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Corporacion America Airports Reports Second Quarter 2022 Results


Corporación América Airports S.A. (NYSE: CAAP), ("CAAP" or the "Company") a leading private airport operator in the world reported today its unaudited, consolidated results for the three and six-month periods ended June 30, 2022. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board ("IASB").

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29 ("IAS 29"), as detailed on Section "Hyperinflation Accounting in Argentina" on page 22.

Second Quarter 2022 Highlights

CEO Message

Commenting on the results for the quarter Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: "We delivered another strong quarter, achieving Adjusted EBITDA of $111 million underpinned by enhanced performance across operations, and up from $9 million in the second quarter of last year. Adjusted EBITDA margin ex-IFRIC12 expanded to 36% from 7% in 2Q21, reflecting the continued recovery in passenger traffic, robust commercial revenues above pre-pandemic levels, and a continued focus on cost management."

"On the balance sheet front, the successful liability management transactions concluded last year, together with the significant increase in Adjusted EBITDA over the last quarters, allowed for a sharp reduction in our Net Debt to LTM Adjusted EBITDA ratio to 3.5x this quarter, down from 5.1x in the first quarter, while we face no major debt maturities until late 2024. Moreover, we are on track to continue reducing our Net Debt to LTM Adjusted EBITDA ratio."

"Looking ahead, we anticipate passenger traffic across our airports to continue recovering driven by pent-up demand and the elimination of travel restrictions. In the near-term, our operations in Europe are expected to continue benefitting from a strong summer holiday travel season, although we are mindful of the overall macro and geopolitical context. With a long-term view on value creation, we remain focused on advancing the economic re-equilibrium processes in Brazil and Armenia, while selectively looking for additional value creation opportunities and progressing on our sustainability initiatives."

Operating & Financial Highlights

(In millions of U.S. dollars, unless otherwise noted)

 

 

2Q22 as reported

 

2Q21 as reported

 

% Var as reported

 

IAS 29 2Q22

 

2Q22 ex IAS 29

 

2Q21 ex IAS 29

 

% Var ex IAS 29

Passenger Traffic (Million Passengers) (1)(2)

 

15.1

 

5.5

 

177.0%

 

 

 

15.1

 

5.5

 

177.0%

Revenue

 

332.7

 

135.3

 

145.9%

 

-2.1

 

334.8

 

134.3

 

149.3%

Aeronautical Revenues

 

150.8

 

45.7

 

230.0%

 

-0.5

 

151.3

 

45.4

 

233.4%

Non-Aeronautical Revenues

 

181.8

 

89.6

 

103.0%

 

-1.6

 

183.5

 

88.9

 

106.4%

Revenue excluding construction service

 

304.8

 

122.6

 

148.6%

 

-0.1

 

304.9

 

121.0

 

152.0%

Operating Income / (Loss)

 

72.1

 

-27.2

 

-364.6%

 

-17.3

 

89.4

 

-16.4

 

-644.4%

Operating Margin

 

21.7%

 

-20.1%

 

4181

 

0.0%

 

26.7%

 

-12.2%

 

3892

Net (Loss) / Income Attributable to Owners of the Parent

 

69.9

 

-34.0

 

-305.6%

 

38.8

 

31.0

 

22.3

 

39.1%

EPS (US$)

 

0.43

 

-0.21

 

-305.4%

 

0.24

 

0.19

 

0.14

 

39.0%

Adjusted EBITDA

 

110.6

 

8.5

 

1195.3%

 

-0.1

 

110.7

 

7.9

 

1301.7%

Adjusted EBITDA Margin

 

33.2%

 

6.3%

 

2693

 

-

 

33.1%

 

5.9%

 

2719

Adjusted EBITDA Margin excluding Construction Service

 

36.2%

 

6.5%

 

2970

 

-

 

36.2%

 

6.0%

 

3016

Net Debt to LTM Adjusted EBITDA

 

3.53x

 

n.m.

 

-

 

-

 

-

 

-

 

-

Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (3)

 

3.53x

 

n.m.

 

-

 

-

 

-

 

-

 

-

Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.

1)

 

Note that preliminary passenger traffic figures for Ezeiza Airport, in Argentina, for January 2020 were adjusted to include additional inbound passengers not accounted for in the initial count, for an average of approximately 5% of total passenger traffic at Ezeiza Airport and 1% of total traffic at CAAP, during that period. Importantly, inbound traffic does not affect revenues, as tariffs are applicable on departure passengers.

2)

 

Starting November 2019, the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.

3)

 

LTM Adjusted EBITDA excluding impairments of intangible assets

Operating & Financial Highlights

(In millions of U.S. dollars, unless otherwise noted)

 

 

6M22 as reported

 

6M21 as reported

 

% Var as reported

 

IAS 29 6M22

 

6M22 ex IAS 29

 

6M21 ex IAS 29

 

% Var ex IAS 29

Passenger Traffic (Million Passengers) (1)(2)

 

28.6

 

12.0

 

138.4%

 

 

 

28.6

 

12.0

 

138.4%

Revenue

 

596.5

 

279.1

 

113.7%

 

3.0

 

593.5

 

274.6

 

116.2%

Aeronautical Revenues

 

272.7

 

89.8

 

203.6%

 

2.3

 

270.4

 

88.2

 

206.6%

Non-Aeronautical Revenues

 

323.8

 

189.3

 

71.1%

 

0.7

 

323.1

 

186.4

 

73.4%

Revenue excluding construction service

 

554.5

 

237.5

 

133.5%

 

6.2

 

548.4

 

231.7

 

136.7%

Operating Income / (Loss)

 

125.5

 

-54.2

 

-331.5%

 

-31.1

 

156.6

 

-34.0

 

-560.8%

Operating Margin

 

21.0%

 

-19.4%

 

4046

 

-

 

26.4%

 

-12.4%

 

3875

Net (Loss) / Income Attributable to Owners of the Parent

 

97.7

 

-78.7

 

-224.1%

 

72.8

 

24.8

 

-45.7

 

-154.3%

EPS (US$)

 

0.61

 

-0.49

 

-223.8%

 

0.45

 

0.15

 

-0.28

 

-154.2%

Adjusted EBITDA

 

202.2

 

16.0

 

1166.6%

 

2.8

 

199.4

 

14.2

 

1306.3%

Adjusted EBITDA Margin

 

33.9%

 

5.7%

 

2818

 

-

 

33.6%

 

5.2%

 

2843

Adjusted EBITDA Margin excluding Construction Service

 

36.3%

 

5.8%

 

3057

 

-

 

36.2%

 

5.8%

 

3046

Net Debt to LTM Adjusted EBITDA

 

3.53x

 

n.m.

 

-

 

-

 

-

 

-

 

-

Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (3)

 

3.53x

 

n.m.

 

-

 

-

 

-

 

-

 

-

Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes.

1)

 

Note that preliminary passenger traffic figures for Ezeiza Airport, in Argentina, for January 2020 were adjusted to include additional inbound passengers not accounted for in the initial count, for an average of approximately 5% of total passenger traffic at Ezeiza Airport and 1% of total traffic at CAAP, during that period. Importantly, inbound traffic does not affect revenues, as tariffs are applicable on departure passengers.

2)

 

Starting November 2019, the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.

3)

 

LTM Adjusted EBITDA excluding impairments of intangible assets

2Q22 Operating Performance

Passenger Traffic

Total passenger traffic increased 177.0% YoY to 15.1 million reaching 75.5% of pre-pandemic levels, up from 65.5% in the previous quarter. Performance was supported by a continued recovery in travel demand following the gradual lifting of travel restrictions across all countries of operations. Notably, in 2Q22 Armenia surpassed pre-pandemic traffic levels by 5.7%, while Ecuador stood at 93.9% and Italy at 84.5%. Meanwhile, traffic in Argentina and Uruguay stood at 75.8% and 65.1% of 2Q19 levels, respectively, continuing the recovery trend. Finally, traffic in Brazil reached 76.4% of pre-pandemic levels, slightly below the 77.3% recorded in the past quarter. International traffic increased to 74.4% of pre-pandemic levels, up from the 52.4% in 1Q22, with domestic traffic reaching 78.8% of 2Q19 levels. Traffic in April, May and June improved sequentially, reaching 73.5%, 75.5% and 77.5% of traffic levels for the same months in 2019, respectively.

Passenger Traffic in Argentina increased 3.6x YoY and improved to 75.8% of pre-pandemic levels, up from the 63.6% posted in the prior quarter. International passenger traffic, which continued to benefit from the full re-opening of borders on November 1, 2021 and the lifting of travel requirements, increased 5.9x YoY in 2Q22 and reached 60.7% of 2Q19 traffic levels, up from 42.6% in 1Q22, showing a continued sequential improvement. Domestic passenger traffic, which accounted for 72% of total traffic in the quarter, increased 3.2x YoY to 83.0% of 2Q19 levels, up from 75.9% posted in 1Q22. Effective April 7, 2022, Covid tests are no longer required, and travelers must complete an affidavit form.

