The Shannon Airport Group Annual Report and Accounts 2024

Annual Report and Accounts | 2024

NOTES TO THE FINANCIAL STATEMENTS forming part of the financial statements

Retail revenue • Retail revenue from the Group’s Airport business is recognised, when control of goods transfers to the customer. Commercial property revenue • Rental income from investment properties is recognised on a straight-line basis over the lease term. The contracts entered into are long-term lease arrangements. Airport concession fee and rental revenue. • Concession fee income from commercial concessionaires is recognised based on the transaction price which the entity expects to be entitled to based on the transfer of services to the customer and related revenue and is recognised over the period that these services are provided. • Rental income from property on the Airport campus is accounted for on a straight-line basis over the lease term. Other commercial activities revenue Revenue from other commercial activities includes: • Throughput fee for fuel delivery, recognised on delivery of fuel to the aircraft; and • Car park income, which is recognised as the service is deemed to be provided to the customer. Other income Other income is recognised in accordance with the general provisions above, that is when the service is delivered to the customer (i.e. performance obligation satisfied). Revenue is disaggregated at the income stream level. All revenue from the Group’s income streams is generated in Ireland. At contract inception the total transaction price is estimated, being the amount to which the Group expects to be entitled and has rights to under the present contract. This includes an assessment of any variable consideration where the Group’s performance may result in additional revenues based on the achievement of certain performance measures.

Intra-group balances and income and expenses arising from intra-Group transactions are eliminated in preparing the consolidated financial statements. 1.5 Revenue The Group operates a number of revenue streams and accordingly applies methods for revenue recognition, based on the principles set out in IFRS 15 – Revenue (“IFRS 15”). The standard outlines the principles entities must apply to measure and recognise revenue with the core principle being that entities should recognise revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to a customer. The principles in IFRS 15 must be applied using the following five step model: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognise revenue when or as the entity satisfies its performance obligations. The revenue and profits recognised in any period are based on the delivery of performance obligations and an assessment of when control is transferred to the customer. Revenue is recognised either when the performance obligation in the contract has been performed, ‘point in time’ recognition, or ‘over time’ as control of the performance obligation is transferred to the customer. The following revenue recognition criteria apply to the Group’s main income streams. Aeronautical and related revenue Aeronautical revenue is recognised net of rebates, on delivery of service to the customer and comprises: • passenger charges which are recognised on their departure; • runway movement charges (landing and take-off) levied according to aircraft’s maximum take-off weight, and related short-term aircraft parking charges based on a combination of time parked and area of use, both recognised on departure; • long term aircraft parking charges based on a combination of time parked and area of use, recognised when services are rendered; • other charges which are recognised when services are rendered.

1. MATERIAL ACCOUNTING POLICY INFORMATION 1.1 Reporting entity Shannon Group plc (the “Company”) is a company domiciled in Ireland. The consolidated financial statements of the Company comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). Following the enactment of the State Airports (Shannon Group) Act 2014 (“Shannon Group Act”), Shannon Group plc was incorporated on 29 August 2014. The entire issued share capital of the Company is beneficially held by the Minister for Public Expenditure and Reform. On 5 September 2014, ownership of all shares held directly by the Minister for Public Expenditure and Reform, in both Shannon Airport Authority plc and Shannon Commercial Enterprises Limited (formerly Shannon Free Airport Development Company Limited) transferred to Shannon Group plc (“Shannon Group”). The Shannon Group Act provided that no consideration was payable by Shannon Group in respect of the shares vested in Shannon Group. The Group and Company financial statements were approved for issuance on 20 March 2025. The following details the material accounting policies which are applied consistently in dealing with items which are considered material in relation to the Group and Company financial statements and are consistently applied by all Group entities. 1.2 Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and their interpretations issued by the International Accounting Standards Board (IASB) as adopted by the EU (“EU IFRS”). The individual financial statements of the Company (“Company financial statements”) have been prepared in accordance with EU IFRS as applied in accordance with the Companies Acts 2014, which permits a company that publishes its Company and Group financial statements together to take advantage of the exemption in Section 304 of the Companies Act 2014 from presenting to its

members its Company Statement of Profit or Loss and related notes that form part of the approved Company financial statements. The Group and Company financial statements, which are presented in Euro, the functional currency of the Company and each of its subsidiaries, have been prepared on the historical cost basis, except for the following material items in the Statement of Financial Position: • investment property is measured at fair value; • financial assets measured at fair value; and • the defined benefit plan liability is recognised as the fair value of plan assets less the present value of the defined benefit plan obligations. The methods used to measure fair values are discussed further within the relevant notes. 1.3 Going Concern The directors believe that sufficient financial resources are available to enable the Group and Company to meet its obligations as they fall due, covering a period up to 31 March 2026. In forming their view the directors have reviewed the Group’s projections, with particular reference to the Group’s liquidity, operating cash flows, expected passenger volumes and existing bank facilities. For this reason, the directors continue to adopt the going concern basis in preparing these financial statements. 1.4 Consolidation The Group financial statements consolidate the financial statements of Shannon Group and all of its subsidiaries as detailed in Note 17. Therefore, these financial statements are the consolidated results of Shannon Group plc, Shannon Airport Authority DAC (“Shannon Airport”) and Shannon Commercial Enterprises DAC (“Shannon Commercial Enterprises”), and Shannon Airport Authority DAC’s subsidiary companies, SAA Pension Corporate Trustee DAC and SAA Airport Authority Financial Services DAC, for the year ended 31 December 2024. The results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated Statement of Profit or Loss from the date of acquisition or up to the date of disposal. Control exists when the Company has exposure or rights to variable return and the ability to affect these returns through its power over an investee.