Luka Koper

Interim / Quarterly Report • Aug 29, 2022

NON-AUDITED REPORT ON THE PERFORMANCE OF THE LUKA KOPER GROUP AND LUKA KOPER, D. D., IN JANUARY – JUNE 2022

Luka Koper Group and Luka Koper, d. d.

1	Introduction 3
2	Performance highlights of the Luka Koper in January - June 20225
3	Presentation of Luka Koper Group10
4	Business report 15
5	Accounting report33

1 Introduction

1.1 Introductory note

Compliant with the Market and Financial Instrument Act, Ljubljana Stock Exchange Rules as well as Guidelines and Disclosure for Listed Companies, Luka Koper, d. d., Vojkovo nabrežje 38, 6501 Koper discloses this Non-Audited Report on the performance of Luka Koper Group and Luka Koper, d. d., January – June 2022.

Non-Audited Report on the performance of Luka Koper Group and Luka Koper, d. d., in January – June 2022 can be examined at Luka Koper, d. d., Vojkovo nabrežje 38, 6501 Koper and shall be accessible via the company's website www.luka-kp.si, from August 26, 2022 onwards.

The company promptly publishes any pertinent changes to information contained in the prospectus for stock exchange listing on SEOnet, the electronic information system.

This Non-Audited Report on the performance of Luka Koper Group and Luka Koper, d. d., in January – June 2022 was addressed by the company's Supervisory Board at its regular session on August, 2022.

1.2 Statement of Management Board responsibility

Members of the Management Board of Luka Koper, d. d., responsible for the compilation of non-audited report the Luka Koper Group and Luka Koper, d. d., herein declare, that to the best of their knowledge:

• Non-audited condensed financial statements of the Luka Koper Group and Luka Koper, d. d., for the period of the first half of 2022 were compiled in accordance with the law and International accounting standards as adopted by EU and in order that they give a true and fair view of assets and liabilities, financial position, profit or loss and comprehensive income of the company/the Group.
• These condensed interim statements for the period ending 30 June 2022, were compiled in accordance with the International accounting standards 34 - Interim Financial statements and should be considered in relation to the annual financial statements for fiscal year ending 31 December 2021. The condensed financial statements for January – June 2022 were compiled with the same accounting policies and principles applicables in Luka Koper, d. d., and Luka Koper Group for 2021;
• In the Non-audited report for the first half of 2022 was included fair presentation of information on significant related party transactions in accordance with regulations.

Members of the Management Board:

Boštjan Napast Robert Rožac President of the Management Board Member of the Management Board

Nevenka Kržan Vojko Rotar

Member of the Management Board Member of the Management Board – Labour Director

Koper, August 17, 2022

2 Performance highlights of the Luka Koper in January - June 2022

In 2022, the world economy navigates between long-term pandemic and the war in Ukraine. In the second quarter, geopolitical situation deteriorated substantially due to the invasion on Ukraine and impacted economic trends in 2022. The war had a direct impact on the increase in the prices of energy products and raw materials, which is expected to increase over the course of the year. Direct exposure of the Luka Koper Group to Russia and Ukraine is relatively small, since the volume of throughput through the Port of Koper, destined to the markets of Ukraine and Russia, is negligible. Nevertheless, the Management Board regularly monitors the market situation regularly and responds in order to ensure the smooth operations of the Luka Koper Group. Luka Koper recorded the throughput growth in most commodity groups. Otherwise, the situation in logistics had never been so complex on a global level as it has been recently, which involves both land and sea transport. Irregular ships arrivals continue, extensive maintenance operations and investment in rail interventions are underway on the railway network, which result in significantly longer transit times of wagons. Consequently, the storage capacities in the ports are consequently arev very congestioned, since the turnover of goods slowed down. Experts predict that the deviations in logistic chains will continue also in the coming period.

The effects of the war did not directly impacted the operations of the Luka Koper Group in the first half of 2022. Financial indicators of the Luka Koper Group, achieved in the first half of 2022 were better than planned and achieved ones in the first half of 2021. The maritime throughput exceeded planned quantities by 11 percent, whereas the throughput in 2021 by 13 percent, the growth was recorded in all cargo groups. Net revenues from sales exceeded the planned by 29 percent or EUR 34.8 million, whereas last year figures by 35 percent or EUR 40.4 million. Higher net revenues from sales were mainly attributable to warehousing due to slower dispatch of goods resulting from the current situation on the global logistic market. With the gradual normalizations of the situation, the growth of the aforesaid revenues is expected to decline, however it is difficult to forecast in terms of time.

Higher revenues were attributable also to rising prices and increased volume of throughput and additional services.

In the beginning of 2022, the Luka Koper Group started the implementation of major investments which represent a new development cycle of this the most important cargo group in the container terminal area.

