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Published: 2023-05-09 17:40:22 ET
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EX-99.1 2 tm2315141d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Aeropuertos Argentina 2000 S.A.

 

Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format

 

 

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format

 

Index

 

Consolidated Statements of Comprehensive Income  
Consolidated Statements of Financial Position  
Consolidated Statements of Changes in Equity  
Consolidated Statements of Cash Flows  
Notes to the Condensed Consolidated Interim Financial Statements
Summary of Information requested by Resolution N° 368/01
of the National Securities Commission
 
Review Report of the Condensed Consolidated Interim Financial Statements  
Report of the Supervisory Committee  

 

$ = Argentine Peso

US$ = US Dollar

EUR = Euro

 

1

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format

 

Legal address: Honduras 5663 - Autonomous City of
Buenos Aires
Principal activity: Exploitation, administration and
operation of airports

 

Condensed Consolidated Interim Financial Statements

For the three-month period of the

Fiscal Year N° 26 commenced January 1, 2023

 

DATE OF REGISTRATION WITH THE PUBLIC REGISTRY OF COMMERCE:
Of the By-laws: February 18, 1998
Of the last modification of the By-laws: January 03, 2023
Correlative number in the General Inspectorate of
Justice:
1645890
Expiration date of the company: February 17, 2053
Parent Company: Corporación América S.A.
Legal address: Honduras 5673 - Autonomous City of
Buenos Aires
Principal activity: Investments and financing
Participation of the Parent Company
in common stock and total votes:
45.90%

 

CAPITAL STOCK (Note 13)
   Subscribed   Paid-in 
    $ 
Issued          
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 
    258,517,299    258,517,299 

 

2

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Consolidated Statement of Comprehensive Income

For the three month periods ended at

March 31, 2023 and 2022

 

       Three months at 
       03.31.2023   03.31.2022 
   Note   Millions of $ 
Continuous Operations               
Revenue   4    40,314    30,527 
Construction income (CINIIF 12)   5    6,008    2,539 
Cost of service   10    (23,073)   (19,251)
Construction costs (CINIIF 12)        (6,002)   (2,530)
Income for gross profit for the period        17,247    11,285 
Distribution and selling expenses   10    (2,364)   (1,754)
Administrative expenses   10    (1,599)   (1,045)
Other income and expenses, net   4    898    677 
Operating profit for the period        14,182    9,163 
                
Finance Income   4    472    484 
Finance Costs   4    946    1,404 
Result from exposure to changes in the purchasing power of the
currency
        (754)   2,765 
Result of investments accounted for by the equity method        -    - 
Income before income tax        14,846    13,816 
Income tax   4    (7,071)   (685)
Income for the period for continuous operations        7,775    13,131 
Net Income for the period        7,775    13,131 
Other comprehensive income        -    - 
Comprehensive Income for the period        7,775    13,131 
                
Income attributable to:               
Shareholders        7,784    13,131 
Non –Controlling Interest        (9)   0 
Income per share basic and diluted attributable to
shareholders of the Company during the period (shown in $
per share) from continuous operations
        30.0730    50.7938 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements and should be read together with the Consolidated Accounting Statements audited for the year ended at December 31, 2022.

 

3

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Consolidated Statements of Financial Position

At March 31, 2023 and December 31, 2022

 

       03.31.2023   12.31.2022 
   Note   Millions of $ 
Assets            
Non- Current Assets               
Investments accounted for using the equity method   4    2    2 
Property, plant and equipment   12    224    214 
Intangible Assets   5    330,941    329,155 
Rights of use        427    610 
Deferred Income tax assets        4    - 
Other receivables   4    11,103    11,740 
Total Non-Current Assets        342,701    341,721 
Current Assets               
Other assets        105    120 
Other receivables   4    2,378    2,711 
Trade receivables, net   4    12,153    11,424 
Investments   4    -    1 
Cash and cash equivalents   4    33,119    30,977 
Total Current Assets        47,755    45,233 
Total Assets        390,456    386,954 
Shareholders’ Equity and Liabilities               
Equity attributable to Shareholders:               
Common shares        259    259 
Share Premium        137    137 
Capital adjustment        24,270    24,270 
Legal and facultative reserve        121,785    121,766 
Retained earnings        30,088    22,304 
Subtotal        176,539    168,736 
Non-Controlling Interest        (48)   (39)
Total Shareholders’ Equity        176,491    168,697 
Liabilities               
Non-Current Liabilities               
Provisions and other charges   9    2,561    2,750 
Financial debts   6    133,668    139,435 
Deferred income tax liabilities        35,236    28,161 
Accounts payable and others   4    271    286 
Total Non- Current Liabilities        171,736    170,632 
Current Liabilities               
Provisions and other charges   9    6,049    7,398 
Financial debts   6    13,832    14,628 
Income tax, net of prepayments        7    8 
Lease liabilities        325    472 
Accounts payable and others   4    17,564    19,219 
Fee payable to the Argentine National Government   7    4,452    5,900 
Total Current Liabilities        42,229    47,625 
Total Liabilities        213,965    218,257 
Total Shareholder’s Equity and Liabilities        390,456    386,954 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements and should be read together with the Consolidated Accounting Statements audited for the year ended at December 31, 2022.

 

4

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Consolidated Statements of Changes in Equity

At March 31, 2023 and 2022

 

   Attributable to majority shareholders         
   Capital Stock
Common
Shares
   Capital Stock
Preferred
Shares
   Share Premium   Adjustment of
capital
   Legal
Reserve
   Facultative
Reserve
   Other
Reserves
   Retained
Earnings
   Total   Non-
Controlling
  Interest
   Total
Shareholders’
Equity
 
   In millons of $ 
Balance at 01.01.23   259    -    137    24,270    4,156    116,998    612    22,304    168,736    (39)   168,697 
Compensation plan   -    -    -    -    -    -    19    -    19    -    19 
Net Income for the period   -    -    -    -    -    -    -    7,784    7,784    (9)   7,775 
Balance at 03.31.2023   259    -    137    24,270    4,156    116,998    631    30,088    176,539    (48)   176,491 
                                                        
Balance at 01.01.22   259    911    137    60,087    4,108    117,265    582    (26,546)   156,803    3    156,806 
Resolutions of the Shareholder’s meeting of
March 10,2022 – Redemption of Preferred
Shares (Note 14)
   -    (911)   -    (36,102)   -    (1,613)   -    -    (38,626)   -    (38,626)
Compensation plan   -    -    -    -    -    -    3    -    3    -    3 
Net Income for the period   -    -    -    -    -    -    -    13,131    13,131    -    13,131 
Balance at 03.31.2022   259    -    137    23,985    4,108    115,652    585    (13,415)   131,311    3    131,314 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements and should be read together with the Consolidated Accounting Statements audited for the year ended at December 31, 2022.

 

5

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Consolidated Statements of Cash Flow

For the three-month periods ended at March 31, 2023 and 2022

 

       03.31.2023   03.31.2022 
   Note   Millions of $ 
Cash Flows from operating activities               
Net income for the period        7,775    13,131 
Adjustment for:               
Income tax   4    7,071    685 
Amortization of intangible assets   5 / 10    4,222    4,581 
Depreciation of property , plant and equipment   10    11    5 
Depreciation right of use   10    183    181 
Bad debts provision   8 / 10    174    120 
Specific allocation of accrued and unpaid income   7    2,037    1,907 
Result of investments accounted for by the equity method        -    - 
Compensation plan        19    3 
Accrued and unpaid financial debts interest costs   6    2,518    3,703 
Accrued deferred revenues and additional consideration   9    (587)   (534)
Accrued and unpaid Exchange differences        (3,013)   (3,564)
Litigations provision   9    61    4 
Inflation Adjustment        (3,372)   (10,402)
Changes in operating assets and liabilities:               
Changes in trade receivables        (2,884)   (2,158)
Changes in other receivables        (865)   (997)
Changes in other assets        16    - 
Changes in accounts payable and others        1,713    2,061 
Changes in liabilities for income tax        (1,667)   156 
Changes in provisions and other charges        (2,751)   (2,301)
Increase of intangible assets        (6,008)   (2,539)
Net cash Flow generated by operating activities        4,653    4,042 
Cash Flow for investing activities               
Acquisition of investments        -    (21,581)
Collection of investments        1    - 
Fixed assets acquisitions        (21)   - 
Net Cash Flow applied to investing activities        (20)   (21,581)
Cash Flow from financing activities               
New Financial debts   6    1,348    47,759 
Payment of leases        (143)   (163)
Financial debts paid- principal   6    (3,702)   (4,542)
Financial debts paid- interests   6    (2,968)   (3,638)
Net Cash Flow (applied to) / generated by financing activities        (5,465)   39,416 
                
(Decrease) / increase in cash and cash equivalents        (832)   21,877 
Changes in cash and cash equivalents               
Cash and cash equivalents at the beginning of the period        30,977    37,953 
(Decrease) / Increase in cash and cash equivalents        (832)   21,877 
Inflation adjustment generated by cash and cash equivalents        3,777    2,873 
Foreign Exchange differences by cash and cash equivalents        (803)   (1,781)
Cash and cash equivalents at the end of the period        33,119    60,922 
The main transactions that did not imply movement of funds are detailed below:               
 Redemption of preferred shares             39,076 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements and should be read together with the Consolidated Accounting Statements audited for the year ended at December 31, 2022.

 

6

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format

 

NOTE 1 – COMPANY ACTIVITIES

 

Aeropuertos Argentina 2000 S.A. (“AA2000” or the “Company”) was incorporated in the Autonomous City of Buenos Aires in 1998, after the consortium of companies won the national and international bid for the concession rights for the use, management and operation of the “A” Group of the Argentine National Airport System. “A” Group includes 33 airports that operate in Argentina (the “Concession”).

 

Currently, with the incorporation into Group A of the NSA of the airports of El Palomar (by Decree No. 1107/17) and Rio Hondo (by Resolution ORSNA No. 27/21 Decree), the Company has the concession rights for the operation, administration and operation of 35 airports.

 

The Concession was granted through the Concession Agreement entered into between the Argentine National State and the Company, dated February 9, 1998. The Concession Agreement was modified and supplemented by the Agreement of Adequacy of the Concession Contract signed between the Argentine National State and the Company, dated April 3, 2007 approved by Decree No. 1799/07 (hereinafter the Memorandum of Agreement) and by Decree No. 1009/20 dated December 16, 2020, which approves the 10-year extension of the initial completion period of the Concession (which operated on February 13, 2028) maintaining exclusivity under the terms established in the Technical Conditions for the Extension (hereinafter the Technical Conditions for the Extension).

 

Hereinafter, the Concession Agreement will be referred to, as modified and supplemented by the memorandum of Agreement and by the Technical Conditions for the Extension, as the Concession Agreement.