In Italy, passenger traffic increased 5.1x YoY and improved to 84.5% of pre-pandemic levels, up from 56.5% in 1Q22, with continued recovery at both, Florence and Pisa airports. Domestic and international traffic increased by 1.7x and 8.4x YoY, respectively, and stood at 91.7% and 82.7% of 2Q19 levels. Traffic in June benefited from the start of the summer season and from the full lifting of travel restrictions effective June 1, 2022.

In Brazil, total passenger traffic rose 62.3% YoY, reaching 76.4% of 2Q19 pre-pandemic levels, slightly below the 77.3% posted in the prior quarter. Domestic passenger traffic was up 94.7% YoY and reached nearly 90% of 2Q19 levels, while transit passengers increased 2.6% YoY to 54.8% of 2Q19 traffic. Traffic in the quarter was impacted by weaker travel demand as a result of rising fuel prices adding pressure on airfares.

In Uruguay, where traffic is largely international, passenger traffic increased 5.3x YoY, reaching 65.1% of 2Q19 levels, up from 50.3% recorded in 1Q22, reflecting an ongoing recovery after the re-opening of borders on November 1, 2021, and the gradual relaxation of travel requirements.

In Armenia, where traffic is 100% international, passenger traffic improved 56.6% YoY, exceeding pre-pandemic levels by 5.7% for the first time since the inception of the pandemic. During the quarter, the government announced the lifting of all Covid-related entry requirements for all travelers, effective May 1, 2022.

In Ecuador, total passenger traffic grew 1.1x YoY, to 93.9% of 2Q19 levels, up from the 78.9% in 1Q22. Both, domestic and international passenger traffic continued to improve reaching 91.3% and 96.9% of pre-pandemic levels, respectively. International passenger traffic remained supported by routes to Europe, the US and Panama operating at higher levels than 2019, while domestic passenger traffic was impacted by some flight cancelations in June due to protests and social unrest.

Cargo Volume

Cargo volume increased 5.6% YoY in 2Q22, to 83.3% of pre-pandemic levels of 2Q19, with strong contributions from Argentina, Brazil and Uruguay, which together accounted for more than 80% of total volume in the quarter. Notably, cargo volume in Uruguay and Italy was above 2Q19 levels, while in Argentina it was above 85% of pre-pandemic levels.

Aircraft Movements

Total aircraft movements increased 89.1% YoY in 2Q22 and reached 87.6% of 2Q19 levels, up from 73.5% in the first quarter. Above 90% of aircraft movements in the quarter came from Argentina (51%), Brazil (18%), Italy (11%) and Ecuador (11%), which reached 87.3%, 89.0%, 90.6% and 100.2% of pre-pandemic levels, respectively. Notably, aircraft movements in Armenia surpassed 2Q19 levels by 35%.

Tables with detailed passenger traffic, cargo volume and aircraft movement information for each airport can be found on page 35 of this report.

Operational Statistics: Passenger Traffic, Cargo Volume and Aircraft Movements

 

 

2Q22

 

2Q21

 

2Q19

 

% Var. ('22
vs '21)

 

% Var. ('22
vs '19)

Domestic Passengers (in thousands)

 

8,795

 

3,256

 

11,159

 

170.1%

 

-21.2%

International Passengers (in thousands)

 

5,205

 

1,312

 

6,993

 

296.8%

 

-25.6%

Transit Passengers (in thousands)

 

1,101

 

883

 

1,853

 

24.7%

 

-40.6%

Total Passengers (in thousands)

 

15,102

 

5,451

 

20,006

 

177.0%

 

-24.5%

Cargo Volume (in thousands of tons)

 

87.9

 

83.2

 

105.6

 

5.6%

 

-16.7%

Total Aircraft Movements (in thousands)

 

181.2

 

95.8

 

206.9

 

89.1%

 

-12.4%

Passenger Traffic Breakdown

   

Cargo Volume

   

Aircraft Movements

 

Country

 

2Q22

 

2Q21

 

% Var.

   

2Q22

 

2Q21

 

% Var.

   

2Q22

 

2Q21

 

% Var.

 

 

 

(thousands)

   

(tons)

   

 

 

Argentina(1)

 

7,670

 

1,669

 

359.5%

   

47,187

 

44,018

 

7.2%

   

92,618

 

42,954

 

115.6%

 

Italy

 

1,992

 

325

 

513.2%

   

3,689

 

3,698

 

-0.2%

   

20,335

 

6,914

 

194.1%

 

Brazil (2)

 

3,273

 

2,017

 

62.3%

   

14,224

 

16,435

 

-13.5%

   

33,486

 

21,843

 

53.3%

 

Uruguay (3)

 

325

 

52

 

529.7%

   

10,018

 

8,910

 

12.4%

   

6,255

 

3,160

 

97.9%

 

Ecuador (4)

 

1,057

 

504

 

109.7%

   

8,411

 

5,192

 

62.0%

   

20,354

 

11,958

 

70.2%

 

Armenia

 

785

 

501

 

56.6%

   

4,389

 

4,317

 

1.7%

   

8,169

 

4,727

 

72.8%

 

Peru (5)

 

-

 

383

 

-100.0%

   

-

 

662

 

-100.0%

   

-

 

4,269

 

-100.0%

 

TOTAL

 

15,102

 

5,451

 

177.0%

   

87,918

 

83,232

 

5.6%

   

181,217

 

95,825

 

89.1%

 

Passenger Traffic Breakdown

 

 

Cargo Volume

 

 

Aircraft Movements

Country

 

2Q22

 

2Q19

 

% Var.

 

2Q22

 

2Q19

 

% Var.

 

2Q22

 

2Q19

 

% Var.

 

 

(thousands)

 

 

(tons)

 

 

 

Argentina(1)

 

7,670

 

10,117

 

-24.2%

 

 

47,187

 

54,786

 

-13.9%

 

 

92,618

 

106,037

 

-12.7%

Italy

 

1,992

 

2,359

 

-15.5%

 

 

3,689

 

3,428

 

7.6%

 

 

20,335

 

22,444

 

-9.4%

Brazil (2)

 

3,273

 

4,285

 

-23.6%

 

 

14,224

 

23,855

 

-40.4%

 

 

33,486

 

37,624

 

-11.0%

Uruguay (3)

 

325

 

499

 

-34.9%

 

 

10,018

 

7,784

 

28.7%

 

 

6,255

 

6,514

 

-4.0%

Ecuador (4)

 

1,057

 

1,125

 

-6.1%

 

 

8,411

 

9,837

 

-14.5%

 

 

20,354

 

20,304

 

0.2%

Armenia

 

785

 

742

 

5.7%

 

 

4,389

 

4,736

 

-7.3%

 

 

8,169

 

6,049

 

35.0%

Peru (5)

 

-

 

878

 

-100.0%

 

 

-

 

1,171

 

-100.0%

 

 

-

 

7,889

 

-100.0%

TOTAL

 

15,102

 

20,006

 

-24.5%

 

 

87,918

 

105,597

 

-16.7%

 

 

181,217

 

206,861

 

-12.4%

1)

 

See Note 1 in Table " Operating & Financial Highlights"

2)

 

Starting November 2019, the Company has reclassified its passenger traffic figures for Brasilia Airport between international and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.

3)

 

Cargo volumes in Uruguay were rectified from January to June 2020, to reflect all cargo passing through the cargo terminal, instead of air cargo only.

4)

 

CAAP owns 99.9% of ECOGAL, which operates and maintains the Galapagos Airport, but due to the terms of the concession agreement, ECOGAL's results are accounted for by the equity method. However, 100% of ECOGAL's passenger traffic and aircraft movements are included in this table.

5)

 

CAAP owns 50.0% of AAP and accounts for its results by the equity method. However, 100% of AAP's passenger traffic and aircraft movements are included in this table.

Review of Consolidated Results

Results for ECOGAL, which operates the Galapagos Airport in Ecuador, are accounted for under the equity method. In December 2021, CAAP signed an agreement to transfer its 50% ownership interest in Aeropuertos Andinos del Perú S.A. to Andino Investment Holding S.A. and, consequently, stopped operating the five airports that were under concession.

Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance to IFRS rule IAS 29, as detailed on Section "Hyperinflation Accounting in Argentina" on page 22.

Revenues

Consolidated Revenues increased 145.9% YoY to $332.7 million in 2Q22, or 152.0% YoY to $304.9 million, when excluding Construction Services and the impact of IAS 29, reflecting higher activity following the gradual lifting of travel restrictions. When compared to 2Q19 and also excluding IAS 29, Revenues excluding Construction Services grew by 1.3%, even with traffic at 75.5% of pre-pandemic levels, reflecting tariff increases and Commercial Revenues 24.5% above 2Q19 levels. Compared to 1Q22, revenues ex IFRIC 12 improved 24.7% sequentially, with strong performances in Italy (+105.3%), Armenia (+87.9%) and Argentina (+15.3%), reflecting higher passenger traffic following the gradual lifting of travel requirements.

The following table shows revenue performance by country. More detail on the performance of CAAP´s key countries of operations can be found on page 13.

