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Malta International Airport p.l.c.
C 12663
Annual Report andFinancial Statements
31 December 2021
Malta International Airport p.l.c.
Contents
General Information
2
Directors’ Report
3-14
Statement of Directors’ Responsibilities
15
Corporate Governance – Statement of Compliance
16-27
Remuneration Report
28-30
Statements of Comprehensive Income
31
Statements of Financial Position
32-33
Statements of Changes in Equity
34
Statements of Cash Flows
35-36
Notes to the Financial Statements
37-94
Independent Auditor’s Report
95-101
Malta International Airport plc
General Information
Year Ended 31 December 2021
2
Directors:Mr Nikolaus Gretzmacher (Chairman)
Mr Alan Borg (Chief Executive Officer)
Mr Karl Dandler (Chief Financial Officer)
Dr. Cory Greenland
Ms Rita Heiss
Dr. Wolfgang Koeberl
Mr Florian Nowotny
Company secretary:Dr. Louis de Gabriele LL.D.
Registered office:Malta International Airport,
Luqa,
Malta.
Tel. (+356) 2124 9600
Country of incorporation:Malta
Company registration
number:C 12663
Auditor:Deloitte Audit Limited,
Deloitte Place,
Triq L-Intornjatur,
Central Business District,
Malta.
Legal advisors:Camilleri Preziosi Advocates,
Level 2 - Valletta Buildings,
South Street,
Valletta,
Malta.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
3
The directors present their report together with the audited financial statements for the year ended 31 December 2021.
Principal Activities
Malta International Airport plc’s (“the Company”) principal activities are the development, 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 Parking Limited, SkyParks Development Limited and SkyParks Business Centre Limited. Airport Parking Limited operates all car parks situated on the land leased to Malta International Airport plc, whilst SkyParks Development Limited and SkyParks Business Centre Limited manage the SkyParks Business Centre building. The Company and these subsidiaries are together referred to as “the Group”.
Malta International Airport plc also has another 100% owned subsidiary; Kirkop PV Farm Limited, set up with the intention to explore opportunities in the generation of electricity using photovoltaic technologies. Kirkop PV Farm Limited, however, did not trade in 2021.
Review of the Business
Traffic Development
Malta International Airport registered an increase of 45.3% in passenger traffic for the period between January and December 2021 compared to 2020, with a total of 2,540,335 passenger movements registered during the year under review. This increase in passenger movements was registered on the back of an increase of 29.2% in aircraft movements and an improvement of 34.5% in seat capacity over 2020. Seat load factor (SLF) registered an improvement of 4.6 percentage points over 2020 to stand at 61.4%, but remained substantially lower than the 81.8% achieved in 2019. Whilst the traffic performance for 2021 marked an improvement over the previous year, passenger numbers for the year under review were still 65.2% below 2019 levels, as uncertainty and instability continued to characterise the year. 
Q1 was very challenging as restrictions and lockdowns that came into force across Europe led to airlines deciding to operate a minimal schedule. This resulted in a drop of 86.5% in seat capacity and a corresponding drop of 90.2% in passenger movements. 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 Europe, with this situation extending into the first half of Q2.
The Maltese Government’s announcement that June would mark the restart of tourism to the Maltese islands, together with the announcement of incentives for industry operators, led to expectations of a strong recovery in the second half of Q2. However, uncertainty regarding entry restrictions and the recognition of vaccination certificates, ultimately resulted in a delayed recovery. Nevertheless, June’s improved flight schedule 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 quarter was so significant partly because airlines had not been operating scheduled flights in Q2 2020.
Malta’s robust vaccination programme made headlines throughout Europe and led to Malta being added to the UK’s green list on 30 June. This constituted a significant development, particularly given that the UK had been Malta’s top market prior 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.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
4
(continued)
Whilst the initial signs of recovery reported by Malta International Airport in the wake of these developments were encouraging, 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 operating routes and to increase the frequency of flights, with Q3 ending with a 113.2% increase in passengers compared to 2020.
Due to the delayed recovery, the demand 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 season, 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 decisions being experienced in Q1 2022.
Traffic Highlights
 
 
2021
 
2020
 
+/-
% Change
Passenger Movements
 
2,540,335
 
1,748,050
 
792,285
45.3%
Aircraft Movements
 
24,516
 
18,982
 
5,534
29.2%
Seat Capacity
 
4,135,138
 
3,075,565
 
1,059,573
34.5%
Seat Load Factor
 
61.4%
 
56.8%
 
 
4.6 pp
MTOW (in tonnes)
 
923,341
 
710,754
 
212,587
29.9%
Cargo and Mail (in tonnes)
 
15,997
 
17,086
 
(1,089)
(6.4%)
 
 
Q1 2021
 
Q1 2020
% Change
Q2 2021
Q2 2020
% Change
Passenger Movements
 
         98,493
 
         1,009,051
(90.2%)
        305,317
                 8,799
3369.9%
Aircraft Movements
 
            1,563
 
                8,467
(81.5%)
3,499
                    822
325.7%
Seat Capacity
 
         196,154
 
         1,449,061
(86.5%)
        539,587
               54,817
884.3%
Seat Load Factor
 
50.2%
 
69.6%
(19.4 pp)
56.6%
16.1%
40.5 pp
MTOW (in tonnes)
 
          55,777
 
             331,475
(83.2%)
        125,673
               31,728
296.1%
Cargo and Mail (in tonnes)
 
            3,981
 
                4,360
(8.7%)
3,888
                 4,187
(7.1%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q3 2021
 
Q3 2020
% Change
Q4 2021
Q4 2020
% Change
Passenger Movements
 
     1,137,600
 
           533,504
113.2%
        998,925
             196,696
407.9%
Aircraft Movements
 
          10,612
 
                6,388
66.1%
8,842
                3,305
167.5%
Seat Capacity
 
     1,850,634
 
         1,069,903
73.0%
      1,548,763
            501,784
208.7%
Seat Load Factor
 
61.5%
 
49.9%
11.6 pp
64.5%
39.2%
25.3 pp
MTOW (in tonnes)
 
403,030
 
            227,538
77.1%
        338,861
             120,013
182.4%
Cargo and Mail (in tonnes)
 
4,020
 
                4,287
(6.2%)
4,108
                4,253
(3.4%)
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
5
(continued)
Operational Performance Indicators
Malta International Airport has been participating in a survey developed and managed by Airports Council International (ACI) since 2005. Over the past 12 years, Malta International Airport has consistently ranked among the top five airports in Europe, being awarded the “Best Airport” title in the five to 15 million passenger category in both 2019 and 2020.
 
The Airport Service Quality (ASQ) departure survey gathers information from passengers just before they board their flight, providing airport operators with valuable feedback on surveyed passengers’ experience at the airport. The analysis of the feedback collected enables Malta International Airport to continue improving the terminal facilities and the services it provides to guests, with the aim to continue increasing passengers’ overall satisfaction with their experience at the airport.
Participation in the ASQ survey also allows Malta International Airport to benchmark its results against the results achieved by other airports of different sizes and in different regions. Due to the continued impact of COVID-19, 2021 saw the number of participating airports worldwide drop from over 400 in 2019 to just around 300 airports during the year under review. The number of European airports participating in Q4 2021 amounted to 93.
Malta International Airport’s scores for the four quarters of 2021 are tabulated below. Key performance indicators, including terminal cleanliness, waiting times and staff courtesy, are measured using a five-point range, with 5 being the highest score. The overall average satisfaction score for 2021 was 4.43, which is very encouraging particularly considering the challenges and circumstances faced throughout the year.  
Led by a vision of service excellence, the Company will continue working towards maintaining high overall satisfaction scores, which would place Malta International Airport among the top five European performers on the ASQ surveys in the coming years.
 
 
2021
 
2020
 
+/-
1st Quarter
 
4.45
 
4.43
 
0.02
2nd Quarter
 
4.46
 
n.a.
 
n.a.
3rd Quarter
 
4.40
 
4.43
 
(0.03)
4th Quarter
 
4.42
 
4.53
 
(0.11)
Average for the year
 
4.43
 
4.46
 
(0.03)
In November 2021, Malta International Airport reached Level 3 of ACI’s Customer Experience Accreditation Programme, becoming the first European airport to accomplish this. Moreover, so far, there are only three other airports worldwide that have reached the same level of this programme.
The ACI Airport Customer Experience Accreditation programme is the only worldwide customer experience management accreditation designed specifically to recognise the efforts and enhancements airports make to deliver a better customer experience. Reaching this next level of accreditation is a significant accomplishment for Malta International Airport as it testifies the Company’s commitment to improving the customer experience as well as its relationship with stakeholders and the community it serves.
Infrastructural Investments
Soon after the outbreak of the COVID-19 crisis in Malta in 2020, the Group suspended all non-essential projects in an effort to preserve its liquidity. 
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
6
(continued)
Subsequently, during the year under review, the Group focused its efforts on the expansion of the cargo village - works on which had already reached an advanced stage before the COVID-19 crisis, preparatory works for the relocation of the fuel station so as to pave the way for the SkyParks 2 development, and the complete overhaul of the food court. The overall capital expenditure during the year under review amounted to EUR 9.2 million.
At the end of the year under review, a new photovoltaic system was installed on the roof of Park East - the new multi-storey car park. This photovoltaic system can generate 760 KW peak per year and will support the Company in reaching net-zero status for emissions under its control by 2050.
In line with its commitment to provide a safe and secure airport environment, Malta International Airport modernised its firefighting vehicle fleet with a total investment of EUR 2.9 million in the procurement of three top-of-the-range fire trucks. The first of these trucks was delivered in summer 2020, while the remaining two trucks were delivered in 2021.
   
The Group also continued to prioritise digital transformation, mainly with the aim of increasing automation and providing an even better guest experience. The Company completed the upgrade programme of its Common User Terminal Equipment (CUTE) system, deploying certified digital equipment and modernising all servers and workstations. In addition to the investment in the digital infrastructure, a new handling system for persons with reduced mobility (PRM) was introduced during the year under review, facilitating the delivery of services to this passenger segment.  Recognising that the guest experience extends beyond the terminal building to the online space, the Company launched a completely redesigned website, having a new customer interface for easier navigation combined with improved search functionalities.
In 2022, the Company will retain its focus on projects and works that are essential to the maintenance of the Company’s assets; invest further in order to improve guest experience, including through the expansion of the customs area; continue to modernise the airfield infrastructure; and see through to completion major IT projects such as the comprehensive network upgrade and redesign. Strategic projects that are envisaged to support the Company’s medium-term recovery, including the completion of the Cargo Village, the relocation of the fuel station and the overhaul of the food court, will see the Company invest around EUR 4.8 million in 2022 alone. Additionally, the Company will prioritise a number of long-term investments, including the development of the SkyParks 2 multi-purpose centre and business hotel and the construction of Apron X, which will improve aircraft parking capacity and cater for future growth.
Principal Risk and Uncertainties
The Board as a whole, including the Audit Committee members, is responsible for evaluating the nature and extent of the Risk Management Framework, as well as the risk profile that is acceptable to the Board. The Audit Committee periodically reviews the work carried out by the Company’s Risk Management Committee and evaluates the impact that identified risks pose to the Company’s strategic objectives.
The main strategic, corporate and operational risks and uncertainties identified during the year under review are listed below.
Aviation Environment: The aviation environment is expected 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 affecting the performance of the Group.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
7
(continued)
Additionally, business travel is predicted to continue recovering at a much slower pace than leisure travel. This could lead carriers that were traditionally associated with corporate travel to explore opportunities to foray into the leisure market.
  
Given Malta’s geopolitical position, external shocks leading to a drop in demand cannot be excluded. Comparable events experienced in other regions or countries have shown that external shocks, such as terrorism, political crises, refugee movements, and environmental threats, can have a strong impact on tourism demand even if they do not originate locally. With revenues primarily stemming from activities related to air traffic, even a small reduction in inbound tourism may impact negatively the financial performance of the company,
 
Reduced demand and/or reduced supply could potentially curb estimated traffic and profit growth. In light of this, the Company remains committed to working closely with airlines and other key industry stakeholders in order to identify the best opportunities to restore Malta International Airport’s year-round connectivity in a sustainable manner, whilst prioritising the achievement of a balanced business mix.
Pandemic Outbreak: Malta International Airport has a robust Health and Safety management framework in place. Following the COVID-19 outbreak, tailored emergency response plans, as well as protocols enabling effective case management, were implemented in order to ensure that business continuity could be maintained throughout the crisis. 
To safeguard its financial stability and preserve its liquidity, the Company also carries out regular analyses and idoneity tests. Additionally, the Company maintains a close relationship with financial institutions to strengthen its liquidity position, should the need arise.
Long-Term Capacity Constraints: Malta International Airport recorded strong traffic growth in the run-up to the COVID-19 crisis , with significant growth rates for the four years rolling from 2016 to 2019. As a result, aprons and the terminal building had been operating at capacity during peak times. While the pandemic outbreak resulted in a major downturn in international travel demand, the Company aims to retain its focus on ensuring that current 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.
Given the envisaged investment amounts in terminal and airfield infrastructure, it is crucial that such projects are executed in a timely and cost-effective manner. Failure to develop the infrastructure to the right extent may result in poor airport experiences and customer dissatisfaction, as well as in facilities that are capacity-constrained shortly after their inauguration, or oversized if the expenditure is disproportionate to the growth rate. To address these concerns, the Company regularly updates its traffic projections using a proven and reliable forecasting model and conducts extensive capacity studies combined with regular scenario analysis. At the same time, it is ensured that the setting of financial and operational goals is in line with the Company’s strategy and aligned with the required resources.
Employees
The Group employed an average of 329 employees during 2021, which average marks a drop of 12.7% over the previous year. This drop was primarily brought about by natural attrition, as a number of employees who left the Company were not immediately replaced. In total, the Group had 324 employees at year-end, including four employees working with SkyParks Business Centre and five employees working with Airport Parking Limited. 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 employees 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.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
8
(continued)
Investment in employee training was once again limited during the year under review, as efforts to manage costs resulted in an exclusive focus on essential training related to safety and mandatory competency certification. The Company’s investment in training during the year under review amounted to EUR 72,120, with increased efforts being made to provide in-house training whenever possible. In fact, 35% of the 7,028 hours of training delivered in 2021 were given by trained employees or through the Company’s online training platform. The average hours of training delivered to each employee amounted to 21 hours.
Employees’ safety and well-being was once more a priority, with special attention being placed on limiting the spread of COVID-19 at the workplace and ensuring that the team felt safe coming in to the office. Furthermore, 96% of staff benefitted from a total of EUR 66,552 in well-being allowances, which are guaranteed through the Company’s Collective Agreement with the aim of encouraging employees to lead a healthy lifestyle. Moreover, the Company continued its collaboration with the Richmond Foundation, through which it ensures that employees needing counselling services are given free access to professional assistance. During the year under review, a number of employees availed themselves of 41 counselling sessions delivered by the team of professionals at the Richmond Foundation. In 2021, there were three reportable accidents at the workplace, none of which resulted in serious injuries.
 
