Exhibit 99.2
Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format
Index
Glossary | |
Separate Condensed Interim Financial Statements | |
Separate Statements of Comprehensive Income | |
Separate Statements of Financial Position | |
Separate Statements of Changes in Equity | |
Separate Statements of Cash Flows | |
Notes to the Separate Condensed Interim Financial Statements | |
Report of Revision on the Separate Condensed Interim Financial Statements | |
Report of the Supervisory Commission |
Glossary
Term | Definition |
$ | Argentine peso |
U$S | US dollar |
EUR | Euro |
The company | Aeropuertos Argentina 2000 S.A. |
AFIP | Federal Public Revenue Administration |
BCRA | Acronym for Central Bank of Argentine Republic |
BAN | Bank of Argentine Nation |
OG | Official Gazette |
BOPREAL | Bonds for the Reconstruction of a Free Argentina |
CAAP | Corporación América Airports S.A. |
IFRIC | Committee on Interpretations of International Financial Reporting Standards |
CNV | National Securities Commission |
CPCECABA | Professional Council of Economic Sciences of the Autonomous City of Buenos Aires |
FACPCE | Argentine Federation of Professional Councils of Economic Sciences |
IASB | Acronym for International Accounting Standards Board |
IATA | Acronym for International Air Transport Association |
COUNTRY Tax | Tax for an Inclusive and Solidary Argentina |
INDEC | Acronym for National Institute of Statistics and Censuses |
IPC | Consumer Price Index (General Level) |
MULC | Acronym for Free Exchange Market |
IAS | International Accounting Standards |
IFRS | International Financial Reporting Standards |
ICAO | International Civil Aviation Organization |
NO | Negotiable Obligations |
ORSNA | Acronym for Regulatory Body of the National Airport System |
PEN | National Executive Power |
PFIE | Financial Projection of Income and Expenses |
PP&E | Property , Plant & Equipment |
RECPAM | Result from Exposure to Changes in the Purchasing Power of the Currency |
NAS | National Airport System |
N.A.R | Nominal annual interest rate |
OT | Ordered Text |
Registration number with the Superintendency of Corporations: 1645890
Honduras 5663 – Autonomous City of Buenos Aires
Principal activity of the Company: Exploitation, administration and operation of airports.
Company name: Aeropuertos Argentina 2000 S.A.
Separate Condensed Interim Financial Statements
For the three-month period of the
Fiscal Year N° 27 commenced January 1, 2024
Date of registration with the Public Registry of Commerce:
Of the By-laws: February 18, 1998
Of the last modification of the By-laws: January 03, 2023
Expiration date of the company: February 17, 2053
Controlling Company:
Corporate Name: Corporación América S.A.
Legal Address: Honduras 5673 – Autonomous City of Buenos Aires
Principal activity: Investments and financing
Participation of the Parent Company in common stock and total votes: 45,90%
Capital breakdown (Note 14):
Issued Common Shares of N/V $1 and 1 vote each:
Subscribed | Paid-in | |||||||
$ | ||||||||
79,105,489 Class "A" Shares | 79,105,489 | 79,105,489 | ||||||
79,105,489 Class "B" Shares | 79,105,489 | 79,105,489 | ||||||
61,526,492 Class "C" Shares | 61,526,492 | 61,526,492 | ||||||
38,779,829 Class "D" Shares | 38,779,829 | 38,779,829 | ||||||
258,517,299 | 258,517,299 |
1
Separate Statement of Comprehensive Income
For the three month, periods ended at March 31, 2024 and 2023
Three months at | ||||||||||||
03.31.2024 | 03.31.2023 | |||||||||||
Note | Millions of $ | |||||||||||
Continuous Operations | ||||||||||||
Sales income | 3 | 188,619 | 158,244 | |||||||||
Construction income | 28,672 | 23,612 | ||||||||||
Cost of service | 4.1 | (103,228 | ) | (90,687 | ) | |||||||
Construction costs | (28,620 | ) | (23,589 | ) | ||||||||
Income for gross profit for the period | 85,443 | 67,580 | ||||||||||
Distribution and selling expenses | 4.2 | (10,791 | ) | (9,194 | ) | |||||||
Administrative expenses | 4.3 | (6,960 | ) | (6,152 | ) | |||||||
Other income and expenses, net | 5.1 | 3,350 | 3,530 | |||||||||
Operating profit for the period | 71,042 | 55,764 | ||||||||||
Finance Income | 5.2 | (65,813 | ) | 1,647 | ||||||||
Finance Costs | 5.3 | 255,049 | 3,990 | |||||||||
Result from exposure to changes in the purchasing power of the currency | (13,579 | ) | (2,805 | ) | ||||||||
Result of investments accounted for by the equity method | (715 | ) | (55 | ) | ||||||||
Income before income tax | 245,984 | 58,541 | ||||||||||
Income tax | 5.4 | (94,949 | ) | (27,944 | ) | |||||||
Income for the period for continuous operations | 151,035 | 30,597 | ||||||||||
Net Income for the period | 151,035 | 30,597 | ||||||||||
Other comprehensive income | - | - | ||||||||||
Comprehensive Income for the period | 151,035 | 30,597 | ||||||||||
Income per share basic and diluted attributable to shareholders of the Company during the period (shown in $ per share) from continuous operations | 584.2356 | 118.3557 |
The accompanying notes are an integral part of these Separate Condensed Interim Financial Statements, which must be read in conjunction with the audited Annual Separate Financial Statements corresponding to the year ended December 31, 2023.
2
Separate Statements of Financial Position
At March 31, 2024 and December 31, 2023
03.31.2024 | 12.31.2023 | |||||||||||
Note | Millions of $ | |||||||||||
Assets | ||||||||||||
Non- Current Assets | ||||||||||||
Investments accounted for by the equity method | 6 | 1,752 | 2,467 | |||||||||
Intangible Assets | 7 | 1,357,354 | 1,346,046 | |||||||||
Rights of use | 4,394 | 4,818 | ||||||||||
Other receivables | 22,909 | 28,109 | ||||||||||
Investments | 48,890 | 66,152 | ||||||||||
Total Non-Current Assets | 1,435,299 | 1,447,592 | ||||||||||
Current Assets | ||||||||||||
Other receivables | 9.1 | 7,828 | 6,782 | |||||||||
Trade receivables, net | 9.2 | 57,389 | 68,454 | |||||||||
Investments | 9.3 | 26,229 | 37,070 | |||||||||
Cash and cash equivalents | 9.4 | 86,811 | 110,916 | |||||||||
Total Current Assets | 178,257 | 223,222 | ||||||||||
Total Assets | 1,613,556 | 1,670,814 | ||||||||||
Shareholders’ Equity and Liabilities | ||||||||||||
Equity attributable to majority shareholders | ||||||||||||
Common shares | 259 | 259 | ||||||||||
Share Premium | 137 | 137 | ||||||||||
Capital adjustment | 97,170 | 97,170 | ||||||||||
Legal and facultative reserve | 570,278 | 570,227 | ||||||||||
Retained earnings | 165,489 | 14,454 | ||||||||||
Subtotal | 833,333 | 682,247 | ||||||||||
Liabilities | ||||||||||||
Non-Current Liabilities | ||||||||||||
Provisions and other charges | 11 | 8,514 | 9,424 | |||||||||
Financial debts | 8 | 488,043 | 771,057 | |||||||||
Deferred income tax liabilities | 142,394 | 47,445 | ||||||||||
Lease liabilities | 3,248 | 5,396 | ||||||||||
Accounts payable and others | 9.5 | 933 | 1,435 | |||||||||
Total Non- Current Liabilities | 643,132 | 834,757 | ||||||||||
Current Liabilities | ||||||||||||
Provisions and other charges | 11 | 18,289 | 26,068 | |||||||||
Financial debts | 8 | 45,003 | 31,606 | |||||||||
Lease liabilities | 2,256 | 3,265 | ||||||||||
Accounts payable and others | 9.5 | 63,331 | 82,261 | |||||||||
Fee payable to the Argentine National Government | 10 | 8,212 | 10,610 | |||||||||
Total Current Liabilities | 137,091 | 153,810 | ||||||||||
Total Liabilities | 780,223 | 988,567 | ||||||||||
Total Shareholder’s Equity and Liabilities | 1,613,556 | 1,670,814 |
The accompanying notes are an integral part of these Separate Condensed Interim Financial Statements, which must be read in conjunction with the audited Annual Separate Financial Statements corresponding to the year ended December 31, 2023.
