Aena SME S.A.

Annual / Quarterly Financial Statement • Feb 28, 2024

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The attached External Auditor's Report, Annual Accounts and Management Report for the fiscal year ended 31 December 2023, have been originally issued in Spanish. The English version is not considered official or regulated financial information. In the event of discrepancy, the Spanish-language version prevails.

Auditor's Report on Aena S.M.E., S.A.

(Together with the annual accounts and directors' report of Aena S.M.E., S.A. for the year ended 31 December 2023)

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

KPMG Auditores, S.L. Paseo de la Castellana, 259 C 28046 Madrid

Independent Auditor's Report on the Annual Accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

To the shareholders of Aena S.M.E., S.A.:

REPORT ON THE ANNUAL ACCOUNTS

Opinion __________________________________________________________________

We have audited the annual accounts of Aena S.M.E., S.A. (the "Company"), which comprise the balance sheet at 31 December 2023, the income statement, statement of changes in equity and statement of cash flows for the year then ended, and notes.

In our opinion, the accompanying annual accounts give a true and fair view, in all material respects, of the equity and financial position of the Company at 31 December 2023, and of its financial performance and its cash flows for the year then ended in accordance with the applicable financial reporting framework (specified in note 2.2 to the annual accounts) and, in particular, with the accounting principles and criteria set forth therein.

Basis for Opinion _________________________________________________________

We conducted our audit in accordance with prevailing legislation regulating the audit of accounts in Spain. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Annual Accounts section of our report.

We are independent of the Company in accordance with the ethical requirements, including those regarding independence, that are relevant to our audit of the annual accounts pursuant to the legislation regulating the audit of accounts in Spain. We have not provided any non-audit services, nor have any situations or circumstances arisen which, under the aforementioned regulations, have affected the required independence such that this has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

KPMG Auditores S.L., a limited liability Spanish company and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

Key Audit Matters ________________________________________________________

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the annual accounts of the current period. These matters were addressed in the context of our audit of the annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Recognition of revenue from aeronautical services See notes, 4.16 and 23.1 to the annual accounts
Key audit matter	How the matter was addressed in our audit
Revenues from aeronautical services amounted to Euros 2,768,254 thousand in 2023. These revenues are mostly generated from the use of the airport infrastructure by airlines and passengers. Due to the significance of the aeronautical revenues, as well as the large number of transactions of different types and amounts that give rise to the aeronautical revenues in the airports the Company manages, this has been considered a key audit matter.	Our audit procedures included the following: − evaluating the criteria, standards and policies used by the Company to recognise aeronautical revenues. − assessing, with the help of our IT specialists, the design and implementation of the most relevant controls established by Company management for the recognition of these revenues from aeronautical services. We also tested the operating effectiveness of these controls, − as part of our substantive procedures: – we performed a test using computer assisted audit techniques enabling us to assess the existence and accuracy of a large volume of sales transactions during the year, individually matching the revenue to the related amounts collected. – we performed tests of detail on the transactions that generated revenues from aeronautical services to confirm whether revenues had been adequately recognised in the correct period based on their accrual. We also assessed whether the disclosures in the annual accounts meet the requirements of the financial reporting framework applicable to the Company.

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

Other Information: Directors' Report _______________________________________

Other information solely comprises the 2023 directors' report, the preparation of which is the responsibility of the Company's Directors and which does not form an integral part of the annual accounts.

Our audit opinion on the annual accounts does not encompass the directors' report. Our responsibility regarding the information contained in the directors' report is defined in the legislation regulating the audit of accounts, as follows:

• a) Determine, solely, whether the non-financial information statement and certain information included in the Annual Corporate Governance Report and the Annual Report on Directors' Remuneration, as specified in the Spanish Audit Law, have been provided in the manner stipulated in the applicable legislation, and if not, to report on this matter.
• b) Assess and report on the consistency of the rest of the information included in the directors' report with the annual accounts, based on knowledge of the entity obtained during the audit of the aforementioned annual accounts. Also, assess and report on whether the content and presentation of this part of the directors' report are in accordance with applicable legislation. If, based on the work we have performed, we conclude that there are material misstatements, we are required to report them.

Based on the work carried out, as described above, we have observed that the information mentioned in section a) above has been provided in the manner stipulated in the applicable legislation, that the rest of the information contained in the directors' report is consistent with that disclosed in the annual accounts for 2023, and that the content and presentation of the report are in accordance with applicable legislation.

Directors' and Audit Committee's Responsibility for the Annual Accounts ____

The Directors are responsible for the preparation of the accompanying annual accounts in such a way that they give a true and fair view of the equity, financial position and financial performance of the Company in accordance with the financial reporting framework applicable to the entity in Spain, and for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The audit committee is responsible for overseeing the preparation and presentation of the annual accounts.

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

Auditor's Responsibilities for the Audit of the Annual Accounts______________

Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with prevailing legislation regulating the audit of accounts in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with prevailing legislation regulating the audit of accounts in Spain, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves a true and fair view.

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

We communicate with the audit committee of Aena S.M.E., S.A. regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the entity's audit committee with a statement that we have complied with the applicable ethical requirements, including those regarding independence, and to communicate with them all matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated to the audit committee of the entity, we determine those that were of most significance in the audit of the annual accounts of the current period and which are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

European Single Electronic Format ________________________________________

We have examined the digital file of Aena S.M.E., S.A. for 2023 in European Single Electronic Format (ESEF) comprising an XHTML file with the annual accounts for the aforementioned year, which will form part of the annual financial report.

The Directors of Aena, S.M.E., S.A. are responsible for the presentation of the 2023 annual financial report in accordance with the format requirements stipulated in Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (hereinafter the "ESEF Regulation").

Our responsibility consists of examining the digital file prepared by the Company's Directors, in accordance with prevailing legislation regulating the audit of accounts in Spain. This legislation requires that we plan and perform our audit procedures to determine whether the content of the annual accounts included in the aforementioned digital file fully corresponds to the annual accounts we have audited, and whether the annual accounts have been formatted, in all material respects, in accordance with the requirements of the ESEF Regulation.

In our opinion, the digital file examined fully corresponds to the audited annual accounts, and these are presented, in all material respects, in accordance with the requirements of the ESEF Regulation.

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

Additional Report to the Audit Committee _________________________________

The opinion expressed in this report is consistent with our additional report to the Company's audit committee dated 27 February 2024.

Contract Period __________________________________________________________

The Annual General Meeting of Shareholders held on 31 March 2022 appointed us as the Group's auditors for an annual period commencing on 1 January 2023.

Previously, we had been appointed for two periods of three years, by consensus of the shareholders at their ordinary general meeting and have been auditing the annual accounts since the year ended 31 December 2017.

KPMG Auditores, S.L. On the Spanish Official Register of Auditors ("ROAC") with No. S0702

(Signed on original in Spanish)

Francisco Rabadán Molero On the Spanish Official Register of Auditors ("ROAC") with No. 15,797

27 February 2024

Annual Accounts and Management Report corresponding to the fiscal year ended 31 December 2023

Contents

Financial Statements
Balance Sheet	1
Profit and Loss Account	3
Statement of Changes in Equity	4
Statement of Total Changes in Equity	5
Cash Flow Statement	6
Notes to the Annual Accounts
1. Activity	7
2. Basis of presentation	9
3. Distribution/application of the result	10
4. Recording and valuation standards	11
5. Management of operational, financial and climate risks	29
6. Intangible fixed assets	38
7. Property, plant and equipment	41
8. Real estate investments	47
9. Leases	50
10. Financial instruments	52
11. Investments in group, associate and multigroup companies, and other shareholdings	57
12. Transactions and balances with related parties	70
13. Trade and other receivables	76
14. Short-term financial investments	78
15. Financial debt	78
16. Trade and other payables	88
17. Inventories	89
18. Cash and cash equivalents	89
19. Equity	90
20. Accruals	93
21. Provisions	94
22. Public Administrations and fiscal situation	99
23. Revenue and expenses	110
24. Other information	115
25. Audit fees	117
26. Guarantees, commitments and other sureties	117
27. Environmental commitments	117
28. Contingencies	122
29. Subsequent events	123

BALANCE SHEET AS OF 31 DECEMBER 2023

(Expressed in thousands of euros)

			Notes	31/12/2023	31/12/2022
ASSETS
NON-CURRENT ASSETS
Intangible fixed assets	6			188,553	162,738
Intangible assets, concession agreement				6,877	7,517
Computer software				97,981	75,744
Other intangible fixed assets				4,460	5,375
Fixed assets under construction				79,235	74,102
Property, plant and equipment	7			11,787,778	11,913,019
Land and buildings				9,420,793	9,669,058
Technical facilities and machinery				371,255	379,515
Other facilities, tools and furnishings				1,207,902	1,152,118
Other property, plant and equipment				8,036	4,890
Fixed assets under construction				779,792	707,438
Real estate investments	8			134,954	133,853
Land and buildings				134,951	133,827
Other facilities Long-term investments in group and associated				3	26
companies				1,202,982	559,158
Equity instruments	11			181,224	181,224
Loans to companies	10	12		1,021,758	377,934
Long-term financial investments	10	11		104,516	153,187
Equity instruments				57	26
Derivatives	15			19,436	67,670
Other financial assets				85,023	85,491
Non-current trade debts	10			11,305	9,735
Long-term credit right	22.			11,305	9,735
Deferred tax assets	2			36,538	186,902
TOTAL NON-CURRENT ASSETS				13,466,626	13,118,592
CURRENT ASSETS
Inventories	17			5,205	5,773
Trade and other receivables				786,380	601,007
Trade receivables for sales and services rendered	10	13		617,361	564,591
Customers, group and associated companies	10	12	13	14,408	367
Sundry debtors	10	13		1	827
Staff	10	13		1,025	783
Current tax assets	13	22		146,107	9,087
Other loans with Public Administrations Short-term investments in group and associated	13	22		7,478	25,352
companies	10	12		31,504	1,727
Loans to companies				29,666	-
Other financial assets				1,838	1,727
Short-term financial investments	10	17		59,457	35,839
Loans to companies				150	53
Derivatives	15			31,704	31,514
Other financial assets	10			27,603	4,272
Short-term accruals	20			6,470	6,007
Cash and cash equivalents	17			2,221,740	1,435,404
TOTAL CURRENT ASSETS				3,110,756	2,085,757
TOTAL ASSETS				16,577,382	15,204,349

BALANCE SHEET AS OF 31 DECEMBER 2023

(Expressed in thousands of euros)

			Notes	31/12/2023	31/12/2022
EQUITY AND LIABILITIES
EQUITY
Own funds	19			7,466,070	6,742,382
Share capital	19.1			1,500,000	1,500,000
Share premium	19.2			1,100,868	1,100,868
Capitalisation reserve	19.2			164,176	164,176
Legal reserve	19.2			300,000	300,000
Other reserves	19.2			3,311,971	3,312,047
Negative results from previous fiscal years				(347,209)	(499,570)
Profit/(loss) for the fiscal year	3			1,436,264	864,861
Adjustments due to changes in value	19.3			38,355	73,517
Hedging transactions				38,355	73,517
Grants, donations and legacies received	7.5	19.4		278,700	296,790
TOTAL EQUITY				7,783,125	7,112,689
NON-CURRENT LIABILITIES
Long-term provisions	21			106,024	70,987
Obligations from long-term staff benefits				7,349	6,707
Environmental actions				53,191	52,980
Other provisions				45,484	11,300
Long-term guarantees received	10			243,291	163,884
Long-term debts	10			3,539,996	3,302,143
Bonds and other negotiable securities				496,538	-
Debts with credit institutions				3,029,211	3,298,048
Financial leasing creditors				14,070	3,796
Other financial liabilities				177	299
Long-term debts with group and associated companies	10	12	15	2,345,453	3,110,718
Long-term accruals	20			6,513	7,101
Deferred tax liabilities	22			98,276	104,306
TOTAL NON-CURRENT LIABILITIES				6,339,553	6,759,139
CURRENT LIABILITIES
Short-term provisions	21			24,372	54,947
Short-term debts	10			1,325,099	417,451
Bonds and other negotiable securities				4,512	-
Debts with credit institutions				893,500	87,482
Financial leasing creditors				4,616	1,701
Derivatives	15			-	1,162
Other financial liabilities				422,471	327,106
Short-term debts with group and associated companies	10	12	15	787,193	535,721
Trade and other payables				316,179	323,955
Suppliers, group and associated companies	10	12	16	10,417	22,732
Sundry creditors	10	16		171,134	178,365
Staff	10	16		37,412	34,518
Other debts with Public Administrations	16	22		37,730	30,251
Customer advances	10	16		59,486	58,089
Short-term accruals	20			1,861	447
TOTAL CURRENT LIABILITIES				2,454,704	1,332,521
TOTAL EQUITY AND LIABILITIES				16,577,382	15,204,349

PROFIT AND LOSS ACCOUNT

FOR THE FISCAL YEAR ENDED 31 DECEMBER 2023

(Expressed in thousands of euros)

CONTINUING OPERATIONS	Notes			2023	2022
Net turnover	23.1			4,386,767	3,667,058
Works carried out by the company for its assets	7			7,272	6,493
Supplies	23.2			(161,876)	(161,723)
Consumption of raw materials and other consumables				(1,548)	(231)
Works performed by other companies				(160,328)	(161,492)
Other operating revenue				61,156	10,853
Miscellaneous revenue and other current management				14,684	9,910
Operating grants incorporated into profit/(loss) for the fiscal year	19.4.2			46,472	943
Staff costs	23.3			(478,318)	(446,573)
Wages, salaries and similar items				(344,291)	(325,150)
Social charges				(142,491)	(130,380)
Provisions				8,464	8,957
Other operating expenses				(1,180,567)	(1,154,836)
External services	23.4			(966,177)	(974,523)
Taxes	23.5			(155,903)	(155,569)
Losses, impairment and changes in provisions for	13			(25,671)	(19,250)
Other current management expenses				(32,816)	(5,494)
Depreciation and amortisation of fixed assets	6	7	8	(731,721)	(718,685)
Allocation of grants for non-financial fixed assets and	19.4			32,565	34,466
Provision surpluses	23.7			7,556	4,942
Impairment and net gain or loss on disposals of fixed				(4,862)	(11,892)
Impairments and losses	8			(445)	159
Gains or losses on disposals and others	6	7	8	(4,417)	(12,051)
Other profit/(loss) – net	23.8			6,733	(56,482)
OPERATING PROFIT/(LOSS)				1,944,705	1,173,621
Finance income	23.6			112,487	15,976
From marketable securities and other financial instruments
From group and associated companies				43,351	5,208
From third parties				58,719	8,715
Capitalisation of finance expenses	6	7		10,417	2,053
Finance expenses	23.6			(186,779)	(88,588)
- For debts with group and associated companies	12	15		(60,781)	(57,974)
- For debts with third parties				(124,161)	(29,694)
- For the updating of provisions	21			(1,837)	(920)
Exchange differences	23.6			(5)	(6)
Impairment and net gain or loss on disposals of financial	11	23.6		-	9,386
FINANCIAL RESULT	23.6			(74,297)	(63,232)
PROFIT/(LOSS) BEFORE TAX				1,870,408	1,110,389
Income tax	22			(434,144)	(245,528)
PROFIT/(LOSS) FOR THE YEAR FROM CONTINUING				1,436,264	864,861
PROFIT/(LOSS) FOR THE FISCAL YEAR				1,436,264	864,861

STATEMENT OF CHANGES IN EQUITY

FOR THE FISCAL YEAR ENDED 31 DECEMBER 2023

(Expressed in thousands of euros)

Statement of Changes in Equity

A) Statement of recognised revenue and expenses

	Notes	2023	2022
Result of the profit and loss account		1,436,264	864,861
Revenue and expenses directly allocated to equity
For cash flow hedges	19.3	(14,104)	150,653
Grants, donations and legacies received	19.4	54,916	4,806
For actuarial gains and losses		(29)	343
Tax effect		(10,196)	(38,951)
Revenue and expenses directly allocated to equity		30,587	116,851
Transfers to the profit and loss account
For cash flow hedges	19.3	(32,779)	20,927
Grants, donations and legacies received	19.4	(79,037)	(34,466)
Tax effect		27,954	3,385
Total transfers to the profit and loss account		(83,862)	(10,154)
TOTAL RECOGNISED REVENUE AND EXPENSES		1,382,989	971,558

STATEMENT OF CHANGES IN EQUITY

FOR THE FISCAL YEAR ENDED 31 DECEMBER 2023

(Expressed in thousands of euros)

Statement of Total Changes in Equity

B) Statement of total changes in equity

Balance as of 31 December 2023	1,500,000	1,100,868	1,436,264	164,176	300,000	3,311,971	(347,209)	38,355	278,700	7,783,125
Application of result from previous fiscal year	-	-	(152,361)	-	-	-	152,361	-	-	-
Distribution of dividends	-	-	(712,500)	-	-	-	-	-	-	(712,500)
Other transactions with partners and shareholders	-	-	-	-	-	(53)	-	-	-	(53)
Total recognised revenue and expenses			1,436,264	-	-	(23)	-	(35,162)	(18,090)	1,382,989
Balance as of 31 December 2022	1,500,000	1,100,868	864,861	164,176	300,000	3,312,047	(499,570)	73,517	296,790	7,112,689
Application of result from previous fiscal year	-	-	458,133	-	-	-	(458,133)	-	-	-
Other transactions with partners and shareholders	-	-	-	-	-	(36)	-	-	-	(36)
Total recognised revenue and expenses	-	-	864,861	-	-	257	-	128,685	(22,245)	971,558
Balance as of 1 January 2022	1,500,000	1,100,868	(458,133)	164,176	300,000	3,311,826	(41,437)	(55,168)	319,035	6,141,167
Notes	capital 19.1	premium 19.2	year 3	reserve 19.2	reserve 19.2	reserves 19.2	previous fiscal years	changes in value 19.3	legacies received 19.4
	Authorised	Share	Profit/(loss) for the fiscal	Capitalisation	Legal	Other	Negative results from	Adjustmen ts due to	Grants, donations and	Total

CASH FLOW STATEMENT

FOR THE FISCAL YEAR ENDED 31 DECEMBER 2023

(Expressed in thousands of euros)

		Notes		2023	2022
CASH FLOW FROM OPERATING ACTIVITIES (I)				2,089,390	1,696,252
Profit/(loss) for the year before tax				1,870,408	1,110,389
Adjustments of the profit/(loss)				790,772	782,292
Depreciation and amortisation of fixed assets	6	7	8	731,721	718,685
Value adjustments for impairment of trade receivables	13			25,671	19,250
Value adjustments for the impairment of inventories	23.2			1,178	-
Allocation of grants	19.4			(32,565)	(34,466)
Impairment of stakes in Group companies	11.1			-	(9,386)
Impairment of fixed assets	6	7	8	445	(159)
Result from derecognitions and disposals of fixed assets				4,417	12,050
Finance income	23.6			(112,487)	(15,976)
Finance expenses and exchange differences	23.6			219,563	67,667
Finance income/expenses for settlement of financial derivatives (-/+)	23.6	15		(32,779)	20,927
Works carried out by the company for its fixed assets				(7,272)	(6,493)
Change in provisions				(7,556)	(4,942)
Trade discounts granted during the fiscal year	5.1.3 23.1			21,420	17,445
Others				(20,984)	(2,310)
Changes in current capital				(34,422)	44,451
Inventories				(470)	(139)
Debtors and other accounts receivable				(9,590)	(37,990)
Other current assets				2,216	(78)
Creditors and other accounts payable				(27,117)	83,206
Other current liabilities				-	(307)
Other non-current assets and liabilities				539	(241)
Other cash flows from operating activities				(537,368)	(240,880)
Interest payments				(167,284)	(76,641)
Interest received				51,887	1,078
Income tax (payments)/collections	22.2			(421,971)	(165,317)
CASH FLOWS FROM INVESTMENT ACTIVITIES (II)				(1,224,844)	(555,671)
Payments for investments				(1,594,984)	(561,112)
Group and associated companies				(1,020,258)	(3,000)
Intangible fixed assets				(58,922)	(48,449)
Property, plant and equipment				(493,145)	(506,970)
Real estate investments				(1,386)	(430)
Other financial assets				(21,273)	(2,263)
Receipts for divestitures				370,140	5,441
Group and associated companies				370,000	-
Other financial assets				140	5,441
CASH FLOWS FROM FINANCING ACTIVITIES (III)				(78,210)	(1,088,246)
Collections and payments for equity instruments				5,095	4,877
Grants, donations and legacies received	19.4			5,095	4,877
Collections and payments for financial liability instruments				629,195	(1,093,123)
Issue:
- Bonds and similar securities				500,000	-
- Debts with credit institutions				1,610,313	184,370
	15.2
- Others				167,492	85,740
Refund and amortisation of:
- Debts with credit institutions	15.2			(1,080,000)	(730,000)
- Debts with group and associated companies	15.1			(514,364)	(535,836)
- Other debts				(54,246)	(97,397)
Payments for dividends and remuneration from other instruments				(712,500)	-
Dividends	3			(712,500)	-
NET INCREASE/DECREASE OF CASH OR CASH EQUIVALENTS				786,336	52,335
CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD				1,435,404	1,383,069
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD				2,221,740	1,435,404

Notes 1 to 29 of the accompanying annual report are an integral part of these annual accounts 6

Annual Report for the fiscal year ended 31 December 2022

(Amounts in thousands of euros unless otherwise stated)

1. Activity

AENA S.M.E., S.A. (hereinafter, the 'Company' or 'Aena') was incorporated by virtue of article 7 of Royal Decree-Law 13/2010, of 3 December, via which the Council of Ministers was empowered to incorporate the Company. The authorisation for the effective incorporation took place on 25 February 2011 in the agreement of the Council of Ministers of said date, in which the incorporation of the state trading company Aena Aeropuertos, S.A. was authorised, in accordance with the provisions of article 166 of Act 33/2003, of 3 November, on the Assets of Public Administrations (LPAP [Ley del Patrimonio de las Administraciones Públicas]).

On 5 July 2014, pursuant to Article 18 of Royal Decree-Law 8/2014 (ratified subsequent to Act 18/2014), the name of Aena Aeropuertos, S.A. was changed to AENA, S.A. and the state-owned enterprise 'Aeropuertos Españoles y Navegación Aérea' was renamed as ENAIRE ('Ultimate parent company' or 'controlling company').

As a consequence of the provisions of Act 40/2015, of 1 October, on the Legal System for the Public Sector, at the Annual General Meeting held on 25 April 2017, the Company's corporate name was changed to 'Aena S.M.E., S.A.'.

The Company's corporate purpose is, in accordance with its Articles of Association, as follows:

• The organisation, direction, coordination, operation, conservation, administration and management of general interest and state-owned airports, and of those heliports managed by AENA S.M.E., S.A., as well as their related services.
• The co-ordination, operation, maintenance, administration and management of the civil areas of air bases open to civil aviation traffic and joint-use airports.
• The design and preparation of projects, the execution, management and control of investments in infrastructures and facilities referred to in the previous paragraphs, as well as of investments in goods intended for the provision of aerodrome air traffic services attached to said airport infrastructures.
• The evaluation of needs and, if appropriate, the proposal for planning new airport infrastructures, airport rights of way and acoustic easements associated with airports, as well as services which the Company is responsible for managing.
• The performance of public order and security services at the airport facilities it manages, without prejudice to the authority assigned to the Ministry of the Interior in this respect.
• Training in areas relating to air traffic, including the training of aeronautical professionals who require licences, certificates, authorisations or qualifications, and the promotion, disclosure or development of aeronautical or airport activities.
• The shareholding, management and control, directly or indirectly, in foreign airports.

In addition, the Company may engage in all commercial activities directly or indirectly related to its corporate purpose, including the management of airport facilities outside of Spain and any other ancillary and complementary activity that allows a return on investments.

The corporate purpose may be carried out by the Company directly or through the creation of trade companies and, specifically, the individualised management of airports may be carried out through subsidiary companies or through the concession of services.

The aforementioned Act 18/2014 also establishes the integrity of the airport network insofar as its survival ensures the mobility of citizens and economic, social and territorial cohesion in terms of accessibility, adequacy, suitability, sustainability and continuity. It sets out the framework to which the basic airport services are subject and the characteristics and conditions that said network must boast in order to guarantee the objectives of general interest. Thus, the closure or disposal of all or part of any facilities or airport infrastructure necessary to maintain the provision of airport services is prohibited, unless authorised by the Council of Ministers or the Ministry of Public Works. This authorisation can only be granted provided it does not affect the objectives of general interest that must guarantee said network or compromise its sustainability. The absence of authorisation will render closures or disposals null and void, in order to guarantee the complete maintenance of the state airport network. Airport charges, and their key elements, basic airport services and the framework to determine minimum standards of quality, capacity and conditions for the provision of services and investments required for compliance, as well as the conditions for recovering the costs of providing these basic airport services, have been defined (see Note 4.16).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The incorporation of the Company was carried out through the issuance of 61 shares, each with a nominal value of €1,000, fully subscribed and paid by the public business entity 'Aeropuertos Españoles y Navegación Aérea', which was its sole shareholder at that time. The state-owned enterprise 'Aeropuertos Españoles y Navegación Aérea' will maintain, in any case, a majority of the Company's share capital under the terms established by article 7.1, paragraph two of Royal Decree-Law 13/2010, of 3 December, and may sell the rest in accordance with Act 33/2003, of 3 November, on the Assets of Public Administrations.

The registration in the Commercial Registry of the Company's incorporation was made based on the state-owned enterprise 'Aeropuertos Españoles y Navegación Aérea' Board of Directors' Resolution dated 23 May 2011. In this resolution, the contribution to the Company of total assets, rights, debt and obligations associated with the implementation of airport and commercial activities, and other state services related to airport management, including air traffic services [hereinafter, the 'Activity']) and its valuation were approved. The valuation of the contributed activities was approved by said Board in accordance with the completed valuation report, resulting in an amount of €2,600,807,000. This valuation was performed using the equity value of the contributed line of activity at 31 May 2011 as a reference, in accordance with the accounting standards in force and in particular the General Accounting Plan approved by Royal Decree 1514/2007, of 16 November, subsequently amended by Royal Decree 1159/2010, of 17 September, and it complied with the requirements of Article 114 of the Assets of Public Administrations Law (LPAP [Ley de Patrimonio de Administraciones Públicas]).

Subsequently, by means of the Agreement of the Council of Ministers dated 3 June 2011, in order to give substance to the Company's activity and in accordance with Article 9 of Royal Decree-Law 13/2010, of 3 December, an increase in the capital of the Company was approved. This capital increase was carried out through the contribution of non-monetary capital from the transferred line of activity.

Thus, all the assets and liabilities included in the non-monetary contribution were at net book value, except for the assets relating to investments in the equity of group, multi-group and associated companies, which were incorporated into the value of the consolidated Aena Group at 8 June 2011, the effective date of the transaction. Likewise, in accordance with valuation standards 4.1 and 4.2, the assets corresponding to fixed assets were shown at their net book value at the time of the transaction, as broken down in the notes for intangible fixed assets and property, plant and equipment.

The contributed property, plant and equipment relate to rights of any type on the land, buildings and equipment at the airports managed or used by the activity, corresponding to the state-owned enterprise 'Aeropuertos Españoles y Navegación Aérea'. It also includes the use of rights on certain land located at airports, military airfields and air bases, corresponding to the state-owned enterprise 'Aeropuertos Españoles y Navegación Aérea'. The contributed rights refer to the following airports, airfields and air bases:

• Airports for own use: A Coruña Airport, Alicante-Elche Airport, Almería Airport, Asturias Airport, Barcelona-El Prat Josep Tarradellas Airport, Bilbao Airport, Burgos Airport, Córdoba Airport, El Hierro Airport, Fuerteventura Airport, Girona-Costa Brava Airport, F.G.L. Granada-Jaén Airport, Huesca-Pirineos Airport, Ibiza Airport, Jerez Airport, La Gomera Airport, La Palma Airport, Logroño-Agoncillo Airport, Adolfo Suárez Madrid-Barajas Airport, Melilla Airport, Menorca Airport, Son Bonet Airport, Pamplona Airport, Reus Airport, Sabadell Airport, San Sebastián Airport, Seve Ballesteros-Santander Airport, Sevilla Airport, Tenerife Sur Airport, Valencia Airport, Vigo Airport and Vitoria Airport.
• Civil part of joint-use airports with the Ministry of Defence: Gran Canaria Airport, César Manrique-Lanzarote Airport, Tenerife Norte-Ciudad de La Laguna Airport, Madrid-Cuatro Vientos Airport, Málaga-Costa del Sol Airport, Palma de Mallorca Airport, Santiago-Rosalía de Castro Airport and Zaragoza Airport.
• Air bases and military airfields open for civil use: Badajoz Airport, Salamanca Airport, Murcia-San Javier Airport, Valladolid Airport, Albacete Airport, and León Airport.
• Heliports: Ceuta Heliport and Algeciras Heliport.

The Spanish Ministry of Transport, Mobility and Urban Agenda is the functional guardian of the Company. AENA S.M.E., S.A. is the beneficiary of the expropriations associated with the infrastructures it manages.

The registered office of AENA S.M.E., S.A. is located in Madrid (Spain), at Calle Peonías, 12, after the change thereof adopted by its Board of Directors on 30 October 2019.

Moreover, in the Council of Ministers of 11 July 2014, the state-owned enterprise ENAIRE was authorised to initiate procedures for the process of selling the share capital of AENA, S.A. and to dispose of up to 49% of its capital.

This process was completed when shares in AENA S.M.E., S.A. were admitted to trading on the four Spanish stock exchanges; they have been listed on the Spanish continuous market since 11 February 2015. It was first listed on the

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Madrid Stock Exchange after the IPO for 49% of their capital, with a starting price of €58 per share. Later on, in June 2015, Aena joined the Ibex 35, an indicator that includes the top 35 Spanish companies listed on the stock exchange.

The Company is the head of a group of subsidiaries and, in accordance with current legislation, is required to draw up separate consolidated accounts. The consolidated annual accounts of the Aena Group ('Group'), for the fiscal year 2022, were drawn up by the Board of Directors on 27 February 2023 and are deposited in the Madrid Register of Companies. Said consolidated annual accounts for the Group were prepared in accordance with the International Financial Reporting Standards adopted by the European Union (IFRS-EU, hereinafter the 'IFRS') and the IFRIC interpretations in force as of 31 December 2022, as well as with the commercial legislation applicable to companies that prepare financial information in accordance with the IFRS.

2. Basis of presentation

2.1 Functional currency and presentation currency

The annual accounts are presented in thousands of euros, unless otherwise indicated, rounded to the nearest thousand. The Company's functional and presentation currency is the euro. The use of rounded figures can, in some cases, lead to a negligible rounding difference in the totals or changes.

2.2 Regulatory financial information framework applicable to the Company

These annual accounts have been prepared in accordance with the regulatory financial information framework applicable to the Company, which is that established in:

• The Code of Commerce and all other commercial legislation.
• The General Accounting Plan in force, as well as Order EHA/733/2010, of 25 March, on accounting aspects of public companies operating under certain circumstances.
• The mandatory standards approved by the Spanish Accounting and Account Auditing Institute in accordance with the General Accounting Plan and its supplementary standards.
• Order EHA/3362/2010, of 23 December, approving the standards for adapting the General Accounting Plan to public infrastructure concession companies.
• All other applicable Spanish accounting regulations.

2.3 Fair representation

The accompanying annual accounts have been obtained from the Company's accounting records and are presented in accordance with the applicable regulatory financial reporting framework and, in particular, with the accounting principles and policies contained therein, so that they show a fair representation of the equity, financial situation, results and cash flows of the Company during the year. These annual accounts, which were drawn up by the Board of Directors on 27 February 2024, will be submitted for the approval of the Annual General Meeting, estimating that they will be approved without any modification.

2.4 Accounting principles applied

These annual accounts have been presented taking into account all mandatory accounting principles and standards that have a significant effect on these annual accounts. There is no mandatory accounting principle that is no longer applicable.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

2.5 Critical aspects of the valuation and estimation of uncertainty

In the preparation of the accompanying annual accounts, estimates made by the Company's administrators have been used to value some of the assets, liabilities, revenue, expenses and commitments recorded therein. These estimates basically refer to:

• The evaluation of possible impairment losses of certain assets (Note 4.1).
• The recognition of revenue (Note 4.16), both aeronautical and commercial.
• The useful life of property, plant and equipment, intangible assets, and real estate investments (Notes 4.1, 4.2 and 4.3).
• Calculation of current and deferred tax (Note 22).
• Recoverability of deferred tax assets (Note 22).
• Evaluation of litigation, provisions, commitments, assets and contingent liabilities at year end (Notes 4.10 and 4.11).
• The market value of certain financial instruments (Note 4.6).
• Climate risk assessment (Note 5.3).

Some of these accounting policies require the application of a significant degree of judgement by management in selecting the appropriate assumptions to calculate these estimates. These assumptions and estimates are based on past experience, advice received from expert consultants, forecasts and other circumstances and expectations at year-end. Management's evaluation and agreement is taken into consideration with respect to the overall economic situation of the industry in which the Company operates, taking into account the future development of the business. Due to their nature, these judgements are subject to an inherent degree of uncertainty and, therefore, actual results may materially differ from the estimates and assumptions used, forcing the amendment of the estimates made. In such a case, the effect on the annual accounts caused by the modifications, which, if applicable, are the result of the adjustments to be made during the next years, would be recorded prospectively.

However, on the date these annual accounts were prepared, no material changes in short term estimates were expected, therefore, there are no significant perspectives for adjustments to the values of recognised assets and liabilities as of 31 December 2023.

2.6 Comparative information

In compliance with current regulations, figures corresponding to the fiscal year ended on 31 December 2023 are presented for comparative purposes, as well as those for the fiscal year ended on 31 December 2022.

2.7 Grouping of entries

Certain entries on the balance sheet, the profit and loss account, the statement of changes in equity and the cash flow statement are presented in a grouped manner to facilitate their understanding. Although, to the extent that it is significant, the mandatory broken down information has been included in the corresponding notes to the annual report.

3. Distribution/application of the result

The distribution of profits for the fiscal year 2023 proposed by the Board of Directors to the Annual General Meeting is as follows:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Thousands of euros
Allocation basis:
Profit for the fiscal year	1,436,264
	1,436,264
Distribution:
To dividends	1,149,000
To capitalisation reserves	15,236
To losses from previous fiscal years	272,028
	1,436,264

Likewise, the Board of Directors proposes to the Annual General Meeting a reclassification of capitalisation reserves to voluntary reserves for the amount of €113,626 thousand, corresponding to capitalisation reserves that are already freely available due to more than 5 years having elapsed since the close of the tax period to which the reduction applied in the Corporate Tax that required their appropriation was applicable (Note 19.2.2).

The distribution of the Company's profits for the year ended 31 December 2022, approved by the Annual General Meeting at its meeting held on 27 February 2023, was as follows:

	Thousands of euros
Allocation basis:
Profit for the fiscal year	864,861
	864,861
Distribution:
To dividends	712,500
To losses from previous fiscal years	152,361
	864,861

After such approval by the Annual General Meeting, during the 2023 fiscal year, the proposed dividend of €712.5 thousand has been paid. No dividends were paid in the fiscal year 2022.

The Company's reserves designated as freely available for distribution, as well as the profit for the fiscal year, are subject to restrictions on their distribution only if the value of the equity is not less than the share capital, including where this may be as a result of the distribution.

4. Recording and valuation standards

The main recording and valuation standards used to prepare the Company's annual accounts, in accordance with the provisions of the General Accounting Plan, have been the following:

4.1 Other intangible fixed assets

The items of intangible fixed assets are accounted for under the assets section of the balance sheet at their acquisition price, production cost or market assignment value corrected by any amortisation and impairment losses they may have incurred.

The 'Development expenses' are individualised by projects, and they are activated based on studies that support their viability and economic profitability, and which are reviewed annually during the project development period. In the event of any change in the circumstances that enabled a project to be capitalised, the accumulated cost is allocated to results.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Under the heading 'Computer software', the Company collects the amounts paid in relation to the acquisition and development of computer programs. Computer software maintenance costs are recorded in the profit and loss account for the fiscal year in which they are incurred.

As 'Other intangible fixed assets', the Company mainly activates the airport master plans and the studies associated with them, which are amortised over a period of 8 years.

The master plans are resources controlled by the Company from which legal rights are derived, given that they are required by law and approved by the Ministry of Public Works.

For each intangible fixed asset acquired, the Company evaluates whether the useful life is finite or indefinite. For these purposes, it is understood that an intangible fixed asset has an indefinite useful life when there is no foreseeable limit for the period during which it will generate net cash inflows.

The Company has no intangible assets with an indefinite useful life.

With regard to intangible asset items with a finite life, amortisation is calculated according to the straight-line method based on the useful life of the different assets, using the following percentages:

	Years
Development	4
Computer software	6
Other intangible fixed assets	4 - 8

For these purposes, the amortisable amount is understood as the acquisition cost less, if applicable, its residual value.

The Company reviews the residual value, useful life and amortisation method of intangible fixed assets at the end of each fiscal year. The modifications to the initially established criteria are recognised as a change of estimate.

4.1.1 Concession agreement, regulated asset

The sectoral plan of concession companies of public infrastructure regulates the treatment of service concession contract agreements, defining these as those under which the grantor entrusts construction to a concession company, as well as the improvement, and use of infrastructures intended for the provision of public services of an economic nature during the time period set forth in the agreement, obtaining the right to receive compensation in exchange.

In the concession agreements, where the Company directly acts as the concession company, the Company acts as a service provider, specifically, on the one hand, of construction or infrastructure improvement services, and on the other, of operation and maintenance services during the period of the agreement. The consideration received by the Company for the services provided consists of the right to charge a price to users for the use of the public service, whereby this service not unconditional but rather it depends on the users actually using the service. Therefore, the model of the intangible asset is applicable, recording the consideration of the construction or improvement service as an intangible asset within the item of 'Concession agreement, regulated asset' under the heading 'Intangible fixed assets' in application of the model of the intangible asset, in which the demand risk is assumed by the concession company. In the case of the Company, intangible fixed assets include the investment made in the facilities that the Company has received and that, once construction has been completed, it operates as an administrative concession.

If the case arises whereby there is an unconditional right to receive cash or other financial assets from the grantor (or on behalf of the latter), and the grantor has little or no capacity to avoid payment, the consideration for the construction or improvement service is recorded as a financial asset within the entry 'Concession agreement, collection rights' in application of the financial model, in which the concession company assumes no demand risk (the consideration is collected even if the infrastructure is not being used, as the grantor guarantees the payment of a fixed or determinable amount payable to the concession company, or of the deficit, if any).

The right of access to the infrastructure with the purpose of providing the operation service that the grantor awards to the concession company, has been recorded as an intangible fixed asset, in accordance with recording and valuation standard 5 of the General Accounting Plan on 'Intangible fixed assets'.

Subsequent costs incurred in intangible fixed assets are recorded as expenses, unless the expected future economic profits of the assets increase.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

4.1.2 Impairment of the value of intangible assets and of property, plant and

equipment

Property, plant and equipment and intangible assets subject to depreciation/amortisation are submitted for impairment reviews provided that some event or change in circumstances indicates that their book value may not be recoverable. Impairment losses are recognised for asset book values that exceed their recoverable amount. The recoverable amount is determined as the fair value less selling costs or value in use, whichever is higher.

Aena views all its assets as cash flow generators. The recoverable value is calculated for an individual asset, unless the asset does not generate cash inflows that are largely independent from those corresponding to other assets or groups of assets. If this is the case, the recoverable amount is determined for the Cash-Generating Unit (CGU) to which it belongs. To this end, the Company has distinguished the cash-generating unit from the national airport network and each of the assets that are part of the real estate segment.

The Company considers the airport network—comprising all Spanish airports managed by the Company—as a single cash-generating unit, which includes revenues derived from both the aeronautical activity as well as from the commercial activity of the airports, given the high interdependence of both their revenues and the existence of a single asset that both activities share due to the legal impossibility of disposing of, selling or spinning-off the airport assets. On the other hand, for the same reasons, the activity corresponding to the 'parking network' and VIP lounges is part of the 'airport network' cash-generating unit, within 'Commercial activity'.

Likewise, for assets that are part of the real estate segment, the calculation of the recoverable amount is calculated for each of the assets included therein.

With regard to the calculation of the recoverable value of the cash-generating unit of the national airport network, the procedure implemented by Company's Management to perform impairment tests at the cash-generating unit level, where appropriate, is as follows:

• Traditionally, Management prepares a business plan
• on an annual basis that generally covers a time period of four years, including the current fiscal year.
• The main components of the business plan, which is the basis of the impairment test, are as follows:
  • Projected results.
  • Projected investments and working capital.

These forecasts take into account the financial forecasts included in the Airport Regulation Document that is in force at all times (currently this being the DORA II for the period 2022–26) (see Note 5). Other variables that influence the recoverable value calculation are:

• The discount rate to be applied, understood as the weighted average cost of capital. The main variables that influence its calculation are the cost of liabilities and the specific asset risks.
• The cash flow growth rate used to extrapolate the cash flow forecasts beyond the period covered by the budgets or forecasts.

The business plans are prepared based on the best estimates available (see Note 6.5).

With respect to real estate investments, the Company estimates the impairments based on the fair value obtained from the appraisal of the independent expert. The methodology used to determine the fair value of the assets is detailed in Note 8.

Losses related to the impairment of the value of the CGU initially reduce, where appropriate, the value of the goodwill assigned to it and subsequently of the other assets of the CGU, prorated according to the book value of each of the assets, with the limit for each of them being the higher of their fair value minus the costs of transfer or disposal by other means, their value in use and zero.

The possible reversal of impairment losses affecting the value of non-financial assets that suffer an impairment loss is analysed on all dates on which financial information is reported. When an impairment loss is subsequently reversed, the book value of the cash-generating unit is increased up to the limit of the book value that the unit's assets would have had at that time if the impairment had not been recognised. This reversal is classified in the same line in which the impairment loss was originally recognised.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

4.2. Property, plant and equipment

Items of property, plant and equipment are valued at the acquisition cost, production cost or value of the non-monetary contribution corrected by the accumulated depreciation and impairment losses experienced, if any, according to the criteria mentioned in the previous note.

Subsequent additions are valued at their acquisition price, which includes all necessary costs until the asset is in operation.

The Company activates, as the greatest value of the fixed assets, the initial estimate of the costs to repair the site to its original condition, when they constitute obligations incurred by the Company as a result of using the item.

Interest and other financial charges incurred directly attributable to the acquisition or construction of assets at the different airports, which must require a period of at least 12 months to be in operating conditions, are considered to be the highest cost thereof. The capitalisation of interest is carried out through the 'Finance income – Activation of finance expenses' item of the profit and loss account.

The replacements or renewals of complete items that increase the useful life of the good, or its economic ability, are accounted for as the greatest amount of the property, plant and equipment, with the consequent accounting removal of the replaced or renewed elements.

Regular maintenance, conservation and repair expenses are charged to results, following the principle of accrual, as cost for the fiscal year in which they are incurred.

The Company depreciates its property, plant and equipment once it is in conditions of use following the straight-line method, distributing the book value of the assets among the years of estimated useful life, except in the case of lands considered indefinite useful life assets and not depreciated. The useful life of the different goods is as follows:

Buildings	12–51 years
Technical facilities	4–22 years
Machinery	5–25 years
Other facilities	5–20 years
Furniture	5–13 years
Other fixed assets	5–8 years

The breakdown of the elements of property, plant and equipment that are classified as Constructions is as follows:

Buildings	30–51 years
Conditioning	12 years
Airport civil engineering works	25-44 years
Housing development	20 years

The category of buildings mainly includes the terminals for passengers and cargo, hangars, control towers, high-rise parking lots and buildings. The airport civil works comprise the flight runways, taxiing strips and exits, parking aprons and waiting decks. Urban development mainly includes urban infrastructure, car parks, greenery, exterior lighting and roads.

The real estate corresponding to airports is depreciated following the straight-line method based on their useful life, and the years of useful life are specified below:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Passenger and cargo terminals	32–40 years
Airport civil engineering works	25-44 years
Terminal equipment	4–22 years
Passenger transport between terminals	15–50 years
Airport civil engineering equipment	15 years

4.3 Real estate investments

Real estate investments consist of land, buildings, other structures and areas outside the airport terminals that are used for obtaining income from long-term rents and are not occupied by the Company. The items included under this heading are measured at acquisition cost less their corresponding accumulated depreciation and any impairment losses.

The Company recognises and values real estate investments following the criteria established for property, plant and equipment.

The straight-line method is used to calculate the depreciation of real estate investments, based on their estimated years of useful life.

Buildings and warehouses	32–51 years
Technical facilities	15–18 years

4.4 Inventories

The inventories include the spare parts and diverse materials existing in the central warehouses and in the logistics support warehouse. They are initially valued at acquisition price (weighted average price). Commercial discounts, reductions obtained, other similar items and interest incorporated into the nominal amount of the debits are deducted when calculating the acquisition price. The acquisition price is determined based on the historical price for the items identified in the purchase orders. Subsequently, if the replacement cost of the inventories is lower than the acquisition price, the corresponding value adjustments are made. If the circumstances that caused the value correction of the inventories cease to exist, the correction amount is subject to reversal.

Greenhouse gas emission allowances

The greenhouse gas emission allowances received free of charge in accordance with the corresponding allocation plans have been recorded under the 'Inventories' heading of the accompanying statement of financial position, as established in the first additional provision of Royal Decree 602/2016, of 2 December. Their valuation is carried out at the prevailing market price at the start of the period for which they are granted, and they are recorded as a grant in their offsetting entry, within the 'Grants, donations and legacies received' heading under Equity. The allocation to results is made based on the effective consumption of the emission allowances. Following the latest applicable provisions, the greenhouse gas emission allowances acquired from third parties are recorded in inventories. The allowances are initially valued at the acquisition price, and assessed at the end of the fiscal year on whether the market value is below their book value for the purpose of determining whether there is evidence of impairment. If applicable, it is determined whether those allowances will be used in the production process or intended for sale, in which case, the appropriate value adjustments would be made. Such corrections will be voided to the extent that the causes underlying the value correction of the emission allowances cease to exist.

Expenses derived from the consumption of greenhouse gas emission allowances are recorded in the 'Change in inventories' heading of the profit and loss account, based on the difference between the closing balance and opening balance of the inventories that arise as the greenhouse gases are being emitted.

At the end of the fiscal year, the estimated amount of unpurchased allowances according to the best estimate of consumption produced in the year is recorded in 'Purchases of supplies' with a corresponding entry in a provision for risks and expenses, which will be maintained until the moment in which the National Registry for Greenhouse Gas

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Emission Allowances (RENADE [Registro Nacional de Derechos de Emisión]) informs the company of the actual consumption, so that it can submit the necessary allowances once acquired and apply the provision.

Note 17 of this annual report includes detailed information about the emission allowances received and consumed in the current fiscal year.

4.5. Leases

Leases are classified as financial leases provided that the conditions thereof substantially transfer, to the lessee, the risks and rights inherent to the ownership of the asset covered in the contract. All other leases are classified as operating leases.

4.5.1 Financial leases

i. The Company acts as lessee

In financial leasing transactions in which the Company acts as the lessee, the cost of the leased assets is reported in the balance sheet according to the nature of the asset that is the purpose of the agreement as well as, simultaneously, a liability for the same amount. Said amount will be the lesser of the fair value of the leased property and the current value at the beginning of the lease for the minimum agreed amounts, including the purchase option, when there are no reasonable doubts about it being exercised. The calculation will not include contingent fees, service costs and the taxes charged by the lessor. The total financial burden of the contract is allocated to the profit and loss account of the fiscal year in which it is accrued, applying the effective interest rate method. Contingent fees are recognised as expenses for the fiscal year in which they are incurred. There are no operations during this fiscal year or the previous fiscal year in which the company has acted as lessee in financial leasing contracts.

The lessee will apply the corresponding amortisation/depreciation, impairment and derecognition criteria to the assets that have to be recognised in the balance sheet as a consequence of the lease, according to their nature.

ii. The Company acts as lessor

In financial leasing transactions in which the Company acts as the lessor, at the initial time thereof, a credit is recognised for the current value of the minimum payments to be received for the lease plus the residual value of the asset, discounted at the implicit interest rate of the contract. The difference between the credit recorded for the asset and the amount receivable, corresponding to interest not accrued, is allocated to the profit and loss account of the fiscal year as they accrue, according to the effective interest rate method. Contingent charges are expenses for the fiscal year in which they are incurred. The corresponding lease obligations, net of financial burdens, are included in 'Financial leasing creditors'.

4.5.2 Operating leases

i. The Company acts as lessee.

The expenses derived to the operating lease agreements are recorded in the profit and loss account in the fiscal year in which they are accrued.

Any collection or payment that could be made when contracting an operating lease is treated as an advance collection or payment that is attributed to results throughout the lease period, as the benefits of the leased asset are transferred or received.

ii. The Company acts as lessor.

The revenue and expenses corresponding to the operating lease agreements are recorded in the profit and loss account in the fiscal year in which they are accrued. Any collection or payment that could be made when contracting an operating lease is treated as an advance collection or payment that is attributed to results throughout the lease period.

On 19 February 2021, the ICAC responded to a query about the accounting treatment to be given to the rent reductions agreed in lease agreements for a business premises due to the extraordinary measures adopted by the Government to address the effects of the COVID-19 health crisis.

According to said consultation, in the exceptional context caused by COVID-19, when the lessee and lessor have reached an agreement to reduce rent, instead of qualifying this discount for accounting purposes as an incentive to lease—a circumstance that would lead to deferring the reduction over the remaining period of the contract—it would also be

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

possible to consider that the economic event triggering the decrease in the price of transferring the right of use is not related to subsequent fiscal years, but rather to the current economic situation. This circumstance would lead to said agreement not being qualified as an incentive for the lease but rather as a temporary adjustment of the rent during the ongoing economic situation and to grant it, as a result, the treatment established for contingent rent.

As a result, the ICAC has proposed an accounting policy option for the treatment of lease amendments from the point of view of the lessor and lessee.

In the exercise of the accounting policy option indicated in the aforementioned ICAC consultation, rent reductions from lease agreements resulting from contractual amendments derived from the pandemic are considered analogous to contingent rent and, consequently, the corresponding discounts are allocated to results in the year in which the agreement is formalised (Note 23.1).

4.6 Financial instruments

The Company classifies financial instruments at the time of their initial recognition as a financial asset, a financial liability or an equity instrument, in accordance with the economic fund of the contractual agreement.

It recognises a financial instrument when it becomes a mandatory part of the contract or legal business in accordance with the provisions thereof, either as issuer or as holder or acquirer thereof.

4.6.1 Financial assets

The financial assets held by the Company are classified in the categories of Financial assets at amortised cost and Financial assets at cost.

Financial assets at amortised cost

This category includes financial assets for which the Company maintains its investment within the framework of a business model with the aim of receiving cash flows derived from the execution of the contract, and where the contractual conditions of the asset give rise, on specified dates, to cash flows that are only collections of principal and interest on the amount of the outstanding principal.

In general, the following are included in this category:

• Credits for commercial transactions: originated in the sale of goods or in the provision of services for traffic transactions with option to pay later.
• Credits for non-commercial transactions: derived from loans or credit transactions granted by the Company whose collections are for a determined or determinable amount.

The business model is determined by the Management of the Company and at a level that reflects the way in which they jointly manage groups of financial assets in order to achieve a specific business objective. The Company's business model represents the way in which it manages its financial assets to generate cash flows.

These financial assets are initially valued at their fair value, including transaction costs that are directly attributable to them, and subsequently at their amortised cost, with the interest accrued being charged to the profit and loss account by applying the effective interest rate method. Notwithstanding the foregoing, the credits for commercial transactions maturing in no more than one year and that have no contractual interest rate are valued at their nominal value, provided that the effect of not updating the cash flows is not significant.

Impairment

The book value of financial assets is corrected by the Company with the difference charged to the profit and loss account when there is objective evidence that an impairment loss has occurred as a result of one or more events that have occurred after the initial recognition of the asset and that the event or events causing the loss have an impact on the estimated future cash flows of the financial asset or group of financial assets, which can be reliably estimated.

In order to determine impairment losses of financial assets, the Company evaluates the possible losses of both individual assets and groups of assets with similar risk characteristics.

