Corporación de Ferias y Exposiciones S A Usuario Operador de Zona Franca : Consolidated financial statements - March 2024

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE ZONA FRANCA BENEFICIO E INTERES COLECTIVO AND SUBORDINATED

Condensed Consolidated Interim Financial Statements

As of March 31, 2024, and December 31, 2023

Report of the Statutory Auditor on the Review of the Interim Financial Statements

To the Shareholders

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo

Introduction

I have reviewed consolidated condensed interim statements of financial information that is attached as of March 31, 2024, of Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo and subordinate, which comprise:

• The consolidated condensed interim statements of financial position at March a 31, 2024;
• The consolidated condensed interim statements of comprehensive income, three-months period ended March 31, 2024.
• The consolidated condensed interim statements of changes in equity for the period of three- months ended March 31, 2024.
• The condensed interim consolidated cash flow statement for the period of three - months ending on March 31, 2024; and
• The notes to the interim financial statements.

The management of Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Bneficio e Interes Colectivo is responsible for the adequate preparation and presentation of these consolidated condensed interim statements of financial information, in accordance with the International Accounting Standard 34 (IAS 34) - Interim Financial Information contained in financial information accounting standards accepted in Colombia. My responsibility consists of expressing a conclusion of these interim consolidated financial statements based on my review.

Scope of the review

I have made my review in accordance with the International Standard on Review Engagements 2410 "Review of financial information performed by the independent auditor of the entity", in included in the standards for Information Assurance accepted in Colombia. A review of interim financial information consists of making enquiries, with persons responsible for financial and accounting matters, and the application of analytical procedures and other review procedures. A review of interim financial information is substantially smaller in scope than an audit made in accordance with international standards, and therefore, does not allow me to obtain the certainty of having had knowledge of all significant matters which could have been identified by an audit. I therefore do not express an audit opinion.

Conclusion

Based on my review, nothing has called my attention to make me suppose that the interim consolidated financial information does not present, in all material aspects, its financial situation March 31, 2024, which is attached, in accordance with the International Standard of Accounting 34 (IAS 34) - Intermediate Financial Information contained in the Accounting and Financial Information Standards accepted in Colombia.

(Original in spanish signed)

Diego Alejandro Corredor Ortiz

Deputy Statutory Auditor

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo

License TP 199078-T Member of KPMG S.A.S May 15, 2023

Report of the Statutory Auditor of Reporting in Extensible Business Reporting Language

(XBRL)

To the Shareholders

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo:

Introduction

I have reviewed the report in consolidated Extensible Business Reporting Language (XBRL) as of March 31, 2024, which include the condensed interim statements of financial information of Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interes Colectivo and subordinate, which comprise:

• The consolidated condensed interim statements of financial position at March a 31, 2024;
• The consolidated condensed interim statements of comprehensive income, three- months period ended March 31, 2024.
• The consolidated condensed interim statements of changes in equity for the period of three months ended March 31, 2024.
• The condensed interim consolidated cash flow statement for the period of three months ending on March 31, 2024; and
• The notes to the interim financial statements.

The management is responsible for the adequate preparation and presentation of these in Extensible Business Reporting Language (XBRL) that incorporates interim consolidated statements of financial information, in accordance with the International Accounting Standard 34 (IAS 34) - Interim Financial Information contained in financial information and accounting standards accepted in Colombia and presentation the Extensible Business Reporting Language (XBRL) as instructed by the Colombian Financial Superintendency (Superintendencia Financiera de Colombia) . My responsibility consists of expressing a conclusion of Extensible Business Reporting Language (XBRL) that incorporates financial information interim consolidate, based on my review.

Scope of the review

I have made my review in accordance with the International Standard on Review Engagements 2410 "Review of financial information performed by the independent auditor of the entity", in included in the standards for Information Assurance accepted in Colombia. A review of interim financial information consists of making enquiries, with persons responsible for financial and accounting matters, and the application of analytical procedures and other review procedures. A review of interim financial information is substantially smaller in scope than an audit made in accordance with international standards, and therefore, does not allow me to obtain the certainty of having had knowledge of all significant matters which could have been identified by an audit. I therefore do not express an audit opinion.

