes | 200,483,503 | 1,044,859,575 | 218,499,471 | 1,463,842,549 | | Bad debts charges | - | 166,211,599 | - | 166,211,599 | | **Total at 09.30.2021** | **18,233,101,776**| **1,275,603,327** | **1,025,934,843** | **20,534,639,946**| Costs of Sales, Administrative, and Selling Expenses (Nine months ended 09.30.2020, in $) | Item (Nine month period ended at 09.30.2020) | Cost of sales $ | selling expenses $ | Administrative expenses $ | Total $ | | :------------------------------------------- | :---------------- | :----------------- | :------------------------ | :-------------- | | Specific allocation of revenues | 3,436,124,480 | - | - | 3,436,124,480 | | Airport Services and maintenance | 5,483,240,309 | - | 74,690,629 | 5,557,930,938 | | Amortization of intangible assets | 9,587,955,393 | 4,242,681 | 144,549,698 | 9,736,747,772 | | Salaries and social security contributions | 5,296,882,964 | 73,078,326 | 581,420,310 | 5,951,381,600 | | Taxes | 257,577,995 | 1,154,764,426 | 244,438,497 | 1,656,780,918 | | Bad debts charges | - | 481,028,238 | - | 481,028,238 | | **Total at 09.30.2020** | **25,651,089,059**| **1,743,333,652** | **1,294,455,934** | **28,688,878,645**| - Total costs of sales, administrative, and selling expenses decreased by approximately **$8.15 billion** from **$28.69 billion** in 2020 to **$20.53 billion** in 2021[135](index=135&type=chunk) [NOTE 11- Foreign Currency Assets and Liabilities](index=28&type=section&id=NOTE%2011-%20FOREIGN%20CURRENCY%20ASSETS%20AND%20LIABILITIES) This note details the company's foreign currency denominated assets and liabilities, primarily in US Dollars and Euros, as of September 30, 2021, and December 31, 2020, showing a net liability position in foreign currency Foreign Currency Assets and Liabilities (in $) | Item | 09.30.2021 $ | 12.31.2020 $ | | :---------------------------------- | :---------------- | :---------------- | | Total current assets | 3,936,100,459 | 5,824,302,629 | | Total assets | 3,936,100,459 | 5,824,302,629 | | Total current liabilities | 17,716,953,576 | 18,265,199,613 | | Total non-current liabilities | 34,102,001,102 | 47,444,364,156 | | Total liabilities | 51,818,954,678 | 65,709,563,769 | | Net liability position | 47,882,854,219 | 59,885,261,140 | - The company's net foreign currency liability position decreased from **$59.89 billion** at December 31, 2020, to **$47.88 billion** at September 30, 2021[137](index=137&type=chunk) [NOTE 12 – Other Restricted Assets](index=28&type=section&id=NOTE%2012%20%E2%80%93%20OTHER%20RESTRICTED%20ASSETS) This note highlights other restricted assets, specifically guarantees granted to third parties in connection with lease agreements and fixed-term placements used as collateral - Other receivables in current assets include **$1.25 million** (Sep 30, 2021) and **$1.71 million** (Dec 31, 2020) corresponding to guarantees granted to third parties in connection with lease agreements[137](index=137&type=chunk) - As of December 31, 2020, the Investments item included **$251.13 million** corresponding to fixed-term placements granted as collateral[137](index=137&type=chunk) [NOTE 13 - Capital Stock](index=28&type=section&id=NOTE%2013%20-%20CAPITAL%20STOCK) This note details the composition of the company's capital stock, consisting of common shares and preferred non-voting shares, and outlines the specific voting rights of preferred shares under certain conditions Capital Stock (in $) | Capital Stock Item | Par Value $ | | :----------------- | :---------------- | | Paid-in and subscribed | 1,169,495,813 | | Registered with the Public Registry of Commerce | 1,006,046,708 | - The Company's capital stock is comprised of **258.5 million** common shares of **$1 par value** and **911.0 million** preferred non-voting shares of **$1 par value**[139](index=139&type=chunk) - Preferred shares will have voting rights on matters such as partial or total capital reimbursement, during periods when preferred shareholder benefits are granted but not received, and for the appointment of directors and syndics[139](index=139&type=chunk) [NOTE 14 - Dividends by Preferred Shares](index=29&type=section&id=NOTE%2014%20-%20DIVIDENDS%20BY%20PREFERRED%20SHARES) This