With respect to assets at amortised cost, there is objective evidence of impairment when, after their initial recognition, an event occurs that implies a negative impact on their estimated future cash flows.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The Company considers, as impaired assets (doubtful assets), those debt instruments for which there is any objective evidence of impairment, which may refer primarily to the existence of any unpaid debts, non-compliance, refinancing or the existence of any data that demonstrates the possibility of not recovering all the future cash flows agreed or the possibility of a delay in their collection.

In the case of financial assets valued at their amortised cost, the amount of the impairment losses is equal to the difference between their book value and the present value of estimated future cash flows that they are expected to generate, discounted at the effective interest rate at the time of the initial recognition of the asset. For trade and other receivables, the Company considers as doubtful assets those balances that have overdue items for which there is no certainty of collection and the balances of companies that have fallen into administration and have requested an arrangement with creditors.

Valuation adjustments, as well as their reversal, if applicable, are recognised in the profit and loss account. The impairment reversal is limited to the book value of the financial asset that would be recorded on the date of reversal if the impairment had not been recorded.

Derecognition

The Company derecognises financial assets when the rights to the cash flows of the corresponding financial asset expire or have been surrendered and the risks and benefits inherent in its ownership have been substantially transferred.

Financial assets at cost:

The following investments are included in this category:

• – Equity instruments of group, multigroup and associated companies.
• – Equity loans with contingent interests.

Investments in the equity of group, associated and multigroup companies:

Group companies are considered those related to the Company by a relationship of control, exercised directly or indirectly through subsidiaries, whereas associated companies are those over which the Company has significant influence, exercised directly or indirectly through subsidiaries. Furthermore, the multigroup category includes those Companies over which joint control with one or more partners is exercised, by virtue of an agreement. The investments were recognised at the value of the consolidation made on the date of the non-monetary contribution (Note 1).

If there is objective evidence that the book value is not recoverable, the appropriate value adjustments will be made for the differences between the book value and the recoverable amount, which is understood as the highest amount between its fair value less sales costs and the value in use.

In this regard, value in use is calculated based on the Company's share in the present value of the estimated cash flows from ordinary activities and from the final disposal, or of the expected estimated flows from the distribution of dividends and from final disposal of the investment.

However, and in certain cases, except in the event of better evidence of the recoverable amount of the investment, in the impairment test of this class of assets, the equity of the investee company is taken into consideration, and adjusted, where appropriate, to the accounting principles and standards generally accepted in the Spanish regulations that are applicable, corrected by the net tacit capital gains existing on the date of the valuation. If the participating company forms a subgroup of companies, the net equity derived from the consolidated annual accounts is taken into account, in the event they are drawn up and, otherwise, the net equity of the individual annual accounts is taken into account.

The valuation adjustment and, where appropriate, its reversal, is recorded in the profit and loss account in the fiscal year in which they occur.

The value adjustment for the impairment of the value of the investment is limited to the value of the investment, except in those cases in which contractual, legal or implicit obligations have been assumed by the Company, or payments have been made on behalf of the companies. In the latter case, a provision is recognised in accordance with the criteria set out in section 4.10. Provisions.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Equity loans:

Those loans granted by the Company that have the following characteristics will be considered as equity loans:

a) The Company, as lender, receives a variable interest that is determined based on the performance of the borrower company's activity. The criterion for determining said performance may be net profit, turnover, total equity or any other that the contracting parties freely agree. Additionally, a fixed interest could be agreed regardless of the performance of the activity.

b) The contracting parties may agree on a penalty clause in the case of early amortisation. In any case, the borrower may only amortise the equity loan in advance if such amortisation is offset by an increase of the same amount of its own funds and provided that it does not come from the updating of assets.

c) In terms of order of credit preference, equity loans are placed after common creditors.

d) Equity loans shall be considered net equity for the purposes of capital reduction and liquidation of companies provided for in commercial legislation.

The equity loans that have interest of a contingent nature due to being referenced as non-financial variables of the borrower company—such as sales, EBITDA, profits or the performance of the company's activity—are valued at their cost, which is equivalent to the fair value of the consideration paid or received, adjusted by the transaction costs at the initial time, both for the borrower and the lender. The transaction costs are allocated on a straight-line basis during the term of the loan and the finance income through the accrual criterion.

The financial asset is subsequently subject to general impairment criteria. Said corrections are calculated as the difference between their book value and the recoverable amount, understood as the greater amount between their fair value less the cost of sales and the current value of the best estimate of future cash flows to be collected, whether these are contingent or unforeseen, discounted at an appropriate market rate.

Financial assets are reclassified when the business model is modified for its management or when it meets or ceases to meet the criteria to be classified as an investment in group, multigroup or associated companies or the fair value of an investment ceases to become or becomes reliable, except for equity instruments classified at fair value with changes in equity, which cannot be reclassified.

Assets designated as hedged items are subject to the valuation requirements of hedge accounting.

4.6.2 Financial liabilities

The financial liabilities assumed or incurred by the Company are classified in the category of financial liabilities at amortised cost that correspond to those debits and items payable, which the Company has and that have originated from the purchase of goods and services for company traffic transactions, or those that, without having a commercial origin, are not derivative instruments, originate from loans or credit transactions received by the Company.

These liabilities are initially valued at the fair value of the consideration received, and are adjusted by the directly attributable transaction costs. Subsequently, said liabilities are valued according to their amortised cost. Accrued interest will be accounted for in the profit and loss account, applying the effective interest rate method.

However, debits with a maturity of no more than one year that are initially valued at their nominal value will continue to be valued at that amount.

Assets and liabilities are shown separately in the balance sheet and are shown only at their net amount when the Company has the right to offset amounts recorded, and also intends to settle amounts for the net amount or to realise the asset and settle the liability simultaneously.

The Company derecognises financial liabilities when the obligations that have generated them are extinguished.

In the event of renegotiation of existing debts, no substantial changes in the financial liability are considered to exist when the lender of the new loan is the same as the one that granted the initial loan and the current value of cash flows, including net commissions, does not differ by more than 10% of the current value of cash flows pending payment of the original liability, calculated under that same method.

4.6.3 Derivative instruments

The Company uses derivative financial instruments to mitigate risks primarily stemming from fluctuations in the interest rates associated with its financing. Additionally, at the end of 2022 the Company contracted swaps on Spanish electricity

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

traded on the Iberian Electricity Market (MIBEL [Mercado Ibérico de la Energía Eléctrica]) in order to hedge the inflationary pressures that had been occurring in the price of electricity.

The Company documents the hedge relationships and verifies that the hedging is effective at the end of each fiscal year, for which changes in the fair value or cash flows attributed to the hedged risk are evaluated prospectively throughout the expected term, which is consistent with the established risk management strategy, ensuring that the following requirements are met:

• • There is an economic relationship between the hedged item and the hedging instrument in which the credit risk does not have a dominant effect on the changes in value resulting from this economic relationship.
• • The hedging ratio of the accounting hedge relationship—understood as the amount of the hedged item between the hedge item amount—must be the same as the hedging ratio used for management purposes. In any case, this ratio is adjusted continuously to readjust the hedge relationship.

Derivative financial instruments classified as hedges, in accordance with the preceding paragraph, are recorded as assets or liabilities, depending on their sign, at their fair value, plus, where applicable, the transaction costs that are directly attributable to their contracting, with an offsetting entry in the 'Hedging transactions' account of equity, until they mature, which is when they are allocated to the profit and loss account at the same time as the hedged item.

The hedge relationship is not revoked until the hedge instrument expires, is sold or resolved or the risk management objective has ceased or there is no economic relationship, at which time the hedges are no longer accounted for and any accumulated gain or loss corresponding to the hedge instrument is transferred to the results for the period.

4.6.4 Confirming

The Company has contracted confirming operations with various financial institutions to manage payments to suppliers. The commercial liabilities whose settlement is managed by the financial institutions are included under the heading 'Trade and other payables' on the balance sheet up to the moment in which their settlement, cancellation or expiry has occurred.

Likewise, if debts held with financial institutions are incurred as a result of the assignment of commercial liabilities, they are recognised under the item of Advance on trade debts on the balance sheet. In those cases in which the payment period of the debts initially held with the commercial creditors is postponed, they are cancelled on the original maturity date and a financial liability is recognised in the item of 'Financial debt' on the balance sheet. As of 31 December 2023 and 2022, there are no debts with intermediary financial institutions resulting from confirming transactions performed over commercial liabilities nor have any debts originally held with commercial creditors been postponed.

4.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand and sight deposits held in credit institutions. Highly liquid assets of temporary acquisition are also included in this item, provided they are easily convertible into certain cash amounts and are subject to a negligible risk of changes in value. For these purposes, investments with maturities of less than three months from the acquisition date are included.

In the cash flow statement, the Company presents the payments and collections from highly rotated financial assets and liabilities at their net amount. For these purposes, the rotation period is considered to be high when the term between the acquisition date and the maturity date does not exceed six months.

4.8 Equity

The share capital is represented by ordinary shares. The costs of issuing new shares or options are presented directly against equity, as lower reserves. In the case of the acquisition of the Company's own shares, the consideration paid, including any directly attributable incremental cost, is deducted from the equity until its settlement, new issue or disposal. When these shares are sold or subsequently reissued, any amount received, net of any directly attributable incremental transaction cost, is included in equity.

4.9 Grants, donations and legacies received

Non-repayable grants, donations and legacies of capital are accounted for as such when there is an individualised concession agreement for the grant, the conditions established for their concession have been met and there are no

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

reasonable doubts surrounding their receipt. The Company applies Order EHA/733/2010, of 25 March, which approves accounting aspects of public companies operating under certain circumstances. In the case of grants awarded for the construction of an asset whose execution has not been completed, the grant is classified as non-repayable in proportion to the work executed, provided there are no reasonable doubts that the construction will be completed according to the conditions established in the concession agreement. In general, they are valued at the fair value of the amount or of the good awarded, and are accounted for in equity, deducting the tax effect, being attributed to results in proportion to the depreciation incurred by the assets financed by these grants, except in the case of non-depreciable assets, in which case they are attributed to results for the fiscal year in which their disposal or value adjustment occurs. The official grants awarded to offset costs are recognised as revenue on a systematic basis, throughout the periods in which the costs that are intended to be balanced are extended.

Grants, donations and legacies that are repayable will be recorded as liabilities until they acquire the status of nonrepayable or until they are repaid.

Operating grants are credited to results at the time they are awarded. If they are awarded to finance specific expenses, the allocation will be made as the financed expenses accrue, recording them as liabilities or equity depending on whether or not they are considered repayable.

As indicated in Note 4.4, greenhouse gas emission allowances received free of charge are initially recorded as an asset and a grant within Equity, at market value at the beginning of the fiscal year in which they are activated, and are allocated to the profit and loss account as these allowances are consumed.

4.10 Provisions and contingencies

In the presentation of the annual accounts, the Company differentiates between:

• Provisions: credit balances covering present obligations arising from past events, whose settlement is likely to cause an outflow of funds, but that are indeterminate in terms of their amount and/or timing of settlement.
• Contingent liabilities: possible obligations that arise from past events, whose future materialisation is contingent upon occurrence, or lack thereof, of one or more future events beyond the control of the Company.

The balance sheet includes all provisions whose obligations will, more likely than not, have to be met. Contingent liabilities are not accounted for, but are included in the annual report.

Provisions are recorded at the present value of the best possible estimate of the amount necessary to settle or transfer the obligation to a third party, recording the adjustments arising from updating the provision as a finance expense as it accrues.

4.11 Provisions for work commitments acquired

The cost of the obligations arising from staff commitments is recognised based on their accrual, according to the best estimate calculated with the data available from the Company.

The Company is committed to paying long-term compensation to its staff, both defined contributions and defined benefits. In the case of defined contributions compensation, there will be compensation liabilities when, at the end of the fiscal year, there are accrued unpaid contributions. In the case of defined benefits compensation, the amount to be recognised as a provision corresponds to the difference between the present value of the committed compensation and the fair value of the contingent assets subject to the commitments with which the obligations will be settled.

Specifically, the accompanying balance sheet includes the following provisions for work commitments acquired:

4.11.1 Length of service awards

Article 138 of the 1st Collective Bargaining Agreement for the Aena Group of Companies (state-owned enterprise ENAIRE and AENA S.M.E., S.A.) establishes length of service awards for services effectively rendered for a period of 25, 30 or more years. The Company includes the present value of the best possible estimate of future commitment obligations, based on an actuarial calculation. The most relevant assumptions taken into account to obtain the actuarial calculation are as follows:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Year	2023	2022
Technical interest rate:	3.31%	3.74%
Annual wage growth:	2%	2%
Expected return from the Fund:	-	-
Mortality table:	PERM/F 2020 NP	PERM/F 2020 NP
Financial system used:	Individual capitalisation	Individual capitalisation
Accrual method:	Projected credit unit	Projected credit unit
Retirement age:	65 years	65 years
Disability tables	Ministerial Order 1977	Ministerial Order 1977

4.11.2 Early Retirement Award

Article 154 of the 1st Collective Bargaining Agreement for the Aena Group of Companies (state-owned enterprise ENAIRE and AENA S.M.E., S.A.) stipulates that any employee between the ages of 60 and 64 who is entitled to do so under current provisions may take voluntary early retirement and will receive an indemnity that, taken together with the vested rights in the Pension Plan at the time their employment contract is terminated, is equal to four monthly base salary payments and the length of service bonus for each year remaining until they reach the age of 64 or the relevant prorated amount.

In the 2004 fiscal year, the early retirement awards were outsourced by taking out a single-payment life insurance policy with MAPFRE Vida on 25 March 2004. Currently, pension obligations are insured through Group Life Insurance policies. The Company includes the present value of the best possible estimate of future commitment obligations, based on an actuarial calculation.

The most relevant assumptions taken into account to obtain the actuarial calculation are as follows:

Year	2023	2022
Technical interest rate:	3.31%	3.74%
Annual growth of the awards:	2%	2% thereafter
Expected return from the Fund:	4%	-
Mortality table:	PERM/F 2020 NP	PERM/F 2020 NP
Financial system used:	Individual capitalisation	Individual capitalisation
Accrual method:	Projected credit unit	Projected credit unit
Retirement age:	63 years	63 years

It can be seen that the discount rate used in the valuation at 31 December 2023 was 3.31%, a rate that is slightly lower than that used in the valuation relating to the fiscal year 2022, which was 3.74% for long service awards and early retirement awards.

This lower discount rate is mainly due to the moderation in interest rates. The rate of 3.31% used in the valuation is that derived from the iBoxx AA Corporate Bond Index curve, based on the expected future flows and the financial duration of the commitments subject to valuation, which works out at 13.4 years (same duration as in 2022).

4.12 Severance payments

In accordance with current labour regulations, the Company is obliged to pay compensation to employees with whom it terminates their employment relationship under certain circumstances.

Severance payments are paid to employees when the Company decides to terminate their employment agreement before the normal retirement date or whenever an employee accepts voluntary resignation in exchange for these

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

benefits. The Company recognises these benefits when it has demonstrably committed to ceasing the employment of workers in accordance with a formal detailed plan without the possibility of withdrawal or to providing severance pay as a result of an offer to encourage voluntary resignation. Benefits that are not going to be paid within twelve months from the balance sheet date are discounted at their present value.

4.13 Variable remuneration

The Company recognises a liability and an expense for variable remuneration based on the results of the workers' annual performance evaluation. The Company recognises a provision when it is contractually obliged or when past practices have created an implicit obligation.

4.14 Income tax

The income tax expense or revenue comprises the part related to the current tax expense or revenue, and the part corresponding to the deferred tax expense or revenue.

Current tax is the amount that the Company pays as a result of the tax returns it files for income tax for a particular fiscal year.

Tax credits and other tax benefits applicable to the tax amount due, excluding withholdings, prepayments and tax losses carried forwards from previous years and applied in the current year, result in a reduction in current tax.

The deferred tax expense or revenue corresponds to the recognition and settlement of deferred tax assets and liabilities. These include the temporary differences identified as those amounts that are expected to be payable or recoverable arising from differences between the book value of the assets and liabilities and their tax value, as well as the tax losses that can be used to offset future taxes and the tax deductions not applied for tax purposes. These amounts are recorded by applying the tax rate at which they are expected to be recovered or paid to the corresponding temporary differences or credits.

Deferred tax liabilities are generally recognised for all taxable temporary differences, except those derived from the initial recognition of goodwill or other assets and liabilities in a transaction that does not affect the tax result or accounting profit and is not a business combination.

On the other hand, deferred tax assets are only recognised to the extent that it is considered likely that the Company will have future tax profits against which to make them effective.

Deferred tax assets and liabilities are recognised in the balance sheet as non-current assets or liabilities, regardless of the expected date of their realisation or settlement.

Deferred tax assets and liabilities arising from transactions charged or credited directly to equity are also recognised with a balancing entry in equity.

Recognised deferred tax assets are reassessed at the end of each reporting period and the appropriate adjustments are made to them to the extent that there are doubts as to their future recoverability. Likewise, deferred tax assets not recognised in the balance sheet are also reviewed at the end of each reporting period and are recognised insofar as their recovery with future tax benefits becomes probable.

On 5 June 2015, the Tax Agency communicated the creation of new Fiscal Group 471/15 made up of Aena S.M.E., S.A. as the parent company and Aena Desarrollo Internacional S.M.E., S.A. as a subsidiary company. Therefore, this fiscal group has paid Corporate Income Tax since the 2015 fiscal year. In the 2019 fiscal year, the newly created company Aena Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A. was included in the consolidated fiscal group.

4.15 Transactions denominated in foreign currency

The Company's functional currency is the euro. Consequently, transactions in currencies other than the euro are considered to be denominated in 'foreign currency' and are recorded at the exchange rates in effect on the transaction dates.

Exchange differences in monetary items in foreign currency that arise both when they are settled and converted at the closing exchange rate are generally recognised in the profit and loss account for the fiscal year in which they occurred.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

4.16 Revenue and expenses

Revenue and expenses are recorded when the actual flow of goods or services that they represent takes place, regardless of the moment in which the monetary or financial flow arising from them occurs.

As a general criterion, the Company will recognise revenue when there is a transfer of control of the goods or services committed to the customer and for the amount expected to be received from the latter. To carry out this revenue accounting criterion, a five-step process is followed:

Step 1: Identify the contract (or contracts) with the customer.

Step 2: Identify performance obligations in the contract.

• Step 3: Determine the price of the transaction.
• Step 4: Allocate the transaction price between the performance obligations of the contract.

Step 5: Recognise revenue from ordinary activities when (or as) the entity satisfies a performance obligation.

The revenue will therefore be recognised at an amount that reflects the consideration to which the Company expects to receive, in exchange for the transfer of goods or services to a customer, at the time in which the customer obtains control of the goods or services provided. This control is based on the ability to decide on the use and substantially obtain all economic benefits derived from the good or service. The point at which said control is transferred (at a certain point or over time) determines the recognition of the revenue.

The revenue derived from commitments that are fulfilled over time, as may be the case for goods or services whose control is not transferred at a given time, is recognised considering the degree of realisation of the provision at the closing date, provided that reliable information is available to measure the degree of realisation. Otherwise, revenue will only be recognised in an amount equivalent to the costs incurred that are expected to be reasonably recovered in the future.

The revenue derived from commitments that are fulfilled at a given time are recognised on that date, with the costs incurred up to that time in the production of the goods or services being accounted for as inventory.

Ordinary revenue arising from the sale of goods and from the provision of services is valued at the monetary amount received or, where appropriate, at the fair value of the consideration received, or expected to be received, and which, unless evidenced otherwise, will be the agreed price deducted from any discount, taxes and interest incorporated into the nominal amount of the credits. The best estimate of the variable consideration will be included in the valuation of revenue when its reversal is not considered highly probable.

4.16.1 Revenue from aviation services

The majority of the Company's revenue is from the airport services provided, which mainly correspond to the use of airport infrastructure by airlines and passengers (including airport charges and private prices). For this type of revenue, customers are considered to be airlines with whom there are no long-term contracts and to whom the charges—which are regulated and approved in accordance with the current regulatory framework—are applied as and when the infrastructure is used. Hence, the revenue is recognised at that time of provision of the airport service.

In this regard, the services are provided to the airlines based on the corresponding request in accordance with the published regulated prices, rather than through individual fixed-amount contracts. Depending on the service provided, the transaction price is calculated based on a fixed price per landing, parking, per passenger and per weight. Where applicable, separate incentive agreements are signed with each airline. These charges are recognized at the time the service is rendered and performed.

a) Public charges

Act 18/2014 of 15 October establishes the legal framework applicable to the airport network of Aena. In terms of airport charges, the regulatory framework is defined in Articles 32 to 40 of the aforementioned Act 18/2014, and has evolved in recent years in line with European regulations, adapting the changes introduced to Directive 2009/12/EC on airport charges.

According to this Act, the considerations that Aena, S.A. is entitled to receive for basic aeronautical services are regarded as airport charges and are therefore subject to regulation. These basic aeronautical services are those that correspond to the provision of public aviation services as detailed below:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• Use of runways at civil airports and at common-use airports and of air bases open to civil aircraft traffic, and the provision of services required for such use, other than ground handling of aircraft, passengers and cargo.
• Air traffic services provided by the airport operator, regardless of whether such services are provided through duly certified air traffic service providers that have been contracted by the airport operator and appointed for this purpose by the Ministry of Public Works.
• Meteorological services provided by the airport operator, regardless of whether such services are provided through duly certified meteorological service suppliers and, moreover, appointed for this purpose by the Ministry of the Environment and Rural and Marine Affairs.
• Inspection and screening services for passengers and luggage on airport premises as well as the resources, facilities and equipment required for the provision of services for the controlling and monitoring in aircraft movement areas, open access areas, controlled access areas and restricted security areas on the entire airport premises connected to airport charges.
• Airport facilities made available to passengers, and which are not accessible to visitors, in terminals, on aprons and runways which are required to perform the air transport contract.
• Services that allow the general mobility of passengers and necessary assistance to persons with reduced mobility (PRM) to allow them to travel between the point of arrival at the airport to the aircraft, or from the aircraft to the exit, including boarding and disembarkation from the aircraft.
• Use of aircraft parking areas equipped for this purpose at airports.
• Use of airport facilities to facilitate passenger boarding and disembarkation for airlines using airbridges or the mere use of an apron position that impedes the use of the airbridge by other users.
• Use of airport premises for the transport and supply of fuels and lubricants, regardless of the means of transport or supply.
• Use of airport premises to provide ground handling services that are not subject to any other specific consideration.

In relation to the revenue to be received by Aena, the Act establishes a ceiling on the revenue per passenger: the Annual Maximum Revenue per Passenger (IMAP). This ceiling must allow for the recovery of efficient operator costs, including capital cost.

The IMAP will be adjusted annually based on the penalties/discounts given for compliance with certain levels of service quality and in relation to the annual investment schedule, thus establishing the Adjusted Annual Maximum Revenue per Passenger (IMAAJ).

Act 18/2014 establishes that the Airport Regulation Document (hereinafter, DORA) is the instrument that must determine the five-year regulation conditions for the entire airport network of Aena.

The DORA sets the change in the IMAP over five-year periods, establishing an initial value, IMAP⁰ , and an annual percentage change, X, of equal amount for all years of the five-year period, which will be applied to the IMAP of the previous year in each year of the regulatory period.

A percentage increase or decrease in prices of inputs outside the control of the operator (P-index), which is not put forth in the DORA, but rather is established in the year prior to the application of each IMAP, is subsequently added to this annual percentage change.

On 10 April 2019, the Royal Decree 162/2020 if 22 March was published, which develops the mechanism for calculating the P index using a formula that depends on specific indexes applicable for the review of the airport operator's costs, as well as the procedure for determining its annual value. The National Markets and Competition Commission (CNMC [Comisión Nacional de los Mercados y la Competencia]) is the body responsible for approving the value of the P index in accordance with current regulations.

On 28 September 2021, the Council of Ministers approved the DORA for the period 2022–26 (DORA II). The value of the initial IMAP for the period 2022–26 established therein is €9.89, which is the value of the regulated revenue required per passenger established for the year 2021, in accordance with the CNMC Resolution of 11 February 2021, and a freeze is established on Aena's airport charges during the next five years (with the value of X or the annual change being 0%).

The calculation and establishment of airport charges will be made based on the following scheme:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• Establishment of the IMAP that allows for the recovery of costs of basic airport services over the five-year period, with the application of the P-index calculated annually.
• Calculation of the IMAAJ: the Spanish Aviation Safety and Security Agency (AESA [Agencia Estatal de Seguridad Aérea]) oversees the annual compliance of the DORA, issuing a report. Aena calculates the IMAAJ by considering incentives and penalties for quality of service and delays in the execution of investments.
• Calculation of charges: Aena proposes the charge per service and airport based on the IMAAJ.
• Consultation: a consultation process is conducted with users and possible adjustments are negotiated.
• Supervision: supervision and resolution of appeals by the CNMC.

On 21 December 2021, the Board of Directors of Aena approved an IMAAJ for 2022 of €9.95 per passenger, which includes €0.80 per passenger for the recovery of the COVID-19 costs incurred by Aena in the period of 2020 to September 2021, both inclusive, which represented a change in the charges of -3.17% with respect to the IMAAJ of 2021.

On 17 February 2022, the CNMC issued its supervisory decision for airport charges for 2022, declaring the charges approved by Aena's Board of Directors to be compliant and applicable.

On 24 November 2022, the CNMC issued its Resolution in monitoring airport charges for 2023, establishing an IMAAJ of €9.95 per passenger to be applied, which represents a change in the charges of 0%.

On 25 July 2023, the Board of Directors approved the airport charges for 2024, which were decided by the National Markets and Competition Commission (CNMC) on 1 February 2024. The IMAAJ for 2024 is set at €10.35 per passenger, which implies a change of 4.09% compared to 2023, equivalent to 40 cents per passenger on average. The charges endorsed by the CNMC will enter into force on 1 March 2024 (Note 29).

All these regulations have not led to any change in the Company's revenue recognition policy, which continues to be subject to the explanations at the beginning of this Note. In particular, the revenue regulated in the DORA period has been recognised in 2023 according to the same criteria as in previous fiscal years—that is, it is recorded when the service is provided—based on the approved regulated charges.

b) Other unregulated airport services

For AENA S.M.E., S.A.'s remaining non-regulated airport services, the same principle applies—revenue is recognised at the time of their provision, at the applicable prices and charges in each case.

c) Other revenue

The Company has formalised contracts for the provision of technical assistance services with other companies of the Group that incorporate different performance obligations. These performance obligations are all completed annually and the consideration, fixed or variable, is also on an annual basis. The recognition of revenue is produced in full in the same fiscal year and therefore no assets or liabilities associated with the contract are recorded. In the fiscal year 2022 and 2023, these revenues have not been significant for the Company.

4.16.2 Recognition of revenue from commercial contracts

Airport revenues include revenue from commercial activity, which includes rents from lease agreements or assignment of business premises entered into between the Company and the various private operators for the performance of commercial activities at airports as well as those directly managed by Aena (parking lots and VIP lounges).

Revenue from the rental of commercial areas located within airport infrastructures corresponding to the Minimal Annual Guaranteed Rent (MAG) is recognised on a straight-line basis, provided there isn't another criterion that best reflects the economic substance of the lease agreements concluded with the counterparties (see Note 4.5). The contingent part of the revenue from rent relating to the variable levels of income generated by the commercial areas is recognised as revenue in the period in which it is accrued. As indicated in Note 5, as a consequence of the entry into force of DF7, from 21 June 2020, the contractual MAG rents are automatically reduced on an airport-by-airport basis in direct proportion to the lower volume of passengers at the airport where the premises is located with respect to the volume of passengers at the same airport in 2019. This reduction in rents applies in all subsequent years until the annual volume of passengers at the airport reaches the level observed in 2019. Therefore, the MAG rents from contracts affected by DF7 are recorded as revenue from variable lease payments until traffic recovery occurs.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Revenue from parking lots is recognised as the services are provided.

In its capacity as lessor, the Company accounts for the modification of an operating lease as a new lease from the effective date of the modification.

4.16.3 Real estate services

Real estate service revenue originates from land leases, warehouses and hangars, and the management and operation of cargo centres. Revenue from rental contracts is recognised on a straight-line basis in accordance with the lease agreements concluded with the counterparties. The conditional part of rental revenue is recognised as revenue in the period in which it is accrued.

4.17 Interest and dividends

Revenue from interest is recognised using the effective interest method.

Revenue from dividends is recognised when the right to receive the dividend payment is established and it is probable that the entity will receive the economic benefits associated with the dividend.

In any case, interest and dividends on financial assets accrued subsequent to the time of acquisition are recognised as revenue in the profit and loss account.

In relation to dividends received, any distribution of available reserves will be classified as a transaction of 'profit distribution' and, consequently, will result in the recognition of revenue received by the partner, provided that, from the acquisition date, the investee company or any company of the Group invested by the latter has generated profits for an amount greater than the own funds that are distributed. The judgement on whether profits have been generated by the investee company will be made based exclusively on the profits recorded in the individual profit and loss account from the acquisition date, unless the distribution charged to such profits must be classified as a recovery of the investment from the perspective of the company receiving the dividend.

4.18 Activities affecting the environment

Any operation designed mainly to prevent, lessen or repair damage to the environment is treated as an environmental activity.

In this regard, investments derived from environmental activities are valued at their acquisition cost and are activated as the highest cost of fixed assets in the fiscal year in which they are incurred, following the criteria described in section 4.12 of this same note.

Expenses incurred to protect and improve the environment are assigned to the results for the fiscal year in which they accrue, irrespective of when the related monetary or financial flow takes place.

Provisions for probable or certain liabilities, litigation in progress and outstanding indemnity payments or obligations of an indeterminate amount related to environmental issues, not covered by the insurance policies taken out, are constituted at the time when the liability or obligation determining the indemnity arises.

4.19 Related-party transactions

A party is considered to be related to another when one of them or a group that acts together, exercises or has the possibility to exercise—directly or indirectly, or by virtue of pacts or agreements between shareholders or interested parties—control over another or a significant influence on the financial and operational decision-making of the other.

In any case, related parties will be considered as those companies that are considered a group, associated or multigroup company.

As a company that belongs to the public business sector, Aena is exempt from including the information contained in the section of the annual report on related-party transactions when the other company is also controlled or significantly influenced by the same Public Administration, as long as there are no signs of influence between them, or when the transactions are not significant in terms of their size. This influence is understood to exist when the operations are not conducted under normal market conditions (unless these conditions are imposed by a specific regulation), among other cases.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The Company conducts all its related-party transactions at market values. Additionally, the transfer prices are properly supported, thus the Company directors believe that there are no significant risks in this respect that could arise from any liabilities that may exist in the future.

Generally speaking, transactions between the group companies are initially accounted for at fair value. Where applicable, if the agreed price differs from its fair value, the difference is recorded considering the economic reality of the transaction. The subsequent valuation is performed in line with the provisions of the corresponding regulations.

Despite this, in transactions of mergers, spin-offs or non-monetary contributions of a company, the constituent elements of the acquired business are valued by their corresponding amounts once the transaction has been completed, in the consolidated annual accounts of the group or subgroup.

When the parent company of the group or subgroup, and its subsidiary, is not involved, the annual accounts to be considered for these purposes will be those of the largest group or subgroup with a Spanish parent company to which the assets belong.

In these cases, the differences that may be found between the net value of the assets and liabilities of the acquired Company, adjusted by the balance of the groupings of grants, donations and legacies received, and adjustments of changes in value, and any amount of the capital and share premium, if applicable, issued by the absorbing company are recorded in reserves.

4.20 Business combinations

The merger, split and non-monetary contribution transactions of a business between group companies are recorded in accordance with the provisions for transactions between related parties.

Merger or spit transactions other than the foregoing and business combinations arising from the acquisition of all equity items of a company, or a party constituting one or more businesses, are recorded in accordance with the acquisition method.

In the case of business combinations arising as a result of the acquisition of shares or holdings in the capital of a company, the Company recognises the investment in accordance with the provisions for investments in the equity of group, multigroup and associated companies.

4.21 Joint ventures

A joint venture is an economic activity jointly controlled by two or more natural persons or legal entities. For these purposes, joint control is a statutory or contractual agreement under which two or more interested parties agree to share the power to direct financial and operational policies over an economic activity in order to obtain economic benefits, in such a way that strategic decisions, both financial and operational, related to the activity require the unanimous consent of all interested parties.

Joint ventures can be:

• Joint businesses that are not manifested through the incorporation of a company or the establishment of a financial structure independent of the interested parties, such as temporary unions of companies or joint ownership, and which include:
  • Jointly controlled operations: activities that involve the use of assets and other resources owned by the interested parties.
  • Jointly controlled assets: assets that are owned or jointly controlled by the interested parties.
• Joint businesses manifested through the constitution of an independent legal entity or jointly controlled companies.

4.21.1 Jointly controlled operations and assets (Note 7.11)

The company manages assets that are jointly controlled with the Ministry of Defence (note 1) to operate Air Bases Open to Civilian Traffic (BAATC) via an agreement with the Ministry of Defence, which stipulates the rules on the assignment and criteria of compensation for civilian aircraft using the BAATCs in Valladolid Airport, León Airport, Albacete Airport,

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(Amounts in thousands of euros unless otherwise stated)

Salamanca Airport, Badajoz Airport and the common-use airfield in Zaragoza Airport. This agreement is based on the application of Royal Decree 1167/1995, of 7 July, on the system of using airfields, which are used both as an air base and an airport, and on air bases open to civilian traffic.

In this sense, the Company recognises the assets and liabilities derived from this agreement as a result of the use of the BAATCs in the annual accounts. Likewise, the profit and loss account recognises the corresponding part of the revenue generated and the expenses incurred for operating the jointly controlled assets.

4.22 Current and non-current items

Current assets are considered to be those linked to the normal operating cycle, which is generally considered to be one year, as well as those other assets whose maturity, disposal or realisation is expected to occur in the short term from the closing date of the fiscal year, financial assets held for trading—with the exception of financial derivatives whose liquidation term is greater than the year—and cash and cash equivalents. Assets that do not meet these requirements are regarded as non-current.

Similarly, current liabilities are those linked to the normal operating cycle, financial liabilities held for trading—with the exception of financial derivatives whose settlement term is greater than the year—and, in general, all obligations whose maturity or termination will occur in the short term. Otherwise, they are classified as non-current.

5. Management of operational, financial and climate risks

In 2023, the air traffic levels were recovered, having reached an annual record of passengers in Aena's Spanish airport network, and having overcome the unexpected situation experienced by the COVID-19 pandemic. The aviation sector was dramatically affected during 2020 and 2021 by the circumstances surrounding the COVID-19 pandemic, which forced the establishment of mobility restrictions that were modulated as the pandemic developed. In this context, the airports managed by Aena suffered a reduction in operations and in the passenger traffic levels since the start of the historically unprecedented pandemic, and only began to recover during 2022 and consolidating the recovery in 2023, with traffic levels recorded in both years coming very close to those recorded in 2019, the last year prior to the pandemic.

The significant recovery in traffic, indicated in the previous point, as well as the economic-financial results achieved by the Company in the fiscal years 2022 and 2023 show a substantive improvement that allows us to confirm that the negative effects of the pandemic have been overcome. This is also reflected in the business forecasts set out in the strategic plan published on 16 November 2022, which puts across the vision for the future of the Company and the rest of the Group's companies and establishes a series of objectives associated, among others, with aeronautical, commercial and international activity, the development of airport cities and sustainability.

Passenger traffic

The Spanish airports managed by Aena have closed the 2023 fiscal year with 3% more passenger traffic compared to the same period of the 2019 fiscal year (2022: 11.5% lower than 2019), which represents a recovery of 103% of prepandemic traffic volume (2022: recovery of 88.6% compared to 2019). If we compare them with 2021, the fiscal year affected by the COVID-19 health crisis, 2023 has closed with an increase in passenger traffic of 135.4% (2022 compared to 2021: 103.1%). Specifically, in this fiscal year, a passenger volume of 282.3 million has been recorded, compared to 243.7 million in 2022, already exceeding the level of 274.2 million passengers in 2019.

Cargo traffic

Cargo activity continues to evolve positively. The 2023 fiscal year has been closed with a recovery of 100.9% of the volume of cargo compared to the 2019 fiscal year, reaching a historical record.

Commercial activity

The recovery of commercial activity at Spanish airports has occurred in line with the recovery of traffic volume. In the fiscal year 2023, the significant increase in passenger traffic has meant an increase in both the variable rents invoiced by airports, as well as the Minimum Guaranteed Rents of the new contracts awarded, due to the business expectation. It should be noted that the award for the tender of the new duty-free shops (DFS), only in the first year, has improved the MAG rents of the previous DFS contracts by 16.2%.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

It should also be noted that, as a result of the health crisis and the measures taken by the public authorities that caused an unprecedented drop in air traffic, since the end of 2020 and during fiscal year 2021 some agreements were reached with the commercial operators, carrying out the formalisation of the corresponding contractual modifications that have mainly resulted in reductions in the MAG rents established in contracts for 2020 and 2021. During 2023 and 2022, contractual amendments to the 2020 and 2021 MAG rents have continued to be formalised. This has resulted in a total reduction of the MAG rents for these fiscal years to the amount of €24,340 thousand for contractual modifications formalised in 2023 and €17,445 thousand for contractual modifications formalised in 2022.

In other cases, since it was not possible to reach an agreement regarding the rent, commercial operators have filed claims. The Company has also filed claims for amounts in cases where commercial operators have not complied with the MAG rent payments (Note 23.2.1).

Additionally, the MAG rents established in the commercial lease agreements executed between Aena S.M.E., S.A. and its commercial operators, were modified as a result of the effective date, dated 3 October 2021, of the 7th Final Provision of Act 13/2021, of 1 October, which amends Act 16/1987, of 30 July, pertaining to Land Transport Management (hereinafter DF7). As a consequence, from 21 June 2020, the contractual MAG rents were automatically reduced on an airport-by-airport basis in direct proportion to the lower volume of passengers at the airport where the premises is located with respect to the volume of passengers at the same airport in 2019. This reduction in rents applies in all subsequent years until the annual volume of passengers at the airport reaches the level observed in 2019.

In 2023, a total of 42 of the 47 airports in the national network have recorded traffic volumes higher than in 2019, with the exception of the Adolfo Suárez Madrid-Barajas Airport, Barcelona-El Prat Josep Tarradellas Airport, La Palma Airport, Reus Airport and the Girona-Costa Brava Airport. These airports have reached traffic levels close to those of 2019.

Notwithstanding the foregoing, both traffic and the commercial activity recovery the airports managed by the Company could be affected as a result of the uncertainty associated with the main operational, financial and climate change risks described below.

5.1 Description of the main operational risks

5.1.1 Risks arising from uncertainty of the macroeconomic and geopolitical environment

The observed traffic recovery may be impacted by the current uncertainty of the macroeconomic environment and geopolitical risks.

With regard to the macroeconomic environment, the economic backdrop remains subject to risks such as persistent inflation or tightening monetary policy, with rising rates. Lower disposable income for families may involve cutting back on non-essential expenses, such as tourism. Major national and international bodies expect economic growth to slow by 2024, especially in Europe. Although Spain has seen a 2.5% growth in its economy in 2023, while in eurozone countries growth has been only 0.5%, for 2024 the forecasts for Spain are more moderate and its growth is estimated to be around 1.7%. These circumstances could slow tourism growth.

The global geopolitical situation is currently marked by the uncertainty arising from the evolution of war conflicts in the Middle East and Ukraine, whose impact on the global economy and tourism can be significant, both in the short and medium term.

Additionally, economic risks and confrontations among the main global powers (e.g. the USA and China), could further erode global economic growth, slowing the recovery.

Other risks or uncertainties that could affect air traffic are:

• Market restructuring may occur as a result of the merger of some airlines (e.g. Iberia and Air Europe), as well as due to the change in the current balance between flag and low-cost companies, and the consolidation of the tour operating market.
• There is also uncertainty regarding the fleet renewal of some airlines, due to delays in aircraft delivery (e.g. B737 MAX), which could have some impact on the offering of seats.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• Competition with other modes of transport, with the new AVE rail tracks coming into service in Spain, has been affecting domestic routes.
• Likewise, the deregulation of the rail sector with the entry into service of new low-cost operators (e.g. Ouigo and Iryo) has brought a price war between new companies, affecting air traffic.
• In addition, potential structural habit changes such as technological advancement, video conferencing, or teleworking are impacting business travel.
• The emergence of new pandemics could negatively impact air traffic.
• A number of environmental measures that could impact aviation are currently underway, including the EU 'Fit for 55' Initiative that includes, among other things: a review of the EU's emission allowances trading regime; a review of the Energy Taxation Directive; or the ReFuelEU Aviation initiative (Note 5.3)
• Other measures being put forward in several European countries, including in Spain, would be the application of new taxes on airline tickets, or the possible restriction of domestic flights on routes served by high-speed train.

These external factors can have a negative impact on the evolution of tourist flows and the financial situation of airlines, causing a drop in traffic and the loss of competitive position that could also be affected by the emergence of new means of transport, alternative airports and changes in the strategy of existing ones.

Up to the date of preparation of these Annual Accounts, the most relevant impact for the Company arising from the current macroeconomic and geopolitical crisis ocurred in 2022 consequence of the high increase in the cost of electricity. This cost has been considerably reduced during 2023. As a result of the upward trend in prices, during 2022, the national airport network recorded an expense for this item in the amount of €266 million compared to €146 million that has been recorded in 2023, representing a decrease of €80 million. In the fiscal year 2019, the cost of energy was €86 million, so in 2023 compared to 2019, the increase in said cost has been €60 million (Note 23.4).

Although at the time of filing these Annual Accounts there have been no material consequences for Aena, the Directors and Management of the Company continue to analyse and monitor the potential impacts that the current situation of uncertainty may have in the future.

5.1.2 Regulatory risks

AENA S.M.E., S.A. operates in a regulated sector and changes or future developments in the applicable regulations may have a negative impact on the revenue, operating profit/(loss) and financial position of AENA. In particular, these regulations may affect:

• Management of the airport network with public service criteria.
• The airport charges regime.
• Airport security measures.
• Operational safety.
• Allocation of slots.

The legal framework applicable to Aena's airport network of general interest is provided for in many areas by Act 18/2014, of 15 October, on the approval of urgent measures for growth, competitiveness and efficiency (hereinafter, Act 18/2014). Act 18/2014 establishes that the Airport Regulation Document (hereinafter, DORA) is the instrument that must determine the five-year regulation conditions for the entire airport network of Aena, which is regarded as a service of general economic interest.

The DORA for the period 2017–21 was the first five-year regulation document applicable since the entry into force of Act 18/2014. This DORA establishes obligations regarding the service quality standards and commissioning of strategic investments. Non-compliance with this document may lead to penalties to the Annual Maximum Revenue per Passenger.

Act 18/2014 introduced the mechanism governing the determination of airport charges for the first Airport Regulation Document ('DORA').

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(Amounts in thousands of euros unless otherwise stated)

On 27 January 2017, the Council of Ministers approved the DORA for the 2017–21 period (hereinafter, DORA I), in which they established the minimum service conditions that will be in force in airports in the AENA network for said period, providing a foreseeable regulatory framework in the medium-term that has enabled improved levels of efficiency and competitiveness in terms of airport operations.

The Airport Regulation Document for the period 2022–26 (hereinafter, DORA II) was approved by an Agreement of the Council of Ministers dated 28 September 2021, following a prior report of the Delegated Commission of the Government for Economic Affairs (CDGAE [Comisión Delegada del Gobierno para Asuntos Económicos]), as established in Article 26.1 of Act 18/2014.

DORA II offers the stability necessary to develop an efficient, competitive and sustainable long-term service. It sets the parameters for the recovery of the air transportation sector by allowing the airport network to have the resources necessary to provide a safe, quality and sustainable service. However, the conditions established in DORA 2022–26 entail a series of obligations regarding the quality standards of the service and commissioning of strategic investments, whose non-compliance may entail penalties on the charges that, as occurred with DORA I, would in any case affect future fiscal years. The Company does not expect any non-compliance with the commitments undertaken within the framework of the DORA.

The conditions established in this DORA II, on the one hand, require that the airport operator offer, among other things, quality service with sufficient capacity to meet demand during the five-year regulatory period and, on the other, offer them the predictability needed to develop an efficient, competitive and sustainable service in the long-term.

DORA II establishes, among other measures, a freezing of Aena's airport charges until the year 2025. This means charges will be among the most competitive and will contribute to attracting new companies and to the recovery of the air transport sector.

Likewise, the document's main objectives include air traffic recovery, service excellence and commitment to safety, environmental sustainability, fostering innovation and digitization, and efficient management.

The main aspects included in DORA 2022-26, among other things, are the following:

• In order to determine the investment and the applicable charges, it is estimated that 1,234 million passengers will be reached in the five-year period. The traffic scenario foresees a recovery of the 2019 air traffic levels at the end of 2025, mainly due to the increase in domestic traffic and in line with the base scenario forecasts published by Eurocontrol.
• With regard to commercial discounts, DORA 2022–26 makes it easier to establish commercial incentives by eliminating the requirement to obtain a report from the Spanish Civil Aviation Authority (DGAC [Dirección General de Aviación Civil]) with a reasoned proposal that includes the users' opinion. Given the special circumstances associated with the COVID-19 pandemic, it introduces extraordinary commercial incentive schemes, which allow for the recovery of traffic and reduce connectivity restrictions. Commercial incentives aimed at improving environmental sustainability at the network's airports may also be established.
• The total recognised investment for the DORA period amounts to €2,250 million, fostering and accelerating investments related to digitisation, innovation and sustainability. The average scheduled annual investment level will be €450 million each year. In the event that AENA makes a lower investment volume with respect to the total investment recognised for this period, the initial Regulated Asset Base for the next period will be adjusted.
• Determination of the IMAAJ: when determining the IMAAJ and its limits for each year, consideration must be given to the adjustments applicable in previous fiscal years to ensure they do not prevent, in its case, the possibility of achieving the IMAP set forth in DORA 2022–26, in accordance with the framework established in Act 18/2014.
• Recovery of COVID-19 expenses: when determining the annual IMAAJ, pursuant to the provisions of the First Additional Provision of Act 2/2021, of 29 March, on urgent prevention, containment and coordination measures to address the health crisis caused by COVID-19, the CNMC must conduct an analysis and supervision of the costs incurred for this item in previous fiscal years and determine, if no agreement is reached between Aena and the representative user associations, the method used for the recovery thereof within the framework of the supervisory function of the annual consultation procedure and the adjustment, to the IMAAJ, of Aena's airport charges referred to in section 2 of Article 10 of the Act that creates it.
• Environmental standards: sustainability is a core strategy for the company and has now been reflected in DORA 2022–26 through environmental standards. In this regard, this document sets the conditions for the

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

sustainable development of the Aena airport network by establishing environmental standards that are articulated through 6 indicators: absolute CO2 emissions; energy efficiency; carbon neutrality; water consumed; noise levels and non-hazardous waste valorisation.

In addition, Aena's activity is regulated by both domestic and international regulations relating to personal, property and environmental operational safety, which could limit the activities or growth of Aena's airports and/or require significant outlays. Aena is a state trading company and, as such, its management capacity may be subject to regulatory conditions.

The main shareholder of AENA is the Spanish State, which maintains control of AENA's operations, and whose interests may differ from those of other shareholders.

5.1.3 Operational risks

In addition to the operational risks mentioned above and the financial and climate change risks detailed in notes 5.2 and 5.3, respectively, the main operating risks affecting the Company's business are set out below:

• Aena is exposed to risks related to airport operations (operational and physical security). The negative impacts on the safety of persons or property, due to incidents, accidents and illegal interference activities (including terrorists or others of a similar nature) derived from operations could expose the Company to potential responsibilities that may involve indemnities and compensations, as well as loss of reputation or interruption of operations.
• Aena is dependent on information and communication technology, and systems and infrastructures face certain risks including risks related to cybersecurity, that are the result of both internal and external threats and the exploitation of vulnerabilities, as a result of cyberattacks and other threats to the confidentiality, integrity, availability, traceability and authenticity of the information stored in the systems, as well as their capacity.
• Aena is a listed state trading company and, as such, its management capacity in certain areas (international expansion, hiring of personnel and suppliers, among others) is affected by the application of public and private regulations.
• Risk derived from the increase in the need for planned investments as well as breaches to the deadline, budget or quality of the contracted actions, that affect the operation or profitability of airports, or that entail a breach of the obligations of the regulatory framework, as a result of actions by third parties (awardees or public bodies) or derived from the evolution of other external conditions that could affect the execution of the actions (anticipation of investment needs with respect to what was planned at some airports in view of the recovery in demand, prices of construction materials, environmental and operational regulation, etc.).
• Aena depends on the services provided by third parties at its airports (handling companies, security, air traffic controllers, etc.). Aspects such as labour disputes and non-compliance with service levels could have an impact on operations, in a scenario of widespread cost increases and difficulty in attracting qualified staff.
• Aena's international activity is subject to risks associated with the materialization of potential impacts that have not been foreseen when planning and analysing acquisitions, as well as those derived from the subsequent development of operations in third-party countries (through subsidiaries and affiliates) and the fact that profitability prospects may not be as expected due to the worsening economic situation, adverse legal and regulatory changes and/or loss of concession contracts, among others. In particular, the investment made in Brazil requires continuous analysis of the recovery and the evolution of its main indicators, which may be affected by the market/country in which it operates.
• Aena is exposed to risks specifically related to the development of commercial activity, with revenues from commercial activity being linked to both passenger volumes and their spending power. In a context of traffic recovery, the evolution of commercial activity may be affected by changes in trends in the sector and in the passenger mix, as well as by regulatory aspects that may affect certain duty-free products. The evolution of macroeconomic factors and changing trends in consumption also affect the real estate business, posing additional challenges linked to the development strategy of airport cities.
• Risk of losing competitiveness by not developing innovation and technological development policies that are appropriate to the needs of the business, and which are aimed at improving passenger experience, strengthening airport security and improving operational efficiency. This risk includes potential impacts

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

arising from regulatory or other restrictions, which may cause delays or limitations in the execution of pilot testing of innovation projects or in the implementation and deployment of innovations.

• Impacts on the quality of service perceived by passengers and in relation to other airports, which affect the reputation of Aena or could lead to non-compliance.
• There is a risk that Aena may suffer from sanctions, financial losses or damage to its reputation, or be held liable due to non-compliance or defective compliance with legal regulations, rules of conduct, violations of human rights and other standards enforceable in its operation.
• Changes in tax legislation could result in additional taxes or other forms of harm to the tax position of Aena.
• Aena is and will in the future continue to be exposed to the risk of loss from legal or administrative proceedings in which it is involved.
• Insurance coverage may be insufficient.

The Company's management bodies have implemented mechanisms aimed at identifying, quantifying and covering situations of risk. Regardless of the above, situations that can entail a major risk are closely tracked, as are the measures taken in this regard. Notes 21 and 28 of this annual report detail the provisions and contingencies derived from the above risks.

5.2 Description of the main financial risks

The Company's activities are exposed to various financial risks: market risk (including exchange rate risk and fair value risk due to the interest rate), credit risk and liquidity risk. The Company's global risk management programme focuses on the uncertainty of financial markets and tries to minimise the potential adverse effects on its financial profitability. The Company uses derivative financial instruments to hedge certain risk exposures.

The Board of Directors issues policies to manage global risk, as well as specific areas, such as exchange rate risk, interest rate risk, liquidity risk and investment of surplus liquidity.

There is a financial debt acknowledgement contract between Aena S.M.E., S.A. and its parent company ENAIRE, which originated in the non-monetary contribution that led to the creation of Aena Aeropuertos, S.A., through which 94.9% of the parent company's bank debt was taken on ('Mirror loan with ENAIRE'). On 29 July 2014, this contract was novated (See Note 15.1).

The main financial risks are described below.

5.2.1 Market risk

Exchange rate risk

The Company does not carry out significant commercial transactions in a currency other than the euro.

Interest rate risk on cash flows and fair value

The Company's interest rate risk arises from the financial debt. Loans issued at variable rates expose the Company to interest rate risk from cash flows. Fixed interest rate loans expose the Company to fair value interest rate risks.

The Company's goal when managing interest rates is to optimise the finance expenses within the established risk limits and the risk variables in this case are the three and six-month Euribor, the main reference for long-term debt.

In addition, the value of the finance expenses risk over the time horizon of the forecasts is calculated and rate trend scenarios are established for the considered period.

The composition of the Company's debt by rates, as of 31 December 2023 is at 75% fixed-rate debt, compared to 25% variable-rate debt (as of 31 December 2022: 80% fixed and 20% variable), if the effect derived from the contracted interest rate swaps is considered.

