Luka Koper d d : Information about business performance 2021

Information on the performance 2021

Luka Koper Group and Luka Koper, d. d.

1 Introductory note

Compliant with the Market and Financial instruments, Ljubljana Stock Exchange Rules as well as Guidelines and Disclosure for Listed Companies, Luka Koper, d. d., Vojkovo nabrežje 38, 6501 Koper, discloses this information on the performance of Luka Koper Group and Luka Koper, d. d., in January - December 2021.

The Annual Report 2021 will be published in accordance with the financial calendar on April 22, 2022.

Comparison of the results achieved by the Luka Koper Group in 2021 in 2020

Financial indicators achieved by the Luka Koper Group in 2021, were mostly slightly lower than ones achieved in in 2020 due to single events recognised among other revenue, which contributed to better performance results in 2020.

In 2021, net revenue from sale of the Luka Koper Group achieved EUR 228.4 million and was 9 percent resp. EUR

1. million higher than in 2020. Net revenue from sale from the market activity, which in 2021 amounted to EUR

1. million, was 9 percent resp. EUR 18.1 million higher than in the previous year, mainly due to higher revenue from the containers throughput, the revenue from the performance of the public utility service of regular maintenance of the port's infrastructure intended for the public transport in the amount of EUR 6.7 million was 6 percent resp. EUR 0.4 million higher than revenue generated in the previous year.
   Earnings before interest and taxes (EBIT) of the Luka Koper Group in 2021 amounted to EUR 31.3 million, which was 6 percent resp. EUR 2.2 million decrease in comparison with 2020, mainly due to other revenue which was 54 percent resp. EUR 5.5 million lower than in 2020, resulting from recognised revenue from written-off liabilities for the payment of pension and disbility insurance contributions in compliance with the Act Determining the Intervention Measures to Contain the Covid-19 Epidemic and Mitigate its consequences in 2020, in the amount of EUR 2.3 million and dresulting from lower revenue from reversal of provisions in the amount of EUR 3.3 million. Within other revenue in 2021 the revenue amounting to EUR 0.8 million was recognised among the revenue from the sale of property.
   Operating expenses of the Luka Koper Group in 2021 amounted to EUR 201.9 million, which was 8 percent resp.EUR

1. million ahead on 2020. The cost of material, the costs of services, labour costs and costs of amortisation increased, whilst other operating expenses decreased.
   The cost of material of the Luka Koper Group in 2021 amounetd to EUR 16.4 million, which was 2 percent resp. EUR 0.3 million ahead on 2020. The energy costs, mostly the cost of motor fuel increased, whilst the costs of auxilliary materials and replacement parts fell.
   The cost of services of the Luka Koper Group in 2021 amounted to EUR 58.5 million, which was 10 percent resp. EUR 5.4 million increase over the previous year.The cost of port services, which comprise the cost of hiring agency workers and cost of hiring services from external contracting partners increased in the amount of EUR 3.6 million, which was attributable to higher transhipment volume of cars, containers and general cargoes, in comparison with 2020. Therefore, as a result of a higher maritime throughput and revenue, also the transhipment and concession fees increased.
   In 2021, labour costs amounted to EUR 87 million and were by 10 percent resp. by EUR 8.2 million ahead on labour costs in 2020. The increase of costs was mainly attributable to higher number of employees, higher payments for job performance and due to higher, 0.3 percent adjustment of salaries for inflation from August 2020 and 2 percent adjustment in August 2021. As at 31 December 2021, Luka Koper, d.d. had 1,738 employees, whereas as at 31 December 2020, 1,698, which means 40 more employees.
   The cost of amortisation of the Luka Koper Group in 2021 amounted to EUR 29.8 million, which was 5 percent resp.

1. million ahead on 2020 from the purchase of new assets.
   Other operating expenses in 2021 amounted to EUR 10.3 million, which was 3 percent resp. EUR 0.3 million less than in 2020. Revaluation operating expenses of property, plant and equipment and investment property decreased. In 2021, earnings before interest and taxes, depreciation and amortisation (EBITDA) of the Luka Koper Group amounted to EUR 61.2 million, which was 1 percent oresp. EUR 0.6 million below the previous year.
   EBITDA margin of the Luka Koper Group in 2021 amounted to 26.8 percent, which was 9 percent resp. 2.7 percentage below 2020.
   Net profit or loss of the Luka Koper Group in 2021 amounted to EUR 31.8 million, which was 1 percent resp. EUR

1. million fall on the previous year. Net profit or loss 2021 compared to 2020 was affected by above explained impacts which contributed to lower earnings before interest and taxes (EBIT) and higher operating profit from financing acivity and higher results of associated companies. Higher corporate tax rate in 2021 in comparison with 2020 had a negative impact on the achieved net profit or loss.
   Return on equity (ROE) in 2021 amounted to 7 percent, which was 6 percent resp. 0.4 percentage point decline in comparison with 2020.
   In 2021, the Luka Koper Group continued the investment cyclus, primarily in the expansion of port facilities, since the pandemic was likely to fade away, the throughput is expected to grow in the coming years. In 2021, the Luka Koper Group allocated EUR 52.1 million for investments in property, plant and equipment, investment property and intangible assets, which was 23 percent resp. EUR 16 million below to 2020. Several major investments were undertaken. The continuation of the construction of the extension of the container quayside at the head of the Pier I for the needs of the Container terminal was the most important investment in 2021. Thus, the construction of the berthing place 7D was completed: In 2022, the construction of the storage areas in the hinterland of the berth will