 
2021
 
2020
 
+/-
% Change
Headcount - 31 December
 
324
 
349
 
(25)
(7.2%)
Headcount - Average
 
329
 
377
 
(48)
(12.7%)
FTE - 31 December
 
310
 
329
 
(19)
(5.8%)
FTE - Average
 
315
 
356
 
(41)
(11.6%)
Average age (in years)
 
39.7
 
39.5
 
0
0.5%
Length of service (in years)
 
10.8
 
11.0
 
(0)
(1.8%)
Share of women in workforce
 
35.2%
 
35.2%
 
-
0.0 pp
Employee turnover rate
 
14.0%
 
13.9%
 
 
0.1 pp
Training expenses (EUR)
 
72,120
 
108,000
 
(35,880)
(33.2%)
Reportable accidents
 
3
 
6
 
(3)
(50.0%)
Corporate Responsibility
The Board of Directors is committed to achieving the highest standards of Corporate Responsibility (CR), empowering the company’s Corporate Responsibility Committe to continue driving initiatives and identifying projects that have society’s wellbeing and the environment at heart.
With timely and bold environmental decisions becoming increasingly important for the future of our planet, during the year under review, an Environmental Working Group was set up to focus exclusively on environmental matters. Malta International Airport’s environmental key performance indicators (KPIs) are now being discussed and established within this dedicated Group, before being presented to the Corporate Responsibility Committee. The Company’s performance in relation to environmental indicators, together with economic and social indicators established within the CR Committtee, is then transparently reported in detail in Malta International Airport’s annual sustainability report. This report is prepared in line with the Global Reporting Initiative (GRI) standards and PricewaterhouseCoopers are engaged for a limited assurance engagement in respect of selected sustainability information. In 2021, Malta International Airport published its sixth sustainability report.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
9
(continued)
One of 2021’s most important milestones for Malta International Airport was the advancement to Level 2 of Airports Council International’s Airport Carbon Accreditation Programme, where the Company will be expected to effectively manage its carbon emissions and show quantified reductions. In the last quarter of 2021, the airport’s fourth photovoltaic system, having a capacity of 760 kWp, was commissioned. Featuring a new bifacial technology, this PV system will increase Malta International Airport’s clean energy generation capacity by 60% as the Company continues to eye net-zero status for emissions under its control by 2050. During the same quarter, the Company also finalised works on a new Building Management System, whose superior levels of automation and integration with existing systems will contribute to enhanced energy efficiency.
In order to raise awareness on environmental issues and empower all employees to partake in the Company’s sustainability efforts, the educational internal newsletter GREENews was launched in the second quarter of the year. Topics such as the importance of biodiversity and proper waste separation were explored in this newsletter, in parallel with the setting up of a second apiary along the airport perimeter and the introduction of organic waste bins at the airport offices. Coinciding with the introduction of organic waste collection, the Company organised a training session for employees, in collaboration with local NGO Friends of the Earth, which centered on vermiculture and composting.
As the Company ramped up its environmental efforts, the Corporate Responsibility Committee supported different organisations in realising their mission within the community. During the year under review, financial support enabled Dar Pirotta, a community home for persons with disabilities, to install Wi-Fi infrastructure as part of a wider renovation project, and Dar il-Kaptan, an NGO offering respite services, to procure a van with a lifter for persons with reduced mobility. The Victory Kitchen Project also benefitted from a donation, which helped it prepare and serve more hearty meals to persons who would have otherwise gone hungry.
  
In parallel with the above-mentioned initiatives which were driven internally, the independent Malta Airport Foundation focused on external projects that safeguard Malta’s artistic, cultural and environmental heritage, whilst contributing to an elevated touristic offering.
 
Following several setbacks and delays arising from the COVID-19 crisis, in August 2021 the newly restored Combined Operations Room and ancillay war rooms in Valletta opened to the public. The Foundation’s investment in this wartime project amounted to EUR 330,000, making it the organisation’s largest investment in Malta’s heritage to date. On the heels of the completion of this project, the Malta Airport Foundation announced that it was going to be supporting the restoration and conservation of a 345-year-old work of art by Baroque master Mattia Preti. This painting is housed inside the Żurrieq Parish Church, which is just a 10-minute drive away from Malta International Airport. The Foundation is currently exploring the possibility of investing in museum-grade lighting that would allow people to better appreciate this painting.
Smaller scale initiatives included the organisation of two underwater clean-ups in Marsaxlokk and Marsalforn, during which around 1.8 tonnes of marine litter were elevated from the sea-bed, and the continuation of Foundation Talks. During 2021, five such talks were broadcast, with the topics explored ranging from ocean governance and underwater cultural heritage, to the challenges faced by local NGOs as cultural sites closed down due to COVID-19 and how virtual museums enabled people to continue experiencing art despite these closures.
   
Financial Performance
Financial Results
The revenue generated by the Group during the year under review increased by EUR 15.2 million, from EUR 32.2 million in 2020 to EUR 47.4 million in 2021. This marked an increase of 47.4% in line with the increase in passenger movements.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
10
(continued)
Earnings before interest, taxation, depreciation and amortisation (EBITDA) of the Group increased by EUR 18.5 million, from EUR 5.6 million in 2020 to EUR 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 EUR 4.3 million in 2020, it closed off 2021 in the black with a net profit of EUR 7.0 million.
Continuation of initiatives to preserve liquidity and maintain financial stability
Due to the overall market situation and limited visibility in relation to the industry’s recovery, efforts to preserve liquidity and maintain the Group’s financial stability extended  into the year under review. The implementation of cost-cutting measures in 2021 contributed to an overall reduction of 12% in operating costs compared to 2020.
Among other measures, the Board of Directors of the Company, including the Chief Executive Officer and the Chief Financial Officer, accepted a voluntary 15% reduction in their remuneration. Moreover, the management team accepted the proposed temporary salary reductions of 10%, which were effective from 1 February until 30 April 2021. In addition to the contributions of the Board of Directors and the management team, temporary salary reductions based on a four-and-a-half-day working week for the period from February to April were agreed to by the Unions representing the rest of the employees.
During the entire reporting period, the Company continued to benefit from the COVID-19 Wage Supplement introduced from March 2020, whereby EUR 800 per each full-time employee were received.
Revenues
The total revenue of the Group increased by 47.4% or EUR 15.2 million compared to 2020, up from EUR 32.2 million to EUR 47.4 million. Aviation-related revenues are the most important income stream of the Group. In 2021, the airport segment contributed a share of 58.6% of total revenues (2020: 55.5%), showing an increase of 55.7% or EUR 9.9 million over the previous year. Revenues from the Retail and Property segment totalled EUR 19.5 million (2020: EUR 14.0 million), which represents an increase of 39.2%. The remaining portion of EUR 0.1 million of revenues originated from the Other segment and contributed a 0.3% share.
Staff Costs
Staff costs of the Group amounted to EUR 6.8 million in 2021, representing a decrease of EUR 1.9 million or 21.7% over 2020. This decrease was the result of lower staff numbers (-11.6%) as well as the full-year effect of the COVID-19 Wage Supplement.
Other Operating Expenses
Costs for customer services, passenger screening, VIP and utilities, reflected the recovery in demand.  The increase of these passenger-related costs was more than offset by the ongoing strict cost-saving programme, which was first implemented in 2020. This led the other operating expenses of the Group to decrease by 7.5% on a year-on-year basis; from EUR 17.7 million in 2020 to EUR 16.4 million in 2021.
Depreciation and Amortisation
Depreciation and amortisation amounted to EUR 11.3 million in the year under review, compared with EUR 9.6 million in the previous year. The increase of EUR 1.7 million resulted from the year-round operation of Park East as well as from the implementation of necessary airfield infrastructure investments and the completion of the fire-engine replacement programme.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
11
(continued)
Comprehensive Income and Dividends
The financial results of the Group and the Company for the year ended 31 December 2021 are shown in the Statement of Comprehensive Income on page 31. The Group’s total comprehensive profit for the year after taxation amounted to EUR 7.0 million (2020: net loss EUR 4.3 million).
Having carefully analysed the Group’s accounts and external forces that are likely to continue affecting consumer confidence and air travel in the forseeable future, the Board of Directors believes that, with an aim to safeguard the best interests of the Company as a whole and its stakeholders for the long-term, it is not prudent to recommend the payment of dividend for the year ended 31 December 2021. The Board of Directors’ decision to continue exercising caution in relation to the management of the Group’s finances also stems from the slow start to 2022 in terms of passenger traffic and the limited visibility of the way ahead.
Financial Position
The profit for the year, together with shareholders’ funds brought forward from the previous year, resulted in shareholders’ funds as at 31 December 2021 of EUR 131.8 million and EUR 130.4 million for the Group and the Company, respectively. These totals were up from EUR 124.8 million and EUR 123.9 million, respectively, as at year-end 2020.
Going Concern
After reviewing the Company’s budget for the next financial year and its long-term plans, the Directors are of the opinion that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the Financial Statements.
Financial Risk Management
The financial risks of the Group and the Company identified during the year and their financial risk management objectives are outlined in detail in Note 37 of the Financial Statements.
Financial Key Performance Indicators
 
 
 
 
 
 
 
Variance
Financial Indicators (EUR mn)
 
2021
 
2020
 
abs.
in %
Total Revenue
 
47.4
 
32.2
 
15.2
47.4%
thereof Aviation Revenue
 
27.8
 
17.9
 
9.9
55.7%
thereof Non-Aviation Revenue
 
19.6
 
14.3
 
5.3
36.9%
EBITDA
 
24.1
 
5.6
 
18.5
n.a.
EBITDA Margin (in %)
 
50.8%
 
17.4%
 
 
33.3 pp
EBIT
 
12.8
 
(4.0)
 
16.8
n.a.
EBIT Margin (in %)
 
27.0%
 
(12.4%)
 
 
39.4 pp
Net Profit / (Loss)
 
7.0
 
(4.3)
 
11.2
n.a.
ROCE (in %)
 
5.0%
 
(1.8%)
 
 
6.7 pp
Cash (incl. term deposits)
 
32.7
 
31.0
 
1.7
5.4%
Equity
 
131.8
 
124.8
 
7.0
5.6%
Balance Sheet Total
 
242.7
 
235.0
 
7.7
3.3%
Capital Expenditure
 
9.2
 
16.3
 
(7.1)
(43.6%)
Taxes on Income
 
4.1
 
(1.5)
 
5.7
n.a.
Average Employees (No.)
 