3
Separate Statements of Changes in Equity
At March 31, 2024 and 2023
Attributable to majority shareholders | |||||||||||||||||||||||||
Common Shares | Share Premium | Adjustment of capital | Legal Reserve | Facultative Reserve | Other Reserves | Retained Earnings | Total | ||||||||||||||||||
Millions of $ | |||||||||||||||||||||||||
Balance at 01.01.24 | 259 | 137 | 97,170 | 19,382 | 548,080 | 2,765 | 14,454 | 682,247 | |||||||||||||||||
Compensation plan | - | - | - | - | - | 51 | - | 51 | |||||||||||||||||
Net Income for the period | - | - | - | - | - | - | 151,035 | 151,035 | |||||||||||||||||
Balance at 03.31.2024 | 259 | 137 | 97,170 | 19,382 | 548,080 | 2,816 | 165,489 | 833,333 | |||||||||||||||||
Balance at 01.01.23 | 259 | 137 | 96,560 | 16,336 | 459,891 | 2,406 | 87,672 | 663,261 | |||||||||||||||||
Compensation plan | - | - | - | - | - | 75 | - | 75 | |||||||||||||||||
Net Income for the period | - | - | - | - | - | - | 30,597 | 30,597 | |||||||||||||||||
Balance at 03.31.2023 | 259 | 137 | 96,560 | 16,336 | 459,891 | 2,481 | 118,269 | 693,933 |
The accompanying notes are an integral part of these Separate Condensed Interim Financial Statements, which must be read in conjunction with the audited Annual Separate Financial Statements corresponding to the year ended December 31, 2023.
4
Separate Statements of Cash Flow
For the three-month periods ended at March 31, 2024 and 2023
03.31.2024 | 03.31.2023 | ||||||||||
Note | Millions of $ | ||||||||||
Cash Flows from operating activities | |||||||||||
Net income for the period | 151,035 | 30,597 | |||||||||
Adjustment for: | |||||||||||
Income tax | 94,949 | 27,944 | |||||||||
Amortization of intangible assets | 4/7 | 17,364 | 16,594 | ||||||||
Depreciation right of use | 4 | 425 | 720 | ||||||||
Bad debts provision | 4 | 653 | 656 | ||||||||
Specific allocation of accrued and unpaid income | 8,212 | 8,007 | |||||||||
Income of investments accounted for by the equity method | 6 | 715 | 55 | ||||||||
Compensation plan | 51 | 75 | |||||||||
Accrued and unpaid financial debts interest costs | 8 | 12,055 | 9,898 | ||||||||
Accrued deferred revenues and additional consideration | 11 | (2,770 | ) | (2,307 | ) | ||||||
Accrued and unpaid Exchange differences | (198,133 | ) | (12,012 | ) | |||||||
Litigations provision | 11 | 263 | 240 | ||||||||
Inflation Adjustment | (24,094 | ) | (13,427 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||
Changes in trade receivables | (43,736 | ) | (11,364 | ) | |||||||
Changes in other receivables | (23,441 | ) | (3,136 | ) | |||||||
Changes in commercial accounts payable and others | 46,772 | 6,112 | |||||||||
Changes in provisions and other charges | 2,006 | (6,305 | ) | ||||||||
Changes in specific allocation of income to be paid to the Argentine National State | (2,217 | ) | (10,814 | ) | |||||||
Increase of intangible assets | (28,672 | ) | (23,612 | ) | |||||||
Net cash Flow generated by operating activities | 11,437 | 17,921 | |||||||||
Cash Flow for investing activities | |||||||||||
Acquisition of investments | (5,987 | ) | - | ||||||||
Collection of investments | 1,567 | 4 | |||||||||
Net Cash Flow (applied to) / generated by investing activities | (4,420 | ) | 4 | ||||||||
Cash Flow from financing activities | |||||||||||
New Financial debts | 8 | - | 5,299 | ||||||||
Payment of leases | (660 | ) | (562 | ) | |||||||
Financial debts paid- principal | 8 | (20,864 | ) | (14,552 | ) | ||||||
Financial debts paid- interests | 8 | (10,695 | ) | (11,667 | ) | ||||||
Net Cash Flow applied to financing activities | (32,219 | ) | (21,482 | ) | |||||||
Net decrease in cash and cash equivalents | (25,202 | ) | (3,557 | ) | |||||||
Changes in cash and cash equivalents | |||||||||||
Cash and cash equivalents at the beginning of the period | 110,916 | 120,674 | |||||||||
Net decrease in cash and cash equivalents | (25,202 | ) | (3,557 | ) | |||||||
Inflation adjustment generated by cash and cash equivalents | 26,187 | 14,878 | |||||||||
Foreign Exchange differences by cash and cash equivalents | (25,090 | ) | (3,156 | ) | |||||||
Cash and cash equivalents at the end of the period | 86,811 | 128,839 |
The accompanying notes are an integral part of these Separate Condensed Interim Financial Statements, which must be read in conjunction with the audited Annual Separate Financial Statements corresponding to the year ended December 31, 2023.
5
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format
NOTE 1 – COMPANY ACTIVITIES
Aeropuertos Argentina 2000 S.A was incorporated in 1998, after the consortium of companies won the national and international bid for the concession rights for the use, management and operation of the “A” Group of the Argentine National Airport System. “A” Group includes 33 airports that operate in Argentina (the “Concession”).
Currently, with the incorporation into Group A of the SNA of the airports of El Palomar (by Decree No. 1107/17) and Rio Hondo (by Resolution ORSNA No. 27/21 Decree), the Company has the concession rights for the operation, administration and operation of 35 airports.
The Concession was granted through the Concession Agreement entered into between the Argentine National State and the Company, dated February 9, 1998. The Concession Agreement was modified and supplemented by the Agreement of Adequacy of the Concession Contract signed between the Argentine National State and the Company, dated April 3, 2007 approved by Decree No. 1799/07 (hereinafter the Memorandum of Agreement) and by Decree No. 1009/20 dated December 16, 2020, which approves the 10-year extension of the initial completion period of the Concession (which operated on February 13, 2028) maintaining exclusivity under the terms established in the Technical Conditions for the Extension (hereinafter the Technical Conditions for the Extension).
Hereinafter, the Concession Agreement will be referred to, as modified and supplemented by the memorandum of Agreement and by the Technical Conditions for the Extension, as the Concession Agreement.
By virtue of the provisions of the Technical Conditions for the Extension, the concession completion period is February 13, 2038 and the exclusivity provided in clauses 3.11 and 4.1 of the Concession Agreement will be maintained with the following exceptions: (i) The zones of influence in the interior of the country are canceled, but not in the area of the Metropolitan Region of Buenos Aires (RMBA) made up of the Ezeiza, Aeroparque, San Fernando and Palomar airports (ii) the exclusivity in the areas of influence will be maintained throughout the national territory for the activity of fiscal warehouses (iii) the exclusivity and from the area of influence for the realization of new airport infrastructure projects in the Rio de la Plata promoted by the National Public Sector, when due to its characteristics it cannot be financed and operated by the Company.
In September 2021, based on the detrimental effects that the COVID-19 pandemic had on air traffic, the ORSNA approved through Resolution N° 60/21 the postponement to December 2022 of the following commitments:
(i) | programming of funds for works and rescue of preferred shares $ 406.5 million and |
(ii) | regularization of the specific allocation of income owed for 2020. |
To date, the Company has complied with these commitments.
