XML 185 R7.htm IDEA: XBRL DOCUMENT

GENERAL INFORMATION

12 Months Ended

Dec. 31, 2022

Disclosure Of General Information About Financial Statements Text Block Abstract

NOTE 1 - GENERAL INFORMATION

LATAM Airlines Group S.A. (“LATAM” or the “Company”) is an open stock company which holds the values inscribed in the Registro de Valores of the Commission for the Financial Market under No. 306, whose shares are listed in Chile on the Electronic Stock Exchange of Chile - Stock Exchange and the Santiago Stock Exchange. Latam’s ADR are currently trading in the United States of America on the OTC (Over-The-Counter) markets. LATAM Airlines Group S.A. and certain of its direct and indirect affiliates announced their emergence on November 3, 2022, from their reorganization proceedings in the United States of America under Chapter 11 of Title 11 of the United States Code at the United States Bankruptcy Court for the Southern District of New York (the Chapter 11 Proceedings”)

Its main business is the air transport of passengers and cargo, both in the domestic markets of Chile, Peru, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe and Oceania. These businesses are developed directly or by its subsidiaries in Ecuador, Peru, Brazil, Colombia, Argentine and Paraguay. In addition, the Company has subsidiaries that operate in the cargo business in Chile, Brazil and Colombia.

The Company is located in Chile, in the city of Santiago, on Avenida Presidente Riesco No. 5711, Las Condes commune.

As of December 31, 2022, the Company’s statutory capital is represented by 606,407,693,000 ordinary shares without nominal value. Of such amount, as of said date, 605,231,854,725 shares were subscribed and paid. The foregoing, considering the capital increase approved by the shareholders of the company at an extraordinary meeting held on July 5, 2022, in the context of the implementation of its reorganization plan approved and confirmed in the Chapter 11 Proceedings.

The major shareholders of the Company considering the total amount of subscribed and paid shares are Banco de Chile on behalf of State Street which owns 46,96%, Banco de Chile on behalf of Non-Resident Third Parties with 12.68%, Delta Air Lines with 10.03% and Qatar Airways with 10,02% ownership (9.999999992% considering the total amount of authorized shares).

As of December 31, 2022, the Company had a total of 2,092 shareholders in its registry. At that date, approximately 0.01% of the Company’s capital stock was in the form of ADRs.

During 2022, the LATAM Group had an average of 30,877 employees, ending this year with a total number of 32,507 people, distributed in 4,627 Administration employees, 16,803 in Operations, 7,423 Cabin Crew and 3,654 Command crew.

The main subsidiaries included in these consolidated financial statements are as follows:

Percentage ownership

				As December 31, 2022						As December 31, 2021						As December 31, 2020
		Country	Functional
Tax No.	Company	of origin	Currency	Direct		Indirect		Total		Direct		Indirect		Total		Direct		Indirect		Total
				%		%		%		%		%		%		%		%		%
96.969.680-0	Lan Pax Group S.A. and Subsidiaries	Chile	US$		99.9959		0.0041		100.0000		99.8361		0.1639		100.0000		99.8361		0.1639		100.0000
Foreign	Latam Airlines Perú S.A.	Peru	US$		23.6200		76.1900		99.8100		23.6200		76.1900		99.8100		23.6200		76.1900		99.8100
93.383.000-4	Lan Cargo S.A.	Chile	US$		99.8940		0.0041		99.8981		99.8940		0.0041		99.8981		99.8940		0.0041		99.8981
Foreign	Connecta Corporation	U.S.A.	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Prime Airport Services Inc. and Subsidiary	U.S.A.	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		99.9714		0.0286		100.0000
96.951.280-7	Transporte Aéreo S.A.	Chile	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.631.520-2	Fast Air Almacenes de Carga S.A.	Chile	CLP		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		99.8900		0.1100		100.0000
Foreign	Laser Cargo S.R.L.	Argentina	ARS		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		96.2208		3.7792		100.0000
Foreign	Lan Cargo Overseas Limited and Subsidiaries	Bahamas	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		99.9800		0.0200		100.0000
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary	Chile	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		99.0000		1.0000		100.0000
96.575.810-0	Inversiones Lan S.A.	Chile	US$		99.9000		0.1000		100.0000		99.9000		0.1000		100.0000		99.7100		0.2900		100.0000
96.847.880-K	Technical Trainning LATAM S.A.	Chile	CLP		99.8300		0.1700		100.0000		99.8300		0.1700		100.0000		99.8300		0.1700		100.0000
Foreign	Latam Finance Limited	Cayman Island	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Peuco Finance Limited	Cayman Island	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Profesional Airline Services INC.	U.S.A.	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Jarletul S.A.	Uruguay	US$		0.0000		100.0000		100.0000		99.0000		1.0000		100.0000		99.0000		1.0000		100.0000
Foreign	LatamTravel S.R.L.	Bolivia	US$		99.0000		1.0000		100.0000		99.0000		1.0000		100.0000		99.0000		1.0000		100.0000
76.262.894-5	Latam Travel Chile II S.A.	Chile	US$		99.9900		0.0100		100.0000		99.9900		0.0100		100.0000		99.9900		0.0100		100.0000
Foreign	Latam Travel S.A.	Argentina	ARS		94.0100		5.9900		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	TAM S.A. and Subsidiaries (*)	Brazil	BRL		63.0901		36.9099		100.0000		63.0901		36.9099		100.0000		63.0901		36.9099		100.0000

(*)

As of December 31, 2022, the indirect participation percentage on TAM S.A. and Subsidiaries is from Holdco I S.A., a company over which LATAM Airlines Group S.A. it has a 99.9983% share on economic rights and 51.04% of political rights. Its percentage arises as a result of the provisional measure No. 863 of the Brazilian government implemented in December 2018 that allows foreign capital to have up to 100% of the property.

Financial Information

		Statement of financial position																								Net Income
																										For the period ended
																										December 31,
		As of December 31, 2022								As of December 31, 2021								As of December 31, 2020								2022			2021			2020
Tax No.	Company	Assets			Liabilities		Equity			Assets			Liabilities		Equity			Assets			Liabilities		Equity			Gain /(loss)
		ThUS$			ThUS$		ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$