Conclusion

Based on my review, nothing has called my attention to make me suppose that Extensible Business Reporting Language (XBRL), that incorporate report of the interim consolidated financial information of Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo and subordinate, does not present, in all material aspects, its financial situation March 31, 2024, in accordance with the International Accounting Standard 34 (IAS 34) - Interim Financial Information contained in financial information accounting standards accepted in Colombia and as instructed by the Colombian Financial Superintendency (Superintendencia Financiera de Colombia).

(Original in spanish signed)

Diego Alejandro Corredor Ortiz

Deputy Statutory Auditor

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo

License TP 199078-T Member of KPMG S.A.S May 15, 2024

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE ZONA FRANCA BENEFICIO E INTERES COLECTIVO AND SUBSIDIARIES

Consolidated Interim Condensed Statements of Financial Position

At March 31,2024 and December 31, 2023 (Figures in thousands of Colombian pesos )

	Note		March 31, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalent	3	$	53.386.819	76.595.193
Accounts receivable	5 and 17		28.461.938	36.025.457
Tax assets	6		6.417.988	11.287.538
Inventories			1.263.074	1.085.234
Other non-financial assets			3.554.645		839.660
Total current assets			93.084.464	125.833.082
Non-current assets
Joint venture investments	4		2.144.825	2.588.080
Other financial assets			5.128.731	5.115.825
Investments in associates	7		80.027.590	81.104.513
Intangibles	8		14.338.619	9.535.132
Property and equipment	9		484.230.342	482.556.795
Investment properties			78.548.799	78.548.799
Deferred tax asset			108.462		203.651
Total non-current assets			664.527.368		659.652.795
Total assets		$	757.611.832	785.485.877
LIABILITIES
Current liabilities
Financial debt	10 and 17		30.979.538	31.145.461
Accounts payable	11 and 17		41.691.690	58.914.630
Other non-financial liabilities	12		3.471.784	6.731.907
Income received in advance			45.178.480	23.977.570
Contractual liabilities			462.510		448.513
Total current liabilities			121.784.002	121.218.081
Non-current liabilities
Financial debt	10		96.432.497	101.312.263
Employee benefits			1.588.907	1.576.907
Other provisions			304.552	382.706
Deferred tax liability, net			54.987.694		54.355.676
Total non-current liabilities			153.313.650		157.627.552
Total liabilities		$	275.097.652	278.845.633
EQUITY
Capital			1.673.920	1.673.920
Share Placement Premium			43.451.721	43.451.721
Reserves	13		183.648.676	155.282.541
Accumulated profit	14		268.594.970	268.751.631
Other equity interests in equity			(8.966.168)	(8.966.168)
Result for the period			(5.888.939)		46.446.599
Total equity		$	482.514.180		506.640.244
Total liabilities and equity		$	757.611.832		785.485.877

See the Notes that form part of the Condensed Interim Consolidated Financial Statements.

(Original in spanish signed)	(Original in spanish signed)	(Original in spanish signed)
Andrés López Valderrama	Diana Milena Vargas Arcila	Diego Alejandro Corredor Ortiz
Legal Representative	Chief Accountant	Statutory Auditor
	T.P. 133072 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interes Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my Report of May 15, 2024 )

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE ZONA FRANCA BENEFICIO E INTERES COLECTIVO AND SUBSIDIARIES

Consolidated Condensed Interim Statements of comprehensive income

Fot three months period ended March 31, 2024 and 2023

(Figures in thousands of Colombian pesos)

	Note		January 1 to March		January 1 to March
			31, 2024	31, 2023
Income from ordinary activities	17a)	$	18.364.758	19.622.978
Overhead	18a)		12.280.645	10.737.985
Selling expenses	18b)		8.047.005	10.566.733
Impairment of receivable	5		280.694	151.236
Recoveries of receivables	5		134.679	113.275
Other income			361.501	152.103
Cost of sales	19		598.273	513.352
Other expenses			194.126	224.037
Result on operating activities			(2.539.805)	(2.304.987)
Financial income	17b)		1.548.257	1.748.661
Financial expenses	18c)		5.288.419		6.027.582
Financial cost, net			(3.740.162)		(4.278.921)
Entity loss for the period	18e)		1.118.235		855.068
Result before tax			(5.161.732)	(5.728.840)
Recovery income tax	18d)		(727.207)	(150.313)
Result for the period			(5.888.939)		(5.879.153)
Other Comprehensive Income			-		-
Result for the period and other comprehensive income		$	(5.888.939)		(5.879.153)
Loss per share			(35,20)	(35,14)

See the Notes that form part of the Condensed Interim Consolidated Financial Statements.