The ORSNA deferred until June 2023 the adjustment necessary to balance the financial projection of income and expenses. On July 28, 2023, the ORSNA notified the issuance of Resolution RESFC-2023-56-APN-ORSNA#MTR by which it decided to approve the conditions and conclusions established in the Report prepared by the ECONOMIC and FINANCIAL REGULATION MANAGEMENT referring to the Review of the Financial Projection of Income and Expenses (PFIE) of the Concession of Group “A” of the National Airport System corresponding to the period 2019-2023, which provides that its conclusion will be carried out at the time of verifying the recovery of the international passenger traffic at values similar to 2019.
6
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 1 – COMPANY ACTIVITIES (Contd.)
By virtue of this, the Company made a judicial presentation (AEROPUERTOS ARGENTINA 2000 SA C/ ORSNA - RES 56/23 S/PROCESO DE CONOCIMIENTO) within the framework of the agreements entered into in File 56.695/2019.
Within the framework of what was resolved by Resolution RESFC-2023-56-APN-ORSNA#MTR, and within the review process corresponding to the period 2018-2022, the ORSNA issued resolutions RESFC-2023-65-APN-ORSNA#MTR and RESFC-2023-66-APN-ORSNA#MTR. The Company filed an appeal for reconsideration against said resolutions and requested the suspension of their effects.
On November 27, 2023, ORSNA and the Company signed a Minute by which they agreed: (i) to suspend the ongoing procedural deadlines until June 30, 2024, (ii) that the Company must contract at its own expense a passenger traffic consulting study; (iii) postpone until May 30, 2024 the ordinary annual review of the PFIE of the Concession, corresponding to all periods until December 31, 2023.
To date, the Company has fulfilled the commitments assumed.
Furthermore, under the terms of the concession contract, the National State has the right to rescue the Concession as of February 13, 2018. In the event that the National State decides to rescue the Concession, it must pay the Company compensation.
NOTE 2 – ACCOUNTING POLICIES
These Separate Condensed Interim Financial Statements of the Company are presented in millions of Argentine pesos, except for share data or when otherwise indicated. All amounts are rounded to millions of Argentine pesos unless otherwise indicated. As such, non-significant rounding differences may occur. A dash (“-”) indicates that no data was reported for a specific line item in the relevant financial year or period or when the relevant information figure, after rounding, amounts to zero. The Company’s Board of Directors approved them for issuance on May 8, 2024.
The CNV, through article 1 of Chapter III of Title IV of the CNV Standards (N.T. 2013 and mod.), has established the application of Technical Resolution No. 26 (and its modifications) of the FACPCE, that adopt the IFRS accounting standards, issued by the IASB, for entities included in the public offering regime, either for their capital or for their negotiable obligations, or that have requested authorization to be included in the aforementioned regime.
7
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 2 – ACCOUNTING POLICIES (Contd.)
Application of those standards is mandatory for the Company as from the fiscal year beginning on January 1 2012. Therefore, the transition date, as established in the IFRS 1 “First Time Adoption of the IFRS” was January 1, 2011.
These Separate Interim Financial Statements of the Company for the three-month period ended March 31, 2024 are presented based on the application of the guidelines established in IASB No. 34 “Intermediate Financial Information”. Therefore, they must be read together with the company's consolidated condensed Interim Financial Statements at March 31, 2023 (the “Condensed Consolidated Interim Financial Statements”) and the annual separate and consolidated financial statements as of December 31, 2023 prepared in accordance with IFRS, as issued by the IASB and IFRIC Interpretations. (IFRIC for its acronym in English).
1) Comparative Information
The information included in these financial statements was extracted from the Separate Condensed Interim Financial Statements of AA2000 as of March 31, 2023 and the Consolidated Financial Statements at December 31, 2023, timely approved by the Company’s Board and Shareholders and restated at the closing currency at March 31, 2024, based on the application of IASB 29 (see Note 3.7).
2) Controlled Companies
Controlled Companies are all the entities where the Company has the power to control operating and financial policies, generally with a controlling share over 50%. At the moment of determining if the Company controls an entity the existence and the impact of potential voting rights that could be exercised or converted are taken into account. The controlled companies are consolidated as from the date the control is transferred and excluded from the date such control ceases.
The accounting policies of subsidiaries have been modified, where necessary, to ensure the uniformity with the Company policies.
8
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 2 – ACCOUNTING POLICIES (Contd.)
At March 31, 2024, the Company has participation in the following controlled companies (hereafter the Group):
Controlled (1) | Number of common shares | Participation in capital and possible votes | Net Shareholders ‘equity at closing | Income for the period | Book entry 03.31.2024 | |||||||||||||||
Millions of $ | ||||||||||||||||||||
Servicios y Tecnología Aeroportuarios S.A. (2) | 14,398,848 | 99.30 | % | 1,688 | (942 | ) | 1,675 | |||||||||||||
Cargo & Logistics SA. | 1,614,687 | 98.63 | % | 1 | - | 1 | ||||||||||||||
Paoletti América S.A. | 100,000 | 100.00 | % | 34 | 34 | 34 | ||||||||||||||
Texelrío S.A. (3) | 6,000 | 50.00 | % | - | - | - | ||||||||||||||
Villalonga Furlong S.A (4) | 84,000 | 70.00 | % | 60 | 193 | 42 | ||||||||||||||
Servicios y Tecnología Aeroportuarios S.A. (2) | 56,852 | 1.46 | % | 3 | - | - |
(1) | Companies based in Argentina. |
(2) | Includes adjustments under IFRS for the preparation and presentation of the corresponding financial statements. |
(3) | The Company directly and indirectly owns 98.53% of the capital stock and votes of this entity. |
3) Segment Information
The Company is managed as a single unit. It does not evaluate the performance of the airports on a standalone basis but considering all airports as a whole. Therefore, for the purposes of segment information, there is only one business segment.
The Argentine National Government granted the Company the concession of the “A” Group airports of the National Airports System under the basis of “cross-subsidies”: i.e., the income and funds generated by some of the airports should subsidize the liabilities and investments of the remaining airports, in order for all airports to be compliant with international standards as explained below.
All airports must comply with measures of operative efficiency which are independent from the revenues and funds they generate. All works performed must follow international standards established by the respective agencies (IATA, OACI, etc.).
Revenues of the company comprise non-aeronautical revenues and aeronautical revenues; the latter being the tariffs determined by the ORSNA and regulated on the basis of the review of the Financial Projection of Income and Expenses in order to verify and preserve the equilibrium of the variables on which it was originally based.
The investment decisions are assessed and made with the ORSNA based on the master plans of the airports considering the needs of each airport on the basis of expected passenger flow and air traffic, in the framework of the standards previously mentioned.
4) Accounting policies
The collection policies adopted for these interim financial statements are consistent with those used in the Separate Financial Statements as of December 31, 2023.
9
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 2 – ACCOUNTING POLICIES (Contd.)
5) Changes in accounting policies and disclosures
There were no additional changes in the Group's accounting policies based on the effective application standard issued by the IASB as of January 1, 2024.
6) Estimates
The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise its judgment in the process of applying the Group accounting policies.
In the preparation of these Financial Statements the significant areas of judgement by management in the application of the Company’s accounting policies and the main areas of assumptions and estimates are consistently as those applied in the Financial Statements for the year ended December 31, 2023.
7) Foreign currency conversion and financial information in hyperinflationary economies
Functional and presentation currency
The figures included in these financial statements were measured using their functional currency, that is, the currency of the primary economic environment in which the Company operates. The functional currency of the Company is the Argentine peso, which is the same as the presentation currency of the financial statements.
IAS 29 "Financial information in hyperinflationary economies" requires that the financial statements of an entity whose functional currency is that of a hyperinflationary economy be expressed in terms of the current unit of measurement at the reporting date of the reporting period, regardless of whether they are based on the historical cost method or the current cost method. For this, in general terms, inflation produced from the date of acquisition or from the revaluation date, as applicable, must be computed in the non-monetary items.
These requirements also correspond to the comparative information of these Consolidated financial statements.
