September 30, 2024

Condensed Interim Statement of Financial Position
(Unaudited)

(In thousands of Canadian dollars) September 30, 2024 March 31, 2024
Assets
Current assets
Cash  $                  40,603  $                   9,955
Trade and other receivables (note 4)                    189,089                    130,036
Inventories                     12,723                     14,462
Prepaids                       5,157                       8,506
                   247,572                    162,959
Non-current assets
Property and equipment (note 5)                    360,055                    355,726
Intangible assets (note 6)                     13,723                     14,160
Right-of-use assets (note 7)                     16,334                     17,059
Employee benefits asset (note 8)                     61,273                     57,088
                   451,385                    444,033
Total assets  $                698,957  $                606,992
Liabilities and Equity
Current liabilities
Trade and other payables   $                233,327  $                140,214
Holdbacks                             11                          142
Lease liabilities (note 10)                       2,591                       2,389
Deferred government funding related to operating expenses (note 11)                     17,880                     22,968
Derivative financial liabilities                            60                            82
                   253,869                    165,795
Non-current liabilities
Lease liabilities (note 10)                     15,995                     16,808
Deferred government funding related to capital expenditures (note 11)                    372,951                    368,994
Employee benefits liability (note 8)                     19,771                     18,484
Derivative financial liabilities -                            10
                   408,717                    404,296
Equity
Accumulated surplus                     36,371                     36,901
Total liabilities and equity  $                698,957  $                606,992

Contingencies (note 9) and contractual arrangements (note 14)

The accompanying notes are an integral part of these condensed interim financial statements.

Condensed Interim Statement of Comprehensive Income (Loss)
(Unaudited)

(In thousands of Canadian dollars) Three months ended
September 30
Six months ended
September 30
2024 2023 2024 2023
Expenses
Pre-Board Screening   $  169,626  $  148,961  $  326,848  $  296,437
Hold Baggage Screening       41,922       40,916       82,905       81,109
Non-Passenger Screening       36,560       38,301       73,415       75,577
Restricted Area Identity Card Program         1,390            995         2,450         2,091
Corporate services       14,012       12,532       27,531       25,713
Total expenses (note 12)      263,510      241,705      513,149      480,927
Other expenses (income)
Finance costs            172              97            349            164
Net loss (gain) on fair value of derivative financial instruments            115           (419)             (32)             (12)
Foreign exchange (gain) loss             (53)              82             (62)             (20)
Write-off of property and equipment and intangible assets -               2 -              17
Loss on disposal of property and equipment - - -               3
Total other expenses (income)            234           (238)            255            152
Financial performance before revenue and government funding      263,744      241,467      513,404      481,079
Revenue
Finance income            957            806         1,859         1,483
Miscellaneous income              25              14              27              14
Total revenue            982            820         1,886         1,497
Government funding
Parliamentary appropriations for operating expenses      248,085      229,196      482,730      453,723
Amortization of deferred government funding related to capital expenditures       11,728       10,492       22,769       20,947
Parliamentary appropriations for lease payments            801            532         1,578         1,061
Total government funding (note 11)      260,614      240,220      507,077      475,731
Financial performance  $    (2,148)  $       (427)  $    (4,441)  $    (3,851)
Other comprehensive (loss) income
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)           (219)       12,578         3,911         9,343
Total comprehensive income (loss)  $    (2,367)  $    12,151  $       (530)  $     5,492

The accompanying notes are an integral part of these condensed interim financial statements.

Condensed Interim Statement of Changes in Equity
(Unaudited)

For the three months ended September 30:

(In thousands of Canadian dollars) Accumulated surplus
Balance, June 30, 2024  $                  38,738
Financial performance                      (2,148)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                         (219)
Balance, September 30, 2024  $                  36,371
Balance, June 30, 2023  $                  28,470
Financial performance                         (427)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                     12,578
Balance, September 30, 2023  $                  40,621

For the six months ended September 30:

(In thousands of Canadian dollars) Accumulated surplus
Balance, March 31, 2024  $                  36,901
Financial performance                      (4,441)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                       3,911
Balance, September 30, 2024  $                  36,371
Balance, March 31, 2023  $                  35,129
Financial performance                      (3,851)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                       9,343
Balance, September 30, 2023  $                  40,621

The accompanying notes are an integral part of these condensed interim financial statements.

Condensed Interim Statement of Cash Flows
(Unaudited)

(In thousands of Canadian dollars)  Three months ended
September 30
 Six months ended
September 30
2024 2023 2024 2023
Cash flows provided by (used in)
Operating activities
Financial performance  $           (2,148)  $              (427)  $           (4,441)  $           (3,851)
Items not involving cash
Depreciation and amortization (note 12)              12,434              11,264              24,165              22,464
Change in net employee benefits asset/liability                 1,011                    (70)                1,013                   564
Change in fair value of financial instruments at fair value through profit and loss                    115                  (419)                    (32)                    (12)
Amortization of deferred government funding related to capital expenditures (note 11)             (11,728)             (10,492)             (22,769)             (20,947)
Write-off of property and equipment and intangible assets -                      2 -                     17
Loss on disposal of property and equipment - - -                      3
Net change in working capital balances (note 16)              11,242               (5,391)              17,755                4,400
             10,926               (5,533)              15,691                2,638
 Investing activities 
Parliamentary appropriations received for capital funding (note 11)              24,055                5,590              28,278                5,590
Purchase of property and equipment               (7,228)               (5,510)             (11,427)               (8,285)
Purchase of intangible assets                   (579) -                  (660) -
             16,248                     80              16,191               (2,695)
 Financing activities 
Lease principal payments                  (630)                  (437)               (1,234)                  (903)
                 (630)                  (437)               (1,234)                  (903)
 Increase (decrease) in cash               26,544               (5,890)              30,648                  (960)
 Cash, beginning of period               14,059              18,715                9,955              13,785
 Cash, end of period   $           40,603  $           12,825  $           40,603  $           12,825

The accompanying notes are an integral part of these condensed interim financial statements.