(Original in spanish signed)	(Original in spanish signed)	(Original in spanish signed)
Andrés López Valderrama	Diana Milena Vargas Arcila	Diego Alejandro Corredor Ortiz
Legal Representative	Chief Accountant	Statutory Auditor
	T.P. 133072 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interes Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my Report of May 15 2024 )

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE ZONA FRANCA BENEFICIO E INTERES COLECTIVO AND SUBSIDIARIES

Consolidated condensed interim statements of changes in equity

For three months period ended March 31, 2024 and 2023 (Figures in thousands of Colombian pesos)

			Subscribed	Share
			and paid	Placement		Accumulated	Other equity	Result for	Total
	Note		Capital	Premium	Reserves	profits	interests in equity	the period	equity
Initial as of January 1, 2023		$	1.673.920	43.451.721	142.210.054	268.719.943	(9.035.078)	16.882.557	463.903.117
Transfer of income for the year to retained earnings			-	-	-	-	-	-	-
Dividends declared in cash of $19.54 per share on
167,287,797 subscribed and paid-in shares; payable
in April and November 2023	16		-	-	-	(3.268.804)	-	-	(3.268.804)
Appropriated to mandatory and occasional reserves	15		-	-	13.072.487 -	13.072.487	-	-	-
Change in other equity items accounted for by the
equity method	16		-	-	-	(242.835)	-	-	(242.835)
Result for the period			-	-	-	-	-	(5.879.153)	(5.879.153)
Balance as of March 31, 2023
	$	1.673.920	43.451.721	155.282.541	252.135.817	-9.035.078	11.003.404,00	454.512.325
Initial as of January 1, 2024		$	1.673.920	43.451.721	155.282.541	268.751.631	(8.966.168)	46.446.599	506.640.244
Transfer of income for the year to retained earnings			-	-	-	46.446.599	-	(46.446.599)	-
Cash dividends of $108,08 per share
over 167,287,797 subscribed and paid shares;
payable in April and November 2024	16		-	-	-	(18.080.464)	-	-	(18.080.464)
Appropriated to mandatory and occasional reserves	15		-	-	28.366.135	(28.366.135)	-	-	-
Variation in other equity items by the equity method	16					(156.661)			(156.661)
Result for the period			-	-	-	-	-	(5.888.939)	(5.888.939)
Balance as of March 31, 2024
	$	1.673.920	43.451.721	183.648.676	268.594.970	(8.966.168)	(5.888.939)	482.514.180

See the Notes that form part of the Condensed Interim Consolidated Financial Statements.

(Original in spanish signed)	(Original in spanish signed)	(Original in spanish signed)
Andrés López Valderrama	Diana Milena Vargas Arcila	Diego Alejandro Corredor Ortiz
Legal Representative	Chief Accountant	Statutory Auditor
	T.P. 133072 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interes Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my Report of May 15, 2024 )

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE ZONA FRANCA BENEFICIO E INTERÉS COLECTIVO Y SUBORDINADA

Consolidated condensed interim statements of cash flows

For three months period ended March 31, 2024 and 2023 (Figures expresssed in thousands of Colombian pesos)

