Market Overview

Corporación América Airports Announces 2Q18 YoY Growth of 7.4% in Passenger Traffic and 12.9% in Adjusted EBITDA


Passenger traffic up 6.5% YoY in Argentina and 9.4% in Brazil, further
supported by growth across most countries of operations

Corporación América Airports S.A. (NYSE:CAAP), ("CAAP" or the
"Company") the largest private sector airport operator based on the
number of airports under management and the tenth largest private sector
airport operator worldwide based on passenger traffic, reported today
its unaudited, consolidated results for the three- and six-month periods
ended June 30, 2018. Financial results are expressed in millions of U.S.
dollars and are prepared in conformity with International Accounting
Standard 34 "Interim Financial Reporting" ("IAS 34") as issued by the
International Accounting Standards Board.

Second Quarter 2018 Highlights

  • Revenues up 3.5% YoY to $397.1 million mainly driven by Armenia,
    Argentina and Ecuador, further supported by Uruguay.
  • Growth across key operating metrics:
    • Passenger traffic up 7.4% YoY to 19.2 million
    • Cargo volume increased 10.4% to 98.2 thousand tons
    • Aircraft movements rose 5.4% to 215.5 thousand
  • Operating Income up 17.3% YoY, with operating margin increasing to
    23.7% from 20.9% in 2Q17
  • Adjusted EBITDA reached $121.1 million, up 12.9% YoY, with Adjusted
    EBITDA margin expanding 255 basis points to 30.5%

CEO Message

Commenting on the second quarter 2018 results, Mr. Martin Eurnekian, CEO
of Corporación América Airports, noted: "We reported solid results
against a challenging macro environment in some of our key markets this
quarter, evidenced in the 13% year-on-year increase in Adjusted EBITDA
and 364 basis point expansion in Ex-IFRIC Adjusted EBITDA margin to
slightly over 37%.
Total passenger traffic rose slightly over 7%
year-on-year. Despite currency depreciation and softer overall
consumption in Argentina which hurt overall travel demand, passenger
traffic in the country rose 6.5%, while traffic growth in Brazil
increased over 9%. We also saw solid traffic growth across the majority
of our countries of operations."

"Revenues, however, grew at a slower pace this quarter reflecting a
mix-shift from international to domestic passenger traffic together with
the impact of FX translation on local currency revenues in Argentina, as
well as with the impact of the currency depreciation in Brazil. By
contrast, our cost structure benefitted from the currency depreciation
in these two countries driving Adjusted EBITDA margin Ex-IFRIC expansion
of 500 basis points in Argentina and significant growth in Adjusted
EBITDA in Brazil. We also saw improvements across most of our countries
of operations."

"An important milestone in our long-term vision of value creation was
the agreement entered into with Investment Corporation of Dubai last
July, that provides a solid foundation to jointly identify and develop
new future opportunities in the airport sector in Italy, Eastern Europe
and Middle East, while keeping our focus on delivering on our growth
strategy in key markets, primarily Argentina and Brazil."

"Looking ahead to the remainder of 2018, we are cautiously optimistic
and anticipate overall healthy dynamics and continued growth across our
markets. Although we see traffic continuing to expand at lower rates in
Argentina given currency volatility, over time we expect international
inbound traffic to pick-up compensating for lower internal demand of
international travel.
In the meantime, we will continue providing
the best travel experience for passengers through our airports while
never losing sight of our focus on further strengthening our global
platform for long-term success."

Operating & Financial Highlights                        
(In millions of U.S. dollars, unless otherwise noted)                                    
      2Q18     2Q17     % Var     1H18     1H17     % Var
Passenger Traffic (Million Passengers)     19.2     17.9     7.4%     38.8     36.1     7.5%
Revenue     397.1     383.8     3.5%     787.9     737.4     6.9%
Aeronautical Revenues     185.6     183.0     1.5%     390.4     370.0     5.5%
Non-Aeronautical Revenues     211.4     200.8     5.3%     397.5     367.4     8.2%
Revenue excluding construction service     324.4     318.7     1.8%     668.7     637.8     4.8%
Operating Income     94.1     80.2     17.3%     203.7     175.4     16.1%
Operating Margin     23.7%     20.9%     279     25.8%     23.8%     207
Net Income Attributable to Owners of the Parent     -22.7     15.6     -245.2%     3.8     48.1     -92.1%
EPS (US$)     -0.14     0.11     -234.4%     0.02     0.32     -92.5%
Adjusted EBITDA     121.1     107.3     12.9%     257.9     228.8     12.7%
Adjusted EBITDA Margin     30.5%     28.0%     255     32.7%     31.0%     170
Adjusted EBITDA Margin excluding Construction Service     37.2%     33.5%     364     38.4%     35.8%     266
Net Debt to LTM EBITDA     1.98     -     -     1.98     -     -

1 Data for LTM EBITDA as of June 30, 2017 is not available as CAAP
started consolidating its results in 2H16.

To obtain the full text of this earnings release and the 2Q18
earnings presentation, please click on the following link:


When:       10:00 a.m. Eastern time, Aug 22, 2018
Who: Mr. Martín Eurnekian, Chief Executive Officer
Mr. Raúl Francos, Chief Financial Officer
Ms. Gimena Albanesi, Head of Investor Relations
Dial-in: 1-888-347-6492 (U.S. domestic); 1-412-317-5258 (international)

Replay: Participants can access the replay through August 29, 2018 by
1-877-344-7529 (U.S. domestic) and 1-412-317-0088 (international).
Replay ID: 10123316.

Use of Non-IFRS Financial Measures

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

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

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

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

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

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

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

Definitions and Concepts

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

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

About Corporación América Airports

Corporación América Airports acquires, develops and operates airport
concessions. The Company is the largest private airport operator in the
world based on the number of airports and the tenth largest based on
passenger traffic. Currently, the Company operates 52 airports in 7
countries across Latin America and Europe (Argentina, Brazil, Uruguay,
Peru, Ecuador, Armenia and Italy). In 2017, it served 76.6 million
passengers. The Company is listed on the New York Stock Exchange where
it trades under the ticker "CAAP". For more information, visit

Forward-Looking Statements

Statements relating to our future plans, projections, events or
prospects are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that are not historical facts and can
be identified by terms such as "believes," "continue," "could,"
"potential," "remain," "will," "would" or similar expressions and the
negatives of those terms. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Many factors could cause our actual
activities or results to differ materially from the activities and
results anticipated in forward-looking statements, including, but not
limited to: 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.

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