UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20546

 

FORM 6-K

 

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August, 2022

 

Commission File Number: 333-221916

 

 

 

Corporación América Airports S.A.

(Name of Registrant)

 

4, rue de la Grêve
L-1643, Luxembourg
Tel: +35226258274
Fax: +35226259776

(Address of Principal Executive Office)

 

 

 

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

Form 20-F x      Form 40-F ¨

 

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

 

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

 

 

 

 

 

 

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX-MONTH PERIOD ENDED JUNE 30, 2022 AND 2021

 

This report of foreign private issuer on Form 6-K (this “Form 6-K”) is being filed by Corporación América Airports S.A. (“CAAP” or the “Company”) with the Securities and Exchange Commission. The Company is filing this report on Form 6-K for the purpose of filing a copy of the Company’s unaudited condensed consolidated interim financial statements for the three and six-month period ended June 30, 2022 and 2021 (the “Consolidated Financial Statements”) as Exhibit 99.1. The Consolidated Financial Statements are presented in U.S. Dollars and prepared in accordance with IAS 34, “Interim Financial Reporting”. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2021, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (“IASB”) and the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”).

 

 

 

 

Exhibits

 

Exhibit No.   Description
99.1   CAAP Unaudited Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021.

 

 

 

 

SIGNATURES

 

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

 

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

 

Date: August 19, 2022

 

 

 


 

Exhibit 99.1

 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

Corporación América Airports S.A.

 

CONDENSED CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

 

For the three and six-month period ended June 30, 2022 and 2021

 

R.C.S. Luxembourg B 174.140

 

4, rue de la Grève

L-1643, Luxembourg

 

 

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

 

      For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
      2022   2021   2022   2021 
   Notes  Unaudited   Unaudited   Unaudited   Unaudited 
Revenue  4   332,656    135,264    596,530    279,099 
Cost of services  5   (234,902)   (137,400)   (416,627)   (280,463)
Gross income / (loss)      97,754    (2,136)   179,903    (1,364)
Selling, general and administrative expenses  6   (28,638)   (23,433)   (60,244)   (43,174)
Impairment loss of non-financial assets  10   (6)   (75)   (6)   (75)
Other operating income  7   3,707    (107)   7,404    1,631 
Other operating expenses  7   (729)   (1,495)   (1,584)   (11,224)
Operating income / (loss)      72,088    (27,246)   125,473    (54,206)
Share of loss in associates      (293)   (98)   (546)   (98)
Income / (loss) before financial results and income tax      71,795    (27,344)   124,927    (54,304)
Financial income  8   25,766    8,828    36,447    16,024 
Financial loss  8   (44,838)   (15,271)   (101,389)   (57,586)
Inflation adjustment  8   5,117    1,237    19,649    (3,455)
Income / (loss) before income tax      57,840    (32,550)   79,634    (99,321)
Income tax  9   13,764    (22,101)   8,033    (23,114)
Income / (loss) for the period from continuing operations      71,604    (54,651)   87,667    (122,435)
Loss for the period from discontinued operations  19   -    (793)   -    (1,249)
Income / (loss) for the period      71,604    (55,444)   87,667    (123,684)
Attributable to:                       
Owners of the parent      69,855    (33,974)   97,650    (78,688)
Non-controlling interests      1,749    (21,470)   (9,983)   (44,996)
       71,604    (55,444)   87,667    (123,684)
Earnings per share attributable to the owners of the parent                       
Weighted average number of ordinary shares (thousands)      160,749    160,612    160,743    160,381 
Continuing operations                       
Basic and diluted earnings per share      0.43    (0.20)   0.61    (0.48)
Continuing and discontinued operations                       
Basic and diluted earnings per share      0.43    (0.21)   0.61    (0.49)
Discontinued operations                       
Basic and diluted earnings per share      -    (0.01)   -    (0.01)

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
   2022   2021   2022   2021 
   Unaudited   Unaudited   Unaudited   Unaudited 
Income / (loss) for the period   71,604    (55,444)   87,667    (123,684)
                     
Items that will not be reclassified to profit or loss:                    
Remeasurements of defined benefit obligations   397    30    587    240 
Items that may be reclassified to profit or loss:                    
Share of other comprehensive income from associates   347    239    20    27 
Currency translation adjustment   77,755    28,389    74,246    44,250 
Other comprehensive income from continuing operations for the period, net of income tax   78,499    28,658    74,853    44,517 
Currency translation adjustment from discontinued operations   -    (91)   -    (198)
Other comprehensive loss from discontinued operations for the period, net of income tax   -    (91)   -    (198)
Other comprehensive income for the period   78,499    28,567    74,853    44,319 
Total comprehensive income / (loss) for the period   150,103    (26,877)   162,520    (79,365)
Attributable to:                    
Owners of the parent   136,816    (14,153)   157,350    (46,799)
Non-controlling interests   13,287    (12,724)   5,170    (32,566)
    150,103    (26,877)   162,520    (79,365)
Total comprehensive income / (loss) for the period attributable to owners of the parent arises from: 
Continuing operations   136,816    (13,269)   157,350    (45,352)
Discontinued operations   -    (884)   -    (1,447)
    136,816    (14,153)   157,350    (46,799)

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2021.