In order to conclude on whether an economy is categorized as hyperinflationary under the terms of IAS 29, the standard details a series of factors to be considered, including the existence of a cumulative inflation rate in three years that approximates or exceed 100%. Taking into account that the accumulated inflation rate of the last three years exceeds 100% and the rest of the indicators do not contradict the conclusion that Argentina should be considered as a hyperinflationary economy for accounting purposes, the Company Management understands that there is sufficient evidence to conclude that Argentina is a hyperinflationary economy under the terms of IAS 29, as of July 1, 2018. It is for this reason that, in accordance with the IAS 29, these Consolidated Financial Statements are restated reflecting the effects of inflation in accordance with the provisions of the standard.
10
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 2 – ACCOUNTING POLICIES (Contd.)
7) Foreign currency conversion and financial information in hyperinflationary economies (Contd.)
Functional and presentation currency (Contd.)
In turn, Law No. 27,468 (BO 04/12/2018) amended Article 10 of Law No. 23,928 and its amendments, establishing that the repeal of all legal norms or regulations that establish or authorize indexation by prices, monetary update, variation of costs or any other form of repowering of debts, taxes, prices or rates of goods, works or services, does not include financial statements, in respect of which the provisions of the article 62 in fine of the General Law of Companies No. 19,550 (TO 1984) and its amendments will be applied. Also, the aforementioned legal body ordered the repeal of Decree No. 1269/2002 of July 16, 2002 and its amendments and delegated to the National Executive Power (PEN), through its controlling entities, to establish the date from the which the provisions cited in relation to the financial statements presented will have effect. Therefore, through its General Resolution 777/2018 (BO 28/12/2018), the CNV established that issuers subject to its control should apply to the annual financial statements, for interim and special periods, that close as of December 31, 2018 inclusive, the method of restating financial statements in a homogeneous currency as established by IAS 29.
In accordance with IAS 29, the financial statements of an entity reporting in the currency of a hyperinflationary economy must be reported in terms of the unit of measurement in effect at the date of the financial statements. All amounts in the statement of financial position that are not indicated in terms of the current unit of measurement as of the date of the financial statements should be updated by applying a general price index. All the components of the income statement should be indicated in terms of the unit of measure updated as of the date of the financial statements, applying the change in the general price index that has occurred since the date on which the income and expenses were originally recognized in the financial statements.
The adjustment for inflation in the initial balances was calculated considering the indexes established by the FACPCE based on the price indexes published by the INDEC. As of March 31, 2024, the price index amounted to 5,429.0116, with inflation for the three-month period of 53.6% and year-on-year of 293.1%.
Inflation adjustment
In an inflationary period, any entity that maintains an excess of monetary assets over monetary liabilities will lose purchasing power, and any entity that maintains an excess of monetary liabilities over monetary assets will gain purchasing power, provided that such items are not subject to a mechanism of adjustment.
Briefly, the re-expression mechanism of IAS 29 establishes that monetary assets and liabilities will not be restated since they are already expressed in the current unit of measurement at the end of the reporting period. Assets and liabilities subject to adjustments based on specific agreements will be adjusted in accordance with such agreements.
11
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 2 – ACCOUNTING POLICIES (Contd.)
7) Foreign currency conversion and financial information in hyperinflationary economies (Contd.)
Inflation adjustment (Contd.)
The non-monetary items measured at their current values at the end of the reporting period, such as the net realization value or others, do not need to be re-expressed. The remaining non-monetary assets and liabilities will be re-expressed by a general price index. The loss or gain from the net monetary position will be included in the comprehensive net result of the reporting period, revealing this information in a separate line item.
The following is a summary of the methodology used for the preparation of these Separate Condensed Interim Financial Statements:
- | Non-monetary assets and liabilities: non-monetary assets and liabilities (property, plant and equipment, intangible assets, right of use, deferred profits and additional allowances) updated by the adjustment coefficients corresponding to the date of acquisition or origin of each of them, as applicable. The income tax derived has been calculated based on the restated value of these assets and liabilities; |
- | Monetary assets and liabilities, and monetary position result: monetary assets and liabilities, including balances in foreign currency, by their nature, are presented in terms of purchasing power as of March 31, 2024. The financial result generated by the net monetary position reflects the loss or gain that is obtained by maintaining an active or passive net monetary position in an inflationary period, respectively and is exposed in the line of RECPAM in the Statement of Comprehensive Income; |
- | Equity: the net equity accounts are expressed in constant currency as of March 31, 2024, applying the corresponding adjustment coefficients at their dates of contribution or origin; |
- | Results: the items of the Separate Financial Statements have been restated based on the date on which they accrued or were incurred, with the exception of those associated with non-monetary items (depreciation and amortization expenses), which are presented as a function of the update of the non-monetary items to which they are associated, expressed in constant currency as of March 31, 2024 through the application of the relevant conversion factors. |
The comparative figures have been adjusted for inflation following the same procedure explained in the preceding points.
In the initial application of the adjustment for inflation, the equity accounts were restated as follows:
- | The capital was restated from the date of subscription or from the date of the last adjustment for accounting inflation, whichever happened later. The resulting amount was incorporated into the "Capital adjustment" account |
- | The other result reserves were not restated in the initial application |
With respect to the evolution notes of non-monetary items for the year, the balance at the beginning includes the adjustment for inflation derived from expressing the initial balance to the currency of current purchasing power.
12
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 2 – ACCOUNTING POLICIES (Contd.)
7) Foreign currency conversion and financial information in hyperinflationary economies (Contd.)
Transactions and balances
Transactions in foreign currency are translated into the functional currency using the exchange rates prevailing at the transaction dates (or valuation where items are re-measured).
Foreign exchange gains and losses and losses resulting from the settlement of such transactions and from the translation at year-end of the assets and liabilities denominated in foreign currency are recognized in the statement of comprehensive income.
Foreign exchange gains and losses are shown in “Finance Income” and/or “Finance Expense” of the comprehensive statement of income.
Exchange rates used are the following: buying rate for monetary assets and selling rate for monetary liabilities, applicable at year-end according to BNA, and at the foreign currency exchange rate applicable at the transaction date.
8) Contingencies
The Company has contingent liabilities for legal claims related to the normal course of business. It is not expected that any significant liabilities other than those provisioned will arise from contingent liabilities.
9) Income tax and Deferred tax - Tax revalued - Tax inflation adjustment
The income tax income in the three-month period ended at March 31, 2024 was a loss of $94,949 million.
In order to determine the taxable net result at the end of this period, the adjustment for inflation determined in accordance with articles N ° 95 to N ° 98 of the income tax law was incorporated to the tax result, for $216,071 million, because as of March 31, 2024, the variation of the IPC for the period of 36 months at the end of fiscal year 2024 will exceed 100%.
13
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 3 - SALES INCOME
Three months at | ||||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Air station use rate | 102,185 | 81,637 | ||||||
Landing fee | 9,652 | 6,628 | ||||||
Parking fee | 3,731 | 2,433 | ||||||
Total aeronautical income | 115,568 | 90,698 | ||||||
Total non-aeronautical income | 73,051 | 67,546 | ||||||
Total | 188,619 | 158,244 |
As of March 31, 2024 and 2023, "over the time" income from contracts with customers for the three-month periods was $160,236 million and $131,500 million, respectively.
NOTE 4 - COSTS OF SALES, ADMINISTRATIVE, DISTRIBUTION, AND SELLING EXPENSES
4.1. Sales Cost
Three months at | ||||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Specific allocation of income | 27,957 | 23,431 | ||||||
Airport services and maintenance | 18,801 | 17,430 | ||||||
Amortization of intangible assets | 17,212 | 16,489 | ||||||
Salaries and social charges | 30,168 | 25,385 | ||||||
Fee | 879 | 204 | ||||||
Utilities and fees | 3,446 | 3,344 | ||||||
Taxes | 1,035 | 926 | ||||||
Office expenses | 3,169 | 2,554 | ||||||
Insurance | 136 | 204 | ||||||
Depreciation rights of use | 425 | 720 | ||||||
Total | 103,228 | 90,687 |
14
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 4 - COSTS OF SALES, ADMINISTRATIVE, DISTRIBUTION, AND SELLING EXPENSES (contd.)