note explains the accrual and payment conditions for preferential dividends, noting that dividends for fiscal year 2020 and the nine-month period ended September 30, 2021, are accumulated and will be paid when the company generates realized and liquid profit - The preferential dividend accrued for fiscal year ended December 31, 2020, amounting to **$237.8 million**, will be accumulated and paid in the first fiscal year with a realized and liquid profit[141](index=141&type=chunk) - The preferential dividend accrued for the nine-month period ended September 30, 2021, is **$219.0 million** and will be recorded upon approval by the Shareholders' Meeting[142](index=142&type=chunk) [NOTE 15 – Resolutions of Shareholders' Ordinary and Special Meeting](index=29&type=section&id=NOTE%2015%20%E2%80%93%20RESOLUTIONS%20OF%20SHAREHOLDERS'%20ORDINARY%20AND%20SPECIAL%20MEETING) This note summarizes key resolutions from the Shareholders' meetings in April 2020 and April 2021, including the allocation of 2019 results to legal reserve, preferred share dividends (payable in preferred shares), and an optional reserve for future works. It also notes the resolution to carry forward the negative result of 2020 and defer preferred share dividends until liquid gains are available - The April 22, 2020, meeting resolved to allocate 2019 results: **$318.5 million** for legal reserve, **$163.4 million** for preferred share dividends (payable in preferred shares), and **$5.89 billion** for an optional reserve for future works[142](index=142&type=chunk) - The 2020 meeting also approved increasing share capital by **$163.4 million** through the issuance of **163.4 million** preferred shares to the National State[143](index=143&type=chunk)[145](index=145&type=chunk) - The April 20, 2021, meeting resolved to carry forward the negative result of **($7.59 billion)** for 2020 and defer the payment of preferred share dividends (**$237.8 million**) until the company has realized and liquid gains[146](index=146&type=chunk)[147](index=147&type=chunk) [NOTE 16 – Earnings Per Share](index=30&type=section&id=NOTE%2016%20%E2%80%93%20EARNINGS%20PER%20SHARE) This note explains the calculation of earnings per share, which is derived from net income less accrued preferred share dividends, divided by the number of common shares, and provides the basic and diluted EPS for the periods Earnings Per Share (in $) | Metric | 09.30.2021 | 09.30.2020 | | :------------------------------------ | :------------ | :------------ | | Income for the year, net accrued dividends | (973,853,664) | (7,725,289,183)| | Amount of ordinary shares | 258,517,299 | 258,517,299 | | Earnings per shares | (3.7671) | (29.8831) | - Earnings per share for the nine-month period ended September 30, 2021, improved to **$(3.7671)** from **$(29.8831)** in the prior year[149](index=149&type=chunk) [NOTE 17- Financial Risk Management](index=30&type=section&id=NOTE%2017-%20FINANCIAL%20RISK%20MANAGEMENT) The company is exposed to various financial risks, including market risk (exchange rate, interest rate, price), credit risk, and liquidity risk. Recent monetary authority restrictions on foreign exchange transactions have impacted the company, which is actively monitoring these variables and implementing measures to strengthen its financial position and maintain liquidity - The Company is exposed to market risk (exchange rate, fair value due to interest rate, and price risk), credit risk, and liquidity risk[150](index=150&type=chunk) - In September 2020, the monetary authority imposed greater exchange restrictions, affecting foreign currency value and requiring prior authorization for certain transactions in the Single Free Exchange Market (MULC)[151](index=151&type=chunk) - Management is continuously monitoring these variables and undertaking actions to strengthen the company's financial position and maintain liquidity[152](index=152&type=chunk) [NOTE 18 - Impact of COVID-19 on Operations](index=31&type=section&id=NOTE%2018%20-%20IMPACT%20OF%20COVID-19%20ON%20THE%20OPERATIONS%20OF%20THE%20COMPANY) The COVID-19 pandemic has significantly impacted the company's