NET REVENUE FROM SALE 155.1 mio EUR

+35 % 2022/2021 +29 % 2022/PLAN ²⁰²²

MARITIME THROUGHPUT

11.7 mio TON +13 % 2022/2021 +11 % 2022/PLAN ²⁰²²

CONTAINER THROUGHPUT

526.5 THOUSAND TEU +3 % 2022/2021 +3 % 2022/PLAN ²⁰²²

CARS THROUGHPUT 367.3 THOUSAND UNITS +11 % 2022/2021 +6 % 2022/PLAN ²⁰²²

EARNINGS BEFORE INTEREST AND TAXES (EBIT) 47.8 mio EUR

+170 % 2022/2021 +195 % 2022/PLAN ²⁰²²

RETURN ON SALES (ROS) 30.8 %

+99 % 2022/2021 +128 % 2022/PLAN ²⁰²²

NET PROFIT OR LOSS 41.5 mio EUR

+169 % 2022/2021 +172 % 2022/PLAN ²⁰²²

INVESTMENT EXPENDITURE 31.9 mio EUR

+6 % 2022/2021 +62 % 2022/PLAN ²⁰²²

EARNINGS BEFORE INTEREST AND TAXES, DEPRECIATION AND AMORTISATION (EBITDA) 63.2 mio EUR

+95 % 2022/2021 +101 % 2022/PLAN ²⁰²²

EBITDA margin 40.7 % +44 % 2022/2021

+56 % 2022/PLAN ²⁰²²

RETURN ON EQUITY (ROE) 17.5 %

+150 % 2022/2021 +169 % 2022/PLAN ²⁰²²

NET FINANCIAL DEBT/ EBITDA 0.2

-0.4 2022/2021 -0.6 2022/PLAN ²⁰²²

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 and taxes(EBIT)	Earnings before interest and taxes(EBIT) = difference between operating income and costs.	It shows the performance (profitability) of the company's operaions from the core business.
Earnings before interest and taxes, depreciation and amortisation (EBITDA)	Earnings before interest and taxes, depreciation and amortisation (EBITDA) = Earnings before interest and taxes(EBIT) + amortisation.	A measure of the company's financial performance and an approximation of the cash flow from operations. Shows the ability to cover write-downs and other non-operating expenses.
Added value	Added value = net revenue from sale + capitalised own products and own services + 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)	Return on sales (ROS) = Earnings before interest and taxes(EBIT) / net revenue from sale.	Shows the operational efficiency of the company.
Return on equity (ROE)	Return on equity (ROE) = net income/ shareholder equity.	Shows the management success in increasing the value of the company for the owners or shareholders.
Return on assets (ROA)	Return on assets (ROA) = net income / average total assets.	Shows how a company manages its assets.
EBITDA margin	EBITDA margin = Earnings before interest, taxes, depreciation and amortisation (EBITDA) / net revenue from sale.	Shows the business performance and profitability of market activity in percent. It is used to compare the company performance with other companies.
EBITDA margin from market activity	EBITDA margin from market activity = Earnings before interest and taxes, depreciation and amortisation (EBITDA) / net revenue from sale from market activity.	Shows the business performance and profitability of market activity un percent.
Net financial debt/EBITDA	Net financial debt/EBITDA = (Financial liabilities – cash and cash equivalents) / EBITDA.	Shows indebtedness and profitability of a company in order to assess the company's ability to settle its financial debts in the future 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

Key performance indicators

The key performance indicators of Luka Koper, d. d., and the Luka Koper Group in January - June 2022, v primerjavi z letom 2021

		Luka Koper, d. d.		Luka Koper Group
Items	1 – 6 2022	1 – 6 2021	Index 2022/ 2021	1 – 6 2022	1 – 6 2021	Index 2022/ 2021
Net revenue from sale (in EUR)	153,545,468	112,703,017	136	155,120,821	114,721,796	135
Earnings before interest and taxes (EBIT) (in EUR)	46,895,377	17,416,741	269	47,810,943	17,727,521	270
Earnings before interest and taxes (EBITDA) (in EUR)	61,875,735	31,702,747	195	63,153,248	32,367,634	195
Net profit or loss (in EUR)	41,073,315	15,752,376	261	41,518,460	15,424,385	269
Added value (in EUR)	104,119,614	71,523,547	146	108,864,372	75,492,781	144
Investment expenditure (in EUR)	31,635,603	29,937,050	106	31,883,916	30,126,781	106
Maritime throughput (v ton)	11,746,070	10,368,530	113	11,746,070	10,368,530	113
Number of employees	1,580	1,528	103	1,742	1,691	103

Indicators	1 – 6 2022	1 – 6 2021	Index 2022/ 2021	1 – 6 2022	1 – 6 2021	Index 2022/ 2021
Return on sales (ROS)	30.5%	15.5%	197	30.8%	15.5%	199
Return on equity (ROE)3	18.7%	7.7%	243	17.5%	7.0%	250
Return on assets (ROA)4	13.3%	5.4%	246	12.6%	5.0%	252
EBITDA margin	40.3%	28.1%	143	40.7%	28.2%	144
EBITDA margin from market activity	41.3%	29.1%	142	41.7%	29.1%	143
Financial liabilities/equityl	18.7%	22.5%	83	17.4%	20.8%	84
Net financial debt/EBITDA5	0.4	1.0	40	0.2	0.6	33

Items	30.6.2022	31.12.2021	Index 2022/ 2021	30.6.2022	31.12.2021	Index 2022/ 2021
Assets (in EUR)	642,832,574	596,417,076	108	680,677,004	634,103,258	107
Equity (in EUR)	448,716,585	432,176,305	104	483,845,158	466,965,328	104
Financial liabilities (in EUR)	84,010,554	72,645,327	116	83,960,496	72,605,452	116

³ Indicator is calculated on the basis of annualised data.