329
 
377
 
(48)
(12.7%)
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
12
(continued)
Share Capital
The share capital of the Company is EUR 33,825,000 divided into three classes of shares as follows:
•81,179,990 Ordinary ‘A’ Shares representing approximately 60% of the total issued share capital;
•54,120,000 Ordinary ‘B’ Shares representing 40% of the total issued share capital; and
•10 Ordinary ‘C’ Shares.
All shares issued have a nominal value of EUR 0.25 and are fully paid up and allotted.
The Ordinary ‘A’ Shares are admitted to the official list of the Malta Stock Exchange, whilst the Ordinary ‘B’ and Ordinary ‘C’ Shares are not admitted or traded on an exchange.
The Ordinary ‘A’ Shares and Ordinary ‘B’ Shares shall entitle their holders to the same rights, benefits and powers in the Company save for the transferability thereof. The Ordinary ‘A’ Shares shall be freely transferable whilst the Ordinary ‘B’ Shares were non-transferable for a period of fifteen (15) years from 26 July 2002, upon which date they automatically became fully and freely transferable without the need of any formality.
The Ordinary ‘C’ Shares are held by and, in terms of the Memorandum of Association, may only be held by the Government of Malta. It does not carry any right to receive dividends or assets on a winding up or other return of capital but entitles the Government of Malta to appoint members on the National Interest Matters Committee pursuant to article 58.10 of the Articles of Association of the Company.
Save for the above, there are no other restrictions attached to the shares of the Company.
No changes in the share capital of the Company were made nor did the Company acquire ownership of, or any rights over, any portion of its own share capital.
The following shareholders have an interest in more than 5% of the issued share capital of the Company:
•Malta Mediterranean Link Consortium Ltd
•Government of Malta
•VIE (Malta) Ltd
Directors
Appointment and Replacement of Directors
The Board of Directors of the Company is composed of a maximum of eight (8) directors. Five (5) directors are Non-Executive Directors and a maximum of three (3) directors, amongst whom is the CEO, are Executive Directors.
Any shareholder holding not less than 20% of the issued share capital of the Company having voting rights is entitled to appoint one director for each 20% shareholding by a letter addressed to the Company. In this respect, Malta Mediterranean Link Consortium Limited is entitled to appoint two (2) Non-Executive Directors and the Government of Malta is entitled to appoint one (1) Non-Executive Director. The remaining Non-Executive Directors are appointed by the shareholders in a general meeting pursuant to the Articles of Association.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
13
(continued)
Unless appointed for a longer term, a director holds office from one Annual General Meeting to the next and is eligible for re-appointment. The maximum period for which a director may be appointed is a term of three (3) years, following the lapse of which, such director shall be eligible for re-appointment.
In terms of the Articles of Association, the CEO of the Company shall occupy one of the Executive Director positions. The other Executive Directors to be co-opted to the Board are the Chief Financial Officer and the Chief Commercial Officer.
Powers of Directors
The directors of the Company have all the powers necessary to manage and direct the Company. The Company is empowered to buy back any of its shares, subject to the limitations and restrictions at law and the Capital Market Rules. Subject to the authority of shareholders, to be given at three (3) year intervals, the directors are also empowered to issue further shares in the Company.
Directors
The directors who served during the year were:
Director
Title
Director since
Mr Nikolaus Gretzmacher
Chairman & Non-Executive Director
2012
Ms Rita Heiss
Non-Executive Director
2015
Dr. Cory Greenland
Non-Executive Director
2015
Dr. Wolfgang Koeberl
Non-Executive Director
2016
Mr Florian Nowotny
Non-Executive Director
2017
Mr Alan Borg
CEO and Executive Director
2012
Mr Karl Dandler
CFO and Executive Director
2014
In accordance with paragraph 56.1 of the Company’s Articles of Association, all the present directors are to retire at the forthcoming Annual General Meeting. The appointment of the new directors will take place in accordance with paragraphs 55 and 56 of the same Articles of Association at the Annual General Meeting.
Directors’ Interests in Material Contracts
The following directors have declared their interests in the share capital of the Group:
•Mr Nikolaus Gretzmachera non-beneficial interest1
•Ms Rita Heissa non-beneficial interest2
•Dr Cory Greenlanda beneficial interest
No other director has a beneficial or non-beneficial interest in the Company’s share capital.
Auditor
A resolution to appoint PricewaterhouseCoopers as auditor of the Company will be proposed at the forthcoming Annual General Meeting.
1 These shares are held by MMLC and VIE Malta Limited, companies of which Mr Gretzmacher is a director.
2 These shares are held by MMLC and VIE Malta Limited, companies of which Ms Heiss is a director.
Malta International Airport plc
Directors’ Report
Year Ended 31 December 2021
14
(continued)
Outlook
Traffic Development
2021 was dominated by uncertainty and uneven recovery across Europe, with Malta International Airport recovering at an even slower pace than its Southern European counterparts. Nevertheless, the summer months highlighted the resilience of the travel industry as the demand for air travel started to gain momentum almost immediately after travel restrictions were eased and airlines started to operate more stable flight schedules. Travellers favoured point-to-point leisure destinations, which was an opportune situation for Malta.
Due to the uncertainty surrounding the industry and new developments in relation to restrictions and the epidemiological situation in Europe in Q4 2021, airlines have continued to plan for the short-term and to monitor demand. Factors such as vaccination roll-out, national travel policies and the standardisation of testing protocols will remain key components for recovery, whilst competition between destinations is expected to increase for the summer 2022 season. While a number of countries including the UK, France and Italy have announced that they will be easing their restrictions in February, at the time of writing, the Maltese authorities have not yet announced the easing of national restrictions in relation to travel.
Malta International Airport and the Malta Tourism Authority have remained in active discussions with partner airlines to work on rebuilding connectivity. A combination of flag and low-cost carriers are expected to operate several primary routes to Malta throughout 2022, in line with the Company’s aim to strike a balanced business mix, with the possibility of increasing their schedules once demand allows.
Whilst gaps in certain strategic markets remain, talks are currently ongoing with new and existing carriers regarding the potential launch of new services for the upcoming summer season.
Financial Performance
Given the fluidity of the current situation and the limited visibility of the way ahead, the company does not have sufficient data to provide the market with reliable guidance at this time.
Approved by the Board of Directors on 22 February 2022 and signed on its behalf by:
Nikolaus GretzmacherAlan BorgKarl Dandler
ChairmanChief Executive OfficerChief Financial Officer
Malta International Airport p.l.c.
Statement of Directors’ Responsibilities
15
The directors are required by the Companies Act (Cap. 386) to prepare financial statements in accordance with International Financial Reporting Standards as adopted by the EU which give a true and fair view of the state of affairs of the Company and the Group at the end of each financial year, and of the profit or loss of the Company and the Group for the year then ended.
In preparing the financial statements, the directors should:
•select suitable accounting policies and apply them consistently;
•make judgments and estimates that are reasonable; and
•prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the Company and the Group will continue in business as a going concern.
The directors are responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Company and the Group and which enable the directors to ensure that the financial statements comply with the Companies Act (Cap. 386). This responsibility includes designing, implementing and maintaining such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The directors are also responsible for safeguarding the assets of the Company and the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Additionally, the directors are responsible for:
•the preparation and publication of the Annual Financial Report, including the consolidated financial statements and the relevant tagging requirements therein, as required by Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS,
•designing, implementing, and maintaining internal controls relevant to the preparation of the Annual Financial Report that is free from material non-compliance with the requirements of the ESEF RTS, whether due to fraud or error, and consequently, for ensuring the accurate transfer of the information in the Annual Financial Report into a single electronic reporting format.
Statement of responsibility pursuant to the Capital Market Rules issued by MFSA
We confirm that to the best of our knowledge:
a)in accordance with the Capital Market Rules, the financial statements give a true and fair view of the financial position of the Company and the Group as at 31 December 2021 and of their financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the EU; and
b)in accordance with the Capital Market Rules, the Directors’ Report includes a fair review of the performance of the business and the financial position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Karl Dandler
Chief Financial Officer
obo/directors
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
16
Introduction
Pursuant to the Capital Market Rules issued by MFSA, Malta International Airport p.l.c. (the “Company”) should endeavour to adopt the Code of Principles of Good Corporate Governance contained in Appendix 5.1 to Chapter 5 of the Capital Market Rules (the “Code”). In terms of Capital Market Rule 5.94, the Company hereby reports on the extent of its adoption of the principles of the Code for the financial year being reported upon.
The Company acknowledges that the Code does not dictate or prescribe mandatory rules, but recommends principles of good practice. However, the directors strongly believe that such practices are generally in the best interests of the Company and its shareholders and that compliance with the principles of good corporate governance is not only expected by investors but also evidences the directors’ and the Company’s commitment to a high standard of governance.
The Board of Directors (the “Board”) has carried out a review of the Company’s compliance with the Code for the financial year being reported upon, namely the year ended 31 December 2021.
General
The directors believe that good corporate governance is a function of a mix of checks and balances that best suit the Company and its business. Accordingly, whilst there are best practices that can be of general application, the structures that may be required within the context of larger companies are not necessarily and objectively the best structures for companies whose size and/or business dictate otherwise. It is in this context that the directors have adopted a corporate governance framework within the Company that is designed to better suit the Company, its business, scale and complexity whilst still ensuring proper checks and balances.
The Company has a corporate decision-making and supervisory structure that is tailored to suit the Company’s requirements and designed to ensure the existence of adequate checks and balances within the Company, whilst retaining an element of flexibility.
In general, the directors believe that the Company has adopted appropriate structures to achieve an adequate level of good corporate governance, together with an adequate system of checks and balances in line with the Company’s requirements.
This corporate governance statement (the “Statement”) will now set out the structures and processes in place within the Company and how these effectively achieve the goals set out in the Code. For this purpose, this Statement will make reference to the pertinent principles of the Code and then set out the manners in which the directors believe that these have been adhered to. Where the Company has not complied with any of the principles of the Code, this Statement will give an explanation for non-compliance.
For the avoidance of doubt, reference in this Statement to compliance with the principles of the Code means compliance with the Code’s main principles, and the Code Provisions.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
17
(continued)
Compliance with the Code
Principle One: The Board
The directors believe that for the period under review the Company has generally complied with the requirements of this principle and the relative code provisions.
The Board is composed of members who are fit and proper to direct the business of the Company with honesty, competence and integrity. All the members of the Board are fully aware of, and
conversant with, the statutory and regulatory requirements connected to the business of the Company. The Board is accountable for its performance and that of its delegates too.
The Board is responsible for determining the Company’s strategic direction and organisational requirements, whilst ensuring that the Company has the appropriate mix of financial and human resources to meet its objectives and improve its performance. Throughout the period under review, the Board provided the necessary leadership in the overall direction of the Company and has adopted prudent and effective systems whereby it obtains timely information from the Chief Executive Officer (the “CEO”) as the head of the Executive Committee to ensure an open dialogue between the CEO and directors at regular intervals and not only at meetings of the Board. The Company has a structure that ensures a mix of Executive and Non-Executive Directors that enables the Board, and particularly the Non-Executive Directors to have direct information about the Company’s performance and business activities from the head of executive management that is also a director on the Board.
Principle Two: Chairman and Chief Executive Officer
In line with the requirements of Principle Two, the Company has segregated the functions of the CEO and the Chairman. Whilst the CEO heads the Executive Committee, the Chairman’s main function is to lead the Board and set its agenda. The Chairman is also responsible to ensure that the Board receives accurate, timely and objective information so that the directors can take sound decisions and effectively monitor the performance of the Company. The Chairman exercises independent judgement and ensures that, during Board meetings, there is effective communication with stakeholders as well as active engagement by all directors for the discussion of complex and/or contentious issues.
The CEO is accountable to the Board of the Company for all business operations. He has the power and authority to appoint the persons to fill in the post of each member of the Executive Committee. He also has the discretion to ask any one or more of such members, from time to time, to address the Board on matters relating to the operations of the Company and its Subsidiaries. The Board, of course, is entitled to call in, at its discretion, any one or more of the executives of the Company.
Principle Three: Composition of the Board
The full maximum complement of the Board, in line with Principle Three is of five (5) Non-Executive Directors and three (3) Executive Directors, a balance that is entrenched in the Company’s Memorandum and Articles of Association, which requires that the CEO is an ex ufficio director together with a maximum of two (2) other senior executives of the Company. The presence of top executives on the Board is designed to ensure that all the members of the Board, including Non-Executive Directors, have direct access at meetings of directors to the individuals having the prime responsibility for day-to-day operations and executive management of the Company and to the implementation of policies that allow effective discussion and the availability of all the information necessary to carry out their functions in the best possible manner.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
18
(continued)
The members of the Board for the year under review were:
Director
Title
Director since
Mr Nikolaus Gretzmacher
Chairman & Non-Executive Director
2012
Ms Rita Heiss
Non-Executive Director
2015
Dr Cory Greenland
Non-Executive Director
2015
Mr Wolfgang Koeberl
Non-Executive Director
2016
Mr Florian Nowotny
Non-Executive Director
2017
Mr Alan Borg
CEO and Executive Director
2012
Mr Karl Dandler
CFO and Executive Director
2014
Pursuant to generally accepted practices, as well as the Company's Articles of Association, the appointment of non-executive directors to the Board is reserved exclusively to the Company's shareholders, except in so far as an appointment is made to fill a vacancy on the Board.
The Board normally meets every eight (8) weeks and as a matter of Board policy, a guideline was established whereby at its first meeting, meetings are scheduled for the full year. Board meetings concentrate mainly on strategy, operational performance and financial performance. The Board also delegates specific responsibilities to the CEO and the Committees, notably the Executive Committee and the Audit Committee which operate under their respective formal terms of reference. Directors may, in the furtherance of their duties, take independent professional advice on any matter at the Company's expense.
For the purposes of Code Provision 3.2, requiring the Board to report on whether it considers each Non-Executive Director as independent in line with the requirements of that Code Provision, the Board considers each of the Non-Executive Directors as independent within the meaning of the Code.
Save for what is stated hereunder, none of the Non-Executive Directors:
(a)are or have been employed in any capacity by the Company;
(b)have or have had a significant direct or indirect relationship with the Company;
(c)receive significant additional remuneration from the Company;
(d)have close family ties with any of the executive members of the Board;
(e)have served on the Board for more than twelve consecutive years;
(f)have been within the last three years an engagement partner or a member of the audit team of the present or past external auditor of the Company or any Company forming part of the same group; and
(g)have a significant business relationship with the Company.
Mr Nikolaus Gretzmacher, and Ms Rita Heiss (Non-Executive Directors) are currently members of the Board of Directors of Malta Mediterranean Link Consortium Limited, a Company holding 40 per cent of the issued and voting capital of the Company, and, together with Mr Wolfgang Koeberl are also employees of Flughafen Wien AG, the company’s ultimate parent company. Notwithstanding the above relationship the Board still considers Mr Gretzmacher, Ms Heiss and Mr Koeberl as having the required skills, experience and integrity to retain their impartiality in acting as directors of the Company.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
19
(continued)
In terms of Principle 3.4, each Non-Executive Director has declared in writing to the Board that he/she undertakes:
•to maintain in all circumstances his/her independence of analysis, decision and action;
•not to seek or accept any unreasonable advantages that could be considered as compromising his/her independence; and
•to clearly express his/her opposition in the event that he/she finds that a decision of the Board may harm the Company.
Principle Four: The Responsibilities of the Board
In line with the requirements of Principle Four, it is the Board’s responsibility to ensure a system of accountability, monitoring, strategy formulation and policy development.
The Board believes that this responsibility includes the appropriate delegation of powers to management and the organization of the executive team in a manner that is designed to provide
high levels of comfort to the directors that there is proper monitoring and accountability apart from appropriate implementation of policies. The Board delegates specific responsibilities to committees, which operate under their respective formal Terms of Reference.
Executive Committee
The Board’s link to the Executive Committee is principally the CEO, together with the other Executive Director on the Board, both of whom are members of the Executive Committee.
The Executive Committee comprises the Executive Directors and the heads of each business unit of the Group. The role of the Executive Committee is to implement the Company`s strategy and policies, through the various departments within the organisation. It also makes recommendations to the Board on matters which are beyond its remit. The Chief Executive Officer chairs the Executive Committee.
The members of the Committee for the period under review were:
•Mr Alan Borg (Chief Executive Officer)
•Mr Karl Dandler (Chief Financial Officer)
•Mr Martin Dalmas (Airport Operations and Business Continuity)
•Mr George Mallia (Retail and Property)
•Mr Ian Maggi (Innovation and Technology)
•Mr Patrick Murgo (Security Services)
•Ms Tina Lombardi (Human Resources, Strategy, Marketing & Brand Development) 
•Mr Alex Cardona (Traffic Development and Customer Services)
•Mr Kevin Alamango (Technical Services)
•Mr Robert Mizzi (Aerodrome Safety & Compliance)
The Executive Committee has met 36 times during the year under review.
The Company has also established three cross-functional Committees, the ‘Corporate Responsibility (CR) Committee, the Customer Experience (CE) Committee and the Finance Committee, which meet on a regular basis.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
20
(continued)
The CR Committee is responsible for the company’s overall CR policy and strategy including the respective formulation and implementation thereof as well as the company’s environmental planning, Airport Carbon Management and supervises the Malta Airport foundation.
The CE Committee systematically deals with how to improve the airport’s Customer Experience with a special focus on customer journeys, touch points, pain points and delighters as well as ASQ benchmarking, customer feedback and ASQ’s Customer Experience Accreditation programme.
The Finance Committee analyses and interprets the company’s financial information on a monthly and quarterly basis with a special focus on current and future income streams, cost drivers and margins to secure a sustainable growth for the Company.
The Chief Executive Officer chairs these cross-functional Committees and all meetings are minuted.
Audit Committee
As part of its corporate governance structures the Company has an Audit Committee in line with the requirements of the Capital Market Rules. The principal roles of the Audit Committee are in line with the requirements of Capital Market Rule 5.127 and include the following:
•monitoring the financial reporting process and submitting recommendations or proposals to ensure its integrity;
•monitoring of the effectiveness of the company’s internal quality control and risk management system and, where applicable, its internal audit, regarding the financial reporting of the Issuer, without breaching its independence;
•monitoring of the audit of the annual and consolidated financial statements;
•reviewing additional reports prepared by the statutory auditor/s or audit firm/s;
•reviewing and monitoring the independence of the statutory auditors or the audit firms;
•taking responsibility for the procedure for the selection of statutory auditor/s or audit firm/s; and
•recommending the statutory auditor/s or the audit firm/s to be appointed.
During the year ended 31 December 2021 the Committee consisted of three (3) Non-Executive Directors, namely Mr Florian Nowotny, Ms Rita Heiss, and Dr Cory Greenland. The Committee has the power and authority under its Terms of Reference to summon any person to assist it in the performance of its duties. The directors believe that, during the year under review, Mr Florian Nowotny was independent and competent in accounting and/or auditing in terms of Capital Market Rule 5.117.  Mr Nowotny is considered as competent in accounting and/or auditing in view of his qualifications and experience.
When the Audit Committee’s monitoring and review activities reveal cause for concern or scope for improvement, it shall make recommendations to the Board on the action needed to address the issue or make improvements. In the period under review the Audit Committee has held 7 meetings.
Company Executives participate in periodic strategic reviews, which include consideration of long-term projections and the revaluation of the business objectives in the short term. Regular budgets and strategic plans are prepared, which are incorporated into a comprehensive strategic plan for the Company. Performance against these plans is actively monitored and reported to the Board using key risk and performance indicators so that corrective measures can be taken to address any deficiencies and to ensure the future sustainability of the Company. These key risk and performance indicators are benchmarked against industry norms so that the Company’s performance can be effectively evaluated.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