Revenues by Segment (in US$ million)

Country

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 exIAS 29

 

% Var ex
IAS 29

Argentina

 

181.4

 

64.5

 

181.2%

 

-2.1

 

183.5

 

63.5

 

189.0%

Italy

 

33.6

 

15.4

 

118.2%

 

-

 

33.6

 

15.4

 

118.2%

Brazil

 

20.5

 

11.5

 

78.4%

 

-

 

20.5

 

11.5

 

78.4%

Uruguay

 

23.3

 

11.0

 

112.5%

 

-

 

23.3

 

11.0

 

112.5%

Armenia

 

50.7

 

18.9

 

168.3%

 

-

 

50.7

 

18.9

 

168.3%

Ecuador (1)

 

23.0

 

14.0

 

64.9%

 

-

 

23.0

 

14.0

 

64.9%

Unallocated

 

0.1

 

0.1

 

179.0%

 

-

 

0.1

 

0.1

 

179.0%

Total consolidated revenue (2)

 

332.7

 

135.3

 

145.9%

 

-2.1

 

334.8

 

134.3

 

149.3%

1

 

Only includes Guayaquil Airport.

2

 

Excluding Construction Service revenue, ?As reported' revenues increase 162.0% YoY in Argentina, 222.7% in Italy, 78.4% in Brazil, 146.5% in Uruguay, 173.4% in Armenia and 64.9% in Ecuador.

 

Revenue Breakdown (in US$ million)

 

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 ex
IAS 29

 

% Var ex
IAS 29

Aeronautical Revenue

 

150.8

 

45.7

 

230.0%

 

-0.5

 

151.3

 

45.4

 

233.4%

Non-aeronautical Revenue

 

181.8

 

89.6

 

103.0%

 

-1.6

 

183.5

 

88.9

 

106.4%

Commercial revenue

 

152.1

 

76.5

 

98.7%

 

0.4

 

151.8

 

75.3

 

101.7%

Construction service revenue (1)

 

27.8

 

12.6

 

120.2%

 

-2.0

 

29.9

 

13.3

 

125.2%

Other revenue

 

1.8

 

0.4

 

405.8%

 

0.0

 

1.8

 

0.4

 

405.8%

Total Consolidated Revenue

 

332.7

 

135.3

 

145.9%

 

-2.1

 

334.8

 

134.3

 

149.3%

Total Revenue excluding Construction Service revenue (2)

 

304.8

 

122.6

 

148.6%

 

-0.1

 

304.9

 

121.0

 

152.0%

1)

 

Construction Service revenue equals the construction or upgrade costs plus a reasonable margin.

2)

 

Excludes Construction Service revenue.

Revenue Breakdown (in US$ million)

 

 

2Q22 as
reported

 

2Q19 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q19 ex
IAS 29

 

% Var ex
IAS 29

Aeronautical Revenue

 

150.8

 

185.4

 

-18.6%

 

-0.5

 

151.3

 

178.7

 

-15.3%

Non-aeronautical Revenue

 

181.8

 

227.2

 

-20.0%

 

-1.6

 

183.5

 

216.8

 

-15.4%

Commercial revenue

 

152.1

 

126.7

 

20.0%

 

0.4

 

151.8

 

121.9

 

24.5%

Construction service revenue (1)

 

27.8

 

99.9

 

-72.1%

 

-2.0

 

29.9

 

94.4

 

-68.4%

Other revenue

 

1.8

 

0.5

 

288.5%

 

-

 

1.8

 

0.5

 

288.5%

Total Consolidated Revenue

 

332.7

 

412.6

 

-19.4%

 

-2.1

 

334.8

 

395.5

 

-15.3%

Total Revenue excluding Construction Service revenue (2)

 

304.8

 

312.6

 

-2.5%

 

-0.1

 

304.9

 

301.0

 

1.3%

1)

 

Construction Service revenue equals the construction or upgrade costs plus a reasonable margin.

2)

 

Excludes Construction Service revenue.

Aeronautical Revenues accounted for 45.3% of total revenues and increased 230.0% YoY, to $150.8 million. When compared to 2Q19, aeronautical revenues excluding IAS 29 declined 15.3% to $151.3 million, as passenger traffic has not fully recovered, partially offset by tariff increases. During the quarter and excluding IAS 29, aeronautical revenue declined 14.3%, or $13.5 million, in Argentina, 19.1%, or $5.1 million, in Italy, and 29.7%, or $4.3 million, in Uruguay, compared to the same quarter of 2019. Moreover, aeronautical revenues declined 36.3%, or $4.7 million in Brazil, and 5.7%, or $1.0 million in Ecuador, while Armenia reported a 10.5% increase from pre-pandemic levels of 2Q19.

Non-Aeronautical Revenues accounted for 54.7% of total revenues and increased 103.0% YoY, to $181.8 million. When compared to 2Q19 and excluding the impact of IAS 29, non-aeronautical revenues declined 15.4%, or $33.3 million, to $183.5 million, driven by a decline of 68.4%, or $64.6 million, in Construction Service Revenue, mainly as a result of lower capex in Argentina. Notably, this was partially offset by an increase of 24.5%, or $29.9 million, in Commercial Revenues, principally driven by higher Cargo and Duty free revenues in Argentina, as well as higher Fueling services in Armenia.

Excluding both Construction Service Revenue and the impact of IAS 29, non-aeronautical revenues increased 25.5% against 2Q19, to $153.6 million.

Operating Costs and Expenses

During 2Q22, Operating Costs and Expenses, excluding Construction Service Cost, increased 57.5% YoY to $236.7 million, mainly driven by higher Concession fees and Salaries and Social Security Contributions, in line with higher activity, along with higher Cost of fuel in Armenia. When compared to 2Q19, Operating Costs and Expenses, excluding Construction Service Cost and IAS 29, increased 0.7% to $219.6 million, mainly due to higher Cost of fuel in Armenia tied to higher fuel sales and, to a lesser extent, higher Salaries and social security contributions, which were impacted by higher inflation rates than currency depreciation, in Argentina. On a comparable basis, excluding Cost of fuel, Operating Costs and Expenses excluding Construction Service Cost and IAS 29, would have declined 7.3% against pre-pandemic levels.

Cost of Services increased 71.0% YoY, to $234.9 million reflecting increased traffic and cargo activity. When compared to 2Q19 and excluding IAS29, Cost of Services declined 20.1%, to $220.4 million, mainly as a result of the following declines:

This was partially offset by an increase of 162.8%, or $16.8 million, in Cost of fuel, primarily in Armenia.

Excluding Construction Service cost, Cost of Services increased 65.4% YoY, to $207.4 million. On a comparable basis against 2Q19 and excluding the impact of IAS29, Cost of Services increased 4.8%, or $8.7 million, to $190.9 million, mainly as a result of the aforementioned increase in Cost of fuel.

Selling, General and Administrative Expenses ("SG&A") increased 22.2% YoY, to $28.6 million in 2Q22 on an ?As reported' basis. When compared to 2Q19 and excluding the impact of IAS 29, SG&A declined 21.8%, to $28.0 million, mainly as a result of a $10.1 million bad debt recovery in 2Q22 related to outstanding amounts owed by a national carrier, in Argentina.

Other Operating Expenses were $0.7 million in 2Q22, down 51.2% from $1.5 million recorded in 2Q21 and relatively in line with $0.1 million posted in 2Q19.

Costs and Expenses (in US$ million)

 

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 ex
IAS 29

 

% Var ex
IAS 29

Cost of Services

 

234.9

 

137.4

 

71.0%

 

14.5

 

220.4

 

125.8

 

75.2%

Salaries and social security contributions

 

54.1

 

33.4

 

61.9%

 

-0.3

 

54.4

 

33.1

 

64.3%

Concession fees

 

39.4

 

20.7

 

89.9%

 

-0.1

 

39.5

 

20.5

 

92.4%

Construction service cost

 

27.5

 

12.1

 

128.3%

 

-2.0

 

29.5

 

12.7

 

133.1%

Maintenance expenses

 

26.3

 

19.1

 

37.8%

 

-0.1

 

26.3

 

18.8

 

40.1%

Amortization and depreciation

 

36.9

 

33.8

 

9.2%

 

17.0

 

19.9

 

22.4

 

-11.4%

Other

 

50.7

 

18.3

 

176.7%

 

0.0

 

50.8

 

18.3

 

178.3%

Cost of Services Excluding Construction Service cost

 

207.4

 

125.3

 

65.4%

 

16.5

 

190.9

 

113.1

 

68.8%

Selling, general and administrative expenses

 

28.6

 

23.4

 

22.2%

 

0.7

 

28.0

 

23.2

 

20.6%

Other expenses

 

0.7

 

1.6

 

-53.2%

 

0.0

 

0.7

 

1.6

 

-52.2%

Total Costs and Expenses

 

264.3

 

162.4

 

62.7%

 

15.1

 

249.2

 

150.5

 

65.5%

Total Costs and Expenses Excluding Construction Service cost

 