⁴ Indicator is calculated on the basis of annualised data.

⁵ Indicator is calculated on the basis of annualised data.

The key performance indicators of Luka Koper, d. d., and Luka Koper Group in January – June 2022, compared to the plan 2022

		Luka Koper, d. d.		Luka Koper Group
Items	1 – 6 2022	Plan 1 – 6 2022	Index 2022/ plan 2022	1 – 6 2022	Plan 1 – 6 2022	Index 2022/ plan 2022
Net revenue from sale (in EUR)	153,545,468	119,444,156	129	155,120,821	120,310,176	129
Earnings before interest and taxes (EBIT) (in EUR)	46,895,377	15,880,961	295	47,810,943	16,191,830	295
Earnings before interest, taxes and amortisation (EBITDA) (in EUR)	61,875,735	30,606,924	202	63,153,248	31,373,156	201
Net profit or loss (in EUR)	41,073,315	15,469,747	266	41,518,460	15,252,886	272
Added value (in EUR)	104,119,614	71,215,671	146	108,864,372	75,444,793	144
Investment expenditure (in EUR)	31,635,603	19,374,208	163	31,883,916	19,638,008	162
Maritime throughput (in tons)	11,746,070	10,623,073	111	11,746,070	10,623,073	111
Number of employees	1,580	1,594	99	1,742	1,758	99

Indicators	1 – 6 2022	Plan 1 – 6 2022	Index 2022/ plan 2022	1 – 6 2022	Plan 1 – 6 2022	Index 2022/ plan 2022
Return on assets (ROS)	30.5%	13.3%	229	30.8%	13.5%	228
Return on equity (ROE)6	18.7%	7.1%	263	17.5%	6.5%	269
Return on assets (ROA)7	13.3%	5.1%	261	12.6%	4.9%	257
EBITDA margin	40.3%	25.6%	157	40.7%	26.1%	156
EBITDA margin from market activity	41.3%	27.0%	153	41.7%	27.5%	152
Financial liabilities/equity	18.7%	19.8%	94	17.4%	14.2%	123
Net financial debt/EBITDA8	0.4	1.2	33	0.2	0.8	25

Items	30.6.2022	Plan 30.6.2022	Index 2022/ plan 2022	30.6.2022	Plan 30.6.2022	Index 2022/ plan 2022
Assets (in EUR)	642,832,574	617,944,721	104	680,677,004	633,244,099	107
Equity (in EUR)	448,716,585	441,692,410	102	483,845,158	473,909,538	102
Financial liabilities (in EUR)	84,010,554	87,418,042	96	83,960,496	67,307,820	125

⁶ Indicator is calculated on the basis of annualised data.

⁷ Indicator is calculated on the basis of annualised data.

⁸ Indicator is calculated on the basis of annualised data.

3 Presentation of Luka Koper Group

3.1 Profile of the company Luka Koper, d. d., as of 1 July 2022

Company name	LUKA KOPER, pristaniški in logistični sistem, delniška družba
Short company name	LUKA KOPER, d. d., Vojkovo nabrežje 38, 6000 Koper – Capodistria
Registered office	Koper
Business address	Koper, Vojkovo nabrežje 38, 6000 Koper/Capodistria
Company's legal form	Public limited company
	Phone: 05 66 56 100
	Fax: 05 63 95 020
	Email: portkoper@luka-kp.si
	Website: www.luka-kp.si
	Sustainable development: http://www.zivetispristaniscem.si
Company's registration	District Court of Koper, application No. 066/10032200
Company's registration number	5144353000
Tax number	SI 89190033
Issued share capital	58.420.964,78 evra
Number shares	14.000.000 of ordinary no par value shares
Share listing	Ljubljana Stock Exchange, Prime Mark
Share ticker	LKPG
President of the Management Board	Boštjan Napast
Member of the Management Board	Robert Rožac
Member of the Management Board	Nevenka Kržan
Member of the Management Board – Labour Director	Vojko Rotar
President of the Supervisory Board	Franci Matoz
Luka Koper, d.d. core activity	Seaport and logistic system and service provider
Luka Koper Group activities	Various support and ancillary services in relation to core activity

3.2 Luka Koper Group structure

The Luka Koper Group provides various services which acomplish comprehensive operation of the Port of Koper. The Luka Koper Group includes seven companies, namely the parent company and six subsidiaries.

Luka Koper Group as at 30 June 2022

• Controlling company Luka Koper, d. d.

- Subsidiary companies

• o Luka Koper INPO, d. o. o., 100 %
• o Adria Terminali, d. o. o., 100 %
• o Luka Koper Pristan, d. o. o., in liquidation, 100 %⁹
• o Logis-Nova, d. o. o., 100 %
• o Adria Investicije, d. o. o., 100 %
• o TOC, d. o. o., 68,13 %

Pridružene družbe

• Adria Transport, d. o. o., 50 %
• Adria Transport Croatia, d. o. o., 50 %, 100 % owned by Adria Transport, d. o. o.
• Adria-Tow, d. o. o., 50 %
• Adriafin, d. o. o., 50 %
• Avtoservis, d. o. o., 49 %

3.3 Corporate Management Board and Governance

3.3.1 Luka Koper, d. d. Management Board

As at 30 June 2022, Luka Koper, d. d., Management Board comprised the following members:

• Boštjan Napast, President of the Management Board, appointed on December 3, 2021 for a fiveyear term, he took office on the date of his appointment,
• Robert Rožac, Member of the Management Board, appointed on November 12, 2021 for a five-year term, he took office on November 16, 2021,
• Vojko Rotar, Labour Director, appointed on February 16, 2018 for a five-year term, he took office on the date of his appointment.

