TOUAX : Biannual newsletter Touax Newsletter #11

MESSAGE FROM THE

MANAGING PARTNERS

Dear customers, partners and collaborators,

in 2023, the Touax Group celebrates 170 years of existence, including 40 years of experience in the rental and management of shipping containers.

When the group was born in 1853, the creation of the "Compagnie de Touage de la Basse Seine et de l'Oise" made it possible to operate river transport on an industrial scale. A public-private partnership ("PPP") then allows private investors associated with institutional ones to finance public infrastructure on part of the Seine and the Oise with an exclusive 50-year license. In 1898, the Towing Company was the leader in these two areas.

Since then, the Touax Group has continued to develop. Listed on the Paris Stock Exchange in 1906, we modernized and diversified our equipment, with the investment in freight wagons in 1954. However, it was not until 2001, by creating the company Touax Rail Limited that this activity took off rapid growth in anticipation of the liberalization of rail freight in Europe and India which arrived a few years later.

In 1975, Touax also bet on the growth of international trade and invested in its first shipping containers. Touax becomes a direct operational lessor by buying Gold Container Corp ("GCC"), itself created in 1983, just forty years ago. GCC now renamed Touax Container Leasing continues its international expansion as European leader and 7th worldwide. These activities are at the heart of the real economy and transport because more than 53% of world goods (in value) are now containerized, whether for regional or international traffic.

Thus, in 170 years of existence, Touax has developed unique experience and has become a world reference as a manager and leasing company of sustainable transport equipment.

The history of the Touax Group is a human and family adventure, to which shareholders, investors, partners, customers and employees contribute. For five generations, the family of Walewski entrepreneurs has embodied the sustainability and vision of the company. Today, the Touax Group has 250 committed and professional employees trained in Lean 6 Sigma continuous improvement methods, spread over 11 countries and of 20 different nationalities.

Touax is also about openness to the world, values based on respect, integrity, reliability and operational excellence. Responding to the needs of our customers and giving them complete satisfaction are objectives shared by each of us.

Backed by our historical roots in low-carbon transport, Touax contributes to a more sustainable world by helping its customers reduce their carbon footprint. Our eco-responsible positioning contributes to the development of environmentally friendly transport.

BIANNUAL

NEWSLETTER

2023 #11

1853

The River Barge business starts up

1898

Creation of Touax

1906

Listing on the Paris Stock Exchange

1955

Investment in the Railcar business

1985

Acquisition of the Shipping Container business

1990

Asset management for third parties

1998

Joint management of the group by Fabrice and

Raphaël Walewski

2000

Consolidation of international expansion

2020

Touax Rail capital increase to accelerate growth

We manage €1.3bn of equipment for our own account and that of our third-party investors. In 2023, with 105 river barges, more than 12,000 freight wagons and around 385,000 containers, we offer our leasing, sales, technical and financial management services to more than 2,000 customers every day.

We are the 1st European lessor of logistics containers, the 2nd European lessor of intermodal wagons and the 1st European and South American lessor of river barges.

In addition, as a reference in Africa for modular construction, we are proud to participate in the creation of a more united world. For example, we have built more than 100,000m2 of schools in Ivory Coast in the last 24 months.

Thanks to the contribution of our customers, partners and employees since the origin of the group, Touax is today a global company contributing to a more sustainable world. We wish you all a very nice summer and a very good reading of this newsletter.

Fabrice & Raphaël Walewski

The first half of 2023 was marked by a drop in volumes, particularly in the intermodal segment.

However, thanks to the quality of our service and our diversified fleet, which can meet the needs of a large portfolio of customers, Touax Rail's activity grew by 5.4% in the first quarter, driven in particular by leasing income generated by volume growth in the automotive segment.

According to plan, deliveries of new wagons continue with the arrival of 6-axle Sggrss 80' wagons, which will increase the modal shift from road to rail and help our customers decarbonize their transport.

