Malta International Airport Plc

Quarterly Report • Aug 1, 2023

COMPANY ANNOUNCEMENT

Malta International Airport plc (the "Company")

Approval of the Group's Interim Financial Results, the Payment of an Interim Dividend and the Appointment of two heads of Department

Date of Announcement 1 August 2023 Reference 392/2023 In terms of Chapter 5 of the Capital Market Rules

QUOTE

The board of directors of Malta International Airport plc approved the Group's financial statements for the period between January and June 2023 during a meeting held on Tuesday, 1st August 2023. The full financial statements are attached with this announcement and can also be viewed on www.maltairport.com. During the same meeting, board members also approved the appointment of two heads of department.

H1 2023 Financial Performance

The Group's revenue for the period under review registered an increase of 43.8% over 2022 to total €53.6 million. This growth was mainly driven by a record first half, during which traffic surpassed 2019 highs by 5.6% and totalled 3.43 million passengers.

While 67.9% of the total revenue stemmed from aviation-related activities, the retail and property segment generated 31.4% of this total in line with the company's revenue diversification strategy. Both segments registered growth over the previous year, with aviation revenues outperforming 2022 levels by 49.1% and retail and property revenues growing by 31.8%.

Guidance

Having taken into consideration the solid financial and traffic results for the first half as well as its expectations for the winter season, Malta International Airport has updated the guidance issued in January 2023. By the end of the year, the Company expects to have hosted 7.2 million passengers and generated revenues amounting to €113 million.

Interim Dividend

During the meeting, the board of directors also approved an interim net dividend of 0.03c per share on all shares settled at close of business on Wednesday, 23rd August 2023, which is payable by no later than Friday, 15th September 2023.

Structural Change and the Appointment of Two Heads of Department

The Company would like to announce the addition of the senior vice president designation to its leadership structure. This is envisaged to help retain talent and allow for greater depth in the Company's organisational structure as Malta International Airport eyes further growth and transformation.

Having successfully led their respective departments in the role of head for the past years, Ms Tina Lombardi (People and Strategy), Ing. Martin Dalmas (Operations and Business Continuity), Mr Ian Maggi (Innovation and Technology), Mr Patrick Murgo (Safety, Security, Fire Services & Procurement), Mr Alex Cardona (Traffic Development, Customer Services & Administration), and Ing. Kevin Alamango (Technical Services) have been promoted to senior vice president as of 1 st August 2023.

The Company is also pleased to announce the appointment of Mr Gayle Lynn Callus as Head of Retail and Property. Having joined Malta International Airport in 2018 and successfully occupied several roles, Mr Callus is now responsible for driving the Company's non-aviation activities, whilst leading the marketing and communications team. On the other hand, SkyParks Business Centre, which forms part of the Company's non-aviation portfolio, will fall under the direct responsibility of Chief Executive Officer Mr Alan Borg in the interim.

These changes come in the wake of the resignation and subsequent departure from the company on 31st July 2023 of the former Head of Retail and Property, Mr George Mallia.

Within the Technical Services Department, Perit Ben Farrugia has been promoted to Head of Projects. Perit Farrugia's extensive experience in the design and construction industry together with his strong leadership and vision will undoubtedly contribute to the successful completion of the Company's planned large-scale projects as part of its multi-million investment plan.

UNQUOTE

Signed:

Louis de Gabriele Company Secretary

About Malta International Airport

Malta International Airport welcomed 5.8 million passengers in 2022, marking a recovery of 80 per cent of the record traffic it had handled in 2019.

The company's continued investment in the terminal building has brought about several improvements over the years, the most recent of which was the inauguration of a new Food Court, which has widened the food and beverage offering at the airport. In 2020, Malta International Airport inaugurated Park East, a multi-storey car park that has increased the number of parking spaces on the airport campus to 2,700. Additionally, 14,000m² of office and retail space are housed within SkyParks Business Centre, with the SkyParks 2 project that is in the offing set to bring about further expansion in this regard.

The airport team is guided by a vision of service excellence, which has led MLA to clinch the title 'Best Airport in Europe' in 2018, 2019, 2020 and 2021.

Malta International Airport has been working towards operating in a more sustainable manner for the past years, particularly toward s achieving net zero carbon emissions by 2050 through better energy management. In 2014, Malta International Airport established the Malta Airport Foundation, which invests in the Maltese Islands' cultural heritage and environment through several collaborations and initiatives.

