Good morning, and welcome to the Corporacion America Airports’ Second Quarter 2018 Earnings Call. A slide presentation accompanies today’s webcast and is available in the Investors section of Corporacion America Airports Investor Relations website at http://investors.corporacionamericaairports.com. As a reminder, all participants will be in a listen-only mode. There will be an opportunity for you to ask questions at the end of today’s presentation. As a reminder, today’s conference is being recorded. At this time, I would now like to turn the conference over to Gimena Albanesi of Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us today. Speaking during today’s call will be Martin Eurnekian, our Chief Executive Officer; and Raúl Francos, our Chief Financial Officer. Also with us today is Jorge Arruda, Finance and M&A Manager. All will be available for the Q&A session. Before we proceed, I would like to make the following Safe Harbor statements. Today’s call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and reconcilings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. With that being said, I would now turn the call over to our CEO, Martin Eurnekian.

Thank you, Gimena. Hello, everyone, and thank you for joining us today. It’s a pleasure to welcome you to Corporacion America Airports’ second quarter 2018 earnings conference call. I will begin my presentation with a discussion of the highlights of the quarter, and then Raúl will take you through our financial results. Afterwards, I will provide an update on our key business segments and our view for the remainder of the year. We will then open the call for your questions. Starting with slide number 3. We delivered a solid operational performance this quarter against a difficult macroeconomic backdrop in some of our key markets. Consolidated EBITDA increased by 13% year-on-year despite slower overall travel demand in Argentina and FX depreciation both in Argentina and Brazil. Importantly, ex-IFRIC EBITDA margin expanded over 360 basis points year-on-year to 37% as we continue to execute our strategy of prioritizing development of new routes, frequency and addition of new airlines via our cost structure largely benefited from the currency depreciation in Argentina. We made capital investments of $78 million during the quarter, mainly focused on Argentina, Brazil and Italy as we maintain our focus on further enhancing our airport infrastructure to offer the best travel experience to the passengers while expanding our platform for long-term growth. Let me also take a moment to highlight the agreement we entered into with Investment Corporation of Dubai announced last month. The Investment Corporation of Dubai purchased 25% of our wholly-owned subsidiary Corporacion America Italia, the controlling entity of Toscana Aeroporti, which operates the Pisa and Florence airports. We also signed a memorandum of understanding to jointly identify and develop future opportunities in the airport sector in Italy, Eastern Europe and Middle East. Note that since our IPO, we acquired an additional stake of 11% in Toscana…

Thank you, Raúl. Let me now spend a few minutes going over our main business segments, starting with Argentina on Slide 9. Revenues, ex construction, were relatively flat year-on-year despite passenger growth of 6.5%. In addition to experiencing lower overall traffic demand, we also saw a mix shift from international to domestic traffic as global passengers seek to travel to more affordable destinations given the macro headwinds. Revenues were also affected by the translation effect on domestic traffic from the sharp peso depreciation in the quarter. Measured in local currencies, revenues, ex-IFRIC, in Argentina increased almost 50% year-on-year. As most of our costs in Argentina are peso denominated, our cost structure benefited from the recent currency depreciation. This resulted in adjusted segment EBITDA growth of over 12% to $79 million in the quarter. We also made progress this quarter in our goal of further improving our airports in countries and invested almost $66 million in Argentina. Funds were mainly allocated to the construction of a new terminal building and improvement to the runway at Ezeiza airport. The remodeling of the terminal at Aeroparque airport and the construction of a new terminal building and expansion of the parking at Comodoro Rivadavia airport. Looking ahead, while the depreciation of the Argentine peso is impacting international traffic, we expect to see locals continuing to shift to domestic destinations. Last month, the government eliminated the price floor for the domestic flights to drive traffic growth in the country, which was very well received by the market further fueling domestic travel. We also anticipate that traffic from international passengers coming to Argentina will increase over time to offset the decline we are seeing in residents going out of the country. We remain committed to continue investing in our airports to serve expected passenger traffic growth…

Yes, thank you. We will now begin the question-and-answer session. [Operator Instructions] And the first question comes from Ian Zaffino from Oppenheimer. Please go ahead.