236.7

 

150.3

 

57.5%

 

17.1

 

219.6

 

137.9

 

59.3%

Costs and Expenses (in US$ million)

 

 

2Q22 as
reported

 

2Q19 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q19 ex
IAS 29

 

% Var ex
IAS 29

Cost of Services

 

234.9

 

303.1

 

-22.5%

 

14.5

 

220.4

 

275.9

 

-20.1%

Salaries and social security contributions

 

54.1

 

51.0

 

6.1%

 

-0.3

 

54.4

 

49.3

 

10.2%

Concession fees

 

39.4

 

41.0

 

-3.9%

 

-0.1

 

39.5

 

39.3

 

0.6%

Construction service cost

 

27.5

 

99.3

 

-72.3%

 

-2.0

 

29.5

 

93.8

 

-68.5%

Maintenance expenses

 

26.3

 

33.0

 

-20.4%

 

-0.1

 

26.3

 

30.8

 

-14.4%

Amortization and depreciation

 

36.9

 

39.8

 

-7.4%

 

17.0

 

19.9

 

23.7

 

-16.3%

Other

 

50.7

 

38.9

 

30.3%

 

0.0

 

50.8

 

39.0

 

30.3%

Cost of Services Excluding Construction Service cost

 

207.4

 

203.7

 

1.8%

 

16.5

 

190.9

 

182.1

 

4.8%

Selling, general and administrative expenses

 

28.6

 

37.2

 

-22.9%

 

0.7

 

28.0

 

35.8

 

-21.8%

Other expenses

 

0.7

 

0.1

 

414.5%

 

0.0

 

0.7

 

0.1

 

520.8%

Total Costs and Expenses

 

264.3

 

340.4

 

-22.4%

 

15.1

 

249.2

 

311.8

 

-20.1%

Total Costs and Expenses Excluding Construction Service cost

 

236.7

 

241.0

 

-1.8%

 

17.1

 

219.6

 

218.0

 

0.7%

Adjusted EBITDA and Adjusted EBITDA excluding Construction Service

During 2Q22, CAAP reported Adjusted EBITDA of $110.6 million, up from an Adjusted EBITDA of $8.5 million in the year-ago period, and 6.7% lower than the $118.6 million reported in 2Q19. All countries of operations reported positive Adjusted EBITDA in the quarter. Adjusted EBITDA margin ex-IFRIC12, expanded to 36.2% from 6.5% in 2Q21 and was 1.5 percentage points below the 37.7% reported in 2Q19. Adjusted EBITDA included the recognition of $14.9 million related to outstanding amounts owed by a national carrier, in Argentina.

Excluding the impact from IAS 29, Adjusted EBITDA was $110.7 million, increasing from $7.9 million in the year ago period, but below the $113.2 million reported in 2Q19. The Adjusted EBITDA margin excluding construction service expanded to 36.2%, from 6.0% in 2Q21 and was down 1.2 percentage points from 37.4% in 2Q19. To note, 2Q19 Adjusted EBITDA included a $2.2 million one-time gain from the positive outcome of a claim against the Ministry of Transport, regarding the Fire Brigade Protection Fund dispute, in Italy.

Adjusted EBITDA by Segment (in US$ million)

 

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 ex
IAS 29

 

% Var ex
IAS 29

Argentina

 

74.0

 

8.9

 

734.1%

 

-0.1

 

74.1

 

8.2

 

800.4%

Italy

 

5.6

 

-4.4

 

226.9%

 

-

 

5.6

 

-4.4

 

226.9%

Brazil

 

1.9

 

-7.0

 

127.5%

 

-

 

1.9

 

-7.0

 

127.5%

Uruguay

 

7.6

 

0.7

 

1047.3%

 

-

 

7.6

 

0.7

 

1047.3%

Armenia

 

16.3

 

9.3

 

75.0%

 

-

 

16.3

 

9.3

 

75.0%

Ecuador

 

7.3

 

3.2

 

129.6%

 

-

 

7.3

 

3.2

 

129.6%

Unallocated

 

-2.2

 

-2.1

 

3.6%

 

-

 

-2.2

 

-2.1

 

3.6%

Total segment EBITDA

 

110.6

 

8.5

 

1195.3%

 

-0.1

 

110.7

 

7.9

 

1301.7%

 

 

2Q22 as
reported

 

2Q19 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q19 ex
IAS 29

 

% Var ex
IAS 29

Argentina

 

74.0

 

72.3

 

2.2%

 

-0.1

 

74.1

 

67.0

 

10.6%

Italy

 

5.6

 

13.9

 

-59.8%

 

-

 

5.6

 

13.9

 

-59.8%

Brazil

 

1.9

 

3.0

 

-36.8%

 

-

 

1.9

 

3.0

 

-36.8%

Uruguay

 

7.6

 

12.1

 

-37.4%

 

-

 

7.6

 

12.1

 

-37.4%

Armenia

 

16.3

 

12.1

 

34.8%

 

-

 

16.3

 

12.1

 

34.8%

Ecuador

 

7.3

 

6.5

 

13.2%

 

-

 

7.3

 

6.5

 

13.2%

Unallocated

 

-2.2

 

-1.5

 

47.8%

 

-

 

-2.2

 

-1.5

 

47.8%

Total segment EBITDA

 

110.6

 

118.6

 

-6.7%

 

-0.1

 

110.7

 

113.2

 

-2.2%

Adjusted EBITDA Reconciliation to Income from Continuing Operations (in US$ million)

 

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 ex
IAS 29

 

% Var ex
IAS 29

Income from Continuing Operations

 

71.6

 

-54.7

 

-231.0%

 

38.8

 

32.8

 

1.6

 

1906.9%

Financial Income

 

-25.8

 

-8.8

 

191.9%

 

22.2

 

-47.9

 

-8.7

 

452.3%

Financial Loss

 

44.8

 

15.3

 

193.6%

 

-131.7

 

176.5

 

74.0

 

138.7%

Inflation adjustment

 

-5.1

 

-1.2

 

313.8%

 

-3.8

 

-1.4

 

-0.2

 

684.4%

Income Tax Expense

 

-13.8

 

22.1

 

-162.3%

 

57.2

 

-71.0

 

-83.3

 

-14.8%

Amortization and Depreciation

 

38.8

 

35.9

 

8.1%

 

17.1

 

21.6

 

24.4

 

-11.3%

Adjusted EBITDA

 

110.6

 

8.5

 

1195.3%

 

-0.1

 

110.7

 

7.9

 

1301.7%

Adjusted EBITDA Margin

 

33.2%

 

6.3%

 

2693

 

-

 

33.1%

 

5.9%

 

2719

Adjusted EBITDA Margin excluding Construction Service

 

36.2%

 

6.5%

 

2971

 

-

 

36.2%

 

6.0%

 

3016

Financial Income and Loss

CAAP reported a Net financial loss of $14.0 million in 2Q22 compared to a loss of $5.2 million in 2Q21. Had IAS 29 not been applied, and compared to 2Q19, Net financial loss would have increased 338.5%, or $98.2 million, to $127.3 million, mainly driven by lower Foreign exchange net results, higher net interest expenses resulting from higher outstanding debt, as well as higher Changes in liability for concessions in Brazil, and higher interests related to the redemption of preferred shares, in Argentina.

 

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 ex
IAS 29

 

% Var ex
IAS 29

Financial Income

 

25.8

 

8.8

 

191.9%

 

-22.2

 

47.9

 

8.7

 

452.3%

Interest income

 

14.3

 

5.6

 

155.7%

 

0.3

 

14.0

 

5.5

 

155.9%

Foreign exchange income

 

7.1

 

0.5

 

1391.8%

 

-22.2

 

29.3

 

0.5

 

5851.1%

Other

 

4.3

 

2.8

 

56.9%

 

-0.3

 

4.7

 

2.7

 

70.6%

Inflation adjustment

 

5.1

 

1.2

 

313.8%

 

3.8

 

1.4

 

0.2

 

684.4%

Inflation adjustment

 

5.1

 

1.2

 

313.8%

 

3.8

 

1.4

 

0.2

 

684.4%

Financial Loss

 

-44.8

 

-15.3

 

193.6%

 

131.7

 

-176.5

 

-74.0

 

138.7%

Interest Expenses

 

-49.1

 

-30.3

 

62.2%

 

-0.1

 

-49.0

 

-29.9

 

64.2%

Foreign exchange transaction expenses

 

40.2

 

39.5

 

1.7%

 

131.8

 

-91.6

 

-19.6

 

366.5%

Changes in liability for concessions

 

-33.0

 

-22.2

 

48.9%

 

-

 

-33.0

 

-22.2

 

48.9%

Other expenses

 

-2.9

 

-2.3

 

25.3%

 

-0

 

-2.9

 

-2.3

 

25.1%

Financial Loss, Net

 

-14.0

 

-5.2

 

168.1%

 

113.3

 

-127.3

 

-65.1

 

95.4%

See "Use of Non-IFRS Financial Measures" on page 22.