operations through government-imposed travel restrictions, border closures, and flight suspensions. While restrictions are gradually easing, the company has implemented mitigation efforts, including receiving government assistance and rationalizing costs, and anticipates a recovery in traffic and income with increased vaccination and border openings - The COVID-19 pandemic led to a public health emergency, border closures, mandatory quarantine, and suspension/reduction of flights, severely impacting the company's operations[155](index=155&type=chunk)[157](index=157&type=chunk) - Government measures included limiting international passenger arrivals (e.g., **600 daily passengers** in June 2021), which were gradually lifted, with complete elimination of restrictions on resident passengers by October 19, 2021, and non-resident passengers by November 1, 2021[158](index=158&type=chunk) - The company received government assistance through the Emergency Assistance Program for Work and Production, including reductions in social charges and wage subsidies (Compensatory Allocation to the Salary, REPRO II)[159](index=159&type=chunk)[160](index=160&type=chunk)[162](index=162&type=chunk) - Management continues to monitor the situation, rationalize operating costs, and implement financial measures, expecting a positive effect on results from the lifting of entry restrictions and progress in vaccination[163](index=163&type=chunk)[164](index=164&type=chunk) [NOTE 19 - Events Subsequent to the End of the Year](index=32&type=section&id=NOTE%2019%20-%20EVENTS%20SUBSEQUENT%20TO%20THE%20END%20OF%20THE%20YEAR) This note reports on significant events occurring after September 30, 2021, including the finalization of an exchange offer for negotiable obligations, the issuance of new Series 2021 and Class 4 Negotiable Obligations to secure financing for infrastructure works, and the refinancing of syndicated loans - On October 27, 2021, the company finalized an exchange offer for existing negotiable obligations (2017 and 2020 Series) for new Series 2021 Negotiable Obligations, with **66.83%** of 2020 Series and **24.61%** of 2017 Series tendered[166](index=166&type=chunk)[167](index=167&type=chunk) - New Series 2021 Negotiable Obligations (**US$208.9 million**) were issued on October 28, 2021, and an additional **US$126 million** in negotiable obligations (Series 2021 and Class 4) were placed on November 1, 2021, to fund infrastructure works[170](index=170&type=chunk)[171](index=171&type=chunk) - Syndicated loans were refinanced, deferring capital amortization installments totaling **US$58 million** and bilateral loans totaling **$3.61 billion**[173](index=173&type=chunk)[174](index=174&type=chunk) [Summary of Information required by Resolution N ° 368/01 of the National Securities Commission](index=34&type=section&id=Summary%20of%20Information%20required%20by%20Resolution%20N%20%C2%B0%20368%2F01%20of%20the%20National%20Securities%20Commission) [1. General Considerations](index=34&type=section&id=1.%20General%20considerations) This section reiterates the application of IFRS and IAS 29 for hyperinflationary economies, highlights the seasonality of air traffic affecting revenues, and provides an update on ongoing and reactivated infrastructure projects at various airports, many of which were paused due to the COVID-19 pandemic - The financial statements are prepared in accordance with IFRS and IAS 29, reflecting Argentina's hyperinflationary economy[179](index=179&type=chunk)[180](index=180&type=chunk) - Company revenues are highly influenced by the seasonality of air traffic, with higher income during summer and winter holiday periods (December-February and July-August)[182](index=182&type=chunk) - Infrastructure projects at various airports (e.g., Ezeiza, Jorge Newbery, Córdoba, Iguazú) are underway, with many reactivated after pandemic-related halts, including new control towers, runway rehabilitations, and terminal expansions[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) [2. Equity Structure](index=37&type=section&id=2.