UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20546

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of May, 2024

 

Commission File Number: 333-221916

 

 

 

Corporación América Airports S.A.

(Name of Registrant)

 

128, Boulevard de la Pétrusse
L-2330, Luxembourg

 

Grand Duchy of Luxembourg
Tel: +35226258274
Fax: +35226259776

(Address of Principal Executive Office)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2024 AND 2023

 

This report of foreign private issuer on Form 6-K (this “Form 6-K”) is being filed by Corporación América Airports S.A. (“CAAP” or the “Company”) with the Securities and Exchange Commission. The Company is filing this report on Form 6-K for the purpose of filing a copy of the Company’s unaudited condensed consolidated interim financial statements for the three-month period ended March 31, 2024 and 2023 (the “Consolidated Financial Statements”) as Exhibit 99.1. The Consolidated Financial Statements are presented in U.S. Dollars and prepared in accordance with IAS 34, “Interim Financial Reporting”. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended` December 31, 2023, which have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations (“IFRIC”) issued by the IFRS Interpretations Committee applicable to companies reporting under IFRS.

 

 

 

Exhibits

 

Exhibit No.  Description
99.1 CAAP Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Corporación America Airports S.A.
   
  By: /s/ Andres Zenarruza
  Name: Andres Zenarruza
  Title: Head of Legal and Compliance
   
  By: /s/ Jorge Arruda
  Name: Jorge Arruda
  Title: Chief Financial Officer

 

Date: May 22, 2024

 

 

 

Exhibit 99.1 

 

Corporación América Airports S.A.Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

Corporación América Airports S.A.

 

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

 

For the three-month period ended March 31, 2024 and 2023

 

R.C.S. Luxembourg B 174.140

 

128, Boulevard de la Pétrusse

L – 2330 Luxembourg

 

 

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

 

       For the three-month period ended
March 31,
 
   Notes   2024   2023 
Revenue   4    433,047    382,058 
Cost of services   5    (267,482)   (246,092)
Gross profit        165,565    135,966 
Selling, general and administrative expenses   6    (44,158)   (38,406)
Impairment loss of non-financial assets        -    (47)
Other operating income   7    6,050    5,212 
Other operating expenses        (2,655)   (744)
Operating income        124,802    101,981 
Share of loss in associates        (211)   (2)
Income before financial results and income tax        124,591    101,979 
Financial income   8    18,711    12,243 
Financial loss   8    155,834    (49,787)
Inflation adjustment   8    (13,586)   (3,102)
Income before income tax        285,550    61,333 
Income tax   9    (112,904)   (37,249)
Income for the period        172,646    24,084 
Attributable to:               
Owners of the parent        152,670    31,685 
Non-controlling interests        19,976    (7,601)
         172,646    24,084 
                

Earnings per share for profit attributable to the ordinary equity holders of the Group:

               
Basic earnings per share        0.95    0.20 
Diluted earnings per share        0.95    0.20 

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

 

   For the three-month period ended
March 31,
 
   2024   2023 
Income for the period   172,646    24,084 
           
Items that will not be reclassified to profit or loss:          
Remeasurements of defined benefit obligations   76    (53)
Items that may be reclassified to profit or loss:          
Share of other comprehensive income from associates   23    19 
Currency translation adjustment   263,861    17,271 
Other comprehensive income for the period, net of income tax   263,960    17,237 
Total comprehensive income for the period   436,606    41,321 
Attributable to:          
Owners of the parent   371,660    47,101 
Non-controlling interests   64,946    (5,780)
    436,606    41,321 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2023.

 

- 1 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED cONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 

   Notes   At March 31,
2024
   At December 31,
2023
 
ASSETS               
Non-current assets               
Intangible assets, net   10    2,981,588    2,520,965 
Property, plant and equipment, net        78,883    74,919 
Right-of-use asset        11,417    10,493 
Investments in associates        11,845    11,992 
Other financial assets at fair value through profit or loss        2,391    5,979 
Other financial assets at amortized cost        74,475    61,090 
Derivative financial instruments        68    69 
Deferred tax assets        54,780    62,712 
Inventories        336    318 
Other receivables        43,729    42,640 
Trade receivables        679    889 
         3,260,191    2,792,066 
Current assets               
Inventories        14,411    16,148 
Other financial assets at fair value through profit or loss        3,911    4,884 
Other financial assets at amortized cost        71,311    83,142 
Other receivables        64,621    145,549 
Current tax assets        4,716    3,779 
Trade receivables        135,668    126,560 
Cash and cash equivalents   11    469,841    369,848 
         764,479    749,910 
Total assets        4,024,670    3,541,976 
                
EQUITY   14           
Share capital        163,223    163,223 
Share premium        183,430    183,430 
Treasury shares        (4,322)   (4,322)
Free distributable reserve        378,910    378,910 
Non-distributable reserve        1,358,028    1,358,028 
Currency translation adjustment        (263,907)   (482,852)
Legal reserves        3,676    3,676 
Other reserves        (1,313,632)   (1,313,888)
Retained earnings        591,445    438,775 
Total attributable to owners of the parent        1,096,851    724,980 
Non-controlling interests        143,875    78,929 
Total equity        1,240,726    803,909 
                
LIABILITIES               
Non-current liabilities               
Borrowings   12    1,062,888    1,133,549 
Deferred tax liabilities        261,737    137,315 
Other liabilities   13    775,466    768,364 
Lease liabilities        9,446    10,294 
Trade payables        2,552    2,617 
         2,112,089    2,052,139 
Current liabilities               
Borrowings   12    227,838    199,688 
Other liabilities   13    324,213    345,864 
Lease liabilities        3,658    3,687 
Current tax liabilities        18,488    23,921 
Trade payables        97,658    112,768 
         671,855    685,928 
Total liabilities        2,783,944    2,738,067 
Total equity and liabilities        4,024,670    3,541,976 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2023.

 

- 2 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 

   Attributable to owners of the parent         
   Share
capital
   Share
premium
   Treasury
shares
   Free
distributable
reserves
   Non-
distributable
reserves
   Legal
reserves
   Currency
translation
adjustment
   Other
reserves
   Retained
earnings (1)
   Total   Non-
controlling
interests
   Total 
Balance at January 1, 2024   163,223   183,430   (4,322)  378,910   1,358,028   3,676   (482,852)  (1,313,888)  438,775   724,980   78,929   803,909 
Income for the period   -   -   -   -   -   -   -   -   152,670   152,670   19,976   172,646 
Other comprehensive income for the period   -   -   -   -   -   -   218,945   45   -   218,990   44,970   263,960 
Share-based payments reserve (Note 14.a and 14.c)   -   -   -   -   -   -   -   211   -   211   -   211 
Balance at March 31, 2024   163,223   183,430   (4,322)  378,910   1,358,028   3,676   (263,907)  (1,313,632)  591,445   1,096,851   143,875   1,240,726 
                                                  
Balance at January 1, 2023   163,223   183,430   (4,600)  378,910   1,358,028   1,081   (251,145)  (1,314,025)  201,193   716,095   146,274   862,369 
Income / (loss) for the period   -   -   -   -   -   -   -   -   31,685   31,685   (7,601)  24,084 
Other comprehensive income / (loss) for the period   -   -   -   -   -   -   15,439   (23)  -   15,416   1,821   17,237 
Share-based payments reserve (Note 14.a and 14.c)   -   -   32   -   -   -   -   82   62   176   -   176 
Balance at March 31, 2023   163,223   183,430   (4,568)  378,910   1,358,028   1,081   (235,706)  (1,313,966)  232,940   763,372   140,494   903,866 

 

(1) Retained earnings calculated according to Luxembourg Law are disclosed in Note 15.

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2023.

 

- 3 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 

       For the three-month period ended
March 31,
 
   Notes   2024   2023 
Cash flows from operating activities               
Income for the period from continuing operations        172,646    24,084 
Adjustments for:               
Amortization and depreciation        44,946    43,793 
Deferred income tax   9    108,049    31,376 
Current income tax   9    4,855    5,873 
Share of loss in associates        211    2 
Impairment loss of non-financial assets        -    47 
Loss on disposals of property, plant and equipment        227    12 
Low value, short term and variable lease payments        (255)   (1,162)
Share based compensation expenses        211    177 
Interest expenses   8    27,099    28,708 
Other financial results, net        (1,366)   (7,723)
Net foreign exchange   8    (212,173)   (13,327)
Other accruals        729    1,205 
Inflation adjustment        5,208    344 
Acquisition of intangible assets        (41,403)   (36,923)
Income tax paid        (9,605)   (8,903)
Income due to concession compensation (*)        90,609    - 
Unpaid concession fees        23,303    26,361 
Changes in liability for concessions   8    26,360    31,944 
Changes in working capital   17    (75,109)   (65,610)
Net cash provided by operating activities        164,542    60,278 
                
Cash flows from investing activities               
Cash contribution in associates        (41)   - 
Acquisition of other financial assets        (32,178)   (12,221)
Disposals of other financial assets        33,925    25,376 
Acquisition of property, plant and equipment        (2,303)   (2,585)
Acquisition of intangible assets        (66)   (161)
Proceeds from property, plant and equipment        8    5 
Other        (586)   152 
Net cash (used in)/provided by investing activities        (1,241)   10,566 
                
Cash flows from financing activities               
Loans obtained   12    33,126    43,926 
Guarantee deposits        1,130    (848)
Principal elements of lease payments        (1,118)   (1,000)
Loans repaid   12    (70,025)   (72,166)
Interest paid   12    (19,483)   (20,933)
Net cash used in financing activities        (56,370)   (51,021)
                
Increase in cash and cash equivalents from continuing operations        106,931    19,823 
                
Movements in cash and cash equivalents               
At the beginning of the period        369,848    385,265 
Effects of exchange rate changes and inflation adjustment on cash and cash equivalents        (6,938)   (3,998)
Increase in cash and cash equivalents from continuing operations        106,931    19,823 
At the end of the period   11    469,841    401,090 

 

(*) Corresponds to the net indemnification collected regarding the re-bidding of the International Airport of São Gonçalo do Amarante (Natal Airport) detailed in Note 1.2.1 and Note 34 of the Consolidated Financial Statements for the year ended December 31, 2023.