Malta International Airport plc is a public company listed on the Malta Stock Exchange, with its shareholders being the Malta Mediterranean Link Consortium (40%), with Flughafen Wien AG owning a 96% share, the Government of Malta (20%), the general public (29.9%), and VIE Malta Limited (10.1%).

Malta International Airport p.l.c.

C 12663

Interim Report

Interim Condensed Consolidated Financial Statements and Directors' Report

30 June 2023

Contents

Interim Directors' Report	1-4
Condensed Consolidated Statement of Comprehensive Income	5
Condensed Consolidated Statement of Financial Position	O
Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Cash Flows
Notes to the Interim Condensed Consolidated Financial Statements	9-16
Statement pursuant to Capital Markets Rule 5.75.3	17

Period Ended 30 June 2023

These interim condensed consolidated financial statements comprise the financial statements of Malta International Airport plc and its subsidiaries: Airport Parking Limited, Sky Parks Development Limited, and Sky Parks Business Centre Limited,

Performance Review

Traffic Development

Compared to Q1 and Q2 in 2022, the first two quarters of the year under review registered a significant increase in traffic figures. Given that the first two quarters of 2022 were still heavily impacted by the COVID crisis and related restrictions on air travel, a jump of 46.4% in passenger traffic was observed when comparing the first half of 2022 and that of the present year. While the entire first half of 2023 performed significantly better than the same comparable period in 2022, the first quarter registered a much stronger increase of 85.1% in parallel with an increase of 15.6 percentage points in the seat load factor (SLF).

A good performance was also registered when comparing the first half of 2023 to pre-pandemic figures. Here, traffic increased by 5.6% over 2019, as 3,434,470 passengers passed through Malta International Airport. This result was registered despite a marginal increase of 1.2% in seat capacity over 2019, with the number of seats available in the first half of 2023 amounting to 4,122,157. On the other hand, aircraft movements (23,339) remained slightly below 2019 levels but rose by 32,4% in comparison with 2022. The upward trend in passenger numbers and seat capacity has been driven by the gradual release of the pent-up demand for air travel, which has also been reflected in high seat load factors (SLF) over the past months. Gaining 7.1 percentage points compared to previous year and 3.4 percentage points over 2019, the SLF for the first half of 2023 stood at 83.3%.

Italy, the United Kingdom, Germany, France and Poland were the most popular markets in the first half of 2023. Out of these top five markets, the United Kingdom and Germany continued to perform below 2019 levels as flight connections between Malta and these two markets have not been fully recovered, while the other three markets registered different levels of growth and outperformed their respective 2019 passenger traffic results.

	01 2072	@1 2022	Change
Passenger Movements	1,245 -75	672,965	85.1%
Aircroft Movements	B. 25	5,990	47.3%
Seat Capacity	1,535,759	1,028,045	49.4%
Seat Load Factor	:0.2	65.5%	15.6pp
MTOW in tonnes	348,466	250,583	51.1%
Cargo and Mail (in tonnes)	4,948	3,716	33.2%
	02 2073	67. 2077	% Change
Possenger Movements	2,188,945	1,672,351	30.9%
Aircroft Movements	14514	11,639	24.7%
Seat Capacity	2,586,398	2,048,569	26.3%
Seat Load Factor	84.6%	816%	3.0pp
MTOW (in tonnes)	564,514	446,684	26.4%
Cargo and Mail (in tonnes)	4,948	4,145	19.4%
	HI 2022	H1 2022	% Change
Passenger Movements	3,434,470	2,345,296	46.4%
Aircroft Movements	25 ret.	17,629	324%
Seat Capacity	4,722 51	3,076,614	34.0%
Seat Load Factor	83.55	76.2%	7.1pp
MTOW (in tonnes)	912980	677,267	34.8%
Cargo and Mail (in tonnes)	91:35	7,851	25,9%

Period Ended 30 June 2023

Financial Performance

The total revenue generated between January and June 2023 increased by EUR 16.3mn over 2022, going on to surpass 2019 levels for the first time. The growth in passenger numbers together with higher revenues generated from non-aviation activities drove the Group's total revenue up from EUR 37.3mn in H1 2022 to EUR 53.6mn in H1 2023.