Aena S.M.E., S.A. manages the interest rate risk in cash flows through variable to fixed interest rate hedge swaps. On 10 June 2015, the Company engaged in a variable to fixed interest rate cash flow hedging transaction, for a notional

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

amount of €4,196 million to cover part of its exposure to the Mirror Loan with ENAIRE, of which hedges for a notional amount of €1,442 million maturing on 15 December 2026 are outstanding. As of 31 December 2023, the total amount of the asset for these interest rate swaps amounts to €51,140 thousand (2022: €99,184 thousand) (see Note 15.6).

As of 31 December 2023, if the interest rate of variable-rate loans of Aena S.M.E., S.A. had increased or decreased by 20 basis points, keeping the remaining variables constant, the pre-tax profit for the year would have been €3,759 thousand higher and €3,759 thousand lower respectively (in 2022: €2,821 thousand higher and €2,821 thousand lower respectively).

As of 31 December 2023, if the interest rate had increased or decreased by 20 basis points, with the rest of the variables remaining constant, the asset for said derivatives, which at the end of the 2023 fiscal year amounts to €51,140 thousand (2022: €99,184 thousand) would have been €5,987 thousand higher and €6,030 thousand lower, respectively (31 December 2022: liability for €10,023 thousand lower and €10,023 thousand higher, respectively).

Additionally, at the end of 2022 the Company contracted swaps on Spanish electricity traded on the Iberian Electricity Market (MIBEL) in order to hedge the inflationary pressures that had been occurring in the price of electricity (Note 15.6) during said year and which were settled in 2023. As of 31 December 2022, if the price of electricity had increased or decreased by 100 basis points, with the rest of the variables remaining constant, the liability recorded at the close of the 2022 fiscal year amounting to €1,162 thousand for said derivatives would have been €3,340 thousand higher and €3,340 thousand lower respectively—that is, an asset for €2,178 thousand. As of 31 December 2023, there are no swaps on the contracted electricity price.

5.2.2 Credit risk

The Company's credit risk originates from cash and cash equivalents, derivative financial instruments and bank and other deposits, as well as exposure to trade receivables and agreed transactions.

Credit risk relating to trade accounts is reduced, given that main clients are airlines, and collateral is usually available or, if not, collected in advance. As for retail customers who have leased premises at the various airports, their risk is managed by obtaining sureties and guarantees. As of 31 December 2023, the Company has, in addition to the deposits and other cash bonds listed in the Balance Sheet, sureties and other guarantees related to the normal course of the aeronautical business amounting to €283,465 thousand (2022: €279,659 thousand) and the normal course of the commercial business amounting to €766,851 thousand (2022: €489,321 thousand).

On 5 March 2011, Act 1/2011, of 4 March, which amends Act 21/2003, of 7 July, on Air Security, was published in the Spanish Official State Gazette. This act allowed Aena S.M.E., S.A. or its subsidiaries to use debt collection proceedings in order to manage, liquidate and collect payment of all outstanding airport charges, this being managed by the collection bodies of the State Tax Administration Agency.

The credit limits have not been exceeded during the fiscal year and the management does not expect any losses that were not provisioned for, as a result of default by these counterparties.

5.2.3 Liquidity risk

The main risk variables are the limitations in the financial markets, the increase in planned investment and the reduction in cash flow generation.

The credit risk policy described in the previous section results in short average collection periods.

Consequently, as of 31 December 2023 the Company reports a positive working capital of €656,052 thousand (positive in 2022: €753,236 thousand), has EBITDA—calculated as the sum of operating profit and the amortisation/depreciation of fixed assets—of €2,676,426 thousand (2022: €1,892,306 thousand), and there is not considered to be a risk to meet its short-term commitments given the positive operating cash flows amounting to €2,089,390 thousand in 2023 (2022: €1,696,252 thousand, as reflected in the accompanying Cash Flow Statement and which the Company expects to remain positive in the short term. The Company monitors cash flow generation to ensure that it is capable of meeting its financial commitments.

During 2023, operating cash flow increased significantly from 2022 as air traffic increased. In addition to the cash flows generated by its activity, the Company has sufficient liquidity and credit facilities available that will allow it to meet the investment payment commitments for the coming years (Note 7.8) and the loan maturities (Note 15). If the evolution of

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

traffic worsens, the Company could access additional external financing, halt its investment plan and implement cost reduction measures.

On 13 October 2023, Aena made its first bond issuance in the fixed income market for an amount of €500 million, maturing in October 2030. The transaction closed with a 4.25% coupon. The credit rating agencies Fitch and Moody's have assigned the issue an 'A-' and 'A3' rating respectively, corresponding to the Long-Term Issuer Default Rating granted to AENA S.M.E., S.A. (Note 15).

The Company also has a cash balance as at 31 December 2023 of €2,222 million (31 December 2022: €1,435 million). In addition, the Company has €555 million available (undrawn) financing relating to loans (at close of fiscal year 2022: €655 million) and €2,000 million available in a syndicated and sustainable credit facility (31 December 2022: €1,450 million available in two syndicated credit facilities) (Note 15).

This availability of cash and credit facilities of the Company as of 31 December 2023 totals €4,777 million. In addition, there is also the possibility of issuing promissory notes through the Euro Commercial Paper (ECP) programme of up to €900 million, of which at the end of the 2023 fiscal year €900 million is available (31 December 2022: €900 million). There is also the possibility of issuing bonds through the Euro Medium Term Note (EMTN) programme of up to €3,000 million, of which at the end of the 2023 fiscal year €2,500 million is available (31 December 2022: €0 million) (Note 15).

5.3 Description of the main risks derived from climate change

The Company is exposed to the effects of climate change and environmental sustainability is a key strategy for Aena. The associated risks—as differentiated according to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) regarding physical or transitional risks—can lead to a number of economic, operational and reputational impacts:

• • Physical risks, arising from extreme rainfall and temperatures, heat waves, water stress or droughts, rising sea levels and the risk of river or coastal flooding, among others. These risks may have a direct impact on airport infrastructures and their operation, the management of transport services in the medium to long term and/or, consequently, may require adaptation actions to be undertaken at airports in the medium to long term, such as an increase in air conditioning or energy expenses, impact on take-off performance, damage to infrastructures, reduction in water availability, among others.
• • Transitional risks, including:
  • Technology risks, mainly as a consequence of the need to incorporate new technologies and sustainable fuels at airports, especially in relation to the mandatory use of Sustainable Aviation Fuel (SAF) by airlines.
  • Market risks, caused by, among other things, the effects of a possible economic recession arising from the energy crisis or the loss of attractiveness to visitors.
  • Reputational risks, as a result of changes in consumer preferences and behaviour due to stigmatisation of the sector.
  • Regulatory and legal risks, arising mainly from the provisions of the European Union's regulatory package 'Fit for 55' that seeks a 55% reduction in greenhouse gases by 2030, through initiatives such as:
    • The potential implications of the provisions of the European Union's regulatory package 'Fit for 55' that seeks a 55% reduction in greenhouse gases by 2030, such as:
      • Extension of the coverage and duration of the European Union Emissions Trading System (EU ETS), tightening the carbon market and phasing out free allowances allocated to aviation operators until free allowances are completely eliminated by 2026.
      • A possible change in the taxation of fuels by introducing a tax on energy derived from kerosene used in aviation (amendment of the Energy Taxation Directive, ETD), with the possible removal of the exemptions in air transportation (tax duties on kerosene).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• ReFuelEU Aviation regulation for sustainable aviation fuels, which forces airlines to consume an increasingly higher percentage of sustainable aviation fuels (SAF).
• Finally, in addition to the Fit for 55 regulatory package, there is a proposal to restrict domestic flights on routes with a high-speed rail alternative, which could limit connectivity and the development of hubs at major airports.

The impact of these risks, mainly regulatory risks, on air traffic will depend on the conditions under which the new measures are applied. Although to date not all the regulations included in the legislative package at environmental level have been approved, so there is not enough detail on the scope and time frame for their implementation. For this reason, and in order to limit the uncertainty associated with the application of these measures, as part of the projections drawn up by the Company, forecasting scenarios have been considered with ranges based on confidence levels provided by the econometric models, which take these factors into account.

When preparing the traffic forecasts taken into account in the analysis of possible impairment indicators (see Note 6.5), the Company, in addition to taking into account the expected macroeconomic environment, has analysed the main risks, uncertainties and factors affecting air traffic, highlighting the risks related to climate change. Additionally, it has taken into account the projections made by the main international bodies of the aviation sector, thus, IATA forecasts an annual global growth of the number of air passengers of around 3.4% over the next 20 years.

However, these possible regulations and laws are long-term risks that have not affected these annual accounts because legislation only gives rise to obligations in the financial statements once they have been enacted or substantially enacted, which is not the case at the date of formulating these annual accounts.

In preparing the Company's financial information, the Management has taken into account the impact of climate change in the recognition and measurement of assets and liabilities, and the level of compliance with the objectives of the Climate Action Plan of Aena S.M.E., S.A. These considerations have not had a significant impact on the judgements and estimates applied in preparing the financial information for the fiscal year.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

6. Intangible fixed assets

The movements in the accounts included in intangible fixed assets for fiscal years 2023 and 2022 have been as follows:

	2023
	Notes	Social	Intangible assets, concession agreement	Computer software	Other intangible fixed assets	Intangible fixed assets in progress	Total
Cost: Opening balance Additions		818 -	15,709 88	311,639 46,738	12,716 -	74,102 22,377	414,984 69,203
Derecognitions (*)		-	-	(2,661)	(483)	(890)	(4,034)
Transfers	7 8	-	6	12,882	(46)	(16,354)	(3,512)
Closing balance		818	15,803	368,598	12,187	79,235	476,641
Amortisation:
Opening balance Allocation		(818) -	(8,192) (734)	(235,895) (37,393)	(7,341) (916)	- -	(252,246) (39,043)
Derecognitions (*)		-	-	2,661	483	-	3,144
Transfers	7 8	-	-	10	47	-	57
Closing balance		(818)	(8,926)	(270,617)	(7,727)	-	(288,088)
Net:		-	6,877	97,981	4,460	79,235	188,553

(*) Derecognitions corresponding to assets that entered at net book value in the non-monetary contribution are made at net book value.

	2022
	Notes	Social		Intangible assets, concession agreement	Computer software	Other intangible fixed assets	Intangible fixed assets in progress	Total
Cost:
Opening balance			818	15,668	268,617	10,790	77,715	373,608
Additions			-	173	25,015	2	23,260	48,450
Derecognitions (*)			-	(143)	(886)	(770)	(1,108)	(2,907)
Transfers	7	8	-	11	18,893	2,694	(25,765)	(4,167)
Closing balance			818	15,709	311,639	12,716	74,102	414,984
Amortisation:
Opening balance			(818)	(7,556)	(207,278)	(7,325)	-	(222,977)
Allocation			-	(717)	(29,498)	(786)	-	(31,001)
Derecognitions (*)			-	81	881	770	-	1,732
Closing balance			(818)	(8,192)	(235,895)	(7,341)	-	(252,246)
Net:			-	7,517	75,744	5,375	74,102	162,738

(*) Derecognitions corresponding to assets that entered at net book value in the non-monetary contribution are made at net book value.

The 'Other intangible fixed assets' heading mainly includes the Master Plans for airports.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The main additions for the fiscal year 2023 under the heading 'Computer software' and 'Intangible fixed assets under construction' correspond to acquisitions, improvements and developments of new technologies for computer applications, relating to airports and central services. This highlights the investment made in the preparation of an ERP system for the Aena Group, the updating of Oracle and Microsoft, the re-engineering and automation of processes, cybersecurity and the strategy and implementation of digital transformation in the guidance and calculation of routes for passengers and PRMs. Financial leasing of licenses for on-cloud architecture solutions is also included (see Note 9.2).

The main additions in fiscal years 2022 in the 'Computer software' and 'Intangible fixed assets under construction' headings corresponded to the acquisitions, as well as the improvements and developments, of new technologies for computer applications, including those for Windows and Linux hyper-converged equipment, the re-engineering and automation of processes, the new innovation portal and the integration of loyalty clubs.

The total costs activated on 31 December 2023 and 2022 in the different kinds of intangible fixed assets, include assets under construction in accordance with the following breakdown:

	2023	2022
Computer software	42,419	38,450
Other intangible fixed assets	36,816	35,652
Total	79,235	74,102

6.1 Intangible fixed assets acquired from related companies

During fiscal years 2023 and 2022, the Company has acquired the following items of their fixed assets from related companies Ingeniería y Economía del Transporte, S.A. (INECO), Ingeniería de Sistemas para la Defensa de España (ISDEFE) and Grupo Indra (in thousands of euros):

	31/12/2023		31/12/2022
	Cost	Accumulated amortisation	Cost	Accumulated amortisation
Computer software	3,853	( 523)	498	(66)
Other intangible fixed assets	-	-	5	-
Intangible fixed assets in progress	6,526	-	1,865	-
Total	10,379	(523)	2,368	(66)

6.2 Finance expenses

During the fiscal year 2023, a total of €52 thousand of finance expenses associated with intangible fixed assets (2022: €32 thousand) have been activated, which are recorded under the finance income heading 'Activation of finance expenses' (see Note 23.6).

6.3 Fully amortised assets

As of 31 December 2023 and 2022, there are fully amortised intangible fixed assets in use according to the following breakdown:

	2023	2022
Concessions	132	79
Development	794	794
Computer software	310,018	290,596
Other intangible fixed assets	86,137	86,204
Total	397,081	377,673

Because the non-monetary contribution mentioned in Note 1 was made at net book value, in 2023 and 2022, the original cost of these fixed assets is higher than the cost of the intangible fixed assets shown in the movement.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

6.4 Concession agreement, regulated assets

• Ceuta Heliport: the Company operates the civilian-use Ceuta heliport with all its services under a service concession contract with the Port Authority of Ceuta. This concession started on 28 March 2003 and lasts for 30 years. The Company pays an annual fee of €39,000 for the occupancy of the public port. Additionally, in accordance with article 69 bis of Act 27/92, the Company pays a fee amounting to €0.823386 per passenger to the Port Authority, depending on volume of passengers.
• Algeciras Heliport: the Company has an administrative concession contract with the Port of Algeciras Bay for the use of the facilities that will be used for installation and operation activities of the publicly owned heliport at the Port of Algeciras. This concession started on 3 February 2009 and lasts for 25 years. The contract establishes an occupancy rate for the exclusive use of the public port area of €82,000 per year and a rate of special use of the public space of €1 per passenger arriving at or disembarking from the facility.

6.5 Impairment of intangible assets

During the fiscal year 2023, the traffic of the national airport network has reached 103.0 % of the traffic of 2019 and the economic-financial results show a substantial improvement, having recorded a post-tax profit for the fiscal year ended 31 December 2023 of €1,436 million, 66% higher than that recorded at the close of the previous fiscal year for an amount of €865 million, meaning that the negative effects of the pandemic have been substantially overcome. This is also reflected in the business projections in the Company's strategic plan published on 16 November 2022, which sets out the company's vision for the future and establishes a series of objectives associated, among others, with aeronautical, commercial and international activity, the development of airport cities, and sustainability.

During the fiscal year 2023, traffic from the national airport network has exceeded the volume of traffic recorded in 2019 by 2.98%, a fiscal year that is taken as a reference for being figures prior to the pandemic

On the other hand, Aena's market capitalisation value has increased during the fiscal year 2023, Aena's share price at the close of 2023 was €164.10/share compared to €117.30/share at the close of 2022.

Given the circumstances described, the Company considers that there are no indications of impairment for the CGU formed by the national airport network, and therefore, it has not considered it necessary to carry out a complete impairment analysis as of 31 December 2023

The reasonableness in the analysis of the impairment indicators and the conclusions reached have been reviewed favourably by independent professional experts of the Deloitte firm at the close of the fiscal year ended 31 December 2023 and 31 December 2022, without in any case there being any significant discrepancies between the assumptions considered by the Company and the assumptions or estimates made by the independent experts.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

7. Property, plant and equipment

The movements in this heading during fiscal years 2023 and 2022 have been as follows:

	Notes				2023
			Land and buildings	Technical facilities and machinery	Other facilities, tools and furnishings	Other fixed assets	Fixed assets under construction	Total
Cost:
Opening balance			13,999,730	982,577	3,913,165	14,786	707,438	19,617,696
Additions			68,060	27,365	69,440	3,912	410,416	579,193
Derecognitions (*)			(16,229)	(48,063)	(86,948)	(922)	(5,592)	(157,754)
Transfers	6	8	87,109	24,744	217,074	1,022	(332,470)	(2,521)
Closing balance			14,138,670	986,623	4,112,731	18,798	779,792	20,036,614
Amortisation
Opening balance			(4,330,672)	(603,062)	(2,761,047)	(9,896)	-	(7,704,677)
Allocation			(396,841)	(59,482)	(228,871)	(1,776)	-	(686,970)
Derecognitions (*)			8,886	47,430	85,243	921	-	142,480
Transfers	6	8	750	(254)	(154)	(11)	-	331
Closing balance			(4,717,877)	(615,368)	(2,904,829)	(10,762)	-	(8,248,836)
Impairment:
Opening balance			-	-	-	-	-	-
Application of impairment			-	-	-	-	-	-
Closing balance			-	-	-	-	-	-
Net book value			9,420,793	371,255	1,207,902	8,036	779,792	11,787,778

(*) Derecognitions corresponding to assets that entered at net book value in the non-monetary contribution are made at net book value.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

		Notes		2022
			Land and buildings	Technical facilities and machinery	Other facilities, tools and furnishings	Other fixed assets	Fixed assets under construction	Total
Cost:
Opening balance			13,835,932	951,406	3,762,310	12,453	805,727	19,367,828
Additions			50,366	29,521	50,551	2,718	342,221	475,377
Derecognitions (*)			(56,560)	(42,211)	(122,078)	(357)	(5,368)	(226,574)
Transfers	6	8	169,992	43,861	222,382	(28)	(435,142)	1,065
Closing balance			13,999,730	982,577	3,913,165	14,786	707,438	19,617,696
Amortisation
Opening balance			(3,952,485)	(583,832)	(2,650,449)	(9,027)	-	(7,195,793)
Allocation			(394,384)	(59,581)	(227,011)	(1,226)	-	(682,202)
Derecognitions (*)			14,966	40,326	116,690	356	-	172,338
Transfers	6	8	1,231	25	(277)	1	-	980
Closing balance			(4,330,672)	(603,062)	(2,761,047)	(9,896)	-	(7,704,677)
Impairment:
Opening balance			(109)	(37)	(10)	-	-	(156)
Application of impairment			109	37	10	-	-	156
Closing balance			-	-	-	-	-	-
Net book value			9,669,058	379,515	1,152,118	4,890	707,438	11,913,019

(*) Derecognitions corresponding to assets that entered at net book value in the non-monetary contribution are made at net book value.

The Company owns properties whose net value, separate from land and buildings, at the close of fiscal years 2023 and 2022, is as follows:

	2023	2022
Land	3,540,834	3,533,225
Buildings	5,879,959	6,135,833
Total	9,420,793	9,669,058

7.1 Property, plant and equipment acquired from related companies

During the fiscal years 2023 and 2022, the Company has acquired the following items of their property, plant and equipment from group companies Aena Desarrollo Internacional S.M.E., S.A. (ADI) and Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia (SCAIRM), from ultimate parent company ENAIRE and from related companies Ingeniería y Economía del Transporte, S.A. (INECO) and Ingeniería de Sistemas para la Defensa de España (ISDEFE) and Grupo Indra (thousands of euros):

	31/12/2023		31/12/2022
	Book value (gross)	Accumulated amortisation	Book value (gross)	Accumulated amortisation
Land and buildings	1,159	(19)	1,988	(184)
Technical facilities and machinery	25	(1)	336	(9)
Other facilities, tools and furnishings	163	(8)	93	(4)
Other fixed assets	53	(5)	185	(49)
Fixed assets under construction	1,666	-	2,909	-
Total	3,066	(33)	5,511	(246)

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

7.2 Finance and other expenses

During the fiscal year 2023, a total of €10,365 thousand of finance expenses accrued in the fiscal year have been activated, corresponding to the financing of fixed assets under construction (2022: €2,021 thousand), which are recorded in the finance income heading 'Activation of finance expenses' (Note 23.6). In addition, €7,272 thousand of internal work carried out by the Company for its property, plant and equipment have been activated, which are recorded in the heading 'Works carried out by the company for its assets' of the attached profit and loss account (2022: €6,493 thousand).

7.3 Additions of property, plant and equipment

The main additions recognised in the fiscal years 2023 and 2022 are described below:

Land and buildings

During the fiscal year of 2023, the main additions have been the following: the soundproofing of buildings actions carried out within the framework of the Sound Insulation Plan of A Coruña Airport, Palma de Mallorca Airport, Valencia Airport, Tenerife Norte-Ciudad de La Laguna Airport, Tenerife Sur Airport, Adolfo Suárez Madrid-Barajas Airport, César Manrique-Lanzarote Airport and Bilbao Airport; the expansion of the Vigo Airport strip; the renovation of the false ceilings of Terminal T2 at the Barcelona-El Prat Josep Tarradellas Airport; the functional improvements made to the terminal building at the Tenerife Sur Airport; the Reus Airport's new perimeter road; and the surface treatment of the RESA 22 runway and levelling at the Burgos Airport.

The most important actions put into service have been the following: the adaptation of the Checked Baggage Screening System (SIEB) to the new standard EDS 3 at Adolfo Suárez Madrid-Barajas Airport, Málaga-Costa del Sol Airport, Gran Canaria Airport, Barcelona-El Prat Josep Tarradellas Airport, Fuerteventura Airport and Tenerife Sur Airport; the conditioning of the electrical system at the Palma de Mallorca airport; the screeding of the runways and the adaptation of the taxiways at A Coruña Airport and Tenerife Norte-Ciudad de La Laguna Airport; the regeneration of runway 13-31 at the Málaga-Costa del Sol Airport; the conditioning of the power plant and functional improvements in the terminal building at the Seville Airport; and the adaptation of the installation on the strip of runway 07L-25R and the regeneration of runway 06L-24R at the Barcelona-El Prat Josep Tarradellas Airport.

During the fiscal year 2022, the main additions were the planned actions for soundproofing buildings within the framework of the Sound Insulation Plan for A Coruña Airport, Gran Canaria Airport and Palma de Mallorca Airport; the works related to the extension and adaptation of the terminal building to the functional design of Ibiza Airport and the remodelling of toilets at Girona-Costa Brava Airport; the construction of a terrace and reconstruction of warehouses at the Barcelona-El Prat Josep Tarradellas Airport; the lengthening works on taxiways A27, A28, A29, A30, A31, KB1, D1, D2, D3, D4, D5, KB2, KC1, KC2, KC3, N1, N2, N3, N4, N5, N6, BN3, G11 and GATE 11, new flooring in building T-3 north dock and remodelling of the Premium lounge at the Adolfo Suárez Madrid-Barajas Airport; and the construction of the new cargo terminal at Zaragoza Airport.

The most important actions put into service were the functional improvements in the Terminal Building according to functional design at Tenerife Sur Airport and Sevilla Airport; the new bus area in the T-4 terminal building at Adolfo Suárez Madrid-Barajas Airport; the construction of the new technical block at Bilbao Airport; the adaptation of the Checked Baggage Screening System (SIEB [Sistema de Inspección de Equipaje en Bodega]) to the new standard EDS at Menorca Airport; the adaptation of the movement area at Asturias Airport; the remodelling of the Picasso building at Málaga-Costa del Sol Airport; the regeneration of the runway surface at Girona-Costa Brava Airport; and the remodelling of the commercial gallery and boarding lounge at Gran Canaria Airport.

Technical facilities, machinery, furniture and other fixed assets

In the fiscal year 2023, the most important additions were:

• Acquisitions of Noise Monitoring Terminals (NMT) at Adolfo Suárez Madrid-Barajas Airport and César Manrique-Lanzarote Airport; as well as mobile telephone terminals at Central Services.
• EDS Standard 3 equipment for the baggage handling and inspection system at Adolfo Suárez Madrid-Barajas Airport, Alicante-Elche Airport, Gran Canaria Airport and Fuerteventura Airport.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• Milling machine, 4x4 snow plough vehicle with snow-cutting blades and runway cleaning equipment, at Adolfo Suárez Madrid-Barajas Airport.
• Beacon, snow plough with snow-cutting blades and emergency generator set, at the Barcelona-El Prat Josep Tarradellas Airport.
• Boarding footbridges and aircraft assistance equipment at Palma de Mallorca Airport.

During the fiscal year 2022, the most important additions were:

• Acquisitions of 6x6 extinguishing vehicles at several airports in the network, for example, at Almería Airport, Asturias Airport, A Coruña Airport, Girona-Costa Brava Airport, F.G.L. Granada-Jaén Airport, César Manrique-Lanzarote Airport and Santiago-Rosalía de Castro Airport.
• Beacons for areas 14R-32L, 18L-36R, terminal building T-4 and T-4 satellite, at Adolfo Suárez Madrid-Barajas Airport.
• Boarding pass printer for Adolfo Suárez Madrid-Barajas Airport and Palma de Mallorca Airport.
• Finger T-10, T-11 and T-12 at Adolfo Suárez Madrid-Barajas Airport.

Fixed assets under construction

During the fiscal year 2023, the main actions that are ongoing consist of the following: the adaptation of the facilities of several airports in the network to incorporate explosive detection equipment (EDS) adapted to Standard 3 relating to the baggage handling system, in order to adapt to regulatory changes established by the EU on the subject; at Palma de Mallorca Airport, the refurbishment of the processing building, the A and D modules and the commercial zones in the terminal area, the regeneration of the North and South taxiways and surrounding roadways, the expansion of the parking lot of the service building and the new North SEI building; at Adolfo Suárez Madrid-Barajas Airport, work continues on the remote apron of the T4S satellite building and the new power plant; at Tenerife Sur Airport, the extension of the employee parking; at Alicante-Elche Airport, the installation of new pergolas, the waterproofing of the parking lot and the regeneration of the pavement of the taxiways; at Girona-Costa Brava Airport, the suitability of the airfield strips and RESAs; at Ibiza Airport, the expansion of the P1 car park and the construction of the express car park; and at several airports the plan for the implementation of charging points for electric vehicles.

During the fiscal year 2022, with regard to the actions in progress, the following stand out: the lengthening of the runway and adaptation of the taxiways at A Coruña Airport; the adaptation of the baggage handling systems with the new explosives detection equipment (EDS) adapted to Standard 3 at several airports in the network; at Adolfo Suárez Madrid-Barajas Airport, work continues on the remote apron at T4S; remodelling of the terminal area, the processor building and Module A at Palma de Mallorca Airport; and lengthening of the taxiways at Tenerife Norte-Ciudad de La Laguna Airport.

7.4 Derecognitions and results from disposals of property, plant and

equipment

Property, plant and equipment assets with a net value of €15,274 thousand were derecognised during fiscal year 2023 (during fiscal year 2022: €54,236 thousand).

The most representative disposals of property, plant and equipment are derived from the following: the replacement of explosive detection equipment integrated in the baggage handling system at several airports in the network with new models adjusted to the Standard 3 established by the ECAC (European Civil Aviation Conference); at Adolfo Suárez Madrid-Barajas Airport, the removal of SIP intercom monitors from terminal buildings T2, T3, T4 and T4S and supplemental communications equipment; at Palma de Mallorca Airport, the removal of tomography equipment; and the removal of equipment and wiring from beacons at Barcelona-El Prat Josep Tarradellas Airport, Adolfo Suárez Madrid-Barajas Airport and Tenerife Sur Airport.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The derecognition of property, plant and equipment that occurred during the fiscal year 2023 with their allocation to profit or loss have resulted in an overall loss of €4,395 thousand. Moreover, the following items that have not generated any result in the profit and loss account are included within derecognitions:

• Reversals of provisions recorded in previous fiscal years for estimated environmental investments to comply with current regulations, for fair value differences primarily arising from land expropriations and for litigation related to works, which have been charged to the provisions for risks and expenses accounts (see Note 21) amounted to a total of €4,215 thousand.
• Payments to suppliers of fixed assets in relation to amounts activated in previous fiscal years, amounted to €6,202 thousand.

During the fiscal year 2022, the most representative derecognitions of property, plant and equipment derive from the following: the lengthening of the runway at A Coruña Airport; the replacement of explosives detection equipment integrated into the baggage handling system at several airports in the network with new models compliant with the Standard 3 established by the ECAC (European Civil Aviation Conference); the remodelling of airbridges and replacement of the 400 Hz collector equipment at several airports in the network; and the renewal due to obsolescence of the mobile radio communications system and the closed circuit television (CCTV) system for the apron management service at Adolfo Suárez Madrid-Barajas Airport.

The derecognition of property, plant and equipment that occurred during the fiscal year 2022 with their allocation to profit or loss have resulted in an overall loss of €11,961 thousand. Moreover, the following items that have not generated any result in the profit and loss account are included within derecognitions:

• Reversals of provisions recorded in previous fiscal years for estimated environmental investments to comply with current regulations, for fair value differences primarily arising from land expropriations and for litigation related to works, which have been charged to the provisions for risks and expenses accounts (see Note 21) amounted to a total of €37,369 thousand.
• Payments to suppliers of fixed assets in relation to amounts activated in previous fiscal years, amounted to €3,703 thousand.

7.5 Capital grants

As of 31 December 2023, the Company has grants for fixed assets amounting to €278,700 thousand net of taxes (2022: €296,790 thousand) (see Note 19.4). The gross cost of the assets in use affected by these grants is €2,365.5 million, which correspond to property, plant and equipment and €0.3 million that corresponds to intangible assets (2022: €2,372 million of property, plant and equipment).

From the above amount, only a debtor balance of €3,976 thousand remains for AENA S.M.E., S.A. regarding this item as of 31 December 2023 (2022: €769 thousand) (see Note 22).

7.6 Limitations

The contributed land, buildings and constructions (see Note 1) have lost their classification as public domain property due to the reclassification conducted by Article 9 of Royal Decree-Law 13/2011, of 3 December, which establishes that all state public domain properties assigned to the public business entity ENAIRE that are not used for air navigation services, including those destined for air traffic services, will cease to be public domain property, without this altering the purpose for which they were expropriated and they will, therefore, not need to be reversed.

There are certain limitations on the sale of airport assets (see Note 15).

7.7 Fully amortised assets

As of 31 December 2023 and 2022, there is property, plant and equipment that is fully amortised and still in use, according to the following breakdown:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	20231	20221
Buildings	1,573,442	1,544,259
Technical facilities and machinery	636,486	625,125
Other facilities, tools and furnishings	2,223,363	2,082,419
Other fixed assets	275,773	270,821
Total	4,709,064	4,522,624

1 These amounts refer to the original cost of the assets (the non-monetary contribution was made at net book value).

7.8 Commitments

The commitments for investments pending execution as of 31 December 2023 amount to approximately €1,725.2 million (2022: €1,299.7 million), which include the awarded investments pending contractual formalisation and the final investments pending execution. A breakdown of the fiscal years in which payments will be made for the fixed asset purchase commitments are shown below:

	Maturity	31 December 2023
		(Millions of euros)
2024		939
2025		423
2026		244
2027		98
2028		21
Subsequent		-
Total		1,725

The total investment for the period 2022–26 in DORA II amounts to €2,250 million. This investment is not formalised or enforceable at the end of fiscal year 2023, with the exception of €459.8 million (2022: €415.1 million), corresponding to investment commitments for the 2022–26 period that are included in the previous breakdown. All the same, the DORA contains correction mechanisms that can be implemented if any deviations occur in the annual execution of investments with respect to said amounts.

The breakdown by type of investment included in the DORA for the 2022–26 period is as follows:

Type of investment	Total for the period	2022-2026
(Millions of euros)
Strategic investments	479	21.3%
Regulated investments	616	27.4
Relevant investments	335	14.8%
Other investments	697	31.0%
Budgetary allocation for replacement	123	5.5%
Total for DORA Period	2,250	100%

The 2022–26 DORA identifies strategic investments as those that are necessary to comply with the established capacity standards, as well as those that due to their scope have an extraordinary impact on the strategic lines for the second regulated five-year period in terms of sustainability, innovation and economic and process efficiency. Of particular relevance are the capacity actions that will be needed in future regulatory periods but which need to be started during the five-year period of 2022–26.

The regulated investments planned for the next five-year period and onwards are focused, to a large extent, on performing the actions required by the applicable regulations, as well as on carrying out the proper maintenance of the

Individual Annual Accounts Report | 2023

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

airport network and contributing to the improvement of environmental sustainability. As of the date of drawing up these Annual Accounts, no difficulties in being able to execute the required investments are identified.

7.9 Insurance policies

The Company's policy is to take out insurance policies to suitably cover all possible risks that could affect the various items of its property, plant and equipment. At the end of fiscal years 2023 and 2022, the Company considers there is no coverage deficit.

7.10 Leases

The Company leases part of its property, plant and equipment to third parties for commercial use. The Company's operating and financial leases are detailed in Note 9 and the revenue generated by this business area is detailed in Note 23.1. The approximate amount of the property, plant and equipment items that are subject to operating lease as of 31 December 2023 amounts to approximately €1,138 million (2022: €1,154 million).

7.11 Jointly controlled assets

The Company has an agreement with the Ministry of Defence to establish the rules on the allocation of costs and the compensation criteria for the use by civilian aircraft of Air Bases Open to Civilian Traffic in Valladolid Airport, León Airport, Albacete Airport, Salamanca Airport, Badajoz Airport and the common-use airfield in Zaragoza Airport. This agreement is based on the application of Royal Decree 1167/1995, of 7 July, on the system of using airfields, which are used both as an air base and an airport, and on air bases open to civilian traffic.

The amounts shown below represent the Company's shareholdings in assets and liabilities, not including the allocation of indirect costs, which have been included in the balance sheet (in thousands of euros):

	2023	2022
- Non-current assets	161,560	169,143
Net assets	161,560	169,143
- Revenue	14,733	13,946
- Expenses	(41,195)	(41,118)
Profit/(loss) after taxes	(26,462)	(27,172)

There are no contingent liabilities corresponding to the Company's interest in the joint ventures or contingent liabilities in the joint venture itself.

7.12 Renovation costs

In accordance with the accounting policy described in Note 4.2, the Company activates, as the greatest value of the fixed assets, the initial estimate of the costs to repair the site to its original condition, when they constitute obligations incurred by Aena as a result of using the item. Thus, all obligations envisaged for carrying out noise insulation and soundproofing of residential areas in order to comply with current legislation on noise generated by airport infrastructures are capitalised as an increase in airport assets (see Note 21).

8. Real estate investments

Real estate investment movements during fiscal years 2023 and 2022 are shown below:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Notes		2023
			Real estate land and buildings	Other facilities	Total
Cost:
Opening balance			201,299	3,465	204,764
Additions			1,546	83	1,629
Derecognitions			(878)	(15)	(893)
Transfers	6	7	6,034	-	6,034
Closing balance			208,001	3,533	211,534
Amortisation:
Opening balance			(62,610)	(3,439)	(66,049)
Allocation			(5,602)	(106)	(5,708)
Derecognitions			858	15	873
Transfers	6	7	(389)	-	(389)
Closing balance			(67,743)	(3,530)	(71,273)
Impairment:
Opening balance			(4,862)	-	(4,862)
Allocation			(460)	-	(460)
Reversal			15	-	15
Closing balance			(5,307)	-	(5,307)
Net:			134,951	3	134,954

	Notes		2022
			Real estate land and buildings	Other facilities	Total
Cost:
Opening balance			198,076	3,509	201,585
Additions			355	-	355
Derecognitions			(234)	(44)	(278)
Transfers	6	7	3,102	-	3,102
Closing balance			201,299	3,465	204,764
Amortisation:
Opening balance			(56,400)	(3,436)	(59,836)
Allocation			(5,435)	(47)	(5,482)
Removed allocations			205	44	249
Transfers	6	7	(980)	-	(980)
Closing balance			(62,610)	(3,439)	(66,049)
Impairment:
Opening balance			(5,021)	-	(5,021)
Allocation			(11)	-	(11)
Reversal			170	-	170
Closing balance			(4,862)	-	(4,862)
Net:			133,827	26	133,853

This heading mainly includes real estate assets used for leasing operations or assigned for use (land, offices, hangars and warehouses). In the cases of properties where a part thereof generates rent and another part is used in the production or supply of goods or services, or for administrative purposes, such properties are considered real estate investments when the use corresponding to the production or supply of goods or services, or for administrative purposes, is an insignificant portion thereof.

At the end of fiscal years 2023 and 2022, there were no real estate investments subject to guarantees.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The Company's policy is to obtain insurance policies to cover possible risks that could affect its real estate investments. At the end of fiscal years 2023 and 2022, the Company had reasonably covered these risks.

In fiscal years 2023 and 2022, the main additions in real estate investments correspond to improvements made in real estate constructions and the transfers due to change of use of various buildings and land.

During the fiscal years 2023 and 2022, the Company has acquired the following elements of its real estate investments from related companies (in thousands of euros):

	2023		2022
	Book value (gross)	Accumulated amortisation	Book value (gross)	Accumulated amortisation
Land and buildings	5	-	180	(3)
Total	5	-	180	(3)

As of 31 December 2023 and 2022, there are real estate investments that are fully amortised and still in use, according to the following breakdown:

	20231	20221
Real estate buildings	15,948	14,156
Real estate facilities	3,351	2,855
Total	19,299	17,011

1 These amounts refer to the original cost of the assets (the non-monetary contribution was made at net book value).

The fair value of the real estate investments, taking into account the present values as of the dates presented, are as follows:

	2023	2022
Land	399,134	388,677
Buildings	545,133	544,486
Total	944,267	933,163

The Company has commissioned an independent appraisal company (Gloval Valuation, S.A.U.) to review and value the real estate portfolio as of 31 December 2023, as it also did for 31 December 2022, in order to determine the fair value of its real estate investments, with special attention put on the significant changes and market conditions caused by the COVID-19 pandemic.

The valuation has been performed using a capitalisation approach, which provides an indication of value by converting future cash flows into a single present capital value. This approach, which is similar to a Discounted Cash Flow (DCF) model, is generally used to estimate the value of cash-generating operating units, explicitly recognising the time value of cash flows that the asset itself will generate.

As a result of the comparison between the fair value as of 31 December 2023 and the book value of the various cashgenerating units included in the real estate segment, an impairment has been endowed totalling €460 thousand (2022: €11 thousand), as well as a partial reversal of impairments of real estate buildings totalling €15 thousand (2022: €170 thousand), thus obtaining a net negative result of €445 thousand (2022: positive result of €159 thousand).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

9. Leases

9.1 Operating leases

9.1.1 Lessee

The Company uses various assets from third parties under an operating lease regime, among which the following assets can be highlighted, which have been novated in December 2023, extending the term and leasing fees, along with the main characteristics of the corresponding contract:

Asset	Location	Date of maturity	Annual rent without VAT (thousands of euros)	Notes
Piovera building	Adolfo Suárez Madrid Barajas Airport	31/01/2029	3,825	Rent based on contract conditions

The total minimum future payments of operating leases that cannot be cancelled (until the expiry date of the contracts) are as follows (in thousands of euros):

	2023	2022
Less than one year	4,183	3,953
Between one and five years	16,987	330
More than five years	138	-
Total	21,308	4,283

9.1.2 Lessor

The Company leases various commercial spaces, areas inside and outside the terminal, hangars and warehouses, among others, under non-cancellable operating lease contracts. These contracts typically last between five and ten years.

The minimum total collections from non-cancellable operating leases are as follows for the terms indicated (in thousands of euros):

	2023	2022
Less than one year	1,025,207	161,839
Between one and five years	3,326,205	456,179
More than five years	4,261,847	49,017
Total	8,613,259	667,035

As a result of the entry into force of the DF7 on 3 October 2021, the Minimum Annual Guaranteed Rent (MAG) established in the contracts in force at that time is converted to variable rent based on the reduction of the volume of passengers at each airport where the leased premises is located with respect to the volume of passengers that existed at that same airport in 2019, until the annual volume of passengers at the airport is equal to that which existed in 2019.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

At the close of fiscal year 2023, the amount of total minimum collections for non-cancellable operating leases has increased very significantly as a result of the recovery in air traffic, which has meant that practically all of the airports in the national network have reached the passenger volume they had in 2019 and, therefore, DF7 is no longer applicable; as well as the formalisation during 2023 of new commercial and real estate leasing contracts, highlighting the formalisation of the Duty-Free Shop (TLI) contracts during November 2023, which represents most of the increase in future minimum collections.

The total minimum charges, broken down for the next 5 years, for non-cancellable operating leases, are as follows:

Maturity	As of 31 December 2023
	(thousands of euros)
2024	1,025,207
2025	880,397
2026	864,026
2027	827,428
2028	754,354
Subsequent	4,261,847
Total	8,613,259

9.2 Financial leases

As part of its property, plant and equipment, the Company reports a power cogeneration plant of the Adolfo Suárez Madrid-Barajas Airport and certain computer equipment, as well as various SaaS (software as a cloud service) licences within its intangible fixed assets, with such assets being found under a financial lease agreement in which the Company is the lessee.

The amount for which the assets were initially recognised amounted to €37,380 thousand, corresponding to their estimated fair value. The amounts are shown below in thousands of euros:

	2023	2022
Cost – capitalised finance leases	37,380	17,955
Accumulated amortisation	(17,131)	(13,466)
Net book value	20,249	4,489

As of 31 December 2023 and 2022, the current value of the minimum lease payments to be paid in the future, not including increases in inflation or other contingent charges, derived from said financial lease agreements is as follows (in thousands of euros):

	2023	2022
Less than one year	4,616	1,701
Between one and five	14,070	3,796
years More than five years	-	-
	18,686	5,497

There are no restrictions on the Company stipulated in the above financial lease agreements regarding the indebtedness or execution of new leases.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

10. Financial instruments

10.1 Analysis by category

The book value of each category of financial instruments established in the 'Financial instruments' recording and valuation standard, except for investments in the equity of group, multigroup and associated companies (Note 11), is as follows (in thousands of euros):

		Notes	Long-term financial assets
			Equity instruments		Loans to companies			Derivatives		Other instruments (*)		Total
			2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Financial Assets at Amortised Cost			-	-	-	-	-	-	96,328	95,226	96,328	95,226
Financial Assets at Cost	12	11	57	26	1,021,758	377,934	-	-	-	-	1,021,815	377,960
Hedging derivatives			-	-	-	-	19,436	67,670	-	-	19,436	67,670
Total			57	26	1,021,758	377,934	19,436	67,670	96,328	95,226	1,137,579	540,856

(*) The 'Other instruments' item mainly includes deposits consigned by legal mandate with various public institutions of Autonomous Regions, corresponding to deposits in guarantee previously received from leaseholders of commercial spaces owned by AENA S.M.E., S.A., in compliance with Act 29/1994, of 24 November, on Urban Leases.

The following loans are included in the heading 'Loans to companies':

• Equity loans with the concession company of Aeropuerto Internacional de Murcia, S.M.E.: the company maintains two equity loans with AIRM. The first of them, for the amount of €3 million, which was signed on 10 February 2022, due on 15 December 2025, with the possibility of a two-year extension. The second for the amount of €2.5 million, signed on 15 December 2023 and also due on 15 December 2025. As of 31 December 2022, the company only had the loan of €3 million.
• Loans with Aena Desarrollo Internacional, S.M.E.: the company maintains three loans based on the following characteristics:
  • One equity loan of €250 million signed in December 2023, maturing in March 2025 (with the possibility of three extensions of one year each). As of 31 December 2022, the balance of the equity loan was €370 million, which has been repaid during the fiscal year 2023.
  • Two loans granted for the financing of the concession of the Brazilian company BOAB, for the following amounts: €458.7 million signed in January 2023 with maturity on 16 March 2025; and €307.5 million signed in November 2022 but whose disbursement was made on 26 January 2023, with maturity on 26 January 2028 and the possibility of two extensions of two years each.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Short-term financial assets
	Loans to companies		Derivatives		Other financial instruments (*)		Total
	2023	2022	2023	2022	2023 2022		2023	2022
Financial Assets at Amortised Cost	15,310	1,780	-	-	660,398	570,840	675,708	572,620
Financial assets at cost (Note 12)	16,344	-	-	-	-	-	16,344	-
Hedging derivatives	-	-	31,704	31,514	-	-	31,704	31,514
Total	31,654	1,780	31,704	31,514	660,398	570,840	723,756	604,134

(*) The 'Other financial instruments' item mainly contains the total of the 'Trade and other receivables' heading, excluding 'Other loans with Public Administrations' and 'Current tax assets'.

	Long-term financial liabilities
	Debts with credit institutions (*)		Debts with group companies (**)		Marketable Securities (***)		Other financial liabilities (****)		Total
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Financial Liabilities at Amortised Cost	3,029,211	3,298,048	2,345,453	3,110,718	496,538	-	257,538	167,979	6,128,740	6,576,745
Hedging derivatives	-	-	-	-	-	-	-	-	-	-
Total	3,029,211	3,298,048	2,345,453	3,110,718	496,538	-	257,538	167,979	6,128,740	6,576,745

(*) Including the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €1,061 thousand (2022: €1,952 thousand) (see Note 15).

(**) The heading of 'Debts with group companies' includes the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €1,152 thousand (2022: €1,594 thousand) (see Note 15).

(***) The effect of the bond issue explained in note 15.4 is included in the section on marketable securities.

(****) The amount of the bonds corresponds to bonds and guarantees set by commercial space leaseholders, as well as deposits established by airlines and handling agents.

		Short-term financial liabilities
	Debts with credit institutions (*)		Debts with group and associated companies (**)			Derivatives		Other financial liabilities (***)		Total
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Financial Liabilities at Amortised Cost	893,500	87,482	787,193	535,721	-	-	710,048	622,511	2,390,741	1,245,714
Hedging derivatives	-	-	-	-	-	1,162	-	-	-	1,162
Total	893,500	87,482	787,193	535,721	-	1,162	710,048	622,511	2,390,741	1,246,876

(*) Including the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €5,003 thousand (2022: €1,066 thousand (Note 20)) (see Note 15).

(**) The 'Debts' heading refers to 'Debts with group companies' and includes the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €231 thousand (2022: €231 thousand) (see Note 15).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

(***) Includes, mainly, debts to fixed asset Suppliers, for the amount of €352,043 thousand (2022: €297,106 thousand), €4,512 thousand associated with the issuance marketable securities for interest and commissions (note 15.4), as well as the 'Trade and other payables' heading excluding 'Other debts with Public Administrations'.

The net profits and losses of financial assets and liabilities as of 31 December 2023 and 2022 are shown in Note 23.6.

At the close of the fiscal year ended 31 December 2023 and 2022, the Company has no firm commitment to purchase or sell financial assets and liabilities.

10.2 Fair value

At the end of fiscal years 2023 and 2022, the book value of financial assets and liabilities does not differ significantly from their fair value.

The following table presents an analysis of the financial instruments that are measured at fair value for accounting purposes, classified by measurement method. A fair value hierarchy is established that classifies the input data from valuation techniques used to measure fair value in three levels, as follows:

• – Listed prices (not adjusted) on active markets for identical assets and liabilities (Tier 1).
• – Data other than listed prices included within Level 1 that are observable for the asset or liability, both directly (i.e. prices) and indirectly (i.e. derived from prices) (Tier 2).
• – Information regarding the asset or liability that is not based on observable market data (non-observable data) (Tier 3).

The following table presents the Company's assets and liabilities measured at fair value at 31 December 2023:

	Note	Tier 1	Tier 2	Tier 3	Total balance
Assets
Derivatives	13	-	51,140	-	51,140
Total assets		-	51,140	-	51,140
Liabilities
Derivatives	13	-	-	-	-
Total liabilities		-	-	-	-

The following table presents the Company's assets and liabilities measured at fair value at 31 December 2022:

	Note	Tier 1	Tier 2	Tier 3	Total balance
Assets
Derivatives	13	-	99,184	-	99,184
Total assets		-	99,184	-	99,184
Liabilities
Derivatives	13	-	1,162	-	1,162
Total liabilities		-	1,162	-	1,162

There have been no transfers between Tier 1 and Tier 2 financial instruments during the period.

Financial instruments in Tier 1:

The fair value of the financial instruments that are negotiated on active markets is based on listed market prices at the date of the balance sheet. A market is considered active when listed prices are readily and regularly available through an exchange, financial intermediaries, a sectoral institution, a price service or a regulatory body, and those prices reflect current market transactions that occur regularly between parties acting in conditions of mutual independence. The listed market price used for the financial assets held by the Company is the current purchasing price. These instruments are included in Tier 1. There are no financial instruments in Tier 1 on any of the dates.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Financial instruments in Tier 2:

The fair value of financial instruments that are not traded on an active market (e.g. off-the-books market derivatives) is determined using valuation techniques. The measurement techniques maximise the use of observable market information that is available and are based as little as possible on specific estimates made by the companies. If the significant inputs that are required to calculate the fair value of an instrument are observable, the instrument is included in Tier 2. The financial instruments included in Tier 2 are interest rate derivatives (swaps) hedging floating rate loans.

Financial instruments in Tier 3:

If one or more of the significant inputs are not based on data observable in the market, the financial instrument is included in Tier 3. There are no financial instruments in Tier 3 on either of the dates.

The specific measurement techniques applied to financial instruments include:

• Listed market prices or the prices established by financial brokers for similar instruments.
• The fair value of interest rate swaps is calculated as the present value of estimated future cash flows based on estimated interest rate curves.
• Other techniques, such as an analysis of discounted cash flows, are used to analyse the fair value of all other financial instruments.

10.3 Analysis by maturity

On 31 December 2023, the amounts of financial instruments with a determined or determinable maturity, classified by year of maturity, are as follows (in thousands of euros):

Financial assets	2024	2025	2026	2027	2028	2029 and subsequent	Total
Financial assets at amortised cost	675,708	13,915	15,162	11,206	9,284	46,761	772,036
Financial assets at cost (Note 12)	16,344	714,242	-	-	307,516	57	1,038,159
Hedging derivatives	31,704	11,520	7,916	-	-	-	51,140
Total	723,756	739,677	23,078	11,206	316,800	46,818	1,861,335

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Financial liabilities	Notes	2024	2025	2026	2027	2028	2029 and subsequen t	Total
Loan with Ultimate Parent Company and other group companies(*)	15	776,336	396,710	376,402	345,492	318,887	907,962	3,121,789
Interest accrued on outstanding loans		10,857	-	-	-	-	-	10,857
Debts with credit institutions (**)	15	875,039	780,042	406,708	546,708	26,708	1,269,045	3,904,250
Interest on debts with credit institutions	15	18,461	-	-	-	-	-	18,461
Marketable Securities	15.4	-	-	-	-	-	496,538	496,538
Interest from marketable securities		4,512	-	-	-	-	-	4,512
Guarantees received		70,180	68,197	22,908	10,732	35,926	105,528	313,471
Financial leasing creditors		4,616	8,077	3,404	2,586	3	-	18,686
Other long-term debts		121	26	24	23	21	83	298
Trade and other payables		630,619	-	-	-	-	-	630,619
Hedging derivatives	15	-	-	-	-	-	-	-
Total		2,390,741	1,253,052	809,446	905,541	381,545	2,779,156	8,519,481

(*) Including the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €1,383 thousand, of which an amount of €1,152 thousand corresponds to long-term and €231 thousand to short-term (2022: €1,825 thousand, of which €1,594 thousand are long-term and €231 thousand are short-term) (see Note 15), as these concepts do not involve cash outflow.

(**) Including the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €6,064 thousand, of which an amount of €1,061 thousand are long-term and €5,003 thousand are short-term (2022: €3,018 thousand, of which €1,952 thousand are longterm and €1,066 thousand are short-term) (see Note 15), as these concepts do not involve cash outflow.