 

- 1 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED cONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 

   Notes 

At June 30,
2022

Unaudited

   At December 31,
2021
Audited
 
ASSETS             
Non-current assets             
Intangible assets, net  10   2,893,437    2,742,971 
Property, plant and equipment, net      72,705    75,480 
Right-of-use assets      11,167    12,902 
Investments in associates      2,125    2,355 
Other financial assets at fair value through profit or loss      3,059    3,344 
Other financial assets at amortized cost      8,263    15,838 
Deferred tax assets      68,837    68,867 
Other receivables      80,947    72,373 
Trade receivables      110    184 
       3,140,650    2,994,314 
Current assets             
Inventories      16,783    11,520 
Other financial assets at fair value through profit or loss      66,566    28,499 
Other financial assets at amortized cost      46,788    46,800 
Other receivables      50,184    66,421 
Current tax assets      10,563    14,450 
Derivative financial instruments current assets      -    137 
Trade receivables      106,155    82,707 
Cash and cash equivalents  11   334,915    375,783 
       631,954    626,317 
Total assets      3,772,604    3,620,631 
              
EQUITY  14          
Share capital      163,223    163,223 
Share premium      183,430    183,430 
Treasury shares      (4,720)   (4,772)
Free distributable reserve      378,910    378,910 
Non-distributable reserve      1,358,028    1,358,028 
Currency translation adjustment      (262,143)   (321,647)
Legal reserves      1,081    1,081 
Other reserves      (1,320,824)   (1,321,211)
Retained earnings      130,437    32,689 
Total attributable to owners of the parent      627,422    469,731 
Non-controlling interests      122,418    303,877 
Total equity      749,840    773,608 
              
LIABILITIES             
Non-current liabilities             
Borrowings  12   1,302,735    1,018,337 
Deferred tax liabilities      218,802    227,421 
Other liabilities  13   859,178    743,799 
Lease liabilities      6,665    8,484 
Trade payables      1,845    6,695 
       2,389,225    2,004,736 
Current liabilities             
Borrowings  12   216,837    421,266 
Other liabilities  13   310,915    284,826 
Lease liabilities      3,700    3,765 
Derivative financial instruments liabilities      216    - 
Current tax liabilities      6,247    16,188 
Trade payables      95,624    116,242 
       633,539    842,287 
Total liabilities      3,022,764    2,847,023 
Total equity and liabilities      3,772,604    3,620,631 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2021.

 

- 2 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 

   Attributable to owners of the parent     
   Share
capital
   Share
premium
   Treasury
shares
   Free
distributable
reserves
   Non-distributable
reserves
   Legal
reserves
   Currency
translation
adjustment
   Other
reserves
   Retained
earnings
(1)
   Total   Non-controlling
interests
   Total 
Balance at January 1, 2022   163,223    183,430    (4,772)   378,910    1,358,028    1,081    (321,647)   (1,321,211)   32,689    469,731    303,877    773,608 
Income / (loss) for the period   -    -    -    -    -    -    -    -    97,650    97,650    (9,983)   87,667 
Other comprehensive income / (loss) for the period   -    -    -    -    -    -    59,504    196    -    59,700    15,153    74,853 
Share-based payments reserve (Note 14.a)             52                        191    98    341    -    341 
Redemption of preferred shares (Note 14.c)   -    -    -    -    -    -    -    -    -    -    (180,130)   (180,130)
Dividends paid to non-controlling interests in subsidiaries   -    -    -    -    -    -    -    -    -    -    (6,499)   (6,499)
Balance at June 30, 2022   163,223    183,430    (4,720)   378,910    1,358,028    1,081    (262,143)   (1,320,824)   130,437    627,422    122,418    749,840 
                                                             
Balance at January 1, 2021   163,223    183,430    (6,145)   378,910    1,358,028    176    (417,272)   (1,321,142)   150,202    489,410    315,876    805,286 
Loss for the period   -    -    -    -    -    -    -    -    (78,688)   (78,688)   (44,996)   (123,684)
Other comprehensive income for the period   -    -    -    -    -    -    31,787    102    -    31,889    12,430    44,319 
Transfer to legal reserve   -    -    -    -    -    905    -    -    (905)   -    -    - 
Transfer of treasury shares to key employees (Note 14.a)   -    -    1,133    -    -    -    -    (1,800)   667    -    -    - 
Changes of non-controlling interests   -    -    -    -    -    -    -    -    -    -    642    642 
Balance at June 30, 2021   163,223    183,430    (5,012)   378,910    1,358,028    1,081    (385,485)   (1,322,840)   71,276    442,611    283,952    726,563 

 

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

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2021.