While the airport segment generated EUR 12.0mn more than it had in the first half of 2022, revenue from the retail and property segment increased from EUR 12.8mn in H1 2022 to EUR 16.8mn in H1 2023, with the latter figure representing a 31% share of the total revenue. Both segments also performed better than they had in the first half of 2019, with revenue from airport activities increasing by more than EUR 5.4mn and an additional EUR 3.5mn being generated from retail and property activities.

(in EUR)	@ 2025	Q1 2012	% Change
Airport	11,867,969	6,065,949	95.6%
Retail and Property	6,762,761	4,797,372	41.0%
Other	310,143	81,444	280.8%
	Q2 2023	Q2 2022	% Change
Airport	24,565,692	18,375,892	33.7%
Retail and Property	10,071,759	7,971,334	26.3%
Other	66,360	13,168	403.9%
	H1 2023	H1 2022	% Change
Airport	36,433,661	24,441,841	49.1%
Retail and Property	16,834,520	12,768,706	31.8%
Other	376,503	94,612	297.9%
Total Revenue	53,644,684	37,305,159	43.8%
Staff Costs	(6.425,420)	(3,978,651)	61.5%
Other Operating Costs	(13,725,004)	(10,065,834)	36.4%
EBITDA	35,494,259	23,260,674	44.0%
Profit Before Tax	27,126,746	16,657,708	62.8%
Profit After Tax	17,562,843	10,694,526	64.2%

The total expenditure during the reporting period amounted to EUR 20.2mn, marking an increase of EUR 6.1mn compared to H1 2022 (+43.5%).

A look at staff costs shows that these increased by EUR 2.4mn (+61.5%), primarily as a result of the growth in headcount required to continue delivering excellent service to an increasing number of passengers, together with the discontinuation of the COVID Wage Supplement Scheme by the end of May 2022.

During the reporting period, other operating costs increased by EUR 3.7mn (+37.0%) compared to 2022. Variable costs for security, cleaning, maintenance and customer services, as well as costs for VIP and lounge services, were in line with passenger numbers. Other fixed operating costs registered a below-average increase, highlighting the Group's strong commitment to cost efficiency.

The EBITDA of the Group registered an increase of EUR 10.2mn; from EUR 23.3mn in 2022 to EUR 33.5mn in 2023, resulting in a net profit of EUR 17.6mn (2022: EUR 10.7mn).

Period Ended 30 June 2023

Infrastructural Investments

The capital expenditure for the reporting period totalled EUR 7.7mn (2022: EUR 6.4mn).

Some of the most noteworthy milestones in relation to investments include the conclusion of the third phase of the cargo village project, which saw the completion of the construction of a new warehouse in the first quarter of 2023.

Works on the relocation of the fuel station in preparation for the construction of SkyParks 2 also continued apace, with the full relocation set to be completed by the end of Q3 2023.

Moreover, works on the Apron X project, whose primary aim is to increase the airport's aircraft parking capacity, gathered momentum in H1 2023. In parallel, the company continued to invest in the maintenance of the exisiting airfield infrastructure, with apron stands, the runways and service roads all undergoing general rehabilitation works to ensure safe and secure operations.

Other investments include the expansion of the customs area, works on which are nearing completion. Once this project is finalised, the area will occupy double its original footprint, allowing for better passenger flows at this point of the airport journey. Additonally, the company has begun to carry out preparatory works in relation to the UP terminal and the first phase of the terminal expansion project, which will entail a westward extension that will allow for the introduction of a new Schengen arrivals route and the addition of two baggage reclaim belts.

Shareholder Dividend

Considering the Group's strong financial performance for the reporting period, the Board of Directors is proposing an interim net dividend of EUR 0.03 per share on all shares settled at close of business on Wednesday 23rd August 2023, which is payable by no later than Friday 15th September 2023.

Outlook / Guidance

The aviation industry has made significant strides in its journey of recovery. However, industry operators continue to navigate a challenging landscape characterised by staff shortages, aircraft delivery delays, climate-related requirements, limited infrastructure, slot constraints and industrial action. Additionally, any escalation of geopolitical tensions, primarily the war in Ukraine, could translate into new or exacerbated impacts on the aviation industry.

While the passenger figures reported in 2023 show that economic uncertainty, purchasing power pressures and higher air fare have not yet lessened the demand for air travel, pent-up demand is expected to gradually level off, leading to lower seat load factors than those that have been reported lately.