On 31 December 2022, the amounts of financial instruments with a determined or determinable maturity, classified by year of maturity, are as follows (in euros):

Financial assets	2023	2024	2025	2026	2027	2028 and subsequent	Total
Financial assets at amortised cost	572,620	22,936	4,753	30,223	11,632	25,682	667,846
Financial assets at cost	-	-	377,934	-	-	26	377,960
Hedging derivatives	31,514	30,886	20,873	15,911	-	-	99,184
Total	604,134	53,822	403,560	46,134	11,632	25,708	1,144,990

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Financial liabilities	Notes	2023	2024	2025	2026	2027	2028 and subsequen t	Total
Loan with Ultimate Parent Company and other group companies(*)	15	524,566	765,707	396,710	376,402	345,492	1,226,407	3,635,284
Interest accrued on outstanding loans		11,154						11,154
Debts with credit institutions (**)	15	78,934	1,233,000	780,000	406,667	146,667	731,714	3,376,982
Interest on debts with credit institutions		8,548						8,548
Guarantees received		30,092	58,884	45,425	17,464	15,367	26,744	193,976
Financial leasing creditors		1,701	1,915	1,880				5,496
Other long-term debts		42	40	37	35	33	155	342
Trade and other payables		590,677						590,677
Hedging derivatives	15	1,162						1,162
Total		1,246,876	2,059,546	1,224,052	800,568	507,559	1,985,020	7,823,621

(*) Including the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €1,825 thousand, of which an amount of €1,594 thousand corresponds to long-term and €231 thousand to short-term (2021: €2,350 thousand, of which €2,078 thousand are long-term and €272 thousand are short-term) (see Note 15), as these concepts do not involve cash outflow.

(**) Including the effect of the novation commissions and expenses accounted for at the amortised cost criteria for a total amount of €3,018 thousand, of which an amount of €1,952 thousand are long-term and €1,066 thousand are short-term (2021: €3,725 thousand, of which €2,896 thousand are long-term and €830 thousand are short-term) (see Note 15), as these concepts do not involve cash outflow.

11. Investments in group, associate and multigroup companies, and other shareholdings

11.1 Equity instruments

The movements of investments in equity instruments of group companies are as follows:

	Thousands of euros
Subsidiaries	2022	Additions	Derecognitions
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A. ('SCAIRM')	16,192	-	-	16,192
Aena Desarrollo Internacional S.M.E., S.A. ('ADI')	165,032	-	-	165,032
Cost	181,224	-	-	181,224
	2022	Allocation	Reversal	2023
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A. ('SCAIRM')	-	-	-	-
Impairment	-	-	-	-
Total equity instruments	181,224	-	-	181,224

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Thousands of euros
Subsidiaries	2021	Additions	Derecognitions	2022
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A. ('SCAIRM')	16,192	-	-	16,192
Aena Desarrollo Internacional S.M.E., S.A. ('ADI')	165,032	-	-	165,032
Cost	181,224	-	-	181,224
	2021	Allocation	Reversal	2022
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A. ('SCAIRM')	(9,386)	-	9,386	-
Impairment	(9,386)	-	9,386	-
Total equity instruments	171,838	-	9,386	181,224

The main data regarding shareholdings in group and associated companies, as well as other shareholdings, none of which are listed on the stock exchange as of 31 December 2023 and 2022, are set out below:

11.2 Shareholdings in group companies

Details of the Group's subsidiary companies as of 31 December 2023 and 2022, all consolidated by applying the global integration method in the consolidated annual accounts of the group of which the Company is parent, are as follows:

			%		Share
Subsidiaries Address		Activity	Direct	Indirect	holder
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E.	Murcia	Company holding the operating concession for Región de Murcia International Airport.	100	-	AENA S.M.E., S.A.
('SCAIRM') (1)
Aena Desarrollo Internacional S.M.E., S.A.	Adolfo Suárez Madrid-Barajas	Operation, maintenance, management and administration of airport infrastructure, as	100	-	AENA S.M.E., S.A.
('ADI') (1)	Airport	well as complementary services.
London Luton Airport Holdings III Limited ('LLAH III') (2)	Luton (United Kingdom)	Holding of shares in the company that holds the concession for the operation of London Luton Airport.	-	51	Aena Desarrollo Internacional S.M.E., S.A.
London Luton Airport Holdings II Limited ('LLAH II') (2)	Luton (United Kingdom)	Holding of shares in the company that holds the concession for the operation of London Luton Airport.	-	51	London Luton Airport Holdings III Limited (LLAH III)
London Luton Airport Holdings I Limited ('LLAH I') (2)	Luton (United Kingdom)	Holding of shares in the company that holds the concession for the operation of London Luton Airport.	-	51	London Luton Airport Holdings II Limited (LLAH II)
London Luton Airport Group Limited ('LLAGL') (2)	Luton (United Kingdom)	Guarantor company for the acquisition of the concession for the operation of London Luton Airport.	-	51	London Luton Airport Holdings I Limited (LLAH I)
London Luton Airport Operations Limited ('LLAOL') (2)	Luton (United Kingdom)	Company holding the concession for the operation of London Luton Airport.	-	51	London Luton Airport Group Limited ('LLAGL')
Bloco de Onze Aeroportos do Brasil S.A. (BOAB) (2)	São Paulo (Brazil)	Provision of public services for the expansion, maintenance and operation of airport infrastructure in the airport complexes comprising the SP/MS/PA/MGl Group.	-	100	Aena Desarrollo Internacional S.M.E., S.A.
Aeroportos do Nordeste do Brasil, S.A. (ANB) (2)	São Paulo (Brazil)	Provision of public services for the expansion, maintenance and operation of airport infrastructure in the airport complexes comprising the Northeast of Brazil block.	-	100	Aena Desarrollo Internacional S.M.E., S.A.

(1) Companies audited by KPMG Auditores, S.L.

(2) Companies audited by the KPMG network

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The main amounts of capital, equity, results and book value related to the group companies at the end of fiscal years 2023 and 2022 are as follows:

11.2.1 Companies with a direct stake in Aena

a) Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A. ('SCAIRM")

31 December 2023 Name/Address/Activity Fraction of the Direct Capital (%) Share capital Profit/(Loss) Reserves Other equity Total equity Book value (*) Operation Net Aena Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E. 100% 8,500 (1,669) (1,273) 1,697 (6,468) 2,456 16,192 Avenida España 101, Valladolises y Lo Jurado (Murcia)/ Administrative concession for the management, operation and maintenance of the Región de Murcia International Airport. Total 16,192

(*) Data obtained from the individual annual accounts for fiscal year 2023.

	31 December 2022
	Fraction of	Profit/(Loss) Share						Book
Name/Address/Activity	the Direct Capital (%)	capital	Operation	Net	Reserves	Other equity	Total equity	value (*)
Aena Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E.	100%	8,500	298	199	1,697	(6,667)	3,729	16,192
Avenida España 101, Valladolises y Lo Jurado (Murcia)
Administrative concession for the management, operation and maintenance of the Región de Murcia International Airport.
Total								16,192

(*) Data obtained from the individual annual accounts for fiscal year 2022.

On 25 January 2018, Aena incorporated 'Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E., S.A.' (hereinafter, SCAIRM), the concession company holding the contract for the management, operation, maintenance and conservation of the Región de Murcia International Airport (SCAIRM), operating this airport as a concession and its complementary activities area for a period of 25 years, with the concession agreement being formalised on 24 February 2019.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

As a result of the situation caused by the pandemic, the air traffic at this airport has been strongly impacted by significant reductions in traffic, which significantly affected its activity and therefore its turnover and results during 2020, 2021 and at the start of 2022. Additionally, the forecasts showed future scenarios that are totally different from those foreseen at the time the concession contract bid was made.

In view of the unbalanced situation of the concession, on 27 December 2021, the addendum to the concession contract was formalised in accordance with the Order of the Ministry of Development and Infrastructures of the Region of Murcia dated 17 November 2021, which issues a resolution regarding the requests to rebalance the Concession Agreement for the 'Management, operation, maintenance and conservation of the Región de Murcia International Airport', modifying part of the relevant terms of the agreement based on which compensation mechanisms are established, which are based mainly on a transformation of the fixed fees to be paid into variables based on air traffic that will be periodically reviewed. At the close of 2023, airport traffic has increased by 4.6% compared to that recorded in 2022. However, traffic levels have not yet fully reached the 2019 figure, with full recovery expected by 2025.

As of 31 December 2023, a detailed review of the company's potential impairment indicators has been carried out in order to determine whether at this date there was any indication that would justify the need to perform an impairment test. After said analysis, and taking into account the most relevant aspects that affect the business (such as passenger traffic volume, performance of interest rates that could affect the discount rate, and taking into account the wide margin that at the end of 2022 existed when comparing the recoverable value with the net book value), it can be concluded that at 31 December 2023, there are no indicators of impairment.

For its part, the impairment test carried out at the end of fiscal year 2022 reversed the entire impairment recorded in previous fiscal years, resulting in a sufficient margin of the value in use on the contrast book value of net assets. At the close of fiscal year 2023, it has become clear that there are no indicators of impairment and no significant changes have been identified in the assumptions on which the December 2022 impairment test projections were based, and therefore, it has not been considered necessary to update the impairment test performed in the previous fiscal year.

The reasonableness of the key assumptions made, as well as of the sensitivity analyses carried out, the results and the conclusions reached in the impairment tests carried out, have been favourably reviewed by independent professional experts.

31 December 2023 Name/Address/Activity Fraction of the Direct Capital (%) Share capital Profit/(Loss) Reserves Other equity Total equity Book value (*) Operation Net Aena Desarrollo Internacional S.M.E., S.A. 100% 161,182 370,237 343,853 238,019 (274,703) 468,351 165,032 Peonías, 12. Adolfo Suárez Madrid-Barajas Airport Operation, conservation, management and administration of airport infrastructures. Total 165,032

b) Aena Desarrollo Internacional S.M.E., S.A. ('ADI")

(*) Data obtained from the individual annual accounts for fiscal year 2023.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	31 December 2022
Name/Address/Activity	Fraction of	Share capital	Profit/(Loss)			Other equity	Total equity	Book value (*)
	the Direct Capital (%)		Operation	Net	Reserves
Aena Desarrollo Internacional S.M.E., S.A.	100%	161,182	130,548	78,473	230,989	(346,146)		124,498 165,032
Peonías, 12. Adolfo Suárez Madrid-Barajas Airport
Operation, conservation, management and administration of airport infrastructures.
Total								165,032

(*) Data obtained from the individual annual accounts for fiscal year 2022.

The Company 'Aena Desarrollo Internacional S.M.E., S.A. (Single-member Company)' (hereinafter ADI) was incorporated on 13 November 1991 under the company name of Empresa de Mantenimiento Aeronáutico, S.A., with its only shareholder being the company Aena S.M.E., S.A. The Company is a holding company that holds shares or stakes in the international business of the AENA group through investments in companies domiciled outside Spain, which is its current activity.

In fiscal years 2023 and 2022, Aena Desarrollo Internacional, S.M.E., S.A. has not distributed dividends.

In line with the test conducted by Aena, at the close of the fiscal year ended on 31 December 2023, Aena Desarrollo Internacional has calculated the recoverable amount of its stakes, as well as of the loan granted to its subsidiaries LLAHL II and LLAH III, ANB and BOAB, by estimating its share in the cash flows expected to be generated by the held companies, arising from both their ordinary activities and their disposal or derecognition in accounts. These calculations use cash flow forecasts based on financial budgets approved by Management that cover the duration of the operating concessions of the Luton (London, United Kingdom) and Brazilian airports. The flows consider past experience and represent Management's best estimate of future market evolution. As a result of these tests, at the end of financial year 2023, ADI recorded an impairment reversal in its stake in LLAHL III amounting to €8,981 thousand (2022: impairment reversal of €15,455 thousand), and has recorded an impairment reversal amounting to €245,705 thousand in its stake in ANB (2022: allowance for impairment of €70,194 thousand).

On the other hand, it is important to mention that ADI's management and administrators estimate that the valuation of the Company's investment in Aeropuertos Mexicanos del Pacífico (AMP) as of 31 December 2023, made on the basis of the recoverable value on that date, would amount to €528,613 thousand (2022: €452,005 thousand), whereas the net book value of the Company's investment in AMP as of 31 December 2023 and 31 December 2022 amounts to €50,555 thousand showing a significant unrealized gain in this company in both fiscal years. The value of the share price at 31 December 2023 was MXN 296.43 (2022: MXN 279.40) and the average share price for the last quarter was MXN 251.74 in 2023 (2022: MXN 300.16).

Based on the above, the Company's management considers that the recoverable amount of the investment in ADI, calculated as of 31 December 2023 and 2022, is higher than its acquisition cost, taking into account its equity plus the unrealised gains existing at the closing date arising from the valuation of ADI's stake in AMP.

As of 31 December 2023, ADI has performed an impairment test to determine the recoverability of the amount of its interests in associates and joint control, no impairment is required to be recorded in any case.

11.2.2 Companies with an indirect stake in Aena

a) London Luton Airport

The Company AENA S.M.E., S.A. has a majority stake in London Luton Airport Holding III Limited (hereinafter, 'LLAH III') and all of its subsidiaries through ADI. The main amounts of capital, equity, results and book value, expressed in local currency and under local accounting principles, and including the valuation of identifiable assets acquired and liabilities

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

assumed on the acquisition date, related to this company at the end of fiscal years 2023 and 2022 are as follows (expressed in thousands):

	31 December 2023
Name/Address/Activity	Share %	Share capital	Operating profit/(loss)	Profit/(loss) for the fiscal year (***)	Reserves	Other equity	Total equity
	Thousands of GBP
London Luton Airport Holdings III Limited (*)	51%	986	56,568	25,302	101,744	(250,610)	(122,578)
London Luton Airport Holdings II Limited (*)	51%	986	60,283	28,125	101,744	(269,986)	(139,131)
London Luton Airport Holdings I Limited (*)	51%	1,930	60,285	38,590	195,211	(279,668)	(43,937)
London Luton Airport Group Limited (*)	51%	5,274	82,681	67,779	52,651	-	125,704
London Luton Airport Operations Limited (**)	51%	5,274	82,681	67,779	52,651	-	125,704

(*) Data obtained from the consolidated financial statements as of 31 December 2023 prepared by the subsidiary's management and pending formulation.

(**) Data obtained from the individual financial statements as of 31 December 2023 prepared by the subsidiary's management and pending formulation.

(***) The profit/(loss) for the year comes entirely from continuing operations.

	31 December 2022
Name/Address/Activity	Share %	Share capital	Operating profit/(loss)	Profit/(loss) for the fiscal year (***)	Reserves	Other equity	Total equity
		Thousands of GBP
London Luton Airport Holdings III Limited (*)	51%	986	37,922	8,439	103,874	(249,339)	(136,040)
London Luton Airport Holdings II Limited (*)	51%	986	41,638	11,417	103,874	(271,692)	(155,415)
London Luton Airport Holdings I Limited (*)	51%	1,930	41,640	21,146	197,341	(257,004)	(36,587)
London Luton Airport Group Limited (*)	51%	5,274	63,815	51,391	66,170	-	122,835
London Luton Airport Operations Limited (**)	51%	5,274	63,815	51,391	66,170	-	122,835

(*) Data obtained from the consolidated annual accounts at 31 December 2022.

(**) Data obtained from the individual annual accounts as of 31 December 2022.

(***) The profit/(loss) for the year comes entirely from continuing operations.

LLAHL III is a holding company created with the objective, through its 100% subsidiary London Luton Airport Holdings II Limited (LLAHL II), which in turn owns 100% of London Luton Airport Holdings I Limited (LLAHL I); of carrying out the acquisition, on 27 November 2013, of London Luton Airport Group Limited and its subsidiary London Luton Airport Operations Limited, the company that manages London Luton Airport in the United Kingdom.

London Luton Airport Operations Limited ('LLA') and London Luton Airport Limited ('LLAL') entered into a Concession Agreement on 20 August 1998, pursuant to which LLA agreed to manage and operate London Luton Airport under the terms of the Concession Contract initially in force until 31 March 2031 and subsequently extended until 15 August 2032 as part of the measures to compensate for the negative consequences of the COVID-19 pandemic on air traffic at the airport.

On 13 October 2023, the maximum regulatory capacity of Luton Airport was expanded by one million passengers, bringing it to the established figure of 19 million passengers.

As at 31 December 2023, ADI has received dividends from LLAH III to the amount of €5,993 thousand.

b) Aeroportos do Nordeste do Brasil (ANB)

On 15 March 2019, ADI was declared the winner by the Brazilian National Civil Aviation Agency (ANAC) of the auction held in connection with the operation and maintenance concession for the following airports: Recife/Guararapes-Gilberto Freyre International Airport, Maceió/Zumbi dos Palmares International Airport, Aracaju-Santa Maria International Airport, Presidente João Suassuna Airport of Campina Grande, Presidente Castro Pinto International Airport of Joao Pessoa and Orlando Bezerra de Menezes Airport of Juazeiro do Norte in Brazil. These airports are grouped within the so-called Northeast Brazil Airport Group. The 30-year service concession contract was signed by the subsidiary Aeroportos do Nordeste do Brasil, S.A. (hereinafter 'ANB') in October 2019, and the start of operation at the 6 airports began between January and March 2020.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

In accordance with Act 40/2015, of 1 October, on the Legal Regime of the Public Sector, at its meeting on 12 April 2019, the Council of Ministers agreed to authorise ADI to create the state trading company called Aeroportos do Nordeste do Brasil, S.A. (hereinafter, 'ANB') as the holder of the concession to manage the aforementioned airports. On 30 May 2019, the new Brazilian company was incorporated, wholly owned by Aena Desarrollo Internacional S.M.E. S.A., with a share capital of R\$10,000 and with the specific and exclusive corporate purpose of providing public services for the expansion, maintenance and operation of the infrastructure of the airport complexes that make up the Northeast of Brazil block. At its meeting held on 1 July 2019, the Board of Directors of the Brazilian company approved a share capital increase of R\$2,388,990,000, which was fully subscribed by its sole shareholder.

Given the characteristics of the bid specifications, it is possible to qualify this contract as a public services management contract in the form of a concession, and its successful tenderer must provide all services corresponding to an airport manager, although not including ATC (Air Traffic Control) services. The main summarised points of this agreement are the following:

• The concession, which has a period of 30 years that may be extended for 5 additional years, is a BOT (build, operate and transfer) concession. Once the total term of the concession has ended, the full and unlimited possession of the land and the entirety of the existing facilities (including the useful expenses made by the concession company and the improvements that may have been incorporated by it) will revert to the Brazilian National Civil Aviation Agency without any right to compensation in favour of the concession company.
• Revenue from aeronautical activity is regulated under a dual till model.
• The new Concession Company will have the right to receive remuneration for the price of the use of the facilities and for the provision of services linked to the management of the airport.
• For its part, the Administration receives a fixed fee of R\$1,900 million (approximately €427.7 million) on the date of signing the contract and a variable concession fee from the fifth year based on the gross revenue of the concession agreement. The variable financial consideration is set at 8.16% of gross revenue, with an initial grace period of 5 years and 5 progressive years. This would commence at 1.63% in 2025 and gradually increase to 3.26% in 2026, 4.90% in 2027, 6.53% in 2028, reaching the applicable contractual rate of 8.16% in 2029 and in successive years.
• The National Civil Aviation Agency (ANAC) estimated an investment amount of R\$2,153 million in the bid specifications (equivalent to €486.6 million at an exchange rate of 4.4239 EUR/BRL) distributed among investments aimed at: adapting the infrastructure to traffic (25.6% of the total estimated by the Brazilian authority); non-mandatory discretionary investments that are mainly intended for commercial areas (31.7%); and infrastructure, runways and equipment maintenance (42.7%).

The main amounts of capital, equity, results and book value, expressed in local currency and under local accounting principles, and including the valuation of identifiable assets acquired and liabilities assumed on the acquisition date, related to this company at the end of fiscal years 2023 and 2022 are as follows (expressed in thousands):

	31 December 2023
	Thousands of RBL (*)
Name/Address/Activity	Fraction of Indirect Capital (%)	Share capital	Profit/(Loss)
			Operation	Net	Reserves	Other equity	Total equity	Book value
Aeroportos do Nordeste do Brasil, S.A. (ANB)		100% 2,389,000	950,172	617,673	-	(491,075)	2,515,598	516,866
State of Recife, Pernambuco (Brazil)
Provision of public services for the expansion, maintenance and operation of airport infrastructure in the airport complexes comprising the Northeast of Brazil block.
Total								516,866

(*) Data obtained from the individual annual accounts for fiscal year 2023.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	31 December 2022 Thousan Thousands of RBL (*) ds of euros
Name/Address/Activity	Fraction of Indirect Capital (%)	Share capital	Profit/(Loss) Operation	Net (**)	Reserves	Other equity	Total equity	Book value
Aeroportos do Nordeste do Brasil, S.A. (ANB)		100% 2,389,000	312,963	213,678	-	(704,753)	1,897,925	274,293
State of Recife, Pernambuco (Brazil)
Provision of public services for the expansion, maintenance and operation of airport infrastructure in the airport complexes comprising the Northeast of Brazil block.
Total								274,293

(*) Data obtained from the individual annual accounts for fiscal year 2022.

c) Bloco de Onze Aeroportos do Brasil S.A.

Within the scope of the objectives of the Strategic Plan 2018–21 and in the strategic vision for the period 2022–26, on 18 August 2022, the National Civil Aviation Agency of Brazil (ANAC [Agência Nacional de Aviação Civil]) declared ADI the winner in the auction held for the signing of a concession contract for the expansion, maintenance and operation of the following in the SP/MS/PA/MG Block: Congonhas – São Paulo, Campo Grande, Corumbá, Ponta Porã, Maestro Wilson Fonseca – Santarém, João Corrêa da Rocha – Marabá, Carajás – Parauapebas, Altamira, Ten. Cel. Aviador César Bombonato – Uberlândia, Mário Ribeiro – Montes Claros, Mario de Almeida Franco – Uberaba (hereinafter, the Tender).

In accordance with the provisions of Act 40/2015, of 1 October, on the Legal Regime of the Public Sector, on 18 October 2022 the Council of Ministers approved authorisation for Aena Internacional to create in Brazil the state trading company Bloco de Onze Aeroportos do Brasil S.A. (hereinafter, 'BOAB'), to be the future concession company of the airports in the SP/MS/PA/MG Block. On 16 November 2022, BOAB was incorporated as a company wholly owned by Aena Internacional, whose corporate purpose is to provide public services for the expansion, maintenance and operation of the airport infrastructure of the airport complexes comprising the SP/MS/PA/MG block. The Company BOAB was incorporated with an initial share capital of R\$10 thousand, which was fully subscribed by Aena Internacional and of which R\$1,000 were paid up. The Board of Directors of BOAB, at a meeting held on 28 November 2022, approved a share capital increase of R\$4,124 million, which was fully subscribed by Aena Internacional. On 26 January 2023, Aena Internacional paid up the R\$1,639 million of the share capital, complying with the minimum amount to be paid up in accordance with the Tender Specifications.

On 28 March 2023, it signed a concession contract for the provision of public services related to the expansion, maintenance and operation of the airport infrastructure of 11 airports in Brazil, located in four states (São Paulo, Mato Grosso do Sul, Minas Gerais and Pará). The concession contract came into force on 5 June 2023 and has a duration of thirty years, with the possibility of an additional five-year extension. BOAB has begun to manage the 11 airports, on a staggered basis, during the second half of 2023 (October and November), once the Operational Transition Plans were approved by the regulator.

Given the characteristics of the bid specifications, it is possible to qualify this contract as a public services management contract in the form of a concession, and its successful tenderer must provide all services corresponding to an airport manager, although not including ATC (Air Traffic Control) services. The main summarised points of this agreement are the following:

• The concession, which has a period of 30 years that may be extended for 5 additional years, is a BOT (build, operate and transfer) concession. Once the total term of the concession has ended, the full and unlimited possession of the land and the entirety of the existing facilities (including the useful expenses made by the concession company and the improvements that may have been incorporated by it) will revert to the Brazilian National Civil Aviation Agency without any right to compensation in favour of the concession company.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• Revenue from aeronautical activity is regulated under a dual till model.
• The new Concession Company will have the right to receive remuneration for the price of the use of the facilities and for the provision of services linked to the management of the airport.
• For its part, the Administration receives a fixed fee of R\$2,450 million (approximately €457.5 million) on the date of signing the contract and a variable concession fee from the fifth year based on the gross revenue of the concession agreement. The consideration for the fifth year is 3.23% and progressively increases (6.46% in the sixth, 9.69% in the seventh and 12.92% in the eighth) up to 16.15% annually in the ninth year and thereafter until the end of the concession.
• The National Civil Aviation Agency (ANAC) estimated in the call for tenders an investment amount of R\$5,808 million (at constant October 2020 prices). At Congonhas airport alone, a total of R\$3,350 million was expected to be invested over the 30-year concession period, of which 75.4% (R\$2,530 million) was to be invested in infrastructure expansion in the first five years of the contract.

On 20 January 2023, ADI signed with BOAB a loan for the amount of R\$2,450,000,000, for the payment to the ANAC of the Initial Contribution derived from the arrangement of the signed concession contract. The loan maturity date is 16 March 2025. The applicable nominal interest rate will be equal to the cumulative change of one hundred percent of the average daily rates of the One Day Brazilian Interfinancial Deposit ('ID Rate'), expressed in an annual percentage, with a base of two hundred and fifty-two (252) business days, calculated and published daily by the Brazilian Stock Exchange. As of 31 December 2023, this loan has a long-term balance of €456,936 thousand, and a balance of €21,754 thousand at CP interest rate, as well as €5,237 thousand recognised as debt at CP rate for the income tax on the collection of the interest on the loan, and has generated interest in favour of ADI to the amount of €51,301 thousand recognised as finance income.

The main amounts of capital, equity, results and book value, expressed in local currency and under local accounting principles, and including the valuation of identifiable assets acquired and liabilities assumed on the acquisition date, related to this company at the end of fiscal year 2023, are as follows (expressed in thousands):

	31 December 2023
	Thousands of RBL (*)
Name/Address/Activity	Fraction of Indirect Capital (%)	Share capital	Profit/(Loss) Operation	Net	Reserves	Other equity	Total equity	Book value
Bloco de Onze Aeroportos do Brasil S.A.(BOAB)	100%	1,639,250	(39,458)	(54,218)	-	(362)	1,584,670	292,895
State of São Paulo, Brazil
Provision of public services for the expansion, maintenance and operation of airport infrastructure in the airport complexes comprising the SP/ MS/PA/MGl Group.
Total								292,895

(*) Data obtained from the individual annual accounts for fiscal year 2023.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	31 December 2022
	Thousands of RBL (*)
	Fraction of		Profit/(Loss)		Other	Total
Name/Address/Activity	Indirect Capital (%)	Share capital	Operation	Net	Reserves	equity	equity	Book value
Bloco de Onze Aeroportos do Brasil S.A.(BOAB)	100%	1	(549)	(362)	-	-	(361)	0.18
State of São Paulo, Brazil
Provision of public services for the expansion, maintenance and operation of airport infrastructure in the airport complexes comprising the SP/ MS/PA/MGl Group.
Total								0.18

(*) Data obtained from the individual annual accounts for fiscal year 2022.

The increase in the value of the shareholding corresponds to the contribution of share capital for the incorporation of the specific purpose company of Brazilian nationality and the capitalization of advisory expenses prior to the incorporation of BOAB.

11.3 Stakes in associated and jointly controlled companies

On the other hand, the Company has indirect holdings in other companies through its subsidiary ADI. The main amounts of capital, equity, results and book value, expressed in local currency and under local accounting principles, related to this company at the end of the fiscal years 2023 and 2022 are the following (expressed in thousands):

	31 December 2023
Name/Address/Activity	Share %	Share capital	Operating profit/(loss)	Profit/(loss) for the fiscal year	Reserves	Other equity	Total equity
Sociedad Aeroportuaria de la Costa S.A. (SACSA)		Thousands of COP
Rafael Núñez Airport. Cartagena de Indias-Colombia.	37.89%	3,698,728	8,000,949	9,171,232	31,491,632	-	44,361,592
Operation of Cartagena Airport (*)
Aeropuertos Mexicanos del Pacífico, S.A. de CV (AMP)				Thousands of MXN
Mexico City Operator of 12 airports in Mexico (*)	33.33%	1,484,705	1,667,953	1,629,695	207,973	137,134	3,459,507
Aerocali, S.A.				Thousands of COP
Alfonso Bonilla Aragón International Airport (Cali, Colombia)	50.00%	3,800,000	63,436,523	45,372,919	3,666,252	-	52,839,171
Operation of Cali Airport (*)

(*) Data obtained from the annual accounts at 31 December 2023.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	31 December 2022
Name/Address/Activity	Share %	Share capital	Operating profit/(loss)	Profit/(loss) for the fiscal year	Reserves	Other equity	Total equity
Sociedad Aeroportuaria de la Costa S.A. (SACSA)		Thousands of COP
Rafael Núñez Airport. Cartagena de Indias-Colombia.		37.89% 3,698,728	15,669,700	12,294,591	20,224,855	-	36,218,174
Operation of Cartagena Airport (*)
Aeropuertos Mexicanos del Pacífico, S.A. de CV (AMP)	Thousands of MXN
Mexico City Operator of 12 airports in Mexico (*)		33.33% 1,484,705	1,917,193	1,919,153	329,277	237,713	3,970,848
Aerocali, S.A.					Thousands of COP
Alfonso Bonilla Aragón International Airport (Cali, Colombia)		50.00% 3,800,000	72,110,816	48,942,977	10,951,801	-	63,694,778
Operation of Cali Airport (*)

(*) Data obtained from the annual accounts at 31 December 2022.

The equity of the investee Companies in Colombia and Mexico includes the inflation adjustments item, following the rules established for this purpose in the respective country.

On 25 September 2020, the concession for Rafael Núñez International Airport in the city of Cartagena de Indias, managed by Sociedad Aeroportuaria de la Costa S.A., came to an end. The contract has subsequently been extended on several occasions as a result of agreements reached with the Colombian National Infrastructure Agency (ANI). The last signed extension is until 29 February 2024, when the concession will definitely end.

As of 31 December 2023, ADI has received dividends from Aerocali to the amount of €5,599 thousand (2022: €1,945 thousand) and from AMP to the amount of €25,035 thousand (2022: €21,811 thousand). SACSA has not distributed dividends in 2023 (2022: €1,820 thousand).

As of 31 December 2023, ADI has performed an impairment test to determine the recoverability of the amount of its interests in associates and joint control, no impairment is required to be recorded in any case.

11.3.1 Aerocali

On 29 May 2014, subsidiary company Aena Desarrollo Internacional S.M.E., S.A. purchased 63,335 additional ordinary shares in Aerocali, S.A., which amount to a 16.67% stake. With this acquisition, Aena Desarrollo Internacional S.M.E., S.A. now has a 50% stake in this company. The amount paid for this acquisition came to €2,036 thousand. According to the analysis carried out by the management of Aena Desarrollo Internacional S.M.E., S.A., with this acquisition, there would be no control over the investee, since there is joint control. Therefore, on 31 December 2023 and 31 December 2022, it continues to be recorded in the consolidated annual accounts using the equity method with changes in the invested percentage from the acquisition of the new shares.

On 1 September 2020, the concession of the Alfonso Bonilla Aragón International Airport, Cali, managed by the Company Aerocali S.A., expired. The contract was extended for a further six months. With the situation caused by COVID-19, in March 2021, Aerocali reached an agreement with the National Infrastructure Agency (ANI) of Colombia by which the compensation mechanisms are agreed and it was determined that the maximum compensation extension period is July 2022. On 22 November 2021, an extension of the concession contract was signed until 31 December 2022, and subsequently, on 15 November 2022, it was extended until 31 October 2023. On 31 October 2023, it was extended until 30 April 2024.

11.3.2 Aeropuertos Mexicanos del Pacífico (AMP)

On 24 February 2006, Grupo Aeroportuario del Pacífico, S.A. (a company in which AMP has invested) was listed on the Mexican and New York stock markets through an IPO carried out by the Mexican Government (former owner of the

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

remaining 85% of the share capital). In addition, Aeropuertos Mexicanos del Pacífico acquired 2.296% of Grupo Aeroportuario del Pacífico, S.A. on the stock exchange for MXN 286,297,895, increasing its stake to 17.296% of its capital. In May 2008, 640,000 shares were acquired on the stock exchange for an amount of MXN 26,229,376, increasing from 0.11396% to 17.40996% of Grupo Aeroportuario del Pacífico, S.A. On 19 December 2019, in compliance with the board determination, AMP sold 250,000 series B shares representing 1.85% of the 2.41% held in these shares, and therefore having sold 0.04% and maintaining 17.4% (17.36996% vs. 17.40996%) of GAP with a profit of MXN 29.6 million.

On 27 April 2021, at the Extraordinary General Shareholders' Meeting of GAP, the cancellation of 35,424,453 shares in treasury was approved, which increases the stake of AMP in GAP, reaching 18.5359%, when the Mexican National Banking and Securities Commission (CNBV [Comisión Nacional Bancaria y de Valores]) formalises the cancellation of GAP shares in the first quarter of 2022.

Additionally, the Shareholders' Meeting of GAP, at a meeting held on 22 April 2022, approved the cancellation of 13,273,970 shares acquired by the company itself, which represents an increase in AMP's stake in GAP from 18.54% to 19.02%, once the cancellation is formalised by the CNBV.

The Shareholders' Meeting of the company Grupo Aeroportuario del Pacífico, SAB de CV (GAP), at a meeting held on 13 April 2023, approved the cancellation of 7,024,113 shares acquired by the company itself, resulting in an increase in the share percentage of AMP in GAP from the 19.02% to 19.28% after the cancellation, which is pending the formal cancellation by the National Banking and Securities Commission of Mexico.

11.4 Other stakes

On 4 February 2022, Aena purchased shares in the trade company INFRA GRANADILLA 2, S.L., reaching a stake of 13.76%. The book value of said share at 31 December 2023 amounts to €57 thousand and €26 thousand at 31 December 2022. The increase in the value of the stake is due to the contribution made in February 2023.

The amounts of capital, equity, results and book value related to other stakes at the end of fiscal years 2023 and 2022, expressed in thousands of euros, are as follows:

	31 December 2023
			Share	Profit/(Loss)
Name/Address/Activity	Fraction of the Direct Capital (%)		capital	Operation	Net	Reserves	Other equity	Total equity	Book value
INFRA GRANADILLA 2 S.L.	13.76	%	3	(215)	(215)	-	393	181	57
C/ Rioja No. 25 Seville
Production, sale, storage and marketing of renewable electricity and thermal energy, as well as the exploitation and development of projects related to renewable energy: wind, photovoltaic and any other type.
Total									57

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	31 December 2022
				Profit/(Loss)
Name/Address/Activity	Fraction of the Direct Capital (%)		Share capital	Operation	Net	Reserves	Other equity	Total equity	Book value
INFRA GRANADILLA 2 S.L.	13.76	%	3	(15)	(15)	-	188	176	26
C/ Rioja No. 25 Seville
Production, sale, storage and marketing of renewable electricity and thermal energy, as well as the exploitation and development of projects related to renewable energy: wind, photovoltaic and any other type.
Total									26

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

12.Transactions and balances with related parties

The breakdown of the debit and credit balances maintained with group and related companies at the end of the fiscal years 2023 and 2022 is the following:

Fiscal year 2023

	Short term payables	Long-term loans	Short term loans	Short-term loans (Taxes)	Other short-term financial assets	Long-term debts	Other non current liabilities (sureties)	Long-term accruals	Short term debts	Short-term debts (taxes)	Other short term liabilities (sureties)	Short-term accruals	Fixed asset suppliers	Customer advances	Receivables
Note	13					15	10		15	15	10		15	16	16
Parent company:
ENAIRE	90	-	-	-	-	(2,345,453)	(553)		- (776,333)	-	-	-	-	-	(10,417)
Transactions with group and associated companies:
Aena Desarrollo Internacional S.M.E., S.A. (ADI)	10	1,016,258	14,841	13,322	-	-	-		- -	(10,011)	-	-	-	-	-
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E. (AIRM)	1,618	5,500	1,503	-	1,838	-	-		- -	(849)	-	-	-	-	-
Aeroportos do Nordeste do Brasil, S.A. (ANB)	5,201	-	-	-	-	-	-	(2,323)	-	-	-	(774)	-	-	-
Bloco de Onze Aeroportos do Brasil S.A.(BOAB)	7,489	-	-	-	-	-	-	(1,892)	-	-	-	(631)	-	-	-
Transactions with related parties:
Servicios y Estudios para la Navegación Aérea y la Seguridad Aeronáutica, S.A.U. (SENASA)	-	-	-	-	-	-	-		- -	-	-	-	-	-	-
State Meteorological Agency (AEMET)	-	-	-	-	-	-	-		- -	-	-	-	-	-	(1,241)
Ingeniería de Sistemas para la Defensa de España, S.A. (ISDEFE)	-	-	-	-	-	-	-		- -	-	-	-	(869)	-	(263)
Ingeniería y Economía del Transporte, S.A. (INECO)	-	-	-	-	-	-	-		- -	-	-	-	(623)	-	(623)
Other related parties	1,065	-	-	-	-	-	(210)		- -	-	(27)	-	(2,306)	(1)	(1,186)
	15,473	1,021,758	16,344	13,322	1,838	(2,345,453)	(763)	(4,215)	(776,333)	(10,860)	(27)	(1,405)	(3,798)	(1)	(13,730)

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Fiscal year 2022

	Short-term payables	Long-term payables	Long-term loans	Other short-term financial assets	Long-term debts	Other non current liabilities (sureties)	Short-term debts	Short-term debts (taxes)	Other short-term liabilities (sureties)	Fixed asset suppliers	Customer advances	Receivable s
Note	13				15	10	15	15	10	15	16	16
Parent company:
ENAIRE	81	-	-	-	(3,110,718)	(553)	(525,286)	-	-	-	-	(22,732)
Transactions with group and associated companies:
Aena Desarrollo Internacional S.M.E., S.A. (ADI)	85	-	374,934	-	-	-	-	(10,004)	-	-	-	-
Aena, Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E. (AIRM)	200	-	3,000	1,727	-	-	-	(429)	-	(2)	-	-
Aeroportos do Nordeste do Brasil, S.A. (ANB)	-	1,567	-	-	-	-	-	-	-	-	-	-
Transactions with related parties:
Servicios y Estudios para la Navegación Aérea y la Seguridad Aeronáutica, S.A.U. (SENASA)	32	-	-	-	-	-	-	-	-	-	-	-
State Meteorological Agency (AEMET)	6	-	-	-	-	-	-	-	-	-	-	(1,220)
Ingeniería de Sistemas para la Defensa de España, S.A. (ISDEFE)	-	-	-	-	-	-	-	-	-	(289)	-	(183)
Ingeniería y Economía del Transporte, S.A. (INECO)	-	-	-	-	-	-	-	-	-	(543)	-	(440)
Other related parties	2,530	-	-	-	-	(192)	-	-	(26)	(2,186)	(3)	(980)
	2,934	1,567	377,934	1,727	(3,110,718)	(745)	(525,286)	(10,433)	(26)	(3,020)	(3)	(25,555)

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The breakdown of transactions made with group and related companies during the fiscal year 2023 is as follows (in thousands of euros):

		Notes		ENAIRE (Public Entity)	ADI	AIRM	BOAB	ANB	SENASA	AEMET ISDEFE		INECO	Other related parties
Revenue from services rendered				(662)	(289)	(980)	(4,966)	(537)	(13)	-	(3)	(1)	(5,016)
Services received				51	-	-	-	-	9	-	1,215	2,772	2,839
Supplies: Works performed by other companies	23.2			121,223	-	-	-	-	-	12,205	-	-	-
Acquisitions of fixed assets	6	7	8	35	-	-	-	-	-	-	2,898	938	9,579
Voluntary reserves				53	-	-	-	-	-	-	-	-	-
Other profit/(loss) – net				-	-	-	-	-	-	-	-	-	-
Finance (revenue)/ expenses	23.6			93,560	(43,311)	(40)	-	-	-	-	-	-	-

The breakdown of transactions made with group and related companies during the fiscal year 2022 is as follows (in thousands of euros):

	Notes		ENAIRE (Public Entity)	ADI	AIRM	ANB	SENASA	AEMET	ISDEFE	INECO	Other related parties
Revenue from services rendered			(933)	(476)	(980)	(669)	(34)	-	-	(5)	(4,631)
Services received			35	-	-	-	10	-	1,084	2,004	1,633
Supplies: Works performed by other companies	23.1		123,060	124	-	-	-	11,994	-	-	45
Acquisitions of fixed assets	6	7 8	156	22	2	-	-	-	2,329	778	4,772
Voluntary reserves			36	-	-	-	-	-	-	-	-
Other profit/(loss) – net			-	-	(2)	-	-	-	-	-	-
Finance (revenue)/ expenses	23.6		37,047	(4,841)	-	-	-	-	-	-	-

All related-party transactions are conducted at market values. Additionally, the transfer prices are properly supported, thus the Company directors believe that there are no significant risks in this respect that could arise from any liabilities that may exist in the future.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

12.1 Main contracts

Listed below are the agreements drawn up by the Company with its majority shareholder, state-owned enterprise 'ENAIRE', and the other group and related companies for the fiscal years 2023 and 2022:

12.1.1 ENAIRE

On 20 December 2016, the Board of Directors of Aena S.M.E., S.A. approved the ATM (Air Traffic Management) and CNS (Communication, Navigation, Surveillance) agreement, 'Agreement to provide air navigation services between ENAIRE and Aena', which was also approved by the Board of Directors of ENAIRE on 23 December 2016. This agreement extends through the 2017–21 period for a total amount of €662,367 thousand. Upon its expiration, a new agreement was signed, which entered into force on 1 January 2022 and ends on 31 December 2026.

On 31 December 2021, Aena signed a 5-year contract with ENAIRE for the provision of the in-flight verification service.

On 31 October 2017, Aena and ENAIRE signed a service provision agreement for the car parks of the Aena network, for the free use of the car park 15 days a year for ENAIRE employees. As a result of this agreement, the economic benefits between the parties during 2023 amounted to €140 thousand (2022: €95 thousand), recorded at market value, although the amount paid by ENAIRE amounted to €35 thousand (2022: €24 thousand).

12.1.2 Aena Desarrollo Internacional S.M.E., S.A.

On 28 July 1999, Aena Desarrollo Internacional and Aena signed a Framework Collaboration Agreement, whose purpose is to provide the collaboration necessary between both parties to carry out development and management projects for airport infrastructures.

On 1 October 2014 and with effect from 1 April 2012, Aena signed a contract with the subsidiary Aena Desarrollo Internacional S.M.E., S.A. for a period of 3 years and annual extensions unless expressly notified otherwise, in which the latter provided Aena with in-flight verification services, using its own aircraft and equipment. For the operation of the aircraft, ADI used a service order signed with the state-owned trading company Servicios y Estudios para la Navegación Aérea y la Seguridad Aeronáutica (SENASA). When the agreement with SENASA was not renewed, Aena tendered the contract for the in-flight verification services by means of an open procedure, including as part of the subject matter of the file, the necessary acquisition from ADI, by the successful bidder, of the aircraft with which the service is provided. The purchase price was set at €1,425 thousand, corresponding to the valuation carried out by an expert appraiser, and ENAIRE was awarded the contract as the lowest bidder. The benefit to ADI from this operation was €922 thousand. ENAIRE's purchase of the aircraft from ADI took place on 30 March 2022.

On 1 December 2017, with the purpose of efficiently and appropriately implementing the Group's policies for more efficient management of the company, Aena Desarrollo Internacional, S.M.E., S.A. contracted with Aena S.M.E., S.A. the provision of certain consulting and management support services, which are outlined in the agreement signed for this purpose. The duration period of the agreement was three years with up to a maximum of four annual extensions, as long as there is agreement between the parties. The price of the services rendered would be set annually and was revised according to the volume of services rendered. In 2023, services rendered by Aena amounted to €289 thousand (2022: €472 thousand).

On 20 December 2023, effective as of 31 December 2023, it was agreed to terminate the Collaboration Framework Agreement of 28 July 1999 and the Management Support Service Provision Agreement of 1 December 2017, signing a new Management Support Service Provision Agreement effective from 1 January 2024 and with a duration of 3 years, with automatic extensions of 1 year for up to a maximum of 2 years. The Agreement details the services that they undertake to provide to each other.

On 16 March 2018, and taking effect on this day, a credit line agreement was signed between and Aena Desarrollo Internacional (crediting party) and Aena (credited party) at a maximum limit of €100 million to finance general treasury needs. The duration was 2 years and it was extended for 2 more years. Upon expiry of the extension, this credit facility was cancelled on 31 March 2022.

On 20 June 2019, and taking effect on this day, a credit line agreement was signed between Aena (crediting party) and Aena Desarrollo Internacional (credited party) for €400 million, of which €30 million were reimbursed before 31 December 2019, to finance the treasury needs of the capital contribution of the airports in Northeast Brazil. The duration was 4 years, and could be extended for periods of 2 years up to a maximum of three extensions. This line of credit would accrue interest referenced to the 1 month Euribor, plus a 1% differential.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

For the purposes of reinforcing Aena Desarrollo Internacional's own funds, on 23 December 2021, the portion corresponding to the principal pending amortisation of the aforementioned line of credit (€370,000 thousand) was converted into an equity loan under the terms of Article 20 of Royal Decree-Law 7/1996, of 7 June, on Urgent Fiscal and Development Measures and Deregulation of Economic Activity. The principal will accrue variable interest of Euribor +100 basis points. This equity loan was cancelled on its maturity date, 23 December 2023, with the accrued interest also being settled.

On 23 December 2023, ADI was granted a new equity loan of €250,000 thousand, maturing on 15 March 2025 with 12 month extensions (up to a maximum of 3 extensions). The principal will accrue a variable interest of Euribor 12 months + +1%, provided that, on the start date of the ADI interest period, it has obtained a positive EBITDA in the last closed fiscal year.

For its part, with the incorporation of Bloco de Onze Aeroportos do Brasil S.A. (BOAB), Aena Internacional contributed a share capital of R\$1,639,249,656. Subsequently, once the concession contract was signed, BOAB made the payment of the financial offer to ANAC for the amount of R\$2,450 million, adjusted to the IPCA and financed by Aena Internacional. In order to meet these payments, the following agreements for Intragroup financing operations were signed:

• On 28 November 2022, an Intragroup Loan was signed between AENA and Aena Internacional for an amount of €307,515,981, which was paid up on 26 January 2023.
• On 20 January 2023, an Intragroup Loan was signed between AENA and Aena Internacional for an amount of €458,742,061, which was paid up on 3 February 2023.
• On 20 January 2023, an Intragroup Loan was signed between Aena Internacional and BOAB for an amount of R\$2,450,000,000, which was paid up on 6 February 2023.

12.1.3 Aena, Sociedad Concesionaria del Aeropuerto de la Región Internacional de

Murcia S.M.E., S.A.

On 25 April 2018, an agreement was signed whereby Aena, Sociedad Concesionaria del Aeropuerto de la Región Internacional de Murcia S.M.E., S.A., hired Aena S.M.E., S.A. for the provision of consulting services and assistance in the planning, organisation, coordination and management of business activity areas, for a duration of 3 years from the date of signing.

On 26 April 2021, a new Agreement was signed with a duration of 3 years extendable up to a maximum of 1 year, highlighting the following services provided by Aena:

• General Management of Airports.
• General Sales and Real Estate Management.
• Management of the Office of the Chairman, Regulation and Public Policies.
• Economic-Financial Management.
• General Secretary of the Company.
• Organisation and Human Resources Management.
• Communications Management.
• Innovation, Sustainability and Customer Experience Management.
• Internal Audit Division.

In 2023, the services rendered derived from this agreement amounted to €980 thousand (2022: €980 thousand).

In order to strengthen AIRM's equity and provide it with the financial resources to enable it to perform its activity, on 10 February 2022 Aena granted an equity loan of €3,000 thousand under the terms of article 20 of Royal Decree-Law 7/1996, of 7 June, on Urgent Tax Measures and Measures for the Promotion and Liberalisation of Economic Activity. The principal will accrue variable interest at Euribor plus a spread of 1%, provided that in any of the fiscal years up to the maturity date, AIRM obtains an EBITDA for the last 12 months ended and audited as of the Interest payment date that is higher than the variable interest accrued on the Principal.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The equity loan, which matured on 15 December 2023, has been extended for 2 years, until 15 December 2025, with the possibility of an additional extension of 2 more years remaining.

Moreover, on 10 February 2022, Aena granted a credit line of €12,000 thousand to AIRM at a variable interest rate of Euribor plus a spread of 1%. The line of credit, which matured on 15 December 2023, has been extended for 2 years, until 15 December 2025, with the possibility of an additional extension of 2 more years remaining. As at 31 December 2023, AIRM has drawn €1,500 thousand (31 December 2022: €0 thousand).

In order to continue strengthening AIRM's own funds, Aena has granted a second equity loan on 15 December 2023 for the amount of €2,500 thousand, maturing on 15 December 2025 and with the possibility of extension for an additional 2 years. The principal will accrue a variable interest of Euribor 12 months + 100 basis points, provided that, on the start date of the interest period, AIRM has obtained a positive EBITDA in the last closed fiscal year.

12.1.4 Aeroportos do Nordeste do Brasil, S.A. (ANB)

On 1 September 2020, an agreement was signed whereby Aeroportos do Nordeste do Brasil, S.A. hired Aena S.M.E., S.A. and Aena Desarrollo Internacional S.M.E., S.A. for the provision of consulting services and assistance in the planning, organisation, coordination and management of business activity areas. The agreement has a duration of 2 years from its signing with up to a maximum of 4 annual extensions of 1 year in duration each, agreeing to a suspension of billing and collection during 2022 and 2023 due to the pandemic.

In 2023, the services rendered derived from this agreement amounted to €537 thousand (2022: €592 thousand).

12.1.5 INECO

There is a cooperation agreement with Ingeniería y Economía del Transporte, S.A. (INECO) to draw up and revise projects, supervise construction and provide technical monitoring assistance, engineering for certification, maintenance and operation of facilities and airport processes, planning, airport and environmental development, commercial airport development and logistics designs and studies in terminal buildings to improve operating efficiency and reduce costs even further. Its addendum of actions is renewed every year.

12.1.6 ISDEFE

Related company ISDEFE has been providing Aena with a series of services, which fall within the activities of its corporate purpose, among which are the following activities in accordance with the agreement signed in December 2016, and which replaced the one previously in force dated 8 November 2013, whose addendum of actions is being renewed on an annual basis:

• General coordination of Information and Communication Technologies, henceforth ICT.
• Definition of ICT systems and infrastructures.
• Lifecycle management of software.
• Office management of ICT projects.
• IT applications and infrastructure quality and tests.
• Integration of systems and support for operations.

12.1.7. AEMET

The State Meteorological Agency (AEMET), in its capacity as the meteorological authority of the state and as the supplier of certificate services, is the sole officially designated organisation in Spain to provide meteorological services for aeronautical activities. In order for more suppliers of this service to be designated, regulations must previously be developed. AEMET also provides meteorological services to the rest of Spanish airports that are not managed by AENA S.M.E., S.A.

Additionally, AEMET is the owner of facilities and basic equipment to manage the meteorological services for air navigation.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

As a result of the need for these services, Aena and AEMET signed an Agreement regulating this rendering of services covering the period from 30 December 2014 to 29 December 2016, signing a new contract with entry into force on 30 December 2016 for a period of one year, counted from the previous date. It is extendable by mutual agreement of the parties year by year, up to a maximum of two additional years, and has been renewed for the 2020–24 period for a total amount of €60.2 million.

Aena, since 2014, has paid for the services provided by AEMET at an initial payment of €7,500 thousand for the March– November period of 2014. Monthly payments of €833 thousand have been paid since then until June 2020, the date from which the monthly payment increases to €953 thousand. As of July 2021, the monthly figure amounted to €991 thousand, reaching the amount of €1,008 thousand from July 2022 to July 2023, a date on which it becomes €1,026 thousand.

13.Trade and other receivables

The balance of the heading 'Trade and other receivables' of the attached balance sheet at the end of the fiscal years 2023 and 2022 is broken down as follows:

	Notes	2023	2022
Customers, rendering of services		650,191	594,052
Customers, bad debt		141,389	119,071
Less: provision for impairment		(174,219)	(148,532)
Customers, group and associated companies	12	14,408	367
Sundry debtors		1	827
Staff		1,025	783
Current tax assets	22	146,107	9,087
Other loans with Public Administrations	22	7,478	25,352
		786,380	601,007

On 5 March 2011, Act 1/2011 of 4 March, which amends Act 21/2003 of 7 July, on Air Security, was published in the Spanish Official State Gazette. This act allowed AENA S.M.E., S.A. or its subsidiaries to use debt collection proceedings in order to manage, liquidate and collect payment of all outstanding airport charges, with this being managed by the collection bodies of the State Tax Administration Agency.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

13.1 Concentration of credit risk

A significant part of the balances included under the heading 'Customers, rendering of services', approximately 51%, belong to the following companies:

	Thousands of euros		Thousands of euros
	2023		2022
World Duty Free (DUFRY)	153,472	World Duty Free (DUFRY)	173,626
Áreas, S.A.	64,868	Áreas, S.A.	66,262
Vueling Airlines	64,008	Vueling Airlines	54,054
Iberia, Líneas Aéreas de España, S.A.	28,193	Iberia, Líneas Aéreas de España, S.A.	32,824
Pansfood S.A.	20,348	Select Service Partner, S.A.	20,749
All other customers	319,302	All other customers	246,537
	650,191		594,052

13.2 Value impairment corrections arising from credit risk

The Company has analysed all exposure to credit risk individually. The result of this analysis at the end of the fiscal year shows that credit risk is almost entirely attenuated, by 87.23% (2022: 82.37%), thanks to the credit guarantees and improvements the Company has at its disposal.