21
(continued)
In view of the number of members of the Board, the directors believe that its size is manageable to be able to address most issues as a Board rather than create sub-committees of the Board that may be more suitable in the case of companies having larger Boards. Indeed, the Board feels that its size and membership allow directors the opportunity to discuss matters directly and that this is a more effective and efficient manner to conduct its business.
The directors, however, are aware that there may be situations that require the delegation to certain committees of certain tasks or assignments and the Board has on occasion composed ad hoc committees for this purpose.
Notwithstanding that the board has established no formal policy on the matter, as part of succession planning, the Board and CEO ensure that the Company implements appropriate schemes to recruit, retain and motivate employees and senior management.
In ensuring compliance with other statutory requirements and with continuing listing obligations, the Board is advised directly, as appropriate, by its appointed broker, legal advisor and external auditors. The Board also ensures that appropriate policies and procedures are in place to assure that the highest standards of corporate conduct are maintained.
Directors are entitled to seek independent professional advice at any time on any aspect of their duties and responsibilities at the Company’s expense.
Principle Five: Board Meetings
The Board believes that it complies fully with the requirements of this principle and the relative Code Provisions, in that it has systems in place to ensure the reasonable notice of meetings of the Board and the circulation of discussion papers in advance of meetings so as to provide adequate time for directors to prepare themselves for such meetings. Minutes are prepared during Board meetings recording faithfully attendance, discussions and resolutions. These minutes are subsequently circulated to all directors as soon as practicable after the meeting.
The Board meets as often and as frequently as required in line with the nature and demands of the business of the Company. During the financial year under review the Board held six (6) meetings:
Director
Attendance Board Meetings 2021
Mr Nikolaus Gretzmacher
6/6
Ms Rita Heiss
6/6
Dr Cory Greenland
6/6
Mr Wolfgang Koeberl
6/6
Mr Florian Nowotny
6/6
Mr Alan Borg
6/6
Mr Karl Dandler
6/6
The Chairman ensures that all relevant issues are on the agenda and supported by all available information, whilst encouraging the presentation of views pertinent to the subject matter and giving all directors every opportunity to contribute to relevant issues on the agenda. The agenda on the Board strikes a balance between long-term strategic and short-term performance issues.
Directors attend meetings on frequent and regular basis and dedicate the necessary time and attention to their duties as directors of the Company.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
22
(continued)
Principle Six: Information and Professional Development
The CEO is appointed by the directors and enjoys the full confidence of the Board. The CEO, although responsible for the selection of the Executive Committee and the recruitment of senior executives, regularly updates the directors on the appointment of senior executives. The Board is satisfied that the current schemes for executive compensation and professional development are designed to render the Company an attractive proposition for the retention of top executives within the Company and to motivate the Executive Committee.
During the course of the year under review the directors attended a training session dealing with legal and practical issues on governance and the duties of directors in complying with the requisite standards of conduct and governance under the Capital Market Rules, including the continuing listing obligations of the company.
The board intends to organise other professional development sessions for directors and executives designed specifically to enable them to discharge their functions more efficiently and in line with the high standards expected of them.
Directors have access to the advice and services of the Company Secretary who is also the legal counsel to the Board and the Company. As part of succession planning and employee retention, the Board and CEO ensure that the Company implements appropriate schemes to attract, retain and develop the best talent and keep employees engaged and motivated.
Principle Seven: Evaluation of the Board’s Performance
The Board has not appointed a committee for the purpose of undertaking an evaluation of the Board’s performance in accordance with the requirements of Code Provision 7.1 but has conducted an informal review of its own performance over the period under review. Refer to the note under the Section on ‘Non-Compliance with the Code’.
Principle Eight: Committees
A.Remuneration Committee
The Company has no performance-related remuneration payable to its Non-Executive Directors and accordingly, as allowed by Code Provision 8A.2, it has not appointed a Remuneration Committee.  Instead, the functions of the Remuneration Committee are vested in the Board, which itself establishes the remuneration policies of the Company. The Non-Executive members of the Board establish the policies and decide on the performance related remuneration of its Executive Directors.  Further details on remuneration of the directors are set out in the Remuneration Report for the financial year under review and is in compliance with the requirements of Capital Market Rule 12.26 and contains the information required by Appendix 12.1 of the Capital Market Rules.
The Board notes that the organizational set-up of the Company and the size of the Board itself, together with the fact that Non-Executive Directors are not entitled to performance related remuneration, does not, in the opinion of the directors, warrant the establishment of a Remuneration Committee. Remuneration policies have therefore been retained within the remit of the Board itself, and as already stated in the case of the Executive Directors, it is the Non-Executive members of the Board that decide on their performance related remuneration.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
23
(continued)
The directors believe that certain committees that are suggested in the Code are either not required by the Company, or the functions of a number of committees may efficiently be merged or undertaken by the Board itself. In addition, the Board believes that its size and composition is sufficient for the proper direction and management of the Company and its business and that there would be no value added to the Company and its shareholders to increase the number of Board members simply to be able to have separate committees of the Board – when the same functions can properly be undertaken by the Board itself. The directors will retain the need of such committees under review and as in the past, may appoint ad hoc committees of directors to deal with specific issues as and when these arise.
For the purposes of the provisions of Article 63 of the Company’s Articles of Association, the aggregate emoluments paid to the directors is EUR 487,988 which is within the amount approved by the shareholders of EUR 989,160 for the purpose of that article. The aggregate emoluments paid to the members of the Executive Committee excluding executive directors amount to EUR 557,258.
B.Nomination Committee
The Board believes that the main principle has been duly complied with, in that it is the Articles of Association themselves that establish a formal and transparent procedure for the appointment of directors. The Company has, however, not established a Nominations Committee as suggested by the Code.
Principle Nine: Relations with Shareholders and with the Market
The Board serves the legitimate interests of the Company, accounts to shareholders fully and ensures that the Company communicates with the market effectively through a number of Company announcements, informing the market of significant events happening within the Company.
The Company also communicates with its shareholders through the Annual General Meeting (AGM), where the Board communicates directly with shareholders on the performance of the Company over the last financial year and informs shareholders of the challenges that lie ahead.
Business at the Company's AGM will cover the approval of the Annual Report and the audited Financial Statements, the declaration of a dividend, if any, the election of directors, the determination of the maximum aggregate emoluments that may be paid to directors, the appointment of auditors and the authorisation of the directors to set the auditors' remuneration. Any other matter that may be placed by the directors before the AGM will be dealt with as “Special Business”.
Apart from the AGM, the Company has continued to communicate with its shareholders and the market by way of the Annual Report and Financial Statements, by publishing its results on a six-monthly basis during the year and through the directors’ statements, which are also published on a six-monthly basis, as well as the publication of results for each of quarter 1 and quarter 3 in a financial year. Generally, the company also communicates with the market through Company announcements to the market in general. The Company recognises the importance of maintaining a dialogue with the market to ensure that its strategies and performance are well understood. The Company's website (www.maltairport.com) also contains information about the Company and its business and is a source of further information to the market.
The Company’s Articles of Association allow minority shareholders to call special meetings on matters of importance to the Company, provided that the minimum threshold of ownership established in the Articles of Association is met.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
24
(continued)
Principle Ten: Institutional Shareholders
This Principle is specifically applicable to the institutional shareholders of the Company and their responsibilities, including their evaluation of governance disclosures.
Principle Eleven: Conflicts of Interest
The Board has established procedures on how conflicts are to be handled, if and when they arise. A director having a personal conflict on any matter is bound to inform the other members of the Board of such a conflict whether it is an actual, potential or a perceived conflict. It is then the other members of the Board that would decide on whether there exists such a conflict, actual or potential. By virtue of the Memorandum and Articles of Association, in the event that, in the opinion of the Board such a conflict exists, then the conflicted director is invited to leave the meeting when it proceeds to the vote, if any, on the matter concerned. As a matter of practice, discussions of such matters are normally conducted in the absence of the conflicted director. The Board feels that this is a procedure that achieves compliance with both the letter and the rationale of principle eleven.
Commercial relationships between the Company and other companies may be related by way of common directors and shareholders (“Related Party Transactions”). Contracts are entered into in the ordinary course of business with shareholders and other parties in which the directors have a beneficial interest. Terms and conditions of contracts negotiated with related parties are reviewed by the Company’s Audit Committee. Full disclosure of Related Party Transactions entered into during the financial year under review is made in note 32 to the Financial Statements.
The following directors have declared their interests in the share capital of the Company:
•Nikolaus Gretzmachera non-beneficial interest3
•Rita Heissa non-beneficial interest4
•Cory Greenlanda beneficial interest
No other director has a beneficial or non-beneficial interest in the Company’s share capital.
Principle Twelve: Corporate Social Responsibility
The directors are committed to high standards of Corporate Responsibility specifically in the social, economic and environmental fields both internally and externally. This is being done for the benefit of its key stakeholders which include its shareholders, employees, customers as well as the local community at large.
3 These shares are held by MMLC and VIE Malta Limited, companies of which Mr Gretzmacher is a director.
4 These shares are held by MMLC and VIE Malta Limited, companies of which Ms Heiss is a director.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
25
(continued)
Non-Compliance with Code Provisions
The directors set out below the code provisions with which they do not comply and a careful explanation as to the reasons for such non-compliance:
CodeProvision
Explanation
2.1
Whilst the Company has segregated the functions of the Chairman and the CEO, in that the two posts are occupied by different persons, the division of responsibilities between them has not been established in writing, although there is significant experience and practice that determines the two roles.
4.2
The Board has not formally developed a succession policy for the future composition of the Board of Directors as recommended by Code Provision 4.2.7. In practice, however, the Board and CEO are actively engaged in succession planning and in ensuring that appropriate schemes to recruit, retain and motivate employees and senior management are in place.
7.1
The Board believes that the size of the Company and the Board itself does not warrant the establishment of a committee specifically for the purpose of carrying out a performance evaluation of its role. Whilst the requirement under Code Provision 7.1 might be useful in the context of larger companies having a more complex set-up and a larger Board, the size of the Board is such that it should enable it to evaluate its own performance without the requirement of setting up an ad hoc committee for this purpose. The Board shall retain this matter under review over the coming year.
Having conducted an informal review of its own performance over the period under review it is the Board’s view that all members of the Board, individually and collectively, have contributed in line with the required levels of diligence and skill. In addition, the Board believes that its current composition endows the Board with a cross-section of skills and experience, not only with respect to the specific business of the Company, but also in a wider range of business areas and skills. This process was conducted by the Board itself rather than by a Committee chaired by a Non-Executive Director as required by the Code.
8B
The Board has not appointed a Nominations Committee in line with Code Provision 8B, particularly in the light of the specific manner in which the Articles of Association require that Non-Executive Directors be appointed by a shareholding qualification to the Board. The Executive Directors are, in accordance with the Articles, appointed by the Non-Executive Directors after their appointment, as aforesaid. The Board believes that the current Articles of Association do not allow the Board itself to make any recommendations to the shareholders for appointments of directors and that if this function were to be undertaken by the Board itself or a Nominations Committee, they would only be able to make a non-binding recommendation to the shareholders having the necessary qualification to appoint directors pursuant to the Articles of Association.
The Board intends to keep under review the utility and possible advantages of having a Nominations Committee and following an evaluation may, if the need arises, make recommendations to the shareholders for a change to the Articles of Association.
9.3
The Memorandum and Articles of Association does not provide any mechanism for the resolution of conflicts between shareholders or any process that would trigger arbitration in these instances. This is mitigated by ongoing open dialogue between executive management and Non-Executive Directors of the Company, to ensure that such conflicts do not arise.
9.4
The Company does not have a policy in place to allow minority shareholders to present an issue to the Board.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
26
(continued)
Internal Control
The Board is ultimately responsible for the Company's system of internal controls and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate risk to achieve business objectives, and can provide only reasonable, and not absolute, assurance against normal business risks or loss.
Through the Audit Committee, the Board reviews the effectiveness of the Company's system of internal controls, which are monitored by the Internal Auditors on a regular basis.
The key features of the Company’s system of internal control are as follows:
Organisation
The Company operates through the CEO and Executive Committee with clear reporting lines and delegation of powers.
Control Environment
The Company is committed to standards of business ethics that emulate best practice and seeks to maintain these standards across all of its operations. Company policies and employee procedures are in place for the reporting and resolution of improper activities.
The Company has an appropriate organisational structure for planning, executing, controlling and monitoring business operations in order to achieve Company objectives.
Risk Identification
Company management is responsible for the identification and evaluation of key risks applicable to their respective areas of business. A Risk Management Committee serve as a primary champion of risk management at a strategic and operational level to ensure that a sound system is in place that identifies, assesses, manages and monitors risk. In addition, through regular checks the internal auditors test the Company’s internal control systems and processes and make recommendations to management and the audit committee on any deficiency in such systems.
General Meetings
The general meeting is the highest decision-making body of the Company and is regulated by the Company’s Articles of Association. All shareholders registered on the register of members of the Company on a particular record date are entitled to attend and vote at general meetings. A general meeting is called by twenty-one (21) days’ notice.
At an Annual General Meeting what is termed as “ordinary business” is transacted, namely, the declaration of a dividend, the consideration of the accounts, balance sheets and the reports of the directors and the auditors, the election of directors, the appointment of auditors and the fixing of remuneration of directors and auditors. Other business which may be transacted at a general meeting (including at the Annual General Meeting) will be dealt with as “Special Business”.
Malta International Airport p.l.c.
Corporate Governance – Statement of Compliance
Year ended 31 December 2021
27
(continued)
Voting at any general meeting takes place by a show of hands or a poll where this is demanded. Subject to any rights or restrictions for the time being attached to any class or classes of shares, on a show of hands each shareholder is entitled to one vote and on a poll each shareholder is entitled to one vote for each share carrying voting rights of which he is a holder. Shareholders who cannot participate in the general meeting may appoint a proxy by written or electronic notification to the Company. Appointed proxy holders enjoy the same rights to participate in the general meeting as those to which the shareholder they represent is entitled.
Every shareholder represented in person or by proxy is entitled to ask questions which are pertinent and related to the items on the agenda of the general meeting and to have such questions answered by the directors or such persons as the directors may delegate for such purpose.
The directors’ statement of responsibilities for preparing the Financial Statements is set out on page 15.
The information required by:
(a)Capital Market Rule 5.97.5 is found in the Directors’ Report;
(b)Capital Market Rule 12.26 and Appendix 12.1 will be found in the Remuneration Report.
Approved by the Board of Directors on 22 February 2022 and signed on its behalf by:
Nikolaus GretzmacherAlan BorgKarl Dandler
ChairmanChief Executive OfficerChief Financial Officer
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2021
28
This Report on the remuneration of Malta International Airport plc’s (the “Company” or “MIA”) Board of Directors, including the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), has been drawn up in compliance with the requirements of Chapter 12 of the Captital Markets Rules  and contains information required by the provisions of Appendix 12.1 of the Capital Markets Rules.
The Company’s remuneration of its Board of Directors and executive management is based on the Remuneration Policy adopted and approved by shareholders at the annual general meeting of 11 November 2020. This policy may be viewed on the Company’s website at https://www.maltairport.com/corporate/investors/publications/.
The Remuneration Policy
The Company’s Remuneration Policy determines the basis for remuneration of all members of the Board of Directors of the Company. It defines the principles and guidelines that apply to both fixed and variable remuneration, including all bonuses and benefits, which can be awarded to directors and, in the case of variable remuneration, indicate the relative proportion between fixed and variable components.
The Company’s Remuneration Policy is intended as a measure to attract and retain suitable candidates to serve as directors and to provide the Company with the appropriate skills, technical knowledge, experience, and expertise both for the determination of policies and strategies of the Company as well as the supervisory role of the Board.
The overall remuneration of the Board distinguishes between the remuneration of the non-executive directors and executive directors. In the case of the non-executive directors, including the Chairman, the only component of remuneration is the fixed honorarium received by the non-executive directors, whilst in the case of the executive directors the remuneration consists of two components:
•The basic salary for the role as executive, and
•A bonus linked to individual performance and the performance of the Company.
The decision-making process with respect to remuneration
The aggregate emoluments that may be paid to the directors, including the executive directors, is decided upon by the shareholders in general meeting following a recommendation made to shareholders by the Board.
The Board then decides on the remuneration of the Chairman and the other non-executive directors consisting of a fixed honorarium to each director. The Board also establishes and approves the remuneration of the CEO and CFO with respect to their executive roles within the Company.
Key principles of remuneration
The Board of Directors of the Company consists of seven (7) individuals. Five (5) are non-executive directors and two (2) are executive directors, including the CEO.
The aggregate remuneration approved by shareholders for the financial year ended 31 December 2021 was set at € 989,160. This includes components of remuneration of both non-executive and executive directors.
In accordance with Capital Markets Rule 12.26 transposing the requirements of the new EU Shareholders’ Rights Directive (2019), the Remuneration Policy was also approved by the shareholders at the 28th annual general meeting held on 11th November 2020. This Policy requires the publication of an annual Remuneration Report, with the first year being published in the year 2021 for the year 2020.
Accordingly, this is the second year that the Company is publishing a Remuneration Report in line with the Remuneration Policy adopted by shareholders at the 28th AGM, and therefore comparable figures refer to the financial year 2020 for comparability.
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2021
29
(continued)
The Chairman and the non-executive directors
Fixed Component
The Board believes that, in line with local practice, the fixed honorarium for non-executive directors is the principal component that compensates directors for their contribution as members of the Board. The Chairman’s honorarium reflects the role as the most senior non-executive director on the Board and as the person responsible, amongst others, for chairing Board meetings and co-ordinating Board assignments.
Non-executive directors who are also delegated to sit on a sub-committee of the Board or otherwise chair such a sub-committee, are paid additional fixed honoraria for each such assignment.
None of the non-executive directors have service contracts with the Company and each non-executive director serves from one annual general meeting to the next, when the appointment of directors is conducted at the annual general meeting. Accordingly, none of the non-executive directors are entitled to any compensation if they are removed from office. Such removal would require an ordinary resolution of the shareholders at a general meeting.
The directors are entitled to be paid travelling and other reasonable expenses incurred by them in the performance of their duties as directors. The Company does not remunerate the Chairman or the other non-executive directors in any other manner, nor does it provide any loans or other guarantees to them.
Variable Component
The Chairman and non-executive directors of the Company do not receive any variable component of remuneration.
Table 1 below shows the overall remuneration of the Chairman and non-executive directors for the financial year ended 31 December 2021.
Office
Fixed Honorarium
Remuneration for sitting on subcommittees
Total
Remuneration 2021
Remuneration 2020
Mr. Nikolaus Gretzmacher
€ 23,294
 