Income Tax Expense

During 2Q22, the Company reported an income tax benefit of $13.8 million versus an expense of $22.1 million in 2Q21. Excluding the impact of IAS 29, CAAP reported an income tax benefit of $71.0 million compared to income tax benefits of $83.3 million in the year ago quarter and an expense of $12.1 million in 2Q19. Income tax benefit during the quarter was mainly related to the inflation adjustment on certain deferred tax assets, in Argentina.

Net Income and Net Income Attributable to Owners of the Parent

During 2Q22, CAAP reported a Net Income of $71.6 million compared to a Net Loss of $55.4 million in 2Q21, mainly explained by: (i) operating income of $72.1 million in 2Q22 versus a loss of $27.2 million in 2Q21, and (ii) an income tax benefit of $13.8 million versus an expense of $22.1 million in 2Q21, partially offset by (iii) higher net financial losses.

During 2Q22, the Company reported a Net Income Attributed to Owners of the Parent of $69.9 million and earnings per common share of $0.43, compared with a Net Loss Attributable to Owners of the Parent of $34.0 million in 2Q21 equivalent to a loss per common share of $0.21. Net Income Attributed to Owners of the Parent was 42.2% higher than the $49.1 million, equivalent to earnings per common share of $0.31, reported in 2Q19.

Consolidated Financial Position

As of June 30, 2022, cash and cash equivalents amounted to $334.9 million, decreasing 30.0% and 10.9% from the $478.5 million and $375.8 million reported as of March 31, 2022, and December 31, 2021, respectively. Total liquidity position at June 30, 2022, which included cash and cash equivalents as well as other financial assets, totaled $448.3 million, compared with $646.0 million and $451.1 million as March 31, 2022, and December 31, 2021, respectively.

Total Debt at the close of the second quarter increased 5.6%, or $80.0 million, to $1,519.6 million, from $1,439.6 million as of December 31, 2021. An amount of $1,039.3 million, or 68.4% of total debt is denominated in U.S. dollars, while $228.5 million, or 15.0%, is denominated in Euros, $231.3 million, or 15.2%, is in Brazilian Reals, and $20.5 million, or 1.3%, is in Argentine Pesos.

The Net Debt to LTM Adjusted EBITDA (excluding impairment of intangible assets) ratio stood at 3.53x as of June 2022, down from 7.11x and 5.08x as of December 2021 and March 2022, respectively, reflecting Adjusted EBITDA growth, supported by traffic recovery and tight cost control measures. As of June 30, 2022, all of CAAP's subsidiaries were in compliance with their covenants.

Consolidated Debt Indicators (in US$ million)

 

 

As of Jun 30, 2022

 

As of Dec 31, 2021

Leverage

 

 

 

 

Total Debt / LTM Adjusted EBITDA (Times)1,3

 

4.53x

 

9.64x

Total Net Debt / LTM Adjusted EBITDA (Times) 2,3, 4

 

3.53x

 

7.12x

Total Net Debt / LTM Adjusted EBITDA (Times) 2,3,5

 

3.53x

 

7.11x

Total Debt

 

1,519.6

 

1,439.6

Short-Term Debt

 

216.8

 

421.3

Long-Term Debt

 

1,302.7

 

1,018.3

Cash & Cash Equivalents

 

334.9

 

375.8

Total Net Debt3

 

1,184.7

 

1,063.8

1)

 

The Total Debt to EBITDA Ratio is calculated as CAAP's interest-bearing liabilities divided by its EBITDA.

2)

 

The Total Net Debt to EBITDA Ratio is calculated as CAAP's interest-bearing liabilities minus Cash & Cash Equivalents, divided by its EBITDA.

3)

 

The Total Net Debt is calculated as Total Debt minus Cash & Cash Equivalents.

4)

 

LTM Adjusted EBITDA as of June 30, 2022 was $335.5 million.

5)

 

LTM Adjusted EBITDA excluding impairment of intangible assets as of June 30, 2022 was $335.8 million.

Total Debt by Segment (in US$ million)

 

 

 

 

 

As of Jun 30, 2022

 

As of Dec 31, 2021

Argentina

 

745.9

 

625.3

Italy (1)

 

208.5

 

232.4

Brazil (2)

 

231.3

 

221.8

Uruguay (3)

 

273.1

 

274.1

Armenia

 

40.8

 

63.1

Ecuador

 

20.0

 

22.9

Total

 

1519.6

 

1,439.6

 

1)

 

Of which approximately $147.0 million remain at Toscana Aeroporti level.

2)

 

Of which approximately $214.7 million remain at Inframérica Concessionaria do Aeroporto de Brasilia level.

3)

 

Of which approximately $247.0 million remain at ACI Airport Sudamérica SAU.

Maturity of borrowings:

 

1 year or less

 

1 - 2 years

 

2 ? 5 years

 

Over 5 years

 

Total

Debt service (1)

 

320.4

 

239.0

 

611.1

 

984.7

 

2,155.2

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.

Maturity of borrowings - Breakdown by segment (in USD) as of June 30, 2022:

Segment

 

 

 

Currency

 

1 year or less

 

1 - 2 years

 

2 ? 5 years

 

Over 5 years

 

Total

Argentina

 

Principal

 

USD

 

97.3

 

66.2

 

165.4

 

411.4

 

740.3

 

 

Interest

 

USD

 

48.2

 

44.1

 

113.5

 

73.4

 

279.2

 

 

Principal

 

ARS

 

4.8

 

9.5

 

4.9

 

-

 

19.2

 

 

Interest

 

ARS

 

11.2

 

6.6

 

1.1

 

-

 

18.9

Italy

 

Principal

 

EUR

 

61.4

 

25.2

 

120.9

 

1.5

 

209.0

 

Interest

 

EUR

 

4.6

 

4.4

 

3.0

 

0.0

 

12.0

Brazil

 

Principal

 

R$

 

15.4

 

13.5

 

47.8

 

153.7

 

230.4

 

Interest

 

R$

 

19.5

 

18.4

 

47.3

 

48.2

 

133.3

Uruguay

 

Principal

 

USD

 

5.4

 

6.9

 

46.5

 

226.6

 

285.5

 

Interest

 

USD

 

18.8

 

18.6

 

52.3

 

69.8

 

159.5

Armenia

 

Principal

 

USD

 

12.3

 

9.2

 

-

 

-

 

21.5

 

 

Interest

 

USD

 

1.6

 

0.5

 

-

 

-

 

2.1

 

Principal

 

EUR

 

11.8

 

8.8

 

-

 

-

 

20.6

 

 

Interest

 

EUR

 

1.1

 

0.4

 

-

 

-

 

1.4

Ecuador

 

Principal

 

USD

 

5.8

 

6.0

 

7.9

 

-

 

19.7

 

Interest

 

USD

 

1.1

 

0.8

 

0.5

 

-

 

2.4

Total

     

320.4

 

239.0

 

611.1

 

984.7

 

2,155.2

Cash by Segment (in US$ million)

 

 

 

 

 

 

As of Jun 30, 2022

 

As of Dec 31, 2021

Argentina

 

159.3

 

158.9

Italy (1)

 

50.6

 

66.3

Brazil (2)

 

12.9

 

13.4

Uruguay

 

29.5

 

22.0

Armenia

 

18.2

 

44.7

Ecuador

 

5.8

 

10.8

Intermediate holding Companies

 

58.8

 

59.7

Total

 

334.9

 

375.8

1)

 

Of which approximately $44.9 million remain at Toscana Aeroporti level.

2)

 

Of which approximately $9.7 million remain at Inframérica Concessionaria do Aeroporto de Brasilia level.

CAPEX

During 2Q22, CAAP made capital expenditures of $34.0 million on an ?As reported' basis, a 94.4% YoY increase from $17.5 million in 2Q21 and 69.9% lower than pre-pandemic levels of 2Q19. Around 75% of total CAPEX was allocated to Argentina and 14% to Uruguay.

Review of Segment Results

Argentina

Starting in 3Q18, reported numbers are presented applying Hyperinflation accounting for the Company's Argentinean subsidiaries, in accordance with IAS 29, as explained above. The following table presents the impact from Hyperinflation accounting under the column ?IAS 29', while the columns indicated with "ex IAS 29" present results calculated without the impact from Hyperinflation accounting. The impact of IAS 29 is presented only for AA2000, the Company's largest subsidiary in Argentina, which accounted for over 95% of passenger traffic, revenues and Adjusted EBITDA of the Argentina segment in 2Q22.

