Corporaciòn America Italia Group INTERIM FINANCIAL REPORT AT 30 JUNE 2019 This report is available in the Investor Relations section of Corporaciòn America Italia Spa’s website at www.corporacionamericaitalia.com Corporaciòn America Italia S.p.a. Piazzale Martesana, 10 – 20128 Milano - www.corporacionamericaitalia.com R.E.A. [Administrative Economic Index] MI-2033297 - Fully paid-up Share Capital € 85.000.000 VAT Number and Tax Code: 08555440968 Contents 1. GROUP’S ACTIVITIES............................................................................................................ 4 2. THE OWNERS OF THE PARENT COMPANY...................................................................... 5 3. NATIONAL TAX CONSOLIDATION .................................................................................... 5 4. MACROSTRUCTURE OF THE GROUP ............................................................................... 6 5. HIGHLIGHTS ........................................................................................................................... 7 6. THE MACROECONOMIC SCENARIO AND THE AIR TRANSPORT INDUSTRY .......... 8 7. TRENDS IN THE TUSCAN AIRPORT SYSTEM’S TRAFFIC ............................................. 8 7.1 Traffic trends in the Pisa ”Galileo Galilei” airport ................................................................ 11 7.2 Traffic trends in the Florence ”Amerigo Vespucci” airport ............................................... 15 8. SIGNIFICANT EVENTS OF THE FIRST 6 MONTHS OF 2019 ......................................... 18 9.1 Consolidated Income Statement ......................................................................................... 20 9.2 Consolidated Statement of Financial Position .................................................................... 23 9.3 Analysis of financial flows ................................................................................................. 25 9.4 Consolidated Net Financial Position................................................................................... 27 10. THE GROUP’S INVESTMENTS ......................................................................................... 28 11. HUMAN RESOURCES ........................................................................................................ 30 12. RELATIONSHIPS WITH THE OTHER ENTITIES OF THE GROUP AND WITH RELATED PARTIES .................................................................................................................. 31 13. INFORMATION ON THE SUBHOLDING, ITS SUBSIDIARIES AND THEIR RELATIONSHIPS ....................................................................................................................... 33 13.1 Toscana Aeroporti SpA ...................................................................................................... 33 13.2 Parcheggi Peretola s.r.l. ...................................................................................................... 35 13.3 Toscana Aeroporti Engineering S.r.l. ................................................................................. 36 13.4 Jet Fuel Co. S.r.l. ................................................................................................................. 37 13.5 Toscana Aeroporti Handling S.r.l. ...................................................................................... 37 14. MAIN RISKS AND UNCERTAINTIES TO WHICH THE GROUP IS EXPOSED ........... 38 15. SIGNIFICANT EVENTS OCCURRED AFTER THE CLOSING OF THE PERIOD AT 30 June 2019 ..................................................................................................................................... 41 2 16. OUTLOOK ............................................................................................................................ 41 CONSOLIDATED INTERIM FINANCIAL REPORT (ABRIDGED) FOR THE PERIOD CLOSED ON 30 JUNE 2019....................................................................................................... 42 EXPLANATORY NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT AT 30-06-2019 ...................................................................................... 51 ANNEXES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT 2019 .............................................................................................................................................. 