€ 23,294
€ 22,420
€ 20,964
Ms. Rita Heiss
€ 9,318
€ 2,329
€ 11,647
€ 11,210
€ 10,482
Dr. Cory Greenland
€ 9,318
€ 2,329
€ 11,647
€ 11,210
€ 10,482
Mr. Wolfgang Koeberl
€ 9,318
 
€ 9,318
€ 8,969
€ 8,386
Mr. Florian Nowotny
€ 9,318
€ 2,329
€ 11,647
€ 11,210
€ 10,482
Total
€ 60,566
€ 6,987
€ 67,553
€ 65,019
€ 60,796
Table 1: Remuneration of non-executive directors
During 2020, due to the events occasioned by the COVID-19 crisis and the material adverse impact which these had on the Company, the non-executive directors offered to have their salary reduced by 30% between April and July 2020. Due to the ongoing COVID-19 crisis the non-executive directors offered again a salary reduction of 15% between February and April 2021. These reductions in remuneration are shown in Table 1.
Malta International Airport p.l.c.
Remuneration Report
Year ended 31 December 2021
30
(continued)
Executive Directors
The Company has two executives that are appointed members of the Board. The executive directors are the CEO and the CFO, both of whom have service contracts with the Company of a definite duration, which entitle them to a fixed salary.
Fixed Remuneration – Salary
The CEO was entitled to receive a gross salary for the financial year ended 31 December 2021 of €201,210. During 2020, due to the events occasioned by the COVID-19 crisis and the material adverse impact which these had on the Company, the CEO offered to have his salary reduced by 30% between April and July 2020. During 2021, due to the ongoing COVID-19 crisis the CEO offered again a salary reduction of 15% between February and April 2021, and consequently the remuneration received for the year 2021 was of €193,696 (2020: €180,766). The CEO also receives the following benefits: Insurance (Health-Private Hospital Scheme, Accident & Disability Insurance, and Directors & Officers’ Insurance), a Company car and a fully expensed mobile phone service.
The CFO was entitled to receive a gross salary of €157,054 for the financial year ended 31 December 2021. During 2020, due to the events caused by the COVID-19 crisis and the material adverse impact which these had on the Company, the CFO offered to have his salary reduced by 30% between April and July 2020. During 2021, due to the ongoing COVID-19 crisis the CFO also offered again a salary reduction of 15% between February and April 2021, and consequently the remuneration received for the year 2021 was of €151,184 (2020: €141,318). The CFO also receives the following additional benefits: Insurance (Health-Private Hospital Scheme, Accident & Disability Insurance, and Directors & Officers’ Insurance), a Company car and a fully expensed mobile phone service.
Variable Remuneration – Bonus
Both the CEO and the CFO are entitled to a bonus scheme which is linked to the performance of the Company and their individual performance over the course of the financial year. The Chairman sets targets at the beginning of the year to be reached by each executive, and then assesses the performance of each executive against the benchmarks set at the beginning of each year and awards the bonus accordingly. The variable component of the executive directors’ remuneration is based on a balance scoring system which includes both financial and non-financial Key Performance Indicators (KPIs) and targets. The Chairman has full discretion in evaluating the performance and attainment of such KPIs and targets.
In the year 2021, the CEO received a bonus of €50,070 (2020: €98,844), whilst the CFO received a bonus of €23,468 (2020: €46,316), both in respect of the year 2020.
The foregoing Remuneration Report is being put forward to an advisory vote of the 2022 AGM in accordance with the requirements of the MFSA Capital Markets Rule 12.26 L.
This remuneration report has been prepared by the directors and is signed by the Chairman as authorised by the board.
The contents of this remuneration report have been checked by the auditors as required by Capital Markets Rule 12.26N and their report is appended herewith.
Nikolaus Gretzmacher
Chairman
22 February 2022
Malta International Airport p.l.c.
Statements of Comprehensive Income
Year Ended 31 December 2021
31
Income Statements
(in EUR)
Notes
2021
2020
2021
2020
Revenue
6
     47,433,032 
 
     32,189,163 
 
43,510,486
 
29,354,278
Staff costs
11
(6,774,849)
 
(8,648,592)
 
(6,556,906)
 
(8,426,437)
Other operating expenses
9
(16,371,370)
 
(17,694,929)
 
(15,928,350)
 
(17,387,472)
Impairment losses on financial assets
21
(208,132)
 
(237,499)
 
(61,471)
 
(203,388)
Depreciation
15/16
(11,267,027)
 
(9,593,969)
 
       (9,389,448)
 
(8,543,222)
Release of deferred income arising on thesale of terminal buildings and fixtures
23
        283,603 
 
        283,603 
 
283,603 
 
283,603
Investment income
7
          15,431 
 
          25,485 
 
633,059 
 
567,601
Finance cost
8
(2,000,814)
 
(2,096,333)
 
(2,099,272)
 
(2,096,333)
Profit / (Loss) before tax
 
 
 
     11,109,874
(5,773,071)
 
       10,391,701
(6,451,370)
Income tax (expense) / credit
 
13
 
       (4,135,920) 
       1,522,641 
 
(3,897,306) 
1,823,486
Profit / (Loss) for the year attributable to the ordinary equity holders of the Company, net of tax
 
 
 
   6,973,954
(4,250,430)
 
6,494,395
(4,627,884)
 
 
 
 
 
 
 
 
 
Earnings / (Loss) per share attributable to the ordinary equity holders of the Company
 
29
 
          0.052
(0.031)
 
0.048
(0.034)
Statements of Comprehensive Income
The Group
The Company
(in EUR)
Notes
2021
2020
2021
2020
Profit / (Loss) for the year attributable to the ordinary equity holders of the Company, net of tax
 
 
 
   6,973,954
(4,250,430)
 
      6,494,395
      (4,627,884)
Total comprehensive income / (loss) for the year attributable to the ordinary equity holders of the Company, net of tax
 
 
 
   6,973,954
     (4,250,430)
 
6,494,395
(4,627,884)
The Group
The Company
Malta International Airport p.l.c.
Statements of Financial Position
As at 31 December 2021
32
  
 
 
 
The Group
 
The Company
(in EUR)
Notes
 
2021
 
2020
 
2021
2020
Assets
 
 
 
Property, plant and equipment
15
      169,640,302 
 
      171,757,898 
 
     152,558,288 
 
154,638,308
Investment property
16
        15,297,885 
 
        15,279,512 
 
            320,553 
 
327,522
Investment in subsidiaries
17
-
 
-
 
2,004,800
 
2,004,800
Loans receivable
18
-
 
-
 
        27,824,038 
 
25,531,758
Other receivables
21
         1,928,319 
 
         1,341,670 
 
         1,737,155 
 
1,664,340
Deferred tax assets
19
        6,320,729 
 
        7,763,643 
 
         5,594,763
 
6,974,976
Non-current assets
 
      193,187,235 
 
      196,142,723 
 
190,039,597 
 
191,141,704
 
 
 
 
 
 
 
 
 
 
 
Inventories
20
           885,064 
 
           834,888 
 
           885,064 
 
834,888
Loans receivable
18
-
 
-
 
1,290,720
 
1,290,720
Trade and other receivables
21
         15,866,734 
 
         6,973,317 
 
      19,205,573
 
10,265,900
Term deposits
27
      10,500,000 
 
      5,000,000 
 
      10,500,000 
 
5,000,000
Cash and cash equivalents
28
      22,215,002 
 
      26,047,282 
 
        17,506,837 
 
21,927,521
Current assets
 
       49,466,800 
 
       38,855,487 
 
       49,388,194
 
39,319,029
Total Assets
 
     242,654,035 
 
     234,998,210 
 
    239,427,791 
 
230,460,733
Equity and Liabilities
 
 
 
 
 
Equity attributable to ordinary equity holders of the Company
 
 
 
 
 
 
 
Share capital
26
     33,825,000 
 
     33,825,000 
 
33,825,000
33,825,000
Retained earnings
 
      97,941,580 
 
      90,967,626 
 
      96,579,782 
90,085,387
Total Equity
 
     131,766,580 
 
     124,792,626 
 
      130,404,782 
123,910,387
 
 
 
 
 
 
 
 
 
 
Lease liability
33
       53,644,065 
 
       53,168,052 
 
       53,644,065 
53,168,052
Deferred income
23
         5,856,812 
 
         6,127,652 
 
         5,696,794
6,010,671
Other payables
22
       607,538 
 
       2,340,067 
 
           607,538
903,968
Provision for retirement benefit plan
24
        3,954,173 
 
        3,920,722 
 
         3,954,173 
3,920,722
Provision for MIA benefit fund
25
            337,437 
 
            319,851 
 
             337,437 
319,851
Non-current liabilities
 
      64,400,025 
 
      65,876,344 
 
       64,240,007
64,323,264
 
 
 
 
 
 
 
 
 
 
Trade and other payables
22
       43,885,907 
 
       43,992,610 
 
       42,265,903 
42,014,828
Current tax liabilities
 
           2,601,523 
 
           336,630 
 
            2,517,099
212,254
Current liabilities
 
      46,487,430 
 
      44,329,240 
 
       44,783,002
42,227,082
Total Liabilities
 
     110,887,455 
 
     110,205,584 
 
     109,023,009 
106,550,346
Total Equity and Liabilities
 
     242,654,035 
 
     234,998,210 
 
    239,427,791 
230,460,733
Malta International Airport p.l.c.
Statements of Financial Position
As at 31 December 2021
33
These financial statements were approved and authorised for issue by the Board of Directors on 22 February 2022 and signed on its behalf by:
Nikolaus GretzmacherAlan BorgKarl Dandler
ChairmanChief Executive OfficerChief Financial Officer
Malta International Airport p.l.c.
Statements of Changes in Equity
Year Ended 31 December 2021
34
The Group
 
