Privatisation ofMalta International Airport plc

Karin Zipperer

Chairman

MaltaAn Island Rich in History

…in the Mediterranean

Member of the European Union since May 2004 and joined the Eurozone and Schengen in 2008

Population 400,000Area of Maltese Islands 316 km 2

Distances from MaltaNorth Sicily – 93 kmSouth Tunisia – 288 kmEast Gibraltar – 1826 kmWest Alexandria – 1510 km

MaltaKey Economic Figures

GDP € 5.4 billionGDP per capita € 13,139GDP per capita compared with EU27 average: 70%

Main Contributors to GDPTourism 14.0% (29%)*Agriculture 2.3%Fishing 0.3%Manufacturing 20.3%Financial Intermediation 6.3% Transport, Communication 9.8%

*Taking into account the direct as well as the indi rect services contributing to the tourism industry, the contribution to the GDP i s of 29%

Brief History of MIA

Up to 1992 The Airport was run by Department of Civil Aviation

1992 to 2002MIA plc took over the management of the air terminal and airfield operations

26 Jul 2002 Government sold 40% of the equity of MIA tothe MML Consortium

15 Dec 2002 Government sold 20% of the equity of MIA to the Public

5 Oct 2005 Government sold a further 20% of the equity of MIA to the Public

Airfield Data

••Two runways:Two runways:

N/S:N/S: 3544m x 60m3544m x 60m

W/E:W/E: 2377m x 45m2377m x 45m

••Nine Aircraft Parking AreasNine Aircraft Parking Areas

••Air Malta and Lufthansa Air Malta and Lufthansa

Technik Aircraft Maintence Technik Aircraft Maintence

BasesBases

Traffic Overview 2007

Passenger movements2007 2.99 million +10.4%2006 2.69 million

Aircraft movements 2007 27,356 +10.7%2006 24,711

Cargo & Mail (tonnes) 2007 18,052 -1.2%2006 18,263

Highlights 2007

Turnover

€44.35 million

EBITDA

€20.31 million 45.8%

Net Profit

€8.92 million

Net Dividend per Share

€0.116

Passenger Movements

2.97 million

Privatisation of MIA

Government’s Objectives

•To operate airport on commercial lines

•To increase business activity

•To maintain standards at international level

•To improve financial state of affairs and reduce operating costs

Key Points of Agreement

•Lease of airport for 65 years

•Capital investment to modernise operations

•Government to sell its remaining 40% of shares over a number

of years taking advantage of the added value of the strategic partners

Privatisation process

• 1999 Government sets up a think-tank to recommend the best process for privatisation. The Malta Privatisation Unit is created.

• 2000 KPMG present a detailed report on the privatisation process

• 2001 Government appoints international consultants BNP Paribas.

International Expression of Interest is issued

Short-listing of consortia

• 2002 Final negotiations with short-listed consortium

Privatisation of MIA

60%

Government

40%

MML

July 2002

Government sold 40% of its shares to an international consortium, to operate and manage the airport for 65 years.

SNC-Lavalin38.75%

Flughafen Wien AG57.1%

Airport Investments Ltd4.15%

Malta Mediterranean Link Consortium Ltd

Vienna International Airport was the second airport to be privatised in Europe (40%) and handles 17 million passengers.

Canadian company SNC LavalinInc is a major engineering and construction Group, having also an airport division to handle the investments it has in various airports.

Airport Investments Ltd is a Maltese based company forming part of a Group that has direct interest in the travel and tourism industry.

Government sold a further 20% to the public and private investors in December 2002. 13.53 million shares were sold for Lm 0.73 (€ 1.70) per share.

40%

MML

40%

Government

20%

Public

December 2002

Privatisation of MIA

Privatisation of MIA

40%

MML

30%

Public

20%

Government

November 2005

10%

VIE

Government issued another public offering and sold another 20% of its shares in November 2005. The shares were sold for Lm 1.40 (€ 3.26) per share.

Shares are traded on the Malta Stock Exchange.

Privatisation of MIA

During the privatisation

process, a number of

strategic objectives for

implementation were set:

�Airline Marketing

�Supporting the Tourism Industry

�Non-Aviation Business

Airline Marketing

• Proactive approach to attract more

airlines

• Market research and analysis

• Participating in Airline Conferences and

conventions

• Active participation with MTA and other

stakeholders

Strategic Objectives

Supporting the Tourism Industry

• Incentives to support marketing

initiatives taken by the Malta Tourism

Authority

• Collaboration with all industry

stakeholders

• Promoting Malta as an ideal holiday and

business destination

• Involvement in policy decisions through

representation on MTA’s Board of

Directors

Strategic Objectives

Strategic Objectives

Non-Aviation Business

•Develop the retail business and

maximise on space available

•Development of Cargo Area

•Land Development

•Cruise & Fly concept

New concepts for the retail

areas in the Departure Area

MIA is investing €1.15 million to re-

design the retailing concept in the

Departures Area to increase

commercial revenue.

The retail operators will also invest in

new designs of their respective outlets

and introduce a larger selection of

international branded items.

Retail Business

Retail Business

Arrivals Area- Re-design and

new concepts of the retail

areas

•Relocation of all retail outlets and

car hire booths at Welcomers’

Area

•Relocation of Food & Beverage

facility

•Relocation of retail outlet from

1st floor to Baggage Reclaim Area

Retail Business

•€25.5 million contract signed with Nuance,

a leader in the international airports retail

field.

•This amount is the minimum guaranteed

revenue for six years till 2014.

•Nuance will extend their Schengen Area

outlet by 670m2 with a novel walk-through

concept combining perfume, skincare and

cosmetics, confectionery, tobacco, liquor,

international wines and toys.

Other Non-Aviation Business

•Development of a Cargo Area at

MIA.

• Supporting the Cruise Liner

industry with services on arrival at

the airport and improve air

connectivity to facilitate

turnaround cruise holidays in

Malta

•Developing land both on airside

and landside to increase services

and facilities.

Financial Results Since Privatisation

Turnover

2002/03 € 31.01 million

2003/04 € 33.31 million

2004/05 € 38.60 million

2005/06 € 38.88 million

2006 € 32.73 million *

2007 € 44.35 million

2002-2007 +34% growth

*2006 – nine-month period due to change of Financial Year

Traffic Development Since Privatisation

Passenger Movements

2002 2.66 million

2003 2.63 million

2004 2.78 million

2005 2.77 million

2006 2.70 million

2007 2.98 million

2002-2007 +12% growth

Traffic Results Q1-2008

Q1 2008 Q1 2007 +/- +/- %

Passenger Movements

535,185 444,587 +94,598 +21.3%

Aircraft Movements 5,227 4,623 +604 +13.1%

Cargo & Mail (tonnes) 4,533 3,995 +538 +13.5%

Seat Capacity 808,699 696,167 +112,532 +16.2%

Seat Load Factor 66.7% 63.9% +2.8%

MTOW (tonnes) 449,586 373,468 +76,118 +20.4%

MIA plc Share Price

0,600

1,100

1,600

2,100

2,600

3,100

3,600

4,100

01.12.200201.02.200301.04.200301.06.200301.08.200301.10.200301.12.200301.02.200401.04.200401.06.200401.08.200401.10.200401.12.200401.02.200501.04.200501.06.200501.08.200501.10.200501.12.200501.02.200601.04.200601.06.200601.08.200601.10.200601.12.200601.02.200701.04.200701.06.200701.08.200701.10.200701.12.200701.02.200801.04.2008

Eur

Eur 1.70

Eur 3.33

Thank you