83 3 Dear Shareholders, This consolidated half-year financial report is composed of the management report, which contains the Directors' comments on the management performance and on the evolution of the business during the first half of 2019 and from the condensed consolidated half-year financial statements. The valuation and measurement criteria adopted for the preparation of the Consolidated Interim Financial Report (Abridged) included in the Consolidated Interim Financial Report at 30 June 2019 are those required by the International Financial Reporting Standard (IFRS) issued by the International Accounting Standard Board (IASB) and adopted by the European Commission according to the procedure described in Art. 16 of European Regulation no. 1606/2002 of the European Parliament and of the Council of 19 July 2002, with particular reference to IAS 34 concerning interim financial reporting. These accounting standards are the same that have been used for the preparation of the consolidated financial statement at 31 December 2018, except for IFRS no. 16 “Leasing”, the standard published by the IASB in January 2016 to replace IAS 17, which was adopted on 1 January 2019. The main change concerns the accounting of lease agreements by leaseholders, as, based on IAS 17, a distinction had to be made between finance leases (booked by using the financial method) and operating leases (booked by using the equity method). With IFRS 16, the accounting of operating leases will be the same as that required for finance leases. According to the new standard, a financial asset - the right to use the leased asset - and a financial liability - the payment of rents - must be booked. The IASB established optional exemptions for certain lease agreements and low-value / short-term leases. The Group adopted the standard starting from the compulsory adoption date - 1 January 2019 - and used the simplified transaction approach without changing the comparative amounts of the year before the first adoption. The assets booked for the right of use have been measured for the amount of the leases due upon adoption: at 1 January 2019, the Group recognised right-of-use assets for approx. € 4.8 M and financial liabilities for the same amount. At 30 June 2019, right-of-use assets were booked for € 4.59 M, financial liabilities connected with non-current rights of use were € 4.21 M, and current financial liabilities were € 0.4 M. On February 19, 2018, Corporaciòn America Italia S.p.A. purchased from the Fondazione Pisa n. 850,235 shares of Toscana Aeroporti S.p.A. at a price of € 13,433,713.00, increasing its stake from 51.13% to 55.7%. On June 25, 2018, Corporaciòn America Italia S.p.A. purchased from Fondazione C.R.Firenze n. 1,225,275 shares of Toscana Aeroporti S.p.A. at a price of € 20,217,037.50, increasing its stake from 55.7% to 62.283%. At June 30, 2019 Corporaciòn America Italia SpA holds a 62.283% stake in Toscana Aeroporti S.p.a., a company that manages Pisa G. Galilei airport and Florence airport A. Vespucci; the Group is responsible for the development of the two airports, both in terms of air traffic and infrastructure and services for passengers. The accounting data as at 30 June 2019 include the data of the Parent Company Corporaciòn America Italia Spa, of the subsidiary Toscana Aeroporti SpA and those of the sub-controlled companies Parcheggi Peretola S.r.l., Toscana Aeroporti Engineering S.r.l. (hereinafter TAE), Toscana Aeroporti Handling S.r.l. (hereinafter TAH) and Jet Fuel Co. S.r.l. (hereinafter Jet Fuel), consolidated on a line-by-line basis. 1. GROUP’S ACTIVITIES The Company was incorporated on 19 February 2014 and is domiciled in Italy with registered office in Milan. CAI acquired the controlling interest in Aeroporto di Firenze Spa (hereinafter ADF) in April 2014 and in Società Aeroporto Toscano (hereinafter SAT) in July 2014 . On 2015 SAT incorporated ADF and changed its company name in Toscana Aeroporti Spa as described below. 4 Having issued a bond loan traded on the Vienna stock market, it is required to prepare and file the consolidated financial statements. On 8 January 2018 a new bond loan was issued for EUR 60 million expiring on 31 December 2024 at the annual rate of 4.556%. Simultaneously, the previous bond loan to the value of EUR 50 million that was due to expire on 31 December 2019 has been fully and early repaid. The main purpose of the Company is the management of shareholdings. At 31 December 2017 CAI held a total of 9,516,649 shares of TA equal to 51,132% of the share capital. On 19 February 2018 Corporación America Italia S.p.A. purchased 850,235 shares of Toscana Aeroporti S.p.A. from Fondazione Pisa, thus increasing its equity interest from 51.13% to 55.7%. On 25 June 2018 Corporación America Italia S.p.A. purchased 1,225,275 shares of Toscana Aeroporti S.p.A. from Fondazione C.R. Firenze, thus increasing its equity interest from 55.7% to 62.2833%. The subscribed and fully paid-up share capital Corporaciòn America Italia S.p.A. is € 85,000,000.00 and consists of 130,000 ordinary shares without nominal value. The whole of TA’s shares owned by Corporación America Italy S.p.a. aswell