In cases in which an impairment loss is considered to have been incurred, the impairment has been estimated based on the best available information with respect to the recoverable amount.

The activity of the provisions account for commercial operations during the fiscal years 2023 and 2022 has been the following:

	Thousands of euros
	2023	2022
Opening balance	148,532	136,903
Allowance for impairment due to commercial operations	38,445	21,724
Reversal of impairment due to commercial operations	(12,758)	(2,674)
Other movements	-	(7,421)
Closing balance	174,219	148,532

In addition to the variation of €25,687 thousand (2022: €19,050 thousand) in the provision for impairment from commercial operations, during the fiscal year 2023, losses amounting to €16 thousand (2022: €200 thousand) have been recorded under the heading 'Losses, impairment and change in provisions for operations' of the profit and loss account, due to definitive derecognitions carried out by the Spanish Tax Agency of debts sent to legal proceedings for collection.

13.3 Credit modifications or restructurings

Considering the current extraordinary circumstances that are the result of the fall in air traffic derived from the pandemic, the Company has deferred the invoices for Aeronautical and Handling Agent customers. All deferments were paid within the established deadlines without incident.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

During the fiscal year, the Company has collected financial assets convertible into cash as a result of enforcing bonds and bank guarantees that guaranteed collection for a book value of €10,042 thousand. (2022: €7,977 thousand)

13.4 Other information

At 31 December 2023 and 2022, there are no balances to be collected in a currency other than the euro.

14. Short-term financial investments

The balance of the accounts under the heading 'Short-term financial investments' at the end of the fiscal years 2023 and 2022 is as follows:

	Notes	Thousands of euros
		2023	2022
Loans to companies		150	53
Derivatives	Note 15.5	31,704	31,514
Short-term guarantees and deposits		27,603	4,272
		59,457	35,839

15. Financial debt

The Company's loans and credits are formalised at 75% at fixed interest rates, and the remaining percentage is formalised at variable rates generally referenced to the Euribor (2022: 80% at fixed interest rates and the remaining percentage formalised at variable rates generally referenced to the Euribor). The average rate of this debt during 2023 was 2.23% (2022: 1.04%).

15.1 Debts with group and associated companies

Due to the non-monetary contribution described in Note 1, the Company and its sole shareholder at that time signed a debt acknowledgement contract on 1 July 2011 whereby the debts, corresponding to the branch of activity contributed in the capital increase, were transferred from the public business entity 'Aeropuertos Españoles y Navegación Aérea' to the Company AENA S.M.E., S.A. In this agreement between both parties, the initial debt and the future cancellation conditions of this debt were recognised, as well as the procedure to settle the interest and repayment of the debt. It was also specified that the ownership with respect to the lending financial institutions corresponded to the public business entity 'Aeropuertos Españoles y Navegación Aérea', even though it was acknowledged that AENA S.M.E., S.A. assumed a debt of €11,672,857 thousand, equivalent to 94.90% of the outstanding balance of the debt with the financial institutions deriving from the financing agreements. The average rate of this debt during 2023 was 1.74% (2022: 1.40%).

Subsequently, in the Council of Ministers' meeting of 11 July 2014, the state-owned enterprise 'Aeropuertos Españoles y Navegación Aérea' was authorised to initiate the sale process for the share capital of AENA S.M.E., S.A. and to dispose up to 49% of its capital.

On 29 July 2014, in the context of offering the Company's share capital to private investors, and in order to ensure that the process was compatible with the financing agreements and the hedging agreements signed with all the financial institutions, the state-owned enterprise 'ENAIRE', AENA S.M.E., S.A. and the respective financial institutions agreed to a novation amending, but not extinguishing, the corresponding financial agreements.

By virtue of this novation, the Parties agreed to modify certain aspects of the debt acknowledgement contract with purely substitutive and in no way extinguishing effects. The main clauses that were amended are summarised below:

• The discounted amount of recognised indebtedness.
• The joint capacity of the lenders, the state-owned enterprise 'ENAIRE' and AENA S.M.E., S.A., which are jointly and severally obligated to each other before the bank. This relates to the obligation to repay the loan amount

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

drawn down by either party and to pay the interest, commissions, costs, expenses and any other amount payable by either of them directly to the bank pursuant to the contracts. The banks expressly recognise that the payment effectively received for any item by any of the lenders in accordance with the contractual stipulations will have full release effects for that item and amount.

• The elimination of the clauses that imposed limitations on the transfer of AENA S.M.E., S.A. shares and the sale of a share percentage greater than 49%.
• The obligation to comply with certain financial covenants based on the Aena Group consolidated annual accounts, which shall be by the delivery of a certificate accrediting compliance with these ratios on a semiannual and annual basis, with the following limits:

Ratio	2023	2024	2025 and thereafter
Net financial debt/ EBITDA Less than or equal to:	7.00x	7.00x	7.00x
EBITDA/Finance expenses Greater than or equal to:	3.00x	3.00x	3.00x

At the end of the current fiscal year, the Company complies with the aforementioned ratios.

In the debt novation process, the parties expressly agreed that, notwithstanding their status as co-debtors and their joint liability for complying with the obligations provided in the financing agreements, the payments that must be made for any item based on these financing agreements shall be made by the state-owned enterprise 'ENAIRE'. This accordingly maintains the contractual relationship between AENA S.M.E., S.A. and the state-owned enterprise 'ENAIRE' through the debt acknowledgement agreement.

Notwithstanding the joint liability and principal that AENA S.M.E., S.A. and the state-owned enterprise 'ENAIRE' accept with the financial institutions under the financing agreements, the payments made by AENA S.M.E., S.A. will proportionally lower its payment obligations to the state-owned enterprise 'ENAIRE' that arise from the earlier contribution.

In any event, the failure of AENA S.M.E., S.A. to pay its obligations arising from the debt acknowledgement agreement will not release the state-owned enterprise 'ENAIRE' from fulfilling its payment commitments by virtue of the provisions in the financing agreements.

These novations did not alter the financial terms of the loan transactions granted at the time to the state-owned enterprise 'ENAIRE', nor those outlined in the mirror loans signed with AENA S.M.E., S.A. (among others: principal amortisation, maturity dates, interest rate regime, repayment terms, etc.).

For all these reasons, the amendments agreed to in the financing agreements with banks and the state-owned enterprise 'ENAIRE' did not change the accounting treatment of the Company's financial debt with the ultimate parent company, the state-owned enterprise 'ENAIRE'.

The breakdown of the 'Financial debt where the Company acts as joint creditor with ENAIRE' (hereinafter referred to as 'Co-borrower debt') with financial institutions on 31 December 2023 is the following (in thousands of euros):

Financial institutions	Amount
Institution 1	1,874,445
Institution 2	914,100
Institution 3	316,333
TOTAL Co-borrower	3,104,878

Of the €3,104,879 thousand shown in the table above, AENA S.M.E., S.A. owes the state-owned enterprise 'ENAIRE' as of 31 December 2023 a total of €3,090,343 thousand (2022: €3,600,936 thousand), which corresponds to the debt derived from the contribution of airport activity after the spin-off (note 1). In addition to this amount, AENA S.M.E., S.A. owes the state-owned entity 'ENAIRE' in relation to other loans of €21,969 thousand (2022: €25,740 thousand).

Regarding the causes for declaring early maturity, AENA, as the holder of the financing agreements, has not breached any of the conditions on early maturity, so this does not affect the Company's balance sheet at 31 December 2023 and 31 December 2022.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The repayment schedule for the principal of the short and long-term debt with ENAIRE for financing airports (Note 10) at the end of the fiscal years 2023 and 2022 is as follows:

Repayments Maturity	Thousands of euros 2023 (*)
2024 2025	765,707 396,710
2026	376,402
2027	345,492
2028	318,887
Subsequent	909,114
Total	3,112,312

Repayments	Thousands of euros
Maturity	2022 (*)
2023	514,364
2024	765,707
2025	396,710
2026	376,402
2027	345,492
Subsequent	1,228,001
Total	3,626,676

(*) The instalments shown in the details of the repayment schedule do not include the amount of commissions for both the fiscal year 2023 and 2022.

The breakdown of the 'Long-term debts with group and associated companies' and 'Short-term debts with group and associated companies' headings of the balance sheet liabilities as of 31 December 2023 and 2022 is shown below:

			Thousands of euros
		Note		2023		2022
Debts with group associated companies	and	12	Long-term	Short-term	Total	Long-term	Short-term	Total
Debts with ENAIRE			2,346,605	765,707	3,112,312	3,112,312	514,364	3,626,676
Real cost adjustment			(1,152)	(231)	(1,383)	(1,594)	(231)	(1,825)
Interest accrued			-	10,857	10,857	-	11,153	11,153
Debt due to tax effect			-	10,860	10,860	-	10,433	10,433
Fixed asset supplier			-	-	-	-	2	2
Total			2,345,453	787,193	3,132,646	3,110,718	535,721	3,646,439

As of 31 December 2023 and 2022, long and short-term debts are denominated in euros.

The variations in the balance of the loan from ENAIRE, which occurred in the fiscal year 2023, primarily relate to the principal amortisation of €514,364 thousand, as previously indicated.

The reconciliation between the opening and closing balances of the Financial debt with ENAIRE component of the balance sheet is as follows:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

			Cash flows
	31 Decemb er 2022	Financing activities Collections	Financing activities Payments	Operating activities Interest payments	Transfers from short to long term	Accrual of interest and commission fees	31 Decemb er 2023
Non-current
Loan to AENA S.M.E., S.A. from ENAIRE	3,112,312	-	-	-	(765,707)	-	2,346,605
Adjustment of the loan balance from ENAIRE using the real cost criteria	(1,594)	-	-	-	442	-	(1,152)
Subtotal AENA S.M.E., S.A. long term debt with ENAIRE	3,110,718	-	-	-	(765,265)	-	2,345,453
Current
Loan from ENAIRE	514,364	-	(514,364)	-	765,707	-	765,707
Adjustment of the loan balance from ENAIRE using the real cost criteria	(231)	-	-	-	(442)	442	(231)
Interest accrued on loans from ENAIRE	11,153	-	-	(93,415)	-	93,119	10,857
Subtotal of AENA S.M.E., S.A. short term debt with ENAIRE	525,286	-	(514,364)	(93,415)	765,265	93,561	776,333
Total	3,636,004	-	(514,364)	(93,415)	-	93,561	3,121,786

The changes in the balance of the loan from ENAIRE, which took place during the fiscal year 2022, primarily correspond to the repayment of the principal for the amount of €514,364 thousand. The reconciliation between the opening and closing balances of the components of Financial debt with the parent company on the balance sheet is as follows:

		Cash flows
	31 Decemb er 2021	Financing activities Collections	Financing activities Payments	Operating activities Interest payments	Transfers from short to long term	Accrued interest	31 Decemb er 2022
Non-current
Loan to AENA S.M.E., S.A. from ENAIRE	3,626,676	-	-	-	(514,364)	-	3,112,312
Adjustment of the loan balance from ENAIRE using the real cost criteria	(2,078)	-	-	-	484	-	(1,594)
Subtotal AENA S.M.E., S.A. long term debt with ENAIRE	3,624,598	-	-	-	(513,880)	-	3,110,718
Current
Loan from ENAIRE	535,836	-	(535,836)	-	514,364	-	514,364
Adjustment of the loan balance from ENAIRE using the real cost criteria	(272)	-	-	-	(484)	525	(231)
Interest accrued on loans from ENAIRE	10,129	-	-	(35,498)	-	36,522	11,153
Subtotal of AENA S.M.E., S.A. short term debt with ENAIRE	545,693	-	(535,836)	(35,498)	513,880	37,047	525,286
Total	4,170,291	-	(535,836)	(35,498)	-	37,047	3,636,004

The book values and fair values of non-current debts with ENAIRE are as follows:

	Note	Book value		Fair value
		31 December		31 December
		2023	2022	2023	2022
Debt with ENAIRE		2,345,453	3,110,718	2,276,355	2,945,693
Total	12	2,345,453	3,110,718	2,276,355	2,945,693

The fair value of current external resources does not differ significantly from their book value, as the impact of applying the discount is not significant. Fair values for debt with a term greater than one year are based on cash flows discounted at risk-free rates (OIS curve) plus a spread equal to the 5-year Aena CDS modelled by Bloomberg (74 bps) (2022: at riskfree rates (OIS curve) plus a spread equal to the 5-year Aena CDS modelled by Bloomberg (106 bps)).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

15.2 Debts with credit institutions

The breakdown of debts with credit institutions or at the close of the current and previous fiscal year is as follows:

Financial		Balance as at 31/12/2023			Balance as at 31/12/2022
institution	Non-current	Current	Total	Average Rate	Non-current	Current	Total	Average Rate
Institution 1	800,000		800,000	3.04	490,000	-	490,000	0.69
Institution 2	400,000	-	400,000	3.49	400,000	-	400,000	0.63
Institution 3	170,000	60,000	230,000	0.32	230,000	20,000	250,000	0.32
Institution 4	550,000	-	550,000	1.80	300,000	-	300,000	0.65
Institution 5	300,000	-	300,000	2.40	250,000	-	250,000	0.48
Institution 6	360,000	20,000	380,000	2.06	280,000	60,000	340,000	0.44
Institution 7	200,000	-	200,000	3.91	300,000	-	300,000	0.88
Institution 8	150,000	-	150,000	0.00	150,000	-	150,000	0.00
Institution 9	-	300,000	300,000	3.21	300,000	-	300,000	0.85
Institution 10	100,000	-	100,000	3.75	100,000	-	100,000	0.56
Institution 11	-	500,000	500,000	2.90	500,000	-	500,000	0.84
Institution 12	272	42	314	0.00	N/A	N/A	N/A	N/A
			-			-	-
TOTAL Principal	3,030,272	880,042	3,910,314		3,300,000	80,000	3,380,000
Adjustment for real cost criteria	(1,061)	(5,003)	(6,064)		(1,952)	(1,066)	(3,018)
Interest accrued	-	18,461	18,461			8,548	8,548
TOTAL Debt of credit institutions	3,029,211	893,500	3,922,711	2.55	3,298,048	87,482	3,385,530	0.63

As of 31 December 2023, the amount of commissions associated with these loans, which are accounted for at their lower value and pending allocation to the results, amounts to €1,061 thousand (2022: €1,952 thousand) (see Note 10).

Of the previous amount, the balances corresponding to Institution 1, 3 and 4 are subject to the same covenants established for the loan with ENAIRE. As of 31 December 2023, the Company complies with these ratios.

As of 31 December 2023, the amounts of long-term loans with a determined or determinable maturity, classified by year of maturity, are as follows:

	2025	2026	2027	2028	2029 and subsequent	Total
Institution 1	-	26,666	26,667	26,667	720,000	800,000
Institution 2	400,000	-	-	-	-	400,000
Institution 3	110,000	60,000	-	-	-	170,000
Institution 4	-	-	-	-	550,000	550,000
Institution 5	-	-	300,000	-	-	300,000
Institution 6	120,000	20,000	220,000	-	-	360,000
Institution 7	-	200,000	-	-	-	200,000
Institution 8	150,000					150,000
Institution 9		100,000				100,000
Institution 10	42	42	42	42	104	272
Institution 11						-
TOTAL	780,042	406,708	546,709	26,709	1,270,104	3,030,272

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

During fiscal year 2023, the Company has amortised two bilateral loans of €100 million and €250 million and has contracted a new loan of €300 million, which has meant an extension of the maturity periods.

During 2023, Aena has drawn down €960 million corresponding to bilateral loans, including €300 million refinanced.

In February 2023, Aena had drawn down the full amount of one of the credit facilities for €650 million. On 26 June 2023, this amount was repaid.

Financing available

The summary of available (unused) financing excluding the ECP Programme is as follows:

Organisation	Amount (Millions of euros)	Maturity
EIB	460	Maximum 20 years since disbursement
EIB	95	Maximum 20 years since disbursement
Syndicated line of credit	2,000	29 June 2028 + 2 extensions of 1 year
Total	2,555

The breakdown of the Aena S.M.E., S.A. loans by applicable interest rate and annual average interest rate on 31 December 2023 and 31 December 2022, taking into account the hedging resulting from the contracted interest rate swaps is as follows:

Thousands of euros	31 December 2023		31 December 2022
	Balance	Average rate	Balance	Average rate
Variable	1,879,477	3.64	1,410,750	0.43
Permanent	5,143,148	1.71	5,595,926	1.26
TOTAL	7,022,625	2.17	7,006,676	1.04

Commitments to meet covenants

Aena S.M.E., S.A. has taken out loans for a total outstanding amount, as of 31 December 2023, of €4,692 million (31 December 2022: €4,681 million), which include the obligation to meet the following covenants of financial ratios:

Ratio	2023	2024	2025 and thereafter
Net financial debt/EBITDA
Less than or equal to: EBITDA/Finance expenses	7.00x	7.00x	7.00x
Greater than or equal to:	3.00x	3.00x	3.00x

At the end of the current fiscal year, the Company complies with the aforementioned ratios.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

15.3 Credit facilities

On 29 June 2023, Aena formalised a sustainable syndicated line of credit (Sustainability-Linked RCF) for €2,000 million, which reinforces its commitment to the environment, social responsibility and good corporate governance. The operation has been underwritten by 14 national and international financial institutions and has been led by Banco Santander as coordinator and sustainable agent and Banco Sabadell as coordinator and administrative agent. The breakdown of institutions is shown below:

BANKING INSTITUTION	AMOUNT (thousands of euros)
Institution 1	212,500
Institution 2	212,500
Institution 3	200,000
Institution 4	100,000
Institution 5	100,000
Institution 6	200,000
Institution 7	100,000
Institution 8	100,000
Institution 9	75,000
Institution 10	200,000
Institution 11	100,000
Institution 12	100,000
Institution 13	200,000
Institution 14	100,000
TOTAL	2,000,000

This line expires in June 2028. There is no drawn balance as of 31 December 2023 or 2022. The interest rate is variable, with an initial spread over the Euribor at 1/3/6 months.

The initial spread is reviewed annually based on the following two variables:

• Moody's and/or Fitch's credit assessment of AENA.
• The performance of Aena's sustainability parameters in environmental, social and good governance issues (ESG 'Environmental, Social and Governance' rating) assessed by the ESG-rating provider selected by Aena (Sustainalytics), is such that if certain CO2 emission reduction and offset targets are met or not, the resulting applicable margin will be reduced by 0.025% in the first case and will increase in the second.

With this operation, the company extends the term of its financing for general corporate needs up to five years (with the possibility of extension for an additional two years) with optimal economic conditions.

As of 31 December 2023, this new line of credit has not been drawn down.

For its part, as a result of the contracting of the aforementioned line of credit, on 29 June 2023, the company cancelled the existing lines of credit at the end of 2022 and whose amount totalled €1,450 million (with maturities in 2024 and 2025).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

15.4 Marketable securities

On 13 October 2023, Aena made its first bond issuance in the fixed income market for an amount of €500 million, maturing in October 2030. The transaction closed with a 4.25% coupon. The effective financial cost is 4.314% per year.

The breakdown of the amount recorded in the accompanying consolidated statement of financial position as of 31 December 2023 is as follows:

	31 December
thousands of euros	2023
Non-current
Obligations and bonds issued	500,000
Adjustment of the balance using the effective cost criteria	(3,462)
Long-term debt subtotal	496,538
Current
Obligations and bonds issued	-
Adjustment of the balance using the effective cost criteria	(58)
Interest accrued by obligations	4,570
Short-term debt subtotal	4,512
	501,050

The Company will allocate the funds to general corporate needs.

The issuance was made under the Euro Medium-Term Note (EMTN) programme that the Company registered with the National Securities Market Commission (CNMV) on 27 July 2023 and which, during its term of validity, allows for the issuance of bonds up to the amount of €3,000 million.

Rating agencies Fitch and Moody's have assigned the issuance an 'A-' and 'A3' rating respectively. These ratings are in line with Long-Term Issuer Default Ratings assigned by AENA S.M.E., S.A.

The Company will continue to use the above-mentioned schedule for the issuance of debt that may be required.

Additionally, on 30 October 2019, the parent Company registered a Promissory Note Programme (Euro Commercial Paper) with the CNMV, with a maximum balance of €900,000 thousand in the BME Fixed Income Market. With this new instrument, Aena can flexibly place promissory notes with minimum unit nominal amounts of €500 thousand and maturities between 3 and 364 days. This programme expired on 30 October 2020, and since then, new promissory note programmes (ECP) have been recorded with annual maturities. With regard to the current and previous fiscal year, the registered programmes are as follows:

• On 21 December 2022, AENA S.M.E., S.A. published a new Promissory Note Programme (Euro Commercial Paper) under the new Securities Market Act 5/2021, approved on 12 April 2021. The programme was admitted for trading and listing for a maximum amount of €900,000 thousand for the AIAF fixed income market (integrated into the BME group) and under the same conditions as the previous Programme. The maturity of this programme was one year.
• On 18 December 2023, AENA S.M.E., S.A. published a new Promissory Note Programme (Euro Commercial Paper) under Act 6/2023 on Securities Markets and Investment Services, of 17 March 2023. The programme has been admitted for trading and listing for a maximum amount of €900,000 thousand for the AIAF fixed income market (integrated into the BME group) and under the same conditions as the previous Programmes (2019-2022). With this instrument, Aena can flexibly place promissory notes with minimum unit nominal amounts of €500 thousand and maturities between 3 and 364 days.

During 2023 and 2022, Aena did not issue paper under these new programmes, and all of it was available at the close of the fiscal year.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

15.5 Fair value of debts with credit institutions and marketable securities

The book values and fair values corresponding to debts with credit institutions and non-current marketable securities are shown below:

	Note	Book value		Fair value
		31 December		31 December
		2023	2022	2023	2022
Debts with credit institutions	15.2	3,029,211	3,298,048	3,007,445	3,126,789
Marketable Securities	15.4	496,538	-	532,175	0
Total		3,525,749	3,298,048	3,539,620	3,126,789

For debts with credit institutions, the fair value of current external resources does not differ significantly from their book value, as the impact of applying the discount is not significant. Fair values for debt with a term greater than one year are based on cash flows discounted at risk-free rates (OIS curve) plus a spread equal to the 5-year Aena CDS modelled by Bloomberg (74 bps) (2022: at risk-free rates (OIS curve) plus a spread equal to the 5-year Aena CDS modelled by Bloomberg (106 bps)). For marketable securities, the fair value has been obtained from Bloomberg.

15.6 Cash flow hedges

The breakdown of the fair value of active cash flow hedging derivative financial instruments as at 31 December 2023 and at 31 December 2022 is shown in the following table:

	31 December 2023		31 December 2022
	Assets	Liabilities	Assets	Liabilities
Interest rate swaps	51,140	-	99,184	-
Swap on Spanish electricity	-	-	-	1,162
Total	51,140	-	99,184	1,162
Current portion	31,704	-	31,514	1,162
Non-current portion	19,436	-	67,670	-

The total fair value of a hedging derivative is classified as a non-current asset or liability if the remaining validity of the hedged item is more than 12 months and as a current asset or liability if the remaining validity of the hedged item is less than 12 months.

During the periods ended 31 December 2023 and 31 December 2022, the hedging derivatives are 100% effective and meet all the requirements needed to apply hedge accounting, such that there is no ineffectiveness recorded in the profit and loss account.

Interest rate swaps

The fair value of the financial interest rate swaps has been obtained by updating the net expected cash flows during the contractual period, using the discount factors obtained from the zero-coupon curve at each valuation time. In order to calculate the variable cash flows, the forward rates or implied rates obtained from the zero-coupon interest rates existing on the market at the time of the valuation of the interest swap are used. The fair value thus obtained is adjusted for credit risk, understanding credit risk as both the counterparty credit risk and own credit risk, as necessary. In order to quantify the credit risk of a financial agent, there are three commonly accepted methodologies in the market. These methodologies are applied in the following order of priority:

– Whenever there is a Credit Default Swap (CDS) quoted on the market, the credit risk is quantified based on its share price.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

• Whenever there are debt issues accepted for listing in the different financial markets, the quantification of credit risk can be obtained as the differential between the internal rate of return (yield) of the bonds and the risk-free rate.
• If it is not possible to quantify the risk by following the two previous methodologies, the use of comparables is generally accepted, i.e. taking as a reference companies or bonds of companies from the same sector as the one being analyse.

As explained in Note 5.2.1, on 10 June 2015, Aena signed a hedging transaction from variable interest rate to fixed rate with financial institutions with a credit rating equal to or better than BBB (Standard & Poor's), in order to avoid the risk of fluctuation in interest rates on various credits, for a notional amount of €4,196 million.

Their main characteristics are as follows:

	Classificatio n	Rate	Contracted amount (thousands of euros)	Pending notional amount 31/12/2023	Pending notional amount 31/12/2022	Agreement date	Derivative start date	Maturity	Hedge designation date
Interest rate swap	Cash flow hedge	Fixed interest rate swap at 1.1735% against variable interest rate (Eur6M)	854,100	427,050	474,500	15/6/2015	15/6/2015	15/12/2026	15/6/2015
Interest rate swap	Cash flow hedge	Fixed interest rate swap at 0.9384% against variable interest rate (Eur3M)	3,041,833	1,015,202	1,194,579	15/6/2015	15/6/2015	15/12/2026	15/6/2015
		TOTAL	3,895,933	1,442,252	1,669,079

The balance recognised in the equity hedging reserve for interest rate swaps at 31 December 2023 will be transferred to the profit and loss account when the hedged items affect results as a finance expense. During the fiscal year 2023, €32,779 thousand was allocated to the profit and loss account as finance income for the settlement of interest rate hedging instruments (in 2022, a finance expense of €20,927 thousand was allocated) (Note 23.6).

Energy price derivatives

As of 31 December 2023, the Company has no hedges on the price of energy.

The breakdown of energy price derivatives that were considered as cash flow hedges for accounting purposes as of 31 December 2022 is as follows:

	Classificatio n	Rate	Amount Contracted (MWh)	Pending notional amount 31/12/2022	Agreement date	Derivative start date	Maturity	Hedge designation date
Electricity swap	Cash flow hedge	Swap on a fixed-price non-financial underlying asset	8	-	8/11/2022	1/12/2022	31/12/2022	11/8/2022
Electricity swap	Cash flow hedge	Swap on a fixed-price non-financial underlying asset	24	24	11/8/2022	1/1/2023	31/03/2023	11/8/2022

During fiscal year 2023, €2,230 thousand in operating expenses for the settlement of energy hedging instruments were allocated to the profit and loss account (nothing was allocated to the profit and loss account in 2022 for this item).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

16.Trade and other payables

The breakdown of credit balances for trade and other payables is as follows:

	Notes	Thousands of euros
Trade and other payables		2023	2022
Suppliers, group and associated companies	12	10,417	22,732
Sundry creditors		171,134	178,365
Staff		37,412	34,518
Other debts with Public Administrations	22.1	37,730	30,251
Customer advances		59,486	58,089
Total		316,179	323,955

Information on the average payment period to suppliers is as follows:

	Days
	2023	2022
Average payment period to suppliers	30	34
Ratio of paid transactions	32	35
Ratio of outstanding transactions	15	17

These parameters were calculated in accordance with Art. 5 of the Resolution dated 29 January 2016, published by the Accounting and Auditing Institute, on the information to be included in the annual accounts report in relation to the average payment period to suppliers in commercial transactions, as follows:

• Average payment period to suppliers = (Ratio of paid transactions x total amount of payments made + Ratio of outstanding transactions x total amount of outstanding payments) / (Total amount of payments made + total amount of outstanding payments).
• Ratio of paid transactions = Σ (number of payment days x amount of paid transactions) / Total amount of payments made.

Number of payment days means the calendar days that have elapsed since the date the calculation begins until the actual payment of the transaction.

– Ratio of outstanding transactions = Σ (number of days outstanding x amount of outstanding transactions) / Total amount of outstanding payments.

Days payable outstanding means the calendar days that have elapsed since the date the calculation begins until the last day of the period referred to in the annual accounts.

– For the calculation of both the number of payment days as well as the days payable outstanding, the company calculates the term as of the date of provision of the services. However, given the lack of reliable information on the time that this has taken place, the invoice receipt date is used.

	Thousands of euros
	Amount 2023	Amount 2022
Total payments made	1,163,509	1,260,580
Total outstanding	115,540	127,324
payments

The average payment period is calculated over the invoices received and formed outstanding payment corresponding to the suppliers who, due to their nature, are suppliers of goods and services, in such a way that only the data relating to the 'Sundry creditors' item of the 'Trade and other payables' heading are considered.

On 29 September 2022, the new Act 18/2022, of 28 September, on the creation and growth of companies, was published in the Official State Gazette. This new regulation establishes new transparency requirements linked to the deferral of payments to suppliers, imposing, on listed and unlisted trading companies that do not present abridged annual accounts, an additional requirement consisting of a breakdown in the notes to the annual accounts of new information. Specifically, the new information refers to the monetary volume and number of invoices paid in a period

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

shorter than the maximum established in the regulations on defaults, and the percentage that they represent of the total number of invoices and of the total monetary payments to their suppliers.

In this regard, the details of the monetary volume and the number of invoices paid in a period shorter than the maximum established for the fiscal years 2023 and 2022 are as follows:

	Thousands of euros	%	Number of invoices	%
31 December 2023	1,159,087	99.6%	35,606	98.6%
31 December 2022	1,253,710	99.5%	35,090	98.7%

In the fiscal years 2023 and 2022, the average payment terms adhered to the terms set out by Act 15/2010. In those exceptional cases where a payment has been made outside of the maximum legal term, this is due mainly to reasons not attributable to the Company: invoices not received on time, expired Spanish Tax Administration Agency (AEAT [Agencia Estatal de Administración Tributaria]) certificates, lack of documentary evidence of supplier bank accounts, among others.

17. Inventories

The balance of the 'Inventories' heading at the end of the fiscal years 2023 and 2022 is broken down into the following items:

	Note		Thousands of euros
		2023	2022
Spare parts		6,190	5,597
Greenhouse effect emission allowances	27	193	176
Impairment of value of other supplies		(1,178)	-
		5,205	5,773

The balance of inventories mainly includes materials and spare parts used by the Company in airport operations, with their value being corrected for their obsolescence.

18. Cash and cash equivalents

The breakdown of the 'Cash and cash equivalents' heading is as follows:

		Thousands of euros
	2023	2022
Cash and bank deposits	1,631,740	435,404
Other cash equivalents	590,000	1,000,000
	2,221,740	1,435,404

At 31 December 2023 and 2022, there are no cash and cash equivalents balances that are unavailable for use.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

19. Equity

19.1 Share capital

The Company was created on 31 May 2011 with an initial capital of €61,000 (€1,000 per 61 shares) provided in full by the public business entity ENAIRE. On 6 June 2011, the ENAIRE Shareholders' Meeting approved a capital increase with the non-monetary contribution of the branch of airport activity, where the following was agreed:

• To reduce the nominal value per share by splitting the 61 shares, at €10 per share, in such a way that there would be a total of 6,100 shares.
• To increase the share capital to €1,500,000 thousand, through the contribution of €1,499,939 thousand (149,993,900 shares issued at €10 each). These shares are issued with a premium of €1,100,868 thousand. Therefore, the capital and the share premium would amount to €2,600,807 thousand.

On 23 January 2015, the Council of Ministers approved the sale of 49% of Aena via an Initial Public Offer, registering the IPO prospectus with the CNMV on 23 January 2015. Trading in AENA S.M.E., S.A. shares opened on the Continuous Market, in the four Spanish stock exchanges, on 11 February 2015.

The listing of the Company on the stock exchange, as explained above, via the IPO of 49% of AENA S.M.E., S.A.'s capital, meant that the ENAIRE entity's shareholding in AENA S.M.E., S.A. fell to 51%, compared to its previous 100%.

On 31 December 2023 and 2022, the share capital of AENA S.M.E., S.A. was represented by 150,000,000 ordinary shares with a par value of €10 each, which have been fully paid. These shares have equal voting and economic rights. Its stock market share price value at the close of trading on 29 December 2023 was €164.10/share.

As of 31 December 2023 and 2022, there are also no capital increases in progress or authorisations to operate in own shares.

According to the information available at 31 December 2023, the stakes exceeding 3% are as follows:

Shareholder's name or company name	% of total voting rights
ENAIRE	51.00
HOHN, CHRISTOPHER ANTHONY	6.257
BLACKROCK INC.	3.071
VERITAS ASSET MANAGEMENT LLP	3.024

19.2 Reserves

19.2.1 Share premium

The consolidated text of the Corporate Enterprises Act expressly allows the use of the share premium balance to expand the share capital and does not establish any specific restriction regarding the drawing down of this balance.

This reserve is freely available provided that, as a result of its distribution, the Company's equity value is not less than the share capital figure.

As of 31 December 2023 and 2022, the Company's Share Premium amounts to €1,100,868 thousand.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

19.2.2 Capitalisation reserve

The Capitalisation Reserve as at the close of the fiscal year 2023 amounting to €164,176 thousand (with the same amount as at the close of 2022: €164,176 thousand) comes from the approval of the Company's distribution of profits for the fiscal years ended 31 December 2015. This capitalisation reserve has been endowed in accordance with articles 25 and 62 of the Corporate Tax Act, which establishes that the reserve must be endowed with the amount stipulated in order to benefit from the reduction in the tax base of the tax group for the fiscal year. As defined in said article, the right to a reduction in the tax base of the tax group is set at 10% of the tax group's increase in equity. This sum may never exceed 10% of the positive tax base of the tax group corresponding to the tax year prior to the reduction and integration referred to in section 12 of article 11 of the Act and the compensation of negative tax bases. However, in the event of an insufficient tax base of the tax group for applying the reduction, the pending amounts may be applied in the tax years ending in the two years immediately following the end of the tax year in which the right to the reduction was generated, together with the reduction that may correspond in that year and at the indicated limit.

The Reserve is restricted and conditional upon maintaining the equity increase of the tax group for a period of 5 years from the end of the tax year to which the reduction corresponds, except for the existence of accounting losses. Once this period of 5 years has elapsed, and the established condition has been met, the reserve provided to cover the reduction applied in the Corporate Tax return becomes available.

At the end of the 2023 fiscal year, the capitalisation reserves provided in 2015, 2016 and 2017—for the amount of €113,626 thousand—are freely available, since more than 5 years have elapsed since the end of the tax period in which the reduction applied to the Corporate Tax that required its provision was applicable (Note 3).

19.2.3 Legal reserve

The legal reserve must be allocated in accordance with article 274 of the Corporate Enterprises Act. This article requires that, in any event, a figure equal to 10% of the profits for the fiscal year be earmarked for the legal reserve, until its amount reaches at least 20% of the share capital.

The legal reserve, as long as it does not exceed the amount indicated above, may only be used to offset losses if no other reserves are available for this purpose.

At the end of the fiscal years 2023 and 2022, the legal reserve amounted to €300,000 thousand, equalling the minimum legal limit established in accordance with article 274 of the Corporate Enterprises Act.

19.2.4 Other Reserves

As of the end of the fiscal years 2023 and 2022, fully available voluntary reserves are included in this heading provided that, as a result of their distribution, the value of the Company's equity is not lower than the share capital.

19.3 Adjustments due to changes in value

The movement produced in the fiscal years 2023 and 2022 in this reserve as a result of the value adjustments of the derivatives designated as cash flow hedges (see Note 15) is as follows:

	2023
	Opening balance	Changes in Fair Value	Postings to results	Balance 31/12/2023
Cash flow hedges
Aena interest rate swaps	(98,023)	14,104	32,779	(51,140)
Tax effect	24,506	(3,526)	(8,195)	12,785
Total	(73,517)	10,578	24,584	(38,355)

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	2022
	Changes in Fair Opening balance Value		Postings to results	Balance 31/12/2022
Cash flow hedges
Aena interest rate swaps	73,557	(150,653)	(20,927)	(98,023)
Tax effect	(18,389)	37,663	5,232	24,506
Total	55,168	(112,990)	(15,695)	(73,517)

The breakdown of the fiscal years in which this reserve is expected to affect the profit and loss account is included in Note 10, under the 'Derivatives' section of the Analysis by maturity.

19.4 Grants, donations and legacies received

The breakdown and movement of this heading as of 31 December 2023 and 2022 is as follows:

	2023
	Opening balance	Additions	Postings to results	Balance 31/12/2023
Capital grants from official European bodies
Amount	395,721	8,444	(32,565)	371,600
Tax effect	(98,931)	(2,110)	8,141	(92,900)
Net	296,790	6,334	(24,424)	278,700

	2022
	Opening balance	Additions	Postings to results	Balance 31/12/2021
Capital grants from official European bodies
Amount	425,381	4,806	(34,466)	395,721
Tax effect	(106,346)	(1,202)	8,617	(98,931)
Net	319,035	3,604	(25,849)	296,790

The additions for the 2023 fiscal year correspond to the following: greenhouse gas emission allowances of free allocation corresponding to Barcelona-El Prat Josep Tarradellas Airport; the collection received from the Regional Government of Castile and León for land at the Burgos Airport; a bicycle lane at the Menorca Airport; charging points for handling vehicles across the airport network; and the AGORA and SCENA applications to achieve the transformation of aeronautical information into digital format and comply with European regulations.

The additions for the fiscal year 2022 correspond to greenhouse gas emission allowances of free allocation corresponding to Barcelona-El Prat Josep Tarradellas Airport and the collection received from the Regional Government of Castile and León for a plot of land at Burgos Airport.

19.4.1 Proceeds from grants

The breakdown of the gross grants that were earned in the fiscal years 2023 and 2022 is as follows, in thousands of euros:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Thousands of euros
	2023	2022
Burgos Airport Land Grant	4,530	4,685
AGORA Grant and SCENA	275	-
Menorca Bike Lane Grant	98	-
Menorca Airport wastewater treatment plant grant	192	192
Total Grants collected	5,095	4,877

At the end of the fiscal years 2023 and 2022, the Company believes that all the conditions needed to receive and enjoy the grants listed above have been met.

19.4.2 Operating Grants

During the 2023 fiscal year, operating grants of €46,472 thousand have been recognised in the profit and loss account. This largely consisted of the grant collected in the year for the amount of €45,133 thousand awarded by the European Union Solidarity Fund to offset the expenses incurred by Aena in its efforts to mitigate the effects caused by the COVID-19 pandemic. These included: health checks upon arrival of passengers; disinfection actions of buildings, terminals, external dependencies and luggage trolleys; safety reinforcement actions and communication to users in airport facilities; and an increase in the frequency of filters in ventilation systems in accordance with sanitary recommendations.

20. Accruals

20.1 Liability accruals

The breakdown of liability accruals is as follows:

	2023	2022
Guarantees	(1,253)	3,094
Advance revenue from advances received in kind	3,550	4,454
Other advance revenue	6,077	-
Total adjustments for accrual	8,374	7,548
Current	1,861	447
Non-current	6,513	7,101

Long-term accruals include early reversals of rights to constructed assets. The long-term accrual account, initially recorded by the amount received, €278,933 thousand, is subject to annual updates against finance expenses. These finance expenses amounted to €89 thousand in 2023 (2022: €98 thousand). The outstanding balance to be allocated to results at the end of the fiscal year amounts to €3,550 thousand (2022: €4,454 thousand).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

20.2 Asset accruals

	2023	2022
Prepaid expenses	6,470	6,007
Total adjustments for accrual	6,470	6,007
Current	6,470	6,007
Non-current	-	-

Prepaid expenses for insurance premiums amounting to €6,402 thousand (2022: €5,945 thousand) and prepaid expenses for prepaid credit cards amounting to €68 thousand (2022: €59 thousand) are mainly recorded under this current assets heading.

21. Provisions

The movement in the fiscal years 2023 and 2022 in the accounts included under this heading has been as follows:

	2023
	Provision for Work Commitments	Expropriations and default interest	Responsibilities	Taxes	Environmental Actions	Other operating provisions	Total
Opening balance	6,707	5,655	13,971	5,428	62,571	31,602	125,934
Allocations	432	9,972	32,480	1,030	10,548	24,268	78,730
Discount additions	245	-	-	-	1,579	-	1,824
Reversals/Surpluses	305	(344)	(6,162)	(1,295)	(3,956)	(149)	(11,601)
Applications	(340)	(5,620)	(1,206)	1,110	(10,083)	(48,352)	(64,491)
Closing balance	7,349	9,663	39,083	6,273	60,659	7,369	130,396
Short-term portion	-	1,459	5,767	2,751	7,468	6,927	24,372
Long-term portion	7,349	8,204	33,316	3,522	53,191	442	106,024

	2022
	Provision for Work Commitments	Expropriations and default interest	Responsibilities	Taxes	Environmental Actions	Other operating provisions	Total
Opening balance	9,358	5,972	14,531	5,659	104,510	7,682	147,712
Allocations	623	-	6,638	472	4,231	41,805	53,769
Discount additions	48	-	-	-	866	-	914
Reversals/Surpluses	(2,713)	(317)	(6,164)	(1,857)	(36,769)	(47)	(47,867)
Applications	(609)		(1,034)	1,154	(10,267)	(17,838)	(28,594)
Closing balance	6,707	5,655	13,971	5,428	62,571	31,602	125,934
Short-term portion	-	1,092	10,958	2,154	9,591	31,152	54,947
Long-term portion	6,707	4,563	3,013	3,274	52,980	450	70,987

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

21.1 Provision for work commitments

The movement of the Provision for work commitments accounts during the 2023 and 2022 fiscal years, in thousands of euros, has been as follows:

2023
	Provision for length of service awards	Provision for early retirement awards	Total provision for work commitments
Opening balance on 1 January 2023	6,266	441	6,707
Allocations	413	19	432
Actuarial gains and losses	276	29	305
Discount increase	229	16	245
(Applications)/Rebates	(313)	(27)	(340)
Closing balance on 31 December 2023	6,871	478	7,349

	2022
	Provision for length of service awards	Provision for early retirement awards	Total provision for work commitments
Opening balance on 1 January 2022	8,579	779	9,358
Allocations	586	37	623
Actuarial gains and losses	(2,370)	(343)	(2,713)
Discount increase	44	4	48
(Applications)/Rebates	(573)	(36)	(609)
Closing balance on 31 December 2022	6,266	441	6,707

21.1.1 Provision for length of service awards

At 31 December 2023, the balance of the liability recognised in the balance sheet for this provision is €6,871 thousand (2022: €6,266 thousand). The allocation for the fiscal year 2023 amounted to €642 thousand (2022: €630 thousand), of which €229 thousand corresponds to the financial cost (2022: €44 thousand). Actuarial losses of €276 thousand have been recorded as a higher provision (2022: actuarial gains of €2,370 thousand recorded as a provision surplus).

21.1.2 Provision for early retirement awards

At 31 December 2023, the balance of the liability recognised in the balance sheet is €478 thousand (2022: €441 thousand), which corresponds to the difference between the present value of the obligation accrued as of 31 December 2023 of €478 thousand (2022: €441 thousand) and the fair value of the plan assets of €0 thousand (2022: €0 thousand). Net additions for the fiscal year corresponded to the normal service cost for the year of €19 thousand (2022: €37 thousand), separate finance cost of €16 thousand (2022: €4 thousand). Actuarial losses of €29 thousand, applications of €27 thousand and return on plan assets of €0 thousand (2022: actuarial gains of €343 thousand, applications of €36 thousand and return on plan assets of €0 thousand).

21.1.3 Other work commitments

The agreement stipulates a pension plan as post-employment compensation for workers. For this benefit, the Company has made defined contributions to the fund during the fiscal years prior to 2013. However, for the 2017, 2016, 2015, 2014 and 2013 fiscal years, the Company did not make these contributions due to the suppression established in Act 3/2017, of 27 June, Act 48/2015, of 29 October, Act 36/2014, of 26 December, Act 22/2013, of 23 December, and RDL 17/2012, of 27 December, respectively. These acts establish that public companies cannot make contributions to employee pension plans or collective insurance contracts that include retirement contingency coverage.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

For the 2018, 2019, 2020, 2021, 2022 and 2023 fiscal years, extraordinary contributions have been made to the Pension Plan based on the application of the last paragraph of art. 18.2 of the 2019 State General Budget Act (LPGE [Ley de Presupuestos Generales del Estado]), art. 3.2 of RD-Law 24/2019, and the final paragraph of article 3 Two of Royal Decree-Law 2/2020, for the amounts of €494 thousand, €650 thousand, €2,444 thousand, €1,965 thousand, €1,977 thousand and €1,973 thousand, respectively.

21.2 Expropriations and default interest

The provision for expropriations and interest on late payment records the best estimate of the amount relating to the difference between the prices paid for the expropriation of land required for the expansion of airports and the estimates of the prices that the Company would have to pay, considering that it is likely that certain legal claims in progress regarding some of the prices paid will be successful for the claimants. When estimating the amount of the differences affecting these prices, the Company has taken into account the default interest using the prevailing legal cash interest rate for each year as the basis of calculation.

As of 31 December 2023, there are provisions that mainly correspond to disputes related to expropriations of land, notably at Vigo Airport and Palma de Mallorca Airport. All these proceedings gave rise to a provision amounting to €9,663 thousand, of which €8,053 thousand correspond to price differences, for which the balancing entry was a higher value for land, and €1,610 thousand of accrued default interest as of 31 December 2023, for which the balancing entry was interest expense for expropriation delays (2022: €5,655 thousand, of which €4,713 thousand corresponded to price differences and €942 thousand of accrued default interest as of 31 December 2022).

The reversals made during the fiscal year 2023 are mainly a consequence of resolutions favourable to the interests of Aena, notably the reversal of the provision for Bilbao Airport. Of the €344 thousand reversed, €260 thousand has been credited to the value of the fixed assets against which they were provided at the time, and the rest, for the amount of €84 thousand, as a lower expense for interest on the delay of expropriations (2022: of the €317 thousand reversed, €244 thousand has been credited to the value of the fixed assets against which they were provided at the time, and the rest, for the amount of €73 thousand, has been credited to profit or loss).

The finance expense of interest due to expropriations as of 31 December 2023, once the aforementioned reversals are taken into account, amounted to €668 thousand (31 December 2022: finance income of €73 thousand) (see Note 23.6).

21.3 Provision for responsibilities

This heading mainly records provisions made based on the best estimates available to the Company's management to cover risks relating litigation, claims and commitments in progress that are known at the end of the year and for which the expectation is that an outflow of resources in the medium or long-term is likely. As of 31 December 2023 and 2022, the balances of the Provision mainly correspond to unfavourable rulings in claims made by lessees, as well as to labour and other claims made by contractors.

During the fiscal year 2023, the provisions made by the Company, for a total amount of €32,480 thousand, mainly correspond to the following: claims made by commercial tenants relating to the application of the DF7, where it has been deemed appropriate to rate the business risk as probable, given the existing legal dispute, for an amount of €11,845 thousand; claims made by an airline in the normal course of business to the amount of €15,023 thousand; claims for work contracts to the amount of €3,506 thousand; claims for decentralised contracts for €532 thousand; and claims relating to employment matters for an amount of €1,574 thousand.

During the fiscal year 2022, the provisions made by the Company, totalling €6,638 thousand, corresponded mainly to the following: claims for interest on delays for €2,686 thousand; claims made by airline companies for an amount of €1,175 thousand; and employment-related claims amounting to €2,676 thousand.

During the fiscal year 2023, reversals, for a total amount of €6,162 thousand, have arisen due to the resolution favourable to the Company of employment disputes for an amount of €5,662 thousand, and other risks of contracting works that have amounted to €480 thousand. The reversals have been credited to the profit and loss account, under the heading 'Staff provisions' or 'Provision surpluses', depending on their nature.

During the fiscal year 2022, reversals, for a total amount of €6,164 thousand, were made for the resolution favourable to the Company of employment litigation and other risks, highlighting those corresponding to commercial claims that amounted to €3,042 thousand. The reversals have been credited to the profit and loss account, mainly under the heading 'Surplus of provisions'.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The Company's directors do not consider that, from the set of responsibilities underway, additional liabilities may arise that would significantly affect these annual accounts.

21.4 Taxes

This heading mainly records provisions allocated with respect to appeals filed by the Company due to its disagreement with the proposed settlements received from the Tax Authorities regarding certain local taxes associated with airport assets and for which final decisions have yet to be made, of which the expectation is that an outflow of cash is likely, the definitive amounts and the definitive settlement of which are uncertain on the date that these annual accounts were prepared.

The amount of the reversals, fully credited to the profit and loss account under the 'Provision surpluses' heading, is mainly related to favourable resolutions in settlements that were in dispute or prescriptions of these local tax settlements in favour of the Company.

21.5 Provisions for environmental actions

Within this heading, provisions amounting to €58,675 thousand (2022: €60,500 thousand) were recognised in relation to the projected obligations for carrying out sound insulation and soundproofing works in residential areas to comply with the prevailing regulations on noise generated by airport infrastructures.

In addition, an environmental provision of €1,400 thousand (2022: €1,400 thousand) is recognised in relation to the additional measures contemplated in the Resolution of 9 April 2015, of the Secretary of State for the Environment. This resolution amends the ninth condition of the Environmental Impact Declaration for the Adolfo Suárez Madrid-Barajas Airport, of 30 November 2001, and makes provision for actions on the Jarama River. The 2023 provision also includes the greenhouse gas emission allowances acquired by the Company for its consumption, for an amount of €584 thousand (2022: €671 thousand). This corresponds to the best estimate of the allowances consumed during 2023, based on the emissions actually produced during 2022 (see Note 27).

In the fiscal year ended 31 December 2023, €11,656 thousand have been allocated to the provision for environmental actions for the updating of acoustic footprints of certain insulation plans, of which €1,579 thousand correspond to the financial cost. For the calculation of the provision, an average unit cost of €7,468/house was used (except for the Adolfo Suárez Madrid-Barajas airport, for which a cost of €24,206/house was estimated due to the type of houses and buildings pending insulation at this airport, and for 7 other airports, for which the estimated average amount was €5,357/house). The balancing entry for these provisions is included under 'Property, plant and equipment'.

In the fiscal year ended 31 December 2022, €4,923 thousand has been allocated to the provision for environmental actions for the updating of acoustic footprints of certain insulation plans, of which €866 thousand correspond to the financial cost. For the calculation of the provision, an average unit cost of €7,560/house was used (except for the Adolfo Suárez Madrid-Barajas airport, for which a cost of €23,323/house was estimated due to the type of houses and buildings pending insulation at this airport, and for 7 other airports, for which the estimated average amount was €4,949/house). The balancing entry for these provisions is included under 'Property, plant and equipment'.

The reversal that occurred during the 2023 fiscal year for the amount of €3,956 thousand is mainly related to the slight decrease in the average amount of the estimated cost of insulation per house of most airports, compared to 2022. This reversal was made against the value of the fixed asset for which the provision was originally made.

The reversal that occurred during the fiscal year 2022, amounting to €36,769 thousand, is fundamentally related to a decrease in the average estimated insulation cost amount per house, at each of the airports, with respect to 2021. In this regard, the average amounts have been set at €7,560/house (except for the case of Adolfo Suárez Madrid-Barajas Airport, for which a cost of €23,323/house was estimated due to the type of the homes and buildings to be insulated at this airport, and for 7 other airports, whose estimated average amount is €4,949/house), which in 2021 were €11,484/ house, €26,839/house and €5,200/house, respectively. This reversal was made against the value of the fixed asset for which the provision was originally made. In any case, this reduction is due solely to the scope of the actions that have had to be carried out, given that the prices applied remain unchanged as they are subject to the Framework Agreement approved in 2016.