Touax Rail also continues to expand its railcar fleet in India with the start of deliveries of four new trainsets (block trains) for major players in the cement and steel industry, as well as an order for five additional block trains to meet the needs of our customers. We anticipate all deliveries before the end of the year.

As a major player specializing in intermodal transport, Touax Rail also supported the European CT4EU campaign: "Combined Transport for Europe".

Door-to-door combined transport is the future of freight transport in Europe. Thanks to the intelligent interconnection of rail, road and waterways, intermodal freight transport means a sustainable reduction in greenhouse gases

of up to 90% and a reduction in energy demand of up to 70%. At the same time, intermodal transport leads to an improvement in the working conditions of truck drivers, to the decongestion of roads and to a better quality of life for local residents. Zero Carbon Combined Transport (ZCCT) will ensure the decarbonization of freight transport by 2050.

With a 100% utilization rate for the entire fleet on all the river basins it serves, Touax River Barges has been performing well since last January.

In France we anticipate a temporary slowdown in the volumes transported on the Seine for the Greater Paris Project. The excavation phase and the evacuation of the rubble have been stopped. Now is the time to install cables, pipes and safety devices that do not require river transport.

Paris will host the Olympic Games in 2024 and the opening ceremony will take place on the Seine, in the city center, notably deploying river barges and barges to the delight of spectators.

What a great advertisement for our activity!

In South America, we are seeing a gradual recovery in demand. River operators have been facing severe drought for several years, which peaked in 2022. However, the recent rise in water levels on the Hidrovia network has enabled them to operate their business well since January, without any restrictions, and this should continue for the rest of 2023.

In addition, new development opportunities arise with in particular an expected growth in the transport of iron ore, agricultural products, the arrival of new factories connected to the river in Paraguay, and the desire of many players to equip themselves with new barges adapted to low water with a shallower draft.

At the end of last year, Touax River Barges acquired two second-hand river barges measuring 79 x 11.40 x 3.50m with a capacity of 2,600 tons each. These were transferred to Rotterdam where they were modified in a shipyard to meet the requirements of navigation on the Danube (installation of a new set of covers, painting in the hold, renewal of navigation certificates,…). Both units are currently used for grain transport on the lower Danube by one of our long-standing partners.

It was late 2022 but still worth mentioning today!

Faced with the urgency of climate change and the rising cost of energy, VOIES NAVIGABLES de FRANCE organized a new event "Vert le Fluvial" dedicated to the energy transition of the river sector in Paris at the Network - Yachts de Paris.

Clément Beaune, French Minister of Transport, was among nearly 250 participants from the river ecosystem. Touax River Barges had the opportunity to present its activities and services for the benefit of energy transition logistics.

"Vert le fluvial" 2022 Symposium: the river fills up on energies!

As expected, in the first half of 2023 the general economy slowed down, generating a strong normalization of all containerized traffics with volumes and freight rates very similar to the pre-pandemic period!

After 2 years of strong container production, our industry has seen very low demand for new containers with only around 600,000 teu produced in the last 6 months, due to lower consumption, better con- tainers' utilization and the easing of the global supply chain!

As a result, China's major container manufacturers have shut down all 31 main lines dedicated to the production of standard containers or drastically limited it to a low number of production hours per month.

During this same period, we have witnessed a reshuffling of world trade:

• re-globalizationis underway. The big players are indeed trying to diversify their logistics chains, fueling the growth of regional trade. We are witnessing a growth in demand for containers from maritime operators different from the usual players.
• specific markets are increasingly developing such as the Middle East, South America, Africa and India, the latter's population now exceeding that of China.
• the ongoing Russian-Ukrainian conflict has created a "friendshor- ing" effect and an additional increase in non-traditional traffic between "friendly" countries.

With utilization rates above 95%, Touax Container continues to travel where there is demand, regardless of the modes of transport (road, rail, sea) and geographical locations of operation.

