The Shannon Airport Group Annual Report and Accounts 2024

Annual Report and Accounts | 2024

DIRECTORS’ REPORT (CONTINUED)

RISK AND GOVERNANCE REPORT

SAFETY, SECURITY AND SUSTAINABILITY The well-being of the Group’s employees is safeguarded through the strict adherence to health and safety standards. The Safety, Health and Welfare at Work Act 2005 imposes certain requirements on employers and all relevant companies within the Group to take the necessary action to ensure compliance with this act. Safety, security and sustainability issues are of paramount importance within the Group. The Group’s operations are subject to an increasingly stringent range of environmental and health and safety laws, regulations and standards. A breach of any such law or regulation could result in the imposition of material sanctions on the Group and could have a material adverse effect on the Group’s business. PROMPT PAYMENTS ACT The Group’s policy is to comply with the provisions of the Prompt Payment of Accounts Act 1997 as amended by the European Communities (Late Payments in Commercial Transactions) Regulations 2012. Standard terms of credit taken, unless otherwise specified in specific contractual arrangements, are 30 days. Appropriate internal financial controls are in place, including clearly defined roles and responsibilities and the regular review of payment practices. These procedures provide reasonable, but not absolute, assurance against material non-compliance with the regulations POLITICAL CONTRIBUTIONS The Group and Company did not make any political donations or incur any political expenditure during the year. RELEVANT AUDIT INFORMATION The directors in office at the date of this report have each confirmed that: • As far as each director is aware, there is no relevant audit information of which the Group’s statutory auditor is unaware, and • Each director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Group’s statutory auditor is aware of that information.

DIRECTORS’ COMPLIANCE STATEMENT The directors, in accordance with Section 225(2) of the Companies Act 2014, acknowledge that they are responsible for securing the Company’s compliance with certain obligations specified in that section arising from the Companies Act 2014, and Tax laws (‘relevant obligations’). The directors confirm that: • the Group compliance policy statement has been drawn up setting out the policies with regard to such compliance; • appropriate arrangements and structures that, in their opinion, are designed to secure material compliance with the Company’s relevant obligations, have been put in place; and • a review has been conducted of the arrangements and structures that have been put in place to secure the Company’s compliance with its relevant obligations. SUBSEQUENT EVENTS There have been no significant events subsequent to the year-end affecting the Group. AUDITOR Pursuant to Section 383(2) of the Companies Act 2014, the auditor, Ernst & Young, Chartered Accountants, will continue in office.

RISK MANAGEMENT The Board acknowledges its responsibility for risk management, including determining the nature and extent of the significant risks the Group is willing to accept in pursuit of achieving its strategic and operational objectives, and ensuring reporting is reliable and applicable laws and regulations are being complied with. To address this, the Board has established a risk management system that provides for ongoing identification, assessment, implementation of mitigating actions and controls, and the monitoring and reporting of significant risks within the Group. The Board is committed to proactive management of risk and has processes in place designed to anticipate and address, to the extent possible, changes to the Group’s business and risk environment. The risk management process ensures that the Group identifies critical or significant risks to which it is exposed and ensures that appropriate risk detection and mitigation measures are taken. The effectiveness of risk management is subject to review by the Audit and Risk Committee. Management are responsible for the identification and evaluation of significant risks applicable to their areas of business together with the design and operation of suitable internal controls. Risk registers are utilised to ensure that risks are consistently identified, assessed, recorded and reported across all business functions. The process is overseen by the Audit and Risk Committee with regards to strategic, financial and compliance risks and overseen by the Safety, Security and Sustainability Committee with regards to operational and compliance risks in the areas of safety, security and sustainability. The Group’s risk management system is subject to ongoing review and improvement in order to remain effective in changing business environments. PRINCIPAL RISKS AND UNCERTAINTIES As part of the risk identification process, the principal areas of risk and uncertainty which could materially and adversely affect the Group’s operations or financial position have been identified. A summary of the principal risks and uncertainties along with the strategies being adopted to mitigate the risks are set out below. The risks and uncertainties are not listed in a particular order and

the list is not intended to be an exhaustive analysis of all the risks and uncertainties that may arise in the ordinary course of business. These risks and uncertainties are assessed on an ongoing basis and management report any significant changes in the business and external environment, which affect the significant risks and uncertainties identified, to the Audit and Risk Committee, the Safety, Security and Sustainability Committee and the Board. Competition The Group operates in a very competitive environment, particularly in the operation of an airport. Strategic Priority Driving Commercial Performance Impact Investment in additional infrastructural capacity, innovation and pricing policy on the part of our competitors could have an adverse effect on the Group’s ability to grow passenger numbers and market share. Mitigation ͳ Group management are cognisant of the competition posed by other airports, regions and countries on the performance of Shannon Airport. ͳ Management keep the value proposition offered by the Group under review and offer attractive incentive schemes to airlines to grow connectivity. ͳ Focus remains on the Airport’s cost base, to ensure that it is efficient, effective and adaptable to the demands of the business. ͳ Government’s commitment to balanced regional development as set out in the National Planning Framework, the Group is working with its shareholder and various stakeholders to ensure the National Aviation Policy is aligned in this regard. ͳ Ongoing engagement with the Group’s shareholder to ensure a permanent change in the eligibility criteria for the Regional Airport’s Programme. ͳ Ongoing engagement with relevant stakeholders for improved public transport access to Shannon Airport.

On behalf of the Board

Conal Henry

Mary Considine

Director

20 March 2025