 

- 3 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 

      For the six-month period
ended June 30,
 
   Notes 

2022

Unaudited

  

2021

Unaudited

 
Cash flows from operating activities             
Income / (loss) for the period from continuing operations      87,667    (122,435)
Adjustments for:             
Amortization and depreciation      86,988    78,734 
Deferred income tax  9   (18,520)   21,603 
Current income tax  9   10,487    1,511 
Share of loss in associates      546    98 
Impairment loss of non-financial assets  10   6    75 
Loss on disposals of property, plant and equipment      125    45 
Unpaid concession fees      28,373    31,260 
Low value, short term and variable lease payments      (726)   (416)
Changes in liability for concessions  8   71,164    46,217 
Share base compensation expenses      341    - 
Collection of government grants      10,020    - 
Interest expenses  8   101,851    59,870 
Other financial results, net      (23,212)   (11,713)
Net foreign exchange  8   (84,963)   (53,823)
Other accruals      (7,744)   3,418 
Inflation adjustment      13,580    (5,794)
Government grants  7.1   571    2,936 
Acquisition of intangible assets  10-17   (45,697)   (42,240)
Income tax paid      (16,649)   (1,487)
Changes in working capital  17   (204,574)   (683)
Net cash provided by operating activities      9,634    7,176 
Net cash used in discontinued operating activities      -    - 
              
Cash flows from investing activities             
Cash contribution in associates      (257)   (189)
Net acquisition of subsidiaries      -    10 
Acquisition of other financial assets      (126,086)   (19,972)
Disposals of other financial assets      95,468    12,781 
Acquisition of property, plant and equipment      (3,713)   (4,473)
Acquisition of intangible assets  10   (412)   (160)
Proceeds from property, plant and equipment      201    139 
Other      272    592 
Net cash used in investing activities      (34,527)   (11,272)
Net cash used in discontinued investing activities  19   (6,100)   - 

 

Cash flows from financing activities

             
Proceeds from borrowings  12   268,772    90,879 
Guarantee deposits      (401)   (1,194)
Principal elements of lease payments      (2,155)   (2,322)
Loans paid  12   (173,733)   (110,421)
Interest paid  12   (60,097)   (35,036)
Debt renegotiation expenses capitalization  12   (1,578)   (552)
Dividends paid to non-controlling interests in subsidiaries      (6,499)   - 
Other      6    (4)
Net cash provided by / (used in) financing activities      24,315    (58,650)
Net cash used in discontinued financing activities      -    - 
              
Decrease in cash and cash equivalents from continuing operations      (578)   (62,746)
Decrease in cash and cash equivalents from discontinued operations      (6,100)   - 

 

Movements in cash and cash equivalents

             
At the beginning of the period      375,783    281,031 
Effects of exchange rate changes and inflation adjustment on cash and cash equivalents      (34,190)   (8,001)
Decrease in cash and cash equivalents from continuing operations      (578)   (62,746)
Decrease in cash and cash equivalents from discontinued operations      (6,100)   - 
At the end of the period  11   334,915    210,284 

 

The accompanying notes are an integral part of these Condensed Consolidated Interim Financial Statements. These Condensed Consolidated Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the year ended December 31, 2021.

 

- 4 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

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

 

- 5 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

1        General information and significant event of the period

 

1.1 General information

 

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

 

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

 

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

 

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

 

A list of the principal Group’s subsidiaries is included in Note 2 of the Consolidated Financial Statements as of December 31, 2021.

 

These Condensed Consolidated Interim Financial Statements have been approved for issuance by the Board of Directors on August 18, 2022.

 

1.2 Significant events of the period

 

1.2.1 Conflict between Russia and Ukraine

 

Russia´s war against neighboring Ukraine continues to disrupt international travel from and to Russia and Ukraine and other destinations as the flights to Russia have been banned by Western countries and by the European Union, Russia has closed its skies for carriers registered in Western countries and carriers avoid overflying the war zone. It is likely that this war will continue to disrupt supply chains, cause instability in the global economy and disrupt international travel to/from airports operated by the Company, in particular those located in Armenia.

 

In addition, following Russia’s invasion of Ukraine, sanctions have been announced and implemented against Russia, including, among others, travel bans and asset freezes impacting businesses, financial organizations and individuals of Russian origin some of which have been tightened as the war intensified. Wider sanctions and other actions could be imposed if the conflict further escalates.

 

During the first half of the year, there has been an increase in traffic in Armenia above internal projections, nevertheless and considering the uncertainty of the extension of the war and the additional measures and sanctions that could be imposed, the full extent by which the war will impact the Company’s business, results of operations, financial position and liquidity is unknown. The Company is closely monitoring the situation.

 

1.2.2 Covid-19 pandemic

 

Although Covid-19 virus continues to have an impact on the aviation industry, there was an increase in traffic across all countries in 2022 compared with the same period of previous year as travel restrictions imposed as a result of the pandemic have been lifted, mainly as from the second semester of 2021.

 

CAAP total passenger traffic as of June 30, 2022, increased 138.4% compared to the same period in 2021 with 28.6 million passengers served (12.0 million passengers served in 2021).