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2023.

 

- 4 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

  1 General information
  2 Basis of presentation and accounting policies
  3 Segment information
  4 Revenue
  5 Cost of services
  6 Selling, general and administrative expenses
  7 Other operating results
  8 Financial results, net
  9 Income tax
  10 Intangible assets, net
  11 Cash and cash equivalents
  12 Borrowings
  13 Other liabilities
  14 Equity
  15 Contingencies, commitments and restrictions on the distribution of profits
  16 Related party balances and transactions
  17 Cash flow disclosures
  18 Fair value measurement of financial instruments
  19 Financial risk factors
  20 Subsequent events

 

- 5 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

1General information

 

Corporación América Airports S.A. (the “Company” or “CAAP”) is a holding company primarily engaged through its operating subsidiaries in the acquisition, development and operation of airport concessions. The Company and its operating subsidiaries are collectively referred to hereinafter as the “Group”.

 

The Company’s shares trade on the New York Stock Exchange (“NYSE”) under the symbol “CAAP”.

 

The Company was formed as a private limited liability company under the laws of the Grand Duchy of Luxembourg on December 14, 2012. The Company is ultimately controlled by Southern Cone Foundation (“SCF”), a foundation organized under the laws of the Principality of Liechtenstein. The address of its registered office is in Vaduz.

 

The Company´s registered office address is 128, Boulevard de la Pétrusse, Luxembourg.

 

The Group currently has operations in Argentina, Brazil, Uruguay, Armenia, Italy and Ecuador.

 

A list of the principal Group’s subsidiaries is included in Note 2 of the Consolidated Financial Statements as of December 31, 2023.

 

The fiscal year begins on January 1 and ends on December 31.

 

These Condensed Consolidated Interim Financial Statements have been approved for issuance by the Board of Directors on May 22, 2024.

 

2Basis of presentation and accounting policies

 

Basis of presentation

 

These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies used in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with those used in the audited Consolidated Financial Statements for the year ended December 31, 2023. These policies have been consistently applied to all the periods presented, unless otherwise stated. These Condensed Consolidated Interim Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2023, which have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations (“IFRIC”) issued by the IFRS Interpretations Committee applicable to companies reporting under IFRS.

 

Elimination of all material intercompany transactions and balances between the Company and the other companies and their respective subsidiaries have been made.

 

The preparation of Condensed Consolidated Interim Financial Statements in accordance with IFRS requires management to make certain accounting estimates and assumptions that might affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the reporting dates, and the reported amounts of revenues and expenses during the reporting years. Actual results may differ from these estimates.

 

In the preparation of these Condensed Consolidated Interim Financial Statements, the significant areas of judgment by management in the application of the Group’s accounting policies and the main areas of assumptions and estimates are consistent with those applied in the Consolidated Financial Statements for the year ended December 31, 2023.

 

Assets and liabilities are classified as current if settlement is expected within twelve months.

 

There were no changes in valuation techniques during the period and there were no changes in risk management policies since the end of the year ended December 31, 2023.

 

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Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2Basis of presentation and accounting policies (Cont.)

 

Basis of presentation (Cont.)

 

Application of IAS 29 in financial reporting of Argentine subsidiaries and associates

 

IAS 29 “Financial Reporting in Hyperinflationary Economies” requires that the financial statements of entities whose functional currency is that of a hyperinflationary economy to be adjusted for the effects of changes in a suitable general price index and to be expressed in terms of the current unit of measurement at the closing date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. Accordingly, the inflation produced from the date of acquisition or from the revaluation date, as applicable, must be computed in the non-monetary items.

 

Under the terms of IAS 29, the Group understands that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy for accounting purposes as from July 1, 2018, and, accordingly, it has applied IAS 29 as from that date in the financial reporting of its subsidiaries and associates with the Argentine peso as functional currency.

 

The estimated price index as of March 31, 2024 was 5,429.01 (3,533.19 as of December 31, 2023) and the conversion factor derived from the indexes for the three-month period ended March 31, 2024, was 1.54 (1.21 for the three-month period ended March 31, 2023).

 

Comparative amounts are the figures presented as current year amounts in the relevant prior year consolidated financial statements, according to IAS 21, considering that they were translated into the currency of a non- hyperinflationary economy.

 

The ongoing application of the re-translation of comparative amounts to closing exchange rates under IAS 21 and the inflation adjustments required by IAS 29 will lead to a difference because the rate at which the hyper-inflationary currency depreciates against a stable currency is rarely equal to the rate of inflation.

 

The inflation adjustment and the translation of comparative amounts in the current period is included in Other comprehensive income for the period line.

 

All items in the Condensed Consolidated Interim Statement of Income and of Comprehensive Income for the three-month period are translated by applying the relevant conversion factors at the end of the reporting period, as stated in Note 2.W of the Consolidated Financial Statements as of December 31, 2023.

 

New and amended standards adopted by the Group

 

The Group has adopted the following accounting standards and interpretations that became applicable for annual period commencing on or after January 1, 2024:

 

- Non-current liabilities with covenants – Amendments to IAS 1.

- Classification of Liabilities as Current or Non-current – Amendments to IAS 1.

- Lease liability in sale and leaseback – amendments to IFRS 16.

- Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.

 

The amendments listed above did not have any material impact on these Condensed Consolidated Interim Financial Statements.

 

New and amended standards not yet adopted by the Group

 

The following accounting standards and interpretations have been published but the application are not mandatory for reporting periods ending December 31, 2024 and have not been early adopted by the Group:

 

- Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28.

- Lack of exchangeability – Amendments to IAS 21

 

The Group is currently assessing the impact these standards, amendments or interpretations will have in the current or future reporting periods and on foreseeable future transactions.

 

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Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3Segment information

 

Operating segments are components of an enterprise where separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s chief operating decision maker is its Board of Directors. The Group’s operating segments are managed separately because each operating segment represents a strategic business unit providing airport and non-airport services (“others”) to clients in different countries. The Group’s reportable operating segments are the six countries in which the Group currently operates, which are Argentina, Brazil, Uruguay, Armenia, Ecuador and Italy.

 

Within each reportable segment, the Group develops and operates airport concessions (“Airports”) and provides other services not directly related to airport concessions.

 

Assets, liabilities and results of sub-holding and/or holding companies are not allocated and are reported within the “Unallocated” column. This column also includes head office and group services.

 

The elimination of any intersegment revenues and other significant intercompany operations are included in the “Intrasegment Adjustments” column.

 

The information regarding the Group’s reportable operating segments is consistent with the information presented in Notes 2.V and 4 included in our audited Consolidated Financial Statements for the year ended December 31, 2023 and should be read in conjunction with them.

 

The performance of each reportable segment is measured by its adjusted EBITDA, defined, with respect to each segment, as net income before financial income, financial loss, inflation adjustment, income tax expense, depreciation and amortization for such segment (“Adjusted EBITDA”). The Adjusted EBITDA does not exclude the amortization of the intangible asset related to the fixed fee payable to the corresponding governments for the operation of the airport concessions.

 

In addition, the CODM considers each reportable segment’s Adjusted EBITDA before Construction Services margin as a relevant performance measure.

 

Adjusted EBITDA excluding Construction Services is defined, with respect to each segment, as net income before construction services revenue, financial income, construction services cost, financial loss, inflation adjustment, income tax expense, depreciation and amortization for such segment. The Adjusted EBITDA excluding construction services revenue and construction services cost (which are based on the principles of IFRIC 12) does not exclude the amortization of the intangible asset related to the fixed fee payable to the corresponding governments for the operation of airport concessions.