	Note		1 January to March		1 January to March
			31, 2024		31, 2023
Result for the period		$	(5.888.939)	(5.879.153)
Adjustments to reconciliation between the profit for the period and net cash used in
operating activities:
Depreciations	18a)		1.816.718	1.892.090
Amortization intangibles	18a)		816.465	811.516
Impairment accounts receivable	5		280.694	151.236
Recoveries of receivables	5		(134.679)	(113.275)
Impairment of investments in other financial assets			-	-
Interest accrued financial obligations	11		4.774.490	5.643.844,00
Recovery of provision for accounts payable			(184.001)	(120.659)
Loss equity method	18e)		(1.118.235)	(855.068)
Provisions for contingencies	18c)		(78.154)	-
Gain on valuation of investments in other financial assets	17b)		13.997	13.293
Implied interest contractual liability	18d)		(17.407)	(31.885)
Income tax			727.207	150.313
Effect of changes in foreign exchange difference on cash held for cash equivalents			(72.297)		(265.027)
			935.859	1.397.225
Changes in assets and liabilities:
Accounts receivable			7.463.107	984.173
Inventories			(177.840)	428.874
Other non-financial assets			(2.714.985)	(1.168.222)
Net tax			5.569.357	(77.256)
Accounts payable			(35.120.010)	(12.553.343)
Other non-financial liabilities			(3.260.123)	(1.818.460)
Employee benefits			12.000	-
Income received in advance			21.200.910	15.561.035
Provision			-	(2.110)
Interest paid financial obligations	11		(4.455.550)	(3.943.765)
Payment of income tax	6		(699.807)		(765.312)
NET CASH USED IN OPERATING ACTIVITIES			(11.247.082)	(1.957.161)
CASH FLOWS FROM INVESTMENT ACTIVITIES
Redemptions of investments in other financial assets			4.501	9.461
Dividends received in cash from investments in joint ventures	4		1.409.942	2.185.505
Dividends received in cash from investments in associates	8		1.071.810	-
Purchase of intangibles			(5.619.952)	-
Purchase of property and equipment			(3.490.265)		(154.502)
NET CASH (USED IN) PROVIDE IN INVESTING ACTIVITIES			(6.623.964)	2.040.464
CASH FLOWS FROM FINANCING ACTIVITIES
Capital payments of financial obligations	11		(5.364.629)	(5.565.435)
Dividends paid in cash	12		(109)		-
NET CASH USED IN FINANCING ACTIVITIES			(5.364.738)	(5.565.435)
DECREASE NET, IN CASH AND CASH EQUIVALENTS			(23.235.784)	(5.482.132)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIODO			76.595.193	59.696.625
Effect of changes in foreign exchange difference on cash held			27.410		46.309
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3	$	53.386.819	54.260.802
See the notes that form an integral part of the condensed interim financial statements.

(Original in spanish signed)	(Original in spanish signed)	(Original in spanish signed)
Andrés López Valderrama	Diana Milena Vargas Arcila	Diego Alejandro Corredor Ortiz
Representante Legal	Contador Público	Statutory Auditor
	T.P. 133072 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interes Colectivo
		T. P. 199078 - T
		Member of KPMG S.A.S.
		(See my Report of May 15, 2024)

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE

ZONA FRANCA BENEFICIO E INTERES COLECTIVO Y SUBORDINADA Notes to the Condensed Consolidated Interim Financial Statements

As of March 31, 2024, with comparative figures as of March 31 and December 31, 2023

(Figures expressed in thousands of pesos)

1. Reporting entity

The Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interes Colectivo (now the parent Company) is a public limited company incorporated by Public Deed No. 3640 of July 18, 1955, of the Second Notary (2nd) of Bogotá DC, with a duration until July 2099. The consolidated financial statements as of March 31, 2024, includes the parent company and its subordinate. The corporate purpose of the Parent Company is to promote industrial and commercial development in the region, national and international level and to strengthen Colombia's ties of friendship and cooperation with friendly nations, to organize trade shows, national and international exhibitions of an industrial, commercial, agricultural or scientist inside or outside their facilities, at home or abroad; as well as promoting and organizing the participation of Colombia in trade shows and exhibitions held abroad, directly or through the subordinate Corferias Inversiones S.A.S.

The Parent Company is subordinate to the Bogotá Chamber of Commerce, which has a 79.74% participation in the share capital.

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interes

Colectivo user was declared Special Permanent Free Zone Operator User through Resolution No. 5425 of June 20, 2008. According to Public Deed No. 2931 of July 25, 2008, of Notary 48 of Bogotá DC, registered on 28 July 2008 under number 01231243 of book IX, the company changed its name from Corporación de Ferias y Exposiciones SA, to Corporación de Ferias y Exposiciones SA Usuario Operador de Zona Franca. Its main address is in Bogotá city at Carrera 37 N ° 24-67. Bogotá, Cundinamarca. With Resolution No. 1213 of August 4, 2022, the Corporation goes from being a Special Permanent Free Zone to being a Permanent Free Zone.

