Good morning, and welcome to the Corporación América Airports Second Quarter 2024 Conference Call. A slide presentation accompanies today's webcast and is available in the Investors section of the company's website. As a reminder, all participants in a listen-only mode. There will be an opportunity to ask questions at the end of the presentation. At this time, I would like to turn the conference over to Patricio Iñaki Esnaola, Head of Investor Relations. Please go ahead. Patricio Iñaki Esnaola: 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 Jorge Arruda, our Chief Financial Officer. 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 recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Please note that throughout this call, all references to revenues, costs, adjusted EBITDA and margin, we refer to figures excluding IFRIC12. I will now turn the call over to our CEO, Martin Eurnekian.

Thank you, Iñaki. Hello, everyone, and welcome to our second quarter 2024 earnings call. I will begin today's presentation with some key highlights from our second quarter performance. After that, I will turn it over to Jorge for a more detailed financial review, and then we will open the floor for questions. Our business is supported by having a diversified geographic portfolio. By operating in a variety of countries globally, we were able to mitigate weaker domestic traffic in Argentina, impacted by the challenging macro backdrop in the country, as well as aircraft constraints in Brazil, which resulted in less number of flights. As a result, revenues remained resilient despite the mid-single-digit year-on-year decline in traffic when adjusting for the discontinuation of the Natal Airport concession earlier in the year. Revenues per passenger ex-IFRIC12 expanded 9% year-over-year, outpacing revenue growth, underscoring our ability to adapt to challenging market dynamics. And Jorge will discuss this more in detail shortly. EBITDA ex-IFRIC12 declined 9% year-over-year, largely due to the macroeconomic challenges that Argentina is facing, which affected our domestic traffic and operational costs. Moreover, duty-free sales were lower this year, as last year's figures were artificially high due to the gap between the official FX rate and the parallel one. By contrast, our robust results in Italy and Uruguay emphasize the strength and resilience of our operations in those markets. Furthermore, our strong cash flow generation and solid balance sheet with a record low leverage ratio demonstrate our commitment to sustaining financial stability while maintaining the flexibility needed to support growth initiatives. Now moving on to Page 4 for a review of passenger traffic trends. Total passenger traffic in the quarter was negatively impacted by weak demand from domestic travel in Argentina as the market was challenging for reasons I just mentioned.…

Thank you, Martin, and good day, everyone. Let's start with our top-line on Slide 6. Total revenues ex-IFRIC12 were stable year-on-year despite the lower passenger traffic as aeronautical revenue growth was offset by the decline in the commercial segment. Aeronautical revenues were up 3% year-on-year, mainly driven by higher international passenger traffic in Italy, Uruguay and Argentina, and tariffs increase in Uruguay and Ecuador. As a reminder, the majority of our aeronautical revenues in Argentina is derived from the international traffic. Moreover, aeronautical revenue in Uruguay and Italy delivered double-digit year-on-year growth in the second quarter of 2024, benefiting from the consistent positive momentum in those geographies. Commercial revenues decreased 3% year-on-year, mainly impacted by lower cargo and duty-free revenues in Argentina and lower fuel revenues in Armenia. As anticipated in our first quarter 2024 earnings call, the duty-free business in Argentina was impacted by the December 2023 peso devaluation. This was partially offset by higher revenues from VIP lounges advertisement and rental space, with strong performance in Italy, Uruguay and Brazil. In summary, leveraging CAAP's geographically diverse portfolio, our revenue per passenger ex-IFRIC12 increased 9% to $20.1 this quarter from $18.5 in the second quarter of 2023. Turning to Slide 7. Total cost and expenses ex-IFRIC12 increased 6% year-on-year, mainly reflecting inflationary pressures in Argentina, as the local inflation rate was above currency devaluation. As a reminder, around 60% of total costs in Argentina are peso-denominated. Regarding specific cost items, we experienced higher maintenance expenses, together with higher services and fees. Importantly, we remain focused on keeping stringent cost controls in Argentina consistent with our commitment to maintain a streamlined cost structure. Moving on to profitability on Slide 8. Adjusted EBITDA ex-IFRIC12 was $136 million, a 9% year-on-year decline, mainly explained by the performance we saw in Argentina. This…

Before opening the line for questions, please turn to Slide 12 to wrap our prepared remarks. Revenues remained resilient despite the mid-single-digit decline in comparable traffic as our geographic diversification mitigated the challenging macro conditions in Argentina and aircraft constraints in Brazil. We are also pleased to see revenue per passenger outpace revenue growth, underscoring our ability to adapt to challenging market dynamics. While EBITDA ex-IFRIC12 declined, solid cash flow generation further strengthened our balance sheet. We achieved another record-low net leverage ratio, demonstrating our commitment to financial discipline. On the strategic growth front, we are actively negotiating a new $400 million CapEx plan with the Armenian government and seeking approval for the new master plan for Florence Airport in Italy. Additionally, we are assessing expansion projects across various geographies, in line with our strategic roadmap to pursue value creation. Looking ahead, on the operations front, we expect the positive dynamics in Uruguay and Italy to continue throughout the year. In Argentina, we expect domestic traffic to remain soft, impacted by the persisting recession, although we are pleased to see slight better traffic figures in July. Moreover, Argentina has strengthened its regulatory framework through recent open skies bilateral agreements with Brazil, Chile, Ecuador, Peru, Uruguay, Panama, Canada and Paraguay. These agreements are designed to enhance the flexibility and inject greater dynamism into the country's aeronautical activities. While on the financial front, we remain committed to delivering strong results, maintaining a healthy balance sheet and creating value for our shareholders. By doing so, we have the financial flexibility to support our growth initiatives. Thank you for your continued support and confidence in our company. This ends our prepared remarks. We are ready to take your questions. Operator, please open the line for questions.