 

- 8 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy         
For the three-month period ended March 31,
2024
  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Intrasegment 
Adjustments
   Unallocated   Total 
Aeronautical revenue (*)   135,468   -   9,867   908   25,244   -   18,356   19,836   11,861   -   -   221,540 
Non-aeronautical revenue (*)                                                 
Commercial revenue   86,104   23   16,545   1,196   14,474   6,899   29,775   6,820   8,347   (2,778)  982   168,387 
Construction service revenue   33,478   -   313   -   5,987   -   337   -   1,209   -   -   41,324 
Other revenue   -   -   -   -   3   -   -   -   1,217   (785)  1,361   1,796 
Cost of services   (154,494)  (9)  (17,909)  (2,121)  (22,245)  (5,783)  (30,260)  (15,600)  (18,794)  2,729   (2,996)  (267,482)
Gross profit / (loss)   100,556   14   8,816   (17)  23,463   1,116   18,208   11,056   3,840   (834)  (653)  165,565 
Selling, general and administrative expenses   (21,690)  (15)  (1,916)  298   (4,619)  (681)  (4,321)  (5,275)  (2,871)  834   (3,902)  (44,158)
Other operating income   5,764   -   75   -   -   2   162   5   42   -   -   6,050 
Other operating expenses   (1,870)  (30)  (2)  (411)  (144)  (2)  (191)  (5)  -   -   -   (2,655)
Operating income / (loss)   82,760   (31)  6,973   (130)  18,700   435   13,858   5,781   1,011   -   (4,555)  124,802 
Share of loss in associates   (1)  -   -   -   -   -   -   -   -   -   (210)  (211)
Amortization and depreciation   20,996   -   3,013   8   2,490   320   4,978   1,741   2,713   -   3,075   39,334 
Adjusted Ebitda   103,755   (31)  9,986   (122)  21,190   755   18,836   7,522   3,724   -   (1,690)  163,925 
Construction services revenue   (33,478)  -   (313)  -   (5,987)  -   (337)  -   (1,209)  -   -   (41,324)
Construction services cost   33,416   -   313   -   5,987   -   327   -   530   -   -   40,573 
Adjusted Ebitda excluding Construction Services   103,693   (31)  9,986   (122)  21,190   755   18,826   7,522   3,045   -   (1,690)  163,174 
Construction services revenue   33,478   -   313   -   5,987   -   337   -   1,209   -   -   41,324 
Construction services cost   (33,416)  -   (313)  -   (5,987)  -   (327)  -   (530)  -   -   (40,573)
Adjusted Ebitda   103,755   (31)  9,986   (122)  21,190   755   18,836   7,522   3,724   -   (1,690)  163,925 
Financial income                                               18,711 
Financial loss                                               155,834 
Inflation adjustment                                               (13,586)
Amortization and depreciation                                               (39,334)
Income before income tax expense                                               285,550 
Income tax                                               (112,904)
Income for the period                                               172,646 
                                                  
March 31, 2024                                                 
Current assets   212,206   22   103,877   98,307   60,864   5,975   84,963   38,608   51,845   (86,775)  194,587   764,479 
Non-current assets   1,678,753   -   631,861   184   191,464   8,936   167,514   52,695   257,255   (768)  272,297   3,260,191 
Capital Expenditure   33,486   -   573   60   5,942   64   4,854   1,569   1,417   -   25   47,990 
Current liabilities   163,283   9   213,834   3,117   27,399   5,362   24,880   27,856   124,126   (86,775)  168,764   671,855 
Non-current liabilities   750,935   -   902,228   1,609   58,617   1,619   -   6,252   70,561   (768)  321,036   2,112,089 

 

(*) Mainly includes revenues recognized over time, see Note 4.

 

- 9 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy         
For the three-month period ended March 31,
2023
  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Intrasegment 
Adjustments
   Unallocated   Total 
Aeronautical revenue (*)   112,060   -   10,436   -   18,143   -   16,814   17,957   10,164   -   -   185,574 
Non-aeronautical revenue (*)                                                 
Commercial revenue   82,735   59   14,227   -   13,688   4,930   32,909   6,499   7,022   (2,696)  919   160,292 
Construction service revenue   28,748   -   -   -   3,112   -   609   -   1,050   -   -   33,519 
Other revenue   -   -   -   -   3   -   -   -   2,670   (1,625)  1,625   2,673 
Cost of services   (140,264)  (16)  (17,801)  -   (17,620)  (3,712)  (33,581)  (14,229)  (18,496)  2,525   (2,898)  (246,092)
Gross profit / (loss)   83,279   43   6,862   -   17,326   1,218   16,751   10,227   2,410   (1,796)  (354)  135,966 
Selling, general and administrative expenses   (19,188)  (35)  (1,859)  (7)  (4,257)  (465)  (4,364)  (4,189)  (3,444)  1,796   (2,394)  (38,406)
Impairment loss of non-financial assets   -   -   -   -   -   -   -   -   (47)  -   -   (47)
Other operating income   4,796   -   115   -   13   -   71   12   205   -   -   5,212 
Other operating expenses   (496)  -   (17)  -   (57)  -   (171)  (3)  -   -   -   (744)
Operating income / (loss)   68,391   8   5,101   (7)  13,025   753   12,287   6,047   (876)  -   (2,748)  101,981 
Share of loss in associates   (2)  -   -   -   -   -   -   -   -   -   -   (2)
Amortization and depreciation   21,356   -   2,887   -   1,992   329   4,847   1,617   2,623   -   2,968   38,619 
Adjusted Ebitda   89,745   8   7,988   (7)  15,017   1,082   17,134   7,664   1,747   -   220   140,598 
Construction services revenue   (28,748)  -   -   -   (3,112)  -   (609)  -   (1,050)  -   -   (33,519)
Construction services cost   28,721   -   -   -   3,112   -   592   -   638   -   -   33,063 
Adjusted Ebitda excluding Construction Services   89,718   8   7,988   (7)  15,017   1,082   17,117   7,664   1,335   -   220   140,142 
Construction services revenue   28,748   -   -   -   3,112   -   609   -   1,050   -   -   33,519 
Construction services cost   (28,721)  -   -   -   (3,112)  -   (592)  -   (638)  -   -   (33,063)
Adjusted Ebitda   89,745   8   7,988   (7)  15,017   1,082   17,134   7,664   1,747   -   220   140,598 
Financial income                                               12,243 
Financial loss                                               (49,787)
Inflation adjustment                                               (3,102)
Amortization and depreciation                                               (38,619)
Income before income tax expense                                               61,333 
Income tax                                               (37,249)
Income for the period                                               24,084 
                                                  
December 31, 2023                                                 
Current assets   183,773   22   188,160   -   45,101   4,770   91,159   59,737   68,197   (85,454)  194,445   749,910 
Non-current assets   1,170,372   20   667,193   -   188,336   9,193   154,754   53,782   267,568   (768)  281,616   2,792,066 
Capital Expenditure   93,326   -   1,727   -   36,605   2,120   7,073   3,267   17,504   -   -   161,622 
Current liabilities   127,070   9   221,843   -   25,549   4,419   34,076   54,106   139,248   (85,454)  165,062   685,928 
Non-current liabilities   673,245   -   907,835   -   60,264   1,809   -   7,329   78,834   (768)  323,591   2,052,139 

 

(*) Mainly includes revenues recognized over time, see Note 4.

 

- 10 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

4Revenue

 

   For the three-month period ended
March 31,
 
   2024   2023 
Aeronautical revenue   221,540    185,574 
Non-aeronautical revenue          
Commercial revenue   168,387    160,292 
Construction service revenue   41,324    33,519 
Other revenue   1,796    2,673 
    433,047    382,058 
Timing of revenue recognition          
Over time   343,290    294,064 
At a point in time   21,764    25,107 
Revenues accounted for under IFRS 16   67,993    62,887 
Revenue   433,047    382,058 

 

5Cost of services

 

   For the three-month period ended
March 31,
 
   2024   2023 
Salaries and social security contributions   (60,305)   (53,132)
Concession fees (1)   (52,400)   (45,883)
Construction services cost   (40,573)   (33,063)
Amortization and depreciation (2)   (37,602)   (37,004)
Maintenance expenses   (30,793)   (29,468)
Cost of fuel   (20,737)   (24,075)
Services and fees   (15,480)   (14,122)
Office expenses   (3,867)   (3,266)
Taxes   (1,308)   (1,215)
Provision for maintenance costs   (879)   (849)
Others   (3,538)   (4,015)
    (267,482)   (246,092)

 

(1) Includes depreciation for fixed concession assets fee of USD 5,455 as of March 31, 2024 (USD 5,018 as of March 31, 2023).

(2) Includes depreciation of leases of USD 557 as of March 31, 2024 (USD 943 as of March 31, 2023).

 

6Selling, general and administrative expenses

 

   For the three-month period ended
March 31,
 
   2024   2023 
Taxes (1)   (14,489)   (12,514)
Services and fees   (10,364)   (9,285)
Salaries and social security contributions   (10,340)   (8,916)
Amortization and depreciation (2)   (1,732)   (1,615)
Office expenses   (1,401)   (1,458)
Insurance   (823)   (661)
Maintenance expenses   (545)   (524)
Advertising   (632)   (491)
Bad debts   (2,127)   (1,523)
Bad debts recovery   858    783 
Other   (2,563)   (2,202)
    (44,158)   (38,406)

 

(1) Mainly includes taxes over bank transactions and tax on revenue not included in the line item “Income tax”.

(2) Includes depreciation of leases of USD 200 as of March 31, 2024 (USD 175 as of March 31, 2023).

 

- 11 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

7Other operating income

 

   For the three-month period ended
March 31,
 
   2024   2023 
Government grants (*)    5,431    4,753 
Other   619    459 
    6,050    5,212 

 

(*) Corresponds to government grants for the development of airport infrastructure in Group A, operated by Aeropuertos Argentina 2000 (“AA2000”), of the National Airport System in Argentina. There are no unfulfilled conditions or other contingencies attaching to these grants.

