Luka Koper d d : Report JAN-SEPT 2021

2021

NON-AUDITED REPORT ON PERFORMANCE OF LUKA KOPER GROUP AND LUKA KOPER, D. D., IN JANUARY - SEPTEMBER 2021

Luka Koper Group and Luka Koper, d. d.

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Performance highlights of the Luka Koper Group in January - September 2021

Interim report 2021

Table of content
INTRODUCTION .......................................................................................................................................................	3
1	Performance highlights of the Luka Koper Group in January - September 2021..........................................	3
2	Introductory note .............................................................................................................................................	11
3	Presentation of Luka Koper Gropu.................................................................................................................	12
4	Corporate Management Board and Governance............................................................................................	14
BUSINESS REPORT ................................................................................................................................................	16
5	Significant events, news and achievements in January - September 2021 .................................................	16
6	Relevant post-balance events.........................................................................................................................	18
7	Performance analysis .....................................................................................................................................	19
8	Marketing and sales ........................................................................................................................................	25
9	Non-financialinvestments..............................................................................................................................	30
10	Risk management ............................................................................................................................................	31
11	European projects ...........................................................................................................................................	32
12	Trading in LKPG...............................................................................................................................................	33
SUSTAINABLE DEVELOPMENT ..............................................................................................................................	36
13	Care for employees .........................................................................................................................................	36
14	Natural environment.......................................................................................................................................	39
15	Commitment to the comunity .........................................................................................................................	44
ACCOUNTING REPORT ...........................................................................................................................................	45
16	Financial statements of Luka Koper, d. d., and Luka Koper Group ..............................................................	45
17	Notes to the separate financial statements ...................................................................................................	51
18	Additional notes Income Statement ...............................................................................................................	53
19	Additional notes to the Statement of Financial position................................................................................	58
20	Statement of Management Board responsibility ...........................................................................................	76

Interim report 2021

Performance highlights of the Luka Koper Group in January - September 2021

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INTRODUCTION

1 Performance highlights of the Luka Koper Group in January - September 2021

In the first nine months of 2021, there was a gradual recovery of the global and strenghtening of the economic activity the international context, which contributed to the achievement of good business results of the Luka Koper Group. Financial indicators, the Luka Koper Group achieved in the first nine months of 2021, were better resp. at the same level as planned and achieved indicators in the equivalent period in 2020. The achieved maritime throughput, in January - September 2021, exceeded planned quantities as well as the achieved throughput in the same period in the previous year, higher throughput in both strategic product groups containers and cars should be emphasized, and higher throughput of dry bulk cargoes in comparison with 2020 and also compared to the plan. In March, despite the aggravated situation due to the COVID-19 pandemics, Luka Koper, d.d. set a new monthly record in the container throughput, when 97,101 TEU, container units, were transhipped. In comparison with the previous year and the plan, the throughput of liquid cargoes decreased, mostly due to the suspension of the passenger air traffic and lower volume of the throughput of petroleum products due to the COVID-19 pandemics impact. Besides that, the throughput of the thermal coal, of which consumption has been reducing in complaince with the European legislation which in coming years provides for complete decarbonisation also decreased. .

In the last quarter of 2021, further global economic recovery is expected but due to new spread of the COVID-19 the pandemic, the growth is expected to moderate, uncertainty has been increasing.

755,980 TEU	+6 % 2021/2020
container throughput	+3 % 2021/PLAN 2021
474,022 units	+11 % 2021/2020
cars throughput	+6 % 2021/PLAN 2021
168.2 mio. EUR	+9 % 2021/2020
Net revenue from sale	+4 % 2021/PLAN 2021

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Performance highlights of the Luka Koper Group in January - September 2021

Interim report 2021

23.4 mio. EUR

earnings before interest and taxes (EBIT)

45.6 mio. EUR

earnings before interest and taxes, depreciation and amortisation (EBITDA)

27.1 %

EBITDA margin

22.5 mio. EUR

net profit or loss

41.1 mio. EUR

investments

6.7 %

return on equity (ROE)

0.5

net financial debt/EBITDA

+8 % 2021/2020

+37 % 2021/PLAN 2021

+7 % 2021/2020

+20 % 2021/PLAN 2021

-1% 2021/2020

+15 % 2021/PLAN 2021

+3 % 2021/2020

+34 % 2021/PLAN 2021

-18% 2021/2020

-16% 2021/PLAN 2021

-3% 2021/2020

+30 % 2021/PLAN 2021

+0,2 2021/2020

-0,5 2021/PLAN 2021

Interim report 2021

Performance highlights of the Luka Koper Group in January - September 2021

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Alternative performance measures

The Luka Koper Group also used alternative measures (APMs1 Guidelines), defined by ESMA2.

	Alternative measure		Calculation		Explanation of the selection
	Earnings before interest		Earnings before interest and		It shows the performance (profitability) of the
		taxes(EBIT) = difference between
	and taxes(EBIT)			company's operaions from the core business.
		operating income and costs.
			Earnings before interest and taxes,		A measure of the company's financial
	Earnings before interest			performance and an approximation of the
		depreciation and amortisation (EBITDA)
	and taxes, depreciation and			cash flow from operations. Shows the ability
		= Earnings before interest and
	amortisation (EBITDA)			to cover write-downs and other non-operating
		taxes(EBIT) + amortisation.
				expenses.

Added value = net revenue from sale + capitalised own products and own

Added valueservices + other revenue - costs of goods, material, services - other

operating expenses excluding revaluation operating expenses .

Shows the newly created value of the company within one year. It is a measure of economic activity and success.

				Return on sales (ROS) = Earnings		Shows the operational efficiency of the
	Return on sales (ROS)			before interest and taxes(EBIT) / net
				company.
				revenue from sale.
				Return on equity (ROE) = net income/		Shows the management success in increasing
	Return on equity (ROE)				the value of the company for the owners or
			shareholder equity.
					shjareholders.
	Return on assets (ROA)			Return on assets (ROA) = net income /		Shows how a company manages its assets.
			average total assets.
				EBITDA margin = Earnings before		Shows the business performance and
EBITDA margin		interest, taxes, depreciation and		profitability of market activity in percent. It is
	amortisation (EBITDA) / net revenue		used to compare the company performance
				from sale.		with other companies.
				EBITDA margin from market activity =
	EBITDA margin from			Earnings before interest and taxes,		Shows the business performance and
			depreciation and amortisation (EBITDA)
	market activity				profitability of market activity un percent.
			/ net revenue from sale from market
				activity.
						Shows indebtedness and profitability of a
				Net financial debt/EBITDA = (Financial		company in order to assess the company's
Net financial debt/EBITDA		liabilities - cash and cash equivalents) /		ability to settle its financial debts in the future
				EBITDA.		if the company maintains the same volume of
						buisness and profit.

1. APMs - Alternative Performance Measures
2. ESMA - European Securities and Markets Authority - European Securities and Markets Authority