Equity attributable to ordinary equity holders of the Company
 
Share
 
Retained
 
 
(in EUR)
 
capital
 
earnings
 
Total
Balance at 1 January 2020
 
     33,825,000 
 
      95,218,056 
       129,043,056 
Loss for the year
 
                           -   
 
(4,250,430)
(4,250,430)
Total comprehensive expense for the year
 
                           -   
 
            (4,250,430) 
            (4,250,430) 
Balance at 31 December 2020
 
33,825,000
 
90,967,626
124,792,626
Balance at 1 January 2021
 
33,825,000
 
90,967,626
124,792,626
Profit for the year
 
                           -   
 
6,973,954
6,973,954
Total comprehensive income for the year
 
                           -   
 
      6,973,954
          6,973,954
Balance at 31 December 2021
 
33,825,000
 
97,941,580
131,766,580
The Company
 
Equity attributable to ordinary equity holders of the Company
 
Share
 
Retained
 
 
(in EUR)
 
capital
 
earnings
 
Total
Balance at 1 January 2020
 
33,825,000
 
94,713,271
128,538,271
Loss for the year
 
-
 
(4,627,884)
(4,627,884)
Total comprehensive expense for the year
 
-
 
           (4,627,884)
           (4,627,884)
Balance at 31 December 2020
 
33,825,000
 
90,085,387
123,910,387
 
 
 
 
 
 
 
Balance at 1 January 2021
 
33,825,000
 
90,085,387
123,910,387
Profit for the year
 
-
 
6,494,395
6,494,395
Total comprehensive income for the year
 
-
 
       6,494,395
           6,494,395
Balance at 31 December 2021
 
33,825,000
 
96,579,782
130,404,782
Malta International Airport p.l.c.
Statements of Cash Flows
Year Ended 31 December 2021
35
 
 
 
 
The Group
 
The Company
(in EUR)
Notes
 
2021
2020
 
2021
2020
Cash flows from operating activities
 
 
 
 
 
Profit / (Loss) before tax
 
     11,109,874
     (5,773,071)
     10,391,701
     (6,451,370)
Adjustments for:
 
 
 
 
Depreciation
15/16
         11,267,027 
         9,593,969 
         9,389,448 
         8,543,222
Investment income
7
(15,431)
             (25,485)
            (633,059)
            (567,601)
Finance cost
8
         2,114,256 
         2,096,333 
         2,114,256 
         2,096,333
Loss/(gain) on sale of PPE
 
(16,430)
              (17,900)
(16,430)
              (17,900)
Release of deferred income arising on the sale of the terminal building and fixtures
23
(283,603)
           (283,603)
(283,603)
           (283,603)
Amortisation of grants
23
(40,255)
             (50,246)
(40,255)
             (50,246)
Provision for retirement benefit plan
24
              33,451 
              40,645 
              33,451 
              40,645
Provision for MIA benefit plan
25
             25,186 
             44,054 
             25,186 
44,054
Provision for impairment of trade receivables
21
            208,132 
            237,499 
            61,471 
            203,388
 
 
      24,402,207 
      5,862,195 
      21,042,166 
3,556,922
Working capital movements:
 
 
 
 
Movement in inventories
20
               (50,176) 
               37,354 
               (50,176) 
               37,354
Movement in trade and other receivables
21
          (9,698,183) 
          9,018,985 
           (8,802,403) 
           5,855,101
Movement in trade and other payables
22
          (1,672,959) 
          1,566,673 
116,507
            (698,142)
Cash flows from operations
 
    12,980,889 
    16,485,207 
      12,306,094 
8,751,235
 
 
 
 
Lease interest paid
33
(1,794,466)
 
            (536,912)
            (1,794,466)
 
            (536,912)
Income taxes paid
 
(428,181)
 
          (1,825,731)
(212,315)
 
           (1,717,567)
Retirement benefit paid
24
(7,600)
 
              (18,000)
(7,600)
 
              (18,000)
Net cash flows from operating activities
 
    10,750,642 
    14,104,564 
      10,291,714 
6,478,756
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
Receipts of deposit from tenant
23
                 43,037 
                 6,626 
 
-
-
Payments for PPE
15
(8,355,741)
         (16,115,852)
 
(7,326,029)
         (7,250,821)
Payments for investment property
16
(835,634)
             (178,956)
 
-
-
Proceeds from sale of property, plant & equip.
15
               40,000 
               17,900 
 
               40,000 
               17,900
Payments for term deposits
27
                       (5,500,000)   
                       -   
 
                       (5,500,000)   
-
Payments for intracompany loans
18
-
                       -
 
(3,583,000)
       (5,706,000)
Repayments of intracompany loans
18
-
                       -
 
          1,290,720 
          1,290,720
Malta International Airport p.l.c.
Statements of Cash Flows
Year Ended 31 December 2021
36
Interest received
7
              25,416 
              38,020 
 
           365,911 
405,690
Net cash flows used in investing activities
 
(14,582,922)
    (16,232,262)
(14,712,399)
     (11,242,511)
 
 
 
 
 
 
Net movement incash and cash equivalents
 
(3,832,280)
     (2,127,698)
(4,420,684)
     (4,763,755)
 
 
 
 
 
 
Cash and cash equivalentsat the beginning of the year
 
     26,047,282 
     28,174,981 
21,927,521 
26,691,276
 
 
 
 
 
 
Cash and cash equivalentsat the end of the year
28
   22,215,002 
   26,047,282 
     17,506,837 
21,927,521
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
37
1.Reporting entity
The Company is a public limited liability company whose shares are publicly listed and traded on the Malta Stock Exchange. The Company’s registration number is C12663, the country of incorporation is Malta and the Company’s registered office is Malta International Airport, Luqa, Malta.
The principal activities of the Company are the development, operation and management of Malta’s airport. On 11 February 2008, the Company set up a wholly owned subsidiary, Sky Parks Limited, to take over the operations of the car park business. The name of this subsidiary was changed to Airport Parking Limited on 27 October 2009. Another subsidiary, Sky Parks Development Limited, was set up by the Company on 29 October 2009. The main activity of Sky Parks Development Limited is to manage real estate projects within the land which is currently under the management of the Group. Another subsidiary Sky Parks Business Centre Limited was set up by the Company on 26 April 2012. The principal activity of the subsidiary is to operate the Business Centre within the limits of the airport. On 20 June 2013, the Company set up another wholly owned subsidiary, Kirkop PV Farm Limited. The main activity of this company is to explore opportunities in the generation of electricity using photovoltaic technologies.
The Company and the subsidiaries are together referred to as ‘the Group’.
2.Basis of preparation
Under the Companies Act, Cap. 386 of the Laws of Malta, the Company is required to present individual and consolidated financial statements. The financial statements of the Group and the Company have been prepared on a historical cost basis and are in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and comply with the Companies Act, Cap. 386 of the Laws of Malta. The functional currency of the Company is the Euro which is also the presentation currency of the Group.
The consolidated financial statements comprise the financial statements of Malta International Airport p.l.c, and its subsidiaries, as mentioned in Note 1 above. For more details on the scope of consolidation see Note 39.
Covid-19 Impact
In the first months of 2021 the effects of the Covid-19 pandemic continued to take their toll on the travel industry across the globe. In order to mitigate the spread of Covid-19, stringent travel restrictions were still being enforced across the board, hence reluctancy to travel was still strong. The ramp up in vaccination rates and the subsequent relaxation of travel restrictions in May and June 2021 started to increase consumer confidence in travelling again. Nonetheless a drop in passenger movements for the first half of the year was recorded when compared to the comparative period.
Nevertheless, the drop in revenues was not as significant as the drop in passenger movements mainly due to increases in the non-aviation revenues of the Group.
In July passenger movements started to pick up but the number of positive Covid-19 cases also increased. As a result of the increase in positive cases the Health Authorities introduced a new measure whereby non-vaccinated people have to quarantine upon arrival. Although this new restriction might have deterred certain passengers from travelling to Malta the passenger movements in the second half of the year was significantly better when compared to the same period last year.
During the reporting period the Group and the Company registered an increase in revenues over the previous year of 47.3% and 48.0% respectively.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
38
2.Basis of preparation (continued)
Although when comparing with the year 2020 revenue figures increased, when these are compared to 2019 pre-Covid figures, a decrease of 52.7% is recorded.
Thus, keeping in mind that the Group and the Company is still far from reaching 2019 revenue levels, various cost cutting measures were taken and only costs necessary to the smooth operation of the airport were incurred. During the year EUR 16.4 million of operational costs were incurred whereas in the prior year EUR 17.7 million were recorded a decrease of 7.5%. When compared to 2019 operating costs were down by 36.9%.
Between February and April of the current reporting period a further reduction in salaries came into effect. The Board of Directors, the Chief Executive Officer and the Chief Financial Officer took a 15% cut in their remuneration and members of the management team had a 10% reduction in their salaries. The remaining employees worked a four and a half day working week and 5% of their salaries were deducted.
In the comparative period, between April and July 2020, the Board of Directors, the Chief Executive Officer and the Chief Financial Officer agreed to a reduction in their remuneration equivalent to 30%, whereas members of management had 25% of their salary deducted. A four-day working week, corresponding to a 20% salary reduction, was also agreed with the remaining employees.
During the entire reporting period the Company continued to benefit from the Covid Wage Supplement (which was introduced from March of 2020) whereby EUR 800 per each full-time employee were received (see note 12). Similar to the comparative year, the Group, excluding Sky Parks Development Ltd, also benefitted from the Tax Deferral Scheme whereby tax payments were delayed to the following year.
To preserve the cash reserves of the Group, the Company also revised its original capital expenditure programme for 2021 by postponing certain non-essential projects to future years. Nonetheless other major projects like the expansion of the cargo village are still underway while also starting works on new projects like the fuel station relocation and upgrade of the food court area. During the year a new photovoltaic system was installed on the roof of the new multi-storey car park, “Park East”.
Furthermore, the Board of Directors decided that no interim dividend will be paid out for the current reporting period in order to preserve the cash reserves of the Group (see note 14).
All of the afore-mentioned measures ensured that the Group met all its obligations that arose during the year and will be able to meet those arising in the coming year.
As a result, the group managed to maintain a strong cash position at the end of 2021 amounting to EUR 32.7 million (2020 – EUR 31.0 million).
The outbreak of Covid-19 and the consequent reduction to air traffic constituted a triggering event in terms of IAS 36 Impairment of Assets at 31 December 2021 and 31 December 2020 on the group of assets which generates cash inflows attributable to those activities which are usually carried out by an airport or that support the airport operations. Such cash inflows are largely independent of the cash inflows from the Group’s investment property. For the Group, this refers to the assets of the Company and its subsidiary Airport Parking Limited classified as property, plant and equipment and for the Company this refers to the assets classified as property, plant and equipment and the investment in and the receivable from Airport Parking Limited, together with any attributable corporate assets. During 2021 the revenues and earnings before interest tax and depreciation generated by this group of assets amounted to EUR 44.6 million (2020 – EUR 29.7 million) and EUR 22.0 million (2020 – EUR 3.6 million) respectively.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
39
2.Basis of preparation (continued)
An impairment assessment on these assets was carried out as at 31 December 2021 and as at 31 December 2020.
The carrying value of assets tested for impairment at 31 December 2021 amounted to EUR 169.7 million (2020 – EUR 171.8 million) (Group) and EUR 166.7 million (2020 – EUR 167.1 million) (Company).
The year-end impairment assessment considered the Group’s and the Company’s five-year business plan as approved by the Board, together with a discounted cash flow projection up to 2067 which coincides with the concession granted by the Government. The forecasting of future cash flows has been based on various assumptions such as long-term growth rate, discount rate used to discount future cash flows and assumptions around economic recovery of the industry in a post Covid-19 environment. The impairment assessment indicated no need for impairment provisions.
Due to the uncertainties around forecasting, various sensitivity analyses were carried out on the year-end impairment assessment to reflect, amongst others, an increase in the weighted average cost of capital, a reduction in growth rate and a reduction in revenues, with all such scenarios resulting in no need for impairment provisions. The company has concluded that these sources of estimation uncertainty do not have a significant risk of a material adjustment to the carrying amounts of the assets tested for impairment.
Taking into consideration all of the above factors and circumstances the directors are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements.
3.Judgments in applying accounting policies and key sources of estimation uncertainty
Except as discussed below and in the remaining notes to the financial statements, the directors did not make any significant judgments in the process of applying the Company’s and the Group’s accounting policies which can significantly affect the amounts recognised in the consolidated and the individual financial statements and, at the end of the reporting period, apart from the disclosures in connection with impairment testing in note 2, there were no key assumptions concerning the future, or any other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
3.1.Service Concession Arrangements in terms of IFRIC 12
IFRIC 12 Service Concession Arrangements was endorsed by the EU for financial years beginning after 29 March 2009. The Interpretation, which is limited in scope, clarifies the accounting of service concession arrangements by private sector operators which provide public services on behalf of government or other public sector entities.
The Interpretation states that for arrangements falling within its scope, the infrastructure assets are not recognised as property, plant and equipment of the operator. Rather, depending on the terms of the arrangement, the operator will recognise:
(i)a financial asset (where the operator has an unconditional right to receive a specified amount of cash or other financial asset over the life of the arrangement); or
(ii)an intangible asset (where the operator’s future cash flows are not specified, for example, where they will vary according to usage of the infrastructure asset); or
(iii)both a financial asset and an intangible asset where the operator’s return is provided partially by a financial asset and partially by an intangible asset.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
40
3.Judgments in applying accounting policies and key sources of estimation uncertainty (continued)
The Company and the Group’s business activities and operations are governed under a 65-year concession which was granted by the Government in July 2002. The directors have conducted a detailed analysis to determine the applicability of IFRIC 12. Based on the Company’s and the Group’s proportion of regulated and unregulated activities, the directors have determined that the extent of unregulated business activities cannot be deemed as insignificant. Accordingly, the directors have concluded that IFRIC 12 does not apply to the Company and the Group.
3.2.Lessee accounting in terms of IFRS 16
Judgments and estimates with regards to IFRS 16 Leases that warrant additional disclosures in terms of IAS 1 comprise (a) the judgment in connection with the inclusion of the aerodrome licence within the scope of IFRS 16 and (b) the estimate in connection with the determination of the incremental borrowing rate upon the implementation of IFRS 16 at 1 January 2019.
The Group concluded that the licence over the aerodrome which includes the Airfield, falls within the scope of IFRS 16 and the contractual payments in this respect have therefore been included within right-of-use assets and lease liabilities, amounting to EUR 10.7 million upon the adoption of IFRS 16 at 1 January 2019. The Group arrived at this conclusion by taking into consideration the following factors - (a) the management of the Airfield is considered to be integral to the use of the land and buildings held as temporary emphyteusis, with the Group having an obligation to manage the Airfield for the same duration of the emphyteusis, (b) the Group considers the licence as being inseparable from the right to use the Airfield (being the tangible component), (c) it is not possible to split the right to operate the Airfield from the right to use the Airfield and (d) the Group considers the use of the Airfield to be the most significant element of the transaction.
Upon the implementation of IFRS 16, lease liabilities at 1 January 2019 were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate as of that date. The incremental borrowing rate reflects the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. To determine this rate, the Group obtained information from its bank for the particular purpose and extrapolated it to reflect the specific characteristics of the lease, in particular the long remaining lease term of the temporary emphyteuses and the related aerodrome licence until 2067. The weighted average incremental borrowing rate that the Group applied to its lease liabilities as at 1 January 2019 was 4.07% per annum. The selection of the applicable incremental borrowing rate has a significant effect on these financial statements. An decrease/(increase) of 50 basis points would have resulted in a increase/(decrease) in lease liabilities and right-of-use assets of EUR 5.6 million/(EUR 4.8 million) as at 1 January 2019.
4.Application of new and revised IFRS
4.1.New IFRS applicable in the current year
IFRS 16 Leases Amendment – Covid-19 – Related Rent Concessions beyond 30 June 2021
As at 31 December 2021, the Group and the Company did not receive any Covid-19 related rent concessions and therefore the amendment did not impact the Group’s or the Company’s Financial Statements.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
41
4.Application of new and revised IFRS (continued)
4.1 New IFRS applicable in the current year (continued)
This amendment to IFRS 16 Leases is the same as the one issued on 28 May 2020 Covid-19 – Related Rent Concessions with changes including the fact that:
•The lessee can apply the Covid-19 related rent concessions amendment to rent concessions for payments due on or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021)
Interest Rate Benchmark Reform – Phase 2
The Interest Rate Benchmark Reform – Phase 2 issued in August 2020 is effective for annual periods beginning on or after 1 January 2021. Interest rate benchmark reform refers to the market-wide reform of interest rate benchmarks, which includes the replacement of an interest rate benchmark with alternative benchmark rates. Under IFRS 9 – Financial Instruments, modifying a financial contract can require recognition of a gain or loss in the income statement. However, the amendment introduces a practical expedient whereby if a change is a direct consequence of the IBOR reform and the new basis for determining the contractual cash flows is ‘economically equivalent’ to the basis immediately preceding the change, changes will be accounted for by revising the effective interest rate.  If additional changes are made, which are not directly related to the reform, the applicable requirements of IFRS 9 are applied to the other changes.
As disclosed in Note 18, the interest rate on the Company’s loans receivables comprises a margin which is over and above the EURIBOR. The calculation methodology of Euribor changed during 2019. In July 2019, the Belgian Financial Services and Markets Authority granted authorisation with respect to Euribor under the European Union Benchmarks Regulation. This allows market participants to continue to use Euribor for both existing and new contracts and the Company expects that Euribor will continue to exist as a benchmark rate for the foreseeable future. Accordingly, the IBOR reform did not give rise to any accounting impacts in the Company‘s financial statements.
This reform did not have an effect on the consolidated financial statements as none of the Group’s financial instruments or leases are linked to an IBOR rate.
4.2.New and revised IFRS in issue but not yet effective
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 end of 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.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
42
4.Application of new and revised IFRS (continued)
4.2. New and revised IFRS in issue but not yet effective (continued)
The changes in ‘Classification of Liabilities as Current or Non-current — Deferral of Effective Date’ issued on 15 July 2020 defer the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023.
IAS 8 Amendments – Definition of Accounting Estimates
This amendment was issued to distinguish between changes in accounting policies from changes in accounting estimates. The amendment shall be effective for periods beginning on or after 1 January 2023.
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. The amendment shall be effective for periods beginning on or after 1 January 2023.
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.
The Group is in the process of assessing whether these changes to IAS 12 will have an impact on its financial statements.
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.Operating Segments
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.
For management purposes the Group is organised into operating segments based on the nature of its operations and has the reportable segments as shown below.
Management monitors the operating results of its segments separately for the purposes of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on earnings before interest, tax and deferred income arising from the sale of terminal buildings and fixtures (EBIT). Revenues and certain costs are allocated in full to particular segments. The remaining costs are allocated across the different segments on the basis of square meters or revenues, as applicable. The Group and the Company financing (including finance income and finance costs), deferred income arising from the sale of terminal buildings and fixtures and income tax are managed on a Group and Company basis and are not allocated to operating segments.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
43
5.Operating Segments (continued)
Airport Segment
The Airport Segment comprises of 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 aircraft parks.
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, Sky Parks Business Centre Limited and Sky Parks Development Limited are also allocated within the Retail and Property Segment.
Other Segment
This comprises services that do not fall under the Airport and the Retail and Property Segments, which include miscellaneous income and disbursement fees from third parties as well as any costs associated with this income.
The results of the operating segments are reported below:
2021
 