 

8Financial results, net

 

   For the three-month period ended
March 31,
 
   2024   2023 
Interest income   17,028    10,699 
Foreign exchange results   145    253 
Other financial income   1,538    1,291 
Financial income   18,711    12,243 
           
Interest expense   (27,099)   (28,708)
Foreign exchange results (1)   212,028    13,074 
Changes in liability for concessions (2)   (26,360)   (31,944)
Other financial loss   (2,735)   (2,209)
Financial loss   155,834    (49,787)
           
Inflation adjustment   (13,586)   (3,102)
Inflation adjustment   (13,586)   (3,102)
Net financial results   160,959    (40,646)

 

(1) Corresponds mainly to foreign exchange results in real terms (inflation-adjusted) arising from foreign currency loans in AA2000.

(2) Corresponds mainly to changes in the liabilities of Brazilian concessions due to passage of time and changes in the Brazilian IPCA.

 

9Income tax

 

   For the three-month period ended
March 31,
 
   2024   2023 
Current income tax   (4,855)   (5,873)
Deferred income tax   (108,049)   (31,376)
    (112,904)   (37,249)

 

- 12 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

10Intangible assets, net

 

   Concession
Assets
   Goodwill   Patent,
intellectual
property rights
and others
   Total 
Cost                    
Balances at January 1, 2024   4,153,428    9,293    24,661    4,187,382 
Acquisitions   41,403    -    66    41,469 
Disposals   (390)   -    (484)   (874)
Other   78    -    -    78 
Translation differences and inflation adjustment   769,118    (170)   (482)   768,466 
    4,963,637    9,123    23,761    4,996,521 
Depreciation                    
Accumulated at January 1, 2024   1,645,013    -    21,404    1,666,417 
Depreciation of the period   41,485    -    210    41,695 
Disposals   (17)   -    (284)   (301)
Translation differences and inflation adjustment   307,556    -    (434)   307,122 
    1,994,037    -    20,896    2,014,933 
At March 31, 2024   2,969,600    9,123    2,865    2,981,588 
                     
Cost                    
Balances at January 1, 2023   4,749,233    9,003    22,658    4,780,894 
Acquisitions   37,077    -    161    37,238 
Impairment   (47)   -    -    (47)
Disposals   (22)   -    -    (22)
Translation differences and inflation adjustment   101,449    177    462    102,088 
    4,887,690    9,180    23,281    4,920,151 
Depreciation                    
Accumulated at January 1, 2023   1,800,871    -    20,021    1,820,892 
Depreciation of the period   40,198    -    161    40,359 
Disposals   (5)   -    -    (5)
Translation differences and inflation adjustment   35,005    -    402    35,407 
    1,876,069    -    20,584    1,896,653 
At March 31, 2023   3,011,621    9,180    2,697    3,023,498 

 

Due to the increase of traffic witnessed during 2023 and 2024 across all countries, the Group has not identified impairment indicators except in the Brazilian segment due to the historical losses from its operations.

 

Therefore, the Group performed the impairment test of the Brazilian cash-generating unit (“CGU”) (including concession assets with a carrying value of USD 658.2 million as of March 31, 2024) based on the discounted cash flow model covering the remaining concession period (value in use), considering significant assumptions that required management judgment related to passenger growth rates and discount rate, combined with historical information.

 

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs of a subsidiary or group of subsidiaries that are expected to benefit from such business combination.

 

As of March 31, 2024 and 2023, the recoverable amount of aforementioned CGU´s exceed their respective carrying amount.

 

- 13 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

11Cash and cash equivalents

 

   At March 31,
2024
   At December 31,
2023
 
Cash to be deposited   716    657 
Cash at banks   179,131    192,381 
Time deposits   15,492    16,729 
Other cash equivalents (1)   274,502    160,081 
    469,841    369,848 

 

(1)Mainly includes bank deposit certificates with immediate liquidity, treasury bills and highly liquid investments in mutual funds.

 

The Group considers that its cash and cash equivalents have low credit risk based, mainly, on the external credit ratings of the counterparties.

 

As of March 31, 2024, cash and cash equivalents includes restricted cash on deposit as collateral for a total amount of USD 6,011 (USD 5,864 as of December 31, 2023).

 

12Borrowings

 

   At March 31,
2024
   At December 31,
2023
 
Non-current          
Bank and financial borrowings (**)   259,052    278,147 
Notes (*)   803,836    855,402 
    1,062,888    1,133,549 
Current          
Bank and financial borrowings (**)   108,746    114,092 
Notes (*)   119,043    85,535 
Bank overdrafts   49    61 
    227,838    199,688 
Total Borrowings   1,290,726    1,333,237 

 

Changes in borrowings during the period is as follows:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Balances at the beginning of the period   1,333,237    1,465,437 
Loans obtained   33,126    43,926 
Loans repaid   (70,025)   (72,166)
Interest paid   (19,483)   (20,933)
Accrued interest for the period   26,805    26,011 
Translation differences and inflation adjustment   (12,934)   10,371 
Balances at the end of the period   1,290,726    1,452,646 

 

The maturity of borrowings is as follows:

 

   1 year or less   1 - 2 years   2 – 5 years   Over 5 years   Total 
At March 31, 2024 (1)   315,061    209,077    554,006    667,773    1,745,917 
At December 31, 2023 (1)   294,299    239,443    569,488    711,815    1,815,045 

 

(1) The amounts disclosed in the table are undiscounted cash flows of principal and estimated interest. Variable interest rate cash flows have been estimated using variable interest rates applicable at the end of the reporting period.

 

- 14 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

12Borrowings (Cont.)

 

(*) Notes include the following as of March 31, 2024:

 

Company   Note   Issuance   Currency     Nominal value
(in millions
of USD)
    Maturity   Interest
rate
   

Outstanding

(in millions
of USD)

 
ACI Airport Sudamérica S.A.U. (“ACI”)   Senior secured guarantee notes   November 2021   USD     246.2     Nov-2034   Fixed 6.875%     240.4  
  Senior secured guarantee notes   May 2015, May 2020 (1)   USD     14.6     Nov-2032   Fixed 6.875%     11.7  
Corporación América Italia S.p.A. (“CAI”)   Secured notes   January 2020   EUR     71.8     Dec-2024   Fixed 4.556%     66.8  
    Senior secured guarantee notes   February 2017, May 2020 (1)   USD     212.3     Feb-2027   Fixed 6.875%     62.0  
      October 2021   USD     208.9     Aug-2031   Fixed 8.500%     208.7  
Aeropuertos Argentina 2000 (“AA2000”)   Class 1 Series 2021 Notes   November 2021   USD     64.0     Aug-2031   Fixed 8.500%     61.3  
    Class 4 Notes   November 2021   USD     62.0     Nov-2028   Fixed 9.500%     60.9  
    Class 5 Notes   February 2022       USD (2)     138.0     Feb-2032   Fixed 5.500%     138.3  
    Class 6 Notes   February 2022       USD (2)     36.0     Feb-2025   Fixed 2.000%     27.5  
    Class 9 Notes   August 2022, July 2023       USD (2)     30.0     Aug-2026   Fixed 0.000%     25.8  
    Class 10 Notes   July-2023       USD( 2)     25.0     July-2025   Fixed 0.000%     19.5  
Total                                 922.9  

 

(1)       A partial exchange of the notes initially issued was performed during 2020 and 2021, which is detailed below

(2)       These notes are dollar-linked, denominated in U.S. dollars but issued and payable in Argentine pesos

 

(*) Notes include the following as of December 31. 2023:

 

Company   Note   Issuance   Currency     Nominal value
(in millions
of USD)
    Maturity   Interest
rate
   

Outstanding

(in millions
of USD)

 
ACI   Senior secured guarantee notes   November 2021   USD     246.2     Nov-2034   Fixed 6.875%     235.9  
  Senior secured guarantee notes   May 2015, May 2020 (1)   USD     14.6     Nov-2032   Fixed 6.875%     11.4  
CAI   Secured notes   January 2020   EUR     71.8     Dec-2024   Fixed 4.556%     67.7  
    Senior secured guarantee notes   February 2017, May 2020 (1)   USD     212.3     Feb-2027   Fixed 6.875%     67.8  
      October 2021   USD     208.9     Aug-2031   Fixed 8.500%     208.6  
    Class 1 Series 2021 Notes   November 2021   USD     64.0     Aug-2031   Fixed 8.500%     61.2  
AA2000   Class 4 Notes   November 2021   USD     62.0     Nov-2028   Fixed 9.500%     60.7  
    Class 5 Notes   February 2022       USD (2)     138.0     Feb-2032   Fixed 5.500%     138.3  
    Class 6 Notes   February 2022       USD (2)     36.0     Feb-2025   Fixed 2.000%     34.4  
    Class 9 Notes   August 2022, July 2023       USD (2)     30.0     Aug-2026   Fixed 0.000%     30.4  
    Class 10 Notes   July-2023       USD( 2)     25.0     July-2025   Fixed 0.000%     24.5  
Total                                 940.9  

 

(1)       A partial exchange of the notes initially issued was performed during 2020 and 2021, which is detailed below

(2)       These notes are dollar-linked, denominated in U.S. dollars but issued and payable in Argentine pesos

 

-ACI Senior Secured Guarantee Notes (“ACI Existing Notes”) are guaranteed and have a security package that includes the pledge of the shares in Puerta del Sur S.A. (“PDS”) and Cerealsur S.A., and certain accounts of Cerealsur S.A. and ACI. As of March 31, 2024 and December 31, 2023, they were secured by a debt service reserve account of ACI and the funds contained therein. These notes are fully and unconditionally guaranteed by Cerealsur S.A. and PDS.