Changes in the composition of the Management Board:

On 22 April 2022, the Supervisory Board of Luka Koper, d. d., appointed Nevenka as a Member of the Management Board Kržan. She began her five-year term of office on July 1, 2022.

A presentation of Luka Koper, d. d., Management Board is available on the Comany's website https://lukakp.si/slo/vodstvo-druzbe-193.

⁹ Luka Koper, d. d., transferred the investment in the subsidiary Luka Koper Pristan, d. o. o., among assets held for sale, since in May 2021 the decision on the start of the regular liquidation proceeding of the subsidiary was adopted, The regular liquidation started on 15 September 2021.

3.3.2 Luka Koper, d. d., Supervisory Board

Luka Koper, d. d., Supervisory Board consists of nine members, six of whom are elected by the General Shareholders Meeting, and three from among employees by the Work Council. The Supervisory Board Member's term of office is foour years.

As at 30 June 2022, Luka Koper, d. d., Supervisory Board comprised:

Representatives of Shareholders:

Franci Matoz, President of the Supervisory Board Commencement of a four-year term: 2 July 2021 (34 Shareholders' Meeting)

Nevenka Črešnar Pergar, Deputy President of the Supervisory Board Commencement of a four-year term: 2 July 2021 (34 Shareholders' Meeting)

Andrej Koprivec, Member of the Supervisory Board Commencement of a four-year term: 2 July 2021 (34 Shareholders' Meeting)

Božidar Godnjavec, Member of the Supervisory Board Commencement of a four-year term: 2 July 2021 (34 Shareholders' Meeting

Tomaž Benčina, Member of the Supervisory Board Commencement of a four-year term: 7 June 2022 (35 Shareholders' Meeting)

Tamara Kozlovič, M.Sc., Member of the Supervisory Board Commencement of a four-year term: 22 August 2019 (32 Shareholders' Meeting)

Representatives of the Employees:

Rok Parovel, Member of the Supervisory Board Commencement of a four-year term: 13 September 2020 (34 Shareholders' Meeting– informing of shareholders)

Mladen Jovičić, Member of the Supervisory Board Commencement of a four-year term: 8 April 2021 (34 Shareholders' Meeting– informing of shareholders)

Mehrudin Vukovič, Member of the Supervisory Board Commencement of a four-year term: 19 January 2020 (33 Shareholders' Meeting– informing of shareholders)

External Member of the Audit Committee of the Supervisory Board:

Simon Kolenc, external Member of the Audit Committee of the Supervisory Board Appointed for the period from 12 July 2021 until revoked.

Changes in the composition of the Supervisory Board:

On 27 April 2022, the Company received the resignation statement of the Member of the Supervisory Board, Rado Antolovič, who resigned from the position of the Member of the Supervisory Board of Luka Koper, d. d., on te said date. The Shareholders' Meeting appointed Tomaž Benčina as a new Member of the Supervisory Board of Luka Koper, d. d., for a term of office of four years, with effecct from 7 June 2022.

On May 13, 2022, the Company received the resignation statement of the Memeber of the Supervisory Board, Tamara Kozlovič with a three-month notice period starting from 13 May 2022 which last till the date of appointment of a new (alternate) Member of the Supervisory Board resp. until the expiration of three months from the date of resignation.

3.4 Business development strategy

MISSION

Our reliable and advanced porty system supports global logistics solutions that can reach the heart of Europe, while meeting the needs of the economy and the most demanding customers.

VISION

Luka Koper as a leading port operator and global logistics solutions provider for the countries of Central and Eastern Europe.

VALUES

Luka Koper continued its activities to achieve the objectives set out in the Strategic Business Plan 2020–2025, increasing the throughput of containers to1.2 million container units (TEU) and cars na 0.9 million units. In addition to the Company's objectives and orientations, the Strategy outlines nine strategic projects, with which the Company will implement this strategic business plan. The projects include capacity expansions in both strategic commodity groups and the digitalisatoion of key processes, anotably in linking the entire logistics chain, and increasing port throughput.

In February 2021, the Government of the Republic of Slovenia adopted the Port Development Program 2021–2025, which enviages the spatial and infrastructural development of the port and the dynamics of implementing the plannned infrastructural arrangements at the conceptual level. According to the document, the next five years will be dedicated to increasing the capacity of the Koper cargo port by accelerating investment in increasing the number of berths and storage space and investing in road and railway infrastructure in the port.

The strategic business plan also envisges the development of the port by 2030, when Luka Koper, d.d. will have constructed a modern container terminal with a capacity of around 2 million container units (TEU). Luka Koper. With this document, Luka Koper has a clear development strategy, owing to which it can reasonably respect stable growth in the long term.

