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

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

Separate Statement of Financial Position

(Figures expressed in thousands of colombian pesos)

	Note		december 31st, 2021		december 31st, 2020
ASSETS
Current assets
Cash and cash equivalents	8	$	30.411.316	17.087.824
Accounts receivable	9 y 37		17.343.882	6.105.363
Inventories	10		504.700	876.943
Current tax assets, net	11		2.159.460	-
Other non-financial assets	12 y 37		273.354	982.819
Total current assets			50.692.712		25.052.949
Non-current asset
Accounts receivable	9 y 37		4.348.109	3.082.755
Investments in other financial assets	13		6.109.829	9.264.723
Investments in associates	14		76.208.895	75.440.966
Intangibles	15		11.622.107	12.736.246
Properties and equipment	16		476.382.198	482.749.407
Investment properties	17		79.676.854	78.666.868
Total non-current assets			654.347.992		661.940.965
Total assets		$
	705.040.704		686.993.914
LIABILITY
Current liabilities
Financial liabilities	18		11.164.906	7.198.192
Accounts payable	19 y 37		30.995.034	11.437.476
Current tax liabilities	20		-	227.212
Prepaid income	21		15.403.929	14.622.978
Contractual liabilities	22		354.686	-
Total current liabilities			57.918.555		33.485.858
Non-current liabilities
Financial obligations	18 y 37		140.471.764	136.117.513
Employee benefits	23		1.611.330	1.872.848
Provisions	24		5.109.793	5.735.850
Contractual liabilities	22		-	184.832
Deferred tax liabilities, net	36		40.204.755	38.579.896
Total non-current liabilities			187.397.642		182.490.939
Total Liabilities		$
	245.316.197		215.976.797
WEALTH
Subscribed and paid capital	25		1.673.920	1.673.920
Paid-in shares			43.451.721	43.451.721
Reserves	26		142.210.054	142.210.054
Retained earnings			286.408.040	328.909.463
Other equity interests	27		(7.919.607)	(4.807.429)
Annual Balance			(6.099.621)	(40.420.612)
Total wealth		$	459.724.507		471.017.117
Total liabilities and wealth		$
	705.040.704		686.993.914
			-	-

See the notes that are an integral part of the separate 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 9th, 2022)

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

Income Statement and Other Separate Comprehensive Income (Figures expressed in thousands of colombian pesos)

	Note			december 31st, 2021	december 31st, 2020
Income from ordinary activities	28 y 37	$		72.611.999				16.301.466
Administrative expenses	30 y 37			39.236.096				39.487.387
Selling expenses	31 y 37			37.896.561				13.737.702
Impairment of accounts receivable	9			467.046				1.036.606
Accounts receivable impairment recovery	9			557.724				531.614
Other income	29			6.605.271				22.682.811
Selling costs				938.110				394.349
Other expenses	32			858.575				1.140.312
Profit from operational activities				378.606				(16.280.465)
Financial income	33			1.317.425				2.293.312
Financial expenses	34			8.654.633				15.594.811
Financial cost, net				(7.337.208)			(13.301.499)
Income (loss) under the equity method, net	35			767.928				(5.123.729)
Income before taxes				(6.190.674)			(34.705.693)
Income tax recovery, (expense)	36			91.053				(5.714.919)
Annual Balance				(6.099.621)			(40.420.612)
Other Comprehensive Income	27			(3.112.178)			(5.794.346)
Profit for the period and other total comprehensive income		$		(9.211.799)			(46.214.958)

See the notes that are an integral part of the separate 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 9th, 2022)

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

Separate Statement of Changes in 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		-	-	30.294.204	-	-	(30.294.204)	-
Equity instruments at fair value		-	-	-	-	(5.794.346)	-	(5.794.346)
Profit for the year		-	-	-	-	-	(40.420.612)	(40.420.612)
Balance as of December 31st, 2020	$
1.673.920	43.451.721	142.210.054	328.909.463	(4.807.429)	(40.420.612)	471.017.117
Initial as of January 1st, 2021	$	1.673.920	43.451.721	142.210.054	328.909.463	(4.807.429)	(40.420.612)	471.017.117
Loss carryforward to accumulated losses		-	-	-	(40.420.612)	-	40.420.612	-
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	27	-	-	-	-	(3.112.178)	-	(3.112.178)
Income for the year		-	-	-	-	-	(6.099.621)	(6.099.621)
Balance as of December 31st, 2021	$
1.673.920	43.451.721	142.210.054	286.408.040	(7.919.607)	(6.099.621)	459.724.507

See the notes that are an integral part of the separate 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 9th, 2022)

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

Separate Statement of Cash Flow

(Figures expressed in thousands of colombian pesos)

