Corporación de Ferias y Exposiciones S A Usuario Operador de Zona Franca : Consolidated financial statement december 2021

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

Consolidated Statement of Changes in Equity

(Figures expressed in thousands of colombian pesos)

	Notes		december 31st, 2021		december 31st, 2020
ASSETS
Current Asset
Cash and cash equivalent	8	$	36.592.626	17.490.960
Investments in joint ventures	9		-	-
Accounts receivable	10 y 38		22.340.582	6.914.513
Current tax assets, net	11		3.248.606	334.526
Inventories	12		616.024	998.143
Other non-financial assets	13		310.070	1.152.982
Total current assets			63.107.908		26.891.124
Activo no corriente
Investments in other financial assets	14		6.109.829	9.264.723
Investments in associates	15		76.208.895	75.440.966
Intangibles	16		11.657.079	12.789.012
Properties and equipment	17		482.290.455	489.732.163
Investment properties	18		79.676.854	78.666.868
Deferred tax assets	37		235.496	324.669
Total non-current assets			656.178.608		666.218.401
Total assets		$
	719.286.516		693.109.525
LIABILITY
Current liability
Financial obligations	19		11.783.461	7.700.347
Accounts payable	20 y 38		37.028.460	12.181.480
Current tax liability	21		-	227.212
Anticipated incomes	22		17.259.899	15.949.669
Contractual liability	23		354.686	-
Total current liabilities			66.426.506		36.058.708
Non-current liability
Financial obligations	19		146.750.890	142.979.973
Employee benefits	24		1.611.330	1.872.848
Provisions	25		5.109.793	5.735.850
Contractual liability	23		-	184.832
Deferred tax liabilities, net	37		40.204.754	38.579.896
Total non-current liabilities			193.676.767		189.353.399
Total liabilities		$
	260.103.273		225.412.107
WEALTH
Subscribed and paid capital	26		1.673.920	1.673.920
Paid-in shares			43.451.721	43.451.721
Reserves	27		142.210.054	142.210.054
Retained earnings			283.088.341	328.909.463
Other equity interests - ORI	28		(7.919.607)	(4.807.429)
Annual Balance			(3.321.186)	(43.740.311)
Total wealth		$	459.183.243		467.697.418
Total liabilities and wealth		$
	719.286.516		693.109.525
			-	-
See the notes that are an integral part of the consolidated financial statements.
				-

Andrés López Valderrama	Juan Carlos Sánchez	Diego Alejandro Corredor Ortiz
CEO	Public Accountant	Fiscal Auditor
	T.P. 102419 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interés Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my report of March 10th, 2022)

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

Consolidated Statements of Income and Other Comprehensive Income

(Figures expressed in thousands of colombian pesos)

Note

				december 31st, 2021	december 31st, 2020
Income from ordinary activities	29	$		90.838.396				18.982.919
Administrative expenses	31 y 38			44.288.106				43.792.003
Selling expenses	30 y 38			48.247.634				17.263.867
Impairment of accounts receivable	10			598.178				2.089.652
Accounts receivable impairment recovery	10			1.476.454				663.810
Other income	32			6.670.168				23.260.808
Selling costs				1.085.218				445.211
Other expenses	33			946.728				1.297.932
Profit from operational activities				3.819.154				(21.981.128)
Financial income	34			1.156.033				2.286.616
Financial expenses	35			9.066.182				16.039.914
Financial cost, net				(7.910.149)			(13.753.298)
Income (loss) under the equity method,net	36			767.928				(2.640.736)
Income before taxes				(3.323.067)			(38.375.162)
Income tax recovery (expense)	37			1.881				(5.365.149)
Annual Balance				(3.321.186)
					(43.740.311)
Other Comprehensive Income
28			(3.112.178) -13,98%		(5.794.346)
Profit for the period and other total comprehensive income		$		(6.433.364)			(49.534.657)

See the notes that are an integral part of the consolidated financial statements.

Andrés López Valderrama	Juan Carlos Sánchez	Diego Alejandro Corredor Ortiz
CEO	Public Accountant	Fiscal Auditor
	T.P. 102419 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interés Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my report of March 10th, 2022)

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

Consolidated Statement of Changes in Stockholders' Equity

(Figures expressed in thousands of colombian pesos)

			Subscribed	Additional
			and paid	paid-in		Retained	Other equity	Annual	Total
	Note		capital	capital	Reserves	earnings	interests	balance	wealth
Years ended December 31st, 2021 and 2020:
Initial as of January 1st, 2020		$	1.673.920	43.451.721	111.915.850	328.909.463	986.917	30.294.204	517.232.075
Appropriation of legal and occasional reserve	27		-	-	30.294.204	-	-	(30.294.204)	-
Equity instruments at fair value	28		-	-	-	-	(5.794.346)	-	(5.794.346)
Profit for the year			-	-	-	-	-	(43.740.311)	(43.740.311)
Balance as of December 31st, 2020		$
	1.673.920	43.451.721	142.210.054	328.909.463	(4.807.429)	(43.740.311)	467.697.418
Initial as of January 1st, 2021		$	1.673.920	43.451.721	142.210.054	328.909.463	(4.807.429)	(43.740.311)	467.697.418
Loss carryforward to accumulated losses			-	-	-	(43.740.311)	-	43.740.311	-
Withholding taxes applicable to shareholders			-	-	-	(136.557)	-	-	(136.557)
Deferred tax Law 2155/Decree 1311 of 2021	37		-	-	-	(1.944.254)	-	-	(1.944.254)
Equity instruments at fair value	28		-	-	-	-	(3.112.178)		(3.112.178)
Income for the year			-	-	-	-	-	(3.321.186)	(3.321.186)
Balance as of December 31st, 2021		$
	1.673.920	43.451.721	142.210.054	283.088.341	(7.919.607)	(3.321.186)	459.183.243

See the notes that are an integral part of the consolidated financial statements.