The development of the Port of Koper relies on the construction of a second Divača and Koper railway track, which began in 2021, and according to the information of the company 2TDK (concession holder for construcion and management of the second Divača–Koper railway track) will be operational in 2026. This implies that until the end of 2025, Luka Koper cannot expect any significant increase in railway capacitiy. In the meantime, the company and its stakeholders will be increasing the capacity ofthe existing railway line through organisational measures, infrastruktural adjustments and information technology measures.

The company has set itself the following objectives until 2025:

By exploting synergies in the logistics chain the logistics chain, acquiring new strategic markets, applying a renewed long-term and targeted commercial policy and ensuring a revenue structure targeted at higher valueadded groups, Luka Koper will increase its total operating revenues by by 24 percent by 2025.

With a focus on fully addressing the needs of its customers, Luka Koper, will increase the total transhipment to 27.3 million metric tons by 2025.

Luka Koper will invest funds in increasing the capacity and throughput of the port by 2025 to await the renewed twin track line ready, thus increasing the advantages and opportunities of this logistic route, while pursuing the goal of having at least 60 percent of tzranshipped quantities from the port of Koper transported by rail until the twin track is renovated, after which the share is increased to 70 percent.

Using new technologies, Luka Koper will carry out a digital transformation of key processes. This will achieve connectivity between all internal and external stakeholders in the logistics chain and increase the level of cost efficiency.

Luka Koper will ensure the conditions to encourage the employees to think innovatively thus ensuring that the set business goals are achieved.

Luka Koper will achieve the highest standardads of sustainable development according under the EU ECO Management and Audit Scheme – EMAS) and continue to reduce the Company's carbon footprint through energy efficiency improvement measures.

Considering the location of the port, a strategic agreement on coexistence and developement will be reached with the Municipality of Koper and the Municipality of Ankaran. The port being of strategic national importance, a consensus on developmement will be achieved with the State

4 Business report

4.1 Performance of the Luka Koper Group in January - June 2022

In the first half of 2022, the realised performance of the Luka Koper Group was successful and achieved business results were very good. All financial indicators are better than achieved ones in the first half of 2021. The maritime throughput exceeded the througput achieved in 2021 and namely in all cargo groups.

Maritime throughput

Cargo groups (in tons)	1 – 6 2022	1 – 6 2021	Index 2022/2021
General cargoes	700,720	561,794	125
Containers	5,032,138	5,057,344	100
Cars	639,676	541,030	118
Liquid cargoes	2,106,692	1,490,403	141
Dry and dry bulk cargoes	3,266,843	2,717,959	120
Total	11,746,070	10,368,530	113

Maritime throughput in tons per cargo groups in January – June 2022 incomparison with 2021

25-percent increase in the throughput of the cargo group general cargoes, in comparison with the equivalent period last year mainly resulted from the increased throughput of steel products and caotchouc. 20 percent lower export of timber was recorded in the maritime throughput of timber. However, the trend of containerisation of these goods has been increasing, which is reflected in the increase of additional services of containers stuffing.

In the first half of 2022, irregular arrivals of ships from Asia continued, which caused problems in the European ports and consequently deviations in regular land shipments for/from ports. Problems with ships delays mainly resulted from congestion of major Chinese ports. Despite the difficulties the European ports faced in the first half of 2022, the maritime throughput of containers in TEU was by 3 percent higher than in the equivalent period in 2021 and amounted to 526,500 TEU.

In January – June 2022, 367,332 cars were transhipped, which was 11 percent ahead on the equivalent period in 2021, mainly in the segment of the electric vehicles. This year, car manufacturers are still facing serious semiconductors shortage and other automotive parts shortage, also due to the war in Ukraine, which still causes certain stoppages in the production.

In the first half of 2021, the liquid cargoes terminal achieved 41 percent higher throughputin comparison with the same period last year, generated by all cargo groups, including the modest start of the resumed throughput of the jet fuel. Luka Koper Group achieved 37 percent increase in the throughput in comparison with January – June 2021.

The maritime throughput of dry and bulk cargoes in January – June 2022 increased by 20 percent in comparison with the equivalent period in 2021, especially in the throughput of industrial salt and other dry bulk cargoes. The increase of the throughput of the cargo group dry bulk cargoes and bulk cargoes was attributable to the throughput of additional quantities of coal.

In the whole structure of the maritime throughput predominate containers, of which share decresed by 7 percentage points in comparison with 2021. The share of the cargo group dry bulk and bulk cargoes increased by 2 percentage point in comparison with 2021, whilst the share of the cargo group liquid cargoes by 3 percentage point and the share of the cargo group general cargoes by 1 percentage point. The share of the cargo group cars remained unchanged.

Structure of the maritime throughput by cargo groupes (in tons)

4.1.1 Financial analysis of the performance of the Luka Koper Group

In the first half of 2022, the Luka Koper Groupachieved good business results, since the transhipped quantities of goods and financial results exceeded the results achieved in the first half 2021. The realised maritime throughput in the first half of 2022 was higher by 13 percent compared to 2021, the net revenue from sale was higher by 35 percent or by EUR 40.4 million. Higher achieved net revenue from sale resulted from higher net revenue from warehouse fees due to the extended retention time in warehouses. Higher revenue was also attributable to rising prices and the increased volume of throughput and additional services.