%20Equity%20structure) This section presents a comparative overview of the company's equity structure from 2017 to 2021, showing trends in assets, liabilities, and net equity, all restated in constant currency Equity Structure (in Thousands $) | Metric | 09.30.2021 (Thousands $) | 09.30.2020 (Thousands $) | 09.30.2019 (Thousands $) | 09.30.2018 (Thousands $) | 09.30.2017 (Thousands $) | | :------------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Current Asset | 9,887,754 | 17,166,571 | 23,419,521 | 23,232,124 | 3,578,403 | | Non-current Assets | 129,570,292 | 134,824,022 | 131,216,883 | 111,522,075 | 11,870,270 | | **Total Assets** | **139,458,046** | **151,990,593** | **154,636,404** | **134,754,199** | **15,448,673** | | Current liabilities | 31,179,326 | 28,698,841 | 25,701,617 | 13,115,177 | 2,553,145 | | Non-Current Liabilities | 48,407,716 | 59,949,961 | 61,270,304 | 63,344,077 | 7,181,924 | | **Total Liabilities** | **79,587,042** | **88,648,802** | **86,971,921** | **76,459,254** | **9,735,069** | | Net equity attributable to majority shareholders | 59,869,890 | 63,340,857 | 67,617,185 | 58,229,722 | 5,705,164 | | Non-controlling interest | 1,114 | 934 | 47,298 | 65,223 | 8,440 | | **Net Equity** | **59,871,004** | **63,341,791** | **67,664,483** | **58,294,945** | **5,713,604** | - Total Assets decreased by **8.2%** from **$151.99 billion** in 2020 to **$139.46 billion** in 2021[199](index=199&type=chunk) - Net Equity attributable to majority shareholders decreased by **5.5%** from **$63.34 billion** in 2020 to **$59.87 billion** in 2021[199](index=199&type=chunk) [3. Results Structure](index=38&type=section&id=3.%20Results%20structure) This section provides a summary of the consolidated statements of comprehensive income for the nine-month periods from 2017 to 2021, highlighting the significant improvement in operating profit and net income in 2021 compared to 2020 Results Structure (in Thousands $) | Metric | 09.30.2021 (Thousands $) | 09.30.2020 (Thousands $) | 09.30.2019 (Thousands $) | 09.30.2018 (Thousands $) | 09.30.2017 (Thousands $) | | :------------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Gross Profit | 1,298,245 | (2,430,489) | 20,011,217 | 21,799,093 | 4,284,545 | | Operating profit | (1,832,293) | (5,148,346) | 13,575,592 | 17,353,927 | 3,391,844 | | Income before tax | 2,220,274 | (11,904,659) | 4,020,376 | (2,949,119) | 2,813,633 | | Result of the period | (754,846) | (7,510,233) | 7,777,986 | (3,662,247) | 1,959,790 | | Result attributable to majority shareholders | (755,030) | (7,455,768) | 7,775,060 | (3,687,179) | 1,959,682 | - Operating profit improved significantly from a loss of **($5.15 billion)** in 2020 to a loss of **($1.83 billion)** in 2021[202](index=202&type=chunk) - Net income for the period improved from a loss of **($7.51 billion)** in 2020 to a loss of **($754.8 million)** in 2021[202](index=202&type=chunk) [4. Cash Flow Structure](index=38&type=section&id=4.%20Cash%20flow%20structure) This section summarizes the cash flow activities for the nine-month periods from 2017 to 2021, showing a decrease in cash generated by operating activities and a significant shift to cash used in financing activities in 2021 Cash Flow Activity (in Thousands $) | Cash Flow Activity | 09.30.2021 (Thousands $) | 09.30.2020 (Thousands $) | 09.30.2019 (Thousands $) | 09.30.2018 (Thousands $) | 09.30.2017 (Thousands $) | | :------------------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Cash Flow generated by / (used in) operating activities | 1,670,300 | 3,724,752 | (10,436,114) | 4,730,839 | (850,800) | | Cash Flow generated by / (used in) investing activities | 1,066,709 | 122,962 | 664,934 | (773,197) | (3,008) | | Cash Flow (used in) / generated by financing activities | (6,173,454) | 524,813 | 7,368,331 | (2,520,370) | 2,400,882 | | Net Cash Flow generated by / (used in) the period | (3,436,445) | 4,372,527 | (2,402,849) | 1,437,272 | 1,547,074 | - Cash flow generated by operating activities decreased by **55.1%** from **$3.72 billion** in 2020 to **$1.67 billion** in 2021[203](index=203&type=chunk) - Cash flow from financing activities shifted from generating **$524.8 million** in 2020 to using **($6.17 billion)** in 2021[203](index=203&type=chunk) [5. Analysis of Operations (Nine Months Ended Sep 30, 2021 and 2020)](index=39&type=section&id=5.