Corporación América Airports S.A. First Quarter 2019 Earnings Call Presentation
Disclaimer and forward looking statement Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “believes,” “continue,” “could,” “potential,” “remain,” “will,” “would” or similar express ions 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: 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, AMD or the PEN 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 Registration Statement on Form F-1 filed with the SEC for additional information concerning factors that could cause those differences.
Advancing on strategic initiatives while navigating challenging macro environment • Passenger traffic up 4% YoY reaching over 20 million passengers in 1Q19 • Comparable revenues, Ex-IFRC12, declined 8% YoY mainly reflecting difficult macro in Argentina and FX translation impact from Argentine Peso, Euro and Brazilian Real depreciation • Comparable Adj. EBITDA, Ex-IFRC12, decreased 8% YoY, with margin flat at 39% • Progress on strategic initiatives • CAPEX of US$64 million to enhance airport infrastructure, mainly in Argentina, Italy and Armenia • Approval of the 2014-2029 Master Plan for Florence Airport by Ministry of Transportation • Extended concession agreement of the Punta del Este Airport in Uruguay through 2033 1. All figures shown in this presentation are excluding IAS29, unless otherwise noted. For “As Reported” figures see the earnings report. 2. Comparable figures exclude: i) a $4.9 M one-time revenue in Italy of the CPI inflationary effect on airport fees recorded in other revenues in 1Q18, and ii) a one-time $0.8 M IPO expense in 1Q18.
Traffic growth of 4% with slight pick-up in Argentina, impacted by declines in Peru & Uruguay; together with softer growth in Italy, Brazil and Armenia 7% 54% Corporación América Airports ITALY ARGENTINA 37 Airports 2 Airports 52 Airports Passengers +7.0% Passengers +1.6% Passengers +4.0% Cargo -7.2% Cargo +16.0% 3% ARMENIA Cargo +6.3% Movements +1.9% Movements +2.2% Movements -0.3% 2 Airports Passengers +10.4% ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY 5% ECUADOR Cargo +2.4% ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA Movements +8.4% 2 Airports (1) Passengers +7.5% Cargo +12.6% BRAZIL 24% Movements +14.7% 2 Airports ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR Passengers +0.1% ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR Cargo +67.0% 4% Movements -8.9% PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL 3% BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL URUGUAY 5 Airports (2) 2 Airports Passengers -5.7% Passengers -6.2% Cargo +2.2% URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY Cargo -9.8% Movements -11.0% % of total passengers for 1Q19 ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA Movements -14.7% 1)CAAP owns 99.9% of ECOGAL which operates the Galapagos Airport, but due to terms of the concession agreement the 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. 2)CAAP owns 50.0% of AAP and accounts its results by the equity method. However, 100% of AAP’s passenger traffic and aircraft movements are included in this table
Revenues impacted by slower international travel demand in Argentina and FX depreciation in Argentina, Brazil and Italy Revenues face tougher comps due to $ 4.9 M one-time recognition in Italy of the CPI inflationary effect on fees in 1Q18 Comparable revenues Ex-IFRIC12 fell 8.4% YoY in the quarter Aeronautical down 6.1% YoY impacted by: i) Argentina due to mix-shift from international to domestic traffic and currency depreciation, and ii) Brazil mainly due to currency depreciation. Revenue growth in Ecuador and Uruguay. Commercial declined 13.9%, growth in Italy and Armenia more than offset by Argentina and Brazil. Currency translation in Brazil more than offset 14% local currency growth from higher cargo volume and VIP lounge revenues Net Revenue by geography Net Revenue by type In US$ million 1Q19 ex 1Q19 as % Var as % Var ex 6% 1Q18 IAS 29 IAS 29 reported reported IAS 29 7% Aeronautical Revenue 204.8 192.3 -7.3 185.0 -9.7% -6.1% 9% Non-aeronautical Revenue 186.1 183.0 -7.4 175.6 -5.7% -1.7% Commercial revenue 137.2 118.2 -3.8 114.3 -16.7% -13.9% 8% Construction service revenue (1) 46.6 64.3 -3.6 60.7 30.3% 37.9% 63% Other revenue 2.3 0.5 0.0 0.5 -78.0% -78.0% 7% Total Consolidated Revenue 390.9 375.2 -14.7 360.6 -7.8% -4.0% Total Revenue excluding Construction 344.3 310.9 -11.1 299.8 -12.9% -9.7% Service revenue (2) Argentina Italia Brazil Uruguay Ecuador Armenia 1 Construction Service revenue equals the construction or upgrade costs plus a reasonable margin. 2 Excludes Construction Service revenue. 1. All figures shown in this presentation are excluding IAS29, unless otherwise noted. For “As Reported” figures see the earnings report.
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