The increased pressures on the aviation industry to decarbonise its operation, mainly through the use of sustainable aviation fuel (SAF) and an investment in new refuelling infrastructure, are likely to be reflected in higher ticket prices in the medium term. Additionally, the European Union's plans to revise the energy taxation directive will have a bigger impact on island states like Malta which rely heavily on air connectivity.

While Malta International Airport expects passenger traffic growth during the summer months will greatly outweigh the shoulder months in 2023, looking ahead, it will continue working to address seasonality and attain a balanced business mix, both of which are crucial to the achievement of sustainable growth.

Keeping in mind these short and medium-term challenges while considering the strong performance registered for the period between January and June and expectations of an overall positive summer season, the Company's outlook for 2023 is cautiously optimistic.

Period Ended 30 June 2023

Thus, Malta International Airport expects to close off 2023 with:

Traffic: 7.2mn passengers Revenue: EUR 113mn EBITDA: EUR 70mn Net Profit: EUR 37mn CAPEX: EUR 39mn

Alan Borg Chief Executive Officer

By Order of the Board 1 August 2023

Condensed Consolidated Statement of Comprehensive Income

Period Ended 30 June 2023

The Group
unaudited in EUR	Notes	H1 2023	H1 2022
Revenue	7	53,644,684	37,305,159
Staff costs	8	(6,425,420)	(3,978,651)
Other operating expenses		(13,663,813)	(9,976,872)
Impairment losses on financial assets		(61,191)	(88,962)
Depreciation		(6,012,860)	(5,681,378)
Release of deferred income arising on the sale of terminal buildings and fixtures		141,802	141,802
Investment income		575,735	725
Finance cost		(1,072,191)	(1,064,115)
Profit before tax		27,126,746	16,657,708
Income tax expense	10	(9,563,903)	(5,963,182)
Profit for the period attributable to the ordinary equity holders of the Company, net of tax		17,562,843	10,694,526
Profit per share attributable to the ordinary equity holders of the Company		0.130	0.079

Condensed Consolidated Statement of Financial Position

30 June 2023

The Group in EUR	Notes	30 June 2023 unaudited	31 December 2022 audited
Assets
Property, plant and equipment	11	172,159,153	170,078,670
Investment property		15,510,905	15,875,216
Other Receivables		1,912,837	1,992,558
Deferred tax assets		5,916,497	5,620,139
Non-current assets		195,499,392	193,566,583
Inventories		1,134,412	1,162,402
Trade and other receivables	12	30,394,094	21,706,912
Short-term Treasury bills	12	9,889,555	24,789,438
Term deposits	12	25,000,000	19,500,000
Cash and short term deposits	12	32,154,170	24,420,042
Current assets		98,572,231	91,578,794
Total - Assets		294,071,623	285,145,377
Equity and liabilities Equity attributable to ordinary equity holders of the Company
Share capital		33,825,000	33,825,000
Retained earnings		138,368,170	157,041,327
Total - Equity		172,193,170	170,866,327
Lease liability	13	54,208,339	54,042,492
Deferred income		5,231,123	5,372,926
Other Payables		715,321	1,184,025
Provision for retirement benefit plan		3,011,057	2,964,300
Provision for MIA benefit fund		260,071	359,188
Non-current liabilities		63,425,911	63,922,931
Trade and other payables	12	46,779,722	48,379,099
Current tax liabilities		11,672,820	1977,020
Current liabilities		58,452,542	50,356,119
Total - Liabilities		121,878,453	114,279,050
Total - Equity and Liabilities		294,071,623	285,145,377

Condensed Consolidated Statement of Changes in Equity

Period Ended 30 June 2023

	Equity attributable to ordinary equity holders of the Company
The Group unaudited in EUR	Share capital	Retained earnings	lotal
Balance at 1 January 2023	33,825,000	137,041,327	170,866,327
Income for the period		17,562,843	17,562,843
Total comprehensive income for the period		17,562,843	17,562,843
Dividends		(16,236,000)	(16,236,000)
Balance at 30 June 2023	33,825,000	138,368,170	172,193,170

The Group unaudited in EUR	Share capital	Retained earnings	Total
Balance at 1 January 2022	33,825,000	97,941,580	ાડી,766,580
Income for the period		10,694,526	10,694,526
Total comprehensive income for the period		10,694,526	10,694,526
Balance at 30 June 2022	33,825,000	108,636,106	142,461,106