%20Analysis%20of%20operations%20for%20the%20nine%20month%20periods%20ended%20at%20September%2030%2C%202021%20and%202020) [Income](index=39&type=section&id=Income) This sub-section analyzes the composition of consolidated revenues, showing a decrease in total revenues for the nine-month period ended September 30, 2021, compared to 2020, with a notable shift in the proportion of aeronautical vs. non-aeronautical revenues Revenues Composition (in Thousands $) | Revenues | 09.30.2021 (Thousands $) | % revenues | 09.30.2020 (Thousands $) | % revenues | | :-------------------------- | :----------------------- | :--------- | :----------------------- | :--------- | | Aeronautical revenues | 5,342,467 | 27.36% | 10,663,873 | 45.95% | | Non-aeronautical revenues | 14,180,790 | 72.64% | 12,544,774 | 54.05% | | **Total** | **19,523,257** | **100.00%**| **23,208,647** | **100.00%**| Aeronautical Revenues (in Thousands $) | Aeronautical revenues | 09.30.2021 (Thousands $) | % revenues | 09.30.2020 (Thousands $) | % revenues | | :-------------------------- | :----------------------- | :--------- | :----------------------- | :--------- | | Landing fee | 813,030 | 15.22% | 1,058,479 | 9.93% | | Parking fee | 472,945 | 8.85% | 462,157 | 4.33% | | Air station use rate | 4,056,492 | 75.93% | 9,143,237 | 85.74% | | **Total** | **5,342,467** | **100.00%**| **10,663,873** | **100.00%**| - Total revenues decreased by **15.9%** from **$23.21 billion** in 2020 to **$19.52 billion** in 2021[204](index=204&type=chunk) - Aeronautical revenues decreased significantly, shifting from **45.95%** of total revenues in 2020 to **27.36%** in 2021, while non-aeronautical revenues increased their share[204](index=204&type=chunk) [Costs of Sale](index=39&type=section&id=Costs%20of%20sale) This sub-section reports a substantial decrease in costs of sales for the nine-month period ended September 30, 2021, compared to the same period in 2020 Costs of Sale (in Thousands $) | Costs of Sale | Thousands $ |\ | :------------------------------------------ | :---------- |\ | Costs of sales for the period ended at 09.30.2021 | 18,233,102 |\ | Costs of sales for the period ended at 09.30.2020 | 25,651,089 |\ | **Variation** | **(7,417,987)** | - Costs of sales decreased by **28.9%** (**$7.42 billion**) for the nine-month period ended September 30, 2021, compared to 2020[205](index=205&type=chunk) [Administrative Expenses](index=40&type=section&id=Administrative%20Expenses) This sub-section shows a decrease in administrative expenses for the nine-month period ended September 30, 2021, compared to the prior year Administrative Expenses (in Thousands $) | Administrative Expenses | Thousands $ |\ | :------------------------------------------------------- | :---------- |\ | Administrative expenses for the period ended at 09.30.2021 | 1,025,935 |\ | Administrative expenses for the period ended at 09.30.2020 | 1,294,456 |\ | **Variation** | **(268,521)** | - Administrative expenses decreased by **20.7%** (**$268.5 million**) for the nine-month period ended September 30, 2021, compared to 2020[207](index=207&type=chunk) [Distribution and Marketing Expenses](index=40&type=section&id=Distribution%20and%20marketing%20expenses) This sub-section indicates a reduction in distribution and marketing expenses for the nine-month period ended September 30, 2021, compared to the same period in 2020 Distribution and Commercial Expenses (in Thousands $) | Distribution and Commercial Expenses | Thousands $ |\ | :---------------------------------------------------------------------- | :---------- |\ | Distribution and commercial expenses for the period ended at 09.30.2021 | 1,275,603 |\ | Distribution and commercial expenses for the period ended at 09.30.2020 | 1,743,334 |\ | **Variation** | **(467,731)** | - Distribution and marketing expenses decreased by **26.8%** (**$467.7 million**) for the nine-month period ended September 30, 2021, compared to 2020[208](index=208&type=chunk) [Income and Financial Costs](index=40&type=section&id=Income%20and%20financial%20costs) This sub-section reports