 

On May 26, 2020, ACI issued USD 180.9 million aggregate principal amount of 6.875% Cash/7.875% PIK Senior Secured Guaranteed Notes due 2032 to repurchase and exchange 93.6% of the total original principal amount of the ACI Existing Notes obtaining consents to certain proposed amendments to the indenture governing the ACI Existing Notes and certain waivers. The main covenants and guarantees remain unchanged except for the incorporation of ACI’s shares pledge.

 

On November 12, 2021, ACI issued USD 246.2 million aggregate principal amount of 6.875% Senior Secured Guaranteed Notes due 2034 (the “New Notes”) consolidating the repurchase and exchange of 40.62% of the total original principal amount of the Series 2015 Notes, 96.43% of the total original amount of the Series 2020 Notes and a new money offering of USD 52.9 in a private transaction under the same terms as the New Notes. The main guarantees remain unchanged while the covenants over ACI Existing Notes were eliminated; an Interest payment account was funded with a portion of the proceeds of the issuance of the New Notes to cancel interest payments until November 29, 2023, and a stand by letter was issued by Goldman Sachs Bank for USD 8.5 million which remains in force as of March 31, 2024.

 

- 15 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

12Borrowings (Cont.)

 

-The Italian Notes are secured by an economic first ranking pledge in respect of all the shares representing 100% of the share capital of CAI, 100% of the share capital of Dicasa Spain S.A.U. and the shares representing CAI’s holding in TA.

 

The main covenants are limitations to take on additional indebtedness, make payments of dividends and other payments that are specifically restricted, selling assets as well as requiring compliance with certain financial ratios. The last testing date was December 31, 2023, being in compliance with the covenants.

 

-The Senior guarantee notes of AA2000 (“AA2000 Existing Notes”) are secured by a collateral assignment of fiduciary rights of certain revenue of AA2000.

 

The main covenants require compliance with certain financial ratios as well as restriction to incur additional debt and limitations on the payments of dividends if any default, whether declared or not, has occurred.

 

On May 20, 2020, AA2000 issued USD 306 million aggregate principal amount of 6.875% Cash/9.375% PIK Class I Series 2020 Additional Senior Secured Notes due 2027 (the “Series 2020 Additional Notes”) in exchange of 86.73% of the total original principal amount of AA2000 Existing Notes. The collateral assignment of revenue under AA2000 Existing Notes was extended to the Series 2020 Additional Notes in equal terms. Accrued interest are capitalized quarterly. The main covenants and guarantees remain unchanged.

 

On October 28, 2021, AA2000 issued USD 208.9 million aggregate principal amount of 8.5% Class I Series 2021 Additional Senior Secured Notes due 2031 (the “Series 2021 Notes”) to repurchase and exchange 24.61% of the total original principal amount of the Series 2017 Notes and 66.83% of the original principal amount of Series 2020 Additional Notes. The main covenants and guarantees remain unchanged. As of March 31, 2024, AA2000 is in compliance with the covenants.

 

The Series 2021 Notes and the Existing Notes not exchanged are secured by the collateral currently securing the Existing Notes on a pro rata and pari passu basis. In addition, to secure its obligations under the Series 2021 Notes, AA2000, together with the relevant parties thereto, amended the cargo trust agreement dated August 9, 2019, entered into by AA2000 and the trustee (as amended, the “Cargo Trust”) in order to include holders of Series 2021 Notes as beneficiaries therein, granting them a security interest which is subordinated to (i) the rights of creditors under certain existing loans of AA2000, and (ii) any debt permitted to be incurred to finance or refinance any capital expenditures made or to be made pursuant to the concession agreement entered into by AA2000 with the Argentine National Government (as amended form time to time, the “Concession Agreement”) for the operation of the airports in Argentina.

 

Once the Existing Notes not exchanged in the Exchange Offer mature or are cancelled in full, AA2000 is required to amend and restate the Cargo Trust and the current trust related to the tariffs dated January 19, 2017, entered into by AA2000 and the trustee thereto (the “Tariffs Trust”), so that the Series 2021 Notes become secured under the Cargo Trust on a pro rata and pari passu basis with the existing beneficiaries of the Cargo Trust, and these beneficiaries in turn become secured under the Tariffs Trust on a pro rata and pari passu basis with the Series 2021 Notes. In accordance with the Concession Agreement, the collateral assignment of revenue must be authorized by ORSNA. ORSNA approved, on October 15 2021, the amendment of the Tariffs Trust and of the Cargo Trust to include the Series 2021 Notes as beneficiaries thereto (including their future amendment and restatement, once the Existing Notes are cancelled in full). Furthermore, AA2000 received the approval from the Central Bank of Argentina to establish a non-interest bearing U.S. dollar trust account in the United States to secure the Series 2021.

 

On November 4, 2021 AA2000 additionally issued USD 62 million aggregate principal amount of Class 4 Senior Secured Notes. These Senior Secured Notes are secured by a first priority lien on the Cargo Trust on a pari passu basis with certain commercial bank lenders to AA2000 and a second priority lien with new debt incurred by AA2000 to fund infrastructure works for a total amount of up to USD 235 million.

 

During 2024, AA2000 repurchased dollar-linked Class 6, Class 9 and Class 10 Notes for USD 6.9 million, USD 4.5 million and USD 4.5 million, respectively.

 

- 16 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

12Borrowings (Cont.)

 

(**) As of March 31, 2024, significant bank and financial borrowings include the following:

 

Company Lender Currency Maturity Interest Rate Outstanding  
(In millions
of USD)
Capitalization(2)

Inframérica Concessionária do

Aeroporto de Brasilia S.A. (“ICAB”)

BNDES R$ Dec-2033 Variable TJLP(1) plus spread 204.4 A
Terminal Aeroportuaria Guayaquil S.A. (“TAGSA”) Banco Guayaquil SA USD Feb-2026 Variable T.R.E.(3) plus spread 3.9 D
Banco Guayaquil SA USD Dec-2025 Variable T.R.E.(3) plus spread 1.2 D
Banco Bolivariano CA USD Dec-2025 Variable T.R.E.(3) plus spread 3.1 D
Banco Bolivariano CA USD Nov-2024 Variable T.R.E.(3) plus spread 1.4 D
TCU S.A. (“TCU”) Scotiabank Uruguay USD Oct-2024 Fixed 4.30% 0.3 D
Scotiabank Uruguay USD Feb-2026 Fixed 4.30% 0.5 D
Santander Uruguay USD Nov-2027 Fixed 5.37% 0.9 D
Santander Uruguay USD Jan-2028 Fixed 5.37% 1.0 D
Toscana Aeroporti S.p.A. (“TA”) Banco de Innovación de Infraestructuras y Desarrollo EUR Sept-2027 Variable Euribor 6 month plus spread 11.0 D
Unicredit EUR Jun-2024 Variable Euribor 3 month plus spread 9.3 D
ISP-SACE EUR Sept-2026 Variable Euribor 3 month plus spread 53.9 D
BPM EUR June-2024 Variable Euribor 3 month plus spread 0.1 D
BPM EUR Apr-2024 Variable Euribor 3 month plus spread 3.8 D
MPS Servicio capital EUR Jun-2024 Variable Euribor 6 month plus spread 11.9 D
Banca Intesa San Paolo EUR Apr-2024 Fixed 6.10% 11.9 D
Armenia International Airports C.J.S.C. (“AIA”) Ameriabank C.J.S.C. EUR Dec-2024 Fixed 6.00% 13.1  B
AA2000 Banco de la Provincia de Buenos Aires USD July-2024 Fixed 7.00% 0.1 D
Onshore renegotiation - ICBC USD Nov-2024 Fixed 8.50% 6.7 A
ICBC Dubai USD Oct-2025 Variable SOFR plus spread 10.2 B
ICBC USD Dec-2024 Fixed 15.50% 0.1 D
Consorcio Aeropuertos Internacionales S.A. (“CAISA”) Santander Uruguay USD Apr-2027 Fixed 5.10% 5.5 B
Banco Itaú USD Apr-2027 Fixed 3.80% 5.5
Puerta del Sur S.A. (”PDS”) Banco de la República Oriental del Uruguay USD Mar-2028 Variable 5.83% 8.0 C
Total           367.8  

 

- 17 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

12Borrowings (Cont.)