Hi, good morning guys. This is Mark on for Ian. So thank you guys for all the color on the operation. I think the question for us will be can you guys speak a little bit more on the partnership with the Corporation of Dubai and returns of opportunities in the pipeline, potential transaction size or any sort of deal structure you guys could give color on right now? Thank you.

Okay. Thank you very much for your question. This is Jorge Arruda, and I will address your question. So as Martin has explained, we sold 25% of Corporacion America Italia and I also signed an MOU with [indiscernible] with ICD to jointly look at opportunities in Italy, Middle East and Eastern Europe. Right now, there is nothing concrete that we are looking at. We expect actually to close the deal of the 25% sale in the coming one to two weeks, and we’ll then sit down with ICD and define our strategy. But again, there is nothing concrete at this stage, neither in terms of target nor in terms of the deal structure.

Okay, got you. That’s fair. And then just a follow-up. Can you guys just provide an update on any AA2000 discussion with the Argentinian government? And is there any chance for an early renewal? Or can you provide a rough time line in terms of the ruling and how the conversations have been progressing? Thank you.

Okay. Thank you for your question. This is Martin here. As anticipated, we continue to work on CapEx programs with the government defining what airports are going to intervene and the size of this intervention, including the design of the projects and so on. Regarding conversations, we are still waiting for the government to finish this consultancy process that, as far as we know, is a little bit delayed. And we’re waiting for that process to finish to be able to commence talks on not on the CapEx program, but on the future of the concession.

Okay, great. Thank you very much.

And our next question comes from Steven Trent from Citi. Please go ahead.

Good morning gentlemen, and thanks for taking my questions. I just wanted to get your take on the latest you’re seeing with respect to some of the discount airlines and that having moving into some of the South American market. So we’ve seen on our side to see some pickup in activity in Chile, which I know you guys don’t have an airport, and we’ve seen some activity in Argentina. Just wondering if you could kind of give us a little more granularity on what’s happening there?

Thank you for your question Steven. On our side, looking from the Argentinian market, the most important thing is this government’s focus on development of this industry in air traffic. In that sense, you can call it low-cost carrier, ultra low-cost carrier or legacy carrier. The most important thing for us is the fact that the government is allowing the industry to build a healthy ecosystem of companies competing for passengers that are basically creating a bigger market. And that is where we, as airport operators, are helping and working along with the government to promote this growth, which is the basis – the biggest driver for our company. So, we basically welcome all new companies that are thinking of starting or developing routes in the region and mainly to airports that we serve. Of course, in Argentina, we’re seeing again, movement from Norwegian that continues its plan to set up base in Argentina, also some Chilean airlines that are requesting for flight permits to fly into Argentina. And we see all that as very healthy move into making the passenger market bigger. Also, as we mentioned, the fact that the government has removed the tariff floor restrictions that were in place in Argentina, it’s moving the same direction for domestic travelers. And all of that, we think, is part of the vicious cycle in the growth of the industry as a whole.

Okay, great. I really appreciate that. Thank you. And I know that you already fielded the question with respect to the Dubai’s investment, and you mentioned Italy, Eastern Europe and the Middle East. And what about other markets? There’s that Jamaican auction that seems to be dragging on? Anything else you’re looking at whether in the Americas, Jamaica or perhaps some of the airports that Brazil may auction in the next several months?

Hi. It’s Jorge, again, here. So currently, we are spending time on the so-called fifth round in Brazil. We have three blocks that are going to be privatized and we are spending time on those. Recently, the government planned to issue the tender documents this year and carry out the auction this year. It seems that the tender documents will be published this year, but the auction will actually take place next year. But again, we have a full deal team looking at our aspect. We don’t have a final conclusion yet, but we are working on this. Other than that, there are other bits and pieces we are looking at, but nothing concrete to report to you guys at this stage.

Okay, Jorge. I appreciate that and let me leave it there. Thank you.

[Operator Instructions] At this time, there are no further questions. Please, sir, go ahead.

Let me take this chance to thank everybody for participating and taking their interest in Corporacion America Airports. Thank you – thanks, again. And all the team has its efforts into continuing on our strategy, and we are here to support any questions, our Investor Relations team is always available. Thank you very much.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.