 

- 6 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2         Basis of presentation and accounting policies

 

Basis of presentation

 

These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies used in the preparation of these Condensed Consolidated Interim Financial Statements are consistent with those used in the audited Consolidated Financial Statements for the year ended December 31, 2021. These policies have been consistently applied to all the periods presented, unless otherwise stated. These Condensed Consolidated Interim Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2021, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (“IASB”) and the Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”).

 

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

 

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

 

In the preparation of these Condensed Consolidated Interim Financial Statements, the significant areas of judgment by management in the application of the Group’s accounting policies and the main areas of assumptions and estimates are consistent with those applied in the Consolidated Financial Statements for the year ended December 31, 2021.

 

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

 

There were no changes in valuation techniques during the period and there were no changes in risk management policies since the end of the year ended December 31, 2021.

 

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

 

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

 

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

 

The estimated price index as of June 30, 2022 was 792.31 (582.46 as of December 31, 2021) and the conversion factor derived from the indexes for the six-month period ended June 30, 2022, was 1.36 (1.25 for the six-month period ended June 30, 2021).

 

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

 

The ongoing application of the re-translation of comparative amounts to closing exchanges rates under IAS 21 and the inflation adjustments required by IAS 29 will lead to a difference because the rate at which the hyper-inflationary currency depreciates against a stable currency is rarely equal to the rate of inflation. The inflation adjustment and the translation of comparative amounts in the current period is included in Other comprehensive income/(loss) for the period line.

 

- 7 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

2         Basis of presentation and accounting policies (Cont.)

 

Basis of presentation (Cont.)

 

This re-translation changes every prior reported quarterly consolidated statement of income in U.S. dollars, as a result, the impact of quarterly inflation adjustments and quarterly translation adjustments vary the results of operation quarter to quarter until year-end.

 

New and amended standards adopted by the Group

 

A number of new or amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

 

3        Segment information

 

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

 

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

 

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

 

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

 

The information regarding the Group’s reportable operating segments is consistent with the information presented in Notes 2.V and 4 included in our audited Consolidated Financial Statements for the year ended December 31, 2021 and should be read in conjunction with them.

 

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

 

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

 

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

 

- 8 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy         
For the three-month period ended June 30, 2022 (Unaudited)  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Intrasegment
 adjustments
   Unallocated   Total 
Aeronautical revenue (*)   80,552    -    8,158    -    10,273    -    13,578    16,746    21,529    -    -    150,836 
Non-aeronautical revenue (*)                                                            
Commercial revenue   76,188    79    12,378    -    8,654    5,127    36,924    6,276    8,376    (2,727)   850    152,125 
Construction service revenue   24,631    -    -    -    1,212    -    160    -    1,846    -    -    27,849 
Other revenue   -    -    -    -    3    -    -    -    1,843    (427)   427    1,846 
Cost of services   (125,584)   (22)   (18,596)   -    (11,711)   (3,850)   (35,151)   (13,244)   (26,216)   2,449    (2,977)   (234,902)
Gross profit / (loss)   55,787    57    1,940    -    8,431    1,277    15,511    9,778    7,378    (705)   (1,700)   97,754 
Selling, general and administrative expenses   (7,944)   (34)   (2,493)   (133)   (3,325)   (490)   (3,231)   (4,038)   (4,112)   705    (3,543)   (28,638)
Impairment loss of non-financial assets   -    -    -    -    -    -    -    -    (6)   -    -    (6)
Other operating income   3,906    -    (158)   -    109    -    30    -    (180)   -    -    3,707 
Other operating expenses   (238)   -    (64)   -    (216)   -    (207)   (4)   -    -    -    (729)
Operating income / (loss)   51,511    23    (775)   (133)   4,999    787    12,103    5,736    3,080    -    (5,243)   72,088 
Share of loss in associates   (19)   -    -    -    -    -    -    -    (271)   -    (3)   (293)
Amortization and depreciation   22,445    -    2,833    -    1,501    318    4,247    1,613    2,776    -    3,054    38,787 
Adjusted Ebitda   73,937    23    2,058    (133)   6,500    1,105    16,350    7,349    5,585    -    (2,192)   110,582 
Construction services revenue   (24,631)   -    -    -    (1,212)   -    (160)   -    (1,846)   -    -    (27,849)
Construction services cost   24,580    -    -    -    1,212    -    156    -    1,585    -    -    27,533 
Adjusted Ebitda excluding Construction Services   73,886    23    2,058    (133)   6,500    1,105    16,346    7,349    5,324    -    (2,192)   110,266 
Construction services revenue   24,631    -    -    -    1,212    -    160    -    1,846    -    -    27,849 
Construction services cost   (24,580)   -    -    -    (1,212)   -    (156)   -    (1,585)   -    -    (27,533)
Adjusted Ebitda   73,937    23    2,058    (133)   6,500    1,105    16,350    7,349    5,585    -    (2,192)   110,582 
Financial income                                                          25,766 
Financial loss                                                          (44,838)
Inflation adjustment                                                          5,117 
Amortization and depreciation                                                          (38,787)
Income before income tax expense                                                          57,840 
Income tax                                                          13,764 
Income from continuing operations                                                          71,604 
Loss from discontinued operations                                                          - 
Income for the period                                                          71,604 

