Corporación América Airports Announces 1Q19 Results

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- month period ended
March 31, 2019. Financial results are expressed in millions of U.S.
dollars and are prepared in accordance with International Accounting
Standard 34 “Interim Financial Reporting” (“IAS 34”) as issued by the
International Accounting Standards Board.

Commencing 3Q18, the Company began reporting results of its Argentinean
subsidiaries applying Hyperinflation Accounting, in accordance to IFRS
rule IAS 29 (“IAS 29”), as detailed on Section “Hyperinflation
Accounting in Argentina” on page 18.

First Quarter 2019 Highlights

• Consolidated revenues of $360.6 million, down 7.8% YoY. Excluding the
  impact of IFRS rule IAS 29, revenues declined 4.0% YoY mainly due to
  lower travel demand in Argentina reflecting difficult macro conditions
  and FX fluctuation in Argentina, Brazil and Italy, partially offset by
  revenue growth in Ecuador and Armenia
• Growth across key operating metrics:
  • Passenger traffic up 4.0% YoY to 20.4 million
  • Cargo volume increased 6.3% to 104.8 thousand tons
  • Aircraft movements declined 0.3% to 212.7 thousand
• Operating Income declined 29.9% YoY, mainly impacted by IAS 29, and
  the operating margin contracted to 21.3% from 28.0% in 1Q18
• Adjusted EBITDA was $116.9 million, down 14.5% YoY, with Adjusted
  EBITDA margin Ex-IFRIC12 contracting 86 bps to 38.7%
• Ex-IAS 29, Adjusted EBITDA declined 10.8% YoY and Adjusted EBITDA
  margin Ex-IFRIC12 contracted 61 bps to 39.0%

CEO Message

Commenting on first quarter 2019 results, Mr. Martín Eurnekian, CEO of
Corporación América Airports, noted: “Our first quarter results were
impacted by the difficult macro conditions in Argentina, our largest
market and to a lesser extent a slowdown in Brazil and Uruguay.
Passenger traffic growth decelerated which together with significant
currency depreciation in Argentina and, to a lower degree, in Brazil and
Italy, resulted in lower revenue growth. In Argentina, soft consumer
demand and sharp FX fluctuation continued to drive mix-shift to domestic
destinations and lower commercial revenues, particularly when compared
to a record quarter a year ago. In Italy, our commercial initiatives
continue to bear fruit driving sustained growth in local currency
revenues, while Brazil reported a mid-single digit increase in local
currency revenues. As a result, comparable Adjusted EBITDA Ex-IAS29,
excluding one-time items in 1Q18 and construction service margin,
declined 8.3% YoY, while the margin remained stable at 39% during the
period, reflecting better comparable margins in Argentina and Italy.

As the year progresses, our business is expected to track generally
in line with overall macro trends. Argentina, our key market, is facing
a more difficult macro environment which, together with the added
volatility from this being a Presidential election year, suggests a more
subdued economic recovery towards year-end. This is expected to weigh on
passenger traffic trends and slow revenue growth. In Brazil, traffic
will remain impacted by airline capacity adjustments and recent
reductions in GDP growth forecasts for the current year. While we face
several headwinds across key markets, we maintain a solid balance sheet
that supports our focus on advancing on our strategy and key capital
investment projects, particularly in Argentina and Italy. Noteworthy,
last April the Italian Ministry of Transportation approved the 2014-2029
Master Plan for Florence's Amerigo Vespucci Airport and we also extended
the concession agreement of the Punta del Este Airport in Uruguay for a
fourteen–year period from 2019 through 2033.”

To obtain the full text of this earnings release and the 1Q19
earnings presentation, please click on the following link: http://investors.corporacionamericaairports.com/Results-Center

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
amortization.

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

Adjusted EBITDA excluding Construction Service (“Adjusted EBITDA
ex-IFRIC”) 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-IFRIC12”) 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.

Figures ex-IAS 29 result from dividing nominal Argentine pesos
for the Argentine Segment, by the average foreign exchange rate of the
Argentine Peso against the US Dollar in the period. Percentage
variations ex-IAS 29 figures compare results as presented in the
prior year quarter before IAS 29 came into effect, against ex-IAS 29
results for this quarter as described above. For comparison purposes the
impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company’s
largest subsidiary in Argentina, is presented separately in each of the
applicable sections of this earnings release, in a column denominated
“IAS 29”. The impact from “Hyperinflation Accounting in Argentina” is
described in more detail page 18 of this report.

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.

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 2018, Corporación América Airports
served 81.3 million passengers. The Company is listed on the New York
Stock Exchange where it trades under the ticker “CAAP”. For more
information, visit http://investors.corporacionamericaairports.com

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 annual report on Form 20-F for the
year ended December 31, 2018 and any of CAAP’s other applicable filings
with the Securities and Exchange Commission for additional information
concerning factors that could cause those differences.

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