 

 

2Q22 as
reported

 

2Q21 as
reported

 

% Var as
reported

 

IAS 29

 

2Q22 ex
IAS 29

 

2Q21 ex
IAS 29

 

% Var ex
IAS 29

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Passengers (in millions) (1)

 

5.5

 

1.3

 

317.2%

 

 

 

5.5

 

1.3

 

317.2%

International Passengers (in millions) (1)

 

1.9

 

0.3

 

589.5%

 

 

 

1.9

 

0.3

 

589.5%

Transit Passengers (in millions) (1)

 

0.3

 

0.1

 

244.6%

 

 

 

0.3

 

0.1

 

244.6%

Total Passengers (in millions) (1)

 

7.7

 

1.7

 

359.5%

 

 

 

7.7

 

1.7

 

359.5%

Cargo Volume (in thousands of tons)

 

47.2

 

44.0

 

7.2%

 

 

 

47.2

 

44.0

 

7.2%

Total Aircraft Movements (in thousands)

 

92.6

 

43.0

 

115.6%

 

 

 

92.6

 

43.0

 

115.6%

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aeronautical Revenue

 

80.6

 

14.4

 

457.5%

 

-0.5

 

81.0

 

14.1

 

473.4%

Non-aeronautical revenue

 

100.8

 

50.0

 

101.7%

 

-1.6

 

102.5

 

49.3

 

107.9%

Commercial revenue

 

76.2

 

45.4

 

67.9%

 

0.4

 

75.8

 

44.1

 

72.0%

Construction service revenue

 

24.6

 

4.7

 

428.3%

 

-2.0

 

26.6

 

5.3

 

405.3%

Total Revenue

 

181.4

 

64.5

 

181.2%

 

-2.1

 

183.5

 

63.5

 

189.0%

Total Revenue Excluding IFRIC12(2)

 

156.7

 

59.8

 

162.0%

 

-0.1

 

156.9

 

58.2

 

169.5%

Cost of Services

 

125.5

 

67.2

 

86.7%

 

14.5

 

111.0

 

55.6

 

99.6%

Selling, general and administrative expenses

 

8.0

 

8.4

 

-5.2%

 

0.7

 

7.3

 

8.2

 

-10.5%

Other expenses

 

0.2

 

0.2

 

3.0%

 

0.0

 

0.2

 

0.2

 

11.1%

Total Costs and Expenses

 

133.7

 

75.9

 

76.2%

 

15.1

 

118.6

 

64.0

 

85.2%

Total Costs and Expenses Excluding IFRIC12(3)

 

109.2

 

71.3

 

53.2%

 

17.1

 

92.0

 

58.8

 

56.5%

Adjusted Segment EBITDA

 

74.0

 

8.9

 

734.1%

 

-0.1

 

74.1

 

8.2

 

800.4%

Adjusted Segment EBITDA Mg

 

40.8%

 

13.8%

 

2,703

 

-

 

40.4%

 

13.0%

 

2,742

Adjusted EBITDA Margin excluding IFRIC 12(4)

 

47.2%

 

14.8%

 

3,238

 

-

 

47.2%

 

14.1%

 

3,311

Capex

 

25.1

 

4.6

 

450.6%

 

-0.5

 

25.5

 

5.3

 

384.2%

1)

 

See Note 1 in Table "Operating & Financial Highlights"

2)

 

Excludes Construction Service revenue.

3)

 

Excludes Construction Service cost.

4)

 

Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.

 

 

6M22 as
reported

 

6M21 as
reported

 

% Var as
reported

 

IAS 29

 

6M22 ex
IAS 29

 

6M21 ex
IAS 29

 

% Var ex
IAS 29

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Passengers (in millions) (1)

 

10.7

 

3.5

 

203.6%

 

 

 

10.7

 

3.5

 

203.6%

International Passengers (in millions) (1)

 

3.6

 

0.7

 

383.3%

 

 

 

3.6

 

0.7

 

383.3%

Transit Passengers (in millions) (1)

 

0.5

 

0.2

 

138.5%

 

 

 

0.5

 

0.2

 

138.5%

Total Passengers (in millions) (1)

 

14.7

 

4.5

 

230.4%

 

 

 

14.7

 

4.5

 

230.4%

Cargo Volume (in thousands of tons)

 

90.3

 

80.2

 

12.6%

 

 

 

90.3

 

80.2

 

12.6%

Total Aircraft Movements (in thousands)

 

174.7

 

92.9

 

88.2%

 

 

 

174.7

 

92.9

 

88.2%

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aeronautical Revenue

 

147.3

 

35.1

 

319.3%

 

2.3

 

145.0

 

33.5

 

332.6%

Non-aeronautical revenue

 

187.0

 

119.6

 

56.3%

 

0.7

 

186.3

 

116.7

 

59.7%

Commercial revenue

 

150.7

 

90.4

 

66.6%

 

3.8

 

146.8

 

86.3

 

70.2%

Construction service revenue

 

36.3

 

29.2

 

24.6%

 

-3.1

 

39.5

 

30.4

 

29.8%

Total Revenue

 

334.3

 

154.7

 

116.0%

 

3.0

 

331.3

 

150.2

 

120.6%

Total Revenue Excluding IFRIC12(2)

 

298.0

 

125.6

 

137.3%

 

6.2

 

291.8

 

119.8

 

143.6%

Cost of Services

 

226.6

 

149.5

 

51.5%

 

32.9

 

193.7

 

125.6

 

54.2%

Selling, general and administrative expenses

 

21.0

 

14.9

 

41.2%

 

1.4

 

19.7

 

14.1

 

39.3%

Other expenses

 

0.6

 

8.9

 

-93.3%

 

0.0

 

0.6

 

8.7

 

-93.1%

Total Costs and Expenses

 

248.2

 

173.3

 

43.2%

 

34.2

 

214.0

 

148.4

 

44.2%

Total Costs and Expenses Excluding IFRIC12(3)

 

212.0

 

144.2

 

47.0%

 

37.3

 

174.7

 

118.1

 

47.9%

Adjusted Segment EBITDA

 

138.2

 

20.2

 

583.6%

 

2.8

 

135.4

 

18.4

 

634.6%

Adjusted Segment EBITDA Mg

 

41.3%

 

13.1%

 

2,827

 

-

 

40.9%

 

12.3%

 

2,859

Adjusted EBITDA Margin excluding IFRIC 12(4)

 

46.3%

 

16.1%

 

3,026

 

-

 

46.3%

 

15.3%

 

3,101

Capex

 

36.3

 

29.2

 

24.6%

 

-1.8

 

38.2

 

30.4

 

25.5%

Passenger Traffic increased 3.6x YoY and improved to 75.8% of pre-pandemic levels, up from the 63.6% posted in the prior quarter. International passenger traffic, which continued to benefit from the full re-opening of borders on November 1, 2021 and the lifting of travel requirements, increased 5.9x YoY in 2Q22 and reached 60.7% of 2Q19 traffic levels, up from 42.6% in 1Q22, showing a continued sequential improvement. Domestic passenger traffic, which accounted for 72% of total traffic in the quarter, increased 3.2x YoY to 83.0% of 2Q19 levels, up from 75.9% posted in 1Q22. Effective April 7, 2022, Covid tests are no longer required, and travelers must complete an affidavit form.

Revenues increased 181.2% YoY to $181.4 million in 2Q22 on an ?As reported' basis or 189.0% to $183.5 million when excluding the impact of rule IAS29, primarily due to a 473.4% increase in Aeronautical revenues as well as a 72.0% increase in Commercial revenues, reflecting higher year-over-year activity and easier passenger traffic comparisons, as 2Q21 was still heavily impacted by the Covid-19 pandemic. In addition, Construction service revenue increased 405.3% YoY as a result of higher Capex in the quarter. When compared to 2Q19 and excluding both Construction Service and the impact of IAS 29, revenues grew by 0.2%, or $0.3 million to $156.9 million, mainly driven by a 22.4% increase in Commercial revenues, which was almost fully offset by a 14.3% decline in Aeronautical revenues.

Total Costs and Expenses increased 76.2% YoY to $133.7 million in 2Q22 on an ?As reported' basis, mainly reflecting increases of 86.7% in Cost of Services, in line with higher year-over-year activity, partially offset by a decline of 5.2% in SG&A. Excluding Construction Service and the impact of IAS 29, Total Cost and Expenses increased 56.5% YoY, due to the rise in operating costs following traffic recovery from the minimum levels posted in the same period of last year. When compared to 2Q19, however, Total Cost and Expenses excluding the impact of rule IAS 29 and Construction Services declined 10.0%, or $10.2 million, primarily due to lower SG&A coupled with a reduction in Cost of Services.

Adjusted Segment EBITDA, which included the accounting of $14.9 million related to outstanding amounts owed by a national carrier, increased 7.3x YoY to $74.0 million in 2Q22 on an ?As reported basis'. When excluding the impact of IAS 29, Adjusted Segment EBITDA was $74.1 million with Adjusted EBITDA margin EX-IFRIC12 of 47.2% in the quarter, compared to 14.1% in 2Q21. Compared to pre-pandemic levels of 2Q19, Adjusted EBITDA excluding IAS 29 increased 10.6%, or $7.1 million from $67.0 million, while Adjusted EBITDA margin EX-IFRIC12 expanded 4.5 percentage points from 42.7%.

During 2Q22, CAAP made Capital Expenditures ex-IAS29 of $25.1 million, compared to $5.3 million in 2Q21 and $86.8 million in 2Q19, mainly related to expansion works at Aeroparque and Ezeiza airports, as well as initial runway works in Posadas and Santa Rosa airports.