 

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

 

- 9 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy         
For the three-month period ended June 30, 2021 (Unaudited)  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Intrasegment  
adjustments
   Unallocated   Total 
Aeronautical revenue (*)   14,449    -    3,999    -    2,060    -    9,490    9,996    5,711    -    -    45,705 
Non-aeronautical revenue (*)                                                            
  Commercial revenue   45,391    42    7,511    -    4,068    4,540    8,966    3,967    3,772    (2,190)   478    76,545 
  Construction service revenue   4,664    -    -    -    2,005    -    424    -    5,557    -    -    12,650 
  Other revenue   -    -    -    -    8    -    -    -    356    (140)   140    364 
Cost of services   (67,290)   (16)   (14,475)   -    (10,350)   (3,041)   (10,449)   (10,274)   (20,376)   1,907    (3,036)   (137,400)
Gross (loss) / profit   (2,786)   26    (2,965)   -    (2,209)   1,499    8,431    3,689    (4,980)   (423)   (2,418)   (2,136)
Selling, general and administrative expenses   (8,388)   (35)   (2,564)   (99)   (1,573)   (369)   (2,404)   (2,438)   (3,232)   423    (2,754)   (23,433)
Impairment loss of non-financial assets   -    -    -    -    -    -    -    -    (75)   -    -    (75)
Other operating income   1,761    -    (2,740)   -    36    -    27    1    808    -    -    (107)
Other operating expenses   (229)   -    (1,062)   -    (29)   (1)   (172)   (2)   -    -    -    (1,495)
Operating (loss)/ income   (9,642)   (9)   (9,331)   (99)   (3,775)   1,129    5,882    1,250    (7,479)   -    (5,172)   (27,246)
Share of loss in associates   -    -    -    -    -    -    -    -    91    -    (189)   (98)
Amortization and depreciation   18,522    -    2,413    -    3,053    253    3,460    1,950    2,987    -    3,243    35,881 
Adjusted Ebitda   8,880    (9)   (6,918)   (99)   (722)   1,382    9,342    3,200    (4,401)   -    (2,118)   8,537 
Construction services revenue   (4,664)   -    -    -    (2,005)   -    (424)   -    (5,557)   -    -    (12,650)
Construction services cost   4,636    -    -    -    2,005    -    412    -    5,008    -    -    12,061 
Adjusted Ebitda excluding Construction Services   8,852    (9)   (6,918)   (99)   (722)   1,382    9,330    3,200    (4,950)   -    (2,118)   7,948 
Construction services revenue   4,664    -    -    -    2,005    -    424    -    5,557    -    -    12,650 
Construction services cost   (4,636)   -    -    -    (2,005)   -    (412)   -    (5,008)   -    -    (12,061)
Adjusted Ebitda   8,880    (9)   (6,918)   (99)   (722)   1,382    9,342    3,200    (4,401)   -    (2,118)   8,537 
Financial income                                                          8,828 
Financial loss                                                          (15,271)
Inflation adjustment                                                          1,237 
Amortization and depreciation                                                          (35,881)
Loss before income tax expense                                                          (32,550)
Income tax                                                          (22,101)
Loss from continuing operations                                                          (54,651)
Loss from discontinued operations                                                          (793)
Loss for the period                                                          (55,444)

 

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

 