4.2. Distribution and marketing expenses
Three months at | ||||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Amortization of intangible assets | 2 | 2 | ||||||
Salaries and social charges | 65 | 257 | ||||||
Taxes | 9,657 | 8,060 | ||||||
Office expenses | 9 | 2 | ||||||
Advertising | 405 | 217 | ||||||
Provision for bad debts | 653 | 656 | ||||||
Total | 10,791 | 9,194 |
4.3. Administrative expenses
Three months at | ||||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Airport services and maintenance | 157 | 153 | ||||||
Amortization of intangible assets | 150 | 103 | ||||||
Salaries and social charges | 3,702 | 3,271 | ||||||
Fee | 789 | 479 | ||||||
Utilities and fees | - | 11 | ||||||
Taxes | 1,150 | 1,054 | ||||||
Office expenses | 825 | 950 | ||||||
Insurance | 81 | 72 | ||||||
Fees to the Board of Directors and the Supervisory Committee | 106 | 59 | ||||||
Total | 6,960 | 6,152 |
15
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 5 - OTHER ITEMS OF THE COMPREHENSIVE INCOME STATEMENT
5.1 Other net incomes and expenses | Three months at | |||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Trust for Strengthening | 4,659 | 3,903 | ||||||
Other | (1,309 | ) | (373 | ) | ||||
Total | 3,350 | 3,530 |
5.2. Finance Income | Three months at | |||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Interest | 9,783 | 6,187 | ||||||
Foreign Exchange differences | (75,596 | ) | (4,540 | ) | ||||
Total | (65,813 | ) | 1,647 |
5.3 Finance Expenses | Three months at | |||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Interest | (12,319 | ) | (12,024 | ) | ||||
Foreign Exchange differences | 267,368 | 16,014 | ||||||
Total | 255,049 | 3,990 |
5.4 Income Tax | Three months at | |||||||
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Deferred | (94,949 | ) | (27,944 | ) | ||||
Total | (94,949 | ) | (27,944 | ) |
NOTE 6 - INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Balance at January 1 | 2,467 | 2,001 | ||||||
Income from investments accounted for by the equity method | (715 | ) | (55 | ) | ||||
Balance at March 31 | 1,752 | 1,946 |
16
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 7 - INTANGIBLE ASSETS
03.31.2024 | 03.31.2023 | |||||||||
Note | Millions of $ | |||||||||
Original values: | ||||||||||
Initial balance | 2,201,304 | 2,072,711 | ||||||||
Acquisitions of the period | 28,672 | 23,612 | ||||||||
Balance at March 31 | 2,229,976 | 2,096,323 | ||||||||
Accumulated Amortization: | ||||||||||
Initial balance | (855,258 | ) | (778,879 | ) | ||||||
Amortization of the period | 4 | (17,364 | ) | (16,594 | ) | |||||
Balance at March 31 | (872,622 | ) | (795,473 | ) | ||||||
Net balance at March 31 | 1,357,354 | 1,300,850 |
NOTE 8 - FINANCIAL DEBTS
8.1 Changes in financial debt:
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Initial balance | 802,663 | 605,585 | ||||||
New financial debts | - | 5,299 | ||||||
Financial debts paid | (31,559 | ) | (26,219 | ) | ||||
Accrued interest | 12,055 | 9,898 | ||||||
Foreign Exchange differences | (257,667 | ) | (16,352 | ) | ||||
Inflation adjustment | 7,554 | 1,576 | ||||||
Total Net Balance at March 31 | 533,046 | 579,787 |
8.2 Breakdown of financial debt
03.31.2024 | 03.31.2023 | |||||||
Non-current Financial Debts | Millions of $ | |||||||
Bank borrowings | 8,580 | 12,423 | ||||||
Negotiable Obligations | 480,363 | 760,109 | ||||||
Cost of issuance of NO | (900 | ) | (1,475 | ) | ||||
488,043 | 771,057 |
17
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 8 - FINANCIAL DEBTS (Contd.)
8.2 Breakdown of financial debt (Contd.)
03.31.2024 | 03.31.2023 | |||||||
Current Financial Debts | Millions of $ | |||||||
Bank borrowings | 6,207 | 12,621 | ||||||
Negotiable Obligations | 39,002 | 19,292 | ||||||
Bank overdrafts | 42 | 77 | ||||||
Cost of issuance of NO | (248 | ) | (384 | ) | ||||
45,003 | 31,606 | |||||||
533,046 | 802,663 |
As of March 31, 2024 and December 31, 2023, the fair value of the financial debt amounts to $528,817 million and $752,781 million, respectively. Said valuation method is classified according to IFRS 13 as hierarchy of fair value Level 2 (unadjusted quoted prices in active markets for identical assets or liabilities).
These Condensed Consolidated Interim Financial Statements do not include all the information and disclosure on financial debt management required in the annual financial statements, so they must be read together with the audited Consolidated Financial Statements as of December 31, 2023.
8.3 Negotiable Obligations
Class | Start | Maturity | Interest | Currency | Initial Capital | Capital in U$S at 03.31.2024 | Capital in U$S at 12.31.2023 | |||||||||
Guaranteed with Maturity in 2027 (1) (2) | 02.2017 | 02.2027 | 6.875 | % | U$S | 400.0 | 15.0 | 16.3 | ||||||||
Class I Series 2020(1) (2) (3) | 04.2020 | 02.2027 | 6.875 | %(5) | U$S | 306.0 | 54.1 | 58.7 | ||||||||
Class I Series 2021 - Additional (1) (2) (3) | 10.2021 | 08.2031 | 8.500 | % | U$S | 272.9 | 272.9 | 272.9 | ||||||||
Class IV (2) (3) | 11.2021 | 11.2028 | 9.500 | % | U$S | 62.0 | 62.0 | 62 | ||||||||
Class V (3) | 02.2022 | 02.2032 | 5.500 | % | U$S (6) | 138.0 | 138.0 | 138.0 | ||||||||
Class VI (3) | 02.2022 | 02.2025 | 2.000 | % | U$S (6) | 36.0 | 27.5 | 36.0 | ||||||||
Class IX (3) | 08.2022(4) | 08.2026 | 0.000 | % | U$S (6) | 32.7 | 25.4 | 32.7 | ||||||||
Class X (3) | 07.2023 | 07.2025 | 0.000 | % | U$S (6) | 25.1 | 18.1 | 25.1 |
(1) These NOs are guaranteed in the first degree with the international and regional airport use rates and the rights to compensation of the concession, and in the second degree, with the income assigned from the cargo terminal.
(2) Corresponds to international NOs.
(3) Issued under the Global Program for the issuance of Negotiable Obligations approved by the CNV on 04.12.2020.
(4) On 07/2023, an additional amount was issued for US$2.7 million, with the same conditions as the original issue.
(5) During the PIK Period (until 05.01.2021) the interest rate was 9.375% per year, period in which the amount of interest was capitalized quarterly. After said period, the interest rate of the NOs is applied.
(6) The reference NOs are denominated in United States Dollars but payable in Argentine Pesos at the BCRA Communication Reference "A" 3500 exchange rate.
18
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 8 - FINANCIAL DEBTS (Contd.)
8.3 Negotiable Obligations (Contd.
The main covenants of the international NOs require compliance with certain financial ratios, as well as the restriction of incurring additional debt and limitations on the payment of dividends if any breach has occurred. At March 31, 2024, the Company is in compliance with financial covenants.
8.4 Bank debt
Institution | Start | Maturity. | N.A.R. | Currency | Initial Capital(2) | Capital at 03.31.2024 (2) | Capital at 12.31.2023 (2) | |||||||||
Province of Buenos Aires (1) | 04.2019 | 07.2024 | 7 | % | U$S | 3.1 | 0.1 | 0.3 | ||||||||
On Shore Renegotiation | 11.2021 | 11.2024 | 8,500 | % | U$S | 18.0 | 6.7 | 8.9 | ||||||||
ICBC - Dubai Branch | 07.2022 | 10.2025 | SOFR+ 7,875 | %(3) | U$S | 10.0 | 10.0 | 10.0 | ||||||||
Citibank - Overdraft | 03.2023 | 03.2024 | 76,000 | % | $ | 1,186.0 | - | 1,186.0 | ||||||||
Import Financing | 09.2023 | 01.2024 | 15,500 | % | U$S | 0.5 | - | 0.5 | ||||||||
Import Financing | 09.2023 | 12.2024 | 15,500 | % | U$S | 0.1 | 0.1 | 0.1 |
(1) The loan was granted in four tranches, all of them with the same conditions.