The Corporation, as Permanent Free Trade Zone Operator, controls the entry of exhibitors' merchandise through the COMEX platform and once the fair is over, the merchandise exit document is completed.

The Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca modified his business name by Public Deed No. 604 of May 6, 2021, at Notary 23 of Bogotá DC, registration made under number 02704569 of Book IX on May 12, 2021. The company changed its name to Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca to Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interes Colectivo. Its main address is in Bogotá city at Carrera 37 N ° 24-67. Bogotá, Cundinamarca.

Corferias Inversiones S.A.S., (hereinafter the subordinate) it is a company incorporated by private document dated April 30, 2012; with an indefinite term duration, it began to develop economic activities in June 2012. Its economic activity is the performance of any lawful activity both in Colombia and abroad, that allow to facilitate or develop commerce or the industry of society. Currently, the activity that it carries out is the administration of the parking lots of the buildings called Torre parking, Avenida Américas and Green Parking. Likewise, it is the operator of the "Puerta de Oro" fairground in Barranquilla, where it organizes trade shows and exhibitions of a commercial and agricultural nature, events for the population and visitors to the Colombian Caribbean.

Corferias Inversiones S.A.S. It is located in Bogotá city at Carrera 37 No. 24-67 and in Barranquilla at Calle 77B No. 57-103. The Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona

CORPORACIÓN DE FERIAS Y EXPOSICIONES S.A. USUARIO OPERADOR DE ZONA FRANCA

BENEFICIO E INTERES COLECTIVO AND SUBORDINATED

Notes to the Condensed Consolidated Interim Financial Statements

Franca Beneficio e Interes Colectivo owns 100% of the stake in Corferias Inversiones S.A.S. Likewise, it could direct accounting, administrative and financial policies.

The financial information of the subordinated company as of March 31, 2024, and December 31, 2023, is presented below:

March 31, 2024

Company	% held	Assets	Liabilities	Equity	Income
Corferias Inversiones SAS	100%	$ 20.225.186	12.349.274	7.875.912	143.561

December 31, 2023

Company	%		Asset	Liabilities	Equity	Income
participation
Corferias Inversiones S.A.S		100%	$ 22.337.895	14.161.762	8.176.133	5.321.708

The interim consolidated financial statements include the Corporación de Ferias y Exposiciones S.A. Free Zone Operator User Benefit and Collective interest and Corferias Inversiones S.A.S.

2. Basis of preparation of the condensed consolidated interim financial statements

1. Regulatory Technical Framework

The condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 (IAS 34) - Interim Financial Reporting, contained in the Accounting and Financial Reporting Standards accepted in Colombia (NCIF) established in Law 1314 of 2009, regulated by the Sole Regulatory Decree 2420 of 2015, as amended by Decrees 2496 of 2015, 2131 of 2016, 2170 of 2017, 2483 of 2018, 2270 of 2019, 1432 of 2020, 938 of 2021 and 1611 of 2022. The NCIF are based on the International Financial Reporting Standards (IFRS), together with their interpretations, issued by the International Accounting Standards Board (IASB).

The condensed consolidated interim financial statements for the interim period do not include all the information and disclosures required for an annual financial statement, for this reason it is necessary to read them in conjunction with the consolidated annual financial statements as of December 31, 2023, published on the website www.corferias.com in the Shareholders section. In accordance with IAS 34, the accounting policies used for interim periods are the same as those applied in the preparation of the annual financial statements.

For the interim period ended March 31, 2024, the Parent Company and its subordinate recognized a net loss of $5,888,939 and negative net operating flow of $11,247,082, net current assets as of March 31, 2024, were $93,084,464 and net current liabilities of $121,784,002; Working capital without taking into account the current liability for income received in advance presents a positive indicator of $16,478,942. The Parent Company and its subordinate have $53,386,819 of resources that include cash and cash equivalents. This behavior of the financial indicators is normal for the first quarter, taking into account the timing of the execution of the fairs, which mostly take place during the second half of 2024. As an internal measure, the Parent Company and its subordinate carry out a process expense review, with the purpose of generating the greatest possible savings in all areas of the companies and the investment plan was prioritized according to the needs of the operation to provide business continuity. Based on these factors, management has a reasonable expectation that the