- 10 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy         
For the six-month period ended June 30, 2022 (Unaudited)  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Intrasegment
Adjustments
   Unallocated   Total 
Aeronautical revenue (*)   147,336    -    16,282    -    21,309    -    23,936    32,437    31,394    -    -    272,694 
Non-aeronautical revenue (*)                                                            
Commercial revenue   150,651    125    25,009    -    18,621    9,916    53,383    11,921    13,466    (5,214)   1,618    279,496 
Construction service revenue   36,337    -    -    -    1,815    -    497    -    3,331    -    -    41,980 
Other revenue   -    -    -    -    5    -    -    -    2,355    (800)   800    2,360 
Cost of services   (226,679)   (38)   (34,561)   -    (21,684)   (7,174)   (53,004)   (26,016)   (46,187)   4,650    (5,934)   (416,627)
Gross profit / (loss)   107,645    87    6,730    -    20,066    2,742    24,812    18,342    4,359    (1,364)   (3,516)   179,903 
Selling, general and administrative expenses   (20,944)   (66)   (6,428)   (154)   (6,039)   (904)   (6,191)   (7,656)   (7,336)   1,364    (5,890)   (60,244)
Impairment loss of non-financial assets   -    -    -    -    -    -    -    -    (6)   -    -    (6)
Other operating income   7,390    -    (113)   -    140    -    51    8    (80)   -    8    7,404 
Other operating expenses   (600)   -    (373)   -    (251)   (2)   (349)   (9)   -    -    -    (1,584)
Operating income / (loss)   93,491    21    (184)   (154)   13,916    1,836    18,323    10,685    (3,063)   -    (9,398)   125,473 
Share of loss in associates   (19)   -    -    -    -    -    -    -    (271)   -    (256)   (546)
Amortization and depreciation   44,674    -    5,629    -    3,217    624    8,120    3,222    5,697    -    6,096    77,279 
Adjusted Ebitda   138,146    21    5,445    (154)   17,133    2,460    26,443    13,907    2,363    -    (3,558)   202,206 
Construction services revenue   (36,337)   -    -    -    (1,815)   -    (497)   -    (3,331)   -    -    (41,980)
Construction services cost   36,247    -    -    -    1,815    -    482    -    2,700    -    -    41,244 
Adjusted Ebitda excluding Construction Services   138,056    21    5,445    (154)   17,133    2,460    26,428    13,907    1,732    -    (3,558)   201,470 
Construction services revenue   36,337    -    -    -    1,815    -    497    -    3,331    -    -    41,980 
Construction services cost   (36,247)   -    -    -    (1,815)   -    (482)   -    (2,700)   -    -    (41,244)
Adjusted Ebitda   138,146    21    5,445    (154)   17,133    2,460    26,443    13,907    2,363    -    (3,558)   202,206 
Financial income                                                          36,447 
Financial loss                                                          (101,389)
Inflation adjustment                                                          19,649 
Amortization and depreciation                                                          (77,279)
Income before income tax expense                                                          79,634 
Income tax                                                          8,033 
Income from continuing operations                                                          87,667 
Loss from discontinued operations                                                          - 
Income for the period                                                          87,667 
                                                             
June 30, 2022 (Unaudited)                                                            
Current assets   277,558    84    41,681    59    31,781    4,969    56,418    34,727    78,113    (73,131)   179,695    631,954 
Non-current assets   1,539,312    30    697,221    -    146,824    7,576    169,917    57,742    250,795    (768)   272,001    3,140,650 
Capital Expenditure   36,338    -    936    -    5,316    337    2,564    420    3,989    -    -    49,900 
Current liabilities   268,748    23    154,482    1    17,727    2,998    44,150    28,397    115,418    (73,131)   74,726    633,539 
Non-current liabilities   832,427    -    967,023    -    56,814    1,238    17,735    16,806    117,390    (768)   380,560    2,389,225 

 

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

 

- 11 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

3        Segment information (Cont.)

 

   Argentina   Brazil   Uruguay   Armenia   Ecuador   Italy         
For the six-month period ended June 30, 2021 (Unaudited)  Airports   Others   Airports   Others   Airports   Others   Airports   Airports   Airports   Intrasegment
Adjustments
   Unallocated   Total 
Aeronautical revenue (*)   35,142    -    8,853    -    3,876    -    15,657    18,564    7,720    -    -    89,812 
Non-aeronautical revenue (*)                                                            
Commercial revenue   90,478    89    15,166    -    8,039    8,376    13,847    7,677    6,653    (4,089)   906    147,142 
Construction service revenue   29,163    -    -    -    2,517    -    478    752    8,658    -    -    41,568 
Other revenue   0    -    -    -    9    -    -    -    568    (253)   253    577 
Cost of services   (149,614)   (30)   (28,862)   -    (18,499)   (5,745)   (18,434)   (20,250)   (36,466)   3,548    (6,111)   (280,463)
Gross profit / (loss)   5,169    59    (4,843)   -    (4,058)   2,631    11,548    6,743    (12,867)   (794)   (4,952)   (1,364)
Selling, general and administrative expenses   (14,819)   (65)   (5,096)   (118)   (3,191)   (635)   (4,714)   (4,553)   (6,127)   794    (4,650)   (43,174)
Impairment loss of non-financial assets   -    -    -    -    -    -    -    -    (75)   -    -    (75)
Other operating income   3,384    -    (2,695)   -    76    15    40    3    808    -    -    1,631 
Other operating expenses   (8,944)   -    (1,455)   -    (43)   (1)   (387)   (4)   -    -    (390)   (11,224)
Operating (loss) / income   (15,210)   (6)   (14,089)   (118)   (7,216)   2,010    6,487    2,189    (18,261)   -    (9,992)   (54,206)
Share of loss in associates   -    -    -    -    -    -    -    -    91    -    (189)   (98)
Amortization and depreciation   35,430    -    4,794    -    6,213    508    6,917    3,770    6,110    -    6,526    70,268 
Adjusted Ebitda   20,220    (6)   (9,295)   (118)   (1,003)   2,518    13,404    5,959    (12,060)   -    (3,655)   15,964 
Construction services revenue   (29,163)   -    -    -    (2,517)   -    (478)   (752)   (8,658)   -    -    (41,568)
Construction services cost   29,110    -    -    -    2,517    -    464    752    7,691    -    -    40,534 
Adjusted Ebitda excluding Construction services   20,167    (6)   (9,295)   (118)   (1,003)   2,518    13,390    5,959    (13,027)   -    (3,655)   14,930 
Construction services revenue   29,163    -    -    -    2,517    -    478    752    8,658    -    -    41,568 
Construction services cost   (29,110)   -    -    -    (2,517)   -    (464)   (752)   (7,691)   -    -    (40,534)
Adjusted Ebitda   20,220    (6)   (9,295)   (118)   (1,003)   2,518    13,404    5,959    (12,060)   -    (3,655)   15,964 
Financial income                                                          16,024 
Financial loss                                                          (57,586)
Inflation adjustment                                                          (3,455)
Amortization and depreciation                                                          (70,268)
Loss before income tax expense                                                          (99,321)
Income tax                                                          (23,114)
Loss from continuing operations                                                          (122,435)
Loss from discontinued operations                                                          (1,249)
Loss for the period                                                          (123,684)
                                                             
