Corporación América Airports S.A. Third Quarter 2019 Earnings Call Presentation 1
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. 2
Executing against adverse macro conditions in some key markets • Passenger traffic up 1.4% YoY reaching 22.5 million passengers in 3Q19 • Revenues, Ex-IFRIC12, declined 4.3% YoY mainly reflecting continued difficult macro conditions in Argentina, softer topline performance in Brazil, lower traffic in Italy and FX translation impact from Argentine Peso, as well as Euro depreciation • Adj. EBITDA, decreased 25.5% YoY, with Adjusted EBITDA Ex-IFRIC12 margin declining to 31.7% • Excluding bad debt charges in Argentina, Adjusted EBITDA Ex-IFRIC12 margin would have declined 176 bps to 38.9% • CAPEX of US$120 million to enhance airport infrastructure, mainly in Argentina, Ecuador and Italy • Tariff increase in Argentina starting January 1 st , 2020 1. All figures shown in this presentation are excluding IAS29, unless otherwise noted. For “As Reported” figures see the earnings report. 3
Traffic up 1.4% driven by domestic passenger growth in Argentina, and good performance in Armenia and Peru, impacted by declines in Brazil, Italy & Uruguay 12% Corporación América Airports ITALY ARGENTINA 51% 37 Airports 2 Airports 52 Airports Passengers +7.8% Passengers -1.2% Cargo +2.1% Passengers +1.4% Cargo +13.8% 5% ARMENIA Cargo +4.1% Movements +0.7% Movements +0.6% Movements -2.3% 2 Airports Passengers +16.6% 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 +4.8% 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 +27.9% 2 Airports (1) Passengers -4.0% Cargo -15.9% BRAZIL 21% Movements -3.7% 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 -11.8% ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR Cargo +20.9% 4% Movements -13.2% 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 2% 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 +5.5% Passengers -2.8% Cargo +13.2% 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 Movements -4.9% Cargo -1.8% % of total passengers for 3Q19 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 -11.6% 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 4
Revenues reflect mix-shift to domestic traffic in Argentina, traffic decline in Brazil and Italy, combined with FX depreciation in Argentina and Italy. Revenue growth in Armenia Comparable revenues Ex-IFRIC12 fell 4.3% YoY in the quarter: Aeronautical down 1.9% YoY due to: i) FX depreciation and mix-shift to domestic traffic in Argentina, ii) Euro depreciation in Italy, iii) Brazil mainly due to lower domestic and transit traffic, partially offset by higher international traffic. Revenue growth in Armenia. Commercial declined 7.9% affected by: i) Argentina due to lower cargo and Duty-Free sales and the impact of the currency depreciation, and ii) Brazil mainly due to lower advertising, F&B and Parking revenues. This more than offset revenue growth in Armenia due to increases in fuel prices and demand, along with higher traffic. Net Revenue by geography Net Revenue by type In US$ million 3Q19 as 3Q18 as % Var r as 3Q19 ex 3Q18 ex % Var r ex 10% IAS S 29 rep eporte ted rep eporte ted rep eporte ted IAS S 29 IAS S 29 IAS S 29 7% Aeronauti tical Reve venue 184.8 177.1 4.4% -7.5 192.4 196.0 -1.9% Non-aer eronauti tical Reve venue 232.3 170.9 35.9% -13.4 245.7 192.8 27.4% 6% Commercial reve venue 123.3 124.7 -1.1% -4.4 127.7 138.6 -7.9% Constr tructi tion on serv rvice e reven venue e (1) 108.2 45.6 137.4% -9.0 117.3 53.6 118.7% 6% 61% Other er reven venue 0.7 0.6 25.3% 0.0 0.7 0.6 25.3% Total Consolidate ted Reve venue 417.1 348.0 19.9% -20.9 438.0 388.9 12.6% 10% Total Reve venue e excluding Constr tructi tion 308.8 302.4 2.1% -11.9 320.8 335.3 -4.3% Servi vice e reve venue (2) 1 Construction Service revenue equals the construction or upgrade costs plus a reasonable margin. Argentina Italia Brazil Uruguay Ecuador Armenia 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. 5
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