Consequently, higher net revenue from sale in the first half of 2022 resulted in higher earnings before interest and taxes (EBIT), amounting to EUR 47.8 million and exceeding the achieved EBIT in the first half of the previous year by 170 percent or by EUR 30.1 million.

In the first half of 2022, the operating expense increased by 11 percent or EUR 10.4 million in comparison with the first half of 2021. All types of costs increased. Within the cost of material, the cost of energy increased due to the higher consumption of motor fuel and higher electricity prices and costs of spare parts due to the higher volume of maintenance works. Due to the higher maritime throughput and higher net revenue from sale increased the cost of port services, transhipment fees and concession fees within the cost of services, higher were also IT costs. Labour costs increased due to the higher number of employees, higher payments for job performance and due to the adjustment of salaries for inflation, costs of amortisation were higher due to new purchases of assets, other operating expenses from value adjustments of trade receivables and higher costs of the compensation for the use of the construction land.

Share of operating expenses within net revenue from sale

Share of operating expenses within net revenue from sale amounted to 70.3 percent, which was 15.7 percentage point less than in 2021. In comparison with 2021, the share of all types of costs within the net revenue from sale decreased, the share of cost of material remained at the same level.

In the first half of 2022, the above explained factors impacted the net profit or loss in comparison with 2021, and which contributed to the higher earnings before interest and taxes (EBIT), higher financial revenue and higher results of associated companies also had a positive impact on the operating profit.

As at 30 June 2022, the balance sheet of the Luka Koper Group amounted to EUR 680.7 million, which was 7 percent or EUR 46.6 million ahead on 31 December 2021.

Within non-current assets of the Luka Koper Group increased property, plant and equipment to be acquired, the advances and value of other shares and interests measured at fair value decreased. Current assets increased due to trade receivables, following the increase of revenue and increase of cash and cash equivalents.

Structure of the Luka Group liabilities by maturity

The increase of equity of the Luka Koper Group in 2022 was the net effect of the transfer of net profit or loss of the period in the amount of EUR 16 million for the dividends payout of the controlling company in the amount of EUR 16 million, the entry net profit or loss for the period in the amount of EUR 41.5 million and negative changes of the surplus of revaluation of finance investments in the amount of EUR 8.7 million. Non-current liabilities with longterm provisions and long-term accrued costs and deferred revenue of the Luka Koper Group as at 30 June 2022 were lower as at 31 December 2021, since due to the regular transfer of principals from contractually agreed amortisations schedules to non-current liabilities from received borrowings decreased due to an agreement on the prepayment of one of non-current borrowings of the controlling company due to its refinancing, which will be conducted in July 2022 and recognition of the remaining principal amount among current liabilities from received loans. Consequently, current liabilities of the Luka Koper Group as at 30 June 2022 were higher compared to 31 December 2021. With early repayment of two bank borrowings and the refinancing with cheaper funds, the controlling company simoultaneously prolonged the maturity of this debt. Other financial liabilities also increased, notably, income tax liabilities and trade and other liabilities.

Financial liabilities of the Luka Koper Group as at 30 June 2022 amounted to EUR 84 million, which was 16 percent or EUR 11.4 million ahead on the balance as at 31 December 2021. Other current financial liabilities increased in the amount of EUR 16 million due to the dividends payout following the decision of the Shareholders Meeting held in July 2022. the debt of the Luka Koper Group decreased by EUR 4.4 million.

The liquidity of Luka Koper Group jis very good, which is shown in high levels of cash and cash equivalents balance, in addition to which the controlling company as at 30 June 2022 had also two loan contracts, according to which the funds were not drawn. Non drawn credit funds in the total amount of EUR 81.2 million are in the portion of EUR 21.2 million intended to the aforesaid refinancing of borrowings, whereas the remaining part in the amount of EUR 60 million to the financing of investments in fixed assets.

4.1.2 Comparison of the results achieved by the Luka Koper Group, in January - June 2022, in relation to the plan

In the first half of 2022, the Luka Koper Group exceeded the planned performance indicators. The maritime throughput exceeded the planned by 11 percent, net revenue from sale in the amount of EUR 155.1 million were by 29 percent or by EUR 34.8 million higher than planned.

Maritime throughput in tons per cargo groups in January - June 2022 in comparison with the plan for 2022

Cargo groups (v tonah)	1 – 6 2022	Plan 1 – 6 2022	Index 2022/plan 2022
General cargoes	700,720	612,300	114
Containers	5,032,138	5,004,746	101
Cars	639,676	573,427	112
Liquid cargoes	2,106,692	1,605,900	131
Dry and dry bulk cargoes	3,266,843	2,826,700	116
Total	11,746,070	10,623,073	111

Higher net revenue from sale than planned and higher other revenue than planned had a positive impact on the earnings before interest and taxes (EBIT) of the Luka Koper Group, which amounted EUR 47.8 million in the first half 2022 and was by 195 percent or by EUR 31.6 million higher than planned. Operating expenses of the Luka Koper Group in the first half of 2022 were by 4 percent higher than planned. All types of costs were higher than planned, the biggest increase were the cost of services and labour costs.

Net profit or loss of the Luka Koper Group in the first half of 2022 amounted to EUR 41.5 million and was by 169 percent or EUR 26.1 million higher than planned.

