December 31, 2024

Condensed Interim Statement of Financial Position
(Unaudited)

(In thousands of Canadian dollars) December 31, 2024 March 31, 2024
Assets
Current assets
Cash  $                  3,331  $                  9,955
Trade and other receivables (note 4)                  283,220                  130,036
Inventories                    14,520                    14,462
Prepaids                     4,504                     8,506
Derivative financial assets                         856 -
                 306,431                  162,959
Non-current assets
Property and equipment (note 5)                  357,462                  355,726
Intangible assets (note 6)                    13,425                    14,160
Right-of-use assets (note 7)                    15,656                    17,059
Employee benefits asset (note 8)                    66,328                    57,088
Derivative financial assets                         229 -
                 453,100                  444,033
Total assets  $              759,531  $              606,992
Liabilities and Equity
Current liabilities
Trade and other payables   $              291,628  $              140,214
Holdbacks                           61                        142
Lease liabilities (note 10)                     2,629                     2,389
Deferred government funding related to operating expenses (note 11)                    19,024                    22,968
Derivative financial liabilities -                          82
                 313,342                  165,795
Non-current liabilities
Lease liabilities (note 10)                    15,325                    16,808
Deferred government funding related to capital expenditures (note 11)                  370,083                  368,994
Employee benefits liability (note 8)                    19,711                    18,484
Derivative financial liabilities -                          10
                 405,119                  404,296
Equity
Accumulated surplus                    41,070                    36,901
Total liabilities and equity  $              759,531  $              606,992

Contingencies (note 9) and contractual commitments (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
December 31
Nince months ended
December 31
2024 2023 2024 2023
Expenses
Pre-Board Screening   $  169,372  $  148,363  $  496,220  $  444,800
Hold Baggage Screening       42,916       42,032      125,821      123,141
Non-Passenger Screening       37,854       39,534      111,269      115,111
Restricted Area Identity Card Program         1,120         1,147         3,570         3,238
Corporate services       15,504       14,094       43,035       39,807
Total expenses (note 12)      266,766      245,170      779,915      726,097
Other expenses (income)
Foreign exchange loss (gain)            222             (60)            160             (80)
Finance costs            167            175            516            339
Net (gain) loss on fair value of derivative financial instruments        (1,145)            663        (1,177)            651
Loss on disposal of property and equipment -              62 -              65
Write-off of property and equipment and intangible assets - - -              17
Total other expenses (income)           (756)            840           (501)            992
Financial performance before revenue and government funding      266,010      246,010      779,414      727,089
Revenue
Finance income            707            770         2,566         2,253
Miscellaneous income              14               2              41              16
Total revenue            721            772         2,607         2,269
Government funding
Parliamentary appropriations for operating expenses      250,639      232,364      733,369      686,087
Amortization of deferred government funding related to capital expenditures       12,746       10,663       35,515       31,610
Parliamentary appropriations for lease payments            804            401         2,382         1,462
Total government funding (note 11)      264,189      243,428      771,266      719,159
Financial performance  $    (1,100)  $    (1,810)  $    (5,541)  $    (5,661)
Other comprehensive (loss) income
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)         5,799      (20,021)         9,710      (10,678)
Total comprehensive income (loss)  $     4,699  $   (21,831)  $     4,169  $   (16,339)

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 December 31:

(In thousands of Canadian dollars) Accumulated surplus
Balance, September 30, 2024  $                  36,371
Financial performance                      (1,100)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                       5,799
Balance, December 31, 2024  $                  41,070
Balance, September 30, 2023  $                  40,621
Financial performance                      (1,810)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                    (20,021)
Balance, December 31, 2023  $                  18,790

For the nine months ended December 31:

(In thousands of Canadian dollars) Accumulated surplus
Balance, March 31, 2024  $                  36,901
Financial performance                      (5,541)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                       9,710
Balance, December 31, 2024  $                  41,070
Balance, March 31, 2023  $                  35,129
Financial performance                      (5,661)
Item that will not be reclassified to financial performance
Remeasurement of defined benefit plans (note 8)                    (10,678)
Balance, December 31, 2023  $                  18,790

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
December 31
 Nine months ended
December 31
2024 2023 2024 2023
Cash flows provided by (used in)
Operating activities
Financial performance  $           (1,100)  $           (1,810)  $           (5,541)  $           (5,661)
Items not involving cash
Depreciation and amortization (note 12)              13,094              11,266              37,259              33,730
Change in net employee benefits asset/liability                    684                  (281)                1,697                   283
Other non-cash transactions                   360 -                   360 -
Amortization of deferred government funding related to capital expenditures (note 11)             (12,746)             (10,663)             (35,515)             (31,610)
Change in fair value of financial instruments at fair value through profit and loss                (1,145)                   663               (1,177)                   651
Write-off of property and equipment and intangible assets - - -                     17
Loss on disposal of property and equipment -                     62 -                     65
Net change in working capital balances (note 16)             (34,334)               (7,537)             (16,579)               (3,137)
            (35,187)               (8,300)             (19,496)               (5,662)
 Investing activities 
Parliamentary appropriations received for capital funding (note 11)              10,196              12,599              38,474              18,189
Purchase of property and equipment             (11,532)               (5,006)             (22,959)             (13,291)
Purchase of intangible assets                   (110)               (3,409)                  (770)               (3,409)
              (1,446)                4,184              14,745                1,489
 Financing activities 
Lease principal payments                  (639)                  (226)               (1,873)               (1,129)
                 (639)                  (226)               (1,873)               (1,129)
 Decrease in cash              (37,272)               (4,342)               (6,624)               (5,302)
 Cash, beginning of period               40,603              12,825                9,955              13,785
 Cash, end of period   $            3,331  $            8,483  $            3,331  $            8,483

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