Scandinavian Airlines System (Investments) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2025

1	General information

Scandinavian Airlines System (Investments) Limited (the 'company') is a private company limited by share capital, incorporated in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors' report on page 2.

2	Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.

Going concern

The directors have prepared these financial statements on the going concern basis, which assumes that the company will remain in operational existence for a period of at least twelve months from the date of approval. This is on the basis that the parent undertaking, Scandinavian Airline Systems, will provide the company with sufficient resources to enable the company to meet its financial obligations as they fall due in line with the Deed of Guarantee. Accordingly, the financial statements have been prepared on the basis of a going concern.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Scandinavian Airline System, which may be obtained from www.sasgroup.net. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement, transactions with group entities and remuneration of key management personnel.

Adjusting events after the financial period

There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the financial statements.

Scandinavian Airlines System (Investments) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2025 (continued)

2	Accounting policies (continued)

Judgements and key sources of estimation uncertainty

There were no critical judgements, key sources of estimation uncertainties or assumptions made by the directors in the process of applying the company's accounting policies which have a significant effect on the amounts recognised in the financial statements.

Taxation

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at
the balance sheet date where transactions or events that result in an obligation to pay more tax in the
future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and are subject to an insignificant risk of change in value.

Receivables

Trade and other receivables that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade and other payables that are payable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be paid. Those that are payable after more than one year or that constitute a financing transaction are recorded initially at transaction price and subsequently at amortised cost using the effective interest method.

Scandinavian Airlines System (Investments) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2025 (continued)

2	Accounting policies (continued)

Defined benefit pension obligation

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The cost of providing benefits is determined periodically by independent actuaries and charged to the Income Statement in the period in which those benefits are earned by the employees. Remeasurements, including actuarial gains and losses are recognised in the Statement of Comprehensive Income in the period in which they occur. Past service costs resulting from a plan amendment or curtailment are recognised immediately in the Income Statement.

The pensions asset or liability recognised in the Statement of Financial Position in respect of defined benefit pension plans represents the fair value of scheme assets, less the present value of the defined benefit obligation at the year end calculated using a number of actuarial assumptions. The bid values of the scheme assets are not intended to be realised in the short term and may be subject to significant change before they are realised. The present value of the scheme's liabilities are derived from cash flow projections over long periods and are , therefore, inherently uncertain.

The company participates in a group pension scheme and is responsible for the administration. All costs and income for the scheme have been recognised in the company's Income Statement.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2024 - 0).

4	Cash and cash equivalents

	2025 £	2024 £
Cash at bank	6,627	15,700

Scandinavian Airlines System (Investments) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2025 (continued)

5

Payables

	2025 £	2024 £
Due within one year
Amounts owed to group undertakings	23,699,776	21,848,665
Accrued expenses	13,800	17,599
	23,713,576	21,866,264

The amounts owed to group undertakings disclosed above as falling within one year represents the company's unsecured, interest‑bearing loan provided by its ultimate parent undertaking acting through SAS Group Treasury.
The facility in place from 18 September 2024 was subject to an interest at a fixed rate of 8.40% per annum, determined by reference to the one‑year GBP interest rate swap plus a margin of 4.00%. On refinancing and extension of the loan on 18 September 2025, the fixed interest rate was revised to 8.12% per annum. Of the outstanding loan balances disclosed above, £224,693 (2024: £214,095) is non interest bearing. All loans are repayable on demand.

6	Provisions for liabilities

	Deferred tax £
At 1 November 2024	24,718
Increase (decrease) in existing provisions	169,615
At 31 October 2025	194,333

The deferred tax liability above is in respect of the company's defined benefit pension scheme surplus.

Scandinavian Airlines System (Investments) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2025 (continued)

7	Pension and other schemes

Defined benefit pension schemes

	2025 £	2024 £
Defined benefit net pension asset/(liabilities)	777,329	98,871
	777,329	98,871