The environmental assessment legislation (currently Act 21/2013) requires that certain AENA S.M.E., S.A. projects are submitted to an environmental impact assessment (particularly runway extensions exceeding 2,100 metres) and are finalised by the formulation of the corresponding environmental impact statements by the Ministry for Environmental Transition. Such statements contain the obligation to develop and execute Sound Insulation Plans (SIP).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

In terms of noise, Act 5/2010, of 17 March, amending Act 48/1960, of 21 July, on Air Navigation, stipulates the adoption of action plans, including any corrective measures, when acoustic easements are established to achieve acoustic quality objectives in relation to building exteriors, flight paths, number of flights and associated environmental impacts at airports with more than 50,000 flights/year.

The Company will post the corresponding provisions at the time when the obligation arises to insulate homes, that is, either when a new acoustic footprint is approved that centres on acoustic insulation issues, an easement and its action plan taking effect (via Royal Decree), or through the approval of a new Environmental Impact Statement as a result of the environmental evaluation of projects that require it. These published standards are the ones that must be considered when making provisions, regardless of if the insulating actions on affected buildings take place after they are made, which leads to a time difference between the provision and the execution of the works. The Company's administrators do not expect there to be any significant liabilities or additional contingencies for this reason.

21.6 Other provisions

This heading mainly records the provision for discounts applicable to Aena passenger landing and departure airport charges, accrued by airlines operating during certain days of the week at airports located in the Canary Islands. Also, the General State Budgets Act for the fiscal year 2016 established incentives in the public service benefits for passenger traffic, for growth in passenger numbers on the routes operated in the Aena network.

The impact of COVID-19 on airport activity meant that these incentives were no longer in effect and so, in order to contribute to the reactivation of air traffic in Spain, for the winter season of 2021, the Board of Directors approved the extraordinary incentive of recovery of operations applicable between November 2021 and March 2022, in which the average monthly landing charge of operations exceeding the threshold of 75% was reimbursed, in reference to the operations carried out in the same months of the 2019 season, by the recovery percentage corresponding to each airline.

For 2022, Aena's Board of Directors approved the extraordinary commercial incentive for flights to the island of La Palma. The incentive consisted of a 100% refund of the infrastructure use charge (passenger) on all flights that took place from 1 January 2022 to 31 December 2022 which originate at La Palma Airport and whose destination is in the Spanish mainland, the Balearic Islands or an international destination.

For the 2022 summer season, Aena's Board of Directors approved the commercial incentive for increased passenger traffic. This incentive was effective from 1 April to 31 October 2022. The incentive refunded the average charge applied to outbound commercial passengers carried by the company, provided that the number of outbound passengers carried by the company exceeds the thresholds defined by geographical areas. The seating schedule at the end of the season had to have equalled or exceeded the 'scheduled seating threshold' at EOS (End of Season) with respect to the HBD (Historic Baseline Date).

For the summer 2022 and winter 2022 season, Aena's Board of Directors also approved the incentive for regular commercial helicopter operations originating at Ceuta Heliport and Algeciras Heliport. Airlines were entitled to a maintenance incentive for passengers transported on routes operated from Algeciras Heliport and Ceuta Heliport. The incentive was calculated at an amount equivalent to 50% of the average amount of the public provision per outbound passenger and safety of the company on the route, and was applied to the total number of commercial passengers departing from the route in question, provided that at least 75% of outbound passengers transported in the previous similar season was maintained on the route.

For the 2022 winter season, Aena's Board of Directors approved an extension of the incentive in force for the 2022 summer season, which applied between 1 November 2022 and 31 March 2023. Companies that met the required conditions on seat scheduling and occupancy factor were able to benefit from a refund on their average charge to passengers.

For the summer 2023 and winter 2023 seasons, the Board of Directors of Aena approved the incentive for the number of additional departing passengers and this applied to the opening of routes to new destinations, depending on the contribution to the growth in the number of passengers on the routes operated from the airports of the network of less than 3 million passengers annually in 2022 and in contributing to the growth in the number of passengers of the routes bound for Asia that are operated from all the airports of the network during the season. The incentive is an amount equivalent to 100% of the average amount of airport charge per departure of passengers of the company on the route. The same Board also approved the extension of the Incentive for operations at the Algeciras Heliport and Ceuta Heliport for the summer and winter seasons of 2023.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The overall effect of all the traffic incentives amounted to a provision of €24,120 thousand during the fiscal year 2023 (a net amount originating from the reversal of €149 thousand of provisions from previous years) compared with €41,308 thousand corresponding to the same period in 2022 (a net amount originating from the reversal of €46 thousand of provisions from previous years).

Moreover, the applications received amount to €48,345 thousand against this provision of incentives to airlines during the fiscal year 2023 (2022: €17,838 thousand).

At 31 December 2023, the sum of the amount provisioned for the above items amounted to a balance of €7,369 thousand (2022: €31,152 thousand).

Also included in this heading is a provision for the dismantling of the car park under construction in the vicinity of the Piovera building in Madrid (Spain), amounting to €442 thousand (2022: €450 thousand). The car park will revert to the City Council of this city at the end of the lease period and is expected to be operational in 2024.

22. Public Administrations and fiscal situation

22.1 Balances with Public Administrations

The composition of the debit and credit balances with Public Administrations is as follows:

Income tax receivable	Note	Thousands of euros
			2023		2022
		Current	Non-current	Current	Non-current
Deferred tax assets	22.3	-	36,538	-	186,902
Current tax assets	22.2	146,107	-	9,087	-
VAT receivable		3,495	-	24,583	-
Canary Islands General Indirect Tax (IGIC [Impuesto General Indirecto Canario]) receivable		7	-	3	-
Income tax receivable for grants awarded	7.5	3,976	-	769	-
Other items		-	-	(3)	-
		153,585	36,538	34,439	186,902

As of 31 December 2023, the heading of Income tax receivable for grants awarded includes mainly two items: €3,400 thousand for a grant for the installation of handling recharging points and €961 thousand related to a grant for the construction of a scrubber at a network airport. At the end of the fiscal year 2022, there was a debit balance of €769 thousand related to this grant. During the fiscal year 2023, the Company collected €192 thousand from this grant (see Note 19.4).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Income tax payable	Note	Thousands of euros
			2023		2022
		Current	Non-current	Current	Non-current
Deferred tax liabilities	22.3	-	98,276	-	104,306
Personal income tax (IRPF [Impuesto sobre la renta de las personas físicas]) payable		9,288	-	11,025	-
IGIC payable		2,143	-	1,087	-
Social Security payable		18,161	-	17,971	-
Other taxes payable		9	-	52	-
VAT payable		8,129	-	116	-
		37,730	98,276	30,251	104,306

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

22.2 Reconciliation of the profit/(loss) and tax base

The reconciliation between profit/(loss) and the taxable Corporate Tax base in the fiscal year 2023 is as follows:

	Thousands of euros
	2023
				Revenue and expenses allocated
		Profit and loss account			directly to equity
Balance of revenue and expenses for the fiscal year			1,436,264
	Increases	Decreases	Total	Increases	Decreases	Total
Corporate Tax	434,144		434,144
Profit/(loss) before tax			1,870,408
Permanent differences	4,419	(29,758)	(25,339)
Temporary differences:
- Amortisation	43,874	(65,631)	(21,757)
- Impairment losses	29,304	(18,087)	11,217
- Pension plans	1,985	(2,098)	(113)
- Provisions	1,239	(469)	770
- Provision for impairment of fixed assets	460	(15)	445
- Hedging derivatives					(46,882)	(46,882)
- Grants, donations and legacies received				54,916	(79,037)	(24,121)
- Others					(29)	(29)
	76,862	(86,300)	(9,438)	54,916	(125,948)	(71,032)
Offsetting of negative tax bases			(482,942)
Tax base (taxable income)			1,352,689
Total tax liability			338,172			(17,758)
Deductions			(29,039)
Tax liability			309,133
Withholdings and payments on account			(421,956)
Tax liability receivable			(112,823)

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Thousands of euros
	2022
				Revenue and expenses allocated
		Profit and loss account		directly to equity
Balance of revenue and expenses for the fiscal year			864,861
	Increases	Decreases	Total	Increases	Decreases	Total
Corporate Tax	245,528		245,528
Profit/(loss) before tax			1,110,389
Permanent differences	2,314	(14,095)	(11,781)
Temporary differences:
- Amortisation	42,821	(67,946)	(25,125)
- Impairment losses	21,071	(2,039)	19,032
- Pension plans	2,775	(4,953)	(2,178)
- Provisions	153	(486)	(333)
- Provision for impairment of fixed assets	11	(90)	(79)
- Hedging derivatives				171,580		171,580
- Grants, donations and legacies received				4,806	(34,466)	(29,660)
- Others				343	-	343
	66,831	(75,514)	(8,683)	176,729	(34,466)	142,263
Offsetting of negative tax bases			(115,605)
Tax base (taxable income)			974,321
Total tax liability			243,580			35,566
Deductions			(76,274)
Tax liability			167,306
Withholdings and payments on account			(165,317)
Tax liability receivable			1,989

Under the Corporate Tax regime for consolidated tax returns, a tax receivable from the Tax Authority has accrued for the amount of €99 million (2022: a tax receivable from the Tax Authority accrued for the amount of €9 million).

The main permanent differences for the fiscal year 2023 arise from revenue from long-term loans with group companies. Additionally, as of 31 December 2023, the company has recognised an increase in the capitalisation reserve amounting to €15,236 thousand, which implies a reduction in the taxable base of the Corporate Tax. This incentive, if the stipulated requirements are met, allows for a 10% reduction in the variation of own funds between financial years. In 2022, for its part, they corresponded to non-deductible expenses and the reversal of the impairment provided for in the fiscal year 2020 related to the investment in its subsidiary Aena Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia, S.M.E.

Regarding the main temporary differences, both in fiscal year 2023 and 2022, they correspond to the following:

• Impairment of trade receivables.
• Differences between book and tax depreciation.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

In relation to the taxable base for Corporate Tax, negative tax bases from previous fiscal years have been applied in the fiscal year 2023 for the amount of €482,942 thousand. Most of these tax loss carryforwards arise from the change in accounting policy made in fiscal year 2022, where the Company recorded, against equity, a lower accounting revenue for commercial leases in 2021 for an amount of €584,215 thousand and in 2020 for an amount of €48,196 thousand. Pursuant to the provisions of article 11 of the Corporation Tax Act, the lower accounting revenue corresponding to fiscal years 2021 and 2020 must be allocated for tax purposes to those fiscal years, calling for the rectification of the tax returns corresponding to those years in order to recognise the corresponding expenses and the resulting higher tax loss carryforwards in each of them to the amount of €158,103 thousand, This amount corresponded to the tax credit that has arisen as a consequence of the adjustment due to the restatement of 2020 for the amount of €12,049 thousand, and to that of 2021 for the amount of €146,054 thousand.

The general Corporate Tax rate for the fiscal year 2023 is 25%, the same as in 2022.

The Income tax heading in the accompanying profit and loss account consists of the following:

	Note	Thousands of euros
(-) Expense/(+) Revenue		2023	2022
Current tax		(338,172)	(243,580)
Deferred tax		(2,359)	(2,171)
Credits to offset losses during the fiscal year		(120,736)	(28,901)
Tax deductions recorded	22.3	26,705	29,620
Others		418	(496)
		(434,144)	(245,528)

The 'Others' item corresponds mainly to the regularisation between the estimate made at the close of the fiscal year and the presentation of corporate tax in the following year.

The breakdown by company of the credits and debits between group companies as a result of the tax effect generated by the consolidated taxation regime is as follows:

	Thousands of euros
		2023	2022
	Current	Non-current	Current	Non-current
Aena Desarrollo Internacional S.M.E., S.A.	-	3,312		- (10,004)
Aena Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia S.M.E.	-	(849)		- (429)
	-	2,463		- (10,433)

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

22.3 Deferred taxes

The breakdown of deferred taxes as of 31 December 2023 and 2022 is as follows:

	Note	Thousands of euros
		2023	2022
Deferred tax assets:
- Temporary differences	22.1	36,538	186,902
		36,538	186,902
Deferred tax liabilities:
- Temporary differences	22.1	(98,276)	(104,306)
		(98,276)	(104,306)
Deferred taxes		(61,738)	82,596

The breakdown of deferred tax assets and liabilities whose term of realisation or reversal is greater than 12 months is as follows:

	Thousands of euros
	2023	2022
Deferred tax assets:
- Temporary differences	21,756	100,912
	21,756	100,912
Deferred tax liabilities:
- Temporary differences	(92,246)	(96,890)
	(92,246)	(96,890)
	(70,490)	4,022

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

The movement in deferred tax assets and liabilities during the fiscal years 2023 and 2022 has been as follows:

	Deferred tax assets
	Amortisation (*)	Impairment losses		Pension plans Impairment of fixed assets	Responsibility provisions	Hedging derivatives	Increased value of stakes	Credits due to Negative Taxable Bases	Deductions pending application	Others	Total
Opening balance	33,757	14,833	379	165	4,954	(24,506)	(920)	158,190	-	50	186,902
Charge (credit) to profit and loss account	(7,942)	2,708	(28)	117	-	-	-	-	-	189	(4,956)
Charge (credit) to equity	-	-	-	-	-	11,721	-	-	-	7	11,728
Tax consolidated group companies	-	-	-	-	-	-	-	-	-	-	-
Use of credits in fiscal years	-	-	-	-	-	-	-	(157,136)	-	-	(157,136)
Others (**)	-	-	-	-	-	-	-	-	-	-	-
Balance at 31 December 2023	25,815	17,541	351	282	4,954	(12,785)	(920)	1,054	-	246	36,538

	Deferred tax assets
	Amortisation (*)	Impairment losses	Pension plans	Impairment of fixed assets	Responsibility provisions	Hedging derivatives	Increased value of stakes	Credits due to Negative Taxable Bases	Deductions pending application	Others	Total
Opening balance	46,970	10,788	1,035	185	5,018	18,389	(920)	186,514	40,235	58	308,272
Charge (credit) to profit and loss account	(13,285)	4,758	(570)	(20)	(58)	-	-	-	29,621	-	20,446
Charge (credit) to equity	-	-	(86)	-	-	(42,895)	-	-	-	-	(42,981)
Tax consolidated group companies	-	-	-	-	-	-	-	-	-	-	-
Use of credits in fiscal years	-	-	-	-	-	-	-	(28,901)	(69,270)	-	(98,171)
Others (**)	72	(713)	-	-	(6)	-	-	577	(586)	(8)	(664)
Balance at 31 December 2022	33,757	14,833	379	165	4,954	(24,506)	(920)	158,190	-	50	186,902

(*) The heading 'Amortisation' includes €2,334 thousand (2022: €4,668 thousand) of the outstanding balance of the credit initially recognised for the amount of €21,928 thousand, once the €2,333 thousand used during 2023 (2022: €21,928 thousand) had been considered (see deductions table).

(**) The heading 'Others' mainly includes the effects of differences in the corporate tax expense accounted for at the close of each fiscal year, and the expense recorded with the definitive tax return to the AEAT.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

As indicated in Note 22.2, as a result of the change in accounting policy that took place in the fiscal year 2022, tax credits were activated for tax loss carryforwards pending to be offset for the amount of €158,103 thousand (€12,049 thousand corresponding to the fiscal year 2020 and €146,054 thousand for the fiscal year 2021). During the fiscal year 2023, tax credits of €157,135 thousand have been applied.

	Thousands of euros
	Grants	Increased value of stakes	Total
Deferred tax liabilities
Opening balance	(98,929)	(5,377)	(104,306)
Charge (credit) to equity	6,030		6,030
Balance at 31 December 2023	(92,899)	(5,377)	(98,276)
Deferred tax liabilities
Opening balance	(106,345)	(5,377)	(111,722)
Charge (credit) to equity	7,416	-	7,416
Balance at 31 December 2022	(98,929)	(5,377)	(104,306)

22.3.1 Fiscal years pending verification and inspection actions

Aena S.M.E., S.A. is subject to a consolidated tax return in Spain. The tax group as of 31 December 2023 is made up of three companies. Aena S.M.E., S.A. as the parent company and Aena Internacional S.M.E., S.A. and Sociedad Concesionaria del Aeropuerto Internacional de Murcia S.M.E., S.A. as subsidiaries.

The tax consolidation regime applies indefinitely to the extent that the requirements demanded for that purpose by the regulations that govern it continue to be met, or the application thereof is not expressly waived.

During the year ended 31 December 2022, there was a significant change in accounting policies with respect to those applied in the 2021 fiscal year, as indicated in note 2.8 of the annual report to the annual accounts for the fiscal year ended 31 December 2022. As a result of the publication of the Agenda Decision of the IFRS Interpretations Committee, dated 20 October 2022, on the lessor's forgiveness of lease payments (IFRS 9 and IFRS 16), it was determined that the accounts receivable for the lease are within the scope of IFRS 9 Financial Instruments, and therefore the Company had to apply the policy on the impairment of value for the expected loss from these leases in its consolidated accounts, considering the impact from the reductions of rent and, consequently, it the reductions are not considered as an incentive within the scope of IFRS 16 Leases.

In order to present a financial and equity situation in the individual annual accounts in alignment with the consolidated annual accounts, Management chose to amend the accounting policy related to rent reductions, treating them as a negative contingent rent forming part of the operating result. Although this accounting treatment is not equivalent to the EU-IFRS standards, to the extent that the General Accounting Plan allows for the option to apply an accounting policy that has a similar impact, the principle of accounting harmonization should prevail to reflect an equivalent financial and equity situation in the individual and consolidated annual accounts, to the extent possible.

Throughout fiscal year 2023, with the purpose of confirming the tax policy adopted by the Company of re-allocating the lowest accounting revenue to the source fiscal years, a request for the rectification of the Corporate Tax returns corresponding to fiscal years 2020 and 2021 was submitted to the Tax Agency, along with that relative to fiscal year 2022 due to the effect from the largest tax loss carryforwards attributable to those years. With the signing of two deeds —the first of which was signed on 20 December 2023 for the fiscal years 2020 and 2021 and the second, corresponding to the fiscal year 2022, was signed on 9 January 2024—the verification processes with respect to the affected fiscal years and tax returns have been closed, thereby recognising the policy adopted and their consequent effects (recognition of greater tax loss carryforwards attributable to fiscal years 2020 and 2021 that give rise to an asset due to

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

tax credits amounting to €158 million, and a higher amount of tax refund resulting from the 2022 Corporate Income Tax return to the amount of €46 million). These tax credits have been almost fully applied in 2023 by the Tax Group.

As established by current legislation, taxes may not be considered to be definitively settled until the relevant returns have been inspected by the tax authorities or until four years have elapsed since filing. In this regard, the companies comprising the AENA Tax Group have the fiscal year 2019 and subsequent years open for the tax inspection; in the case of Sociedad Concesionaria del Aeropuerto Internacional de Murcia S.M.E., S.A., the first fiscal year open for tax inspection is 2019, the year of its incorporation into the group. However, at the end of the fiscal year 2023, no Group company has any tax inspection procedure open.

The directors of AENA consider that the tax settlements have been properly carried out and, therefore, even if discrepancies were to arise in the interpretation of current legislation as a result of the tax treatment given to the transactions, any resulting liabilities, if any, would not have a material effect on the accompanying consolidated annual accounts.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

22.3.2 Tax deductions

In the fiscal years 2023 and 2022, the following deductions have been applied in the Corporate Tax settlement:

Tax deductions for the fiscal year 2023
	Year generated (1)	Amount pending at 31/12/2022	Amount recognised in 2023	Amount applied	Amount pending at 31/12/202 3	Year matured (2)
Deductions in the Canary Islands for investments in fixed assets (2)	2023	-	26,705	26,705	-	-
Deduction for international double taxation	2023	-	6,460	6,460	-	-
Subtotal			33,165	33,165
30% deduction in amortisation (3)	2023	-	2,334	2,334	-	-
	Total		35,499	35,499

			Tax deductions for the fiscal year 2022
	Year generated (1)	Amount pending at 31/12/2020	Amount recognised in 2021	Amount applied	Amount pending at 31/12/2021	Year matured (2)
	2020	7,035	-	7,035	-	2035
Deductions in the Canary Islands for investments in fixed assets (2)	2021	28,877	-	28,877	-	2036
	2022	-	29,579	29,579	-	2037
	2020	412	-	412	-	2038
Deduction for investments in R&D&I (2)	2021	1,745	(885)	860	-	2039
	2022	-	21	21	-	2040
	2020	970	-	970	-	2030
Deduction for donations (2)	2021	29	299	328	-	2031
	2021	-	21	21	-	2032
Deduction for international	2021	689	-	689	-
double taxation	2021	478	-	478	-
Subtotal		40,235	29,035	69,270	-
30% deduction in amortisation (3)		4,668	2,335	7,003	-
	Total	44,903	31,370	76,273	-

(1) The year of generation responds to the period in which the assets or personnel who qualified for the generation thereof were associated with the branch of airport activity.

• (2) Deduction in the Canary Islands for investments in fixed assets: RD Law 15/2014, Fourth Transitional Provision, establishes a period of use of 15 years; Deduction for R&D&I in art. 39 of Act 27/2014, on Corporate Tax, establishes a period of use of 18 years. Deduction for donations: Act 49/2002, on the tax system of non-profit entities and tax incentives for sponsorship, establishes in its article 20 that the amounts corresponding to the non-deducted tax period may be applied in the settlements of tax periods ending in the immediate and successive 10 years.
• (3) Deduction with recoverability of 30% in amortisation adjustment: Corporate Tax Act: Transitional Provision Thirty-Seven does not establish a limit on its use. The €2,335 thousand of this deduction, recognised and applied to taxation in 2019, does not reduce the expense for tax in that period given that it was recognised in 2015. They include €2 thousand corresponding to ADI, as AENA S.M.E., S.A. is the head of the tax group.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

22.4 Pillar Two

The new Supplementary Tax as a result of transposing Pillar Two global minimum tax in Spain

As a large multinational group, the AENA Group is subject to the global anti-base erosion model rules of Pillar Two (also called GloBE Rules) approved by the Organisation for Economic Cooperation and Development (OECD)/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) on 14 December 2021, to which the member states of the European Union, among many others, adhered.

From the 2024 fiscal year, the group will have to pay a Supplemental Tax that will tax the profits obtained in any jurisdiction in which it operates where the effective tax rate, calculated at the jurisdictional level, is less than the minimum rate of 15%.

At the current date, the legislation of Pillar Two is in the process of approval in Spain, and it is expected to enter into force at the beginning of the fiscal year 2024 with retroactive effects as of 1 January 2024. Therefore, as at 31 December 2023, the group has no impact related to the rules of Pillar Two on its current tax expense for the fiscal year 2023.

On the other hand, the group applies the exception to recognise and disclose information on deferred tax assets and liabilities related to Pillar Two income taxes.

Adaptation to the Supplementary Tax

The AENA Group has made the explicit commitment to apply the OECD guidelines of Pilar Two. It is aligned with the principles and actions proposed by the OECD and is working on the analysis of the impact of the new Pilar Two rules, in order to establish a compliance and control and management system, which allows it to adapt to the regulations in a timely manner.

In this sense, although the Group's analysis is still ongoing, considering the existing regulatory framework, an estimated calculation has been made for the Supplementary Tax derived from the application of the Pillar Two rules. Based on the most recent tax returns, the Country-by-Country Report and the financial statements of the Group's constituent companies, and on this basis and subject to unforeseen events, no equity impact is expected from the application of the model rules, since there is an effective tax rate of at least 15% in place and/or there is a relevant presence of personnel and equipment that imply the exclusion of income subject to the Supplemental Tax in each of the jurisdictions in which the group operates.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

23. Revenue and expenses

23.1 Distribution of the net turnover

The Company's activity is carried out geographically within Spain, having obtained the following revenue in the fiscal years 2023 and 2022, which are detailed below:

		2023			2022
Thousands of euros	Contractual revenue	Formalised discounts (Note 4.5.2)	Total	Contractual revenue	Formalised discounts (Note 4.5.2)	Total
Airport services	4,302,712	(21,420)	4,281,292	3,598,080	(17,445)	3,580,635
Aeronautical services	2,768,254	-	2,768,254	2,367,379	-	2,367,379
Aeronautics - Airport Charges	2,686,445	-	2,686,445	2,293,529	-	2,293,529
Landing/Air Transit Service/ Meteorological Service	744,744	-	744,744	598,456	-	598,456
Parking facilities	46,373	-	46,373	43,497	-	43,497
Passengers	1,192,304	-	1,192,304	952,365	-	952,365
Boarding airbridges	89,448	-	89,448	77,114	-	77,114
Security	414,849	-	414,849	338,845	-	338,845
Handling	115,017	-	115,017	93,821	-	93,821
Fuel	29,747	-	29,747	25,291	-	25,291
Catering	10,122	-	10,122	8,456	-	8,456
Recovery of COVID-19 costs, Act 2/2021	43,841	-	43,841	155,684	-	155,684
Other aeronautical services (1)	81,809	-	81,809	73,850	-	73,850
Commercial services	1,534,458	(21,420)	1,513,038	1,230,701	(17,445)	1,213,256
Leases	36,068	-	36,068	34,557	-	34,557
Specialty shops	133,835	(1,047)	132,788	90,617	-	90,617
Duty-Free Shops	411,139	-	411,139	332,928	-	332,928
Food and beverage	325,007	(4,455)	320,552	243,622	119	243,741
Car rental	184,669	8	184,677	148,390	(51)	148,339
Car parks	180,191	-	180,191	146,423	-	146,423
Advertising	24,481	-	24,481	23,868	(16,837)	7,031
VIP services (2)	118,966	(7)	118,959	82,792	(127)	82,665
Other commercial revenue (3)	120,102	(15,919)	104,183	127,504	(549)	126,955
Real estate services	105,475	-	105,475	86,423	-	86,423
Leases	18,483	-	18,483	17,141	-	17,141
Land	34,486	-	34,486	27,536	-	27,536
Warehouses and hangars	6,824	-	6,824	6,546	-	6,546
Cargo logistics centres	29,068	-	29,068	21,555	-	21,555
Real Estate Operations	16,614	-	16,614	13,645	-	13,645
Total Net Turnover – Airport Services	4,408,187	(21,420)	4,386,767	3,684,503	(17,445)	3,667,058

(1) Includes Counters, 400 Hz usage, Fire Service, Left Luggage and Other Revenue.

(2) Includes VIP lounge rental, VIP packages, other lounges, fast-track and fast-lane.

(3) Includes commercial operations (banking services, vending machines, telecommunications, baggage laminating machines, etc.), commercial supplies, use of lounges, and filming and recordings.

During 2023, there was a 19.6% increase in the Company's turnover as a result of increased traffic at airports in the national network.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

A significant part (44.0%) of aeronautical service revenues as at 31 December 2023 is concentrated in three customers, with revenues figures of €512 million, €398 million and €316 million respectively (31 December 2022: €395 million, €334 million and €261 million respectively, with 30% of the revenue figure from airport services).

During the fiscal year 2023, revenue has been recorded for variable payments received from operating leases for the amount of €1,426 million (2022: €1,201 million).

23.2 Supplies

The breakdown of the heading 'Supplies' for the fiscal years 2023 and 2022 is as follows:

	Thousands of euros
	2023	2022
Purchases of other supplies	370	231
Impairment of other supplies	1,178	-
Works performed by other companies	160,328	161,492
Total	161,876	161,723

The works performed by other companies correspond mainly to communications, navigation and surveillance (CNS), air traffic management (ATM) and aeronautical information services (AIS) provided by ENAIRE under the agreements signed with this entity (Note 12), which amount to €121,223 thousand (2022: €123,060 thousand). This heading also includes the expenses derived from the agreement signed with the Spanish Meteorological Agency (AEMET) for the provision of meteorological services to the airport network managed by Aena (Note 12) for the amount of €12,205 thousand (2022: €11,994 thousand), and the services provided by the Ministry of Defence derived from the agreement signed with it (Note 4.21), amounting to €9,687 thousand (2022: €8,664 thousand).

23.3 Staff costs

The staff costs in the fiscal years 2023 and 2022 are broken down as follows:

	Thousands of euros
	2023	2022
Wages, and salaries and compensation	344,291	325,150
Social Security paid by the company and other social expenses	140,518	128,403
Contributions to work commitments	1,973	1,977
Provision surplus for compensation and other benefits	(9,171)	(9,579)
Others	707	622
Total	478,318	446,573

Staff costs in 2023 are higher than those of 2022, mainly a result of the salary revision implemented for the year 2023 as provided for in Act 31/2022, of 23 December, on General State Budgets for the year 2023. This law establishes a 2.5% increase in salaries, plus an additional 0.5% increase linked to the development of harmonised consumer price indices (IPCA) and another supplementary 0.5% increase linked to the performance of the gross domestic product (GDP). By Resolution of the Secretariat of State for Public Service, the Council of Ministers Agreement of 3 October 2023 has been published, approving the aforementioned salary increase of 0.5%, linked to the development of the IPCA. On 30 January 2024, the GDP for the year 2024 was published at 2.5% and therefore complying with the requirements for the 0.5% payment linked to GDP. The impact of these measures on social security—along with the increase in headcount, the increase in pay associated with performance, and the entry into force of the Intergenerational Equity Mechanism (MEI)—explain the increase in costs associated with social security, and in the opposite direction, of the increase in the surplus provision of remuneration and the decrease in the contribution to labour commitments.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

23.4 External services

The breakdown of this heading in the fiscal years 2023 and 2022 was as follows:

	Thousands of euros
	2023	2022
Leases and royalties	6,085	5,485
Repairs and maintenance	289,238	267,407
Independent professional services	62,308	46,875
Insurance premiums	14,462	13,126
Bank services	986	2,210
Advertising and public relations	13,076	6,577
Utilities	162,104	283,213
Security and surveillance services	218,676	183,912
Other services	199,242	165,718
Total	966,177	974,523

The 'Repairs and maintenance' heading mainly includes repairs of airport infrastructures, maintenance of installations (including the SATE system [automatic baggage handling system]) and cleaning of the buildings and passenger terminals.

Utilities relate mainly to lighting, water and telephone expenses.

Under the heading 'Other services', the most relevant services are car park management services, VIP lounges, assistance services for passengers with reduced mobility, airbridge management, baggage trolley collection and public information services.

Operating expenses have increased due to the increase in fixed structural costs resulting from the increase in traffic during the fiscal year 2023, the increased prices in new contracts, and the greater scope of operating services to comply with regulations and quality standards established in the current Airport Regulation Document. Affected by this casuistry are the services of security, PRM, maintenance, cleaning, VIP lounge management and public information, among others.

The decrease in supply expenses is mainly due to the significant decrease in the price of electricity in the Spanish airport network (87.4 €/kWh in 2023 compared to 167.7 €/kWh in 2022), with the price stabilising during fiscal year 2023. The amount of this item included in supplies amounted to €146 million in 2023 compared to €266.7 million recorded in 2022 (Note 5.1.1).

Other changes are due to an increased need for professional services for innovation projects, commercial and real estate business development, and investment projects and, in the case of advertising, the branding campaign carried out in several waves during the fiscal year.

23.5 Taxes

The balance in Taxes primarily corresponds to the amounts paid in local taxes, mainly property tax (IBI [Impuesto sobre Bienes Inmuebles]) and Economic Activities Tax (IAE [Impuesto sobre Actividades Económicas]).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

23.6 Financial results

The financial results obtained in the fiscal years 2023 and 2022 have been the following:

		Notes	Thousands of euros
			2023	2022
Finance income			112,487	15,976
From marketable securities and other financial instruments
- From group and associated companies	12		43,351	5,208
- From interest on expropriations	21		-	73
- From third parties			58,719	8,642
Capitalisation of finance expenses	6	7	10,417	2,053
Finance expenses			(186,779)	(88,588)
- For debts with group and associated companies	12		(93,560)	(37,047)
- For debts with third parties			(123,493)	(29,694)
- Derivatives	15	19.3	32,779	(20,927)
- From interest on expropriations	21		(668)	-
- For the updating of provisions			(1,837)	(920)
Exchange differences			(5)	(6)
Impairment and net gain or loss on disposals of financial instruments			-	9,386
Impairment of stakes in Group companies	11		-	9,386
FINANCIAL RESULT			(74,297)	(63,232)

In this chapter, the main changes in the fiscal year 2023 compared to 2022 are the following:

• As for finance income, there has been an increase in the revenue from marketable securities of group companies (€38,143 thousand) mainly derived from the new financing granted to ADI during the fiscal year 2023 (Note 11). In the finance income heading of marketable securities and other third-party financial instruments, the increase in interest rates has led to an increase in the interest received for the time deposits made (€50,004 thousand). Lastly, the increase in the activation of finance expenses is mainly due to the contracting of new financing of investment projects during the fiscal year, together with the increase in capitalizable finance expenses due to the increase in interest rates already mentioned.
• The increase in 'Finance expenses for debts with group companies' and 'Finance expenses for debts with third parties' is the result of an increase in the financial debt and in the interest rates.
• Finance income recognised under the heading 'Derivatives' is due to the increase in interest rates with respect to the hedging interest. (Note 15 and Note 19.3)
• In the fiscal year 2022, the reversal of the impairment of the stake in the group company Sociedad Concesionaria del Aeropuerto Internacional de la Región de Murcia, S.A. was recorded for the amount of €9.4 million (Note 11).

23.7 Provision surpluses

Of the total amount of €7,556 thousand (2022: €4,942 thousand) included in the 'Provision surpluses' heading of the 2023 profit and loss account, €7,134 thousand correspond to favourable resolutions in settlements of local taxes that were in dispute (2022: €2,259 thousand) and €422 thousand corresponds to provision surpluses for liabilities of different natures (commercial contracts, court rulings that modify the amount of the dispute, etc.) (2022: €2,683 thousand).

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

23.8 Other profit/(loss) – net

	Thousands of euros
	2023 2022
Other profit/(loss) – net	6,733	(56,482)

In fiscal year 2023, this heading includes collection of surcharges for delays and constraints. The decrease in the expense recorded in this heading is due mainly to the reduction in the exceptional expenses incurred by Aena as a result of the measures taken for the control, containment and forecasting of the pandemic, both in airport facilities, as well as in staff and health protection.

Royal Decree-Law 21/2020, of 9 June, states that under the framework of DORA, Aena will have the right to recover the costs incurred as a consequence of collaborating with the health authorities and of the remaining operational safety and hygiene measures that must be adopted as a consequence of the COVID-19 pandemic. The estimated amount of recoverable costs incurred by the Ultimate Parent Company in 2022 amounted to €40 million. No recoverable amount is estimated in 2023.

In fiscal year 2022, this heading also included seizure of guarantees and bonds, as well as collection of surcharges for delays and constraints; the losses mainly included indemnities and allocations to provisions for risks.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

24.Other information

24.1 Employee information

The number of AENA S.M.E., S.A. employees, at the end of the fiscal years 2023 and 2022, by category and gender, was as follows:

	31 December 2023			31 December 2022
Job category	Men	Women	Total	Men	Women	Total
Senior Management	5	6	11	5	6	11
Executives and graduates	1,159	973	2,132	1,125	931	2,056
Coordinators	859	367	1,226	871	375	1,246
Technicians	2,968	1,537	4,505	2,876	1,447	4,323
Support staff	218	295	513	206	246	452
Total	5,209	3,178	8,387	5,083	3,005	8,088

The above figures include 1,010 temporary employees, at the end of the fiscal year 2023 (2022: 752).

The average number of AENA S.M.E., S.A. employees, during the fiscal years 2023 and 2022, by category and gender, was as follows:

	Year 2023			Year 2022
Job category	Men	Women	Total	Men	Women	Total
Senior Management	5	6	11	5	6	11
Executives and graduates	1,139	947	2,086	1,096	899	1,995
Coordinators	867	372	1,239	857	370	1,227
Technicians	2,962	1,510	4,472	2,850	1,427	4,277
Support staff	216	277	493	205	236	441
Total	5,189	3,112	8,301	5,013	2,938	7,951

The above figures include, on average, 924 temporary employees (2022: 634).

As of 31 December 2023, AENA S.M.E., S.A. had 117 employees with disabilities (2022: 115).

24.2 Remuneration of directors and Senior Management

Remuneration received during the fiscal years 2023 and 2022 by Directors and Senior Management of the Company, classified by category, was as follows (in thousands of euros):

		Year 2023		Year 2022
Type	Senior Management	Board of Directors	Total	Senior Management	Board of Directors	Total
Salaries	1,676		1,676	1,515	-	1,515
Allowances	17	132	149	24	128	152
Pension plans	10		10	10	-	10
Insurance premiums	7		7	7	-	7
Total	1,710	132	1,842	1,556	128	1,684

The Board of Directors of AENA S.M.E., S.A. was made up of 14 members (7 men and 7 women) at 31 December 2023 (2022: 9 men and 6 women).

The figure for Senior Management Salaries includes €376 thousand (2022: €333 thousand) corresponding to the salaries and wages of the Chairman-CEO and the Executive Vice-Chairman (formerly the Managing Director of Airports), who are also members of the Board of Directors.

The compensation received during the fiscal year 2023 corresponds to the compensation received by AENA S.M.E., S.A. for ten senior management positions and by the Chairman-CEO. In addition, the Directors and Senior Management have not been granted advances or credits, nor have obligations been assumed on their behalf as collateral, nor have civil liability insurance premiums been paid for damages caused by acts or omissions in exercising the position.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

24.3 Transactions unrelated to ordinary traffic or in non-market conditions carried out by the Company's Directors

During the fiscal years 2023 and 2022, the Directors did not carry out transactions with the Group nor with Group companies outside of the ordinary course of business or under conditions other than market conditions.

24.4 Shareholdings and positions held and activities carried out by members of the Board of Directors in other similar companies

During the fiscal years 2023 and 2022, the members of the Board of Directors had not held any ownership interests in the share capital of Companies that directly engage in activities that are identical, similar or complementary in nature to the corporate purpose of the Company. In addition, no activities that are the same, similar or complementary to the activities constituting the Company's corporate purpose have been carried out or are currently being carried out.

As of 31 December 2023 and 2022, there are no members of the Board of Directors that hold directorship or executive positions at other Group companies, with the following exceptions:

• Mr Maurici Lucena Betriu is Chairman of the Board of Directors of Aena International Development, S.M.E., S.A.
• Mr Javier Marín San Andrés is the CEO of Aena, Desarrollo Internacional, S.M.E., S.A. and Chairman of the Board of Directors of Aeroportos do Nordeste do Brasil, S.A. (ANB) as well as of Bloco De Onze Aeroportos do Brasil (BOAB).
• The Deputy Secretary of the Board of Directors, Mr Pablo Hernández-Lahoz Ortiz, is Secretary of the Board of Directors of Aena Desarrollo Internacional, S.M.E., S.A.

None of the persons associated with the members of the Board of Directors hold any stake whatsoever in the share capital of Companies, and hold no position and fulfil no duties within any Company with the same, similar or supplementary corporate purpose as the Company.

In order to avoid situations of conflict with the interests of the Company, during the fiscal year, directors who have held positions on the Board of Directors have complied with the obligations set out in article 228 of the Consolidated Text of the Corporate Enterprises Act. Likewise, both they and the persons related to them have refrained from incurring in the cases of conflict of interest envisaged in article 229 of said Act, and no authorisation in this respect has been requested by any of them during the current or previous fiscal year, up to the date of preparation of these consolidated annual accounts.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

25. Audit fees

The company that audits the annual accounts, KPMG Auditores, S.L., has charged professional fees and expenses during the fiscal years ended on 31 December 2023 and 31 December 2022, according to the following details:

	Thousands of euros
	2023	2022
Audit services	219	215
Other verification services required by current legislation	44	44
Other services	113	77
Total	376	336

Other verification services required by current legislation and other services correspond to assurance services on regulatory compliance, and services of procedures agreed on financial information provided by KPMG Auditores, S.L. to AENA S.M.E. S.A. during the fiscal years ended 31 December 2023 and 31 December 2022. No tax services have been performed during the fiscal years ended 31 December 2023 and 31 December 2022.

The amounts included in the above table include all the fees for services rendered during the fiscal years 2023 and 2022, regardless of when they were invoiced.

26. Guarantees, commitments and other sureties

The bank guarantees provided to various Institutions as of 31 December 2023 amounted to €17,657 thousand (31 December 2022: €17,647 thousand).

Most of these guarantees were presented as a requirement of state public authorities or Autonomous Communities at the time the administrative request for the installation of Photovoltaic Solar Plants (PVSP) in several network airports was submitted. The sureties guarantee Aena's obligations for access to the electrical power grid.

The Company's directors do not expect them to generate significant liabilities.

27. Environmental commitments

The Company's management, faithful to its commitment to preserve the environment and to the quality of life around it, has been making investments in this area, which allow it to minimise the environmental impact of its actions, and protect and improve the environment.

As of 31 December 2023, property, plant and equipment included environmental investments totalling €590.3 million, with accumulated depreciation of €320.5 million (2022: investments of €567.1 million and depreciation of €305.7 million).

Investments of an environmental nature made during the fiscal year 2023, which include the items incorporated into the Company's equity in order to be used for the duration of their activity, whose main purpose is to minimise the environmental impact, and protect and improve the environment, including the control, prevention, reduction or elimination of future pollution from the company's operations, have risen to €47,349 thousand (2022: €19,814 thousand), according to the following breakdown:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Thousands of euros
	2023	2022
Adolfo Suárez Madrid Barajas Airport	7,258	2,537
Barcelona-El Prat Josep Tarradellas Airport Palma de Mallorca	6,264	274
Airport	3,756	5,673
Bilbao Airport	2,739	333
Valencia Airport	2,262	340
Tenerife Sur Airport	2,115	693
Alicante-Elche Airport Málaga-Costa del Sol	2,011	2,513
Airport César Manrique	1,554	425
Lanzarote Airport Santiago-Rosalía de	1,547	428
Castro Airport	1,292	127
Gran Canaria Airport	1,152	437
Sevilla Airport Tenerife Norte-Ciudad	1,036	143
de La Laguna Airport	783	81
A Coruña Airport	697	450
Reus Airport F.G.L. Granada-Jaén	670	256
Airport	529	42
Menorca Airport	507	475
Other airports	11,177	4,587

The profit and loss accounts Total 47,349 19,814 of the fiscal years 2023 and 2022 include the following environmental expenses, broken down by category:

	Thousands of euros
	2023	2022
Repairs and maintenance	7,338	9,184
Independent professional services	2,827	2,717
Other environmental services	3,470	3,164
Total	13,635	15,065

The environmental provisions and contingencies are outlined in Note 21. The environmental assessment legislation (currently Act 21/2013) requires that certain AENA S.M.E., S.A. projects are submitted to an environmental impact assessment (particularly runway extensions exceeding 2,100 metres) and are finalised by the formulation of the corresponding environmental impact statements by the Ministry for Environmental Transition. Such statements contain the obligation to develop and execute Sound Insulation Plans (SIP).

As of 31 December 2023, a total of 28,791 houses and buildings have been soundproofed in application of the Sound Insulation Plans (2022: 27,574 houses). This highlights 12,922 houses in the surroundings of the Adolfo Suárez Madrid-Barajas airport (2022: 12,922 houses), 3,231 at Alicante-Elche Airport (2022: 3,180 houses), 4,247 houses at Valencia Airport (2022: 3,953 houses), 2,100 at Bilbao Airport (2022: 1,681), 1,118 at Tenerife Norte-Ciudad de La Laguna Airport (2022: 1,099 houses), 1,441 at Palma de Mallorca Airport (2022: 1,176) and 814 at Málaga-Costa del Sol Airport (2022: 814 houses).

Likewise, in accordance with the resolutions of the Ministry for Environmental Transition for which environmental impact statements are drawn up for the Company's airports, the preventative, corrective and compensatory measures cited in the preventative environmental impact studies and in the aforementioned Environmental Impact Statements are being carried out. Thus, a series of conditions are being fulfilled, primarily with the following: the protection of the hydrological and hydrogeological system; soil protection and conservation; air quality protection; acoustic protection; protection of the flora, fauna and natural habitats; and the protection of the cultural heritage, service restoration and livestock trails, location of cliffs, loan zones, landfills and auxiliary facilities.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

27.1 Information on greenhouse gas emission allowances

Until January 2021, Aena had eight airports affected by the regulations of the Business with Rights of Emissions Regulation, which were the following: Barcelona-El Prat Josep Tarradellas Airport, Palma de Mallorca Airport, Alicante-Elche Airport, Valencia Airport, Málaga-Costa del Sol Airport, Fuerteventura Airport, Gran Canaria Airport and Tenerife Sur Airport. As of 1 January 2021, the exclusion of the Regime for the airports of Alicante-Elche Airport, Valencia Airport, Málaga-Costa del Sol Airport, Fuerteventura Airport, Gran Canaria Airport and Tenerife Sur Airport entered into force, for complying with the conditions of the law to obtain it. Therefore, these airports are only required to prepare the Annual Emissions Report and submit it for verification, to demonstrate to the competent bodies that they continue to be low emissions facilities, and that, therefore, they continue to comply with the requirements of the exclusion granted. Therefore, in 2023 (with assignment, purchase and delivery of rights in 2022) there are only two airports in the network under the Business with Rights of Emissions Regime: Barcelona-El Prat Josep Tarradellas Airport and Palma de Mallorca Airport. And in the same way as in previous years, before 31 March 2023, the assignment of rights corresponding to fiscal year 2023 will be received. Some of the exclusion resolutions granted include an annual commitment to reduce emissions for the next five years, wherefore airports that exceed the maximum annual emissions set in such commitments must deliver the excess emissions in the form of emission allowances (EUA). Specifically, the airports that have the reduction commitment included in their exclusion resolution are: Alicante-Elche Airport, Valencia Airport, Málaga-Costa del Sol Airport, Fuerteventura Airport, Gran Canaria Airport and Tenerife Sur Airport, of which after the 2022 calculation and verification (carried out in February 2023) it was found that both Fuerteventura and Tenerife Sur had exceeded the maximum emissions set by the competent bodies for the fiscal year 2023: Tenerife Sur Airport by 22 TCO2 and Fuerteventura Airport by 7 TCO2. As a result, the necessary allowances for the four centres (Barcelona-El Prat Josep Tarradellas Airport, Palma de Mallorca Airport, Fuerteventura Airport and Tenerife Sur Airport) were purchased in the purchase of emission allowances in 2023.

As regards the types of allowances assigned, all airports are assigned emissions allowances of the EUA type, which must be acquired in the auction market. In addition, the Barcelona-El Prat Josep Tarradellas Airport was granted the free assignment, so that in 2023 it received 1,532 free allowances (2022: 1,532 free allowances).

At the end of the fiscal year 2023, inventories (Note 17) are recorded for the amount of €193 thousand corresponding to 2,074 greenhouse gas emission allowances, acquired or received free of charge by Aena for consumption. Likewise, a provision of 5,868 allowances has been provided, valued at €584 thousand, which corresponds to the best estimate of the allowances consumed during 2023, and which amount to 6,942allowances. For this, it is estimated that the verified emission values of 2023 (to be verified in February 2024) are an average among the emission data in those airports of what was issued in 2021 and 2022, which would mean a total of 6,942 tonnes of CO2. In addition, the currently available balance is discounted in the accounts of both centres and, finally, the price of the one tonne of CO2 is estimated at the time of purchase (before 30 April 2023) at €120 per tonne of CO2. For the estimation of the price per tonne, it has been taken into account that the prices fluctuate and in addition to being a speculative market, it depends on factors such as the price of gas or electricity, the macroeconomic situation of the main issuing countries or the reduction policies, among other factors. Thus, its estimation is very complex, but the downward trend is very pronounced and consequently, at 30 January 2023, the price is €61.33 per tonne.

27.2 Environmental sustainability

Sustainability is therefore a strategic axis in the DORA 2022–2026. In this regard, this document sets the conditions for the sustainable development of the Aena airport network by establishing environmental standards that are articulated through six indicators. Through these indicators, specific aspects of the environmental performance of the network's airports can be quantified. The six indicators that define environmental standards are identified below:

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

	Indicator	Target level					Airports of Aena where it applies
		2022	2023	2024	2025	2026
ENV-01	Absolute emissions of CO2	-60%	-61%	-62%	-72%	-82%
				Compared to 2019
		2022	2023	2024	2025	2026
ENV-02	Energy efficiency	N/A	N/A	0.0%	-1.6%	-2.3%
				Compared to 2019		Aena airport network
ENV-03	Carbon neutrality	2022	2023	2024	2025	2026
		-60%	-69%	-70%	-80%	-100%
				Compared to 2019
		2022	2023	2024	2025	2026
ENV-04	Water consumption	99%	98%	97%	96%	95%
				Compared to 2021
			Average of the differences
	Noise levels		(Ld and Le) <1 dB and of the differences (Ln)	<1 dB	Airports with a system for monitoring noise and flight paths
ENV-05			Maximum value of the differences
			(Ld and Le) <1 dB and of the differences (Ln)	<2 dB
Compared to the previous year
		2022	2023	2024	2025	2026
ENV-06	Non-hazardous waste collected	101%	102%	103%	104%	105%	Aena airport network

Compared to 2021

The DORA II establishes relevant investments as those that, without having been considered strategic, are related to air navigation, the endowment of capacity in infrastructure, energy efficiency and savings, the promotion of the use of renewable energies and efforts in terms of innovation.

On the other hand, in 2021, Aena prepared its Climate Action Plan (hereinafter, the Plan or PAC) approved by the Board of Directors and submitted to a consultative vote at the Annual General Meeting, becoming the first Spanish company and one of the few listed companies in the world, to report to its shareholders on its decarbonisation plan.

The key objectives of the Plan are the following:

• To achieve carbon neutrality by 2026 and be Net Zero Carbon by 2040 (0 net emissions), which represents investments close to €550 million (period 2021–30).
• To act as an industry leader in pushing forward the reduction of emissions associated with airlines and handling agents. The Plan reinforces internal monitoring mechanisms that ensure the development and periodic monitoring of initiatives (e.g. Operating work group).
• To comply with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB), including information regarding corporate governance, strategy, risk and opportunity management, metrics and their performance.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

Regarding the programmes that are included in the PAC and their scope, these are detailed below:

a) CARBON NEUTRALITY (Scope 1 and 2): To become a carbon-neutral airport operator (by 2026) and lay the foundations for achieving Net Zero Carbon (by 2040).

b) SUSTAINABLE AVIATION (Scope 3): To act as a driving force for other agents in the aviation sector to accelerate their decarbonisation.

c) COMMUNITY AND SUSTAINABLE VALUE CHAIN (Scope 3): To improve the sustainability of the environment by collaborating with suppliers, tenants, transport agents and the community.

In relation to the strategic objective of the Carbon Neutrality programme, relative to own emissions (scope 1 and 2), the reduction and offsetting objectives are as follows:

These objectives have also been included in Aena's Strategic Plan 2022-26.

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

28.Contingencies

28.1 Contingent liabilities

At the end of the 2023 and 2022 fiscal years, the Company maintains claims and legal disputes against it, as a natural consequence of the normal course of its business, which the Management considers possible obligations and, therefore, considers with the support of its lawyers that an outflow of resources is not likely to occur.

28.1.1 Commercial activities

As a consequence of the health crisis caused by COVID-19, some lessees filed claims based on the legal doctrine of 'clausula rebus sic stantibus' requesting that the Courts consider the need to adopt an injunctive relief with the purpose of ensuring that Aena refrains from invoicing the rents agreed in the contracts and, at the same time, suspend their right to execute the guarantees available in the event of any non-payment, among other requests. All the foregoing is put forth with the consequent ordinary claim.

In relation to the risk rating of these proceedings, having seen the progress and procedural development of this legal dispute (judgments of the Provincial Courts are available in which they unanimously apply DF7 to resolve the conflict and consider this rule to be constitutional), the management of the Company has moved to consider it appropriate to classify the commercial risk derived from this dispute as probable, setting up a provision for liabilities in the fiscal year 2023 for the amount of €11.8 million (see Note 21.3). However, with regard to disputes concerning commercial tenants to which, in the Company's opinion, DF7 does not apply and where a ruling has not yet been handed down, the risk of the proceedings being decided against Aena's interests is still considered to be possible in such cases. At the date of drawing up these annual accounts, the Company estimates that the judgments upholding the commercial lessees' claims could result in lower revenues in the range of €2 million and €15 million.

28.1.2 Other contingencies

Court proceedings against airport charges. CNMC resolutions

First.- Proceedings against the airport charges for the fiscal year 2022

On 3 February 2022, the National Commission on Financial Markets and Competition (CNMC) notified Aena of charge dispute proceedings brought against it by IATA Spain and Ryanair DAC against the decision of Aena's Board of Directors of 21 December 2021 setting the airport charges for the fiscal year 2022.