Condensed Consolidated Statement of Cash Flows

Period Ended 30 June 2023

The Group unaudited in EUR	Notes	H1 2023	H1 2022
Cash flows from operating activities
Profit before tax		27,126,747	16,657,708
Adjustments for:
Depreciation of property, plant and equipment		6,012,860	5,681,378
Release of deferred income arising on the
sale of the terminal building		(141,802)	(141,802)
Amortisation of European Commission Grant		(20,128)	(20,128)
Impairment Loss		61,191	88,962
Finance cost		1,072,191	1,064,115
Gain on sale of property, plant and equipment			(18,000)
Investment income		(575,735)	(725)
Provision for retirement benefit plan		46,757	18,212
Provision for MIA benefit plan		(94,917)	28,353
Operating items		6,360,417	6,700,365
Working capital movements:
Movement in inventories		27,990	(65,617)
Movement in trade and other receivables		(8,397,494)	(8,444,462)
Movement in trade and other payables
and other financial liabilities.		(1,524,362)	2,273,996
Working capital movements		(9,893,866)	(6,236,083)
Cash flows from operations		23,593,298	17,121,991
Lease interest paid	13	(906,344)	(1,922,255)
Income taxes paid		(164,462)	(2,652,918)
Receipts of deposit from tenant Retirement benefit paid		3,500	10,750
		(4,200)
Net cash flows from operating activities		22,521,792	12,557,568
Cash flows from investing activities
Purchase of PPE
Additions to investment property	11	(8,176,132)	(5,737,078)
Proceeds from sale of property, plant & equipment		(79,993)	(1,167,311)
Investments from short-term treasury bills		14,899,883	18,000
Investments in term deposits		(5,500,000)	1,000,000
Interest received		304,578	12,963
Net cash flows from / used in investing activities		1,448,336
			(5,875,426)
Cash flows from financing activities
Dividends paid	16
Net cash flows used in financing activities		(16,236,000) (16,236,000)
Net movement in cash
and cash equivalents		7,734,128	6,684,142
Cash and cash equivalents at
the beginning of the period		24,420,042	22,215,002
Cash and cash equivalents at
the end of the period		32,154,170	28,899,143

Period Ended 30 June 2023

1. Reporting Entity and Consolidation Range

The interim condensed consolidated financial statements ("Interim Financial Statements") of the Group for the six months ended 30 June 2023 ("H") were authorised for issue in accordance with a resolution of the directors on 01 August 2023.

Malta International Airport p.l.c. (the "Company") is a public company incorporated and domiciled in Malta whose shares are publicly listed and traded on the Malta Stock Exchange.

The principal activities of the Company and its subsidiaries (the "Group") are the development, operation and management of Malta's airport. The Group also operates a business centre within the limits of the airport.

2. Basis of Preparation

These Interim Financial Statements for the six months ended 30 June 2023 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and the Capital Markets Rules issued by the Malta Financial Services Authority,

The financial information of the Group as at 30 June 2023 and for the six months then ended reflect the financial position and the performance of Malta International Airport p.l.c. and its subsidiaries; Airport Parking Limited, Sky Parks Development Limited and Sky Parks Business Centre Limited. The comparative amounts reflect the position of the Group as included in the audited financial statements ended 31 December 2022 and the unaudited results for the period ended 30 June 2022.

The Interim Financial Statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2022, which form the basis for these Interim Financial Statements. These Interim Financial Statements are intended to provide an update on the latest complete set of annual financial statements and accordingly they focus on new activities, events and circumstances.

In terms of Capital Markets Rules 5.75.5, this interim report has not been audited by the Group's independent auditors.

3. Judgments and Key Sources of Estimation Uncertainty

In preparing these Interim Financial Statements, management has made judgements and estimates that affect the application of accounting policies and that can significantly affect the amounts recognised. The significant judgements made in applying the Group's accounting policies and the key sources of estimation uncertainty in respect to service concession arrangements in terms of IFRIC 12 and leases in terms of IFRS 16 were the same as those described in the last annual financial statements.

Period Ended 30 June 2023

4. Application of new and revised IFRS

The following amended standards became applicable for the current reporting period. The group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.

IAS 1 Amendments - Classification of Liabilities as Current or Non-current

The amendment affects only the presentation of liabilities in the statement of financial position - not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:

• · clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months and make explicit that only rights in place "at the reporting period" should affect the classification of a liability;
• · clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and
• · make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

IAS 8 Amendments - Definition of Accounting Estimates

This amendment was issued to distinguish between changes in accounting policies from changes in accounting estimates.

Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies

The amendments are intended to help preparers in deciding which accounting policies to disclose in their financial statements.

IAS 12 Amendment - Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Prior to the amendments, there had been some uncertainty about whether the IAS 12 exemption from recognising deferred tax applied to transactions for which companies recognise both an asset and liability, for example leases. The amendments clarify that the exemption does not apply and that companies are required to recognise deferred tax on such transactions. The amendments are effective for annual reporting period beginning on or after 1 January 2023.

At the date of approval of these financial statements, a number of other International Financial Reporting Standards were either not yet endorsed by the EU or were not yet applicable to the Group. The Board of Directors anticipate that the adoption of these Standards will have no material impact on the financial statements of the Group in the period of initial application.

5. Significant Accounting Policies

The condensed Interim Financial Statements as of 30 June 2023 have been prepared using the same accounting policies and methods of computation as those on which the preceding annual consolidated financial statements as of 31 December 2022 were based.

Period Ended 30 June 2023

6. Operating Segments

Airport Segment

The Airport Segment comprises the activities usually carried out by an airport. These services include revenue from airport regulated fees, aviation concessions and PRMs (persons with reduced mobility) and their associated costs. This segment also includes the operations and maintenance of the terminal, runways, taxiways and aprons.

Retail and Property Segment

The Retail and Property Segment includes various services that support the airport operations. These include the operations of the various retail outlets within the airport perimeter, advertising sites and rental of offices, warehouses and income from the running of the VIP lounges. Income and costs from Airport Parking Limited and Sky Parks Business Centre Limited are also allocated within the Retail & Property Segment.

Other Segment

This comprises services that do not fall under the Airport and the Retail and Property Segments. These include miscellaneous income and disbursement fees from third parties and any costs associated with this income.

H1 2023 (in EUR)	Airport	Retail and Property	Other	The Group
Revenue (external)	36,433,661	16,834,520	376,503	53,644,684
Staff costs	(5,604,770)	(820,650)		6,425,420
Other operating costs	(11,190,652)	(2,473,161)		(13,663,813)
Impairment losses on financial assets	(107,038)	45,847		(61,191)
EBITDA	19,531,201	13,586,556	376,503	33,494,260
Depreciation	(3,541,145)	(2,471,715)		(6,012,860)
EBIT	15,990,056	11,114,841	376,503	27,481,400
Investment income				575,735
Finance cost				(1,072,191)
Release of deferred income arising on the sale of terminal buildings and fixtures				141,802
Profit before tax				27,126,746
H1 2022 (in EUR)	Airport	Retail and Property	Other	The Group
Revenue (external)	24,441,841	12,768,706	94,612	37,305,159
Staff costs	(3,364,877)	(613,774)		(3,978,651)
Other operating costs	(8,072,344)	(1,904,528)		(9,976,872)
Impairment losses on financial assets	(90,999)	2,037		(88,962)
EBILDA	12,913,621	10,252,441	94,612	23,260,674
De preciation	(3,476,155)	(2,205,223)		(5,681,378)
EBIT	9,437,466	8,047,218	94,612	17,579,296
Investment income				725
Finance cost				(1,064,115)
Release of deferred income arising on the sale of terminal buildings and fixtures				141,802
Profit before tax				16 657 708

The results of the Group's operating segments are as follows:

Period Ended 30 June 2023

7. Revenue

In the following table, revenue is disaggregated by revenue category. The table also includes a reconciliation of the disaggregated revenue with the Group's operating segments (see Note 6).

H1 2023 (in EUR)	Airport	Retail and	Other
		Property		The Group
Revenue from Services provided Over Time
Regulated revenue	33,720,891			33,720,891
Unregulated revenue	2,712,770	4,483,474	376,503	7,572,747
Revenue from Contracts with Customers	36,435,661	4,483,474	376,503	41,293,638
Revenue from Leases		12,351,046	1	12,351,046
Total Revenue	36,433,661	16,834,520	376,503	53,644,684

H1 2022 (in EUR)	Airport	Retail and Property	Other	The Group
Revenue from Services provided Over Time
Regulated revenue	22,590,985			22,590,985
Unregulated revenue	1,850,856	3,238,980	94,612	5,184,448
Revenue from Contracts with Customers	24,441,841	3,233,980	94,612	27,775,455
Revenue from Leases		9,529,726		9,529,726
Total Revenue	24,441,841	12,768,706	94,612	37,305,159