December 31, 2021 (Audited)                                                            
Current assets   232,737    82    41,384    27    21,436    4,264    71,315    43,357    101,116    (60,620)   171,219    626,317 
Non-current assets   1,395,707    27    670,006    114    144,164    7,863    148,838    57,798    274,947    (768)   295,618    2,994,314 
Capital Expenditure   53,501    -    1,838    -    5,511    2,556    7,629    779    19,927    -    -    91,741 
Current liabilities   284,442    40    328,750    -    12,345    3,180    30,067    35,749    117,933    (60,620)   90,401    842,287 
Non-current liabilities   684,460    -    663,012    -    60,225    2,010    41,309    20,051    141,898    (768)   392,539    2,004,736 

 

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

 

- 12 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

4        Revenue

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Aeronautical revenue   150,836    45,705    272,694    89,812 
Non-aeronautical revenue                    
Commercial revenue   152,125    76,545    279,496    147,142 
Construction service revenue   27,849    12,650    41,980    41,568 
Other revenue   1,846    364    2,360    577 
    332,656    135,264    596,530    279,099 

 

Timing of revenue recognition                
Over time   247,623    106,303    444,282    224,593 
At a point in time   30,378    5,093    42,479    7,730 
Revenues accounted for under IFRS 16   54,655    23,868    109,769    46,776 
Revenue   332,656    135,264    596,530    279,099 

 

5        Cost of services

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Salaries and social security contributions   (54,094)   (33,410)   (96,189)   (64,591)
Concession fees (1)   (39,369)   (20,726)   (74,780)   (39,914)
Amortization and depreciation (2)   (36,890)   (33,797)   (73,525)   (66,048)
Construction services cost   (27,533)   (12,061)   (41,244)   (40,534)
Cost of fuel   (27,074)   (4,229)   (37,632)   (6,623)
Maintenance expenses   (26,268)   (19,068)   (50,695)   (35,494)
Services and fees   (14,358)   (9,874)   (27,924)   (19,199)
Office expenses   (2,420)   (1,139)   (4,070)   (2,058)
Taxes   (988)   (660)   (1,936)   (1,439)
Provision for maintenance costs   (950)   (681)   (1,825)   (1,025)
Others   (4,958)   (1,755)   (6,807)   (3,538)
    (234,902)   (137,400)   (416,627)   (280,463)

 

(1) Includes depreciation for fixed concession assets fee of USD 10,677 as of June 30, 2022 (USD 8,155 as of June 30, 2021).

(2) Includes depreciation of leases of USD 1,756 as of June 30, 2022 (USD 1,428 as of June 30, 2021).

 

6        Selling, general and administrative expenses

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Taxes (1)   (12,661)   (5,165)   (21,801)   (9,848)
Services and fees   (9,931)   (6,937)   (18,164)   (13,610)
Salaries and social security contributions   (8,995)   (4,959)   (15,797)   (9,129)
Amortization and depreciation (2)   (1,897)   (2,084)   (3,754)   (4,220)
Insurance   (587)   (550)   (1,166)   (1,084)
Office expenses   (730)   (261)   (1,177)   (570)
Maintenance expenses   (513)   (136)   (876)   (241)
Advertising   (381)   (58)   (556)   (182)
Bad debts   (3,452)   (3,651)   (8,182)   (6,018)
Bad debts recovery (3)   12,353    1,879    14,892    4,047 
Other   (1,844)   (1,511)   (3,663)   (2,319)
    (28,638)   (23,433)   (60,244)   (43,174)

 

(1) Mainly includes taxes over bank transactions and tax on revenue.

(2) Includes depreciation of leases of USD 488 as of June 30, 2022 (USD 473 as of June 30, 2021).

(3) During 2022 mainly includes recoveries in Argentina, as detailed in Note 15.a.