 

(**) As of December 31, 2023, significant bank and financial borrowings include the following:

 

Company Lender Currency Maturity Interest Rate Outstanding  
(In millions of USD) Capitalization(2)

Inframérica Concessionária do

Aeroporto de São Gonçalo do Amarante S.A. (“ICASGA”)

BNDES R$ Sept-2032 Variable TJLP(1) plus spread 6.6 A
BNDES R$ June-2032 Variable T.R. plus spread plus IPCA 1.8
BNDES R$ Sept-2032 Variable T.R. plus spread plus IPCA 4.9
BNDES R$ July-2032 Variable T.R. plus spread plus IPCA 2.3
ICAB BNDES R$ Dec-2033 Variable TJLP(1) plus spread 213.9 A
TAGSA Banco Guayaquil SA USD Feb-2026 Variable T.R.E.(3) plus spread 4.2 D
Banco Guayaquil SA USD Dec-2025 Variable T.R.E.(3) plus spread 1.4 D
Banco Bolivariano CA USD Dec-2025 Variable T.R.E.(3) plus spread 3.6 D
Banco Bolivariano CA USD Nov-2024 Variable T.R.E.(3) plus spread 1.8 D
TCU Scotiabank Uruguay USD Oct-2024 Fixed 4.30% 0.4 D
Scotiabank Uruguay USD Feb-2026 Fixed 4.30% 0.6 D
Santander Uruguay USD Nov-2027 Fixed 5.37% 1.0 D
Santander Uruguay USD Jan-2028 Fixed 5.37% 1.0 D
TA Banco de Innovación de Infraestructuras y Desarrollo EUR Sept-2027 Variable Euribor 6 month plus spread 13.0 D
Unicredit EUR Mar-2024 Variable Euribor 3 month plus spread 9.4 D
ISP-SACE EUR Sept-2026 Variable Euribor 3 month plus spread 60.5 D
BPM EUR June-2024 Variable Euribor 3 month plus spread 0.1 D
BPM EUR Feb-2024 Variable Euribor 3 month plus spread 4.0 D
MPS Servicio capital EUR Mar-2024 Variable Euribor 6 month plus spread 12.3 D
Banca Intesa San Paolo EUR Jan-2024 Fixed 6.10% 12.2 D
AIA Ameriabank C.J.S.C. EUR Dec-2024 Fixed 6.00% 13.2 B
AA2000 Banco de la Provincia de Buenos Aires USD July-2024 Fixed 7.00% 0.3 D
Onshore renegotiation - ICBC USD Nov-2024 Fixed 8.50% 9.0 A
ICBC Dubai USD Oct-2025 Variable SOFR plus spread 10.2 B
ICBC USD Jan-2024 Fixed 15.50% 0.5 D
ICBC USD Dec-2024 Fixed 15.50% 0.1 D
CAISA Santander Uruguay USD Apr-2027 Fixed 5.10% 5.5 B
Banco Itaú USD Apr-2027 Fixed 3.80% 5.5
PDS Banco de la República Oriental del Uruguay USD Mar-2028 Variable 6.14% 8.5 C
Total (***)           407.8  

 

(***) The total outstanding amount includes the financial debt of ICASGA with BNDES which, as disclosed in Note 17 of the Consolidated Financial Statements as of December 31, 2023, was shown in the Consolidated statement of financial position offset of guarantee deposits. Therefore, the net amount of Bank and financial borrowings as of December 31, 2023, amounted to USD 392.2 million. Additionally, on January 15, 2024, the outstanding financial debt of USD 15.6 million contracted by ICASGA and owing to BNDES was prepaid, after which the related guarantees were released.

 

(1)TJLP - Taxa de Juros de Longo Prazo (Brazilian Long term interest rate)

IPCA: corresponds to the Brazilian Consumer Price index

(2)A - Secured/guaranteed

B - Secured/unguaranteed

C - Unsecured/guaranteed

D - Unsecured/unguaranteed

ARS - Argentine Pesos

R$ - Brazilian Reales

(3)T.R.E - Tasa Referencial Ecuador (Ecuadorian reference interest rate)

 

- 18 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

12Borrowings (Cont.)

 

-The Credit Facility Agreement between ICAB and BNDES is secured by the pledge of ICAB and Inframérica Participaçoes S.A. shares, the fiduciary assignment of rights arising under the Brasilia airport concession agreement and letters of guarantee issued by indirect shareholders and affiliates of ICAB. It also establishes under certain circumstances a required pre-authorization by BNDES on payments of ICAB dividends if exceeding 25% of net profits and compliance of certain financial ratios.

 

During 2017 and 2018 ICAB entered into amendments and extension agreements with BNDES in which ACI Airports S.à r.l. and CAAP agreed not to create any encumbrances on their shares in Inframérica, and not to sell, acquire, merge or spin-off assets or undertake any other action that results or that may result in a change in the current corporate structure of Inframérica or any change of control in Inframérica, without the prior consent of BNDES. ACI Airports S.à r.l. has agreed not to undertake any change of control in CAAP without the prior consent of BNDES. In addition, ACI Airports S.à r.l. has agreed to maintain a minimum credit rating (the “Minimum Rating”) or a stand-alone rating (without including the sovereign rating) of at least B-/B3, being in compliance as of March 31, 2024.

 

-In December 2022, AIA entered into a new loan agreement with Ameriabank C.J.S.C. for up to EUR 40 million of which EUR 20 million were disbursed in December 2022, while the remaining EUR 20 million were disbursed in April, 2023. In December 2023 AIA prepaid EUR 20 million, which has shortened the loan repayment date up to December 23, 2024. This agreement provides restrictions regarding payments, taking on additional indebtedness, disposal of assets and transactions with affiliates, and the maintenance of certain financial ratios. According to this agreement, these ratios must be met as of June 30 and December 31 of each year the loan is outstanding, and were met as of December 31, 2023.

 

As of March 31, 2024, AIA pledged to the security agent cash held in bank accounts for USD 56,308 (USD 59,072 as of December 31, 2023). Additionally, the loan is secured by the pledge of shares of AIA and of certain collection rights.

 

-TA, pursuant to the loan agreement with Banco de Innovación de Infraestructuras y Desarrollo/MPS Servicio Capital is required to comply with certain financial ratios, which have been met at the last testing date, December 31, 2023.

 

On November 6, 2020, EUR 85 million of proceeds were disbursed to TA under a loan signed with a pool of leading financial institutions comprising Intesa Sanpaolo and BNL-BNP Paribas. The loan is 90% backed by SACE guarantees pursuant to the provisions of Decree-Law No. 23/2020 within the framework of the programme “Garanzia Italia”, an Italian guarantee scheme intended to support Italian companies affected by the Covid-19 crisis. The loan has a term of six years, with a two-year grace period and TA is required to comply with certain financial covenants and restrictions, which were met at the last testing date, December 31, 2023.

 

- 19 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

12Borrowings (Cont.)

 

-On November 18, 2021, AA2000 agreed with Banco Galicia and Buenos Aires S.A.U., Industrial and Commercial Bank of China (Argentina) S.A. (“ICBC”) and Banco Santander Río S.A., (collectively, the “Lenders”) the granting of a bimonetary loan in order to prepay previous loans received from the Lenders. The loans are secured by the Argentine Collateral Trust Agreement. The loan in ARS was prepaid during 2023 while the loan in USD is to be paid until November, 2024 (referred as Onshore renegotiation – ICBC).

 

On July 29, 2022, AA2000 obtained a loan from Industrial and Commercial Bank of China, Dubai branch, for a total amount of USD 10 million. The loan will be repaid in three installments to be made in April, July and October 2025. The loan is secured by a first priority lien on the income generated in the cargo terminal on a pari passu basis with certain commercial bank lenders to AA2000 and the Class 4 Notes, and a second priority lien on the international and regional air station usage fees and concession compensation rights.

 

-CAISA pursuant to the credit facilities with Banco Santander S.A. and Banco Itaú Uruguay S.A. is required to comply with certain financial ratios as well as certain restrictions. Assignment of certain revenues has been given to secure the aforementioned credit facilities.

 

-On April 16, 2021, PDS obtained a loan of USD 10 million with Banco de la República Oriental del Uruguay (BROU) accruing interest at a variable rate set by BROU. This loan is repayable in 60 monthly installments starting on April 2023 and is secured by a guarantee issued by CAAP, and by a stand by letter issued by Morgan Stanley Private Bank, National Association for USD 1.5 million guaranteed by Corporación America Sudamericana S.A. and a personal guarantee issued by a PDS Chairman as subsidiary guarantor of up to USD 0.6 million.

 

As of March 31, 2024, the Company and its subsidiaries met the financial covenants under outstanding financings.

 

13Other liabilities

 

   At March 31,
2024
   At December 31,
2023
 
Non-current          
Concession fee payable (1)   693,520    690,319 
Advances from customers   12,088    13,368 
Provisions for legal claims (4)   8,827    8,979 
Provision for maintenance costs (2)   21,286    21,364 
Other taxes payable   3,511    199 
Employee benefit obligation (3)   4,232    4,382 
Salary payable   309    291 
Other liabilities with related parties (Note 16)   14,882    15,275 
Other payables   16,811    14,187 
    775,466    768,364 
           
Current          
Concession fee payable (1)   196,308    223,051 
Other taxes payable   17,112    18,921 
Salary payable   49,711    41,656 
Other liabilities with related parties (Note 16)   3,344    2,689 
Advances from customers   4,916    5,647 
Provision for maintenance costs (2)   5,894    5,678 
Expenses provisions   4,454    6,203 
Provision for legal claims (4)   4,557    5,286 
Other payables   37,917    36,733 
    324,213    345,864 

 

- 20 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

13Other liabilities (Cont.)