96.969.680-0	Lan Pax Group S.A. and Subsidiaries (*)		392,232			1,727,968		(1,342,687	)		432,271			1,648,715		(1,236,243	)		404,944			1,487,248		(853,624	)		(120,717	)		(7,289	)		(290,980	)
Foreign	Latam Airlines Perú S.A.		335,773			281,178		54,595			484,388			417,067		67,321			661,721			510,672		8,691			(12,726	)		(109,392	)		(175,485	)
93.383.000-4	Lan Cargo S.A.		394,378			212,094		182,284			721,484			537,180		184,304			749,789			462,666		172,186			(1,230	)		1,590			10,936
Foreign	Connecta Corporation		78,905			22,334		56,571			61,068			19,312		41,756			57,922			24,023		40,087			14,814			1,169			500
Foreign	Prime Airport Services Inc. and Subsidiary (*)		25,118			24,325		813			24,654			25,680		(1,026	)		25,050			23,102		(1,034	)		1,838			190			(181	)
96.951.280-7	Transporte Aéreo S.A.		283,166			177,109		106,057			471,094			327,955		143,139			546,216			142,423		216,912			(36,190	)		(56,135	)		(39,032	)
96.631.520-2	Fast Air Almacenes de Carga S.A.		16,150			12,623		3,527			18,303			10,948		7,355			20,132			12,601		7,581			1,154			48			500
Foreign	Laser Cargo S.R.L.		(3	)		-		(3	)		(5	)		-		(5	)		(6	)		-		(10	)		-			-			-
Foreign	Lan Cargo Overseas Limited and Subsidiaries (*)		35,991			15,334		20,656			36,617			14,669		21,940			218,435			14,355		203,829			(1,287	)		(806	)		(92,623	)
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary (*)		220,144			148,489		11,661			202,402			113,930		23,563			250,027			86,691		130,823			(11,901	)		(54,961	)		1,452
96.575.810-0	Inversiones Lan S.A. (*)		1,281			56		1,225			1,284			45		1,239			1,394			65		1,329			(14	)		(90	)		50
96.847.880-K	Technical Trainning LATAM S.A.		1,417			1,110		307			2,004			467		1,537			2,181			625		1,556			77			181			60
Foreign	Latam Finance Limited		3,011			211,517		(208,506	)		1,310,733			1,688,821		(378,088	)		1,310,735			1,584,311		(273,576	)		169,582			(104,512	)		(105,100	)
Foreign	Peuco Finance Limited		-			-		-			1,307,721			1,307,721		-			1,307,721			1,307,721					-			-			-
Foreign	Profesional Airline Services INC.		56,895			53,786		3,109			61,659			58,808		2,851			17,345			14,772		2,573			258			278			1,014
Foreign	Jarletul S.A.		16			1,109		(1,093	)		24			1,116		(1,092	)		34			1,076		(1,042	)		(2	)		(50	)		(332	)
Foreign	LatamTravel S.R.L.		92			5		87			64			132		(68	)		1,061			1,106		(45	)		154			(23	)		(33	)
76.262.894-5	Latam Travel Chile II S.A.		368			1,234		(866	)		588			1,457		(869	)		943			1,841		(898	)		2			29			392
Foreign	Latam Travel S.A.		7,303			2,715		4,588			3,778			6,135		2,357			3,977			6,018		(2,041	)		(6,187	)		(2,804	)		(5,610	)
Foreign	TAM S.A. and Subsidiaries (*)		3,497,848			4,231,547		(733,699	)		2,608,859			3,257,148		(648,289	)		3,110,055			3,004,935		105,120			(69,932	)		(756,633	)		(1,025,814	)

(*)	The Equity reported corresponds to Equity attributable to owners of the parent, it does not include Non-controlling participation.

In addition, special purpose entities have been consolidated: 1. Chercán Leasing Limited, intended to finance advance payments of aircraft; 2. Guanay Finance Limited, intended for the issue of a securitized bond with future credit card payments; 3. Private investment funds; 4. Vari Leasing Limited, Yamasa Sangyo Aircraft LA1 Kumiai, Yamasa Sangyo Aircraft LA2 Kumiai,
earmarked for aircraft financing. These companies have been consolidated as required by IFRS 10.

All entities over which Latam has control have been included in the consolidation. The Company has analyzed the control criteria in accordance with the requirements of IFRS 10.

Changes occurred in the consolidation perimeter between January 1, 2021 and December 31, 2022, are detailed below:

(1)	Incorporation or acquisition of companies

On December 22, 2022, LATAM Airlines Group S.A. made the purchase of 1,390,468,967 preferred shares of Latam Travel S.A. Consequently, the shareholding composition of Latam Travel S.A. is as follows: Lan Pax Group S.A. with 5.69%, Inversora Cordillera S.A. with 0.30% and LATAM Airlines Group S.A. with 94.01%. These transactions were between LATAM Airlines Group entities and therefore did not generate any effects within the consolidated financial statements.

On January 21, 2021, Transporte Aéreos del Mercosur S.A. puchased 2,392,166 preferred shares of Inversora Cordillera S.A. from a non-controlling shareholder. Consequently the shareholding composition of Inversora Cordillera S.A. is as follows: Lan Pax Group S.A. with 90.5% and Transporte Aéreos del Mercosur S.A. with 9.5%.

On January 21, 2021, Transporte Aéreos del Mercosur S.A. purchased 53,376 preferred shares of Lan Argentina S.A. from a non-controlling shareholder. Consequently the shareholding composition of Lan Argentina S.A. is as follows: Inversora Cordillera S.A. with 95%, Lan Pax Group S.A. with 4% and Transporte Aéreos del Mercosur S.A. with 1%.