 
 
Retail &
 
 
 
 
(in EUR)
 
Airport
 
Property
 
Other
 
The Group
Revenue (external)
 
27,804,885
 
19,494,291
 
133,856
 
47,433,032
Staff costs
 
(5,539,758)
 
(1,035,091)
 
-
 
(6,574,849)
Other operating costs
 
(13,225,878)
 
(3,345,492)
 
-
 
(16,571,370)
Impairment losses on financial assets
 
(44,874)
 
(163,258)
 
-
 
(208,132)
EBITDA
 
8,994,375
 
14,950,450
 
133,856
 
24,078,681
Depreciation
 
(6,740,411)
 
(4,526,616)
 
-
 
(11,267,027)
EBIT
 
2,253,964
 
10,423,834
 
133,856
 
12,811,654
Investment income
 
 
 
 
 
 
 
15,431
Finance cost
 
 
 
 
 
 
 
(2,000,814)
Release of deferred income arising on the sale of terminal buildings and fixtures
 
 
 
 
 
 
 
283,603
Profit before tax
 
 
 
 
 
 
 
11,109,874
2020
 
 
 
Retail &
 
 
 
 
(in EUR)
 
Airport
 
Property
 
Other
 
The Group
Revenue (external)
 
17,855,481
 
14,008,815
 
324,867
 
32,189,163
Staff costs
 
(7,253,719)
 
(1,394,874)
 
-
 
(8,648,593)
Other operating costs
 
(14,879,893)
 
(2,815,036)
 
-
 
(17,694,929)
Impairment losses on financial assets
 
(148,475)
 
(89,025)
 
-
 
(237,500)
EBITDA
 
(4,426,606)
 
9,709,880
 
324,867
 
5,608,141
Depreciation
 
(6,190,023)
 
(3,403,946)
 
-
 
(9,593,969)
EBIT
 
(10,616,629)
 
6,305,934
 
324,867
 
(3,985,828)
Investment income
 
 
 
 
 
 
 
25,485
Finance cost
 
 
 
 
 
 
 
(2,096,333)
Release of deferred income arising on the sale of terminal buildings and fixtures
 
 
 
 
 
 
 
283,603
Loss before tax
 
 
 
 
 
 
 
(5,773,073)
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
44
5.Operating Segments (continued)
Airport segment revenues generated from two clients with each generating 10% or more of revenues amounted to EUR 10,094,407 and EUR 6,380,431 (2020: EUR 6,826,951 and EUR 3,572,619).
The impact of Covid-19 on the financial performance of the Group and the Company is disclosed in more detail in Note 2.
6.Revenue
In the following table, revenue of the Group is disaggregated by revenue category. The table also includes a reconciliation of the disaggregated revenue with the Group’s operating segments (see Note 5).
The Group
 
 
 
 
 
 
 
 
2021
 
 
 
Retail and
 
 
 
 
(in EUR)
 
Airport
 
Property
 
Other
 
Total
Revenue from Servicesprovided Over Time
 
 
 
 
 
 
 
 
Regulated revenue
 
25,358,535
 
-
 
-
 
25,358,535
Unregulated revenue
 
2,446,350
 
5,195,230
 
133,856
 
7,775,436
Revenue from Contracts with Customers
 
27,804,885
 
5,195,230
 
133,856
 
33,133,971
Revenue from Leases
 
-
 
14,299,061
 
-
 
14,299,061
Total Revenue
 
27,804,885
 
19,494,291
 
133,856
 
47,433,032
The Group
 
 
 
 
 
 
 
 
2020
 
 
 
Retail and
 
 
 
 
(in EUR)
 
Airport
 
Property
 
Other
 
Total
Revenue from Servicesprovided Over Time
 
 
 
 
 
 
 
 
Regulated revenue
 
15,660,467
 
-
 
-
 
15,660,467
Unregulated revenue
 
2,195,014
 
4,198,308
 
324,867
 
6,718,189
Revenue from Contracts with Customers
 
17,855,481
 
4,198,308
 
324,867
 
22,378,656
Revenue from Leases
 
-
 
9,810,507
 
-
 
9,810,507
Total Revenue
 
17,855,481
 
14,008,815
 
324,867
 
32,189,163
In the following table, revenue of the Company is disaggregated by revenue category:
The Company
 
 
 
 
(in EUR)
 
2021
 
2020
Revenue from Servicesprovided Over Time
 
 
 
 
Regulated revenue
 
25,358,535
 
          15,660,467
Unregulated revenue
 
7,131,904
 
6,664,407
Revenue from Contracts with Customers
 
32,490,439
 
22,324,874
Revenue from Leases
 
11,020,047
 
7,029,404
Total Revenue
 
43,510,486
 
29,354,278
All the Group’s revenues and its non-current assets other than financial assets are attributable to the Company’s country of domicile.
Revenue generated with entities under government control is disclosed in note 32 and 34.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
45
6.Revenue (continued)
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period either relates to contracts that have an original expected duration of one year or less or is in relation to contracts for which the Company and the Group provide a daily service of access that is distinct, with the uncertainty related to the consideration receivable being also resolved on that basis.
The impact of Covid-19 on the revenue of the Group and the Company is disclosed in more detail in Note 2.
7.Investment Income
 
The Group
 
The Company
(in EUR)
 
2021
 
2020
 
2021
 
2020
Interest income on loans receivable
 
-
 
-
 
617,628
 
             542,116
Interest income on term deposits
 
                15,431
 
              25,485
 
                15,431
 
25,485
Investment income
 
15,431
 
25,485
 
633,059
 
567,601
8.Finance Cost
 
The Group
 
The Company
(in EUR)
 
2021
2020
 
2021
2020
Lease interest
 
2,000,814
2,096,333
 
2,099,272
2,096,333
Finance cost
 
2,000,814
2,096,333
 
2,099,272
2,096,333
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
46
9.Other Operating Expenses
 
 
 
The Group
 
The Company
(in EUR)
 
Notes
 
2021
 
2020
 
2021
 
2020
Air traffic services
 
34
 
         929,611
 
              929,611
 
         929,611
 
              929,611
Cleaning
 
 
 
        856,127
 
            900,213
 
        798,361
 
            832,685
Ground handling services
 
34
 
        506,431
 
            608,728
 
        506,431
 
            608,728
Insurance
 
 
 
        364,888
 
            388,593
 
348,605
 
            372,682
IT Expenses
 
 
 
     2,340,687
 
        2,426,086
 
     2,340,687
 
        2,426,086
Legal and professional fees
 
 
 
        941,181
 
664,228
 
        911,661
 
644,328
Lease payments on low-value items
 
33
 
7,492
 
              20,210
 
7,492
 
              20,210
Marketing and communication costs
 
 
 
      2,766,183
 
         4,145,975
 
      2,977,514
 
         4,349,618
Miscellaneous operating expenses
 
 
 
      1,175,207
 
           1,142,417 
 
     1,038,494
 
         1,054,557
Other security services
 
 
 
98,505
 
            193,950
 
54,650
 
             159,293
Passenger security service
 
 
 
      1,138,978
 
             826,781
 
      1,138,978
 
             826,781
Repairs and maintenance
 
 
 
      1,505,123
 
         1,663,522
 
      1,142,710
 
         1,388,892
Net exchange differences
 
 
 
          14,926
 
              10,007
 
          14,747
 
                9,343
Restricted areas security service
 
34
 
      1,549,998
 
           1,778,125
 
      1,549,998
 
           1,778,125
Telecommunications
 
 
 
102,590
 
            124,954
 
100,599
 
             122,939
Utilities
 
 
 
    2,073,443
 
           1,871,529
 
     2,067,812
 
         1,863,594
Other operating expenses
 
 
 
    16,371,370
 
17,694,929
 
    15,928,350
 
17,387,472
The impact of Covid-19 on the operating expenses of the Group and the Company is disclosed in more detail in Note 2.
Expenses incurred with entities under government control are disclosed in note 32 and 34.
Included in the legal and professional fees are amounts that are payable to the parent Company’s auditor:
 
 
The Group
 
The Company
(in EUR)
 
2021
 
2020
 
2021
 
2020
Audit of the financial statements
 
119,500
 
64,700
 
100,000
 
51,200
Other assurance
 
15,500
 
13,000
 
15,500
 
13,000
Tax services
 
31,300
 
27,350
 
24,000
 
19,500
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
47
10.Key Management Personnel Compensation
Directors' compensation
 
The Group
 
The Company
(in EUR)
 
2021
 
2020
 
2021
 
2020
Short-term benefits:
 
 
 
 
 
 
 
 
Fees
 
65,019
 
60,797
 
65,019
 
60,797
Management remuneration
 
398,578
 
477,084
 
398,578
 
477,084
Social security costs
 
2,526
 
2,499
 
2,526
 
2,499
 
 
466,123
 
540,380
 
466,123
 
540,380
In addition, during the year under review, the Company granted other benefits to its directors. The aggregate amount of benefits, which includes monetary and non-monetary benefits, amounted to EUR 24,391 (2020: EUR 23,702). These amounts are included with other operating expenses.
Also, during the year under review, the Company maintained professional indemnity insurance for its directors. The aggregate amount of premiums paid in respect thereof amounted to EUR 13,125 (2020: EUR 15,060). These amounts are included with other operating expenses.
11.Staff Costs and Employee Information
Staff Costs
 
The Group
 
The Company
(in EUR)
 
2021
2020
 
2021
2020
Wages and salaries
 
6,146,183
7,431,657
 
5,944,098
7,226,229
Recharge from parent
 
200,000
-
 
200,000
-
Social security costs
 
370,029
485,787
 
354,171
469,060
Retirement benefit costs
 
58,637
84,699
 
58,637
84,699
Other retirement benefit costs
 
-
646,449
 
-
646,449
 
 
6,774,849
8,648,592
 
6,556,906
8,426,437
The above amounts include the directors’ compensation disclosed in Note 10.
The average number of persons employed during the year, including Executive Directors, was made up as follows:
Average No. of Employees
 
The Group
 
The Company
(Number)
 