Italy

 

 

2Q22

 

2Q21

 

% Var.

 

6M22

 

6M21

 

% Var.

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Passengers (in millions)

 

0.4

 

0.2

 

173.8%

 

0.7

 

0.2

 

252.3%

International Passengers (in millions)

 

1.6

 

0.2

 

837.7%

 

2.1

 

0.2

 

959.7%

Transit Passengers (in millions)

 

0.0

 

0.0

 

692.2%

 

0.0

 

0.0

 

1033.3%

Total Passengers (in millions)

 

2.0

 

0.3

 

513.2%

 

2.8

 

0.4

 

600.3%

Cargo Volume (in thousands of tons)

 

3.7

 

3.7

 

-0.2%

 

7.6

 

7.1

 

7.0%

Total Aircraft Movements (in thousands)

 

20.3

 

6.9

 

194.1%

 

30.4

 

9.1

 

234.5%

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

Aeronautical Revenue

 

21.5

 

5.7

 

277.0%

 

31.4

 

7.7

 

306.6%

Non-aeronautical revenue

 

12.1

 

9.7

 

24.6%

 

19.2

 

15.9

 

20.6%

Commercial revenue

 

8.4

 

3.8

 

122.2%

 

13.5

 

6.7

 

102.4%

Construction service revenue

 

1.8

 

5.6

 

-66.8%

 

3.3

 

8.7

 

-61.5%

Other revenue

 

1.8

 

0.4

 

415.3%

 

2.4

 

0.6

 

314.9%

Total Revenue

 

33.6

 

15.4

 

118.2%

 

50.5

 

23.6

 

114.2%

Total Revenue Excluding IFRIC12(1)

 

31.7

 

9.8

 

222.7%

 

47.2

 

14.9

 

216.0%

Cost of Services

 

26.2

 

20.4

 

28.7%

 

46.2

 

36.5

 

26.7%

Selling, general and administrative expenses

 

4.1

 

3.2

 

27.2%

 

7.3

 

6.1

 

19.7%

Other Expenses

 

0.0

 

0.1

 

-92.4%

 

0.0

 

0.1

 

-92.4%

Total Costs and Expenses

 

30.3

 

23.7

 

28.1%

 

53.5

 

42.7

 

25.5%

Total Costs and Expenses Excluding IFRIC12(2)

 

28.7

 

18.7

 

53.9%

 

50.8

 

35.0

 

45.3%

Adjusted Segment EBITDA

 

5.6

 

-4.4

 

226.9%

 

2.4

 

-12.1

 

119.6%

Adjusted Segment EBITDA Mg

 

16.6%

 

-28.6%

 

4521

 

4.7%

 

-51.1%

 

5578

Adjusted EBITDA Margin excluding IFRIC 12(3)

 

16.8%

 

-50.3%

 

6710

 

3.7%

 

-87.2%

 

9087

Capex

 

1.9

 

9.0

 

-78.8%

 

4.0

 

12.2

 

-68.0%

1

 

Excludes Construction Service revenue.

2

 

Excludes Construction Service cost.

3

 

Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.

Passenger Traffic in Italy increased 5.1x YoY and improved to 84.5% of pre-pandemic levels, up from 56.5% in 1Q22, with continued recovery at both, Florence and Pisa airports. Domestic and international traffic increased by 1.7x and 8.4x YoY, respectively, and stood at 91.7% and 82.7% of 2Q19 levels. Traffic in June benefited from the start of the summer season and from the full lifting of travel restrictions effective June 1, 2022.

Revenues increased 118.2% YoY to $33.6 million in 2Q22, mainly driven by higher Aeronautical revenues, reflecting greater year-over-year activity and easier comparisons against 2Q21, which was significantly impacted by the Covid-19 pandemic. Commercial revenues grew 122.2% YoY, mainly driven by passenger-related services such as Parking facilities, Duty free shops, VIP lounges, and F&B services, following the strong year-over-year traffic recovery. When compared to 2Q19, revenues excluding Construction service declined 13.9%, or $5.1 million, to $31.7 million, principally due to lower passenger traffic impacted by the Covid-19 pandemic.

Total Costs and Expenses increased 28.1% YoY, or $6.7 million, in 2Q22 driven by higher Cost of Services and slightly higher SG&A expenses. Excluding Construction Service, Total Cost and Expenses rose 53.9% YoY to $28.7 million, due to an increase in operating costs following higher airport activity when compared to 2Q21. Compared to the same quarter of 2019, Total Cost and Expenses increased 7.2%, or 8.3% when excluding Construction Services.

Adjusted Segment EBITDA improved to $5.5 million from negative $4.4 million in 2Q21, supported by traffic growth and cost reductions, but contracted from the $13.9 million posted in 2Q19.

During 2Q22, CAAP made Capital Expenditures of $1.9 million, compared to $9.0 million in 2Q21 and $4.7 million in 2Q19.

Brazil

 

 

2Q22

 

2Q21

 

% Var.

 

6M22

 

6M21

 

% Var.

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Passengers (in millions)

 

2.3

 

1.2

 

94.7%

 

4.9

 

2.8

 

72.2%

International Passengers (in millions) (1)

 

0.1

 

0.0

 

768.9%

 

0.2

 

0.0

 

677.1%

Transit Passengers (in millions) (1)

 

0.8

 

0.8

 

2.6%

 

2.1

 

1.8

 

13.7%

Total Passengers (in millions) (1)

 

3.3

 

2.0

 

62.3%

 

7.1

 

4.7

 

52.3%

Cargo Volume (in thousands of tons)

 

14.2

 

16.4

 

-13.5%

 

28.2

 

30.1

 

-6.5%

Total Aircraft Movements (in thousands)

 

33.5

 

21.8

 

53.3%

 

67.2

 

48.1

 

39.6%

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

Aeronautical Revenue

 

8.2

 

4.0

 

104.0%

 

16.3

 

8.9

 

83.9%

Non-aeronautical revenue

 

12.4

 

7.5

 

64.8%

 

25.0

 

15.2

 

64.9%

Commercial revenue

 

12.4

 

7.5

 

64.8%

 

25.0

 

15.2

 

64.9%

Total Revenue

 

20.5

 

11.5

 

78.4%

 

41.3

 

24.0

 

71.9%

Cost of Services

 

18.6

 

14.5

 

28.5%

 

34.6

 

28.9

 

19.7%

Selling, general and administrative expenses

 

2.6

 

2.7

 

-1.4%

 

6.6

 

5.2

 

26.3%

Other expenses

 

0.1

 

1.1

 

-93.9%

 

0.4

 

1.5

 

-74.3%

Total Costs and Expenses

 

21.3

 

18.2

 

17.0%

 

41.5

 

35.5

 

16.8%

Adjusted Segment EBITDA

 

1.9

 

-7.0

 

127.5%

 

5.3

 

-9.4

 

156.2%

Adjusted Segment EBITDA Mg

 

9.4%

 

-61.0%

 

7033

 

12.8%

 

-39.2%

 

5200

Capex

 

0.5

 

0.3

 

57.6%

 

0.9

 

0.7

 

34.9%

Note: This segment does not include the effects of IFRIC 12 with respect to the construction or improvements to assets under the concession.

1)

 

Preliminary data on 1,256 in January and 195 in February 2020 at Brasilia Airport, due to delays in the submission of information by third parties. Moreover, starting November 2019 the Company has reclassified its passenger traffic figures for Brasilia Airport between international, domestic and transit retroactively since June 2018 to return to the count methodology utilized until May 2018. Notwithstanding, total traffic figures remain unchanged.

Passenger Traffic grew 62.3% YoY, reaching 76.4% of 2Q19 pre-pandemic levels, slightly below the 77.3% posted in the prior quarter. Domestic passenger traffic was up 94.7% YoY and reached nearly 90% of 2Q19 levels, while transit passengers increased 2.6% YoY to 54.8% of 2Q19 traffic. Traffic in the quarter was impacted by weaker travel demand as a result of rising fuel prices adding pressure on airfares.

Revenues increased 78.4% YoY to $20.5 million in 2Q22 due to higher aeronautical and commercial revenues reflecting higher year-over-year activity as 2Q21 was impacted by the Covid-19 pandemic. When compared to 2Q19, revenues declined 27.8%, or $7.9 million, mainly reflecting lower aeronautical and commercial activities resulting from the drop in passenger traffic, and to a lesser extent, the 25.6% average depreciation of the Brazilian real against the US dollar since 2Q19.

Total Costs and Expenses increased 17.0% YoY to $21.3 million but declined 24.8% against pre-pandemic levels of 2Q19.

Adjusted Segment EBITDA improved to $1.9 million compared to negative $7.0 million in the year ago period, supported by traffic growth and tight cost control. Compared to 2Q19, Adjusted EBITDA decreased by 36.8% with Adjusted EBITDA margin contracting 1.3 percentage points to 9.4%.

During 2Q22, CAAP made Capital Expenditures for $0.5 million, compared with $0.3 million in 2Q21 and $0.8 million in 2Q19.