 

- 13 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

7       Other operating results

 

7.1       Other operating income

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Government grant (*)   3,839    1,470    7,317    3,092 
Government subsidies per Covid-19 context (**)   (571)   (2,936)   (571)   (2,936)
Other   439    1,359    658    1,475 
    3,707    (107)   7,404    1,631 

 

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

 

(**)As stated in Note 8 of the Consolidated Financial Statements as of December 31, 2021, due to the impact generated by the pandemic, the Brazilian subsidiaries filed a claim for economic-financial re-equilibrium of its concession contracts. This was possible due to the Brazilian Government recognition that the Covid-19 pandemic is a case of "force majeure" or "fortuitous event" concluding that the loss from the impact of the pandemic is not part of the risks assumed by the private sector and must be compensated by the Federal Government. In view of this, Agência Nacional de Aviação Civil (“ANAC”) defined as a condition for this re-equilibrium the compensation according to the companies projected operational result in the scenario without pandemic.

 

 In December 2021 and 2020, the ANAC approved the extraordinary revision of the Concession Agreements of the Brasília and Natal Airport due to the damages caused by the Covid-19 pandemic in order to reconstitute its economic-financial balance considering a preliminary estimation as of year-end.

 

 In June 2022, the final amount referring to the reconstitution for the year 2021 for the Natal airport was determined, resulting in a reversal of USD 209 compared to the amount that was initially estimated and recognized as an Other operating income as of December 31, 2021.

 

 In June 2021, the final amount referring to the reconstitution for the year 2020 was determined, resulting in a reversal of USD 2,936 (USD 2,569 and USD 367 related to Brasilia and Natal airports respectively) compared to the amount that was initially estimated and recognized as an Other operating income as of December 31, 2020.

 

 In June 2022, the final amount referring to the compensation granted to Toscana Aeroporti S.p.A. was determined, resulting in a reversal of approximately € 339 thousand (equivalent to USD 362).

 

7.2       Other operating expenses

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Other operating loss (*)   (729)   (1,495)   (1,584)   (11,224)

 

(*) As of June 30, 2021, mainly includes Argentine legal proceedings as detailed in Note 26.a. of the audited Consolidated Financial Statements as of December 31, 2021.

 

- 14 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

8        Financial results, net

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Interest income   14,288    5,587    24,005    11,594 
Foreign exchange income   7,144    479    7,262    729 
Other financial income   4,334    2,762    5,180    3,701 
Financial income   25,766    8,828    36,447    16,024 
                     
Interest expense   (49,107)   (30,284)   (101,851)   (59,870)
Foreign exchange loss   40,156    39,484    77,701    53,094 
Changes in liability for concessions (1)   (33,007)   (22,171)   (71,164)   (46,217)
Other financial loss   (2,880)   (2,300)   (6,075)   (4,593)
Financial loss   (44,838)   (15,271)   (101,389)   (57,586)
                     
Inflation adjustment   5,117    1,237    19,649    (3,455)
Inflation adjustment   5,117    1,237    19,649    (3,455)
Net financial results   (13,955)   (5,206)   (45,293)   (45,017)

 

(1) Corresponds to changes in the liabilities of Brazilian concessions due to passage of time and inflation adjustment.

 

9        Income tax

 

   For the three-month period
ended June 30,
   For the six-month period
ended June 30,
 
  

2022

(Unaudited)

  

2021

(Unaudited)

  

2022

(Unaudited)

  

2021

(Unaudited)

 
Current income tax   (6,740)   (789)   (10,487)   (1,511)
Deferred income tax   20,504    (21,312)   18,520    (21,603)
    13,764    (22,101)   8,033    (23,114)

 

In June 2021, Law 27,630 was issued in Argentina, which sets gradual percentages over net income for the determination of the income tax. Both, current income tax and deferred income tax of Argentinean companies was calculated considering these new percentages.  

 

On May 23, 2022, AA2000 presented the tax filling for year 2021, charging the computable tax losses from previous years in accordance with the restated mechanism provided by the tax laws in Argentina.

 

- 15 -

Corporación América Airports S.A. Condensed Consolidated Interim Financial Statements for the three and six-month period ended June 30, 2022 and 2021 (amounts in thousands of U.S. dollars except share data or as otherwise indicated).

 

10        Intangible assets, net

   Concession
Assets
   Goodwill   Patent,
intellectual
property rights
and others
   Total 
Cost                    
Balances at January 1, 2022   4,243,258    9,543    22,812    4,275,613 
Acquisitions   45,775    -    412    46,187 
Impairment   (6)   -    -    (6)
Disposals   (240)   -    -    (240)
Transfers   (55)   -    55    - 
Transfer of concession assets to the grantor (*)   (7,956)   -    -    (7,956)
Transfer to property, plant and equipment   (2)   -    -    (2)
Translation differences and inflation adjustment   303,625    (774)   (1,383)   301,468 
    4,584,399    8,769    21,896    4,615,064 
Depreciation                    
Accumulated at January 1, 2022   1,512,731    -    19,911    1,532,642 
Depreciation of the period   79,642    -    540    80,182 
Disposals   (38)   -    -    (38)
Transfer   (4)   -    4    - 
Transfer of concession assets to the grantor (*)   (1,504)   -    -    (1,504)
Translation differences and inflation adjustment   111,815    -    (1,470