 

By virtue of the provisions of the Technical Conditions for the Extension, the concession completion period is February 13, 2038 and the exclusivity provided in clauses 3.11 and 4.1 of the Concession Agreement will be maintained with the following exceptions: (i) The zones of influence in the interior of the country are canceled, but not in the area of the Metropolitan Region of Buenos Aires (RMBA) made up of the Ezeiza, Aeroparque, San Fernando and Palomar airports (ii) the exclusivity in the areas of influence will be maintained throughout the national territory for the activity of fiscal warehouses (iii) the exclusivity and from the area of influence for the realization of new airport infrastructure projects in the Rio de la Plata promoted by the National Public Sector, when due to its characteristics it cannot be financed and operated by the Company.

 

In September 2021, based on the detrimental effects that the COVID-19 pandemic had on air traffic, the ORSNA approved the postponement to December 2022 of the following commitments: (i) programming of funds for works and rescue of preferred shares $ 406.5 million and (ii) regularization of the specific allocation of income owed for 2020. Likewise, the ORSNA deferred to June 2023 the necessary adjustment to balance the financial projection of income and expenses.

 

In addition, under the terms of the Concession Agreement, the Argentine National Government has the right to buyout our Concession as of February 13, 2018, and if such right is exercised, it is required to pay the Company a compensation.

 

7

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 2 - BASIS FOR CONSOLIDATION

 

The Condensed Consolidated Interim Financial Statements include the assets, liabilities and results of the following subsidiaries (hereafter the Group):

 

Subsidiaries (1)  Number of
common shares
  Participation
in capital and
possible votes
   Book entry value
at 03.31.2023
  Net Shareholders
‘equity at closing
  Income for
the period
 
          Millions of $ 
Servicios y Tecnología Aeroportuarios S.A. (2)  14,398,848  99.30%  446  449  8 
Cargo & Logistics SA. (3)  1,637,116  98.63%  2  2  - 
Paoletti América S.A. (3)  6,000  50.00%  0  0  - 
Texelrío S.A. (4)  84,000  70.00%  47  (5) (22)
Villalonga Furlong S.A (3) (5)  123,700  1.46%  0  4  - 

 

(1)Companies based in Argentina.

(2)Includes adjustments under IFRS for the preparation and presentation of the corresponding financial statements.

(3)Not consolidated due to low significance.

(4)Shareholders Equity includes 4,000,000 of preferred shares of AR$1 par value.

(5)The Company directly and indirectly owns 98.42% of the capital stock and votes of this entity.

 

The accounting policies of the subsidiaries have been modified, where necessary, to ensure consistent application with the Group accounting policies.

 

AA2000 holds 99.3% of the shares of Servicios y Tecnología Aeroportuarios S.A. (Sertear), which purpose is to manage and develop activities related to duty-free zones, import and export operations, exploit and manage airport-related services, provide transportation services (both passenger and cargo), and warehouse usage services.

 

AA2000 owns 98.63% of the capital stock of Cargo y Logística S.A., holder of 98.42% of the shares of Villalonga Furlong S.A. Villalonga Furlong S.A. is the holder of Class “B” shares of Empresa de Cargas Aéreas del Atlántico Sud S.A., under liquidation, representing 45% of its capital stock. The remaining 55% of the capital stock, (the Class “A” shares) are owned by the Argentine National Government - Ministry of Defense.

 

Empresa de Cargas Aéreas del Atlántico Sud S.A. (which, as of the date of these consolidated financial statements, is under liquid proceedings as a result of the application of the provisions of Section 94 subsection 2 of Commercial Law 19550) was the concessionaire of the exploitation and provision of international air cargo storage, stowage and warehouse services until June 30, 2009. As from that date the services in charge of Empresa de Cargas Aéreas del Atlántico Sud S.A. are performed by AA2000 in accordance with the Bidding Terms and Conditions of the AA2000 concession agreement.

 

The Company holds 50% of the capital stock and votes of Paoletti América S.A. Pursuant to shareholder agreements, AA2000 is in charge of the administration of Paoletti America S.A, and also appoints the Chairman of the Board of Directors, who, in accordance with the corporate by-laws, has a double vote in case of a tie voting.

 

In addition, the Company owns 70% of the capital and votes of Texelrio S.A. whose corporate purpose is, among others, to develop, operate and manage all kinds of services related to maintenance of parks and airports.

 

8

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 3 – ACCOUNTING POLICIES

 

These Condensed Consolidated Interim Financial Statements of the Company are presented in millions of Argentine pesos, except data on shares or when otherwise indicated. All amounts are rounded to millions of Argentine pesos unless otherwise indicated. As such, non-significant rounding differences may occur. A dash (“-”) indicates that no data was reported for a specific line item in the relevant fiscal year or financial period, or when the relevant data figure, after rounding, amounts to zero. These statements were approved by the Board of Directors of the Company on May 5, 2023.

 

The National Security Commission (CNV) through Technical Resolutions N° 562/09 and 576/10 has established the application of Technical Resolutions N° 29 and 43 of the Argentine Federation of Professional Council in Economic Sciences which adopts the application of IFRS (International Financial Reporting Standards) issued by the IASB (International Accounting Standards Board), for those entities under the public offering regime Law N° 17.811, whether due to capital stock or corporate bonds or because they have requested authorization to list for trading on stock exchanges.

 

Application of those standards is mandatory for the Company as from the fiscal year beginning on January 1 2012. Therefore, the transition date, as established in the IFRS 1 “First Time Adoption of the IFRS” was January 1, 2011.

 

These Consolidated Condensed Interim Financial Statements of AA2000 for the three-month period ended March 31, 2023 are presented based on the application of the guidelines established in International Accounting Standard (“IAS”) No. 34 “Intermediate Financial Information”. Therefore, they must be read together with the Company's annual consolidated financial statements as of December 31, 2022 (the “Annual Consolidated Financial Statements”) prepared in accordance with IFRS, as issued by the IASB and IFRIC Interpretations. (IFRIC for its acronym in English).

 

These accounting policies have been consistently applied to all the years presented unless otherwise stated.

 

This note to these Condensed Consolidated Interim Financial Statements does not reflect all the information required in the annual financial statements as there are no significant changes. It must be read together with the audited Consolidated Financial Statements as of December 31, 2022.

 

1) Comparative Information

 

The information included in these financial statements was extracted from the Condensed Consolidated Interim Financial Statements of AA2000 as of March 31, 2023 and the Consolidated Financial Statements at December 31, 2022, timely approved by the Company’s Board and Shareholders and restated at the closing currency at March 31, 2023, based on the application of IAS 29 (see Note 3.7)

 

2) Controlled

 

The Company controls an entity when the group is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The subsidiaries are consolidated as from the date control is transferred to the Company. They are deconsolidated from the date that control ceases. (See Note 2).

 

9

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 3 – ACCOUNTING POLICIES (Contd.)

 

2) Controlled (Contd.)

 

Inter-company transactions, balances and unrealized gains or transactions between Group companies are eliminated. Unrealized losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group’s accounting policies.

 

3) Segment Information

 

The Company is managed as a single unit, considering all airports as a whole. It does not evaluate the performance of the airports on a standalone basis. Therefore, for the purposes of segment information, there is only one business segment.

 

The Argentine National Government granted the Company the concession of the “A” Group airports of the National Airports System under the basis of “cross-subsidies”: i.e., the income and funds generated by some of the airports should subsidize the liabilities and investments of the remaining airports, in order for all airports to be compliant with international standards as explained below.

 

All airports must comply with measures of operative efficiency that are independent from the revenues and funds they generate. All works performed must follow international standards established by the respective agencies (IATA, OACI, etc.).

 

Revenues of AA2000 comprise non-aeronautical revenues and aeronautical revenues; the latter being the tariffs determined by the ORSNA and regulated on the basis of the review of the Financial Projection of Income and Expenses in order to verify and preserve the "equilibrium" of the variables on which it was originally based.

 

The investment decisions are assessed and made with the ORSNA based on the master plans of the airports considering the needs of each airport based on expected passenger flow and air traffic, in the framework of the standards previously mentioned.

 

4) Accounting policies

 

The collection policies adopted for these interim financial statements are consistent with those used in the Consolidated Financial Statements as of December 31, 2022.

 

5) Changes in accounting policies and disclosures

 

There were no changes in the Group's accounting policies based on the effective application standards issued by the IASB as of January 1, 2023.

 

6) Estimates

 

The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise its judgment in the process of applying the Group accounting policies.

 

10

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 3 – ACCOUNTING POLICIES (Contd.)

 

6) Estimates (Contd.)

 

In the preparation of these Financial Statements the significant areas of judgement by management in the application of the Company’s accounting policies and the main areas of assumptions and estimates are consistent to those applied in the Financial Statements for the year ended December 31, 2022.

 

7) Foreign currency conversion and financial information in hyperinflationary economies

 

Functional and presentation currency

 

The figures included in these financial statements were measured using their functional currency, that is, the currency of the primary economic environment in which the Company operates. The functional currency of the Company is the Argentine peso, which is the same as the presentation currency of the financial statements.

 

Financial information in hyperinflationary economies

 

IAS 29 "Financial information in hyperinflationary economies" requires that the financial statements of an entity whose functional currency is that of a hyperinflationary economy be expressed in terms of the current unit of measurement at the reporting date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. For this, in general terms, inflation produced from the date of acquisition or from the revaluation date, as applicable, must be computed in the non-monetary items.

 

These requirements also correspond to the comparative information of these Consolidated financial statements.

 

In order to conclude on whether an economy is categorized as hyperinflationary under the terms of IAS 29, the standard details a series of factors to be considered, including the existence of a cumulative inflation rate in three years that approximates or exceed 100%. Taking into account that the accumulated inflation rate of the last three years exceeds 100% and the rest of the indicators do not contradict the conclusion that Argentina should be considered as a hyperinflationary economy for accounting purposes, the Company Management understands that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy under the terms of IAS 29, as of July 1, 2018. It is for this reason that, in accordance with the NIC 29, these Consolidated Financial Statements are restated reflecting the effects of inflation in accordance with the provisions of the standard.

 

In turn, Law No. 27,468 (BO 04/12/2018) amended Article 10 of Law No. 23,928 and its amendments, establishing that the repeal of all legal norms or regulations that establish or authorize indexation by prices, monetary update, variation of costs or any other form of repowering of debts, taxes, prices or rates of goods, works or services, does not include financial statements, in respect of which the provisions of the article 62 in fine of the General Law of Companies No. 19,550 (TO 1984) and its amendments will be applied. Also, the aforementioned legal body ordered the repeal of Decree No. 1269/2002 of July 16, 2002 and its amendments and delegated to the National Executive Power (PEN), through its controlling entities, to establish the date from the which the provisions cited in relation to the financial statements presented will have effect. Therefore, through its General Resolution 777/2018 (BO 28/12/2018), the National Securities Commission (CNV) established that issuers subject to its control should apply to the annual financial statements, for interim and special periods, that close as of December 31, 2018 inclusive, the method of restating financial statements in a homogeneous currency as established by IAS 29.