a significant positive shift in net financial income and costs, moving from losses in 2020 to profits in 2021, primarily due to changes in exposure to foreign currency - Net financial income and costs shifted from losses of **$4.88 billion** in the nine-month period ended September 30, 2020, to profits of **$3.86 billion** in the same period of 2021[209](index=209&type=chunk) - This positive variation is mainly attributed to changes in losses arising from exposure to foreign currency[210](index=210&type=chunk) [Other Incomes and Expenditures](index=40&type=section&id=Other%20incomes%20and%20expenditures) This sub-section notes a change in other net income and expenses, moving from income in 2020 to losses in 2021 for the nine-month period - Other net income and expense item recorded losses of approximately **$829 million** during the nine-month period ended September 30, 2021, compared to an income of **$560.5 million** in the same period of the previous year[211](index=211&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This sub-section discusses the company's capitalization and debt as a percentage of total capitalization, showing a decrease in total capitalization and a lower debt percentage in 2021 compared to 2020 - The total capitalization of the Group at September 30, 2021, amounted to **$110.19 billion**, comprising **$50.31 billion** of financial debt and **$59.87 billion** of net equity[213](index=213&type=chunk) - Debt as a percentage of total capitalization decreased from **48.85%** at September 30, 2020, to **45.66%** at September 30, 2021[214](index=214&type=chunk) [Financing](index=41&type=section&id=Financing) This sub-section refers to Note 6 for detailed information on financing activities - Detailed information regarding financing activities is provided in Note 6 to the Condensed Consolidated Interim Financial Statements[215](index=215&type=chunk) [6. Key Financial Ratios](index=41&type=section&id=6.%20Index) This sub-section presents key financial ratios including liquidity, solvency, immobilization of capital, and cost effectiveness for the periods from 2017 to 2021, indicating changes in the company's financial health Key Financial Ratios | Ratio | 09.30.2021 | 09.30.2020 | 09.30.2019 | 09.30.2018 | 09.30.2017 | | :------------------------ | :--------- | :--------- | :--------- | :--------- | :--------- | | Liquidity (*) | 0.327 | 0.620 | 0.920 | 1.800 | 1.430 | | Solvency (**) | 0.782 | 0.730 | 0.780 | 0.770 | 0.590 | | Immobilization of capital | 0.929 | 0.890 | 0.850 | 0.830 | 0.770 | | Cost effectiveness | (0.013) | (0.120) | 0.110 | 0.060 | 0.340 | - The liquidity ratio decreased from **0.620** in 2020 to **0.327** in 2021, indicating a reduction in short-term liquidity[216](index=216&type=chunk) - The solvency ratio increased from **0.730** in 2020 to **0.782** in 2021, suggesting an improvement in long-term financial stability[216](index=216&type=chunk) - Cost effectiveness improved from **(0.120)** in 2020 to **(0.013)** in 2021, indicating a reduced negative impact on profitability[216](index=216&type=chunk) [7. Statistical Data](index=42&type=section&id=7.%20Statistical%20data) This section provides statistical data on passenger movement and aircraft movement for key airports from 2017 to 2021, showing a continued negative impact from the pandemic in 2021 compared to pre-pandemic levels, though with some recovery from 2020 lows in aircraft movement Passenger Movement by Airport (in thousands) | Airport | 09.30.2021 (In thousands) | 09.30.2020 (In thousands) | 09.30.2019 (In thousands) | 09.30.2018 (In thousands) | 09.30.2017 (In thousands) | | :-------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Aeroparque | 2,246 | 2,293 | 9,444 | 7,719 | 7,373 | | Ezeiza | 2,215 | 2,936 | 9,332 | 10,172 | 10,226 | | Bariloche | 697 | 434 | 1,425 | 1,209 | 995 | | Córdoba | 406 | 698 | 2,697 | 2,541 | 2,091 | | Mendoza | 370 | 433 | 1,755 | 1,471 | 1,311 | | Salta | 316 | 327 | 1,096 | 820 | 830 | | Iguazú | 210 | 352 | 1,158 | 764 | 717 | | Tucumán | 184 | 178 | 745 | 728 | 352 | | Jujuy | 118 | 83 | 301 | 307 | 195 | | C. Rivadavia | 108 | 124 | 492 | 498 | 453 | | Total | 6,870 | 7,858 | 28,445 | 26,229 | 24,543 | | **Overall total** | **7,414** | **8,840** | **31,575** | **28,530** | **26,494** | | Variation | (16.1%) | (72.0%) | 10.7% | 7.7% | 14.6% | Aircraft Movement by Airport | Airport | 09.30.2021 | 09.30.2020 | 09.30.2019 | 09.30.2018 | 09.30.2017 | | :---------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | San Fernando | 35,364 | 18,930 | 31,719 | 29,815 | 27,403 | | Ezeiza | 23,972 | 24,735 | 63,658 | 55,435 | 49,517 | | Aeroparque | 23,163 | 22,443 | 85,242 | 98,378 | 99,764 | | Bariloche | 6,744 | 3,623 | 11,095 | 11,767 | 9,482 | | Córdoba | 6,190 | 7,066 | 24,216 | 25,113 | 21,003 | | Mendoza | 4,769 | 5,058 | 17,034 | 15,348 | 14,341 | | Salta | 3,798 | 3,660 | 10,555 | 8,264 | 10,397 | | C. Rivadavia | 3,407 | 3,310 | 7,422 | 7,576 | 6,656 | | San Rafael | 3,255 | 1,521 | 3,919 | 3,881 | 3,337 | | Mar del Plata | 2,800 | 2,310 | 6,321 | 7,358 | 4,744 | | Iguazú | 2,305 | 3,401 | 9,531 | 6,891 | 6,480 | | Total | 115,767 | 96,057 | 270,712 | 269,826 | 253,124 | | **Overall total** | **144,468**| **118,941**| **323,656**| **319,121**| **297,930**| | Variation | 21.5% | (63.3%) | 1.4% | 7.1% | 8.2% | - Overall total passenger movement decreased by **16.1%** in 2021 compared to 2020, reflecting the continued impact of the pandemic[218](index=218&type=chunk) - Overall total aircraft movement increased by **21.5%** in 2021 compared to 2020, indicating some operational recovery despite passenger declines[220](index=220&type=chunk) [Outlook for 2021](index=44&type=section&id=Outlook%20for%202021) This section discusses the continued negative impact of the COVID-19 pandemic on operations during the first nine months of 2021, with restrictions on air travel gradually easing. The company anticipates a recovery in traffic and income in the remainder of the year due to vaccination progress and border openings, alongside ongoing efforts to rationalize costs and strengthen its financial position - The epidemiological situation continued to negatively impact operations in the first nine months of 2021, with air travel restrictions (e.g., passenger caps) slowing recovery[222](index=222&type=chunk)[223](index=223&type=chunk) - Restrictions were gradually lifted in Q3 2021, with complete elimination of international passenger quotas by October 19 and border opening for non-resident foreigners by November 1[223](index=223&type=chunk) - The company expects a recovery in traffic and income in the remainder of the year due to vaccination progress and border openings[224](index=224&type=chunk) - Ongoing efforts include rationalizing operating costs and implementing financial measures to maintain cash position and meet commitments[225](index=225&type=chunk) [Review Report of the Condensed Consolidated Interim Financial Statements](index=45&type=section&id=Review%20Report%20of%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Introduction](index=45&type=section&id=Introduction) This section introduces the independent auditor's review of Aeropuertos Argentina 2000 S.A.'s condensed consolidated interim financial statements for the period ended September 30, 2021, noting that prior year balances are an integral part of this review - The report reviews the condensed consolidated interim financial statements of Aeropuertos Argentina 2000 S.A. and its subsidiaries for the nine and three-month periods ended September 30, 2021[228](index=228&type=chunk) - Balances and other information for 2020 and its interim periods are considered an integral part of these financial statements[229](index=229&type=chunk) [Board Responsibility](index=45&type=section&id=Board%20Responsibility) This section clarifies that the Company's Board of Directors is responsible for the preparation and presentation of the financial statements in accordance with IFRS and IAS 34 - The Company's Board of Directors is responsible for the preparation and presentation of these financial statements in accordance with IFRS, adopted by FACPCE and CNV, and specifically IAS 34 'Interim Financial Reporting'[230](index=230&type=chunk) [Scope of Review](index=45&type=section&id=Scope%20of%20review) This section defines