On 24 March 2022, the CNMC decided to dismiss the disputes and declared the update approved by Aena's Board of Directors applicable ('Resolution of 2022 disputes')

Likewise, on 17 February 2022, the CNMC issued the Resolution on the supervision report regarding the airport charges applicable by Aena S.M.E., S.A. in the fiscal year 2022 ('Supervision report').

In relation to these resolutions:

Ryanair DAC filed a contentious-administrative appeal with the National Court against the Resolution on the 2022 disputes. At the time of drawing up these Annual Accounts, both appeals are pending resolution.

Ryanair DAC, Emirates and Lufthansa filed contentious-administrative appeals with the National Court against the Supervision report. At the time of drawing up these Annual Accounts, the appeals filed by Emirates and Lufthansa have ended without judgment and the appeal filed by Ryanair DAC is pending resolution.

The Management of the Company considers that the resolution of these proceedings will not have a significant impact on its financial statements.

Second.- Proceedings against the airport charges for the fiscal year 2023

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

On 23 September 2022, the CNMC notified Aena of the initiation of the charge dispute proceedings brought by ALA, Ryanair and IATA against the decision of Aena's Board of Directors dated 26 July 2022 setting the airport charges for the fiscal year 2023.

On 15 December 2022, the CNMC decided to partially uphold the aforementioned disputes ('Resolution of 2023 disputes'). Ryanair DAC and IATA filed contentious-administrative appeals with the National Court against this Resolution.

At the time of drawing up these Annual Accounts, both appeals are pending resolution. The Management of the Company considers that the resolution of these proceedings will not have a significant impact on its financial statements.

Third.- Proceeding of disputes against the airport charges for the fiscal year 2024

On 25 July 2023, the Board of Directors approved the 2024 airport charges.

Ryanair DAC, IATA and ALA have filed a charge dispute with the CNMC against the approval of the 2024 airport charges.

On the date of drawing up these Annual Accounts, the airport charge proceedings are pending resolution by the CNMC. The Management of the Company considers that the resolution of these proceedings will not have a significant impact on its financial statements.

28.2 Contingent assets

28.2.1 Request for the modification of DORA 2017-2021

On 8 March 2021, Aena requested that the Directorate-General of Civil Aviation (hereinafter DGAC) modify DORA 2017– 2021 to recognise the economic imbalance provided for in Article 27 of Act 18/2014, of 15 October, considering the concurrence of the exceptional circumstances referred to in that regulation. The COVID-19 pandemic is an exceptional and unpredictable event and has caused an air traffic reduction of more than 10%, as established in the aforementioned article.

Through the resolution of 16 December 2021, the DGAC agreed not to initiate the procedure to modify the DORA as it did not consider all the exceptional circumstances referred to in Article 27 to be present and it had not observed elements in the DORA that could be modified to obtain the requested compensation. In view of this denial, Aena filed an appeal, which was also dismissed by the General Secretariat of Transport and Mobility on 23 March 2022.

Aena considers that all of the requirements provided for in the aforementioned Article 27 for the modification of the DORA and the concession of the economic rebalancing provided for in said regulation are met. Therefore, proceedings have been initiated and are still pending before the Madrid High Court of Justice, currently in the conclusions phase.

This amendment request is also in line with the measures adopted by the regulators of various European countries in which the economic imbalance suffered by airport managers in connection with this health crisis has been recognised.

29.Subsequent events

From 31 December to the date of drawing up the Annual Accounts, the following relevant events have occurred:

• On 18 January 2024, the Constitutional Court declared unconstitutional several measures established in Royal Decree-Law 3/2016, which introduced tax measures aimed at consolidating public finances and other urgent social measures. The implications of the nullity of this ruling at source have not had a significant accounting impact for the Spanish companies of the Aena Group, having been considered a subsequent event Type II that does not imply an adjustment at the close of fiscal year 2023.
• On 2 February 2024, the CNMC issued its resolution in supervision of airport charges for 2024, stating that the IMAAJ to be applied is €10.35 per passenger, which represents a change of 4.09% in the charges compared to

Annual Report for the fiscal year ended 31 December 2023

(Amounts in thousands of euros unless otherwise stated)

those of 2023.

This change, applicable as of 1 March 2024, of the IMAAJ for 2024 in relation to the IMAAJ for 2023 (set at €9.95 per passenger), is a consequence of the adjustments that the DORA establishes in relation to the incentive for the performance of quality levels, the implementation of investments, the traffic structure corresponding to the end of 2022 and the effect of the P index (calculated in accordance with the methodology established in Royal Decree 162/2019 of 22 March and established in CNMC Resolution of 14 July 2022). Prior to the issuance of the CNMC's resolution, on 30 January 2024, the Council of Ministers approved a P index for the annual review of Aena's 2024 charges of +3.5% (Note 4.16.1).

Management Report Aena S.M.E., S.A 2023

Annexes

1. Key highlights

Aena S.M.E., S.A. has recorded a volume of 282.3 million passengers in 2023, representing year-on-year growth of 16.2% and a recovery of 103.0% of the traffic volume of 2019.

Revenue stood at €4,502.0 million. It has increased by 22.8% and by €834.7 million compared to 2022 (€3,667.3 million).

Revenue from aeronautical activity amounted to €2,768.3 million (+16.9% and +€400.9 million compared to 2022). Revenue from commercial activity was €1,513.0 million (+24.7% year-on-year and +€299.8 million compared to 2022).

Commercial activity has significantly improved on pre-pandemic levels. Revenue from fixed and variable rents were 21.8% higher than in 2019 and revenue per passenger grew from €4.25 in 2019 to €5.04 in 2023.

Total sales from commercial activities were 17.3% higher than in 2019 and total sales per passenger were 14.0% higher than in 2019. This pattern is observed across all business lines.

Sales in duty-free shops have increased by 14.9% compared to 2019, with the increase in average spending of the British passenger being most notable, as well as the positive effect that the application of the duty-free regime has had on revenue from this activity after Brexit, which entails higher percentages of variable income. Sales in food and beverage have increased, mainly driven by the general upward trend in consumption and by price increases. In the car rental line, the improvement is due to the increase in contract prices as well as the recovery of passenger traffic at tourist airports. In VIP services, the recovery in revenue reflects an improved penetration rate, as well as higher prices. The optimisation of available parking spaces, combined with improved pricing policies, has led to an increase in car park revenue at all airports in the network.

On 27 February 2023, the Board of Directors of Aena approved the awarding of the tender for the renovation of the food and beverage offer at Adolfo Suárez Madrid-Barajas Airport.

The results of the tender show a 41% increase in the minimum annual guaranteed rent (MAG) awarded in 2024 over the MAG rents in 2019 and the average variable rent percentage has increased from 31.2% in 2019 to 32.2% in 2023.

On 30 May 2023, the Board of Directors of Aena approved the award of the management of duty-free shops at 23 airports (grouped into 4 lots) and on 25 July for those corresponding to the Adolfo Suárez Madrid-Barajas Airport and those of Catalonia. The contract term for the 6 tendered lots, which cover 27 airports in the network in Spain, is 12 years.

In total, the bids submitted improve the 2023 rents by 16.3% (current MAG rents offered for 2024 compared to the MAG rents of 2023).

In December 2023, the Board of Directors of Aena approved the start of the process of renewing the driverless car rental service at 38 airports in the network, compared to the current 34. The spaces offered are more than 21,500 and the licences increase from the current 170 to 218. The new contracts will last between 5 and 7 years.

It is one of the largest tenders for driverless car rentals in the world—an activity with an estimated turnover of €10,000 million during the term of the contracts.

Current contracts expire on 31 October 2024.

Operating expenses (supplies, staff costs and other operating expenses) amounted to €1,820.8 million. They increased by 3.3% year-on-year (€57.6 million).

Other operating expenses were €1,180.6 million, having increased by 2.2% year on year (€25.7 million). The expense of electricity accounted for €146.3 million, reflecting a year-on-year decrease of 45.1% (€120.4 million). Excluding the cost of electricity, other operating expenses have increased year-on-year by 16.4% (€146.1 million). Compared to 2019, they increased by €162.1 million (18.6%).

The pre-tax result reached €1,870.4 million (€1,110.4 million in 2022) and the fiscal year 2023 was closed with a record net profit of €1,436.3 million (€864.9 million in 2022).

The Board of Directors has agreed to propose the distribution of a gross dividend of €7.66 per share charged to the 2023 profit of Aena S.M.E., S.A. This dividend represents an increase of 61.3% compared to the dividend for the fiscal year 2022 (€4.75 per share).

With regard to the net cash generated by operating activities, it has reached €2,089.4 million (€1,696.3 million in 2022).

In relation to the investment programme, the sum paid amounted to €553.5 million (€555.8 million in 2022).

With regard to the financial position, the accounted net financial debt-to-EBITDA ratio has been reduced to 2.12x from 3.05x at 31 December 2022.

The availability of cash and credit facilities amounts to €4,776.2 million.

On 29 June 2023, Aena S.M.E., S.A. executed a sustainable syndicated credit facility ('Sustainability-Linked RCF') for the amount of €2,000 million that was signed by 14 national and international financial institutions, and cancelled the existing credit facilities for the amounts of €650 million and €800 million maturing in 2024 and 2025, respectively.

On 13 October 2023, Aena S.M.E., S.A. made its first bond issuance in the fixed income market for an amount of €500 million, maturing in October 2030. The transaction closed with a 4.25% coupon. This issuance was made under the Euro Medium-Term Note (EMTN) programme that the Company registered with the National Securities Market Commission (CNMV) on 27 July 2023 for an amount of €3,000 million.

The rating agency Fitch assigned the issuance a rating of 'A-' and Moody's agency assigned a rating of 'A3'. These ratings are in line with Long-Term Issuer Default Ratings assigned by Aena S.M.E., S.A.

In relation to the DORA II (Airport Regulation Document for the period 2022–26), on 2 February 2024, the CNMC issued its resolution on the supervision of Aena's airport charges for 2024, stating that the IMAAJ to be applied is €10.35 per passenger, which results in a 4.09% change in the charge compared to the IMAAJ for 2023.

This change, applicable as of 1 March 2024, of the IMAAJ for 2024 in relation to the IMAAJ for 2023 (set at €9.95 per passenger), is a consequence of the adjustments that the DORA establishes in relation to the incentive for the performance of quality levels, the implementation of investments, the traffic structure corresponding to the end of 2022 and the effect of the P index (calculated in accordance with the methodology established in Royal Decree 162/2019 of 22 March and established in CNMC Resolution of 14 July 2022).

Prior to the issuance of the CNMC's resolution, on 30 January 2024, the Council of Ministers approved a P index for the annual review of Aena's 2024 charges of +3.5%.

Aena's share price fluctuated throughout the period, ranging from a minimum of €120.65 to a maximum of €165.60. As at 31 December 2023, it closed at €164.10, which represents a revaluation in share price of 39.9% from 31 December 2022—much higher than the performance of the IBEX 35, which recorded a gain of 22.8% in the same period.

2. Activity figures

The airports of Aena S.M.E., S.A. have closed 2023 with a historic record of passenger numbers.

The number of passengers reached 282.3 million, representing a recovery of 103.0% compared to the volume of 2019.

On 28 February 2023, Aena communicated the upward revision of the 2023 traffic estimation scenarios across Spain's airport network, with passenger volume recovering estimated between 94% and 104% compared to 2019. Taking into account the evolution of traffic, the Company estimated to close 2023 with around 280 million passengers, which is equivalent to a 102% recovery of 2019 traffic, within the range provided.

Traffic recovery has improved throughout the year. In the first quarter of 2023, Aena S.M.E., S.A. airports recovered by 101.7%, in the second quarter 101.0%, in the third quarter 108.7% and in the last quarter they recovered by 101.4% compared to the same quarters of 2019.

However, air traffic remains sensitive to the economic and geopolitical context, as well as factors such as rising fuel prices or potential disruptions in air supply.

Among the airports in the network, the level of passengers reached in those with a greater component of leisure traffic stands out. In the Balearic Islands and the Canary Islands, the pre-pandemic figures have been exceeded, as well as in Alicante-Elche Airport and Málaga-Costa del Sol Airport. Other airports that have reported a record are the following: Bilbao Airport, Valencia Airport, Sevilla Airport, Santiago-Rosalía de Castro Airport, Seve Ballesteros-Santander Airport, San Sebastián Airport, Asturias Airport, Vitoria Airport, Melilla Airport and Son Bonet Airport, as well as Algeciras Heliport and Ceuta Heliport.

Domestic traffic has shown a higher level of recovery than international traffic. It reached 108.2% with respect to the pre-pandemic volume. International traffic has recovered by 100.6%.

With regard to aircraft operations, 101.9% of pre-pandemic flight numbers were recovered.

Cargo activity has continued to evolve positively. In 2023, 100.9% of the pre-pandemic volume has been recovered and a record high has been reached.

Data on traffic volume by airports and groups1 of airports

	Passengers			Aircraft			Cargo
Airports and Airport Groups	Millions 2023	% Change 2023/2022 (1)	Share 2023	Thousa nds 2023	% Change 2023/2022 (1)	Share 2023	Tonnes 2023	% Change 2023/2022 (1)	Share 2023
Adolfo Suárez Madrid-Barajas Airport	60.2	18.9%	21.3%	389.2	10.6%	16.2%	643,535	13.6%	59.6%
Barcelona-El Prat Josep Tarradellas Airport	49.9	19.9%	17.7%	319.0	12.5%	13.3%	156,485	0.6%	14.5%
Palma de Mallorca Airport	31.1	8.9%	11.0%	228.9	3.7%	9.5%	7,184	-5.4%	0.7%
Total Canary Islands Group	48.4	11.4%	17.2%	439.0	7.9%	18.3%	30,693	-1.8%	2.8%
Total Group I	79.0	17.9%	28.0%	605.1	9.0%	25.2%	39,097	2.8%	3.6%
Total Group II	11.6	18.1%	4.1%	185.8	8.7%	7.7%	130,959	2.4%	12.1%
Total Group III	2.0	20.7%	0.7%	230.3	4.2%	9.6%	71,723	-2.6%	6.6%
TOTAL AENA S.M.E., S.A.	282.3	16.2%	100.0 %	2,397.2	8.5%	100.0%	1,079,676	7.9%	100.0%

1Percentage changes are calculated for passengers, aircraft and kilogrammes.

		Passengers		Aircraft			Cargo
Airports and Airport Groups	Millions 2019	% Change 2023/19 (1)	Share 2019	Thousa nds 2019	% Change 2023/19 (1)	Share 2019	Tonnes 2019	% Change 2023/19 (1)	Share 2019
Adolfo Suárez Madrid-Barajas Airport	61.7	-2.5%	22.5%	426.4	-8.7%	18.1%	560,039	14.9%	52.4%
Barcelona-El Prat Josep Tarradellas Airport	52.7	-5.3%	19.2%	344.6	-7.4%	14.6%	176,798	-11.5%	16.5%
Palma de Mallorca Airport	29.7	4.7%	10.8%	217.2	5.4%	9.2%	9,022	-20.4%	0.8%
Total Canary Islands Group	45.0	7.6%	16.4%	410.7	6.9%	17.5%	37,225	-17.5%	3.5%
Total Group I	71.5	10.5%	26.1%	569.1	6.3%	24.2%	38,374	1.9%	3.6%
Total Group II	11.8	-1.2%	4.3%	179.1	3.7%	7.6%	183,420	-28.6%	17.1%
Total Group III	1.8	16.4%	0.6%	206.0	11.8%	8.8%	64,678	10.9%	6.0%
Total	274.2	3.0%	100.0 %	2,353.1	1.9%	100.0%	1,069,557	0.9%	100.0%

1Percentage changes are calculated for passengers, aircraft and kilogrammes.

¹ Canary Islands Group: El Hierro Airport, Fuerteventura Airport, Gran Canaria Airport, La Gomera Airport, La Palma Airport, César Manrique-Lanzarote Airport, Tenerife Norte-Ciudad de La Laguna Airport and Tenerife Sur Airport.

Group I: Alicante-Elche Airport, Bilbao Airport, Ibiza Airport, Málaga-Costa del Sol Airport, Menorca Airport, Santiago-Rosalía de Castro Airport, Sevilla Airport and Valencia Airport. Group II: A Coruña Airport, Almería Airport, Asturias Airport, F.G.L. Granada-Jaén Airport, Girona-Costa Brava Airport, Jerez Airport, Reus Airport, Seve Ballesteros-Santander Airport, Vigo Airport and Zaragoza Airport.

Group III: Albacete Airport, Algeciras Heliport, Badajoz Airport, Burgos Airport, Ceuta Heliport, Córdoba Airport, Huesca-Pirineos Airport, León Airport, Logroño-Agoncillo Airport, Madrid-Cuatro Vientos Airport, Melilla Airport, Pamplona Airport, Sabadell Airport, Salamanca Airport, San Sebastián Airport, Son Bonet Airport, Valladolid Airport and Vitoria Airport. On 9 January 2023, AIRM and the Santiago-Rosalía de Castro Airport became part of Group I, while Girona-Costa Brava Airport became part of Group II.

Data on traffic volume by geographic areas

Domestic traffic rose by 12.5% year on year while international traffic rose by 18.2%—both surpassing 2019 figures.

In 2023, domestic traffic showed a higher level of recovery (108.2%) than international traffic (100.6%).

Passenger traffic with Latin America, North America and Africa has exceeded 2019 volumes, while 100.1% of European traffic has recovered.

	Passengers (millions)			% Change	Share
Region	2023	2022	2019	2023/2022	2023/2019	2023	2022	2019
Europe (1)	164.3	140.8	164.2	16.7%	0.1%	58.2%	58.0%	59.9%
Spain	92.9	82.6	85.9	12.5%	8.2%	32.9%	34.0%	31.3%
Latin America	9.2	7.4	8.4	24.2%	10.0%	3.3%	3.1%	3.1%
North America(2)	7.0	5.8	6.8	21.3%	3.2%	2.5%	2.4%	2.5%
Africa	4.7	3.5	3.9	33.3%	20.2%	1.7%	1.4%	1.4%
Middle East	3.5	2.6	3.6	33.0%	-3.4%	1.2%	1.1%	1.3%
Asia and Others	0.7	0.1	1.4	378.7%	-51.5%	0.2%	0.1%	0.5%
Total	282.3	242.9	274.2	16.2%	3.0%	100.0%	100.0%	100.0%

(1) Excludes Spain.

(2) Includes USA, Canada and Mexico.

Data on traffic volume by country

The recovery reached 95.9% in the UK market and 91.4% in the German market compared to the pre-pandemic period.

Passenger traffic across Italy, France, the Netherlands, Portugal, Switzerland and Ireland has exceeded 2019 volumes.

	Passengers (millions)				% Change	Share
Country	2023	2022	2019	2023/2022	2023/2019	2023	2022	2019
Spain	92.9	82.6	85.9	12.5%	8.2%	40.6%	41.3%	38.9%
United Kingdom	42.2	36.5	44.0	15.6%	-4.1%	18.4%	18.3%	19.9%
Germany	26.6	23.9	29.1	11.3%	-8.6%	11.6%	12.0%	13.2%
Italy	18.0	14.2	16.3	26.3%	10.5%	7.9%	7.1%	7.4%
France	14.9	13.2	14.0	12.7%	5.8%	6.5%	6.6%	6.4%
Netherlands	9.4	8.4	8.8	11.2%	6.4%	4.1%	4.2%	4.0%
Portugal	7.0	5.4	5.7	29.3%	23.3%	3.0%	2.7%	2.6%
Switzerland	6.5	5.6	6.4	16.2%	2.2%	2.9%	2.8%	2.9%
Belgium	6.1	5.6	6.2	9.6%	-1.9%	2.7%	2.8%	2.8%
Ireland	5.4	4.5	4.6	20.0%	17.9%	2.4%	2.3%	2.1%
Total top 10	229.0	200.0	221.0	14.5%	3.6%	100.0%	100.0%	100.0%

Data on traffic volume by airlines

Ryanair has increased the number of passengers transported by 22.2% compared to the pre-pandemic period and the IAG Group by 7.3%. These airlines comprise a 51.4% share of the traffic volume during 2023.

	Passengers (millions)				% Change	Share
Airline	2023	2022	2019	2023/2022	2023/2019	2023	2022	2019
Ryanair	60.4	51.7	49.4	16.7%	22.2%	29.2%	28.9%	26.0%
Vueling	46.4	40.4	42.7	14.9%	8.5%	22.4%	22.6%	22.5%
Iberia	21.4	17.9	20.7	19.8%	3.7%	10.4%	10.0%	10.9%
Air Europa	16.9	14.4	19.0	17.6%	-11.3%	8.2%	8.0%	10.0%
EasyJet	15.2	13.4	17.6	13.6%	-13.6%	7.4%	7.5%	9.3%
Iberia Express	12.3	10.4	10.3	18.4%	19.0%	5.9%	5.8%	5.4%
Binter Group	9.6	8.6	7.7	11.3%	24.6%	4.6%	4.8%	4.1%
Jet2.com	9.0	8.2	8.0	10.6%	13.4%	4.4%	4.6%	4.2%
Air Nostrum	8.1	7.5	8.9	8.8%	-8.9%	3.9%	4.2%	4.7%
Eurowings	7.3	6.4	5.6	13.9%	30.3%	3.5%	3.6%	3.0%
Total top 10	206.6	178.8	190.0	15.6%	8.8%	100.0%	100.0%	100.0%

Low-cost airlines have recorded 173.8 million passengers and 9.7% more than in the pre-pandemic period. Their market share has grown from 57.8% in 2019 to 61.6% in 2023.

Aeronautical commercial incentive

Aena's Board of Directors has approved a new three-year incentive plan on 30 January 2024.

In the summer and winter seasons of 2024, 2025 and 2026, the following will be incentivised:

• New routes to destinations not served at airports of more than 3 million passengers, compared to the previous equivalent season and except on routes operated to Asia. The incentive consists of a refund of 100% of the passenger charge corresponding to the number of passengers of each company that initiates new routes.
• Growth in the number of passengers on routes to Asia, compared to the previous equivalent season. 100% of the passenger charge will be refunded for passengers corresponding to each company's contribution to growth.
• Growth in the number of passengers in airports of less than 3 million passengers. 100% of the passenger charge will be refunded for additional passengers in 2024, 2025 and 2026 with respect to the equivalent 2023 season.

The maximum number of passengers to be incentivised by each company is limited to the number of passengers in which the airline shows growth at the airport and across the total network.

Additionally, the incentive in force since 2019 for operating in the Algeciras and Ceuta Heliports is extended. It assumes a refund of 50% of the passenger and airport security fee, for all departing commercial passengers, if passenger traffic volume is maintained by at least 75% of that in the previous equivalent season.

3. Business lines

3.1 Airport segment

3.1.1 Aeronautical Regulated asset base

The average regulated asset base amounted to €9,560.1 million at the close of 2023.

2023 airport charges

On 24 November 2022, the CNMC issued its resolution in supervision of airport charges for 2023, stating that the IMAAJ to be applied is €9.95 per passenger, which represents a 0% change in the charges compared to those of 2022, and is applicable from 1 March. Said applicable IMAAJ includes €0.18 per passenger to recover the costs recognised by the CNMC in relation to the safety and hygiene measures adopted by Aena in response to COVID-19.

The 0% change of the 2023 IMAAJ compared to 2022 IMAAJ, set at €9.95 per passenger, is a consequence of the adjustments that the DORA establishes in relation to the incentive for the performance of quality levels, the implementation of investments, the traffic structure corresponding to the end of 2021, the effect of the P index (calculated in accordance with the methodology established in Royal Decree 162/2019 of 22 March and established in CNMC Resolution of 14 July 2022), as well as the recovery of part of the aforementioned COVID-19 costs.

The recovery of these costs corresponds to those recognised in the Resolution on the supervision of health and operational costs incurred by Aena as a result of the health crisis caused by COVID-19 in the period from October 2021 to March 2022, up to the limit that allows the effective change in the charges in 2023 to be 0%. €45.6 million is applied to the 2023 charge, leaving an amount of €16.6 million, duly capitalised, to be recovered in future fiscal years.

2024 airport charges

As indicated in section 12. Subsequent events after closing, on 2 February 2024, the CNMC issued its resolution on the supervision of Aena's airport charges for 2024, stating that the IMAAJ to be applied is €10.35 per passenger, which results in a 4.09% change in the charge compared to the IMAAJ for 2023.

This change, applicable as of 1 March 2024, of the IMAAJ for 2024 in relation to the IMAAJ for 2023 (set at €9.95 per passenger), is a consequence of the adjustments that the DORA establishes in relation to the incentive for the performance of quality levels, the implementation of investments, the traffic structure corresponding to the end of 2022 and the effect of the P index (calculated in accordance with the methodology established in Royal Decree 162/2019 of 22 March and established in CNMC Resolution of 14 July 2022). Prior to the issuance of the CNMC's resolution, on 30 January 2024, the Council of Ministers approved a P index for the annual review of Aena's 2024 charges of +3.5%.

Appeals against airport charges

In relation to the airport charges of 2022, on 3 February 2022, the CNMC notified Aena of the initiation of proceedings on the airport charges dispute filed by IATA Spain and Ryanair DAC against the decision of Aena's Board of Directors dated 21 December 2021 setting the airport charges for the fiscal year 2022. On 24 March 2022, the CNMC decided to dismiss the disputes and declared the update approved by Aena's Board of Directors applicable ('Resolution of 2022 disputes'). Likewise, on 17 February 2022, the CNMC issued the Resolution on the supervision report regarding the airport charges applicable by Aena S.M.E., S.A. in the fiscal year 2022 ('Supervision report').

In relation to these resolutions:

• Ryanair DAC filed a contentious-administrative appeal with the National Court against the Resolution on the 2022 disputes. At the time of drawing up the consolidated annual accounts for fiscal year 2023, the appeal is pending resolution.
• Ryanair DAC, Emirates and Lufthansa filed contentious-administrative appeals with the National Court against the Supervision report. At the time of drawing up the consolidated annual accounts for the year 2023, the appeals filed by Emirates and Lufthansa have

ended without judgment and the appeal filed by Ryanair DAC is pending resolution. The Management of Aena considers that the resolution of these procedures would not have a significant impact on the Group's consolidated financial statements.

In relation to the airport charges of 2023, on 23 September 2022, the CNMC notified Aena of the initiation of proceedings on the airport charges dispute brought by ALA, Ryanair and IATA against the decision of Aena's Board of Directors dated 26 July 2022 setting the airport charges for the fiscal year 2023. On 15 December 2022, the CNMC decided to partially uphold the aforementioned disputes ('Resolution of 2023 disputes'). Ryanair DAC and IATA filed contentious-administrative appeals with the National Court against this Resolution. At the time of drawing up the annual accounts of Aena S.M.E., S.A. for the fiscal year 2023, both appeals are pending resolution. The Management of the Company considers that the resolution of these proceedings will not have a significant impact on its financial statements.

In relation to the 2024 airport charges approved by the Board of Directors of Aena on 25 July 2023, Ryanair DAC, IATA and ALA have filed a dispute on the airport charges with the CNMC against the approval. On the date of drawing up the annual accounts of Aena S.M.E., S.A. for the fiscal year 2023, the airport charge proceedings are pending resolution by the CNMC. The Management of the Company considers that the resolution of these proceedings will not have a significant impact on its financial statements.

Thousands of euros	2023	2022	Change	% Change
Aeronautics - Airport Charges	2,686,446	2,293,529	392,917	17.1%
Passengers	1,192,305	952,365	239,940	25.2%
Landing/Air Transit Service/Meteorological Service	744,744	598,456	146,288	24.4%
Security	414,849	338,845	76,004	22.4%
Handling	115,017	93,821	21,196	22.6%
Boarding airbridges	89,448	77,114	12,334	16.0%
Parking facilities	46,373	43,497	2,876	6.6%
Recovery of COVID-19 costs, Act 2/2021	43,841	155,684	-111,843	-71.8%
Fuel	29,747	25,291	4,456	17.6%
Catering	10,122	8,456	1,666	19.7%
Other aeronautical services (1)	81,809	73,850	7,959	10.8%
Aeronautical services	2,768,255	2,367,379	400,876	16.9%

Revenue by commercial activity

(1) Includes counters, 400 Hz usage, fire service, left luggage and other revenue

Most of the revenue from the aeronautical activity across the airport network in Spain comes from the aviation services provided, mainly from the use of the airport infrastructure of airlines and passengers. This includes €2,686.4 million corresponding to the airport charges and €81.8 million corresponding to the rest of the airport services of Aena S.M.E., S.A.

The airport charges of Aena are regulated and its charges are established within the scope of the regulatory framework (Airport Regulation Document [DORA]). The heading 'Other airport services' includes those services provided whose charges are subject to private (unregulated) prices.

In 2023, the revenue from aeronautical activity reflects the improvement experienced by passenger traffic and the airlines' flight offer.

In general, revenue from public airport charges in 2023 include a change in the rate of +6.84%, excluding the recovery of the costs recognised by the CNMC in relation to the safety and hygiene measures adopted by Aena in response to COVID-19 (€0.18 per passenger to recover the €45.6 million recognised by the CNMC). The recovery of these costs, as of 1 March 2023, is reflected as revenue in the 'Recovery of COVID-19 costs – Act 2/2021' line in the above table.

Until February 2023, the charge decreased by 10.99% and on 1 March, the new charges for the year 2023 took effect, which represent a 6.84% increase (not including the effect on the charge of the recovery of COVID-19). The effect of this change on charges was +€113.1 million.

In 2023, there was a dilution in regulated revenue for the amount of €94.0 million (in 2022, a dilution amounting to €43.6 million was accumulated).

Commercial incentives have resulted in a lower revenue of €20.6 million (€38.7 million in 2022).

The rebates for connecting passengers amounted to €66.8 million (€56.7 million in 2022).

Individual Management Report | 2023

The expenses incurred as a result of the safety and hygiene measures adopted in response to COVID-19 decreased to €50.3 thousand in 2023 (€60.4 million in 2022).

During fiscal year 2023, the grant collected for the amount of €45.1 million, granted by the European Union Solidarity Fund to offset most of the expenses incurred by Aena in its efforts to mitigate the effects caused by the COVID-19 pandemic, which have not been transferred to the airport charges, has been recognised under the heading of 'Other operating revenue'.

Aeronautical activity

In terms of the development of aeronautical services at the network's airports, the following is worth noting:

In the field of cleaning service, new contracts have been initiated at several airports during the second half of 2023.

At Sevilla Airport and F.G.L. Granada-Jaén Airport, a new contract has been awarded for €1.9 million, +20.4% compared to the previous contract. At Fuerteventura Airport, La Gomera Airport and El Hierro Airports, a new contract has been awarded for €1.4 million, +30.7% compared to the previous contract. Both contracts have been awarded to Mitie Facilities Services for a term of one year (extendable for an additional annuity).

In addition, a new contract has been awarded for Ibiza Airport, Menorca Airport, Valencia Airport, Girona-Costa Brava Airport and Reus Airport for €5.2 million, +4.4% compared to the previous contract. This contract has been awarded to Optima Facility Services for a term of one year (extendable for an additional annuity). The contract start date is expected to be March 2024.

At Adolfo Suárez Madrid-Barajas Airport and Barcelona-El Prat Josep Tarradellas Airport, the new cleaning service began in the first half of 2023 (awarded in November 2022). The amount awarded for the 3 years of the contract amounts to €137.3 million, which is an increase of 2.8% compared to the previous contract.

In the area of maintenance, in May a new 2-year contract was awarded for the comprehensive maintenance, cleaning and gardening services at 9 of the 18 Group III airports (San Sebastián Airport, Vitoria Airport, Madrid-Cuatro Vientos Airport, Salamanca Airport, Valladolid Airport, León Airport, Albacete Airport, Logroño-Agoncillo Airport and Huesca-Pirineos Airport). The amount awarded amounts to €3.9 million, which is an increase of 4.6% compared to all previous contracts. The new service is firmly committed to digitisation and the automation of tasks with the aim of increasing the efficiency of services.

During the second half of 2023, digitalisation of network maintenance services has been advanced and more than 85% of services have been migrated to the new maintenance management tool. The Group III airports are scheduled to migrate in 2024. The automation of tasks has also advanced in order to measure various parameters required by regulations to increase service efficiency.

In relation to universal accessibility, progress has been made in the implementation of the Invisible Disabilities Badge, with the aim of improving the passenger experience and increasing their independence in airport facilities. The initiative is aimed at serving passengers with needs other than those offered by the Barrier-Free assistance service. This is a badge that is requested through the Aena website and allows airport staff to identify people who have difficulties in stressful or sensory-stimulated environments and who may need support. It was initially deployed at 11 airports, but due to the acceptance it has had, it has been expanded to a total of 17 airports. (See section 6.6.2. Infrastructures accessible to all, in Block B of the Consolidated Management Report).

With regard to the Barrier-Free assistance service, two new contracts have been awarded to 15 airports for a term of 2 years (extendable for an additional year). The service award amount for 14 airports (the Balearic Islands and Canary Islands, Málaga-Costa del Sol Airport, Sevilla Airport, Alicante-Elche Airport, Valencia Airport and Bilbao Airports) is €94.9 million, +32% compared to the previous contract. The amount of service award at Adolfo Suárez Madrid-Barajas Airport is €66.7 million for the term of two years, +42% compared to the previous contract.

The main causes of the increase in the cost of these services are: the upward trend in traffic volume, which is greater in passengers with reduced mobility given that its proportion to the total number of passengers increases with the years, and the salary increases included in the applicable agreement. It should be noted that the Barriers-Free assistance service served more than 2.1 million people in 2023 and is among the best rated in Aena.

In the field of ground handling services, once the 41 licenses for the provision of these services to third parties in the ramp handling category (at the 43 airports and two heliports of the network) have been assigned for the next 7 years, with the operations under the new contracts planned to start during the first quarter of 2024.

This is the largest tender for handling services in the world, whose result provides competitive solutions, adapted to current needs and their developments. Notable commitments have been made to improve both operational processes, with efficient resource management, as well as in other aspects such as sustainability and the implementation of new technologies that will promote the increase of operations and improve the overall experience at the network airports.

In the field of physical security, work has continued in the activities of coordinating the future deployment of the 'EU Entry/Exit System' together with the Secretary of State for Security and the National Police. The European Commission postponed the entry into force of this system to the last quarter of 2024 (date to be confirmed).

Aena has tendered the acquisition of the automated equipment necessary for the implementation of this system at the network airports, for an expected investment amount of €111.5 million over 2 years. Most of the tenders have now been awarded. Passport control support has also been awarded to the State Security Forces and Enforcement Bodies, worth €10 million per year for a period of 3 years.

As for security equipment, explosive detection equipment (EDS standard 3 [Explosive Detection Systems]) for the inspection of checked baggage in the hold is still being implemented, complying with regulatory requirements. 92.4% of the installation works for this equipment has been completed (equivalent to 223 pieces of equipment installed).

In addition, the purchase and installation of automated equipment for the inspection of carry-on baggage (EDSCB [Explosive Detection System for Cabin Baggage]), automated systems and 'Remote Screening' has been tendered, in the security filters of Adolfo Suárez Madrid-Barajas Airport, Barcelona-El Prat Josep Tarradellas Airport and Palma de Mallorca Airport, for an amount of €130.8 million. These will be implemented over the next 5 years.

In November, the private security service for the 46 airports and 2 heliports in the network has been awarded for an amount of €1,172 million and a period of 4 years (extendable for one year). This amount represents an increase with respect to the current contracts contemplated: the increases included in the collective bargaining agreement for the workers of the awarded companies (both security and service personnel), the expected increase in traffic, as well as the security services necessary to carry out the additional activities to those currently being considered by Aena in its Strategic Plan.

During the term of the contract, Aena will undergo a significant technological modernisation process. In addition to the installation of the EDS standard 3 equipment for the screening of checked baggage, security filters will be upgraded with the implementation of new technologies to speed up pre-boarding screening, increase security and improve the passenger experience.

With regard to the operational systems, work is underway to comply with the European Commission's Implementing Regulation (EU) 2021/116 on modernising air traffic management (ATM). This Regulation requires 18 European airports that have implemented the A-CDM (Airport Collaborative Decision Making) process, including Adolfo Suárez Madrid-Barajas Airport, Barcelona-El Prat Josep Tarradellas Airport and Palma de Mallorca Airport, to implement an additional level of integration to optimise their operations. These airports will be upgraded to the 'Advanced Network Integrated Airport' (ANI) level.

Adolfo Suárez Madrid-Barajas Airport is in the process of being evaluated. They will be followed by evaluations at Barcelona-El Prat Josep Tarradellas Airport and Palma de Mallorca Airports to obtain certification.

The A-CDM system allows for information to be exchanged between all the agents involved in the operation of a flight to improve the overall efficiency of airport operations, reduce taxi times and therefore fuel consumption and emissions through the sharing of updated information of an operational nature. (See section 2.2. Aena and the climate emergency, in Block B of the Consolidated Management Report).

Finally, it should be noted that Aena has awarded the electricity supply contract for the network's airports for the period 2024–28.

The purpose of this contract is to supply energy with certified 100% renewable origin, as well as manage the production of the selfconsumption photovoltaic plants that will gradually be incorporated into the airport network.

In this contract, a percentage of the consumption has been set at a fixed price during the 5 years, in order to mitigate the risk of market volatility. The percentage selected represents 36% of the total estimated annual consumption for 2024. This percentage will increase as own photovoltaic plants come into service.

3.1.2 Commercial activity

Revenue by commercial activity

Thousands of euros	2023	2022	Change	% Change
Duty-Free Shops	411,139	332,928	78,211	23.5%
Food and beverage	320,552	243,741	76,811	31.5%
Car rental	184,677	148,339	36,338	24.5%
Car parks	180,191	146,423	33,768	23.1%
Specialty shops	132,788	90,617	42,171	46.5%
VIP Services (1)	118,959	82,665	36,294	43.9%
Leases	36,068	34,557	1,511	4.4%
Advertising	24,481	7,031	17,450	248.2%
Other commercial revenue (2)	104,183	126,955	-22,772	-17.9%
Commercial services	1,513,038	1,213,256	299,782	24.7%

(1) Includes VIP lounge rental, VIP packages, other lounges, fast-track and fast-lane.

(2) Includes commercial operations (banking services, baggage wrapping machines, telecommunications, vending machines, etc.),

commercial supplies, use of rooms and filming and recordings.

The revenue for the period (commercial and real estate services) includes the items summarised in the following table:

		Revenue		2023/2022	% Change	% Change 2023/2019
Thousands of euros	2019	2022	2023	€ million	%	€ million	%
Total business activity	1,315,599	1,334,207	1,580,853	246,646	18.5%	265,254	20.2%
Revenue from Fixed and Variable Rents invoiced	1,170,556	1,201,173	1,426,002	224,829	18.7%	255,446	21.8%
MAG revenue	145,043	133,034	154,851	21,817	16.4%	9,808	6.8%
Straight-line deferrals and other adjustments	-	-34,527	37,660	72,187	-209.1%	37,660	-
Total	1,315,599	1,299,680	1,618,513	318,833	24.5%	302,914	23.0%

Commercial activity has significantly improved on pre-pandemic levels. Revenue from fixed and variable rents increased by 21.8% compared to 2019 and revenue per passenger increased from €4.25 in 2019 to €5.04 in 2023, as shown in the table on the page 13.

Total sales from commercial activities were 17.3% higher than in 2019 and total sales per passenger were 14.0% higher than in 2019. This pattern is observed across all of the commercial business lines.

Sales in duty-free shops have increased by 14.9% compared to 2019, with the increase in average spending of the British passenger being most notable, as well as the positive effect that the application of the duty-free regime has had on revenue from this activity after Brexit, which entails higher percentages of variable income. The positive sales results at the tourist airports of Alicante-Elche, Málaga-Costa del Sol and the islands (Balearic and Canary Islands) are especially noteworthy. Among airports in the Canary Islands, Tenerife Sur Airport and César Manrique-Lanzarote Airport stand out, receiving a higher number of British passengers.

With regard to food and beverage, sales have increased by 25% compared to 2019, mainly driven by the general upward trend in consumption and by price increases. Sales growth with respect to 2019 at Alicante-Elche Airport (+36%), Málaga-Costa del Sol Airport (+34%), Tenerife Sur Airport (+34%), Palma de Mallorca Airport (+33%) and Gran Canaria Airport (+28%) stand out.

In specialty shops, sales in 2023 increased +3.6% compared to 2019, reflecting the activity of the new stores that opened during 2022. At airports where the commercial offer is complete and the 2019 traffic level has recovered, sales have performed well, such as at Málaga-Costa del Sol Airport (+37%), at Palma de Mallorca airport (+25%) and at Tenerife Sur airport (+45%).

In the car rental line, sales have surpassed the 2019 figures by 22.5% due to the increase in contract prices as well as the recovery of passenger traffic at tourist airports, mainly at Canary Island airports and at Adolfo Suárez Madrid-Barajas Airport, Valencia Airport, Málaga-Costa del Sol Airport and Palma de Mallorca Airport.

In VIP services, the recovery in revenue reflects an improved penetration rate, as well as higher prices.

Parking revenue has increased due to the optimisation of available parking spaces and improved pricing policies.

The lines in the table above are broken down by commercial activity and correspond to the following:

• Revenue from Fixed and Variables Rents (commercial and real estate) that is, excluding MAG rents.
• MAG revenue.

Revenue from Fixed and Variable Rents:

Thousands of euros	9M 2019	9M 2022	9M 2023	% Change 2023/2022	% Change 2023/2019	Q4 2019	Q4 2022	Q4 2023	% Change 2023/2022		% Change 2023/2019	2019	2022	2023	% Change 2023/2022	% Change 2023/2019
Duty-free shops	212,438	212,356	265,966	25.2%	25.2%	66,631	72,786	80,042	10.0%		20.1%	279,069	285,142	346,008	21.3%	24.0%
Specialty shops	67,223	42,661	72,436	69.8%	7.8%	19,772	16,700	23,693	41.9%		19.8%	86,995	59,361	96,128	61.9%	10.5%
Food and beverage	148,693	151,218	183,807	21.6%	23.6%	43,284	48,063	56,429	17.4%		30.4%	191,977	199,281	240,235	20.6%	25.1%
Car rental	120,027	139,591	141,276	1.2%	17.7%	34,292	40,495	43,377	7.1%		26.5%	154,318	180,086	184,653	2.5%	19.7%
Car parks	119,272	106,151	134,557	26.8%	12.8%	39,217	40,273	45,635	13.3%		16.4%	158,489	146,423	180,192	23.1%	13.7%
VIP services	58,939	60,233	88,275	46.6%	49.8%	19,846	22,772	31,061	36.4%		56.5%	78,785	83,005	119,336	43.8%	51.5%
Utilities	43,441	63,601	52,583	-17.3%	21.0%	14,566	19,047	16,728	(12.2)%		14.8%	58,007	82,649	69,312	(16.1)%	19.5%
Real estate services	80,760	87,892	98,532	12.1%	22.0%	31,832	29,439	35,703	21.3%		12.2%	112,592	117,331	134,235	14.4%	19.2%
Advertising	12,053	10,108	14,389	42.4%	19.4%	4,744	3,962	5,996	51.3%		26.4%	16,796	14,070	20,385	44.9%	21.4%
Commercial operations	24,886	25,777	26,099	1.2%	4.9%	8,641	8,049	9,420	17.0%		9.0%	33,527	33,825	35,519	5.0%	5.9%
Total	887,731	899,588	1,077,920	19.8%	21.4%	282,825	301,585	348,082	15.4%		23.1%		1,170,556 1,201,173 1,426,002		18.7%	21.8%
Euros per passenger	9M 2019	9M 2022	9M 2023	Difference 2023/2022	Difference Q4 2023/2019 2019	Q4 2022	Q4 2023	Difference 2023/2022	Difference 2023/2019	2019	2022	2023	Difference 2023/2022	% Change. Diff. 2023/2022	Difference 2023/2019	% Change. Diff. 2023/2019
Duty-free shops	0.99	1.15	1.23	0.07	0.23 1.09	1.22	1.20	-0.02	0.12	1.01	1.17	1.22	0.05	4.4%	0.21	20.5%
Specialty shops	0.31	0.23	0.33	0.10	0.02 0.32	0.28	0.36	0.08	0.03	0.32	0.24	0.34	0.10	39.4%	0.02	7.4%
Food and beverage	0.69	0.82	0.85	0.03	0.15 0.71	0.81	0.85	0.04	0.14	0.70	0.82	0.85	0.03	3.7%	0.15	21.6%
Car rental	0.56	0.76	0.65	-0.11	0.09 0.56	0.68	0.65	-0.03	0.09	0.56	0.74	0.65	-0.09	-11.8%	0.09	16.3%
Car parks	0.56	0.58	0.62	0.04	0.06 0.64	0.68	0.69	0.01	0.05	0.58	0.60	0.64	0.04	5.9%	0.06	10.5%
VIP services	0.28	0.33	0.41	0.08	0.13 0.32	0.38	0.47	0.08	0.14	0.29	0.34	0.42	0.08	23.7%	0.14	47.2%
Utilities	0.20	0.35	0.24	-0.10	0.04 0.24	0.32	0.25	-0.07	0.01	0.21	0.34	0.24	-0.09	-27.8%	0.03	16.1%
Real estate services	0.38	0.48	0.45	-0.02	0.08 0.52	0.49	0.54	0.04	0.02	0.41	0.48	0.47	-0.01	-1.6%	0.06	15.9%
Advertising	0.06	0.05	0.07	0.01	0.01 0.08	0.07	0.09	0.02	0.01	0.06	0.06	0.07	0.01	24.7%	0.01	18.0%
Commercial operations	0.12	0.14	0.12	-0.02	0.00 0.14	0.14	0.14	0.01	0.00	0.12	0.14	0.13	-0.01	-9.6%	0.00	3.0%

Individual Management Report | 2023

MAG revenue:

Thousands of euros	9M 2019	9M 2022	9M 2023	% Change 2023/2022	% Change 2023/2019	Q4 2019	Q4 2022	Q4 2023	% Change 2023/2022	% Change 2023/2019	2019	2022	2023	% Change 2023/2022	% Change 2023/2019
Duty-free shops	49,736	29,202	19,782	-32.3%	-60.2%	14,950	18,584	32,508	74.9%	117.4%	64,686	47,786	52,291	9.4%	-19.2%
Specialty shops	21,080	10,476	18,669	78.2%	-11.4%	6,730	6,879	7,061	2.7%	4.9%	27,810	17,355	25,370	48.3%	-7.5%
Food and beverage	24,169	29,034	39,554	36.2%	63.7%	8,198	13,932	16,929	21.5%	106.5%	32,367	42,965	56,483	31.5%	74.5%
Car rental	41	16	6	-62.6%	-85.9%	3	6	39	538.3%	1,208.4%	44	22	45	107.2%	1.1%
VIP services	78	24	7	-72.3%	-91.6%	-29	-20	1	-105.4%	-103.7%	49	4	8	103.6%	-84.3%
Real estate services	357	410	1,370	233.7%	283.2%	161	257	763	196.5%	373.0%	519	668	2,133	219.4%	311.1%
Advertising	8,859	7,215	3,777	-47.7%	-57.4%	387	1,702	-16	-100.9%	-104.0%	9,247	8,917	3,761	-57.8%	-59.3%
Commercial operations	7,440	12,367	12,036	-2.7%	61.8%	2,881	2,950	2,364	-19.8%	-17.9%	10,321	15,317	14,401	-6.0%	39.5%
Total	111,761	88,743	95,200	7.3%	-14.8%	33,282	44,290	59,651	34.7%	79.2%	145,043	133,034	154,851	16.4%	6.8%

Euros per passenger	9M 2019	9M 2022	9M 2023	Difference 2023/2022	Difference 2023/2019	Q4 2019	Q4 2022	Q4 2023	Difference 2023/2022	Difference 2023/2019	2019	2022	2023	Difference 2023/2022	% Change. Diff.	Difference 2023/2019	% Change. Diff.
Duty-free shops	0.23	0.16	0.09	-0.07	-0.14	0.24	0.31	0.49	0.18	0.24	0.24	0.20	0.18	-0.01	-5.8%	-0.05	-21.4%
Specialty shops	0.10	0.06	0.09	0.03	-0.01	0.11	0.12	0.11	-0.01	0.00	0.10	0.07	0.09	0.02	27.6%	-0.01	-10.1%
Food and beverage	0.11	0.16	0.18	0.02	0.07	0.13	0.23	0.25	0.02	0.12	0.12	0.18	0.20	0.02	13.1%	0.08	69.6%
Car rental	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	78.3%	0.00	-1.7%
VIP services	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	75.2%	0.00	-84.8%
Real estate services	0.00	0.00	0.01	0.00	0.00	0.00	0.00	0.01	0.01	0.01	0.00	0.00	0.01	0.00	174.8%	0.01	299.6%
Advertising	0.04	0.04	0.02	-0.02	-0.02	0.01	0.03	0.00	-0.03	-0.01	0.03	0.04	0.01	-0.02	-63.7%	-0.02	-60.5%
Commercial operations	0.03	0.07	0.06	-0.01	0.02	0.05	0.05	0.04	-0.01	-0.01	0.04	0.06	0.05	-0.01	-19.1%	0.01	35.6%
Total	0.52	0.48	0.44	-0.04	-0.08	0.54	0.74	0.90	0.15	0.35	0.53	0.55	0.55	0.00	0.2%	0.02	3.8%

Individual Management Report | 2023

Annexes

Commercial activities

Duty-free shops

Sales have performed very positively in 2023 and have increased by 14.9% compared to 2019, driven by the increase in average spending by British passengers, followed by US passengers, at tourist airports.

The positive sales results at Alicante-Elche Airport, Málaga-Costa del Sol Airport and the islands (Balearic and Canary Islands) are especially noteworthy. Among the airports of the Canary Islands, Tenerife Sur Airport and César Manrique-Lanzarote Airport stand out, which receive a greater number of British passengers, for whom the duty-free tax regime that entails higher percentages of variable income applies to them after Brexit.

During the January–October period, the contracts signed with Word Duty Free in 2013 divided into three lots have been in force2. In that period, most notable was the revenue from lots 2 and 3, which surpassed the MAG rents. These contracts ended on 31 October 2023 and recognised a MAG rent of €320 million between January and October.

On 1 November 2023, new duty-free shops management contracts were initiated for a 12-year period.

On 30 May 2023, the Board of Directors of Aena approved the award of the management of duty-free shops at 23 airports (corresponding to 4 lots) and on 25 July for those corresponding to the Adolfo Suárez Madrid-Barajas Airport and those of Catalonia. The new contracts group 27 network airports in Spain into six lots:

• Andalusia-Mediterranean: awarded to Avolta (formerly Dufry).
• Canary Islands: awarded to Canariensis.
• Balearic Islands: awarded to Avolta.
• Northern Airports (Galicia, Asturias, Cantabria and Basque Country): awarded to Lagardère.
• Catalonia: awarded to Avolta.
• Madrid: awarded to Avolta.

In the period November–December 2023, sales from Andalusia-Mediterranean, the Canary Islands and the Balearic Islands surpassed sales for the same months of 2019 and those from Northern Airports remained on course. Variable rents for all contracts have been lower than MAG rents.

The MAG rents of the new contracts in 2024 improves the MAG rents of 2023 by 16.3%.

Specialty shops

2023 sales have surpassed 2019 levels by +3.6%.

At airports where the commercial offer is complete and the 2019 traffic level has recovered, sales have performed well, such as at Málaga-Costa del Sol Airport (+37%), at Palma de Mallorca airport (+25%) and at Tenerife Sur airport (+45%).

The effect of the new premises that were opened during 2022 is already reflected in the revenues of 2023 and premises have continued to bid to recover the offer to customers, incorporating new concepts such as the 'Pop Up' and a leisure offers that includes, among others, casual food and beverage, fashion and accessories, mono-brand toy stores and licence merchandising, comics or manga.

The new leisure concept was implemented in T1 at Barcelona-El Prat Josep Tarradellas Airport and, given its acceptance, has been exported to other airports in the network. In Module C of the Palma de Mallorca Airport, the opening is planned in the first quarter of 2024 and in the Alicante-Elche Airport it is currently in tender.

The spaces for delicatessen shops were renovated in 2022 to include a tasting bar and throughout 2023 this model has been implemented in practically the entire airport network due to its positive acceptance.

Since November 2021, 211 tenders have been put out, including 288 premises. The MAG rents from the awarding represent an overall recovery, compared to 2019, of 112% in 2023, 124% in 2024 and 129% in 2025.