 

11

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 3 – ACCOUNTING POLICIES (Contd.)

 

7) Foreign currency conversion and financial information in hyperinflationary economies (Contd.)

 

Financial information in hyperinflationary economies (Contd.)

 

In accordance with IAS 29, the financial statements of an entity reporting in the currency of a hyperinflationary economy must be reported in terms of the unit of measurement in effect at the date of the financial statements. All amounts in the statement of financial position that are not indicated in terms of the current unit of measurement as of the date of the financial statements should be updated by applying a general price index. All the components of the income statement should be indicated in terms of the unit of measure updated as of the date of the financial statements, applying the change in the general price index that has occurred since the date on which the income and expenses were originally recognized. in the financial statements.

 

The adjustment for inflation in the initial balances was calculated considering the indexes established by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) based on the price indexes published by the National Institute of Statistics and Censuses (INDEC). The coefficient for the three-month period ended March 31, 2023 was 1.2097; also, the inter annual coefficient for the period ended at March 31, 2023 was 2.0302.

 

Inflation adjustment

 

In an inflationary period, any entity that maintains an excess of monetary assets over monetary liabilities will lose purchasing power, and any entity that maintains an excess of monetary liabilities over monetary assets will gain purchasing power, provided that such items are not subject to a mechanism of adjustment.

 

Briefly, the re-expression mechanism of IAS 29 establishes that monetary assets and liabilities will not be restated since they are already expressed in the current unit of measurement at the end of the reporting period. Assets and liabilities subject to adjustments based on specific agreements will be adjusted in accordance with such agreements

 

The non-monetary items measured at their current values at the end of the reporting period, such as the net realization value or others, do not need to be re-expressed. The remaining non-monetary assets and liabilities will be re-expressed by a general price index. The loss or gain from the net monetary position will be included in the comprehensive net result of the reporting period, revealing this information in a separate line item.

 

12

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 3 – ACCOUNTING POLICIES (Contd.)

 

7) Foreign currency conversion and financial information in hyperinflationary economies (Contd.)

 

Inflation adjustment (Contd.)

 

The following is a summary of the methodology used for the preparation of these Condensed Consolidated Interim Financial Statements:

 

-Non-monetary assets and liabilities: non-monetary assets and liabilities (property, plant and equipment, intangible assets, rights of use, deferred profits and additional allowances) updated by the adjustment coefficients corresponding to the date of acquisition or origin of each of them, as applicable. The income tax derived has been calculated based on the restated value of these assets and liabilities;

 

-Monetary assets and liabilities, and monetary position result: monetary assets and liabilities, including balances in foreign currency, by their nature, are presented in terms of purchasing power as of March 31, 2023. The financial result generated by the net monetary position reflects the loss or gain that is obtained by maintaining an active or passive net monetary position in an inflationary period, respectively and is exposed in the line of "Result from exposure to changes in the purchasing power of the currency" (RECPAM) in the Statement of Comprehensive Income;

 

-Equity: the net equity accounts are expressed in constant currency as of March 31, 2023, applying the corresponding adjustment coefficients at their dates of contribution or origin;

 

Results: the items of the Individual Financial Statements have been restated based on the date on which they accrued or were incurred, with the exception of those associated with non-monetary items (depreciation and amortization expenses), which are presented as a function of the update of the non-monetary items to which they are associated, expressed in constant currency as of March 31, 2023, through the application of the relevant conversion factors.

 

The comparative figures have been adjusted for inflation following the same procedure explained in the preceding points.

 

In the initial application of the adjustment for inflation, the equity accounts were restated as follows:

 

-The capital was restated from the date of subscription or from the date of the last adjustment for accounting inflation, whichever happened later. The resulting amount was incorporated into the "Capital adjustment" account

 

-The other result reserves were not restated in the initial application

 

With respect to the evolution notes of non-monetary items for the year, the balance at the beginning includes the adjustment for inflation derived from expressing the initial balance to the currency of current purchasing power.

 

13

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 3 – ACCOUNTING POLICIES (Contd.)

 

7) Foreign currency conversion and financial information in hyperinflationary economies (Contd.)

 

Transactions and balances

 

Transactions in foreign currency are translated into the functional currency using the exchange rates prevailing at the transaction dates (or valuation where items are re-measured).

 

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end of the assets and liabilities denominated in foreign currency are recognized in the statement of comprehensive income.

 

Foreign exchange gains and losses are shown in “Finance Income” and/or “Finance Expense” of the comprehensive statement of income.

 

Exchange rates used are the following: buying rate for monetary assets and selling rate for monetary liabilities, applicable at year-end according to Banco Nación, and at the foreign currency exchange rate applicable at the transaction date.

 

8) Contingencies

 

The Company has contingent liabilities for legal claims related to the normal course of business. It is not expected that any significant liabilities other than those provisioned will arise from contingent liabilities

 

9) Income tax and Deferred tax - Tax revalued - Tax inflation adjustment

 

The income tax income in the three-month period ended at March 31, 2023 was a loss of $7,071 million.

 

In order to determine the taxable net result at the end of this period, the adjustment for inflation determined in accordance with articles N ° 95 to N ° 98 of the income tax law was incorporated to the tax result, for $22,856 million, because as of March 31, 2023, the variation of the General Level Consumer Price Index (CPI) for the period of 36 months at the end of fiscal year 2023 will exceed 100%.

 

14

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 4 – BREAKDOWN OF CERTAIN ITEMS OF THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND THE CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

         03.31.2023    12.31.2022 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION   Note    Millions of $ 
Other non-current receivables               
Trust for Strengthening   7    11,103    11,740 
         11,103    11,740 
Other current receivables               
Expenses to be recovered        164    239 
Guarantees granted   12    1    2 
Related parties   7    265    314 
Tax credits        1,701    1,888 
Prepaid Insurance        231    253 
Others        16    15 
         2,378    2,711 
Trade receivables, net               
Trade receivables        13,734    13,479 
Related parties   7    248    389 
Checks-postdated checks        795    427 
Provision for bad debts   8    (2,624)   (2,871)
         12,153    11,424 
Investments               
Investments funds        -    1 
         -    1 
Cash and cash equivalents               
Cash and funds in custody        75    57 
Banks (*)        23,341    25,513 
Checks not yet deposited        199    196 
Term deposits and others        9,504    5,211 
         33,119    30,977 

 

(*) As of March 31, 2023 and December 31, 2022, includes balances in bank accounts specifically assigned for the cancellation of Series 2021 and Class IV corporate bonds for $1,023 million and $1,038 million 713,343,245 and $333,556,789, respectively.

 

15

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 4 – BREAKDOWN OF CERTAIN ITEMS OF THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND THE CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Contd.)

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Contd.)

 

            03.31.2023     12.31.2022  
      Note     Millions of $  
Accounts payable and other non-current                    
Suppliers           271     286  
            271     286  
Accounts payable and other current                    
Obligations payable           1     50  
Suppliers           9,013     10,627  
Foreign suppliers           603     654  
Related Parties     7     276     302  
Salaries and social security liabilities           6,655     6,650  
Other fiscal liabilities           1,016     936  
            17,564     19,219  

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

   Three months at 
   03.31.2023     03.31.2022 
   Millions of $ 
Revenues          
Aeronautical revenues   23,074    14,398 
Non-Aeronautical revenues   17,240    16,129 
    40,314    30,527 

 

As of March 31, 2023 and 2022, "over the time" income from contracts with customers for the three month periods was $33,511 million and $24,040 million, respectively.   

 

Other net incomes and expenses        
Trust for Strengthening   993    754 
Other   (95)   (77)
    898    677 
Finance Income          
Interest   1,616    2,023 
Foreign Exchange differences   (1,144)   (1,539)
    472    484 

 

16

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 4 – BREAKDOWN OF CERTAIN ITEMS OF THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AND THE CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Contd.)

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Contd.)

 

   Three months at 
   03.31.2023   03.31.2022 
   Millions of $ 
Finance Expenses          
Interest   (3,099)   (8,474)
Foreign Exchange differences   4,045    9,878 
    946    1,404 
    1,418    1,888 
Income Tax          
Current   1    (3)
Deferred   (7,072)   (682)
    (7,071)   (685)

 

NOTE 5 – INTANGIBLE ASSETS

 

       2023   2022 
   Note   Millions of $ 
Original values               
Balance at January 1        527,304    494,932 
Acquisitions of the period        6,008    2,539 
Balance at March 31        533,312    497,471 
                
Accumulated Amortization:               
Balance at January 1        (198,149)   (178,353)
Amortization of the period   10    (4,222)   (4,581)
Balance at March 31        (202,371)   (182,934)
Net balance at March 31        330,941    314,537 

 

NOTE 6 – FINANCIAL DEBTS

 

  03.31.2023   12.31.2022 
Breakdown of financial debts  Millions of $ 
Non-current        
Bank borrowings   3,515    5,024 
Negotiable Obligations   131,277    135,840 
Cost of issuance of debts   (1,124)   (1,429)
Total Non- Current   133,668    139,435 

 

17

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

  03.31.2023   12.31.2022 
Composition of financial debts  Millions of $ 
Current          
Bank borrowings   2,827    4,490 
Negotiable Obligations   9,884    10,427 
Bank overdrafts   1,356    - 
Cost of issuance of ON   (235)   (289)
Total Current   13,832    14,628 
Total   147,500    154,063 

 

As of March 31, 2023 and December 31, 2022, the fair value of the financial debt amounts to $154,589 million and $150,347 million, respectively. Said valuation method is classified according to IFRS 13 as hierarchy of fair value Level 2 (unadjusted quoted prices in active markets for identical assets or liabilities).

 

  2023   2022 
Breakdown of financial debts:  Millions of $ 
Balance at January 1   154,063    149,058 
New financial debts   1,348    47,759 
Financial debts paid   (6,670)   (8,180)
Accrued interest   2,518    3,703 
Foreign Exchange differences   (4,160)   (9,026)
Inflation adjustment   401    (1,469)
Net Balance at March 31   147,500    181,845 

 

Negotiable Obligations maturing in 2027

 

On February 6, 2017, the Company issued negotiable obligations for US$400 million with maturity on February 1, 2027, with an interest rate of 6.875% and an issue price of 99.888% par value. Payment of principal will have a quarterly amortization in 32 quarters, identical and consecutive, payable from May 1, 2019.