(2) Balances in the currency of origin of the financial instrument. In the case of Argentine pesos, the value is expressed in the homogeneous closing currency.
(3) Plus applicable tax withholdings.
Citibank - Overdraft
As of March 31, 2024, the overdraft lines that were taken in 2023 were cancelled.
NOTE 9 - COMPOSITION OF CERTAIN ITEMS OF THE SEPARATE STATEMENTS OF FINANCIAL POSITION
9.1 Other receivables
9.1.1 Other non-current receivables | 03.31.2024 | 03.31.2023 | |||||||||
Note | Millions of $ | ||||||||||
Trust for Strengthening | 10.1 | 22,909 | 28,109 | ||||||||
Total | 22,909 | 28,109 |
9.1.2 Other current receivables | 03.31.2024 | 03.31.2023 | ||||||||||
Note | Millions of $ | |||||||||||
Expenses to be recovered | 83 | 406 | ||||||||||
Guarantees granted | 1 | 2 | ||||||||||
Related parties | 10.1 | 329 | 204 | |||||||||
Tax credits | 6,657 | 5,097 | ||||||||||
Prepaid Insurance | 755 | 1,065 | ||||||||||
Others | 3 | 8 | ||||||||||
Total | 7,828 | 6,782 |
19
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 9 - COMPOSITION OF CERTAIN ITEMS OF THE SEPARATE STATEMENTS OF FINANCIAL POSITION (contd.)
9.2 Trade receivables | 03.31.2024 | 03.31.2023 | ||||||||||
Note | Millions of $ | |||||||||||
Trade receivables | 62,372 | 75,984 | ||||||||||
Related parties | 10.1 | 579 | 392 | |||||||||
Checks-postdated checks | 757 | 1,477 | ||||||||||
Subtotal sales credits | 63,708 | 77,853 | ||||||||||
Provision for bad debts | (6,319 | ) | (9,399 | ) | ||||||||
Total | 57,389 | 68,454 |
9.2.1 Changes in Bad Debt Provisions | 03.31.2024 | 03.31.2023 | ||||||||||
Note | Millions of $ | |||||||||||
Initial Balance | 9,399 | 10,947 | ||||||||||
Increases /Recoveries of the period | 4.2 | 653 | 656 | |||||||||
Foreign exchange difference | (275 | ) | 896 | |||||||||
Applications of the period | (27 | ) | (495 | ) | ||||||||
Inflation adjustment | (3,431 | ) | (1,988 | ) | ||||||||
Bad Debts provisions at March 31 | 6,319 | 10,016 |
9.3.1 Non-current investments | 03.31.2024 | 03.31.2023 | ||||||||||
Note | Millions of $ | |||||||||||
Negotiable obligations | 45,940 | 61,882 | ||||||||||
Negotiable obligations of related companies | 10.1 | 2,950 | 4,270 | |||||||||
Total | 48,890 | 66,152 |
9.3.2 Current investments | 03.31.2024 | 03.31.2023 | ||||||||||
Note | Millions of $ | |||||||||||
Other financial assets of related companies | 10.1 | 21,619 | 30,948 | |||||||||
Negotiable Obligations | 4,162 | 6,122 | ||||||||||
Other Financiall Assets | 448 | - | ||||||||||
Total | 26,229 | 37,070 |
20
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 9 - COMPOSITION OF CERTAIN ITEMS OF THE SEPARATE STATEMENTS OF FINANCIAL POSITION (contd.)
9.4 Cash and cash equivalents
03.31.2024 | 03.31.2023 | |||||||||
Nota | Millions of $ | |||||||||
Cash and funds in custody | 133 | 244 | ||||||||
Banks | 13 | 51,796 | 81,664 | |||||||
Checks not yet deposited | 58 | 323 | ||||||||
Term deposits and others | 34,824 | 28,685 | ||||||||
Total | 86,811 | 110,916 |
9.5 Commercial accounts payable and other
9.5.1 Commercial Accounts payable and other non-current
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Suppliers | 933 | 1,435 | ||||||
Total | 933 | 1,435 |
9.5.2 Commercial accounts payable and other current
03.31.2024 | 03.31.2023 | |||||||||
Nota | Millions of $ | |||||||||
Suppliers | 31,820 | 42,774 | ||||||||
Foreign suppliers | 3,047 | 5,309 | ||||||||
Debts with Related Parties | 10.1 | 1,955 | 2,454 | |||||||
Salaries and social security liabilities | 24,709 | 29,143 | ||||||||
Other fiscal debts | 1,800 | 2,581 | ||||||||
Total | 63,331 | 82,261 |
NOTE 10 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES
10.1 Balances with other related parties
Balances with other related companies at March 31, 2024 and December 31, 2023 are as follows:
03.31.2024 | 03.31.2023 | |||||||
Other receivables | Millions of $ | |||||||
Servicios y Tecnología Aeroportuarios S.A. | 152 | 135 | ||||||
Other related companies | 177 | 69 | ||||||
Total | 329 | 204 |
21
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 10 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Contd.)
10.1 Balances with other related parties (Contd.)
03.31.2024 | 03.31.2023 | |||||||
Trade receivables | Millions of $ | |||||||
Servicios y Tecnología Aeroportuarios S.A. | 212 | - | ||||||
Other related companies | 367 | 392 | ||||||
Total | 579 | 392 |
03.31.2024 | 03.31.2023 | |||||||
Investments | Millions of $ | |||||||
Servicios y Tecnología Aeroportuarios S.A. (1) | 8,796 | 12,592 | ||||||
Other related companies (2) - current | 12,823 | 18,356 | ||||||
Other related companies -non current | 2,950 | 4,270 | ||||||
Total | 24,569 | 35,218 |
(1) As of December 31, 2023, it includes a loan granted on July 27, 2023, which was renewed on December 18, 2023, to Servicios y Tecnología Aeroportuarios S.A. for US$10,6 million with a T.N.A. of 4.5%. The loan is for a term of 12 months with cancellation in a single payment of principal and interest at maturity.
(2) As of December 31, 2023, it includes a loan granted on June 9, 2023, which was renewed on December 6, 2023, to Compañía General de Combustibles S.A. for US$14.8 million with a T.N.A. of 4.5%. The loan is for a term of 6 months with cancellation in a single payment of principal and interest at maturity.
03.31.2024 | 03.31.2023 | |||||||
Accounts payable and other | Millions of $ | |||||||
Servicios y Tecnología Aeroportuarios S.A. | 254 | 61 | ||||||
Texelrio S.A. | 589 | 192 | ||||||
Other related companies | 1,112 | 2,201 | ||||||
Total | 1,955 | 2,454 |
The balances with the Argentine National State as of March 31, 2024 and December 31, 2023 are as follows:
03.31.2024 | 03.31.2023 | |||||||
Millions of $ | ||||||||
Debt - Specific allocation of income | 8,212 | 10,610 | ||||||
Credit - Strengthening Trust (1) | 22,909 | 28,109 |
(1) To fund the investment commitments of the company.
22
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 10 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Contd.)
10.2 Operations with related parties
Transactions with related parties during the three-month periods ended March 31, 2024 and 2023 are as follows:
With Proden S.A. for office rental and maintenance, the Company has allocated $761 million and $727 million to the cost, respectively.
With Texelrío S.A. For maintenance at the airports, the Company has allocated $1,417 million and $802 million, respectively, to the cost.
The Company has allocated to the cost $828 million and $822 million, respectively, with Grass Master S.A.U. for airport maintenance.
With Tratamientos Integrales América S.A.U for airport maintenance, the Company has allocated $233 million and $267 million to the cost, respectively.
The Company has allocated to the cost $245 million and $255 million, respectively, with Servicios Integrales América S.A. for systems and technology services.
With Compañía de Infraestructura y Construcción S.A. for maintenance at airports, the Company has allocated $523 million to the cost for the period ended at March 31, 2024.