Over the same period, demand for used containers remained sta- ble, with very active buyers worldwide and prices slightly above the average level of the last 20 years, confirming the resilience of our

assets and the growing number of applications for our containers on the secondary market!

The same applies to new containers, for which demand in Europe and America is stable.

Overall, 2023 will be an interesting year, which will have allowed the industry to consolidate after two crazy years linked to the COVID 19 pandemic, and to show its resilience by constantly adapting to the evolution of the world market!

The second half of the year should show some signs of improvement. The order book for new vessels consists of an additional capacity of approximately 3 million teu (twenty-foot equivalent units) over the next 18 months, which will require a significant need for shipping containers.

TouaxContainer continues to regularly purchase new containers to supply both shipping operators and international buyers and plans to accelerate the pace of deliveries in the second half of the year.

For all newrequests, whether immediate (24-hour delivery) or sched- uled, we are ready to serve you!

ORGANISATION

In the first half of 2023 we have kept reinforcing our team with DannyDELGADO, as AMR Operations Executive in Miami

A total of 661 containers were lost overboard in 2022, out of 250M transported, which is the lowest percentage loss since the World Shipping Council (WSC) launched the survey in 2008.

This number is less than one thousand of 1% (0.00026%) of the containers currently shipped each year.

To improve container security and reduce the number of containers lost at sea, several shipping companies and stakeholders launched the MARIN Top Tier initiative in 2021, which has already provided data on the causes of these events and how to avoid future incidents. Research is currently underway on the strength of containers and tiedowns, stowage planning and optimization, guidelines for vessel operations and voyage planning, with more results to come under the form of industry best practices, and updated security standards.

Congratulations to the industry and the teams who are committed every day to greater safety!

Summary of Containers Lost at Sea

Source: World Shipping Council

40 years… happybirthdayTouaxContainer, what a beautiful age!

It all started in San Francisco in 1983, with approximately 5,000 teu (twenty foot equivalent units) owned and operated by GOLD CONTAINER in the United States.

The Touax Group acquired the GOLD company in 1985 and has since been developing its asset management platform to serve the many players in the maritime industry around the world.

In 2008, we took a first key step and celebrated our first 100,000 containers managed on behalf of the Group and third-party investors.

In 2012, we renamed our division Touax Container, to be in line with the other divisions of the Group managing sustainable transport assets, Touax Rail and Touax River Barges.

So yes, GOLD = TOUAX...

the name changed a long time ago, the prefix of our containers too, from GLDU to TGCU, but not the spirit and the values that drive us: the total satisfaction of our customers, our employees and all our partners.

In 2014, we started to diversify our investments in reefer containers, leasing new units or through sale-and- leaseback solutions.

At the same time, we started our business of trading new containers called "one-trippers" which we have since developed, reaching more than 10,000 units sold in 2022.

Long-term and short-term leasing, finance leasing, purchase

• sale-leasebacksolutions and "one-way" transport are the pillars of our leasing offer deployed to meet the different requirements of our customers at all times.

In addition, we are continuing to develop our third-party asset management business, for which we are the world's third-largest lessor.

In line with the ESG approach supported within the Touax Group, TouaxContainer has made a commitment to sustainable finance with the transformation of all the compartments of the July 2022 financing contract into a Sustainability-Linked Loan.

The diversification implemented over the years allows us to accelerate our growth, develop new solutions and expand the range of active ingredients we offer to our clients.

We would like to thank all our partners who have accompanied us on this beautiful journey over the years: our financial partners, the shipping companies, our producers and buyers of containers, the depots around the world...

We have already celebrated our anniversary with some of them in the first half of this year and we plan to do the same with others in the second part.

For those who weren't available, and for those who are ready to start again… rest assured, we will close the party on our stand D20 at Intermodal Europe in October!

Come to see us!

Touax Container American team at

NPSA Conference, Las Vegas in April