4.1.3 Investnment in non-financial assets

In the first half of 2022, the Luka Koper Group allocated EUR 31.9 million in the property, plant and equipment, property investments and intangible fixed assets, which is 6 percent ahead on the first half of 2021. In the first half of 2022, Luka Koper, d. d., allocated EUR 31.6 million for investments, which represents 99.2 percent of the Luka Koper Group investments.

The realisation of investments exceeded by 62 percent the planned values, since in June the purchase of two SPPX cranes was realised, which was otherwise planned in August 2022.

Investments in the property, plant and equipment, property investments and intangible assets of the Luka Koper Group

Major investments were made:

• The purchase of two SPPX cranes fort he needs of the container terminal,
• Continued extension of the Pier I completed constructionof the berthing place 7D, continued construction of the stacking areas,
• Upgrading of anti-dust system a atbvthe Dry bulk cargoes terminal,
• Started renovation of exterbnal handling areas warehouses 50f and 51A,
• Continued construction of a new external Truck terminal at the Sermin entrance,
• Purchase of three new E-RTG cranes for the needs of the Container terminal,
• Purchase of 5 new combined vehicles for the needs of the Container terminal,
• Purchase and installation of the OCR portal through two railway tracks,
• Purchase of a new 8 tons forklift for the needs of the General cargoes terminal,
• Manufacture of several new connections for za reefer containers.

Within the European project ACCESS2KOPERPORT of the programme CEF (Instrument for connecting Europe) the company takes part in the obtaining the funding for the construction of the berth 12 and RO-RO ramp in the Basin II, in the case of European project ERIK-PARKING the company plans the co-funding of the truck terminal at the Sermin entrance. In April resp. in June Projects were positively assessed and approved for co-financing, the signature of the contract, which is the legal basis for the drawing EU funds, is expected in coming months. Total co-financing value of both projects is EUR 21 million.

4.2 Significant events, news and achievements in January - June 2022

JANUARY

• − The company Volta Shipping Services headquarted in Dubai launched a new container line connecting Koper with one South Korean and four Chinese ports.
• − Within the European project COMODALCE, Luka Koper, d. d., purchased and introduced the system for the optical recognition of characters OCR (Optical character recognition) for the railway transport of conatiners to the terminal. The system can detect the numbers of containers and wagons, eventual damages and specific markings for dangerous goods recording then in digital form.
• − Luka Koper as investitor started the preparatory works for the arrangement of a new external truck terminal, located at the Sermin truck entrance, covering 5.2 ha of surface.
• − On January 21, 2022, Luka Koper, d. d., concluded a long-term syndicated loan agreement of EUR 60 million with the Nova Ljubljanska banka, d. d., and Banka Intesa Sanpaolo, d. d. The loan is intended to finance the company's investment activities and is based on a fixed interest rate with quarterly repayment installments that will last from mid-2023 to the end of 2031.

FEBRUARY

− The Russian Ukrainian conflict started. In analysing the consequences on the business performance, Luka Koper Group notes that its exposure to Russia and Ukraine is relatively small, since the volume of throghput destined for the markets of Ukraine and Russia is insignificant. The Luka Koper roup doest not have direct financial exposure to Russia, Ukraine and Belarus, whilst indirect impacts on its investment portfail may be expected due to developments in financial markets.

MARCH

• − Luka Koper, d.d. started the construction of a multi-purpose warehouse on the area of 2,800 square metres on the Pier II. The warehouse will be built for the storage of bulk materials, mainly rolled sheet metal in coils.
• − At the end of March 2022, a decree of the Government of the Republic of 2022 extended the port concession area on the plots of landfills 6A and 7A in the rear areas of the basin III. This increased the concession area by 11.6 hectares to total surface of 353 hectares. In the future the area will be arranged into storage areas, mainly for the car segment.
• − In March 2002, Luka Koper set a new monthly record of containers throughput (TEU) at the container terminal.

APRIL

• − On 22 April 2022, the Supervisory Board of Luka Koper, d. d., appointed Nevenka Kržan as a Member of the Mangement Board. She will begin the five-year term on 1 July 2022.
• − On its session held on April 22, 2022 the Supervisory Board discussed and adpoted several relevant decisions related to the expansion and the construction of additional transhipment and storage capacities. In most cases, these are investments in the area of the Container terminal, which represent a new development cycle of this the most important strategic cargo group. The Supervisory board approved the project study which envisages EUR 248 million investments by 2030 in the increase of the capacity ofvthe Container terminal to 1.75 million TEU/yearly. These comprise the construction of the additional operational quayside and stacking areas on the northern side of the Pier I, purchase of additional quayside cranes and the extension of the terminal railway tracks, enlargement of storage capacities for containers in the hinterland of the terminala and the purchase of the additional equipment.
• − On 25 April 2022, Luka Koper, d.d. concluded a long-term syndicated loan agreement of EUR 36.1 million with the Nova Ljubljanska banka, d. d., and Banke Intesa Sanpaolo, d. d. The loan is intended for refinancing a portion of existing long-term loans, thereby lowering the interest margin and extending the loan repayment deadline. The loan is based on a variable interest rate with quarterly payment instalments, with the final trepayment deadline in April 2032
• − On 27 April 2022, the company received a resignation statement from the member of the Supervisory Rado Antolovič, who resigned from the position of the member of the Supervisory Board of Luka Koper, d. d., on the aforesaid date.
• − One of two new container cranes was delivered in the Port of Koper.The cranes are super post-panamax and the same in dimensions and technical characteristics to the existing ones, purchased in 2017. The crane weighes a little more than 1.200 tons, it has an outreach of 65 metre and 24 container rows.