 

These negotiable obligations are guaranteed by a Trust under the Argentine Law, by which the Company has transferred and assigned use fees of international and regional airports and the Concession Indemnification Rights.

 

In May 2020 and October 2021, the company concluded two exchange offers on the Secured Notes Due 2027 (see below). The holders who did not enter the exchange continue with the original terms and conditions.

 

Global Program for the issuance of Negotiable Obligations

 

On February 27, 2020, the ordinary general meeting of shareholders of the Company approved the creation of a Global Program for the issuance of Negotiable Obligations of Aeropuertos Argentina 2000 S.A for the amount of up to US$ 500 million (or its equivalent in other currencies and / or units of value),. The Prospectus project was approved in its terms and conditions by board of directors dated February 27, 2020. On April 17, 2020, the Company obtained authorization from the CNV for the Global Program for the Issuance of Negotiable Obligations. In turn, on June 15, 2021, the Company's ordinary general meeting of shareholders approved the expansion of the amount of the aforementioned program from the sum of US $ 500 million to the sum of US $ 1,500 million (or its equivalent in other currencies and / or units of value), whose final prospectus was approved in its terms and conditions by resolution of the sub delegate dated July 14, 2021. On July 11, 2021, the Company obtained authorization from the CNV for the expansion of the amount of the Global Program for the Issuance of Negotiable Obligations.The duration of the program is five years from the original approval date of the CNV, that is, from April 17, 2020.

 

18

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Class I Negotiable Obligations Series 2020

 

On April 21, 2020, the Company announced an exchange offer and consent request to the holders of the 2027 Guaranteed Negotiable Obligations. On May 19, 2020, the exchange offer for 86.73% of the total original principal amount ended. Consequently, on May 20, 2020, US$306 million in new negotiable obligations were issued with maturity on February 1, 2027, whose interest rate was 9.375% per year during the PIK Period, period in which the amount of interest is compounded quarterly. The capital and interest amortization installment of these obligations, due on May 1, 2021, was paid in cash. Beginning May 1, 2021, the PIK Period having ended, the Notes bear interest at a rate of 6.875% per annum until maturity, payable quarterly.

 

Class 3 Negotiable Obligations

 

On September 8, 2021, within the framework of the Global Program for the Issuance of Negotiable Obligations, AA2000 issued Class 3 negotiable obligations denominated in US dollars to be paid in pesos, for an amount of US $30 million maturing on September 8 of 2023, at an interest rate of 4% nominal per year and with an issue price at par (100% of the nominal value). The amortization of the capital of the negotiable obligations was established in a single installment at maturity, which will be payable at the Communication Reference "A" 3500 exchange rate of the Central Bank of the Argentine Republic (BCRA).

 

Class I Negotiable Obligations Series 2021

 

On October 27, 2021, the Company completed the exchange of the "Guaranteed Negotiable Obligations Maturing in 2027" and the "Class I Series 2020 Negotiable Obligations", for new 8.50% fixed rate negotiable obligations maturing in 2031. Capital amortization was established in 20 installments payable between February 1, 2026 and August 1, 2031 on a quarterly basis, on the 1st days of February, May, August and November, with the exception of the payment dates corresponding to May 1, 2026, November 1, 2026 and August 1, 2028.

 

At the closing of the transaction, 66.83% of the total original principal amount of the Class I Series 2020 Negotiable Obligations and 24.61% of the total original principal amount of the Secured Negotiable Obligations Maturing in 2027 were tendered for the exchange. Consequently, on October 28, 2021, the Company issued a principal amount of US$208 million of Class I Series 2021 Negotiable Obligations. These Negotiable Obligations are guaranteed in the first degree with the international and regional air station use rates and the rights to indemnification of the concession, and secondly, with the transferred revenues from the cargo terminal.

 

19

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Additional Class I Series 2021 Negotiable Obligations

 

On November 4, 2021, the Company issued additional Class I Series 2021 Notes for an amount of US$64 million, which are fully fungible with the Class I Series 2021 Notes.

 

Class 4 Negotiable Obligations

 

On November 4, 2021, the Company issued Class 4 notes for an amount of US$62 million. They will amortize their capital in 15 quarterly and consecutive installments payable as of February 1, 2025, and a final payment of 33.4% at maturity, seven years from the date of issue. They will accrue interest at a nominal annual rate of 9.50% and will be guaranteed in the first degree, with the income transferred from the cargo terminal on a pari passu basis with certain existing loans, and in the second degree, with the international and regional air station usage fees and rights to compensation of the concession.

 

Class 5 Negotiable Obligations

 

On February 21, 2022, within the framework of the Global Program of Issuances of Negotiable Obligations, AA2000 issued US$138 million to be integrated and payable in pesos with maturity on February 23, 2032, at an interest rate of 5.5% annual nominal value and with an issue price at par (100% of the nominal value). The amortization of the capital of the negotiable obligations was established in 20 quarterly installments as of May 21, 2027, which will be payable at the exchange rate of Reference Communication "A" 3500 of the BCRA.

 

The Class 5 negotiable obligations will be guaranteed in the first degree, with the income transferred from the cargo terminal pari passu with certain existing loans and the Class 4 negotiable obligations, and in the second degree, with the international and regional air station use rates and the rights to compensation of the concession.

 

Class 6 Negotiable Obligations

 

On February 21, 2022, within the framework of the Global Program of Issuances of Negotiable Obligations, AA2000 issued US$36 million to be integrated and payable in pesos, maturing on February 21, 2025, at a nominal 2% interest rate annual and with an issue price at par (100% of the nominal value). The amortization of the capital of the negotiable obligations was established in a single installment at maturity, which will be payable at the exchange rate of Reference Communication "A" 3500 of the BCRA.

 

Class 7 Negotiable Obligations

 

On July 8, 2022, within the framework of the Global Program of Issuances of Negotiable Obligations, AA2000 issued US$20 million to be integrated and payable in pesos, maturing on July 8, 2025, at an annual nominal 0% interest rate and with an issue price at par (100% of the nominal value). The amortization of the capital of the negotiable obligations was established in a single installment at maturity, which will be payable at the exchange rate of Reference Communication "A" 3500 of the BCRA.

 

20

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Class 9 Negotiable Obligations

 

On August 19, 2022, within the framework of the Global Program of Issuances of Negotiable Obligations, AA2000 issued US$ 30 million maturing on August 19, 2026, at an annual nominal interest rate of 0% and with an issue price at par (100% of nominal value).

 

Class 9 Negotiable Obligations were paid in cash for US$ 5 million and in kind for US$ 25 million according to the exchange ratio of US$ 1 nominal value of Class 2 Negotiable Obligations for US$ 1 nominal value of Negotiable Obligations Class 9.

 

The amortization of the capital of the negotiable obligations was established in 3 consecutive quarterly installments, the first payment being on February 19, 2026, the installments will be payable at the exchange rate of Reference Communication "A" 3500 of the BCRA.

 

Syndicated loans

 

On August 9, 2019, the Company has signed two loan agreements: (a) the onshore loan agreement for US $ 85 million and (b) the offshore loan agreement for US $ 35 million. The lenders were Citibank N.A., Industrial and Commercial Bank of China (Argentina) S.A., Banco Galicia y Buenos Aires S.A.U. and Banco Santander Río S.A.

 

The term of the loan contracts will be thirty-nine months, as from the disbursement date.

 

The capital under the loan agreements will be repaid in eight equal and consecutive quarterly installments, the first capital payment made one year after the disbursement date, and will accrue interest: (i) with respect to the Onshore Loan Agreement, at a fixed rate of nominal annual 9.75%; (ii) with respect to the Offshore Loan Agreement, at a variable rate equivalent to (a) the LIBOR rate plus (b) an applicable margin of 5.500% annual nominal plus (c) the applicable (withholding tax).

 

In order to guarantee the repayment of the loan agreements, the Company constituted a trust under which it was assigned fiduciary for guarantee purposes in accordance with the provisions of article 1680 and concordant of the Civil and Commercial Code of the Nation and for the benefit of each and every one of the lending banks, as beneficiaries (a) the collection rights, whether charged directly by the Company or a third party for the account and / or order of the Company, with respect to the total flow of funds for import and export services provided by Terminal de Cargas Argentinas (business unit of the Company), including but not limited to storage, handling, refrigeration and scanning of merchandise in any of the Airports of the Company (with the exception of 15% corresponding to the total revenues of the Concession, in accordance with the provisions of clause 5 of the Memorandum Agreement); and (b) the collection rights of the Company as a trustee pursuant to the provisions of article 11.4 of the Negotiable Obligations guarantee contract between the Company and Citibank dated January 17, 2017, in the event of termination, expropriation or rescue of the Concession Contract; including the right to receive and withhold all payments pursuant to them and any other proceeds thereof, fiduciary assigned under guarantee of the Negotiable Obligations by the Company under the Negotiable Obligations Guarantee Trust. Said assignment has been authorized by Resolution No. 61/2019 of the ORSNA dated August 8, 2019.

 

21

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Syndicated loans (Contd.)

 

During 2020 and 2021, the Company entered into a series of agreements for the purpose of deferring (in financial terms) the capital repayment installments of the Onshore and Offshore loans respectively and exempting the company from the obligation to comply with certain expected financial ratios. By virtue of these agreements, AA2000 signed bilateral contracts with each of the financial entities and additionally, in accordance with the provisions of the BCRA through Communication "A" 7106, it was agreed to extend 60% of the installments of the Offshore loan with Citibank N.A. Due on November 19, 2020 and February 19, 2020.

 

On October 26, 2021, a new framework agreement was signed through which the refinancing of the debt contracted under the onshore and offshore loans, respectively, was implemented. Through the Framework Agreement, the deferral (in financial terms) of capital amortization installments for a total of US$58 million and the deferral of current bilateral loans for a total of $3,607 million were agreed.

 

Likewise, the same guarantee scheme is maintained as the Onshore and Offshore loans.

 

The repayment of the disbursed capital was established through 8 equal and consecutive quarterly installments, corresponding to the payment of the first installment in February 2023 and disbursements in pesos and/or US dollars.

 

Disbursements denominated in Argentine pesos accrue quarterly interest at a variable rate equivalent to the corrected BADLAR rate with recognition of Leliq plus an applicable margin of 10.00% nominal annual for the case of Industrial and Commercial Bank of China (Argentina) S.A., Banco de Galicia and Buenos Aires S.A.U. and Banco Santander Río S.A. and Badlar Rate. In the case of Citibank N.A a variable rate equivalent to the higher of the (i) BADLAR rate; or (ii) the interest rate on passive repo operations for the BCRA at 1 day term plus an applicable margin of 15.00% nominal annual.