Years ended December 31st,	Note		2021	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Annual Balance		$	(6.099.621)	(40.420.612)
Adjustments to reconcile net income for the year to net cash used in operating activities
operating activities:
Depreciation	16 y30		7.007.480	6.584.042
Amortization of intangible assets	15 y 30		3.743.415	3.090.588
Impairment accounts receivable	9		467.046	1.036.606
Recovery of impairment accounts receivable	9		(557.724)	(531.614)
Impairment of investments in other financial assets	13		69.779	-
Loss on disposal of property and equipment, net	16 y 32		286	-
Recovery of provisions	29		(668.416)	(992.551)
Provisions for contingencies	24		-	153.415
(Gain) loss on equity method method, net	35		(767.928)	5.123.729
Valuation of investment property	17 y 29		(908.976)	(2.271.545)
Gain on valuation of investments in other financial assets	13 y 33		(60.101)	(45.585)
Non-cash interest contractual liability	22 y 34		8.751	-
Income tax (recovery) expense, net	36		(91.053)	5.714.919
Effect of changes in foreign exchange difference on cash held for cash equivalents			(122.852)	(125.690)
			2.020.086		(22.684.298)
Changes in assets and liabilities:
Accounts receivable			(14.796.709)	15.600.424
Inventories			372.243	250.668
Other non-financial assets			709.465	(728.553)
Taxes, net			(2.400.481)	(14.506)
Accounts payable			19.706.913	(31.860.987)
Employee benefits			(261.518)	(326.083)
Prepaid income			780.951	5.327.615
Provisions			(106.996)	-
Interest paid on financial obligations	18		(8.673.923)	(3.849.892)
Payment of income tax			(214.533)		-
NET CASH PROVIDED BY OPERATION ACTIVITIES			(2.864.502)	(38.285.612)
CASH FLOWS FROM INVESTMENT ACTIVITIES
Redemptions of investments in other financial assets	13		33.037	34.508
Dividends received in cash from investments in other financial assets	29		3.512.311	1.208.003
Loans to subordinated companies	8		(1.265.354)	(3.082.755)
Purchase of intangible assets	15		(2.629.276)	(1.023.009)
Additions to investment properties	17		(101.010)	(12.440)
Purchase of property and equipment	16		(640.557)	(6.476.538)
Property and equipment derecognized due to sale	16		-		3.704.030
NET CASH (USED IN) INVESTMENT ACTIVITIES			(1.090.849)	(5.648.201)
CASH FLOWS FROM FINANCING ACTIVITIES
Contractual liabilities			161.103	2.579.214
Financial obligations	18		8.008.998	4.683.906
Disbursement of financial obligations	18		11.500.000	35.594.102
Capital payments of financial obligations	18		(2.514.110)	(5.432.435)
Dividends paid in cash			-		(2.703)
NET CASH PROVIDED BY FINANCING ACTIVITIES			17.155.991	37.422.084
(DECREASE) NET INCREASE IN CASH AND CASH EQUIVALENTS			13.200.640	(6.511.729)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD			17.087.824	23.473.863
Effect of changes in foreign exchange difference on cash held			122.852		125.690
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	8	$	30.411.316	17.087.824

See the notes that are an integral part of the separate 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 9th, 2022)

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

BENEFICIO E INTERÉS COLECTIVO

Notes to the Separate Financial Statements

as December 31, 2021

(Figures expressed in thousands of Colombian pesos)

1. Reporting entity

Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca Beneficio e Interés Colectivo is a corporation with domicile in Colombia located at Carrera 37 N° 24-67, Bogotá, Cundinamarca, with legal validity until July 2099, constituted by Public Deed No. 3640 of July 18, 1955, of the Second (2nd) Notary Office of Bogotá D.C. Its corporate purpose is to promote industrial and commercial development at the regional, national and international levels and to strengthen Colombia's ties of friendship and cooperation with friendly nations. To organize fairs, national and international exhibitions of industrial, commercial, agricultural or scientific nature within its facilities; as well as to promote and organize the participation of Colombia in fairs and exhibitions held abroad. Its main domicile is located at Carrera 37 N° 24-67, Bogotá, Cundinamarca.

Corporación de Ferias y Exposiciones S.A. User Operator of Free Trade Zone of Collective Benefit and Interest was declared User Operator of Special Permanent Free Trade Zone by means of Resolution No. 5425 of June 20, 2008. According to Public Deed No. 2931 of July 25, 2008 of Notary Office 48 of Bogotá D.C., registered on July 28, 2008 under number 01231243 of Book IX, the company changed its name from Corporación de Ferias y Exposiciones S.A. to Corporación de Ferias y Exposiciones S.A. Usuario Operador de Zona Franca.

By 2021, the Corporation 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 Notary Office 23 of Bogotá D.C., registration made under number 02704569 of Book IX on May 12, 2021.

The Corporation is a subsidiary of the Bogotá Chamber of Commerce, which holds a 79.74% equity interest.

2. Basis of preparation of separate financial statements

1. Technical Regulatory Framework

The separate financial statements have been prepared in accordance with 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 and 938 of 2021. The NCIF applicable in 2021, are based on the International Financial Reporting Standards (IFRS), together with their interpretations, issued by the International Accounting Standards Board (IASB); the base standards correspond to those officially translated into Spanish and issued by the IASB as of the second half of 2020.

The Corporation applies the following guidelines in accordance with applicable Colombian laws and regulations:

• Book 2 of Decree 2420 of 2015, as amended by Article 3 of Decree 2131 of 2016, applicable to Group 1 entities:
  Interests in subsidiaries held by controlling entities should be recognized in the separate financial statements in accordance with the equity method (Article 35 of Law 222), as described in IAS 28.

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