 

Maturity of the other liabilities is as follows:

 

   1 year or less   1 - 2 years   2 - 5 years   Over 5 years   Total 
At March 31, 2024   324,213    98,380    272,372    1,231,436    1,926,401 
At December 31, 2023   345,864    96,071    279,683    1,266,124    1,987,742 

 

(1) The most significant amounts included in the concession fee payable as of March 31, 2024 and December 31, 2023 relates to the concession agreement between The Brazilian National Civil Aviation Agency – ANAC and ICAB.

 

Changes in the period of the concession fee payable are as follows:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Balances at the beginning of the period   913,370    929,009 
Financial result (*)   26,360    33,429 
Other   (18)   (72)
Concession fees accrued   46,945    40,865 
Payments   (68,936)   (64,704)
Translation differences and inflation adjustment   (27,893)   20,031 
Balances at the end of the period   889,828    958,558 

 

(*) Mainly includes changes in the liabilities of Brazilian concessions due to passage of time and inflation adjustment shown in Note 8.

 

On October 23, 2020, the Ministério da Infraestrutura of Brazil issued an order (Portaria No. 157) that allow companies to re-schedule at least 50% of their 2020 concession fee payment. On November 2, 2020, ICAB re-scheduled 50% of its fixed concession fees payment of 2020, in accordance with the provisions of the aforementioned order, to the six final years of the concession. The Government order (Portaria No. 157) determined that re-scheduling the payments of the concession fee must not exceed, for each financial year, 75% above the original value and 50% above the original value for the last five years of the concession.

 

As of March 31, 2024 and December 31, 2023, 50% of the fixed concession fee to be paid in 2021 by ICAB was pending as a re-scheduling of such fee was requested. Even though, the Brazilian Ministry of Infrastructure had granted its approval, the Brazilian ANAC denied ICAB’s request, and initiated administrative proceedings with a view to declaring ICAB in default of its payment obligations. Therefore, ICAB initiated a judicial procedure and, on February 2, 2022, a writ of mandamus was granted by a Federal judge suspending any act or enforceability in connection with the unpaid portion of the concession fee due to the Brazilian ANAC. The Brazilian ANAC appealed, but in April 2022, the court of justice provisionally maintained the first instance judgment favorable to ICAB. In November 2023, the case was decided and the first instance ruling in favor of ICAB was confirmed, granting ICAB the right to reschedule 50% of 2021’ fixed concession fee. The Brazilian ANAC appealed the ruling and the court of justice has not issued its decision as of March 31, 2024.

 

Regarding the 2022 concession fee a partial payment of R$ 81.6 million (equivalent to USD 15 million) was made through the application of re-equilibrium credits. To pay the remaining amount ICAB presented on November 21, 2022 to the Ministry of Infrastructure, an offer of court payment orders, which is still in process of analysis. In December 2022, the Ministry issued an official letter confirming that, during the time it takes to issue a final opinion, ICAB is in compliance with its obligations.

 

- 21 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

13Other liabilities (Cont.)

 

(2)Changes in the period of the provision for maintenance costs is as follows:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Balances at the beginning of the period   27,042    22,914 
Accrual of the period   1,145    1,043 
Use of the provision   (419)   (148)
Translation differences and inflation adjustment   (588)   461 
Balances at the end of the period   27,180    24,270 

 

(3)Changes in the period of the provision for employee benefits is as follows:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Balances at the beginning of the period   4,382    4,376 
Actuarial gain/loss (in other comprehensive income)   (100)   69 
Service cost   124    131 
Amounts paid in the period   (120)   (84)
Translation differences and inflation adjustment   (54)   50 
Balances at the end of the period   4,232    4,542 

 

(4)Changes in the period of the provision for legal claims is as follows:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Balances at the beginning of the period   14,265    13,136 
Accrual of the period   320    675 
Use of the provision   (863)   (738)
Translation differences and inflation adjustment   (338)   (98)
Balances at the end of the period   13,384    12,975 

 

- 22 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

14Equity

 

a) Management share compensation plan and treasury shares

 

In April 2022, USD 500 (equivalent to 89,767 shares) were assigned to employees to be delivered in shares. In May 2022 and April 2023, 26,930 shares were delivered to the eligible executives and key employees in each installment (equivalent to USD 150 each) while the remaining shares will vest in an installment in May 2024.

 

In December 2022, USD 314 (equivalent to 56,348 shares) were assigned to employees to be delivered in shares. In January and April 2023, 16,904 shares were delivered to the eligible executives and key employees in each installment (equivalent to USD 94 each) while the remaining shares will vest in an additional installment in May 2024.

 

In April 2023, USD 739 (equivalent to 77,938 shares) were assigned to employees of which 23,381 shares (equivalent to USD 221.7) were delivered to the eligible executives and key employees, while the remaining shares will vest in installments in May 2024 and May 2025.

 

In November 2023, USD 340 (equivalent to 35,910 shares) were assigned to employees of which 10,773 shares (equivalent to USD 102.1) were delivered to the eligible executives and key employees, while the remaining shares will vest in installments in May 2024 and May 2025.

 

As of March 31, 2024, the remaining new shares are held in treasury until their allocation to executives and key employees in accordance with the Management Compensation Plan.

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Treasury shares  Shares   USD   Shares   USD 
Balances at the beginning of the period   2,251,123    4,322    2,396,015    4,600 
Transfer of treasury shares to executives and key employees   -    -    (16,904)   (32)
Balances at the end of the period   2,251,123    4,322    2,379,111    4,568 

 

b) Other comprehensive income

 

The movements of the reserve of other comprehensive income for the period of the owners of the parent is as follows:

 

   Currency
translation
adjustments
   Remeasurement
of defined benefit
obligations (*)
   Share of
other
comprehensive
income from
associates
   Income
tax effect
(*)
   Transfer from
shareholders
equity –
currency
translation
differences
   Total 
Balances at January 1, 2024   (505,015)   532    (41,239)   (115)   63,402    (482,435)
Other comprehensive income / (loss) for the period   218,922    60    23    (15)   -    218,990 
For the period ended March 31, 2024   (286,093)   592    (41,216)   (130)   63,402    (263,445)
                               
Balances at January 1, 2023   (273,378)   520    (41,169)   (122)   63,402    (250,747)
Other comprehensive income / (loss) for the period   15,420    (30)   19    7    -    15,416 
For the period ended March 31, 2023   (257,958)   490    (41,150)   (115)   63,402    (235,331)

 

(*) Income tax relating to OCI amounts to measurement of defined benefit obligations. The movement was recognized as other comprehensive income of other reserves.

 

- 23 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

14Equity (Cont.)

 

c) Other reserves

 

The movements of Other Reserves of the owners of the Company is as follows:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Balances at the beginning of the period   (1,313,888)   (1,314,025)
Share-based compensation reserve   211    176 
Execution of share-based compensation reserve   -    (94)
Remeasurement of defined benefit obligations net for income tax   45    (23)
Balances at the end of the period   (1,313,632)   (1,313,966)

 

15Contingencies, commitments and restrictions on the distribution of profits

 

a. Contingencies

 

CAAP and its subsidiaries are, from time to time, subject to various claims, lawsuits and other legal proceedings, including customer claims, in which third parties are seeking payment for alleged damages, reimbursement for losses or indemnity. Some of these claims, lawsuits and other legal proceedings are subject to substantial uncertainties. Accordingly, the potential liability with respect to such claims, lawsuits and other legal proceedings cannot be estimated with certainty. Management, with the assistance of legal counsel, periodically reviews the status of each significant matter and assesses potential financial exposure. If a potential loss from a claim, lawsuit or proceeding is considered probable and the amount can be reasonably estimated, a provision is recorded. Accruals for loss contingencies reflect a reasonable estimate of the losses to be incurred based on information available to management as of the date of preparation of the financial statements, and take into consideration the Group’s litigation and settlement strategies.

 

The Group believes that the aggregate provisions recorded for losses in these Condensed Consolidated Interim Financial Statements, are adequate based upon currently available information.

 

There are no other lawsuits or legal proceedings different from the ones included in the Consolidated Financial Statements for the year ended December 31, 2023.

 

b. Restrictions to the distribution of profits and payment of dividends

 

As of March 31, 2024 and December 31, 2023, equity as defined under Luxembourg laws and regulations consisted of:

 

   At March 31,
2024
   At December 31,
2023
 
Share capital   163,223    163,223 
Share premium   183,430    183,430 
Reserve for own shares   4,322    4,322 
Legal reserve   3,676    3,676 
Free distributable reserves   378,910    378,910 
Non-distributable reserves   1,353,706    1,353,706 
Retained earnings   36,268    37,890 
Total equity in accordance with Luxembourg law   2,123,535    2,125,157 

 

At least 5% of the Company’s net income per year, as calculated in accordance with Luxembourg law and regulations, must be allocated to a legal reserve equivalent to 10% of the Company’s share capital. Dividends may not be paid out of the legal reserve.

 

The Company may pay dividends to the extent, among other conditions, that it has distributable retained earnings calculated in accordance with Luxembourg laws and regulations.

 

- 24 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

16Related party balances and transactions

 

Corporación América Airports S.A. is controlled by ACI Airports S.à r.l., which is controlled by Corporación America International S.à r.l., both of which are Luxembourg based companies.