Thank you. [Operator Instructions] Your first question comes from Alejandro Demichelis from Jefferies. Please go ahead.

Yes. Good morning, guys. Thank you very much for taking my questions. Two questions, if I may, please. The first one, Martin, maybe you can update on how you see discussions with the different airlines regarding potential new routes into the country or higher frequency now that the deregulation of the sector has accelerated? And then, the second question, maybe for Jorge, is how you see the development of the cost base, particularly in Argentina, for the rest of the year?

Thank you, Alejandro, for the question. Regarding the effects on traffic of the deregulation that the government is pursuing, and moreover, the amount of bilateral agreements opening the skies of Argentina to other countries, we are very, very positive. There are many studies demonstrating that in short, medium and long term. This has very deep effects on the healthy growth in traffic numbers. So, this is what we expect. It's probably not going to happen one day to the next, because airlines have to understand and adapt and have the availability of aircrafts to do this, but the amount of flexibility that this gives to regional and local airlines to tap on the Argentina market, we think it's a very, very positive news. And that it's not only short-term news, but also for the medium and long term.

Okay. Thank you.

Okay. So, on the cost front, and I guess your question was targeted to Argentina, we see the same trend into the third quarter and thereafter softening. Bear in mind that the first quarter, we managed to withhold price adjustments on suppliers, and among other things, and our cost structure in general. But at some point in time, we had to accept given the inflation environment. And we saw the same scenario -- or we are seeing the same scenario to the third quarter, and we expect thereafter to soften.

Okay. That's very clear. Thank you.

[Operator Instructions] Your next question comes from Jay Singh from Citi. Please go ahead.

Hey, thanks for taking my question. Dialing in for Stephen Trent here today. Since one of my other questions has already been answered, I guess the other thing I wanted to ask was, aside from Nigeria and Armenia, what other investment opportunities do you see? And do any of them happen to be in conjunction with Dubai? Thanks.

Hi. Thank you for your question. We -- from -- in connection with opportunities that are public, we recently submitted a proposal for the Luanda Airport in Angola as part of the public tender being carried out by the government and submitted pre-qualification documents in Saudi Arabia. However, there are a number of other situations we are actively looking at that we will be announcing if and when they become more concrete or official.

Okay. Thank you so much.

Your next question comes from Fernanda Recchia from BTG. Please go ahead.

Hello. Thank you for taking my question. Two here from our side. The first one, Jorge, Martin, if you could please provide an update on the tariff discussion on Argentina on the domestic side? How is the negotiation for a rebalancing progressing? If you have any update on this matter? And second, if you could please provide an update on the master plan discussion on Italy? It will be very helpful. Thank you.

Thank you, Fernanda, for your interest and your questions. Martin here. Well, on the tariffs in Argentina, we expect the domestic tariff to be adjusted soon, because it's lagging behind the exchange rate, but we have to also bear in mind that the Board of the regulatory agency was formed not long ago by the government. So, we expect to see some adjustment time since the new authorities took over to the actual announcement of the catching up that the domestic tariff has to do in Argentina. We also expect the rebalancing of the whole economic equilibrium of the concession to be done at some point by this new authority. We are already late on that, but hopefully, before the end of the year, we would have that exercise done. This is what we expect at least for now. And regarding Italy, we are moving on a tight schedule and back and forth with questions and documentation with the different agencies and the commission that needs to give the green light in terms of environmental approvals for the master plan to go ahead. We are working on the last round of questions with a deadline for October. And then, we need to see if there is another round of questions or the agency is ready to wrap up the process with our replies. But it's an active process, and it's moving forward.

Thank you. Martin, just to clarify, what you're expecting for the end of this year? It's just the tariff rebalancing in Argentina or the rebalancing for the whole concession?

The rebalancing of the economic equilibrium of the concession will most probably be reflected in tariffs in Argentina and that's what we expect by the end of the year. But prior to that, we expect the regulatory agency to do a required catch-up on the domestic tariffs that are lagging behind due to the valuation in Argentina, and that has to happen in a shorter time than the required working calculations needed to do a rebalancing of the economic equilibrium. So, we expect that to happen first.

Perfect. Thank you very much.

Thank you.

And there are no further questions at this time. I will turn the call back over to the presenters for closing remarks.

I'd like to thank everybody for your interest in our company and remind you that our Investor Relations team is always available to engage and answer your calls. Thank you very much, and have a very nice rest of the day. Bye-bye.

Ladies and gentlemen, this concludes your conference call for today. You may now disconnect. Thank you.