2021
2020
 
2021
2020
Business development, operations and marketing
 
192
221
 
183
212
Finance, IT and IM
 
24
25
 
24
25
Firemen
 
46
48
 
46
48
Met office
 
13
15
 
13
15
Technical and engineering
 
54
68
 
54
68
 
 
329
377
 
320
368
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
48
12.Government Assistance
In the previous year the Maltese Government announced the Covid Wage Supplement Scheme which was still in effect in the current year. 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 December 2021.
During the reporting period, the Company received EUR 2,851,899 (2020: EUR 2,552,277) in government grants under the Covid Wage Supplement. These amounts were deducted from the line item ‘Staff Costs’ in the Consolidated Statement of Comprehensive Income.
The Group excluding Sky Parks Development Ltd also benefitted from the Tax Deferral Scheme whereby payments owed to the Government of Malta for the period February to October amounting to EUR 414,582 (2020: EUR 471,083) were deferred for payment until 2022.
13.Income Tax Expense
Income tax recognised in profit or loss is as follows:
 
 
The Group
 
The Company
(in EUR)
 
2021
2020
 
2021
2020
Current tax expense
 
         2,693,006 
336,628
 
2,517,093 
             212,253
Deferred tax
 
         1,442,914
        (1,859,269)
 
          1,380,213
       (2,035,739)
Income tax expense/(credit) for the year
 
4,135,920 
(1,522,641)
 
3,897,306 
(1,823,486)
Tax applying the statutory domestic income tax rate and the income tax expense for the year is reconciled as follows:
 
 
The Group
 
The Company
(in EUR)
 
2021
2020
 
2021
2020
Profit/(Loss) before Tax
 
11,109,874
(5,773,073)
 
10,391,701
(6,451,370)
Tax at applicable rate of 35 %
 
3,888,456
(2,020,575)
 
3,637,095
(2,257,980)
Tax effect of:
 
 
 
 
 
 
 
 
Depreciation charges not deductible by way of capital allowances in determining taxable income
 
352,519
329,066
 
293,777
270,324
Other net difference between accounting and tax deductible items of expenditure
 
(53,232)
(4,690)
 
(4,925)
(4,690)
Other differences
 
(51,823)
173,558
 
(28,641)
168,860
Income tax expense/(credit) for the year
 
4,135,920 
(1,522,641)
 
3,897,306 
(1,823,486)
14.Dividends
In the current reporting year and previous year no net final dividend and interim dividend payments were made to the ordinary shareholders of the Company.
Taking into consideration the fluidity of the current situation and the limited visibility of the way ahead, the Board of Directors believes that, with a view to manage the Company’s cash reserves, it is prudent not to recommend a dividend payment for the year 2021.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
49
15.Property, Plant and Equipment
 
 
 
Total
 
 
243,868,545
16,115,852
(71,580)
259,912,816
8,355,741
(150,510)
268,118,047
79,437,659
8,788,839
(71,580)
88,154,918
10,449,767
(126,940)
98,477,745
171,757,898
169,640,302
 
 
 
 
 
 
Motor
vehicles
 
 
1,599,993
524,498
(71,580)
2,052,911
45,703
(150,510)
1,948,104
1,272,907
146,839
(71,580)
1,348,166
193,347
(126,940)
1,414,573
704,745
533,531
Furniture,
fixtures,
plant and
equipment
 
 
78,063,873
13,945,717
-
92,009,590
6,284,224
-
98,293,814
36,015,047
5,677,451
-
41,692,498
7,081,357
-
48,773,855
50,317,092
49,519,959
 
 
 
 
 
 
 
Not subjectto operatingleases
 
61,266,075
1,216,125
-
62,482,200
1,424,316
-
63,906,516
23,423,615
1,018,869
-
24,442,484
1,178,690
-
25,621,174
38,039,716
38,285,342
 
 
Buildings
Subject to operating leases - The Group as lessor
15,638,014
429,511
-
16,067,525
601,498
-
16,669,023
6,529,857
359,844
-
6,889,701
416,290
-
7,305,991
9,177,824
9,363,032
 
 
 
 
 
 
 
Related
Aerodrome
Licence
 
 
10,746,985
-
-
10,746,985
-
-
10,746,985
221,587
221,587
-
443,174
221,587
-
664,761
10,303,811
10,082,224
 
 
 
 
 
 
 
 
Not subjectto operatingleases
58,567,090
-
-
58,567,090
-
-
58,567,090
9,491,105
1,095,492
-
10,586,597
1,084,080
-
11,670,677
47,980,493
46,896,413
 
 
Land held ontemporary emphyteusis
Subject to operating leases - The Group as lessor
 
17,986,515
-
-
17,986,515
-
-
17,986,515
2,483,541
268,757
-
2,752,298
274,416
-
3,026,714
15,234,217
14,959,801
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Group
(in EUR)
Cost
 
At 1 January 2020
Additions
Disposals
At 1 January 2021
Additions
Disposals
At 31 December 2021
Accumulated depreciation
At 1 January 2020
Provision for the year
Eliminated on disposal
At 1 January 2021
Provision for the year
Eliminated on disposal
At 31 December 2021
Carrying amount
At 31 December 2020
At 31 December 2021
No depreciation is being charged on assets not yet available for use amounting to EUR 5,572,173 (2020: EUR 10,280,992).  
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
50
15.Property, Plant and Equipment (continued)
 
 
 
Total
234,559,215
7,250,821
(71,580)
241,738,456
7,326,029
(150,510)
248,913,975
78,635,475
8,536,253
(71,580)
87,100,148
9,382,479
(126,940)
96,355,687
154,638,308
152,558,288
 
 
 
 
 
Motorvehicles
1,577,638
524,498
(71,580)
2,030,556
45,703
(150,510)
1,925,749
1,250,553
146,839
(71,580)
1,325,812
193,348
(126,940)
1,392,220
704,744
533,529
 
 
 
Furniture,fixtures,plant andequipment
75,271,136
6,606,322
-
81,877,458
7,139,113
-
89,016,571
35,235,596
5,459,833
-
40,695,429
6,226,414
-
46,921,843
41,182,029
42,094,728
 
 
 
 
 
Not subjectto operatingleases
55,060,503
94,081
-
55,154,584
110,711
-
55,265,295
23,423,318
1,053,496
-
24,476,814
1,083,985
-
25,560,799
30,677,770
29,704,496
 
 
Buildings
Subject to operating leases - The Group as lessor
15,349,348
25,920
-
15,375,268
30,502
-
15,405,770
6,529,774
290,249
-
6,820,023
298,649
-
7,118,672
8,555,245
8,287,098
 
 
 
 
RelatedAerodromeLicence
10,746,985
-
-
10,746,985
-
-
10,746,985
221,587
221,587
-
443,174
221,587
-
664,761
10,303,811
10,082,224
 
 
 
 
 
Not subjectto operatingleases
50,239,420
-
-
50,239,420
-
-
50,239,420
8,141,562
927,553
-
9,069,115
892,532
-
9,961,647
41,170,305
40,277,773
 
 
Land held ontemporary emphyteusis
Subject to operating leases - The Group as lessor
26,314,185
-
-
26,314,185
-
-
26,314,185
3,833,085
436,696
-
4,269,781
465,964
-
4,735,745
22,044,404
21,578,440
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company
(in EUR)
Cost
 
At 1 January 2020
Additions
Disposals
At 1 January 2020
Additions
Disposals
At 31 December 2021
Accumulated depreciation
At 1 January 2020
Provision for the year
Eliminated on disposals
At 1 January 2021
Provision for the year
Eliminated on disposal
At 31 December 2021
Carrying amount
At 31 December 2020
At 31 December 2021
No depreciation is being charged on assets not yet available for use amounting to EUR 4,366,208 (2020: EUR 6,057,346).
In addition, the cost of fully depreciated plant and equipment amounts to EUR 19,469,702 (2020: EUR 18,314,731) for both the Group and the Company.
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
51
15.Property, Plant and Equipment (continued)
Included in the additions for the reporting period is an amount of capitalised lease interest of EUR 113,442 and EUR 14,984 for the Group and the Company respectively.
16.Investment Property
The investment property relates to the business centre which is located on a portion of the land held on temporary emphyteusis. The carrying amount of the Group includes the cost of construction and the cost of items that are an integral part of the building. With effect from 1 January 2019, the carrying amount of the Group and the Company includes the portion of the right-of-use asset in relation to the temporary emphyteusis of the leasehold land classified as investment property, as further disclosed in note 33.
(in EUR)
 
The Group
 
The Company
Cost
 
 
 
 
At 1 January 2020
 
21,701,590
 
341,460
Additions from subsequent expenditure
 
                  178,956
 
-
At 1 January 2021
 
21,880,546
 
341,460
Additions from subsequent expenditure
 
835,634
 
-
At 31 December 2021
 
22,716,180
 
341,460
Accumulated depreciation
 
 
 
 
At 1 January 2020
 
5,795,904
 
6,969
Provision for the year
 
                 805,130
 
                     6,969
At 1 January 2021
 
6,601,034
 
13,938
Provision for the year
 
                   817,261
 
                     6,969
At 31 December 2021
 
7,418,295
 
20,907
Carrying amount
 
 
 
 
At 31 December 2020
 
15,279,512
 
327,522
At 31 December 2021
 
15,297,885
 
320,553
The Company’s investment property comprises the portion of the right-of-use asset in relation to the temporary emphyteusis of the leasehold land classified as investment property with a carrying amount of EUR 327,522 at 1 January 2021 (2020: EUR 334,491) less depreciation charge for the year of EUR 6,969 (2020: EUR 6,969) resulting in the carrying amount of EUR 320,553 at 31 December 2021 (2020: EUR 327,522).
During the year, direct operating expenses of EUR 968,088 (2020: EUR 801,732), which arose from the investment property, were incurred. Such expenses were incurred in generating rental income during the year.
The operating lease income generated from the investment property is disclosed under note 33.
Fair Value
Based on an internal valuation carried out by the directors of the Company, the fair value of the investment property was in the region of EUR 37 million at the balance sheet date (2020: EUR 36 million).
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
52
16.Investment Property (continued)
The fair value measurement is categorised within Level 3 of the fair value hierarchy. The model is based on the present value of the net cash flows expected to be generated by the property on the basis of market expectations and includes the rates stipulated in the existing contracts with tenants, expected increase in rents after the non-cancellable period, occupancy rates and all other costs attributable to these assets. The expected net cash flows are discounted using a discount factor representing a weighted average cost of capital that is considered appropriate in the circumstances. The net cash flows reflect the amounts in the 2022 budget and long-term corporate planning.
In estimating fair value, the highest and best use of the property is its current use.
17.Investment in Subsidiaries
The Company’s investment in subsidiaries is stated at cost and comprises:
Share Capital
 
The Company
(in EUR)
 
2021
 
2020
Airport Parking Limited
 
                 1,200
 
                 1,200
Sky Parks Development Limited
 
        2,001,200
 
        2,001,200
Sky Parks Business Centre Limited
 
                 1,200
 
                 1,200
Kirkop PV Farm Limited
 
                 1,200
 
                 1,200
Investment in subsidiaries
 
2,004,800
 
2,004,800
The Company holds a 100% (2020: 100%) ownership in the ordinary share capital of Airport Parking Limited, a limited liability company incorporated in Malta, whose principal activity is the operation of car parks within the limits of the airport.
The Company holds a 100% (2020: 100%) ownership in the ordinary share capital of Sky Parks Development Limited, a limited company incorporated in Malta, whose principal activity is to manage real estate projects within the land which is currently under the management of the Group.
The Company holds a 100% (2020: 100%) ownership in the ordinary share capital of Sky Parks Business Centre Limited, a limited liability company incorporated in Malta, whose principal activity is to operate the Business Centre within the limits of the airport.
The Company holds a 100% (2020: 100%) ownership in the ordinary share capital of Kirkop PV Farm Limited, a limited liability company incorporated in Malta. The principal activity of this company is to explore opportunities in the generation of electricity using photovoltaic technologies.
The principal place of business of the company’s subsidiaries is Malta. The registered offices for these subsidiaries are as follows:
Airport Parking Ltd
Level 2
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
53
17.Investment in Subsidiaries (continued)
Sky Parks Development Ltd
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
Sky Parks Business Centre Ltd
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
Kirkop PV Farm Limited
Malta International Airport Head Office
Malta International Airport
Luqa LQA 4000
The following table shows financial information for the consolidated subsidiaries:
Airport Parking Ltd
 
 
 
 
(in EUR)
 
2021
2020
(Loss)/Profit for the year
 
(186,405)
15,120
Share Capital
 
1,200
1,200
Retained earnings
 
1,587,525
1,773,930
Total Equity
 
1,588,725
1,775,130
 
 
 
 
 
Sky Parks Development Ltd
 
 
 
 
(in EUR)
 
2021
2020
Profit for the year
 
491,536
469,567
Share Capital
 
2,001,200
2,001,200
Accumulated Losses
 
(1,711,097)
(2,202,633)
Total Equity
 
290,103
(201,433)
 
 
 
 
 
Sky Parks Business Centre Ltd.
 
 
 
 
(in EUR)
 
2021
2020
Profit for the year
 
75,966
40,956
Share Capital
 
1,200
1,200
Retained earnings
 
1,529,074
1,453,108
Total Equity
 
1,530,274
1,454,308
Malta International Airport p.l.c.
Notes to the Financial Statements
Year Ended 31 December 2021
54
18.Loans Receivable
The Company
 
Loans to
(in EUR)
 
subsidiary
Amortised cost
 
 
At 31 December 2021
 
29,114,758
Less: Amount expected to be settled within12 months (shown under current assets)
 
              (1,290,720)
Amount expected to be settled after 12 months
 
27,824,038
 
 
 
The Company
 
Loans to
(in EUR)
 
subsidiary
Amortised cost
 
 
At 31 December 2020
 
26,822,478
Less: Amount expected to be settled within12 months (shown under current assets)
 
              (1,290,720)
Amount expected to be settled after 12 months
 
25,531,758
The Company has granted four unsecured loans to subsidiaries. One of these loans was granted in 2019 and represents a loan commitment of EUR 20 million which was partly drawn down during the current reporting period (EUR 3.6 million) and previous years (EUR 10.6 million). The interest rates of all loans are at arm’s length and comprise a margin which is over and above the EURIBOR.
Two loans with a total amount outstanding as at the end of the reporting period of EUR 10.3 million (2020: EUR 11.6 million) are being repaid on equal annual instalments until 2029. The loan amounting to EUR 14.2 million is repayable from 2025 and shall be repaid in full by the year 2044. Repayments of the fourth loan with an amount outstanding of EUR 4.6 million (2020: EUR 4.6 million) will commence in 2030.
The following table shows a reconciliation from the opening to the