Andrés López Valderrama	Juan Carlos Sánchez	Diego Alejandro Corredor Ortiz
CEO	Public Accountant	Fiscal Auditor
	T.P. 102419 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interés Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my report of March 10th, 2022)

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

Consolidated Statement of Cash Flow

(Cifras expresadas en miles de pesos colombianos)

Years ended December 31st,	Note		2021	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Annual Balance		$	(3.321.186)	(43.740.311)
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation	17 y 31		8.196.877	7.385.331
Amortization of intangible assets	16 y 31		3.781.775	3.098.512
Impairment accounts receivable	10		598.178	2.089.652
Recovery of impairment accounts receivable	10		(1.476.454)	(663.810)
Impairment of investments in other financial assets	14		69.779	-
Loss on retirement of property and equipment, net	17 y 33		5.500	-
Recovery of provisions	32		(677.712)	(1.485.846)
Provisions for contingencies	33		-	153.415
(Income) loss equity method loss, net	36		(767.928)	2.640.736
Non-cash interest contractual liability	35		8.751	-
Valuation of investment property	18 y 32		(908.976)	(2.271.545)
Valuation gain on investments in other financial assets	14		(60.101)	(45.585)
(Recoverable) Income tax expense, net	37		(1.881)	5.365.149
Effect of changes in foreign exchange difference on cash held			(125.998)	(125.467)
			5.320.624		(27.599.769)
Changes in assets and liabilities:
Accounts receivable			(18.196.661)	19.044.190
Inventories			382.119	187.457
Other non-financial assets			842.912	(881.494)
Taxes, net			(3.155.101)	(170.508)
Accounts payable			25.005.630	(36.018.222)
Employee benefits			(261.518)	(326.083)
Provisions			(106.995)	-
Prepaid income			1.310.230	5.720.503
Interest paid on financial obligations	19		(9.275.151)	(3.897.875)
Payment of income tax			(214.533)		-
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			1.651.556	(43.941.801)
CASH FLOWS FROM INVESTING ACTIVITIES
Redemptions of investments in other financial assets	14		33.037	34.508
Dividends received in cash from investments in other financial assets	32		3.512.311	1.208.003
Purchase of intangible assets	16		(2.649.842)	(1.069.155)
Additions to investment property	18		(101.010)	(12.440)
Purchase of property and equipment	17		(760.669)	(8.624.252)
Property and equipment derecognized through sale	17		-	3.731.030
NET CASH (USED IN) INVESTMENT ACTIVITIES			33.827		(4.732.306)
CASH FLOWS FROM FINANCING ACTIVITIES
Contractual liabilities	23		161.103	2.579.214
Financial obligations	19		8.368.292	7.890.511
Disbursement of financial obligations	19		11.500.000	35.594.102
Capital payments of financial obligations	19		(2.739.110)	(6.549.975)
Dividends paid in cash			-	(2.703)
NET CASH PROVIDED BY FINANCING ACTIVITIES			17.290.285		39.511.149
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			18.975.668	(9.162.958)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD			17.490.960	26.528.451
Effect of changes in the exchange difference on cash held for cash equivalents			125.998	125.467
CASH AND CASH EQUIVALENTS AT END OF PERIOD	8	$	36.592.626	17.490.960
			36.592.626	17.490.960
			-	-
See the notes that are an integral part of the consolidated financial statements.			-	-
			-	-

Andrés López Valderrama	Juan Carlos Sánchez	Diego Alejandro Corredor Ortiz
CEO	Public Accountant	Fiscal Auditor
	T.P. 102419 - T	Corporación de Ferias y Exposiciones S.A.
		Usuario Operador de Zona Franca
		Beneficio e Interés Colectivo
		T.P. 199078 - T
		Member of KPMG S.A.S.
		(See my report of March 10th, 2022)

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

BENEFICIO E INTERÉS COLECTIVO Y SUBORDINADA

Notes to the Consolidated Financial Statements

as December 31, 2021

(Figures expressed in thousands of Colombian pesos)

1. Reporting entity

The Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca (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 December 31, 2021 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 its subordinate.

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

The consolidated financial statements include the Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo and its subordinate Corferias Inversiones S.A.S.

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca 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 domicile is in the city of Bogotá at Carrera 37 N ° 24-67.

For 2021, the Parent Company adopted the worldwide practices of benefit and collective interest companies, changing its corporate name from 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 Interés Colectivo, through Public Deed No. 604 of May 6, 2021 of the 23rd Notary Office of Bogotá D.C., registration made under number 02704569 of Book IX on May 12, 2021.

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

As of December 31, 2021, the Subordinate Corferias Inversiones S.A.S. presented a positive result and reduced the gap of the loss generated in the year 2020 by 48%, in addition to this recovery, the National Government issued Law 2069 of 2020, which in its article 4° repealed numeral 7 of article

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