Since January 2023, 60 tenders have been put out, including 66 premises. The MAG rents from the awarding of these tenders represent an overall recovery, compared to 2019, of 176% in 2023, 153% in 2024 and 144% in 2025.

The most significant awards correspond to:

² Lot 1: Adolfo Suárez Madrid-Barajas Airport, Almería Airport, Málaga-Costa del Sol Airport, F.G.L. Granada-Jaén Airport, Sevilla Airport and Jerez Airport, Bilbao Airport, A Coruña Airport, Asturias Airport, Santiago-Rosalía de Castro Airport and Seve Ballesteros-Santander Airport. Lot 2: Barcelona-El Prat Josep Tarradellas Airport, Girona-Costa Brava Airport, Reus Airport, Alicante-Elche Airport, Palma de Mallorca Airport, Ibiza Airport, Menorca Airport and Valencia

Airport. Lot 3: Canary Islands.

Annexes

• The renewal of practically the entire commercial offer in T4 at Adolfo Suárez Madrid-Barajas Airport and in T1 at Barcelona-El Prat Josep Tarradellas Airport.
• All the premises in module A of the Palma de Mallorca Airport, taking into account the new layout.

Food and beverage

Sales have increased by 25.2% compared to 2019, driven by the increase in prices, by the general upward trend in consumption (well above the market trend outside airports) and by the attractiveness of new brands.

Sales growth with respect to 2019 at Alicante-Elche Airport (+36%), Málaga-Costa del Sol Airport (+34%), Tenerife Sur Airport (+34%), Palma de Mallorca Airport (+33%) and Gran Canaria Airport (+28%) stand out. At Adolfo Suárez Madrid-Barajas Airport and Barcelona-El Prat Josep Tarradellas Airport, sales have increased by 12% and 15% respectively, despite a slower recovery in traffic compared to 2019 levels.

On 27 February 2023, the Board of Directors of Aena approved the awarding of the tender for the renovation of the food and beverage offer at Adolfo Suárez Madrid-Barajas Airport. The new offer occupies nearly 20,000 m² distributed over 55 premises in terminals T123, T4 and T4S, which began operating in May.

With this tender, Aena has achieved an important variety of food and beverage operators and the presence of national and international brands of recognised prestige, which provide an additional guarantee of quality, variety of products, type of cuisine and service.

The successful bidders have been Áreas (35 locations), Pansfood (10), SSP (2) and McDonald's (2) and Cafestore that starts its activity at the airport (6 locations).

The results of the tender show a 41% increase in the MAG rents awarded in 2024 over the 2019 MAG rents and the average variable rent percentage has increased from 31.2% in 2019 to 32.2% in 2023.

Since November 2021, 119 tenders have been put out, including 193 premises and the installation of food and beverage vending machines. The MAG rents from the awarding of these tenders represent an overall recovery, compared to 2019, of 124% in 2023, 132% in 2024 and 146% in 2025.

Since January 2023, 45 tenders have been put out, including 62 premises (28 awarded that include 40 premises) and the installation of food and beverage vending machines. The MAG rents from the awarding of these tenders represent an overall recovery, compared to 2019, of 118% in 2023, 121% in 2024 and 135% in 2025.

Car rental

Revenue from fixed and variable rents from this activity has increased by 19.7% compared to 2019, due to the increase in contract prices, as well as the recovery of passenger traffic and the positive performance of sales at the Canary Island airports and at other airports such as Palma de Mallorca Airport, Adolfo Suárez Madrid-Barajas Airport, Málaga-Costa del Sol Airport and Valencia Airport.

Sales were 22.5% higher than the figures of 2019.

The number of driverless car rental licences closed the year in 166, after the award to OK Mobility for contracts at Santiago-Rosalía de Castro Airport, Barcelona-El Prat Josep Tarradellas Airport and Tenerife Norte-Ciudad de La Laguna Airport.

In December 2023, the Board of Directors of Aena approved the start of the process of renewing the driverless car rental service at 38 airports in the network, compared to the current 34. The spaces offered will be more than 21,500 and the licences increase from the current 170 to 218. The new contracts will last between 5 and 7 years.

It is one of the largest tenders for driverless car rentals in the world—an activity with an estimated turnover of €10,000 million during the term of the contracts.

Current contracts expire on 31 October 2024.

In relation to the services of vehicles with drivers (VTC) in 2023, activity has begun at Adolfo Suárez Madrid-Barajas Airport, Barcelona-El Prat Josep Tarradellas Airport, Málaga-Costa del Sol Airport, Bilbao Airport and Palma de Mallorca Airport.

Car parks

Revenue from this activity has increased by 13.7% compared to 2019, due to the optimisation of available parking spaces and improved pricing policies.

Reservation operations have gone from 36% of revenue in 2019 to 51% in 2023. On the other hand, the number of gate operations has decreased due to the fall in business passengers, which has allowed a greater number of seats to be made available for operations by reservation.

New infrastructures have been added during the year: express parking lots at Ibiza Airport, express arrivals parking lots at Alicante-Elche Airport, preferential parking lots at Málaga-Costa del Sol Airport and long-term parking lots at Santiago-Rosalía de Castro Airport.

VIP services

Revenue from this line has increased by 51.5% compared to 2019.

Individual Management Report | 2023

84% of revenue is for lounges (€99 million), which have increased by 42% compared to 2019, driven by the growth in the number of customers and the increase in average contract prices. Specifically, more than 4.5 million customers have been recorded, 24% higher than 2019 and a penetration rate of 1.67% has been reached (+20% compared to 2019). The average price was up 14% compared to 2019.

The area for the VIP lounges has increased with respect to 2019 (+14%), due to the opening of a new lounge at Gran Canaria Airport, Fuerteventura Airport, Menorca Airport and Vigo Airport; the expansions made in the airport lounges of Barcelona-El Prat Josep Tarradellas Airport, Adolfo Suárez Madrid-Barajas Airport (Plaza Mayor lounge), Ibiza Airport, Palma de Mallorca Airport and Tenerife Norte-Ciudad de La Laguna Airport; and due to the remodelling of the lounge at Valencia Airport.

Revenue from the Fast-track/Fast-lane business (€12.8 million) increased by 129% compared to 2019. The average price was up 65% with respect to 2019 (+9% year-on-year). New Fast-lane services were opened in July at Ibiza Airport, Vigo Airport, and Tenerife Norte-Ciudad de La Laguna Airport; at Fuerteventura Airport in November and at Bilbao Airport in December.

The leased businesses, Air Rooms and airline lounges, have recorded €2.8 million in revenue (+39% compared to 2019 and +11% year-onyear).

The rest of the businesses, Meet & Assist and meeting rooms, accounted for 0.4% of revenue in 2023.

Advertising

Advertising sales have performed favourably and surpassed 2019 figures by 18.5% and 2022 sales by 46.2%.

Revenue from variable and fixed rents from this activity increased by 21.4% compared to 2019.

The increase in sales is driven by extensive advertising campaigns carried out throughout the year on large digital screens within the terminals, as well as advertising and other types of exhibitors in the outside area of some terminals.

Other commercial revenue

This heading includes various commercial activities offered at the network's airports, such as financial services, luggage wrapping machines, other vending machines and regulated services (pharmacies, tobacconists, lottery vendors, etc.).

Financial services, which represent 81% of the total revenue from variable and fixed income reflected in this heading, have increased by 21% compared to 2019.

Marketing and digital business

Marketing campaigns and new digital solutions aimed at driving business revenue and delivering a better customer shopping experience have been launched throughout 2023.

Marketing campaigns have focused on Aena-managed businesses (parking lots and VIP services) and actions aimed at boosting the commercial offering of airports. With regard to these actions, the commercial signage has been updated and joint actions have been developed with the commercial operators at more than 20 airports in the network with some actions having high media impact.

With regard to car parks, the campaigns have focused on communication and the promotion of online bookings, prices and the new valet parking brand (YAY [Ya Aparco Yo]). Regarding VIP services, actions have been taken to increase direct sales to passengers, as well as to increase brand awareness of the products from this line (lounges, Fast-track/Fast-lane, Meet & Assist, etc.) and of a new concept, Relax&Go lounges.

In the digital area, during 2023 new functionalities have been deployed on the Aena App focused on improving the customer experience and the online purchase of its own and third-party services.

In addition, the website and apps of Aena's new valet service have been launched, and new airports and brands have been added to the Food to Fly and Shop to Fly marketplaces.

Finally, it should be noted that the loyalty programme, Aena Club, already has more than 2.1 million members. A new 3-tiered subscription programme (BASIC, PLUS, VIP) has been implemented that allows members to obtain special pricing and discounts on parking lots and VIP services, and work is underway to launch a financial card that further strengthens the relationship with our customers.

3.2 Real estate services segment

Revenue by commercial activity

Thousands of euros	2023	2022	Change	% Change
Land	34,486	27,536	6,950	25.2%
Cargo logistics centres	29,068	21,555	7,513	34.9%
Leases	18,483	17,141	1,342	7.8%
Real Estate Operations	16,614	13,645	2,969	21.8%
Warehouses and hangars	6,824	6,546	278	4.2%
Real estate services	105,474	86,423	19,051	22.0%

The activity of the real estate services segment centres around the leasing or transfer of use of land (developed or undeveloped), office buildings, warehouses, hangars and cargo storage facilities to airlines, air cargo operators, handling agents and other airport service providers. These support activities and complementary services include the 24 service stations (15 landside and 9 airside) at 12 airports or the executive aviation terminals (FBO [Fixed Base Operator]) at 5 of the airports with the largest volume of passengers in the network.

Revenue in this segment has surpassed the figure for 2019 (+34%) and activity levels maintain reasonably high occupancy levels, though slightly lower than those recorded in 2019.

Among the largest projects of the year are:

• Assignment of the surface right of a plot of land at Adolfo Suárez Madrid-Barajas Airport for the construction of the first airport supermarket. This was awarded to the Lidl chain.
• Lease of the H3 hangar at Adolfo Suárez Madrid-Barajas Airport, measuring 22,606 m² (the largest in the network). This was awarded to Ryanair in January 2024.
• Two plots for the construction of two hangars at Sabadell Airport.
• Lease of two hangars at Sabadell Airport and one at Madrid-Cuatro Vientos Airport.
• Lease of two aviation fuel facilities at Ibiza Airport and Girona-Costa Brava Airport, and of a land to build an aviation fuel facility at Valencia Airport.
• In relation to the logistics development project of the Adolfo Suárez Madrid-Barajas Airport City (AREA 1), Aena is working on the definition of the new strategy and the bases of the tender to bid for it again.

As for the Barcelona-El Prat Josep Tarradellas Airport City, the necessary preparatory works and urban planning procedures are progressing for their bidding.

In relation to ground and asset development work with high potential for use for complementary airport activities at other airports, progress has been made during 2023 in the Master Plan of Valencia Airport, which is expected to be concluded in the first quarter of 2024. The Master Plan of Málaga-Costa del Sol Airport is expected to be concluded in the first half of 2024.

Air cargo

The performance of this activity has continued to be excellent. Revenue represents 42% of revenue from the real estate segment and has increased by 53% with respect to 2019.

The volume of cargo reached a record of 1,079,676 tonnes, which represents an increase of 7.9% year-on-year and a 100.9% recovery compared to the pre-pandemic volume.

Surface rights have been awarded for the construction of new cargo terminals at Tenerife Norte-Ciudad de La Laguna Airport and Barcelona-El Prat Josep Tarradellas (2,759 m² and 17,128 m² of plot of land respectively) and the lease of another terminal has been awarded at Barcelona-El Prat Josep Tarradellas Airport (17,666 m² built) and two at Alicante-Elche airport (901 m² and 1,422 m² built, respectively).

With regard to the development of the front line of the South extension of the Adolfo Suárez Madrid-Barajas Airport Cargo Centre, located in the area known as the Rejas Zone, work has been completed on the terminals operated by IAS Handling, Correos and Alaire, and work is almost finished on the warehouse to be operated by WFS. In addition, a plot of 10,241 m² has been tendered for the construction of a new cargo terminal.

Regarding the air cargo digitisation project, during 2023 the number of users registered on the platform has increased considerably and developments of a fourth app have begun.

Individual Management Report | 2023

FBO terminals

Revenue from the business aviation terminals (FBO) (€9.5 million) increased by 39% year on year and by 138% compared to 2019, driven by the latest awarded contracts (Ibiza Airport and Málaga-Costa del Sol Airport).

In the last quarter of 2023, the terminals of the Adolfo Suárez Madrid-Barajas Airport and Barcelona-El Prat Josep Tarradellas Airport that are planned to be awarded in the coming months have been tendered.

4. Income statement

Thousands of euros	2023	2022	Change	% Change
Ordinary revenue	4,386,767	3,667,058	719,709	19.6%
Other operating revenue	115,282	272	115,010	42,283.1%
Total revenue	4,502,049	3,667,330	834,719	22.8%
Supplies	-161,876	-161,723	153	0.1%
Staff costs	-478,318	-446,573	31,745	7.1%
Other operating expenses	-1,180,567	-1,154,836	25,731	2.2%
Depreciation and amortisation of fixed assets	-731,721	-718,685	13,036	1.8%
Impairment and net gain or loss on the disposal of fixed assets	-4,862	-11,892	-7,030	-59.1%
Total expenses	-2,557,344	-2,493,709	63,635	2.6%
Operating profit/(loss)	1,944,705	1,173,621	771,084	65.7%
Finance income	112,487	15,976	96,511	604.1%
Finance expenses	-186,779	-88,588	98,191	110.8%
Exchange differences	-5	-6	-1	-16.7%
Impairment and net gain or loss on disposals of financial instruments	0	9,386	-9,386	-100.0%
Financial result	-74,297	-63,232	11,065	17.5%
Profit/(loss) before tax	1,870,408	1,110,389	760,019	68.4%
Income tax	-434,144	-245,528	188,616	76.8%
Profit/(loss) for the year from continuing operations	1,436,264	864,861	571,403	66.1%
Profit/(loss) for the fiscal year	1,436,264	864,861	571,403	66.1%

Total revenue reflects a year-on-year increase of €834.7 million (+22.8%). The performance of the different business segments is detailed in chapter 3. Business lines.

In the 'Other operating revenue' item, the grant collected for the amount of €45.1 million has been recognised to offset the expenses incurred by Aena in its efforts to mitigate the effects caused by the COVID-19 pandemic.

Operating expenses (supplies, staff costs and other operating expenses) amounted to €1,820.8 million and recorded a year-on-year increase of €57.6 million (+3.3%). This change reflects, among other things, the effect of the increased activity and operational level of terminals and open airport spaces.

• Staff costs have increased by €31.7 million (+7.1%). This increase is primarily the result of the salary review for 2023 (3.5%) and the expansion of the workforce that occurred during 2022 and 2023. Likewise, it is affected by the increase in social security spending due to the increase in social security contribution rates and the application of the Intergenerational Equity Mechanism (MEI)
• Other operating expenses have increased by €25.7 million (+2.2%). As shown in the table below, electricity expense has been reduced by €120.4 million (-45.1% year on year); and excluding the impact of the decline in electricity expenditure, the year-on-year increase would have been €146.1 million (+16.4%). In 2019, the increase in other operating expenses excluding electricity expenditure was €162.1 million (+18.6%).

Expense items that reflect a greater year-on-year increase are: management of VIP lounges (+33.0%), professional services (+32.9%), service to persons with reduced mobility (PRM) (+26.2%), security (+18.9%), cleaning (+12.0%) and parking management expenses (+9.6%).

The tables below show the development of other operating expenses.

		9M			Change 2023/2022		Change 2023/2019	Q4		Change 2023/2022		Change 2023/2019
X million€	2019	2022	2023	€	%	€	%	2019	2022	2023	€	%	€	%
Taxes	148.9	155.4	156.0	0.6	0.4%	7.1	4.8%	0.6	0.2	-0.1	-0.2	-132.7%	-0.7	-109.5%
Electric power	64.4	218.9	106.1	-112.8	-51.5%	41.8	64.9%	21.2	47.7	40.1	-7.6	-15.9%	18.9	89.2%
Maintenance	147.5	145.1	153.8	8.7	6.0%	6.3	4.3%	54.5	53.5	58.7	5.2	9.6%	4.2	7.6%
Security	139.0	135.7	163.8	28.1	20.7%	24.8	17.9%	44.6	48.2	54.8	6.6	13.8%	10.3	23.0%
Cleaning and baggage trolleys	57.3	56.9	65.6	8.7	15.2%	8.2	14.3%	18.4	19.8	20.4	0.5	2.7%	2.0	10.8%
PRM services	45.3	44.3	51.9	7.6	17.1%	6.5	14.4%	15.8	11.4	18.4	7.0	61.5%	2.6	16.2%
Professional services	38.1	31.8	42.1	10.2	32.2%	4.0	10.4%	14.4	15.1	20.3	5.2	34.4%	5.9	41.0%
VIP lounges	18.8	19.5	26.0	6.6	33.7%	7.3	38.8%	6.5	7.1	9.3	2.2	31.2%	2.9	44.3%
Car parks	13.5	15.1	16.9	1.8	12.0%	3.4	25.6%	4.7	5.6	5.8	0.2	3.3%	1.1	22.9%
Other	70.4	78.8	105.6	26.8	34.1%	35.2	49.9%	33.9	44.8	65.1	20.3	45.3%	31.2	92.1%
Aena S.M.E., S.A.	743.2	901.4	887.8	-13.7%	-1.5%	144.5	19.4%	214.5	253.4	292.8	39.4	15.5%	78.3	36.5%
Excluding electricity	678.9	682.5	781.6	99.1	14.5%	102.8	15.1%	193.3	205.7	252.7	47.0	22.8%	59.3	30.7%

	Total				Change 2023/2022	Change 2023/2019
X million€	2019	2022	2023	€	%	€	%
Taxes	149.5	155.6	155.9	0.3	0.2%	6.4	4.3%
Electric power	85.6	266.7	146.3	-120.4	-45.1%	60.7	70.9%
Maintenance	202.0	198.6	212.5	13.9	7.0%	10.4	5.2%
Security	183.6	183.9	218.7	34.8	18.9%	35.1	19.1%
Cleaning and baggage trolleys	75.7	76.7	85.9	9.2	12.0%	10.2	13.5%
PRM services	61.1	55.7	70.2	14.6	26.2%	9.1	14.9%
Professional services	52.5	46.9	62.3	15.4	32.9%	9.9	18.8%
VIP lounges	25.2	26.6	35.4	8.8	33.0%	10.1	40.2%
Car parks	18.2	20.7	22.7	2.0	9.6%	4.5	24.9%
Other	104.3	123.6	170.7	47.1	38.1%	66.4	63.6%
Aena S.M.E., S.A.	957.8	1,154.8	1,180.6	25.7	2.2%	222.8	23.3%
Excluding electricity	872.2	888.2	1,034.3	146.1	16.4%	162.1	18.6%

The increase in finance expenses by €98.2 million is mainly explained by the increase in interest rates, by the loans drawn up in 2023 and the conversion of debt to a fixed rate (€78.8 million), by the expense derived from the drawdown of a line of credit (€8.3 million euros) and by the interest on bonds (€4.6 million)

The increase in finance income by €96.5 million is mainly due to the revenue generated from the new loans granted in 2023 to ADI and AIRM (€38.5 million) and the increase in the remuneration of cash and cash equivalents (€43.6 million)

With regard to Income Tax, an expense of €434.1 million has been recorded on account of the pre-tax profit for the fiscal year itself (€1,870.4 million), and the negative adjustments on the tax base in relation to the equity loan with Aena Internacional (-€14.5 million), as well as the use of the capitalisation reserve (-€15.2 million) and the deduction generated by the investment in fixed assets in the Canary Islands (€26.7 million).

The fiscal year was closed with a net profit of €1,436.3 million.

Annexes

5. Investments

The investment paid amounted to €553.5 million (€555.8 million in 2022).

The amount of investment executed stands at €619.0 million.

Among the actions completed during 2023, the following stand out:

• Renewal and improvement actions in the electrical systems of Palma de Mallorca Airport.
• Resurfacing of the paving on the taxiways at Tenerife Norte-Ciudad de La Laguna Airport.
• Renovation of the pavement of the runway at Girona-Costa Brava Airport.
• Expansion of employee parking lots at Tenerife Sur Airport.
• Adaptation of the strip of runway 07L-25R of Barcelona-El Prat Josep Tarradellas Airport for the facilities associated with visual aid systems.
• Regeneration and sanitation actions on runway 06L-24R of Barcelona-El Prat Josep Tarradellas Airport.

It is also noteworthy that the installation and start-up of the solar photovoltaic plant for self-consumption at the Gran Canaria Airports has been completed.

With regard to the ongoing investments, which will last for the next few months, it is worth mentioning:

• Remodelling of the terminal area at Palma de Mallorca Airport (processor building, module A and module D).
• Installation of the photovoltaic solar park at Adolfo Suárez Madrid-Barajas Airport. This plant, which is part of the Aena Photovoltaic Plan, will have a peak power of 142.42 MW and a nominal power of 120 MW.
• Installation of explosive detection equipment (EDS standard 3) for the inspection of checked baggage and the adaptation of the inspection systems to the new standard 3 systems at several airports.
• Construction of a new power plant at Adolfo Suárez Madrid-Barajas Airport.
• Improvement of the exterior lighting on the apron of terminals T123 of the Adolfo Suárez Madrid-Barajas Airport.
• Regeneration of the taxiway of the north runway and associated roads of Palma de Mallorca Airport.

It is also noteworthy that the works of the 7.5-MW solar photovoltaic plant for self-consumption of the Adolfo Suárez Madrid-Barajas Airport are underway, as well as the Plan for the implementation of charging points for electric vehicles at various airports.

The distribution of the investment paid across areas of activity is shown below:

6. Balance Sheet

6.1 Net assets and capital structure

Thousands of euros	2023	2022	Change	% Change
Asset
Non-current assets	13,466,626	13,118,592	348,034	2.7%
Current assets	3,110,756	2,085,757	1,024,999	49.1%
Total assets	16,577,382	15,204,349	1,373,033	9.0%
Equity and liabilities
Equity	7,783,125	7,112,689	670,436	9.4%
Non-current liabilities	6,339,553	6,759,139	-419,586	-6.2%
Current liabilities	2,454,704	1,332,521	1,122,183	84.2%
Total equity and liabilities	16,577,382	15,204,349	1,373,033	9.0%

Non-current assets increased by €348.0 million. This change is largely explained by the increase in Long-term investments in group and associated companies by €643.8 million due to intragroup loans for BOAB amounting to €766 million and the partial repayment of €120 million by ADI, which is partially offset by the reduction of Deferred tax assets by €150.4 million due to the almost full use of the tax loss carry forwards recorded as a result of the change in accounting policy of the 2022 commercial discounts for the amount of €632.4 million. This resulted in the recorded deferred tax asset of €158.1 million that is now derecognised almost in its entirety, and due to the decrease in Property, plant and equipment by €125.2 million due to depreciation for the fiscal year in excess of the investment made.

Current Assets have increased by €1,025.0 million due to the growth in cash mainly due to the increase in operating cash flows and cash equivalents by €786.3 million to provide liquidity to secure the 2024 debt maturities amounting to €1,645.7 million and in Trade and other accounts receivable by €185.4 million, mainly due to the pending 2022 corporate income tax refund amounting to €146 million and the linearisation of future rents amounting to €47 million.

Equity has increased by €670.4 million, mainly due to the increase in Own Funds by €723.688 million due to the increase in profits generated in the 2023 fiscal year by €571.4 and due to the reduction in the allocation of losses from previous fiscal years by €152.4 million.

The decrease in non-current liabilities by €419.6 million is essentially due to the reduction of €765.3 million in long-term debt with group and associated companies due to the maturity of the mirror debt with Enaire, which is offset by the increase in long-term debt of €237.9 million due to the issuance of bonds for €500 million and the long-term maturity of loans with credit institutions for an amount of €270 million. It is also offset by the higher amount in long-term guarantees received, €79.4 million, which reflect the guarantees received for the new duty-free shops contract.

Current liabilities have increased by €1,122.2 million as a result of the growth of Short-term debts by €907.6 million and of the short-term debts with group and associated companies by €251.5 million as a result of the reclassification to short-term of the mirror debt amounting to €251 million.

6.2 Evolution of the net financial debt

The accounted net financial debt as of 31 December 2023 stands at €5,675.8 million.

The ratio of the accounted net financial debt to EBITDA is as follows:

Thousands of euros	2023	2022
Gross financial debt	7,897,492	7,226,566
Cash and cash equivalents	2,221,740	1,435,404
Accounted net financial debt	5,675,752	5,791,162
Accounted net financial debt/EBITDA	2.12x	3.05x

Aena S.M.E., S.A. has taken out loans with banking institutions for a total outstanding amount, as of 31 December 2023, of €4,692.3 million, which include the obligation to meet the following covenants of financial ratios:

• Net Financial Debt/EBITDA must be less than or equal to 7.0x.
• EBITDA/Finance expenses must be higher than or equal to 3.0x.

These covenants are reviewed every year in June and December, taking into account the data on EBITDA and finance expenses for the last 12 months and the net financial debt at the end of the period. As at 31 December 2023, both ratios have been met.

The repayment of the debt of Aena with ENAIRE, in accordance with the payment schedule set out in the contract, amounted to €514.4 million. Additionally, debt with credit institutions has been amortised, for the amount of €1,080 million. Of this amount, €430 million corresponds to bilateral loans (with one of them refinanced by another loan of €300 million and its maturity period extended) and €650 million corresponds to the repayment of a line of credit.

During 2023, Aena S.M.E., S.A. has drawn down €960.3 million corresponding to bilateral loans, including €300 million refinanced.

In February 2023, it drew down a line of credit for €650 million, which was repaid on 26 June 2023.

On 13 October 2023, Aena S.M.E., S.A. made its first bond issuance in the fixed income market for €500 million, maturing in October 2030. The transaction closed with a 4.25% coupon.

This issue was made under the Euro Medium Term Note (EMTN) programme of €3,000 million, which it registered with the CNMV on 27 July 2023.

The rating agency Fitch assigned the issuance a rating of 'A-' and Moody's agency assigned a rating of 'A3'. These ratings are in line with Long-Term Issuer Default Ratings assigned by Aena S.M.E., S.A.

In February 2023, it drew down a credit facility for €650 million. On 26 June 2023, this amount was repaid.

On 29 June 2023, it formalised a sustainable syndicated line of credit (Sustainability-Linked RCF) for €2,000 million, which reinforces its commitment to the environment, social responsibility and good corporate governance.

With this transaction, Aena S.M.E., S.A. extends the term of its financing for general corporate needs up to 5 years (with the possibility of extension for an additional 2 years) with optimal economic conditions. The interest rate is fixed based on the credit rating and on the fulfilment of an objective to reduce CO2 emissions.

At the same time, it cancelled existing credit facilities amounting to €650 and €800 million maturing in 2024 and 2025, respectively.

At 31 December 2023, the cash balance amounted to €2,221.7 million (€1,435.4 million at 31 December 2022).

In addition, the company has €554.5 million available (undrawn) financing (€654.5 million at 31 December 2022) and €2,000 million corresponding to the aforementioned syndicated and sustainable line of credit (ESG-linked RCF), (€1,450 million at 31 December 2022 corresponding to the two cancelled lines of credit).

This availability of cash and credit facilities totals €4,776.2 million (€3,539.9 million at 31 December 2022). In addition, there is also the possibility of issuing notes through the Euro Commercial Paper (ECP) programme of up to €900 million, which are available in full at 31 December 2023 (€900 million available at 31 December 2022). There is also the possibility of issuing bonds through the EMTN programme of up to €3,000 million, of which at the end of the 2023 fiscal year €2,500 million is available (€500 million issued in October 2023, as was mentioned previously).

The average interest rate on the debt of Aena S.M.E., S.A. was 2.20% in 2023 (1.04% in 2022).

On 1 June 2023, the rating agency Fitch confirmed the credit rating assigned to Aena for the long-term as 'A-', with a stable and shortterm 'F2' outlook. The rating assigned by the agency Moody's is 'A3', with a stable outlook.

6.3 Average payment period

Information on the average payment period of Aena is as follows:

Days	2023
Average payment period to suppliers	30
Ratio of paid transactions	32
Ratio of outstanding transactions	15

These parameters were calculated in accordance with Art. 5 of the Resolution dated 29 January 2016, published by the Accounting and Auditing Institute, on the information to be included in the annual accounts report in relation to the average payment period to suppliers in commercial transactions, as follows:

• Average payment period to suppliers = (Ratio of paid transactions x total amount of payments made + Ratio of outstanding transactions x total amount of outstanding payments) / (Total amount of payments made + total amount of outstanding payments).
• Ratio of paid transactions = Σ (number of payment days x amount of paid transactions) / Total amount of payments made. Number of payment days means the calendar days that have elapsed since the date the calculation begins until the actual payment of the transaction.
• Ratio of outstanding transactions = Σ (number of days outstanding x amount of outstanding transactions) / Total amount of outstanding payments. Days payable outstanding means the calendar days that have elapsed since the date the calculation begins until the last day of the period referred to in the annual accounts.
• For the calculation of both the number of payment days as well as the days payable outstanding, the Company calculates the term as of the date of provision of the services. However, given the lack of reliable information on the time that this has taken place, the invoice receipt date is used.

This balance refers to suppliers that, given their nature, are suppliers of goods and services. Accordingly, it includes data related to 'Trade creditors' items in the statement of financial position.

Thousands of euros	2023
Total payments made	1,163,509
Total outstanding payments	115,540

The average payment period is calculated based on the outstanding invoices received and endorsed.

7. Cash flow

Thousands of euros	2023	2022	Change	% Change
CASH FLOW FROM OPERATING ACTIVITIES (I)	2,089,390	1,696,252	393,138	23.2%
CASH FLOWS FROM INVESTMENT ACTIVITIES (II)	-1,224,844	-555,671	-669,173	120.4%
CASH FLOWS FROM FINANCING ACTIVITIES (III)	-78,210	-1,088,246	1,010,036	-92.8%
CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD	1,435,404	1,383,069	52,335	3.8%
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	2,221,740	1,435,404	786,336	54.8%

Main changes

During 2023, cash has increased by €786.3 million mainly due to the generation of operating cash flows as a result of the air traffic volume achieved in the fiscal year. The positive operating cash flows were partially offset by negative financing and investment cash flows, mainly due to the dividend payment charged to profit/(loss) for the fiscal year 2022 and the investments made in airport infrastructures.

Net cash from operating activities

The cash flow from operating activities has been positive at €2,089.4 million, reflecting the recovery of traffic and commercial activity that has been observed across the airports.

Positive operating flows are generated primarily as a result of the pre-tax profit for the period (€1,870.4 million) (see details in the consolidated cash flow statement of the Annual Accounts of Aena S.M.E., S.A.).

Working capital has decreased by €78.9 million mainly as a result of the changes in 'Debtors and other accounts receivable' and in 'Creditors and other accounts payable':

• The change in 'Debtors and other accounts receivable' has had a negative impact on cash flows for the amount of €9.6 million, mainly due to the increase during the commercial business year, whose variable rents are invoiced and collected monthly.
• The negative change in 'Creditors and other accounts payable' has been negative at €27.1 million, mainly due to the higher balance of energy providers at the close of 2022, as a result of the impact of the increase in the price of electricity in the last half of that year (€15.8 million).

Net cash used in investing activities

In investment activities, cash flow was negative at €1,224.8 million.

It mainly reflects the payments for the investment in property, plant and equipment, intangible assets and real estate investments amounting to €553.5 million (see section 5. Investments), for the 1,020.3 million in loans granted to Aena Group companies and, conversely, for the cancellation of the equity loan with Aena Desarrollo Internacional amounting to €370.0 million.

Net cash flows from/(used in) financing activities

Financing activities have resulted in a negative change of €78.2 million.

The heading 'Issuance of financial debt' reflects an amount of €1,610.3 million, of which €960.3 million correspond to bilateral loans drawn down by Aena and €650 million to a line of credit drawn down by Aena in February 2023 and repaid in June. Additionally, the issuance of bonds on the fixed-income market for €500 million is reflected under the heading 'Issuance of obligations and similar securities'.

The repayment of the principal of Aena's debt (and ENAIRE as co-borrowing entity with various financial institutions), in accordance with the payment schedule set out in the contract, amounted to €514.4 million.

Aena has also repaid debt with credit institutions for the amount of €1,080.0 million. Of this amount, €430 million corresponds to bilateral loans (with one of them refinanced by another loan of €300 million and its maturity period extended) and €650 million corresponds to the repayment of a line of credit, as explained in the section 6.2 Evolution of the net financial debt.

Annexes

The dividend distributed by Aena in the month of May 2023 and charged to net profit for 2022 for the amount of €712.5 million is reflected in the heading 'Dividends paid' in 2023.

The headings 'Other issuances' and 'Other debts' include collections for the amount of €167.5 million and payments in the amount of €54.2 million, which are mainly from the constitution and refunds of deposits and guarantees received in the operation of the business. It should be noted that during August and September 2023, the guarantees constituted by the successful bidders of the tenders related to the operation of the duty-free shops (€72.4 million) have been collected.

Annexes

8. Operational and financial risks

The main risks to which Aena S.M.E., S.A. is exposed in its operating and financial activities are described in note 5. Management of the operational and financial risks of the annual accounts of Aena S.M.E., S.A. for fiscal year 2023.

Within the scope of operational risks, said note explains the risks arising from the uncertainty of the macroeconomic and geopolitical environment as well as the regulatory risks and the operating risks.

• Regarding the uncertainty related to risks arising from the macroeconomic environment, as explained in the note indicated, traffic in airports managed by Aena S.M.E., S.A. may be affected as a result of the current uncertainty of the macroeconomic environment, resulting from a combination of the persistent effects related to restrictive monetary policies to compensate for the rise in inflation and interest rates. On geopolitical risks, they are mainly the result of the Russian invasion of Ukraine, tensions relating to China and the war in the near East. The most relevant impact for the Group derived from the current macroeconomic and geopolitical crisis is a consequence of the high increase in the cost of electricity.

As of the preparation date of the annual accounts of Aena S.M.E., S.A. for the fiscal year 2023, the most relevant impact derived from the current macroeconomic and geopolitical crisis is a consequence of the high increase in the cost of electricity that occurred in 2022 and which has been settling back down during 2023.

• Operational risks also include the regulatory risks associated with the regulated sector in which Aena S.M.E., S.A. operates, in which future changes or developments in the applicable regulations may have negative impacts on revenue, operating profit and the financial position.
• They also identify the different operational risk factors that may affect the activity of Aena S.M.E., S.A., as they are directly related to the levels of passenger traffic and air operations at its airports.

With regard to the main financial risks, the operations of Aena S.M.E., S.A. are exposed to the following: market risk (including exchange rate risk and fair value interest rate risk), credit risk and liquidity risk. The global risk management programme of the Aena Group focuses on the uncertainty of financial markets and tries to minimise the potential adverse effects on the financial profitability of the Group. In certain cases, Aena S.M.E., S.A. uses derivative financial instruments to hedge certain risk exposures.

In the area concerning the risks derived from climate change, Aena S.M.E., S.A. is exposed to its effects and environmental sustainability forms a key strategy for the Aena Group. The associated risks—as differentiated according to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) regarding physical or transitional risks—can lead to a number of economic, operational and reputational impacts.

The aforementioned information, detailed in note 5. of the annual accounts of Aena S.M.E., S.A. for the fiscal year 2023, is completed with the information in Block B of the consolidated management report. Section 2 (related to Risks and their management) in the introductory chapter (2023: reactivation and new challenges) includes a brief description of the risk map of the Group's activity and the risk management and control system, which is based on the integrated corporate risk management framework of COSO III (Committee of Sponsoring Organizations of the Treadway Commission).

The Risk management and control system ensures that risks that may affect the Company's objectives are systematically identified, analysed, evaluated, managed and controlled with consistent criteria. All identified risks are assessed, categorised and prioritised in the corporate Risk Map, which is updated annually.

In 2023, after the timely review, the Risk Map has maintained the number of risks at a total of 15 (in 2022: they went from 16 risks to a total of 15), classified as: strategic, operational, financial, legal and compliance, information, technological and social, environmental and good governance risks (for more information see section 2.2. Risks in 2023 in the previous chapter).

It is also noteworthy that, as indicated in section 2.2.3. Risks and opportunities related to climate change (Chapter 2) of Block B in the Consolidated Management Report, the risk map expressly includes the risks associated with climate change, and incorporates the corresponding management, supervision and control mechanisms, which include indicators and measures linked to compliance with the Climate Action Plan. When analysing risks and opportunities, different climate scenarios are considered for the physical risks and the risks of transition, as indicated in the cited section.

Annexes

9. Main legal proceedings

As a consequence of the health crisis caused by COVID-19, some lessees filed claims based on the legal doctrine of 'clausula rebus sic stantibus' requesting that the Courts consider the need to adopt an injunctive relief with the purpose of ensuring that Aena refrains from invoicing the rents agreed in the contracts and, at the same time, suspend their right to execute the guarantees available in the event of any non-payment, among other requests. All the foregoing is put forth with the consequent ordinary claim.

In relation to the risk rating of these proceedings, having seen the progress and procedural development of this legal dispute (judgments of the Provincial Courts are available in which they unanimously apply DF7 to resolve the conflict and consider this rule to be constitutional), the management of the Company has moved to consider it appropriate to classify the commercial risk derived from this dispute as probable, setting up a provision for liabilities in the fiscal year 2023 for the amount of €11.8 million (see Note 21.3 of the consolidated annual accounts of Aena S.M.E., S.A. for the fiscal year 2023). However, regarding disputes concerning commercial tenants to which, in the Company's opinion, DF7 does not apply and where a ruling has not yet been handed down, the risk of the proceedings being decided against Aena's interests is still considered to be possible in such cases. At the date of drawing up the annual accounts of Aena S.M.E., S.A. for the year 2023, the Company estimates that the judgments upholding the commercial lessees' claims could result in a lower amount of revenue within a range of between €2 million and €15 million.

Annexes

10. Stock market performance

Aena's share price fluctuated throughout the year, ranging from a minimum of €120.65 to a maximum of €165.60. As at 31 December 2023, it closed at €164.10, which represents a revaluation in share price of 39.9% from 31 December 2022—much higher than the performance of the IBEX 35, which recorded a gain of 22.8% in the same period.

Main data on the performance of Aena's share on the continuous market of the Madrid Stock Exchange:

31/12/2023	AENA.MC
Total traded volume (No. of shares)	39,516,352
Average daily traded volume for the period (No. of shares)	154,966
Capitalisation €	24,615,000,000
Closing price €	164.10
No. of shares	150,000,000
Free Float (%)	49%
Free Float (shares)	73,500,000

As regards the acquisition and disposal of treasury shares, as at 31 December 2023, Aena did not hold any treasury shares, so there was no impact on the yield obtained by the shareholders nor on the value of the shares.

Annexes

11. Non-financial information statement

The Non-financial information statement is included in the Consolidated Management Report 2023, in accordance with the provisions of Directive 2014/95/EU of the European Parliament and of the European Council, and those of Act 11/2018, which amends the Commercial Code, the consolidated text of the Corporate Enterprises Act approved by Royal Legislative Decree 1/2010, of 2 July, and Act 22/2015, of 20 July, on Auditing of Accounts, in the field of non-financial information and diversity. This report is available on the Aena website (www.aena.es/en/).

12. Subsequent events

From 31 December 2023 to the date of drawing up this report, the following matters of relevance have occurred:

• On 18 January 2024, the Constitutional Court declared unconstitutional several measures established in Royal Decree-Law 3/2016, which introduced tax measures aimed at consolidating public finances and other urgent social measures. The implications of the nullity of this ruling at source have not had a significant accounting impact for the Spanish companies of the Aena Group, having been considered a subsequent event that does not imply an adjustment at the close of fiscal year 2023.
• On 2 February 2024, the CNMC issued its resolution in supervision of airport charges for 2024, stating that the IMAAJ to be applied is €10.35 per passenger, which represents a change of 4.09% in the charges compared to those of 2023.

This change, applicable as of 1 March 2024, of the IMAAJ for 2024 in relation to the IMAAJ for 2023 (set at €9.95 per passenger), is a consequence of the adjustments that the DORA establishes in relation to the incentive for the performance of quality levels, the implementation of investments, the traffic structure corresponding to the end of 2022 and the effect of the P index (calculated in accordance with the methodology established in Royal Decree 162/2019 of 22 March and established in CNMC Resolution of 14 July 2022). Prior to the issuance of the CNMC's resolution, on 30 January 2024, the Council of Ministers approved a P index for the annual review of Aena's 2024 charges of +3.5%.

Annexes

13. Alternative Performance Measures (APM)

The reported financial information includes certain alternative performance measures (APM) in order to comply with the guidelines on alternative performance measures published by the European Securities and Markets Authority (ESMA) on 5 October 2015, as well as non-IFRS EU measures.

The performance measures included in this section rated as APM and non-IFRS EU measures have been calculated using the financial information of Aena S.M.E., S.A., but are not defined or detailed in the applicable financial reporting framework.

These APM and non-IFRS EU measures have been used to plan, monitor and assess the evolution of Aena S.M.E., S.A. The Company considers these APM and non-IFRS EU measures are useful for Management and investors, since they allow a comparison of operating performance and the financial situation between periods. Although it does consider that these APM and non-IFRS EU measures allow for a better assessment of the evolution of Aena S.M.E., S.A.'s businesses, this information should only be considered as additional information, and in no case replaces the financial information presented in the Annual Accounts of Aena S.M.E., S.A. In addition, the way in which Aena S.M.E., S.A. defines and calculates these APM and non-IFRS EU measures may differ from the way they are calculated by other companies that use similar measurements and, therefore, may not be comparable.

The APM and non-IFRS measures used in this document can be categorised as follows:

Measures of the financial position

Net Financial Debt

This the main APM used by Management to measure the Company's level of indebtedness.

It is calculated as the total 'Financial Debt' (Non-current Financial Debt + Current Financial Debt) that appears in the accompanying Statement of Financial Position of Aena S.M.E., S.A. less the 'Cash and cash equivalents' that also appear in said statement of financial position.

The definition of the terms included in the calculation is as follows:

Financial Debt: this means all financial debt with a financial cost as a result of:

• loans, credits and commercial discounts;
• any amount due for bonds, obligations, notes, debts and, in general, similar instruments;
• any amount due for rental or leasing which, according to the applicable accounting regulations, should be treated as financial debt;
• financial guarantees assumed by AENA that cover part or all of a debt, excluding those guarantees related to debts of consolidated companies; and
• any amount received by virtue of any other kind of agreement that has the effect of commercial financing and which, according to the applicable accounting regulations, should be treated as financial debt.

Cash and cash equivalents: definition contained in p. 7 of IAS 7 'Cash flow statement'.

EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is an indicator that measures the company's operating margin before deducting financial earnings, income tax and amortisations/depreciations. This is calculated as operating earnings plus depreciation and amortisation. By disregarding the financial and tax figures, as well as amortisation/depreciation accounting expenses that do not entail cash outflow, it is used by Management to assess the operating profit of the company and its business segments over time, allowing them to be compared with other companies in the sector.

Net Financial Debt Ratio/EBITDA

It is calculated as the quotient of the Net Financial Debt divided by the EBITDA for each calculation period. In the event that the calculation period is less than the annual period, the EBITDA of the last 12 months will be taken.

Aena S.M.E., S.A. monitors capital structure based on this debt ratio.

The numerical reconciliation between the most directly reconcilable line item, total or subtotal, presented in the financial statements and the APM used is presented below:

Annexes

Aena S.M.E., S.A. (Thousands of euros)	31 December 2023	31 December 2022
NET FINANCIAL DEBT	5,675,752	5,791,162
Non-current financial debt	6,144,641	6,577,780
Current financial debt	1,752,851	648,786
Cash and cash equivalents	-2,221,740	-1,435,404
EBITDA	2,681,362	1,896,927
Operating profit/(loss)	1,944,705,000	1,173,621,000
Depreciation and Amortisation	-731,721,000	-718,685,000
Net Financial Debt Ratio/EBITDA	2.12	3.05

ANNEX I: Communications with the National Securities Market Commission (CNMV)

ENTRY	DATE		TYPE OF COMMUNICATION	DESCRIPTION
20533	21/02/2023	ORI	Other relevant	Aena S.M.E., S.A. announces the holding of the
20800	27/02/2023	ORI	information The Board or Annual General Meeting being convened	presentation of results for the fiscal year 2022 Aena reports that the Board of Directors has approved the 2023 Call for the Annual General Meeting
20796	27/02/2023	ORI	On Corporate governance	Aena announces the appointment of positions on the Board and changes in its management structure
20795	27/02/2023	ORI	On Corporate governance	The Company announces the resignation of a director
20870	28/02/2023	ORI	On business and financial situation	Dividend proposal corresponding to the fiscal year 2022
20869	28/02/2023	ORI	Annual report on remuneration of directors	The Company submits the Annual Report on Remuneration of Directors for the fiscal year 2022
20868	28/02/2023	ORI	Annual corporate governance report	The company submits the Annual Corporate Governance Report for the fiscal year 2022
20867	28/02/2023	ORI	On business and financial situation	Results Presentation and Management Report 9M 2022 (figures re-presented with respect to those published on 26 October due to the change in accounting policy adopted by Aena derived from the Agenda Decision of the IFRS Interpretations Committee)
20866	28/02/2023	ORI	Annual financial and audit reports	The Company submits the Annual Financial Report for the fiscal year 2022
20865	28/02/2023	ORI	On business and financial situation	Press release on results 2022
20864	28/02/2023	ORI	On business and financial situation	Presentation of results 2022
20863	28/02/2023	ORI	Semi-annual financial and audit reports/limited reviews	The Company sends financial information for the second half of 2022
21191	07/03/2023	ORI	The Board or Annual General Meeting being convened	The Company announces the calling of the 2023 Annual General Meeting
21619	29/03/2023	ORI	On Corporate governance	The Company announces the change of Chairman of the Audit Committee
21749	03/04/2023	ORI	Regulations of the Board	The company submits the regulations of the Board of Directors
21987	19/04/2023	ORI	Other relevant information	Aena S.M.E., S.A. announces the holding of the presentation of results for the first quarter of 2023
22019	20/04/2023	ORI	On business and financial situation	The Company announces the approval for the payment of the dividend by the Annual General Meeting.
22018	20/04/2023	ORI	On Corporate governance	The Company announces the ratifications of appointment, re-election and appointments of Directors at the Annual General Meeting and appointments of the position on the Board of Directors
22017	20/04/2023	ORI	The Board or Annual General Meeting being convened	The Company announces the approval of Resolutions at the 2023 Annual General Meeting
22106	26/04/2023	ORI	On business and financial situation	The company issues a press release on the results of the first quarter of 2023
22105	26/04/2023	ORI	On business and financial situation	Presentation of Results and Management Report Q1 2023
1850	03/05/2023	II	On business and financial situation	Offers presented in the Tender for Duty-free shops
22476	10/05/2023	ORI	On Corporate governance	The Company announces the resignation of a director
22528	11/05/2023	ORI	On business and financial situation	Opening of the offers presented in the tender for Duty free shops
22824	01/06/2023	ORI	On credit ratings	The agency Fitch Ratings has confirmed AENA S.M.E., S.A.'s long-term issuer default rating 'A-' with a stable outlook and short-term rating of 'F2'.

ENTRY	DATE	TYPE OF COMMUNICATION		DESCRIPTION
22896	08/06/2023	ORI	Regulations of the Board	The company submits the regulations of the Board of Directors
22997	12/06/2023	ORI	On Corporate governance	The Company announces the resignation of a director
23158	20/06/2023	ORI	On Corporate governance	Appointment of directors
23656	19/07/2023	ORI	Other relevant information	Aena S.M.E., S.A. announces the holding of the presentation of results for the first half of 2023
23772	25/07/2023	ORI	On business and financial situation	The Company announces the awarding of the management of the Duty-Free Shops at the airports of Madrid and Catalonia.
23809	26/07/2023	ORI	On business and financial situation	The company submits the presentation of results for the first half of 2023.
23805	26/07/2023	ORI	On business and financial situation	The company issues a press release on the results of the first half of 2023.
23801	26/07/2023	ORI	Semi-annual financial and audit reports/limited reviews	The company submits financial information for the first half of 2023.
25024	25/10/2023	ORI	Other relevant information	Aena S.M.E., S.A. announces the holding of the presentation of results for the nine-month period ended 30 September 2023.
25195	02/11/2023	ORI	On business and financial situation	The company issues a press release on the results of the first nine months of 2023.
25194	02/11/2023	ORI	On business and financial situation	Presentation of Results and Management Report 9M 2023
2047	28/11/2023	II	On Corporate governance	The Company announces the resignation of a Director

II (Inside Information)

ORI (Other Relevant Information)

ANNEX II: Annual Corporate Governance Report

Aena's Annual Corporate Governance Report for the year 2023, which forms an integral part of this management report, is presented in the Consolidated Management Report and has been made available since the date of publication of the consolidated Annual Accounts on the website of the Spanish National Securities Market Commission and on Aena's website (www.aena.es).

ANNEX III: Annual Report on Remuneration of Directors

The Annual Report on Remuneration of the Directors of Aena for the year 2023, which forms an integral part of this management report, is presented in the Consolidated Management Report and has been made available since the date of publication of the consolidated annual accounts on the website of the Spanish National Securities Market Commission and on Aena's website (www.aena.es).

Signature diligence and Statement of Responsibility of the Directors concerning the individual annual accounts and the individual management report and of Aena, S.M.E., S.A. for the fiscal year 2023

On February 27, 2024, in accordance with the normative requirements, the Board of Directors of the company Aena, S.M.E., S.A. (the "Company") has prepared the Individual Annual Accounts and the Individual Management Report for the year ended on December 31, 2023 with the requirements established on the Commission Regulation UE 2019/815. The aforementioned individual Annual Accounts and the Individual Management Report are comprised in the electronic file with the following hash code: f75858db5a34a6e37e03917aec0886723ed35ee395e6ba8b72a6a66607834b6c

The members of the Board of Directors with the signature of this diligence declare signed the aforementioned Individual Annual Accounts and the Individual Management Report for the year ended on December 31, 2023, which were prepared by the Board of Directors unanimously, for its audit verification and approval by the General Meeting of Shareholders.

Likewise, in compliance with the provisions of Section 8.1. b) of Royal Decree 1362/2007, of 19 October, implementing the Securities Market Law 24/1988, of 28 July, the members of the Board of Directors of the Company with this sign they declare their responsibility concerning the content of Individual Annual Accounts and Management Report of the Company for the fiscal year ended December 31, 2023 which were formulated by the Board of Directors at its meeting on February 27, 2024, and by which the state that to the best of their knowledge the Annual Accounts prepared in accordance with the applicable set of accounting standards give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and that the Management Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that they face.

Position	Name	Sign
Chairman	Mr. Maurici Lucena Betriu
Director	Ms. Beatriz Alcocer Pinilla1
Director	Ms. María Carmen Corral Escribano
Director	Ms Irene Cano Piquero2

¹ Ms. Beatriz Alcocer Pinilla attended the meeting of the Board of Directors by telematic means and for this reason, her signature does not appear. Ms. Beatriz Alcocer Pinilla voted in favour the Annual Accounts and the Management Report (individual).

² Ms. Irene Cano Piquero attended the meeting of the Board of Directors by telematic means and for this reason, her signature does not appear. Ms. Irene Cano Piquero voted in favour the Annual Accounts and the Management Report (individual).

Director	Mr. Manuel Delacampagne Crespo
Director	Mr. Ángel Faus Alcaraz
Director	Ms. Mª del Coriseo González Izquierdo Revilla
Director	Ms. Leticia Iglesias Herraiz
Director	Mr. Amancio López Seijas
Second Deputy Chairman	Mr. Francisco Javier Marín San Andrés
Director	Ms. Angélica Martínez Ortega
Director	Ms. Ainhoa Morondo Quintano
Director	Mr. Juan Río Cortés3
First Deputy Chairman	Mr. Jaime Terceiro Lomba
Director	Mr. Tomás Varela Muiña

In Madrid, on February 27, 2024

Ms. Elena Roldán Centeno Secretary of the Board of Director Aena, S.M.E., S.A

³ Mr. Juan Río Cortés attended the meeting of the Board of Directors by telematic means and for this reason his signature does not appear. Mr. Juan Río Cortés voted in favour the Annual Accounts and the Management Report (individual).