8. Number of Employees

The number of persons employed at the end of the reporting period, including Executive Directors was as follows:

		30 June 2023 30 June 2022
Employees	416	356

o Government Assistance

The Maltese Government announced a number of measures to financially support businesses whose operation was impacted by the Covid-19 pandemic. Malta International Airport was eligible to benefit from the Covid Wage Supplement, receiving EUR 800 on a monthly basis per full-time employee starting from 9 March 2020 until May 2022. In the comparative period, between January and May, the Company received EUR 1.1 million (2023; Nil) in government grants. These amounts were deducted from the line item 'Staff Costs' in the Consolidated Statement of Comprehensive Income.

Period Ended 30 June 2023

10. Income Tax

The interim period income tax is based on the Maltese corporate tax rate of 35%. Income taxes for the interim reporting period represent a best estimate of the weighted average annual income tax rate expected for the full financial year.

11. Property, Plant and Equipment

During the first six months of the year, additions by the Group on investment projects within the terminal and to the airfield, as well as on car park infrastructure amounted to EUR 7.7 million (H1 2022: EUR 6.5 million).

12. Financial Assets and Financial Liabilities

The Group's financial assets and financial liabilities of a current nature comprise trade and other receivables, term deposits, treasury bills and cash; as well as trade and other payables. The Group's financial liabilities which are non-current comprise other payables and lease liabilities. All of these financial liabilities are classified as measured at amortised cost (AC). The lease liabilities are measured in terms of the Group's accounting policy.

Fair Values

At 30 June 2023 and 31 December 2022 carrying amounts of the Group's current financial assets and current financial liabilities approximated their fair values due to the short-term maturities of these financial instruments. The carrying amount of the non-current other payables also approximated their fair values as at 30 June 2023. For the lease liabilities, disclosure of fair value is not required.

15. Lease Arrangements

The Group as lessee

Lease arrangements where the Group is a lessee remain unchanged from the last Annual Financial Statements and primarily include the temporary emphyteusis of the leasehold land and buildings with ground rents payable by the Company to Malita Investments plc (previously to the Government of Malta) and further payments for the related aerodrome licence fee payable to the Government of Malta, with no renewal option included in the contracts. The term of the leases ranges from 58 years to 65 years and the lease payments on the temporary emphyteusis are adjusted upwards periodically by a specified rate.

The Group Lease Liability Carrying Gross Cash (in EUR) Amount Flows < 1 year 1-5 Years > 5 years H1 2023 54,208,339 131,484,694 1,812,688 7,476,523 122,195,483 H1 2022 53,881,547 133,297,382 1,812,688 7,279,043 124,205,650

Period Ended 30 June 2023

13. Lease Arrangements (continued)

The Group as lessor

Lease arrangements where the Group is a lessor remain unchanged from the last Annual Financial Statements. These primarily consist of lease agreements for portions of land held on temporary emphyteusis, commercial property situated in the terminal building as well as commercial property within Sky Parks Business Centre and Park East.

The table below represents the lease income under operating leases recognised as income for the year:

The Group
(in EUR)	H1 2023	H1 2022
Lease income under operating leases recognised as income for the year	3,361,612	3,313,839
Lease income under operating leases relating to variable lease payments that do not depend on an
index or a rate	8,989,434	6,215,887
Total lease income under operating leases recognised as income for the year	12,351,046	9,529,726

Below is the 'Minimum Lease Payment Receivables' table showing the amounts to be received from next year onwards:

(in EUR)	H1 2023	H1 20722
Year 1	3,078,639	3,414,021
Year 2	2,878,230	2,290,413
Year 3	2,129,440	2,097,563
Year 4	1,966,103	1,505,900
Year 5	1,584,979	1,375,631
Year 6 and onwards	15,886,640	17,076,627
	27,524,031	27,760,155

14. Contingencies and Commitments

There were no major changes in contingent liabilities, and they remain in essence as reported in the Group's annual financial statements of 2022.

At 30 June 2023, the Group had capital commitments of approximately EUR 35,404,186 (31 December 2022: EUR 34,085,719) in respect of the terminal and airfield infrastructure.

