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3 NEWS 17.2.2022 FROM PAGE 1 The revenue generated by the group during the year under review in- creased by €15.2 million, from €32.2 million in 2020 to €47.4 million in 2021. This marked an increase of 47.4% in line with the increase in passenger movements. Earnings before interest, taxation, depreciation and amortisation (EBIT- DA) of the group increased by €18.5 million, from €5.6 million in 2020 to €24.1 million in 2021. EBITDA margin improved by 33.4 percentage points, from 17.4% to 50.8%. While the Group had registed a net loss of €4.3 million in 2020, it closed off 2021 in the black with a net profit of €7.0 million. MIA this week announced an in- vestment of almost €40 million in the construction of a new apron, which will equip the airport with the aero- drome infrastructure needed to han- dle future growth, was today given the green light by Malta International Airport's Board of Directors. The Apron X project will see the development of an area measuring around 100,000 square metres, which is roughly comparable to the size of 14 football pitches. This development will significantly improve the airport's aircraft parking capacity and its ability to better han- dle mixed-fleet operations, particu- larly during peak hours in summer. Apron X will introduce new parking stands that can accommodate either seven Code C or three Code E aircraft, with the former being the more com- mon aircraft type to land at Malta In- ternational Airport, in addition to 20 existing stands available on Aprons 8 and 9. Challenges In its annual report and financial statements, MIA plc said Q1 was very challenging as restrictions and lock- downs that came into force across Eu- rope led to airlines deciding to oper- ate a minimal schedule. This resulted in a drop of 86.5% in seat capacity and a corresponding drop of 90.2% in passenger move- ments. In the meantime, the roll-out of vaccination programmes in Europe was underway. However, vaccination uptake and vaccination coverage among the adult population varied heavily across Eu- rope, with this situation extending into the first half of Q2. The government's announcement that June would mark the restart of tourism to the Maltese islands, to- gether with the announcement of in- centives for industry operators, led to expectations of a strong recovery in the second half of Q2. Nonetheless, uncertainty regarding entry restrictions and the recognition of vaccination certificates, ultimately resulted in a delayed recovery. June's improved flight schedule then contributed to a significant increase of 884.3% in overall seat capacity for Q2 compared to the same period in the previous year. The increase seen during this quar- ter was so significant partly because airlines had not been operating sched- uled flights in Q2 2020.Malta's robust vaccination programme made head- lines throughout Europe and led to Malta being added to the UK's green list on 30 June. This constituted a significant devel- opment, particularly given that the UK had been Malta's top market pri- or to the outbreak of the COVID-19 crisis. Another important development was the coming into force of the EU Digital Covid Certificate on 1 July 2021, allowing for a more uniform approach to travel restrictions among EU member states and more stability for travellers. Whilst the initial signs of recov- ery reported by MIA in the wake of these developments were encourag- ing, a downward trend was observed in mid-July when Malta changed its restrictions and became the first EU member state to close its borders to all but vaccinated passengers. Despite this decision, a number of airlines continued to resume oper- ating routes and to increase the fre- quency of flights, with Q3 ending with a 113.2% increase in passengers com- pared to 2020. Due to the delayed recovery, the de- mand for air travel peaked in October, rather than August as is traditionally the case, contributing to Q4's positive traffic result. Whilst a busier schedule for the 2021 – 2022 winter season was expected when compared to the previous sea- son, more stringent travel restrictions were introduced across Europe in mid-quarter 4, in an effort to curb the spread of a new COVID-19 variant. This led to flight cancellations and drops in frequency on several routes, especially after the Christmas holiday peak, with the full impact of these de- cisions being experienced in Q1 2022. Principal activities Malta International Airport plc's principal activities are the develop- ment, operation and management of Malta International Airport, for which the company has a 65-year concession that came into effect in July 2002. The company has three 100% owned operating subsidiaries; Airport Park- ing Limited, SkyParks Development Limited and SkyParks Business Cen- tre Limited. Airport Parking Limited operates all car parks situated on the land leased to Malta International Airport plc, whilst SkyParks Development Lim- ited and SkyParks Business Centre Limited manage the SkyParks Busi- ness Centre building. MIA plc also has another 100% owned subsidiary - Kirkop PV Farm Limited - set up with the intention to explore opportunities in the genera- tion of electricity using photovoltaic technologies. Kirkop PV Farm Limit- ed, however, did not trade in 2021. Aviation industry During the year under review, MIA identified a number of strategic, cor- porate and operational risks and un- certainties. The aviation environment is expect- ed to remain difficult, with numerous factors bearing a direct impact on the industry's recovery. Several trends indicate that fierce competition and pressure on yields will persist. Overcapacity may potentially result in market exits of competitors and declining airlines yields, negatively af- fecting the performance of the Group. Additionally, business travel is pre- dicted to continue recovering at a much slower pace than leisure travel. This could lead carriers that were tra- ditionally associated with corporate travel to explore opportunities to for- ay into the leisure market. Malta International Airport record- ed strong traffic growth in the run-up to the COVID-19 crisis , with signif- icant growth rates for the four years rolling from 2016 to 2019. As a result, aprons and the terminal building had been operating at capac- ity during peak times. While the pandemic outbreak re- sulted in a major downturn in inter- national travel demand, MIA aims to retain its focus on ensuring that cur- rent capacity remains sufficient not only to bridge short-term uncertainty but also to ensure that the terminal and airside infrastructure can cater for stabilised demand recovery and future growth over the longer term. Employees MIA plc employed an average of 329 employees during 2021, which aver- age marks a drop of 12.7% over the previous year. This drop was primarily brought about by natural attrition, as a num- ber of employees who left the Com- pany were not immediately replaced. In total, the Group had 324 em- ployees at year-end, including four employees working with SkyParks Business Centre and five employees working with Airport Parking Limit- ed. This total translates in a decrease of 7.2% over the end-of-year headcount for 2020. Around 71% of employees were employed on a full-time basis for an indefinite period, whilst 20% were employed on a full-time basis for a definite period. Nine per cent of em- ployees were employed on a part-time basis. The employee turnover rate for the group in 2021 was 14.0%, whilst the average length of service was 10.8 years. MIA ends 2021 with €7m net profit

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