the scope of the review, which was limited to procedures established in International Standard on Review Engagements 2410, indicating it is substantially less extensive than an audit and thus does not express an audit opinion - The review was limited to procedures established in International Standard on Review Engagements 2410, adopted as a review standard in Argentina[231](index=231&type=chunk) - The scope of a review is substantially less than an audit, and consequently, an audit opinion is not expressed on the consolidated financial statements[231](index=231&type=chunk) [Conclusion](index=46&type=section&id=Conclusion) Based on the review, the auditor found no material issues suggesting the condensed consolidated interim financial statements were not prepared in accordance with IAS 34. The report also emphasizes the impact of COVID-19 on the company's operations - Based on the review, nothing came to the auditor's attention that causes them to believe the financial statements were not prepared, in all material respects, in accordance with IAS 34[234](index=234&type=chunk) - The report emphasizes the information in Note 18 regarding the impact of COVID-19 on the Company's business and management's mitigation measures[235](index=235&type=chunk) [Report on Compliance with Current Regulations](index=46&type=section&id=Report%20on%20the%20compliance%20with%20current%20regulations) This section reports on the company's compliance with current regulations, noting that the financial statements are pending transcription to the 'Inventory and Balance Sheet' book and that accounting records are formally compliant. It also states the accrued debt with the Argentine Social Security System - The condensed consolidated interim financial statements are pending transcription to the 'Inventory and Balance Sheet' book[236](index=236&type=chunk) - The condensed individual interim financial statements stem from accounting records kept, in all formal aspects, in conformity with legal regulations[236](index=236&type=chunk) - As of September 30, 2021, Aeropuertos Argentina 2000's accrued debt with the Argentine Social Security System amounted to **$52.97 million**, which was not yet due[236](index=236&type=chunk) [Report of the Supervisory Committee](index=47&type=section&id=Report%20of%20the%20Supervisory%20Committee) [Report of the Supervisory Committee](index=47&type=section&id=Report%20of%20the%20Supervisory%20Committee) The Supervisory Committee conducted its review in accordance with existing standards, verifying consistency with corporate decisions and legal compliance. Based on their review and the external auditor's report, they found no observations regarding the financial statements, which are pending transcription to the 'Inventories and Balances' book, and noted the impact of COVID-19 - The Supervisory Committee's review was conducted in accordance with supervisory existing standards, verifying consistency of documents with corporate decisions and adequacy of decisions to law and bylaws[242](index=242&type=chunk) - The Committee considered the limited review report of the external auditor, Miguel A. Urus of Price Waterhouse & Co. SRL[243](index=243&type=chunk) - The condensed consolidated interim financial statements are pending transcription in the 'Inventories and Balances' book, arise from formally compliant accounting records, and the Committee has no observations to make regarding them[248](index=248&type=chunk) - The report highlights the uncertainties related to the impact of the COVID-19 virus on the company's business, as described in Note 18 of the financial statements[247](index=247&type=chunk)

Corporación América Airports S.A. (NYSE:CAAP) Q2 2021 Earnings Conference Call August 19, 2021 9:00 AM ET Company Participants Patricio Iñaki Esnaola - Head of IR Martin Eurnekian - CEO Jorge Arruda - CFO Conference Call Participants Alex Demichelis - NAU Securities Peter Bowley - Bank of America Nicolas Fabiancic - Jefferies Operator Good morning, and welcome to Corporación América Airports Second Quarter 2021 Earnings Conference Call. A slide presentation accompanies today's webcast and is available in th ...