Period Ended 30 June 2023

15. Related Party Disclosures

During the course of the Group entered into transactions with related parties as set out below. Transactions between the Company and its subsidiaries have been eliminated on consolidation.

The related party transactions in question were:

H1 2023				H1 2022
(in EUR)	Related party activity	Hotal activity	86	Related party activity	lotal activity	ક્ષ્ઠ
Revenue
Related party transaction with:
Entities controlled by Government	9,572,288			6,530,074
	9,572,288	53,644,684	18	6,530,074	37,305,159	18
Other operating costs
Related party transaction with:
Entities controlled by Government	1,753,400			1,820,372
Key management personnel of the Group	314,357			233,830
Entities that control the Company's parent	118,061			100,002
	2,185,817	13,663,813	16	2,154,204	9,976,872	22

Further to the above, the government assistance is disclosed in Note 9.

In addition to the above, the details of the material contracts entered into by the Group in the period ended 30 June 2023 and 30 June 2022 with its substantial shareholders and their related parties are listed below:

The Government of Malta

• (i) The terminal and other land lease agreements with Malita Investments plc for EUR 658,266 (H1 2022: EUR 578,555);
• The aerodrome licence fee payable to the Government of Malta for the airport operation (ii) amounting to EUR 248,078 (H1 2022: EUR 248,078);
• (iii) The contract for contribution to the Maita Tourism Authority (MTA) for EUR 116,468 (H1 2022: EUR 116,468); the contracts for contributions payable towards the Route Development Fund that is administered by the Malta Tourism Authority for EUR 3,000,000 (H1 2022: EUR -);
• (iv) The contract with the Armed Forces of Malta for the security of the restricted areas at the Airport is no longer effective in the current reporting period (H1 2022: EUR 276,368);
• (v) for an expense of EUR 464,806 (H1 2022: EUR 464,806);
• (vi) The provision of Meteorological Services and other services to Malta Air Traffic Services Limited for revenue of EUR 371,844 (H1 2022: EUR 371,844);
• (vii) The contract for fuel throughput charges with Enemed Company Ltd. generated the amount of EUR 197,989 (H1 2022: EUR 161,195) in revenue;
• (viii) The ground handling and concession agreements with Air Malta plc and its subsidiaries is no longer effective in the current period (H1 2022: EUR 823,043);
• (ix) The contracts with Indis Malta Ltd. for the lease of land that generated income of EUR 551,808 (H1 2022: EUR 541,192).

Period Ended 30 June 2023

15. Related Party Disclosures (continued)

Right-of-use assets include the Group's right to use the land and the buildings held on temporary emphyteuses with annual ground rents payable to Malita Investments plc (previously to the Government of Malta) and the corresponding licence payable to the Government of Malta, as further disclosed above. The annual depreciation is recognised as an expense over the earlier of the end of the useful life of the right-of-use assets or the end of the lease term. The interest expense on the lease liability is recognised using the effective interest method.

16. Dividends

During the current interim period a net dividend of EUR 0.12 (2022: Nil) per share amounting to EUR 16,236,000 was paid to the shareholders of the parent company.

Furthermore, an interim net dividend of EUR 0.03 per share amounting to EUR 4,059,000 on all shares settled as at close of business on Wednesday 23d August 2023 is being proposed by the Board of Directors. The condensed consolidated financial statements do not reflect the dividend proposed after 30 June 2023.

17. Seasonality

The revenue and earnings of the first six months generally represent around 44% and 41% of the total annual revenue and earnings of the Group, respectively.

18. Events after the Reporting Period

All events occurring after the balance sheet date until the date of authorisation for issue of these financial statements and that are relevant for valuation and measurement as of 30 June 2023 ~ such as outstanding legal proceedings or claims for damages and other obligations or impending losses that must be recognised or disclosed in accordance with IAS 10 - are included in these Interim Financial Statements.

Statement pursuant to Capital Markets Rule 5.75.3

Period ended 30 June 2023

l confirm that to the best of my knowledge:

• a) the condensed consolidated financial statements give a true and fair view of the financial position of the Group as at 30 June 2023, and the financial performance and cash flows for the period then ended, in accordance with International Financial Reporting Standards as adopted by the EU applicable to interim financial reporting (IAS 34); and
• b) the Interim Directors' Report includes a fair review of the information required in terms of Capital Markets Rules 5.81 to 5.84.

Karl Dandler Chief Financial Officer 01 August 2023