 

Disbursements denominated in US dollars accrue a nominal annual rate of 8.5%.

 

On November 19, 2021, the first disbursement was made under the syndicated loan, through which all the bilateral loans and the November amortization installment corresponding to the onshore loan and the offshore loan were cancelled. Citibank N.A., Industrial and Commercial Bank of China (Argentina) S.A., Banco de Galicia y Buenos Aires S.A.U. and Banco Santander Río S.A. disbursed a total of $3,747 million while ICBC additionally disbursed US$10 million.

 

On December 1, 2021, Citibank disbursed $197 milion under the syndicated loan in order to pay the December amortization installment of the offshore loan.

 

22

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Syndicated loans (Contd.)

 

On February 22, 2022, under the syndicated loan, Citibank N.A., S.A., Banco de Galicia and Buenos Aires S.A.U. and Banco Santander Río S.A. disbursed a total of $804 million, while the Industrial and Commercial Bank of China (Argentina) disbursed US$4 million.

 

The disbursements were used to cancel the entire February amortization installment corresponding to the onshore loan and the offshore loan.

 

On March 2, 2022, Citibank disbursed $207 million under the syndicated loan in order to pay the March amortization installment of the offshore loan.

 

On April 13, 2022, the Company prepaid for a total of $3,905 million 79% of the loans denominated in $ disbursed to date under the syndicated loan.

 

On May 24, 2022, under the syndicated loan, Citibank N.A., S.A., Banco de Galicia and Buenos Aires S.A.U. and Banco Santander Argentina S.A. disbursed a total of $893 million, while the Industrial and Commercial Bank of China (Argentina) disbursed US$ 4 million.

 

The disbursements were used to pay off the entire May amortization installment corresponding to the onshore loan and the offshore loan.

 

On June 1, 2022, Citibank disbursed $234 million under the syndicated loan in order to pay the June amortization installment of the offshore loan.

 

On July 14, 2022, the Company prepaid for a total of $2,181 million, 100% of the loans denominated in Argentine pesos under the syndicated loan.

 

On August 16, 2022, under the syndicated loan, Citibank N.A., S.A., Banco de Galicia y Buenos Aires S.A.U., Banco Santander Argentina S.A. and Industrial and Commercial Bank of China (Argentina) disbursed a total of $1,543 million

 

On August 1, 2022, the Company notified Citibank N.A. the decision not to receive the Disbursement in pesos corresponding to the Capital Amortization Fee payable by AA2000 to Citibank Argentina corresponding to the month of September 2022 under the Offshore Loan, for an amount of US$ 2 million whose Disbursement Date was scheduled for September 1, 2022.

 

On October 24, 2022, the Company notified Citibank N.A. the decision not to receive the disbursement in pesos corresponding to the capital amortization installments payable by AA2000 to Citibank Argentina corresponding to the month of November 2022 and February 2023 under the Offshore Loan, for an amount of US$ 2 million each, whose Disbursement Date was scheduled for November 19, 2022 and February 19, 2023, respectively.

 

On February 22, 2023, the Company paid the last repayment installment of the Offshore loan for a total of US$ USD 2 million.

 

23

 

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Syndicated loans (Contd.)

 

On March 30, 2023, the Company paid in advance for a total of $1,351 million 100% of the loans denominated in Argentine pesos under the syndicated loan.

 

City Bank Loan

 

On November 1, 2021, the Company signed a loan agreement for US$5 million, the disbursement of which was made on November 18, 2021. The loan has a term of 24 months, will accrue a nominal annual rate of 6.00% and its capital will amortize 30% at 12 months and 18 months, and 40% at 24 months. It will be guaranteed with the transferred income corresponding to the Jorge Newbery airport parking lot and the contracts entered into with Gate Gourmet Argentina S.A and Sky Chefs Argentine INC., Argentine Branch.

 

Macro Bank Loan

 

On January 21, 2020, the Company took out a US$10 million loan that can be canceled in 180 days with a nominal annual rate of 6%. On May 11, 2020, the rescheduling of the US$10 million loan was agreed, extending its term until July 27, 2021 with a compensatory annual nominal rate of 10%, whose principal will be paid in a single installment at maturity and whose payments interest will be made quarterly. For the purpose of guaranteeing the loans, the future credits for the use of airport fees (for domestic flights) to be collected from Aerolíneas Argentinas S.A. were assigned as collateral.

 

On July 29, 2021, a new rescheduling of the US$10 million loan was agreed, extending its term until December 23, 2022 with a compensatory nominal annual rate of 7.75%, whose principal was paid in 3 equal installments maturing in July. , October and December 2022 and whose interest payments were made quarterly. The loan was guaranteed by assigning as collateral the future credits for the use of airport fees (for domestic flights) to be collected from Aerolíneas Argentinas S.A.

 

The loan was paid in full on December 23, 2022.

 

Commitment agreement for the provision of funds Banco Macro S.A.

 

On March 25, 2022, the Company entered into a commitment agreement for the provision of funds in the amount of up to US$40 million with Banco Macro S.A., whose funds to be eventually disbursed will be applied to the purposes set forth in the agreement signed with the Entity Regulator of the National Airport System dated September 2, 2021, approved by Resolution 60/21 of said body. As of the date of these financial statements, it is not in force.

 

Loan Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch

 

On July 25, 2022, a loan agreement was signed with the Industrial and Commercial Bank of China, Dubai Branch for US$10 million. whose disbursement was made on July 29, 2022. The duration of the loan contracts was established at thirty-nine months, counted from the date of disbursement.

 

24

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 6 – FINANCIAL DEBTS (Contd.)

 

Loan Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch (Contd.)

 

The loan contract establishes the repayment of principal in three consecutive quarterly installments, with the first payment 33 months after the disbursement date, accruing interest at a variable rate equivalent to the SOFR rate plus an applicable margin of 7.875% nominal annual plus the applicable tax withholdings ("withholding tax").

 

The loan will be guaranteed in the first degree, with the income transferred from the cargo terminal on a pari passu basis with certain existing loans and the Class 4 negotiable obligations, and in the second degree, with the fees for the use of international and regional airstations and the rights to compensation of the concession.

 

Overdrafts in Citibank checking account

 

On March 28, 2023, it signed three overdraft contracts with Citibank for ARS 193 million each whose maturities operate on May 19, 2023, August 22, 2023 and November 21, 2023. Each of these overdrafts accrues a rate annual nominal interest rate of 76%.

 

On the other hand, the same day it signed another contract of overdrafy with Citibank for ARS 772 million whose maturity is on March 26, 2024 and accrues an annual nominal rate of 76%.

 

NOTE 7 – BALANCES AND TRANSACTIONS WITH RELATED PARTIES

 

Balances with other related companies at March 31, 2023 and December 31, 2022 are as follows:

 

      03.31.2023   12.31.2022 
   Note  Millions of $ 
Trade receivables          
Other related companies      248    389 
       248    389 
Other receivables             
Other related companies      265    314 
       265    314 
Accounts payable and other             
Other related companies      276    302 
       276    302 

 

During the three months periods ended at March 31, 2023 and 2022, the Company has charged to the cost $185 million and $297 million, respectively with Proden SA for rental and maintenance of offices.

 

During the three months periods ended at March 31, 2023 and 2022, the Company has charged $209 million and $176 million, respectively to cost with Grass Master S.A.U. for airport maintenance. Additionally, for the three-month period ended March 31, 2023, the Company has allocated $7 million to intangible assets.

 

25

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 7 – BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Contd.)

 

During the three months periods ended at March 31, 2023 and 2022, the Company has allocated $68 million and $76 million, respectively to the cost with Tratamientos Integrales América S.A.U for airport maintenance.

 

During the three months periods ended at March 31, 2023 and 2022, the Company has charged at cost $65 million and $60 million, respectively with Servicios Integrales América for out sourcing of systems and technology.

 

At March 31, 2023 and December 31, 2022 the Company owed the Argentine National Government $4,452 million and $5,900 million respectively, corresponding to the specific allocation of revenues (see Note 10) and has recorded a receivable for $11,103 million and $11,740, respectively corresponding to the Trust for Strengthening to fund the infrastructure works of AA2000. Additionally, as of March 31, 2023, $38,698 million is owed to the National Government, as a debt for the redemption of preferred shares, see Note 14.

 

Furthermore, short-term compensation to key management was $75 million and $58 million for the three-month periods ended at March 31, 2023 and 2022, respectively.

 

Corporación America S.A. is the direct owner of 45.90% of the common shares of the Company, and an indirect owner through Corporación America Sudamericana S.A of 29.75% of the common shares of the Company, therefore is the immediate controlling entity of the Company.

 

Corporación America S.A is controlled by Cedicor S.A, which is the owner of the 96.1817% of its capital stock. Cedicor S.A is 100% controlled by American International Airports LLC and at the same time it is controlled a 100% by Corporación America Airport S.A.

 

The ultimate beneficiary of the Company is Southern Cone Foundation. Its purpose is to manage its assets through decisions adopted by its independent Board of Directors. The potential beneficiaries are members of the Eurnekian family and religious, charitable and educational institutions.

 

NOTE 8 – BAD DEBT PROVISIONS

 

   2023   2022 
   Millions of $ 
Initial balance at January 1   2,871    10,905 
Increases / (Recoveries)   174    120 
Foreign exchange difference   228    518 
Usage   (127)   (474)
Inflation adjustment   (522)   (1,416)
Final Balance at March 31   2,624    9,653 

 

26

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Notes to the Condensed Consolidated Interim Financial Statements

At March 31, 2023 presented in comparative format (Contd.)