With Servicios Aereos Sudamericanos S.A. for aeronautical services, the Company has allocated $449 million for the period ended at March 31, 2024.
The Company has recorded commercial income of $498 million and $323 million with Duty Paid S.A., respectively.
10.3 Other information about related parties
Furthermore, short-term compensation to key management was $342 million and $295 million for the three-month periods ended at March 31, 2024 and 2023, respectively.
Corporación America S.A. is the direct owner of 45.90% of the common shares of the Company, and an indirect owner through Corporación America Sudamericana S.A of 29.75% of the common shares of the Company, therefore is the immediate controlling entity of the Company.
23
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 10 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Contd.)
10.3 Other information about related parties (Contd.)
Corporación America S.A. is controlled by Cedicor S.A., owner of 97.2186% of its capital stock. Cedicor is, in turn, the direct holder of 9.35% of the shares with voting rights of the Company. Cedicor S.A., is 100% controlled by American International Airports LLC, which is in turn 100% controlled by Corporación América Airports S.A.
The ultimate beneficiary of the Company is Southern Cone Foundation. Its purpose is to manage its assets through decisions adopted by its independent Board of Directors. The potential beneficiaries are members of the Eurnekian family and religious, charitable and educational institutions.
24
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 11 – PROVISIONS AND OTHER CHARGES
At 01.01.24 | Increases / (Recovery) | Decreases | Inflation Adjustment | Accruals | Exchange rate differences | At 03.31.24 | Total Non Current | Total Current | ||||||||||||||||||||||||||||
Millions of $ | Millions of $ | |||||||||||||||||||||||||||||||||||
Litigations | 4,004 | 263 | (307 | ) | (1,423 | ) | - | 146 | 2,683 | 1,207 | 1,476 | |||||||||||||||||||||||||
Deferred Income | 21,631 | 1,849 | - | (5,588 | ) | (2,405 | ) | 410 | 15,897 | 2,725 | 13,172 | |||||||||||||||||||||||||
Guarantees Received | 2,763 | 4 | 19 | (861 | ) | - | - | 1,925 | - | 1,925 | ||||||||||||||||||||||||||
Upfront fees from concessionaires | 4,290 | 401 | - | - | (365 | ) | - | 4,326 | 2,925 | 1,401 | ||||||||||||||||||||||||||
Others | 2,804 | 1 | - | (1,000 | ) | 40 | 127 | 1,972 | 1,657 | 315 | ||||||||||||||||||||||||||
Total 2024 | 35,492 | 2,518 | (288 | ) | (8,872 | ) | (2,730 | ) | 683 | 26,803 | 8,514 | 18,289 |
Nota | At 01.01.23 | Increases / (Recovery) | Decreases | Inflation Adjustment | Accruals | Exchange rate differences | At 03.31.23 | Total Non Current | Total Current | |||||||||||||||||||||||||||||
Millions of $ | Millions of $ | |||||||||||||||||||||||||||||||||||||
Litigations | 4,320 | 240 | (535 | ) | (766 | ) | - | 468 | 3,727 | 1,671 | 2,056 | |||||||||||||||||||||||||||
Deferred Income | 14,320 | 1,120 | - | (1,360 | ) | (2,099 | ) | 1,230 | 13,211 | 3,097 | 10,114 | |||||||||||||||||||||||||||
Trust for works | 9,033 | 3,726 | (5,979 | ) | (1,457 | ) | 605 | - | 5,928 | - | 5,928 | |||||||||||||||||||||||||||
Guarantees Received | 1,517 | 460 | (122 | ) | (71 | ) | - | - | 1,784 | - | 1,784 | |||||||||||||||||||||||||||
Upfront fees from concessionaires | 3,616 | 86 | - | - | (208 | ) | - | 3,494 | 2,614 | 880 | ||||||||||||||||||||||||||||
Others | 5,876 | 4 | (1,164 | ) | (994 | ) | 896 | (55 | ) | 4,563 | 1,733 | 2,830 | ||||||||||||||||||||||||||
Total 2023 | 38,682 | 5,636 | (7,800 | ) | (4,648 | ) | (806 | ) | 1,643 | 32,707 | 9,115 | 23,592 |
25
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 12 - FOREIGN CURRENCY ASSETS AND LIABILITIES
Item | Foreign currency type and amount at 03.31.2024 | Foreign exchange rates | Amount in local currency at 03.31.2024 | Amount in local currency at 12.31.2023 | |||||||||||
Assets | |||||||||||||||
Current Assets | |||||||||||||||
Cash and cash equivalents | U$S | 60 | 855.00 | 51,505 | 81,472 | ||||||||||
Net trade receivables | U$S | 35 | 855.00 | 29,650 | 46,892 | ||||||||||
Investments | U$S | 31 | 855.00 | 26,229 | 37,070 | ||||||||||
Total current assets | 107,384 | 165,434 | |||||||||||||
Non-Current Assets | |||||||||||||||
Investments | U$S | 57 | 855.00 | 48,890 | 66,153 | ||||||||||
Total Non-Current Assets | 48,890 | 66,153 | |||||||||||||
Total assets | 156,274 | 231,587 | |||||||||||||
Liabilities | |||||||||||||||
Current Liabilities | |||||||||||||||
Provisions and other charges | U$S | 1 | 858.00 | 1,106 | 2,371 | ||||||||||
Financial debts | U$S | 53 | 858.00 | 45,209 | 49,473 | ||||||||||
Lease liabilities | U$S | 3 | 858.00 | 2,256 | 3,265 | ||||||||||
Commercial accounts payable and others | U$S | 13 | 858.00 | 11,207 | 19,688 | ||||||||||
EUR | 3 | 929.5572 | 2,466 | 3,519 | |||||||||||
Total current liabilities | 62,244 | 78,316 | |||||||||||||
Non-Current Liabilities | |||||||||||||||
Provisions and other charges | U$S | 3 | 858.00 | 2,863 | 3,717 | ||||||||||
Financial debts | U$S | 570 | 858.00 | 488,943 | 772,534 | ||||||||||
Lease liabilities | U$S | 4 | 858.00 | 3,248 | 5,396 | ||||||||||
Commercial accounts payable and others | U$S | 1 | 858.00 | 933 | 1,432 | ||||||||||
Total non-current liabilities | 495,987 | 783,079 | |||||||||||||
Total liabilities | 558,231 | 861,395 | |||||||||||||
Net liability position | 401,957 | 629,808 |
26
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 13 – OTHER RESTRICTED ASSETS
Other than what is mentioned in Note 1 and 6, other receivables in current assets at March 31, 2024 and December 31, 2023 include $1 million and $2 million corresponding to guarantees granted to third parties in connection with lease agreements. Likewise, as of March 31, 2024, and December 31, 2023, under Cash and cash equivalents, there are balances in bank accounts specifically earmarked for the cancellation of Series 2021 and Class IV negotiable obligations for $5,158 million and $7,286 million, respectively.
NOTE 14 - CAPITAL STOCK
At March 31, 2024 capital stock is as follows:
Par Value | ||||
$ | ||||
Paid-in and subscribed | 258.517.299 | |||
Registered with the Public Registry of Commerce | 258.517.299 |
The Company’s capital stock is comprised of 258,517,299 common shares of $1 par value and entitled to one vote per share.
NOTE 15 - RESOLUTION OF THE ORDINARY GENERAL MEETINGS, SPECIAL CLASS A, B, C AND D AND SPECIAL PREFERRED SHARES MEETINGS OF AEROPUERTOS ARGENTINA 2000 S.A. FROM APRIL 26, 2023 AND APRIL 24, 2024 (presented in $ in the currency of the date of the assemblies)
At the ordinary and special general meeting of classes A, B, C and D shares, held on April 26, 2023, it was resolved that the positive result of $40,638,030,971 that, after absorbing the accumulated losses of the previous year for the sum of ($22,199,777,489), amounted to $18,438,253,482, has the following destination:
(i) | $614,780,045 to constitute the legal reserve, up to 20% of the capital stock plus the capital adjustment; and |
(ii) | the balance of $17,823,473,437 to establish an optional reserve for the execution of future works plans and to guarantee the payment of future dividends, if applicable. |
At the ordinary and special general meeting of classes A, B, C and D shares, held on April 24, 2024, it was resolved that the positive result of $9,406,678,415 has the following destination:
(i) | $58,044,335 to the constitution of the legal reserve, up to 20% of the share capital plus the capital adjustment: and |
(ii) | the balance of $9,348,634,080 to the constitution of an optional reserve for the execution of future works plans and to guarantee the payment of future dividends, if applicable |
27
Notes to the Separate Condensed Interim Financial Statements
At March 31, 2024 presented in comparative format (Contd.)