 

Corporación América International S.à r.l. is controlled by Southern Cone Foundation (CAAP’s ultimate parent company), a foundation created under the laws of Liechtenstein, having its corporate domicile in Vaduz. The foundations purpose is to manage its assets through the decisions adopted by its independent board of directors. The potential beneficiaries of this foundation are members of the Eurnekian family and religious, charitable and educational institutions.

 

Transactions and balances with “Associates” are those carried out with entities over which CAAP exerts significant influence in accordance with IFRS, but does not have control. Transactions and balances with related parties, which are not associates and are not consolidated are disclosed as “Other related parties”.

 

The Group receives services from related parties, such as internal audit, management control, financial assistance, technology outsourcing services and construction services.

 

Summary of balances with related parties are:

 

  

At March 31,

2024

  

At December 31,

2023

 
Period-end balances          
           
(a) Arising from sales / purchases of goods / other          
Trade receivables with associates   5,036    4,200 
Trade receivables with other related parties   1,393    962 
Other receivables with associates   57    58 
Other receivables with other related parties   9,610    9,257 
Other financial assets with associates   3,145    3,108 
Other financial assets with other related parties (*)   38,578    28,327 
Trade payables to associates   (3,697)   (2,765)
Trade payables to other related parties   (1,659)   (2,501)
    52,463    40,646 
(b) Other liabilities          
Other liabilities to associates (**)   (14,613)   (15,539)
Other liabilities to other related parties   (3,613)   (2,425)
    (18,226)   (17,964)
(c) Other balances          
Cash and cash equivalents in other related parties   19,861    23,249 
    19,861    23,249 

 

(*) As of March 31, 2024 mainly includes a loan and time deposits to other related parties amounting to USD 14.9 million and USD 20.2 million respectively (USD 14.8 million and USD 10.1 million respectively as of December 31, 2023). As of March 31, 2024, the loan accrues interests at a fixed annual rate of 4.5%, and matures in June 2024. The time deposits total USD 20.0 million, of which USD 10.0 million accrues interests at a fixed annual rate of 4.0%, maturing in July 2024 and the remaining USD 10.0 million accrues interests at a fixed annual rate of 5.0%, maturing in January 2027.

 

(**) As of March 31, 2024 and December 31, 2023, includes deferred income from associates.

 

- 25 -

 

  

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

16Related party balances and transactions (Cont.)

 

   For the three-month period ended
March 31,
 
   2024   2023 
Transactions        
Aeronautical/Commercial revenue   6,923    2,951 
Fees   (2,899)   (2,296)
Interest accruals   454    66 
Acquisition of goods and services   (5,747)   (7,109)
Others   (943)   (999)

 

The Group leases buildings to other related parties which are recognized under the scope of IFRS 16 and accounted in Lease liabilities line for an amount of USD 6,414 as of March 31, 2024 (USD 6,973 as of December 31, 2023). Additionally, the Group has variable equipment leases with other related parties that are excluded from the lease liability according to IFRS 16. Transactions related to those leases are included in Acquisition of goods and services line for an amount of USD 1,467 as of March 31, 2024 (USD 1,576 as of March 31, 2023).

 

Remunerations received by the Group’s key staff amounted to approximately 1.82% of total remunerations accrued at March 31, 2024 (1.44% as of March 31, 2023).

 

17Cash flow disclosures

 

  

For the three-month period ended

March 31,

 
Changes in working capital  2024   2023 
Other receivables and credits   (38,832)   (3,437)
Inventories   2,066    3,727 
Other liabilities   (38,343)   (65,900)
    (75,109)   (65,610)

 

The most significant non-cash transactions are detailed below:

 

  

For the three-month period ended

March 31,

 
   2024   2023 
Intangible assets acquisition with an increase in Other liabilities / Borrowings / Lease liabilities   (78)   (154)
Property, plant and equipment acquisition   (4,218)   - 
Right-of-use asset initial recognition with an increase in Lease liabilities   (82)   (330)
Tax credit with an increase in Other liabilities   (6,887)   - 

 

- 26 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

18Fair value measurement of financial instruments

 

According to the classification included in Note 3.B of the Consolidated Financial Statements as of December 31, 2023, the Group categorizes its financial instruments as assets and liabilities at amortized cost and fair value through profit or loss.

 

For the majority of instruments recorded at amortized cost, the fair values are not materially different from their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature. Significant differences were identified for the following instruments at March 31, 2024:

 

   Fair value   Carrying
amount
 
Trust funds (1)   28,739    26,701 
Long-term borrowings (2)   999,906    1,062,888 

 

(1) It is included in the Other receivables line of the Condensed Consolidated Interim Statement of Financial Position. The fair value of these financial assets was calculated using a discounted cash flow (Level 3).

 

(2) Valuation at quotation prices not adjusted in active markets for identical liabilities included Fair Value Level 2 under IFRS 13 hierarchy. There are no financial liabilities measured at fair value through other comprehensive income nor through profit or loss.

 

Other financial assets measured at fair value through profit or loss are included in Level 1 as defined in IFRS 13 and comprise primarily government securities, mutual funds and corporate bonds.

 

19Financial risk factors

 

As stated in Note 3A of the Consolidated Financial Statements as of December 31, 2023, CAAP’s Argentine subsidiaries are operating in an economic context in which main variables have a strong volatility as a consequence of political and economic uncertainties, both in national and international environments. Inflation rate for the three-month period ended March 31, 2024 is detailed in Note 2 and the devaluation in the same period was 6%, while certain restrictions to access the Mercado Único y Libre de Cambios (“MULC”) are still in force.

 

Considering this situation and the uncertainties resulting from the evolution of the above-mentioned variables in the future, CAAP`s Argentine subsidiaries continually assess the situation in order to identify the unforeseen potential impacts that could affect the Company´s business and performance.

 

20Subsequent events

 

Toscana Aeroporti S.p.A. (“TA”) legal proceedings

 

On May 1, 2024, the Civil Court of Milan filed the ruling regarding the claim initiated by Nuove Iniziative Toscane (“NIT”) on September 10, 2021, which was included in Note 26.a of the Consolidated Financial Statements for the year ended December 31, 2023. NIT´s claim was rejected and it was condemned to return to TA the sums that had been paid as deposit, plus interest, as well as to pay the legal costs.

 

There is a six-month term for NIT to submit an appeal to the ruling, unless it has been duly served, in which case the term to submit the appeal is 30 days from the date of service.

 

AA2000 financial risk factors

 

As of the date of issuance of these Condensed Consolidated Interim Financial Statements, AA2000 has sold the Series 2 notes of BOPREAL, included in Notes 3A and 34 of the Consolidated Financial Statements for the year ended December 31, 2023, applying the proceeds to the payment of import debts.
 

- 27 -

 

 

Corporación América Airports S.A. Unaudited Condensed Consolidated Interim Financial Statements for the three-month period ended March 31, 2024 and 2023 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

20Subsequent events (Cont.)

 

Peruvian proceedings - Kuntur Wasi

 

As stated in the Consolidated Financial Statements for the year ended December 31, 2023, on August 10, 2023, Kuntur Wasi received notification from the competent authority ICSID Arbitral Court (known as CIADI in Spanish) regarding a favorable resolution concerning the arbitration procedure due to unreasonably and arbitrary unilateral termination of the Concession Agreement by the Peruvian Ministry of Transports and Communications. While the Arbitral Court had already determined the final award for damages and losses, on February 28, 2024 both parties submitted further information that was required to calculate the business profit based on the invested amounts as well as the recognition of interests on the related amounts.

 

On May 9, 2024, Kuntur Wasi received notification from the CIADI, deciding among other things that “Peru breached the concession contract by terminating it without a well-founded reason of public interest". Furthermore, “the Tribunal orders that damages in the amount of USD 91.2 million (including interest to February 28, 2024) should be paid to Kuntur Wasi, together with any additional interest that has accrued at the rate established in this award to the date of payment; compounded annually”. As of the date of issuance of the Interim Consolidated Financial Statements the Company is analyzing the effects of the resolution.

 

AA2000 - Indebtedness

 

In May 2024, AA2000 repurchased dollar-linked Class 6 and Class 9 Notes for USD 2.5 million and USD 0.1 million, respectively.

 

CAISA - Concession agreement extension

 

On May 15, 2024, CAISA signed an amendment to its concession agreement that includes the extension of the term of the concession agreement for a ten-year period from 2033 through 2043, the removal of certain investment projects from the previous agreement, and a new commitment to invest USD 3.0 million within the period of 2024-2026.

 

PDS – Amendment to concession agreement

 

On May 15, 2024, PDS signed amendments to its concession agreement to include part of the building of the old passenger terminal of the Carrasco International Airport into the concession, in which PDS plans to invest approximately USD 5.5 million to expand its cargo activities, in particular, pharma and courier. As part of the agreement, PDS will pay an additional fee as compensation for the new activities carried out in the aforementioned space.

 

Additionally, PDS committed to invest in a new Instrument Landing System (ILS) category IIIb, similar to those utilized in the world's major airports. This system will enable aircrafts to land safely in adverse weather conditions, thereby enhancing air connectivity, increasing predictability for airlines, and providing a competitive advantage for aviation development. The amendment includes a tariff adjustment (approach fee) that will be charged by PDS.

 

There are no other subsequent events that could significantly affect the Group´s financial position as of March 31, 2024.

 

- 28 -

 

 


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