 

NOTE 9 – PROVISIONS AND OTHER CHARGES

 

   Note  At January 1
2023
   Increases /
(Recovery)
   Decreases   Inflation
Adjustment
   Accruals   Exchange
rate
differences
   At March 31,
2023
   Total Non
Current
  

Total
current

 
                                        
      Millions of $   Millions of $ 
Litigations     1,112    61    (136)   (196)   -    119    960    425    535 
Deferred Income      3,643    285    -    (346)   (534)   313    3,361    788    2,573 
Trust for works      2,298    948    (1,521)   (371)   154    -    1,508    -    1,508 
Guarantees Received      389    117    (31)   (18)   -    -    457    -    457 
Upfront fees from Concessionaires      920    22              (53)   -    889    665    224 
Others      1,786    1    (303)   (306)   228    29    1,435    683    752 
Total of provisions and other liabilities      10,148    1,434    (1,991)   (1,237)   (205)   461    8,610    2,561    6,049 

 

   Note  At January 1
2022
   Increases /
(Recovery)
   Decreases   Inflation
Adjustment
   Accruals   Exchange
rate
differences
   At March 31,
2022
   Total Non
Current
  

Total
current

 
                                        
      Millions of $   Millions of $ 
Litigations     1,648    4    (85)   (215)   -    89    1,441    630    811 
Deferred Income      4,213    128    -    (229)   (487)   70    3,695    1,085    2,610 
Trust for works      5,074    521    (932)   (660)   366    -    4,369    2,131    2,238 
Guarantees Received      366    38    (10)   (60)   -    -    334    -    334 
Upfront fees from Concessionaires      585    15    -    -    (47)   -    553    423    130 
Dividends to be paid      534    -    -    (70)   -    39    503    -    503 
Debt with the National State      -    38,626    -    (3,655)   3,727    -    38,698    16,163    22,535 
Others      1,316    46    -    (174)   17    98    1,303    654    649 
Total of provisions and other liabilities      13,736    39,378    (1,027)   (5,063)   3,576    296    50,896    21,086    29,810 

 

 

27

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

NOTE 10 - COSTS OF SALES, ADMINISTRATIVE, DISTRIBUTION, AND SELLING EXPENSES

 

Item  Cost of sales   Distribution and
selling expenses
   Administrative
expenses
   Total 
  Millions of $ 
Three month period ended at 03.31.2023                    
Specific allocation of revenues   5,961    -    -    5,961 
Airport services and maintenance   4,211    -    42    4,253 
Amortization of intangible assets   4,195    1    26    4,222 
Depreciation of property, plant and equipment   11    -    -    11 
Salaries and social security contributions   6,660    68    841    7,569 
Fees for services   52    -    126    178 
Public utilities and contributions   851    1    3    855 
Taxes   235    2,065    276    2,576 
Office expenses   663    1    251    915 
Insurance   51    -    19    70 
Advertising expenses   -    54    -    54 
Bad debts charges   -    174    -    174 
Board of Directors and Supervisory Committee fees   -    -    15    15 
Depreciation right of use   183    -    -    183 
Total at 03.31.2023   23,073    2,364    1,599    27,036 
                     
Three month period ended at 03.31.2022                    
Specific allocation of revenues   4,526    -    -    4,526 
Airport Services and maintenance   3,799    -    4    3,803 
Amortization of intangible assets   4,555    1    25    4,581 
Depreciation of property, plant and equipment   5    -    -    5 
Salaries and social security contributions   4,707    46    576    5,329 
Fees for services   29    -    125    154 
Public utilities and contributions   849    1    4    854 
Taxes   191    1,582    223    1,996 
Office expenses   349    1    62    412 
Insurance   60    -    8    68 
Advertising expenses   -    3    -    3 
Bad debts charges   -    120    -    120 
Board of Directors and Supervisory Committee fees   -    -    18    18 
Depreciation right of use   181    -    -    181 
Total at 03.31.2022   19,251    1,754    1,045    22,050 

 

28

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

NOTE 11- FOREIGN CURRENCY ASSETS AND LIABILITIES

 

 

Foreign currency type
and amount at
03.31.2023

  Foreign
exchange
rates
   Amount in local
currency at
03.31.2023
   Amount in local
currency at
12.31.2022
 
                
Item         Millions of $ 
Assets                   
Current Assets                     
Net trade receivables  US$ 27    208.6100    5,592    5,849 
Cash and cash equivalents  US$ 57    208.6100    11,897    25,136 
Total current assets              17,489    30,985 
Total assets              17,489    30,985 
                      
Liabilities                     
Current Liabilities                     
Provisions and other charges  US$ 5    209.0100    944    519 
Financial debts  US$ 74    209.0100    15,413    16,366 
Lease liabilities  US$ 2    209.0100    325    472 
Commercial accounts payable and others  US$ 7    209.0100    1,432    1,750 
   EUR 2    227.1103    354    247 
Total current liabilities              18,468    19,354 
                      
Non-Current Liabilities                     
Provisions and other charges  US$ 5    209.0100    1,091    1,197 
Financial debts  US$ 645    209.0100    134,791    139,961 
Commercial accounts payable and others  US$ 1    209.0100    271    285 
Total non- current liabilities              136,153    141,443 
Total liabilities              154,621    160,797 
Net liability position              137,132    129,812 

 

NOTE 12 – OTHER RESTRICTED ASSETS

 

Other than what is mentioned in Note 1 and 6, other receivables in current assets at March 31, 2023 and December 31, 2022 include $1 million and $2 million corresponding to guarantees granted to third parties in connection with lease agreements. Likewise, as of March 31, 2023, and December 31, 2022, under Cash and cash equivalents, there are balances in bank accounts specifically earmarked for the cancellation of Series 2021 and Class IV negotiable obligations for $1,023 million and $1,038 million, respectively.

 

29

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

NOTE 13 - CAPITAL STOCK

 

At March 31, 2023 capital stock is as follows:

 

   Par Value 
   $ 
Paid-in and subscribed   258.517.299 
Registered with the Public Registry of Commerce   258.517.299 

 

The Company’s capital stock is comprised of 258,517,299 common shares of $1 par value and entitled to one vote per share.

 

On March 10, 2022, the redemption of the preferred shares issued by the company and the consequent capital reduction from $1,169,495,813 to $258,517,299 were resolved. Said capital reduction was registered in the Public Registry on September 8, 2022, under number 16,654, of book 109 of Joint Stock Companies.

 

NOTE 14 - DIVIDENDS BY PREFERRED SHARES

 

On February 25, 2022, the AA2000 board resolved:

 

(i) redeem all of the outstanding preferred shares, that is, 910,978,514 preferred shares;

 

(ii) that the redemption price will be the equivalent of: a) the nominal value ($910,978,514) adjusted for inflation at the redemption date, that is, at the date of the board meeting, which amounts to $16,506. 174,484; plus b) the value of the dividend of the preferred shares accrued for the year 2020, which was not paid in a timely manner due to the non-existence of profits, but which according to the issuance conditions is cumulative, which adjusted for inflation at the redemption date amounts to ($330,123,490); plus c) the value of the dividend of the preferred shares accrued for fiscal year 2021 and the proportional dividend for fiscal year 2022 adjusted for inflation until the redemption date ($389,421,266). Consequently, the total value of the redemption will amount to $17,225,719,240;

 

(iii) that the price be paid as follows: a) the sum of $11,100,000,000 once the capital reduction procedure has been completed and the term for oppositions established in the General Companies Law has elapsed; and b) the balance, before December 31, 2024, with the possibility of making partial payments. Said balance will accrue interest equivalent to the corresponding adjustment for inflation plus two percent per year of the value of the debt; and

 

(iv) that, from the redemption of the preferred shares, although the preferred shares will participate in the shareholders' meeting that resolves their cancellation, the amount to be redeemed will be accounted for in social liabilities.

 

30

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

NOTE 14 - DIVIDENDS BY PREFERRED SHARES (Contd.)

 

The adjustment of the preferred shares to be redeemed was made in compliance with the provisions of General Resolution No. 777/18 of the National Securities Commission.

 

In turn, it resolved to call an extraordinary general meeting for March 10, 2022 in order to approve the redemption of the preferred shares, the reduction of the capital stock and the reform of article 2.01 of the bylaws.

 

At the meeting held on March 10, 2022, it was resolved to approve the redemption of the preferred shares in the terms approved by the board of directors and:

 

(a) Reduce the capital stock of Aeropuertos Argentina 2000 S.A. from one thousand one hundred sixty-nine million four hundred ninety-five thousand eight hundred thirteen pesos ($1,169,495,813) to two hundred fifty-eight million five hundred seventeen thousand two hundred ninety-nine pesos ($258,517,299), that is, for the sum of nine hundred ten million nine hundred seventy-eight thousand five hundred fourteen pesos ($910,978,514), canceling 910,978,514 shares owned by the National State.

 

(b) Set the value of the shares canceled as a result of the capital reduction at eighteen pesos 9090/1000 ($18.9090) per share.

 

(c) Affect for the payment of the shares the amount of capital stock, plus the capital adjustment that corresponds to the preferred shares, and for the difference to be paid, affect the “optional reserves” account.

 

(d) Reform article 2.01 of the corporate bylaws, which was worded as follows: “2.01. The evolution of the capital stock will appear in the balance sheets of the company as it results from the increases registered in the Public Registry. The capital stock is represented by 79,105,489 book-entry common shares class A subclass R, 79,105,489 common book-entry shares class B subclass R, 61,526,492 common book-entry shares class C subclass R, 38,779,829 common book-entry shares class D, and by subclass L book-entry ordinary shares that are issued under the public offering system.”

 

The capital reduction by redemption of the preferred shares and the reform of the bylaws was registered in the Public Registry on September 8, 2022 under number 16,654 of book 109, volume of Stock Companies.

 

NOTE 15 – RESOLUTIONS OF SHAREHOLDERS’ ORDINARY AND SPECIAL MEETING OF CLASS A, B, C AND D SPECIAL OF PREFERRED SHARES OF AEROPUERTOS ARGENTINA 2000 S.A. HELD ON APRIL 28, 2022 AND APRIL 26, 2023

 

In the ordinary general meeting, special class A, B, C and D shares and extraordinary, held on April 28, 2022, it was resolved that the negative result of the year of $2,548,150, be transferred to the next year. In turn, it was reported that in accordance with the resolution of the company's extraordinary general meeting of shareholders held on March 10, 2022, all of the outstanding preferred shares were redeemed, that is, 910,978,514 preferred shares, issued in under the provisions of the extraordinary general meeting held on March 6, 2008 and in clause 14 and annex VII of the Concession Agreement Adequacy Agreement Minutes. Consequently, the payment of dividends for said shares does not correspond.

 

31

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

NOTE 15 – RESOLUTIONS OF SHAREHOLDERS’ ORDINARY AND SPECIAL MEETING OF CLASS A, B, C AND D SPECIAL OF PREFERRED SHARES OF AEROPUERTOS ARGENTINA 2000 S.A. HELD ON APRIL 28, 2022 AND APRIL 26, 2023 (Contd.)

 

Finally, in the ordinary and special general meeting of classes A, B, C and D of shares, held on April 26, 2023, it was resolved that the positive result of $40,638,030,971 which, after absorbing the accumulated losses of the previous year for an amount of ($22,199,777,489), amounting to $18,438,253,482 has the following destination: (i) $614,780,045 to the constitution of the legal reserve, up to 20% of the capital stock plus the capital adjustment; and (ii) the balance of $17,823,473,437 to establish an optional reserve for the execution of future works plans and to guarantee the payment of future dividends, if applicable.

