Luka Koper

Management Reports • Oct 3, 2022

SUMMARY OF REVISED 2022 BUSINESS PLAN OF LUKA KOPER D.D.

Luka Koper, d. d.

The company Luka Koper, d.d. has drawn up the revised 2022 business plan due to very good business results achieved by the company in the period January-August 2022, as well as due to harsh economic conditions which have been affected by the current situation in Ukraine and developments in the energy markets, reflected in increased energy prices and high inflation.

In the period January-August 2022, net sales revenue increased, in particular storage revenue, as a result of longer dwell times in warehouses due to the current global logistics market conditions. With a gradual normalisation of the situation, we expect the growth of the above-mentioned revenue to slow down by the end of the year. According to new estimates, Luka Koper d.d. is expected to achieve net sales revenue of EUR 300 million in 2022, which, in addition to storage revenue will also be affected by the increase in service prices, the increased volume of throughput of all commodity groups and the increased volume of ancillary services.

On the other hand, the company will also face higher operating costs in 2022. The situation in the energy markets will lead to further increases in energy and raw material costs. Labour costs will also increase, mainly due to higher throughput volumes and related headcount, higher merit payments and the alignment of salaries with inflation. In addition, higher throughput will have an impact on the increase in the cost of port services and the throughput tax, while higher net sales revenue will lead to higher concession fee costs and certain other costs.

The revised 2022 business plan assumes that Luka Koper d.d. will achieve an EBIT of EUR 69 million and a net profit of EUR 63 million in 2022.

The revised version takes into account the results achieved by Luka Koper d.d. in the period January-August 2022 and the outlook for the period until the end of 2022¹ , excluding the effects of management's estimates regarding the valuation of assets and liabilities made at the time of the preparation of the audited financial statements (provisions, impairments).

	Luka Koper, d. d.
	2021	INITIAL PLAN 2022	UPDATED PLAN 2022
Net sales revenue (in million EUR)	225,0	239,8	300,7
2 EBIT (in million EUR)	30,7	30,5	68,9
3 EBITDA (in million EUR)	59,8	60,7	99,0
EBITDA margin (in %)	26,6	25,3	32,9
Net profit or loss (in million EUR)	29,9	31,4	62,9

The Updated 2022 Business Plan was also approved by the company's supervisory board on 30 September 2022.

¹ The forecast is based on the current expectations and is subject to risks and uncertainties, which may have an impact on actual results and may materially differ due to various factors, over some of these Luka Koper Group has no control. Luka Koper allows any up-dating or auditing of these forecasts as far as the future developments would differ from the expected.

² Earnings before interest and tax (EBIT) = the difference between operating income and operating expenses;

³ Earnings before interest, tax, depreciation and amortization (EBITDA) = Earnings before interest and tax (EBIT) + amortization.