Uruguay

 

 

2Q22

 

2Q21

 

% Var.

 

6M22

 

6M21

 

% Var.

OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Passengers (in millions)

 

0.0

 

0.0

 

37.3%

 

0.0

 

0.0

 

149.1%

International Passengers (in millions)

 

0.3

 

0.1

 

528.9%

 

0.6

 

0.1

 

573.3%

Transit Passengers (in millions)

 

0.0

 

0.0

 

2562.7%

 

0.0

 

0.0

 

1612.9%

Total Passengers (in millions)

 

0.3

 

0.1

 

529.7%

 

0.6

 

0.1

 

573.7%

Cargo Volume (in thousands of tons) (1)

 

10.0

 

8.9

 

12.4%

 

17.0

 

15.1

 

12.8%

Total Aircraft Movements (in thousands)

 

6.3

 

3.2

 

97.9%

 

13.9

 

5.5

 

150.0%

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

Aeronautical Revenue

 

10.3

 

2.1

 

398.6%

 

21.3

 

3.9

 

449.9%

Non-aeronautical revenue

 

13.1

 

8.9

 

46.4%

 

26.6

 

15.8

 

68.7%

Commercial revenue

 

11.8

 

6.9

 

71.5%

 

24.8

 

13.3

 

87.1%

Construction service revenue

 

1.2

 

2.0

 

-39.6%

 

1.8

 

2.5

 

-27.9%

Total Revenue

 

23.3

 

11.0

 

112.5%

 

47.9

 

19.7

 

143.9%

Total Revenue Excluding IFRIC12(2)

 

22.1

 

9.0

 

146.5%

 

46.1

 

17.1

 

169.1%

Cost of Services

 

13.2

 

11.5

 

14.3%

 

24.3

 

20.8

 

16.9%

Selling, general and administrative expenses

 

3.8

 

1.9

 

95.9%

 

6.9

 

3.8

 

80.9%

Other expenses

 

0.2

 

0.0

 

659.6%

 

0.3

 

0.0

 

491.1%

Total Costs and Expenses

 

17.2

 

13.5

 

27.4%

 

31.5

 

24.7

 

27.6%

Total Costs and Expenses Excluding IFRIC12(3)

 

16.0

 

11.5

 

39.1%

 

29.7

 

22.2

 

33.9%

Adjusted Segment EBITDA

 

7.6

 

0.7

 

1047.3%

 

19.6

 

1.5

 

1191.3%

Adjusted Segment EBITDA Mg

 

32.6%

 

6.0%

 

2657

 

40.9%

 

7.7%

 

3316

Adjusted EBITDA Margin excluding IFRIC 12 (4)

 

34.4%

 

7.4%

 

2700

 

42.5%

 

8.9%

 

3364

Capex

 

4.8

 

3.0

 

61.4%

 

5.7

 

3.7

 

51.8%

1)

 

Cargo volumes in Uruguay were rectified from January to June 2020, to reflect all cargo passing through the cargo terminal, instead of air cargo only.

2)

 

Excludes Construction Service revenue.

3)

 

Excludes Construction Service cost.

4)

 

Excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession, and is calculated by dividing EBITDA by total revenues less Construction Service revenue.

In Uruguay, where traffic is largely international, passenger traffic increased 5.3x YoY, reaching 65.1% of 2Q19 levels, up from 50.3% recorded in 1Q22, reflecting an ongoing recovery after the re-opening of borders on November 1, 2021, and the gradual relaxation of travel requirements.

Revenues increased 112.5% YoY to $23.3 million in 2Q22 on an ?As reported' basis, or 146.5% when excluding Construction service revenue. Compared to 2Q19, and excluding IFRIC12, revenues declined 17.7%, or $4.8 million, to $22.1 million, primarily due to lower passenger traffic in the quarter.

Total Costs and Expenses increased 27.4% YoY to $17.2 million. Excluding Construction Service, Total Cost and Expenses rose 39.1% YoY to $16.0 million, due to an increase in operating costs following higher traffic activity when compared to 2Q21. By contrast, against the same quarter in 2019, Total Cost and Expenses excluding IFRIC12 declined 6.9%, or $1.2 million, primarily due to lower operating expenses, further supported by local currency depreciation against the US dollar.

Adjusted Segment EBITDA increased 10.5x YoY to $7.6 million in 2Q22, but declined 37.4%, or $4.5 million, when compared to 2Q19, with Adjusted EBITDA Margin Ex IFRIC12 contracting 10.8 percentage points to 34.4%.

During 2Q22, CAAP made Capital Expenditures of $4.8 million in Uruguay, compared to $3.0 million in 2Q21 and $5.3 million in 2Q19.

Key Quarter Highlights and Subsequent Events

AA2000 | Preferred Shares

On February 25, 2022, the Board of Directors of AA2000 resolved to redeem all the 910,978,514 outstanding preferred shares for a total redemption value of AR$17,225,719,240. On April 12, 2022, the Company made an initial payment of AR$11,100,000,000, and a second payment of AR$5,070,000,000 (approximately $40.5 million) was made on July 8, 2022.

AA2000 | Indebtedness and Issuance of New Notes

On July 8, 2022, AA2000 issued $20 million of dollar-linked Class 7 Notes, in the local market, at a 0% interest rate, maturing July 2025.

On July 14, 2022, AA2000 prepaid the outstanding amount of the onshore and offshore loans denominated in ARS, for ARS 2,180.5 million, equivalent to approximately $17.4 million.

Additionally, on July 29, 2022, AA2000 obtained a loan from Industrial and Commercial Bank of China, Dubai branch, for a total amount of $10 million. The loan will be repaid in three installments to be made in March, June and September 2025.

Finally, on August 8, 2022, the Board of Directors of AA2000 approved the issuance of single Notes (not convertible into shares) for up to $60 million. On August 16, 2022, AA2000 concluded the bidding of Class 9 Dollar-linked Notes for a nominal value of $30 million at a 0% interest rate. The maturity will be forty-eight months after the issuance date.

Puerta del Sur (PDS, Uruguay) | Concession Agreement

On July 22, 2022, the International Airport of Salto "Nueva Hespérides" was taken over by PDS, according to the conditions established in the concession agreement amended on November 8, 2021.

For further information on subsequent events, please refer to Note 20 of the Company's Financial Statements, filed with the SEC on Form 6-K.

Hyperinflation Accounting in Argentina

Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS. Consequently, starting July 1, 2018, the Company reports results of its Argentinean subsidiaries applying IFRS rule IAS 29. IAS 29 requires that results of operations in hyperinflationary economies are reported as if these economies were highly inflationary as of January 1, 2018, and thus year-to-date results should be restated adjusting for the change in general purchasing power of the local currency, using official indices, before converting the local amounts at the closing rate of the period (i.e. December 31, 2019 closing rate for 2019 results). For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000 ("AA2000"), the Company's largest subsidiary in Argentina, which accounted for over 95% of passenger traffic, revenues and Adjusted EBITDA, respectively, of the Argentina segment in 3Q21, is presented separately in each of the applicable sections of this earnings release, in a column denominated "IAS 29".

2Q22 EARNINGS CONFERENCE CALL

When:

 

10:00 a.m. Eastern Time, August 19, 2022

Who:

 

Mr. Martín Eurnekian, Chief Executive Officer

 

 

Mr. Jorge Arruda, Chief Financial Officer

 

 

Mr. Patricio Iñaki Esnaola, Head of Investor Relations

Dial-in:

 

1-646-904-5544 (U.S. Local); 1-226-828-7575 (Canada, Local); +1-929-526-1599 (Intern.). Participant access code: 872650

Webcast:

 

https://events.q4inc.com/attendee/714626731

Replay:

 

1-929-458-6194 (U.S. Local); 1-226-828-7578 (Canada, Local); +44-204-525-0658 (Intern.). Replay access code: 793137

Use of Non-IFRS Financial Measures

This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt:

Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.

Adjusted EBITDA excluding Construction Service ("Adjusted EBITDA ex-IFRIC") is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization.

Adjusted EBITDA Margin excluding Construction Service ("Adjusted EBITDA Margin ex-IFRIC12") excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor's understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services (when applicable).

Net debt is calculated by deducting "Cash and cash equivalents" from total financial debt.

Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company's largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated "IAS 29". The impact from "Hyperinflation Accounting in Argentina" is described in more detail page 22 of this report.

Definitions and Concepts

Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers' revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services.

Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%.

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport concessions. The Company is a leading private airport operator in the world, currently operating 53 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2021, Corporación América Airports served 35.7 million passengers, 57.6% lower than the 84.2 million served prior to the pandemic, in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker "CAAP". For more information, visit http://investors.corporacionamericaairports.com

Forward Looking Statements

Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "believes," "continue," "could," "potential," "remain," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: the Covid-19 impact, delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU or the AMD against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the ?Cautionary Statement' and the ?Risk Factor' sections of our annual report on Form 20-F for the year ended December 31, 2019 and any of CAAP's other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences.


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