 

NOTE 16 – EARNINGS PER SHARE

 

The Shareholders’ General Extraordinary Meeting held on March 6, 2008, approved by the ORSNA on April 25, 2008, earnings per share is calculated as net income for the period less accrued preferred shares dividends for the period, divided by the number of common shares

 

   03.31.2023   03.31.2022 
Income for the period (in millions of $)   7,775    13,131 
Amount of ordinary shares (millions)   259    259 
Earnings per shares   30.0193    50.7896 

 

NOTE 17- FINANCIAL RISK MANAGEMENT

 

The Company is exposed by its activities to several financial risks: market risk (including risk of exchange rate, risk of fair value due to interest rate and price risk), credit risk and liquidity risk.

 

These Condensed Consolidated Interim Financial Statements do not include all the information on financial risk management requested in the annual financial statements, thus they should be read together with the Consolidated Financial Statements audited at December 31, 2022.

 

NOTE 18 - EVENTS SUBSEQUENT TO THE END OF THE YEAR

 

Beyond the aforementioned, there have been no events and/or transactions that could significantly affect the equity and financial situation of the Company after the end of the period.

 

32

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

Presentation base

 

The information contained in this Summary has been prepared in accordance with Resolution No. 368/01 of the National Securities Commission ("CNV") and should be read in conjunction with the Condensed Consolidated Interim Financial Statements as of March 31, 2023 presented in comparative form, prepared in accordance with IFRS standards.

 

In compliance with the provisions of the CNV regulations, the values corresponding to the interim periods of this informative review are expressed in constant currency at March 31, 2023, in accordance with International Accounting Standard N ° 29 “Financial information in hyperinflationary economies”. For more information, see Note 3.7 to the Consolidated Condensed Interim Financial Statements at March 31, 2023.

 

1. General considerations

 

International Financial Reporting Standards (IFRS)

 

The National Securities Commission ("CNV"), through General Resolutions No. 562/09 and 576/10, has established the application of Technical Resolutions No. 26 and 29 of the Argentine Federation of Professional Councils of Economic Sciences, which they adopt IFRS (IFRS), issued by the International Accounting Standards Board (IASB), for entities included in the public offering regime of Law No. 17,811, either for their capital or for their negotiable obligations, or who have requested authorization to be included in the aforementioned regime.

 

The application of such standards is mandatory for the Company as of the fiscal year beginning on January 1, 2012.

 

-         Seasonality

 

The Company's revenues are highly influenced by the seasonality of air traffic in Argentina. The traffic of planes and passengers and, consequently, the income of the Company are higher during the summer and winter months (December - February and July - August), basically because they are holiday periods.

 

33

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

1. General considerations (Contd.)

 

During the year 2023, projects and works have been carried out at the different concessioned airports.

 

Ezeiza International Airport

 

Works are underway, with paralysis due to the pandemic:

-         New Control Tower. (Project and supervision of AA2000);

-         Beacon ring and main electrical substation;

 

In execution, after the stoppage by the pandemic:

-         New Parallel Shooting at Header 35; and

-         TWY beacon to Header 35.

 

It is in the final stage, to enable operation of the Departures Building

-         Hall B and Zeppelin.

 

The launching of the work of New Feeders 9 and 10 in 13.2 KV has been carried out.

 

Jorge Newbery Airport

 

In execution, with reactivation after the stoppage due to the pandemic, the work:

-         External works - sidewalks - landscaping - coastal filling and underground parking;

-         Expansion of the South Platform – Stage 2; and

-         Expansion of the North Platform;

 

The work has been completed: New South Taxation System and Adaptation of the South Strip, Sanitary and Sewer Network in Cabecera Sur. In this, the works related to the sanitary network outside the concession area have been completed and are in the final delivery stage.

 

Rio Hondo Airport

 

The works of:

-         Rehabilitation of runway, taxiing and platform;

-         New high-intensity beaconing system for the runway;

-         Maintenance Infrastructure and Support Services; and

-         Expansion and Remodeling of the Passenger Terminal.

 

Santa Rosa Airport

 

-         The remodeling and expansion works of the passenger terminal are underway.

 

34

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

1. General considerations (Contd.)

 

San Rafael Airport

 

The launching of the works have been made:

-         Maintenance Infrastructure and Support Services; and

-         New Passenger Terminal.

 

The works have been completed:

-         Rehabilitation of Runway, Taxiing and Platform; and

-         New beaconing system.

 

Comodoro Rivadavia Airport

 

The New Beaconing work is in the process of being terminated due to lack of reactivation, after the stoppage due to the pandemic.

 

Córdoba Airport

 

The works are in progress, after the stoppage due to the pandemic:

-         Beaconing for runway 18-36; and

-         Atmospheric discharge protection system.

 

They are in the process of termination due to lack of start after the stoppage due to the pandemic. Afterwards the pending works of the expansion of the parking lot will be tendered.

 

Iguazú Airport

 

In execution, after the end of the stoppage due to the pandemic, the works of:

-         Remodeling and expansion of the passenger terminal; and

-         New Parking;

 

Bariloche Airport

 

The execution of the Remote Platform Expansion work has been completed.

 

San Fernando Airport

 

In execution, after the end of the stoppage due to the pandemic, the works of new control tower.

 

35

 

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

1. General considerations (Contd.)

 

San Juan Airport

 

The remodeling work of the passenger terminal is in execution.

 

Aeropuerto de La Rioja

 

The works of the New Passenger Terminal have been terminated due to non-compliance by the supplier.

 

This stoppage has led to the consensual termination of the New Parking works.

 

Both will be tendered again.

 

Esquel Airport

 

In execution, after paralysis due to the pandemic:

-      Integral Remodeling Work of the Passenger Terminal; and

-      TWR Control.

 

Jujuy Airport

 

In execution, after paralysis due to the pandemic, the works of:

-      Complete remodeling of the passenger terminal; and

-      New Parking and Roads.

 

Resistencia Airport

 

The work has been launched:

-      Power Supply to the Control Tower.

 

The works are in progress:

-      Rehabilitation of Alpha Taxiing; and

-      Beaconing of Alpha Taxiing

 

36

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

2. Equity structure

 

In order to appreciate the evolution of the Company's activities, the comparative consolidated equity structure of the financial statements at March 31, 2023, 2022, 2021, 2020 and 2019, is presented.

 

   03.31.2023   03.31.2022   03.31.2021   03.31.2020   03.31.2019 
   Millions of $ 
Current Asset   47,755    100,674    39,662    36,782    54,931 
Non-current Assets   342,701    329,174    339,488    347,954    297,148 
Total Assets   390,456    429,848    379,150    384,736    352,079 
                          
Current liabilities   42,229    90,058    84,753    65,886    44,705 
Non- Current Liabilities   171,736    208,476    141,607    137,785    128,388 
Total Liabilities   213,965    298,534    226,360    203,671    173,093 
                          
Net equity attributable to majority shareholders   176,539    131,311    152,787    180,942    178,870 
Non-controlling interest   (48)   3    3    123    116 
Net Equity   176,491    131,314    152,790    181,065    178,986 
Total   390,456    429,848    379,150    384,736    352,079 

 

37

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

3. Results structure

 

The following is a summary of the evolution of the consolidated statements of comprehensive income for the three-month periods ended at March 31, 2023, 2022, 2021, 2020 and 2019.

 

   03.31.2023   03.31.2022   03.31.2021   03.31.2020   03.31.2019 
   Millions of $ 
Gross Profit   17,247    11,285    2,628    10,462    19,627 
Administrative and distribution and marketing expenses   (3,963)   (2,799)   (1,716)   (4,132)   (4,777)
Other net income and expenses   898    677    (1,904)   982    1,140 
Operating profit   14,182    9,163    (992)   7,312    15,990 
Income and financial costs   1,418    1,888    566    (3,627)   (2,354)
Result by exposure to changes in the acquisition power of currency   (754)   2,765    (1,332)   (558)   (2,669)
Income for related parties   0    -    -    -    - 
Income before tax   14,846    13,816    (1,758)   3,127    10,967 
Income tax   (7,071)   (685)   (854)   (2,080)   3,171 
Result of the period   7,775    13,131    (2,612)   1,047    14,138 
Other comprehensive incomes   -    -    -    -    - 
Comprehensive income for the period   7,775    13,131    (2,612)   1,047    14,138 
Result attributable to majority shareholders   7,784    13,131    (2,612)   1,065    14,135 
Non-controlling interest   (9)   0    0    (18)   3 

 

38

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

4. Cash flow structure

 

Below is a summary of the evolution of the consolidated statements of cash flows for the three-month periods ended March 31, 2023, 2022, 2021, 2020 and 2019.

 

   03.31.2023   03.31.2022   03.31.2021   03.31.2020   03.31.2019 
   Millions of $ 
Cash Flow generated / (used in) by operating activities   4,653    4,042    2,730    3,419    (357)
Cash Flow  generated / (used in) by investing activities   (20)   (21,581)   629    312    1,313 
Cash Flow (used in) / generated by financing activities   (5,465)   39,416    (2,644)   (3,803)   (2,056)
Net Cash Flow (used in) / generated by the period   (832)   21,877    715    (72)   (1,100)

 

5. Analysis of operations for the three-month periods ended at March 31, 2023 and 2022

 

Results of operations

 

      Income

 

The following table shows the composition of consolidated revenues for the three-month periods ended at March 31, 2023 and 2022:

 

Revenues  03.31.2023  

%

Revenues

   03.31.2022  

%

Revenues

 
   Millions of $       Millions of $     
Aeronautical revenues   23,074    57.24%   14,398    47.16%
Non-aeronautical revenues   17,240    42.76%   16,129    52.84%
Total   40,314    100.00%   30,527    100.00%

 

39

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

5. Analysis of operations for the three-month periods ended at March 31, 2023 and 2022 (Contd.)

 

The following table shows the composition of the aeronautical revenues for the three-month periods ended at March 31, 2023 and 2022:

 

Aeronautical revenues  03.31.2023  

%

Revenues

   03.31.2022  

%

Revenues

 
   Millions of $       Millions of $     
Landing fee   1,686    7.31%   1,301    9.04%
Parking fee   619    2.68%   481    3.34%
Air station use rate   20,769    90.01%   12,616    87.62%
Total   23,074    100.00%   14,398    100.00%

 

Costs of sale

 

The cost of sales had the following variation:

 

   Millions of $ 
Costs of sales for the period ended at 03.31.2023   23,073 
Costs of sales for the period ended at 03.31.2022   19,251 
Variation   3,822 

 

Administrative Expenses

 

The administrative expenses had the following variation:

 

   Millions of $ 
Administrative expenses for the period ended at 03.31.2023   1,599 
Administrative expenses for the period ended at 03.31.2022   1,045 
Variation   554 

 

40

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

5. Analysis of operations for the three-month periods ended at March 31, 2023 and 2022 (Contd.)

 

Distribution and marketing expenses

 

The distribution and marketing expenses had the following variation:

 

   Millions of $ 
Distribution and commercial expenses for the period ended at 03.31.2023   2,364 
Distribution and commercial expenses for the period ended at 03.31.2022   1,754 
Variation   610 

 

Income and financial costs

 

Net financial income and costs totaled profits of $1,418 million during the three-month period ended at March 31, 2023 with respect to $1,888 million revenue during the same period of the previous year.