NOTE 16 – EARNINGS PER SHARE
Relevant information for the calculation per share:
03.31.2024 | 03.31.2023 | |||||||
Income for the period (in millions of $) | 151,035 | 30,597 | ||||||
Amount of ordinary shares (millions) | 259 | 259 | ||||||
Earnings per shares ($ per share) | 584.2356 | 118.3557 |
NOTE 17 - FINANCIAL RISK MANAGEMENT
The Company is exposed by its activities to several financial risks: market risk (including risk of exchange rate, risk of fair value due to interest rate and price risk), credit risk and liquidity risk.
These Separate Condensed Interim Financial Statements must be read in light of the economic context in which the Company operates, which was stated in the annual Separate Financial Statements in note 21. Inflation for the first quarter of 2024 and year-on-year are indicated in note 3, the devaluation for the quarter was 6% and some restrictions to access the MULC continue in force.
Volatility and uncertainty continue at the date of issuance of these Separate Condensed Interim Financial Statements, so the Company's Management permanently monitors the evolution of the variables that affect its businesses, to identify the potential impacts on its equity and financial situation and define the necessary courses of action.
These Separate Condensed Interim Financial Statements do not include all the information on financial risk management requested in the annual financial statements, thus they should be read together with the Separate Financial Statements audited at December 31, 2023.
NOTE 18 - EVENTS SUBSEQUENT TO THE END OF THE YEAR
As of the date the Company has sold the holding in BOPREAL Serie 2. The amount obtained from the sale was applied to imports debt.
Beyond the aforementioned, there have been no events and/or transactions that could significantly affect the equity and financial situation of the Company after the end of the period.
28
“Free translation from the original in Spanish for publication in Argentina”
REPORT ON REVIEW OF SEPARATE CONDENSED INTERIM FINANCIAL STATEMENTS
To the Shareholders, Chairman and Directors of
Aeropuertos Argentina 2000 S.A.
Legal address: Honduras 5663
Autonomous City of Buenos Aires
Tax Code: 30-69617058-0
Report on the separate condensed interim financial statements
Introduction
We have reviewed the accompanying separate condensed interim financial statements of Aeropuertos Argentina 2000 S.A. (hereinafter "the Company"), which comprise the separate statement of financial position as of March 31, 2024, the separate statements of comprehensive income, of changes in equity and cash flows for the three-month period ended March 31, 2024 and selected explanatory notes.
Board Responsibility
The Board of Directors of the Company is responsible for the preparation and presentation of the financial statements in accordance with the IFRS accounting standards, adopted by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE) as professional accounting standards and incorporated by the National Securities Commission (CNV) to its regulations, as approved by the International Accounting Standards Board (IASB) and, therefore, is responsible for the preparation and presentation of the separate condensed interim financial statements mentioned in the first paragraph in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34).
Scope of review
Our responsibility is to express a conclusion on these separate condensed interim financial statements based on the review we have performed, which was performed in accordance with the International Standard for Review Engagements NIER 2410 "Review of interim financial information developed by the entity's independent auditor", which was adopted as a review standard in Argentina through Technique Resolution FACPCE No. 33 as approved by the International Auditing and Assurance Standards Board (IAASB). A review of separate condensed interim financial statements consists of making inquiries primarily of personnel responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially narrower in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not allow us to be confident that we have identified all significant matters that might be noted in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that would cause us to believe that the separate condensed interim financial statements mentioned in the first paragraph of this report are not prepared, in all material respects, in accordance with the International Standard of Accounting 34.
Price Waterhouse & Co. S.R.L., Bouchard 557, 8th floor, C1106ABG - City of Buenos Aires
T: +(54.11) 4850.0000, www.pwc.com/ar
“Free translation from the original in Spanish for publication in Argentina”
Report on the compliance with current regulations
In compliance with current provisions, we report, with respect to Aeropuertos Argentina 2000 S.A., that:
a) | the separate condensed interim financial statements of Aeropuertos Argentina 2000 S.A. are pending to be transcribed in the book Inventory and Balance Sheets; |
b) | the separate condensed interim financial statements of Aeropuertos Argentina 2000 S.A. arise from accounting records kept in their formal aspects in accordance with legal regulations, except for their lack of transcription in the book Inventory and Balance Sheets; |
c) | As of March 31, 2024, the debt accrued in favor of the Integrated Argentine Pension System of Aeropuertos Argentina 2000 S.A. that arises from the accounting records and settlements of the Company amounted to $2,933,357,550, not being payable as of that date. |
Autonomous City of Buenos Aires, May 8, 2024.
PRICE WATERHOUSE & CO. S.R.L. | |
by (Partner) | |
Juan Manuel Gallego Tinto |
SURVEILLANCE COMMITTEE REPORT
To the shareholders of
AEROPUERTOS ARGENTINA 2000 S.A.
In accordance with the requirements of the Article 294 Subsection 5º of Act No. 19,550 and the Article 63 Subsection b) of the BYMA Regulations (Argentine Stock and Market), we have conducted the review described in the third paragraph regarding the separate condensed interim financial statements of Aeropuertos Argentina 2000 S.A. (the “Company”), including the separate statement of financial position as of March 31, 2024, the separate statements of comprehensive income, changes in equity, and cash flows for the three-month period ended March 31, 2024, and selected explanatory notes.
The Board of Directors of the Company is responsible for the preparation and issuance of said financial statements, in exercise of its specific functions.
Our review was conducted in accordance with the supervisory existing standards. These standards require the verification of the consistency of the revised documents with the information on the corporate decisions established in minutes and the adequacy of those decisions to the law and the by-laws regarding its formal and documentary aspects.
In order to carry out our professional work, we have taken into account the limited review report of the external auditor, Juan Manuel Gallego Tinto (partner of Price Waterhouse & Co. SRL), dated May 8, 2024, who states that it has been issued in accordance with the International Standards for Review Engagements NIER 2410 "Review of interim financial information developed by the entity's independent auditor", which were adopted as review standards in Argentina by Technique Resolution No. 33 of the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as approved by the International Auditing and Assurance Standards Board (IAASB).
As stated in the section "Board Responsibility" of the external auditor's report, the Board of Directors of the Company is responsible for the preparation and presentation of the abovementioned financial statements, in accordance with International Financial Reporting Standards (IFRS), adopted as Argentine professional accounting standards by the FACPCE and incorporated into the regulations of the National Securities Commission (CNV), as approved by the International Accounting Standard Board (IASB). The Board of Directors of the Company is responsible for the preparation and issuance of said financial statements, according to the International Accounting Standard 34 “Interim Financial Reporting” (IAS 34).
We have not carried out any management control and, therefore, we have not evaluated the criteria and business decisions of administration, financing, marketing, or production, since these issues are the sole responsibility of the Board of Directors.
Based on our review, with the scope described above, we hereby inform that separate condensed interim financial statements of the Company as of March 31, 2024: (i) consider all significant events and circumstances that are known to us; (ii) they arise from the accounting records kept in their formal aspects in accordance with legal regulations, except for the fact that they are pending to be copied in the "Inventories and Balance Sheets" book; and (iii) regarding said documents we have no other observations to make.
In exercise of our legal supervision duties, during the period under review, we performed the procedures set forth in Article 294 of Act No. 19,550 that we consider necessary in accordance with the circumstances, and in this respect, we have no observations to make.
Autonomous City of Buenos Aires, May 8, 2024.
TOMÁS M. ARAYA
By Surveillance Committee