 

The variation is mainly due to the result originated from exposure to foreign currency.

 

Other incomes and expenditures

 

The other net income and expense item recorded revenue of approximately $898 million during the three-month period ended at March 31, 2023 with respect to $677 million of revenue in the same period of the previous year.

 

Liquidity and Capital Resources

 

Capitalization

 

The total capitalization of the Group at March 31, 2023 amounted to $323,991 million composed of $147,500 million of financial debt and a net equity worth of $176,491 million, while the total capitalization of the Company at March 31, 2022 amounted to $313,159 million comprised of $181,845 million of financial debts and a net equity worth of $131,314 million.

 

The debt as a percentage of total capitalization amounted to approximately 45.53% at March 31, 2023 and 58.07% at March 31, 2022.

 

Financing

 

See in detail Note 6 to these Condensed Consolidated Interim Financial Statements.

 

41

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

6. Index

 

The information refers to the periods ended at March 31, 2023, 2022, 2021, 2020 and 2019:

 

   03.31.2023   03.31.2022   03.31.2021   03.31.2020   03.31.2019 
Liquidity (*)   1.211    1.153    0.478    0.570    1.260 
Solvency (*)   0.842    0.449    0.693    0.898    1.040 
Immobilization of capital   0.878    0.766    0.895    0.904    0.840 
Cost effectiveness   0.045    0.091    0.017    0.006    0.081 

 

(*) Current liabilities and non-current liabilities do not include deferred profits.

 

42

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

7. Statistical data

 

The information detailed below is based on extra-budgetary statistics compiled by the Company. Number of passengers (in thousands) for the thee-month periods ended at March 31, 2023, 2022, 2021, 2020 and 2019:

 

Airport  03.31.2023   03.31.2022   03.31.2021   03.31.2020   03.31.2019 
   In thousands of passengers 
Aeroparque   3,643    2,721    152    2,278    3,482 
Ezeiza   2,746    1,484    1,525    2,828    3,082 
Córdoba   643    595    141    695    947 
Bariloche   589    533    271    433    430 
Mendoza   527    359    138    430    579 
Iguazu   352    229    58    352    385 
Salta   334    272    99    323    325 
Tucumán   205    152    63    177    239 
Jujuy   146    99    36    81    101 
C. Rivadavia   122    80    33    121    169 
Total   9,307    6,524    2,516    7,718    9,739 
Overall total   9,960    7,060    2,705    8,702    10,609 
                          
Variation   41.1%   161.0%   -68.9%   -18.0%   6.9%

 

Amount of movement of aircraft for the three-month periods ended at March 31, 2023, 2022, 2021, 2020 and 2019 of the ten airports that represent more than 80% of the total movements of the airport system:

 

Airport  03.31.2023   03.31.2022   03.31.2021   03.31.2020   03.31.2019 
Aeroparque   28,409    22,113    1,646    21,186    31,738 
Ezeiza   15,465    10,737    14,803    20,158    20,800 
Córdoba   5,935    4,286    2,018    6,406    8,845 
Mendoza   4,865    3,334    1,678    4,303    5,761 
San Fernando   4,712    13,589    10,803    9,201    10,422 
Bariloche   4,528    4,052    2,649    3,336    3,675 
Iguazú   2,598    1,802    1,184    3,315    3,201 
Salta   2,517    2,465    1,228    2,973    3,291 
Tucumán   1,845    1,302    544    1,589    2,206 
C. Rivadavia   1,457    1,229    1,145    2,045    2,547 
Total   72,331    64,909    37,698    74,512    92,486 
Overall total   81,985    79,623    47,908    90,015    111,215 
                          
Variation   3.0%   66.2%   -46.8%   -19.1%   2.8%

 

43

 

Aeropuertos Argentina 2000 S.A.

Registration number with the Superintendency of Corporations: 1645890

Additional information to the Condensed Individual Interim Financial Statements

At March 31, 2023 presented in comparative format

 

Outlook for 2023

 

The first quarter of 2023 consolidated the level of recovery in the international passenger segment, reaching a level of 83% of pax in March 2023 compared to the same level of 2019. In the domestic segment, traffic continued to grow, with a passenger peak in January for the summer season, which was 17% above the year 2019.

 

For the remainder of 2023, we expect passenger volume to continue on the path of recovery on the international front, and maintain the growth trend in the domestic segment.

 

Simultaneously, in the context of sustained passenger recovery, we continue to monitor the Company's operating costs in order to take advantage of the efficiency achieved during the pandemic.

 

Likewise, we expect to continue with the execution of the investments of works program established in our contractual framework, with a projection of works both in the airports of the Buenos Aires area and in several airports in the interior of the country, consolidating the improvement and modernization program of the airport infrastructure with a federal perspective.

 

 

 

 

“Free translation from the original in Spanish for publication in Argentina”

 

 

 

REPORT ON REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

To the Shareholders, Chairman and Directors of

Aeropuertos Argentina 2000 S.A.

Legal address: Honduras 5663

Autonomous City of Buenos Aires

Tax Code: 30-69617058-0

 

Report on the condensed consolidated interim financial statements

 

Introduction

 

We have reviewed the attached condensed consolidated interim financial statements of Aeropuertos Argentina 2000 S.A. and are subsidiaries (hereinafter "the Company"), which comprise the consolidated statement of financial position as of March 31, 2023, the statements of comprehensive income, of changes in equity and cash flows for the three-month period ended March 31, 2023 and selected explanatory notes.

 

Board Responsibility

 

The Board of Directors of the Company is responsible for the preparation and presentation of the financial statements in accordance with the International Financial Reporting Standards, adopted by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE) as professional accounting standards and incorporated by the National Securities Commission (CNV) to its regulations, as approved by the International Accounting Standards Board (IASB) and, therefore, is responsible for the preparation and presentation of the condensed consolidated interim financial statements. mentioned in the first paragraph in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34).

 

Scope of review

 

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on the review we have performed, which was performed in accordance with the International Standard for Review Engagements NIER 2410 "Review of interim financial information developed by the entity's independent auditor", which was adopted as a review standard in Argentina through Resolution FACPCE Technique No. 33 as approved by the International Auditing and Assurance Standards Board (IAASB). A review of condensed consolidated interim financial statements consists of making inquiries primarily of personnel responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially narrower in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not allow us to be confident that we have identified all significant matters that might be noted in an audit. Accordingly, we do not express an audit opinion.

 

 

 

 

“Free translation from the original in Spanish for publication in Argentina”

 

 

 

Conclusion

 

Based on our review, nothing has come to our attention that would cause us to believe that the condensed consolidated interim financial statements mentioned in the first paragraph of this report are not prepared, in all material respects, in accordance with International Accounting Standard 34.

 

Report on the compliance with current regulations

 

In compliance with current provisions, we report, with respect to Aeropuertos Argentina 2000 SA, that:

 

a)the condensed consolidated interim financial statements of Aeropuertos Argentina 2000 SA are pending to be recorded in the book Inventories and Balance Sheets;

 

b)the condensed individual interim financial statements arise from accounting records kept in their formal aspects in accordance with legal regulations, except for their lack of transcription in the book Inventories and Balance Sheets;

 

c)we have read the informative review, on which, in what is a matter of our competence, we have no observations to formulate;

 

d)As of March 31, 2023, the debt accrued in favor of the Integrated Argentine Social Security System of Aeropuertos Argentina 2000 SA that arises from the Company's accounting records amounted to $ 722,840,343, not being payable as of that date.

 

Autonomous City of Buenos Aires, May 5, 2023.

 

PRICE WATERHOUSE & CO. S.R.L.    
     
by (Partner)    
Mariano C. Tomatis    

 

 

 

 

SURVEILLANCE COMMITTEE REPORT

 

To the shareholders of

AEROPUERTOS ARGENTINA 2000 S.A.

 

In accordance with the requirements of the article 294 subsection 5º of Law 19,550 and the article 63 subsection b) of the BYMA Regulations (Argentine Stock and Market), we have conducted the review described in the second paragraph regarding the interim condensed consolidated financial statements of Aeropuertos Argentina 2000 S.A., including the consolidated statement of financial position as of March 31, 2023, the consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month period then ended and the selected explanatory notes.

 

Our review was conducted in accordance with the supervisory existing standards. These standards require the verification of the consistency of the revised documents with the information on the corporate decisions established in the minutes and the adequacy of those decisions to the law and the by-laws regarding its formal and documentary aspects.

 

In order to carry out our professional work, we have taken into account the report of the external auditor, Mariano C. Tomatis (partner of Price Waterhouse & Co. SRL), dated May 5th, 2023, who states that it has been issued in accordance with the International Standards on Auditing (ISAs) "Review of interim financial information developed by the entity's independent auditor" which were adopted as review standards in Argentina by Technical Pronouncement No. 33 and their respective adoption circulars of the Argentine Federation of Professional Councils in Economic Sciences (FACPCE).

 

As stated in the chapter "Responsibilities of the Board of Directors" of the external auditor's report, the Board of Directors of the Company is responsible for the reasonable preparation and presentation of the abovementioned financial statements, in accordance with International Financial Reporting Standards (IFRS), adopted as Argentine professional accounting standards by the FACPCE and incorporated into the regulations of the National Securities Commission (CNV), as approved by the International Accounting Standard Board (IASB). The Board of Directors of the Company is responsible for the preparation and issuance of said financial statements, according to the International Accounting Standard 34 “Interim Financial Information” (IAS 34).

 

We have not carried out any management control and, therefore, we have not evaluated the criteria and business decisions of administration, financing, marketing or production, since these issues are the sole responsibility of the Board of Directors.

 

Based on our review, with the scope described above, we hereby inform that the interim consolidated financial statements of Aeropuertos Argentina 2000 S.A. as of March 31, 2023 consider all significant events and circumstances that are known to us, and regarding said documents we have no observations to make, are pending to be copied in the book "Inventories and Balances", arise from the accounting records taken in their formal aspects in accordance with legal regulations and, in relation with said financial statements, we have no observations to make.

 

 

 

 

In exercise of our legal supervision duties, during the period under review, we performed the procedures set forth in Article 294 of Law 19,550 that we consider necessary in accordance with the circumstances, and in this respect, we have no observations to make.

 

Autonomous City of Buenos Aires, May 5th, 2023.

 

     
  Patricio A. Martin  
  By Surveillance Committee