MAY

• − On 3 May 2022 a convocation of 35 Shareholders' Meeting of Luka Koper, d. d., which will be held on 6 June 2022 was published.
• − The second new container crane, type super post-panamax, was delivered in the Port of Koper. Shortly, 11 cranes in total will be in use at the container quayside.
• − On May 13, 2022, the Company received the resignation statement of the Member of the Supervisory Board Tamara Kozlovič with three-month notice, as the period from May 13, 2022 to the appointment of a new (alternate) Member of the Supervisory Board resp.until the expiration of three months from the date of the resignation.
• − By obtaining the use permit for the last section of the newly constructed extension of the Pier I, Luka Koper finalised one of the largest individual investments in recent decades.

JUNE

• − On June 6, 2022, 35th General Meeting of Shareholders of Luka Koper, d. d. was held. At the meeting, the shareholders decided that:
  • o The portion of the of the distributable profit totalling EUR 15,960,000.00 is to be used for the dividend pay-out in the gross amount of EUR 1.14 per ordinary share, the residual amount of accumulated profit totalling EUR 13,632,319.96 is to remain unappropriated.
  • o Approved the report on the remuneration of the members of the Company's Managament and Supervisory Board in 2021,
  • o grant discharge to the Mangement Board and the Supervisory Board for 2021,
  • o took note of the resignation statement of the Member of the Supervisory Board Rado Antolovič, Ph.D.
  • o elect Tomaž Benčina as the Member of the Supervisory Board of Luka Koper, d. d., for a period of four years,
  • o took note of a written report on the judicial proceedings against former Members of the Management Board and Members of the Supervisory Board.

4.3 Relevant post-balance events

There were no significant events after the end of the period.

4.4 Risk management and opportunities

4.4.1 Explanatory note to the Coronavirus SARS-CoV-2 (COVID-19) outbreak

COVID-19 outbreak affected the global economy and logistics flows. In Slovenia on 12 March 2020, the Government of the Republic of Slovenia first declared the epidemic of COVID-19 which lasted till 1 June 2020, secondly was declared on 18 October and lasted till 15 June 2021. The Luka Koper Group appointed a working group, which from the beginning of the pandemic proposed the adoption of several measures for the protection of people and minimisation of the pandemic consequences. Thanks to the adopted measures, the risk is managed up to an acceptable level, nevertheless due to unpredictibable situations, it is closely monitored. The infections caused short-term absences of the employees, mainly in the first two months of 2022, which not resulted in major negative effects on the company's business performance. Work processes run smoothly.

4.4.2 Impact of Russia-Ukraine conflict on the performance of the Luka Koper Group

The Russian-Ukraine conflict has no relevant impact on the Company's strategic directions and goals. Given the encouraging business results in the first half of 2022 , it is assumed that the planned values have been reached. Due to the small volume of business in the affected region and consequently lower exposure to the latter, adverse conditions will not materially impact the operating result. Low indebtedness, increased volume of business and favourable liquidity position, all Group's liabilities are settled at maturity. The Group does not intend to apply for State support measures. No impact was encountered on the Group's employeees, since in the affected regions, there are no Group's representatives.

The Luka Koper Group has no direct financial exposure to Russia, Ukraine and Bielorus. However, due to the developments in the financial markets in the first quarter of 2022, the value of stock exchange rates of securities measured at the fair value through the equity in the company/Group portfolio. of the Group decreased. A negative impact on the Company's financial accounts, which may be the effect of the war, was the change of the surplus from the change of the revaluation surplus of finance investments of companies exposed to countries related to the Russian-Ukrainian crisis measured through the equity, in the amount of EUR 10.7 million.

The Luka Koper Group estimates that the war in Ukraine may indirectly impact the Group's business performance in 2022. The war will affect supplying chains and therefore logistics flows, in which the company besides the perils sees also the opoportunities, also by rerouting certain goods which previously gravitated on the Black Sea, on Adriatic ports and import of other cargo groups in order to ensure energy self-sufficiency of the EU countries. The business impacted by the invasion on Ukraine, was the loss of throughput of the project cargo due to the Russian ownership of the customer's production. The estimated loss of revenue is not material for the company and was replaced by other cargo groups. Due to the difficulties in the supply of key car components, plants of certain car manufacturers may closeand consequently, cars transhipment through the Port of Koper may decrease. However, the impact in the first half of the year has not been detected yet. Problems in the automotive industry may be reflected in the throughput of other cargo groups, related to the car manufacturing. A negative impact may arise as effect of export restrictions of specific commodity groups from Europe due to ensuring yselfsufficiency.Currently, it is not possible to predict the exact impact of the war on the operating result. However, based on currently available information, the Company does not expect a long-term impact on its operations.

Current trends in energy, raw materials and food markets affected by the war in Ukraine, show additional inflationary pressures in international environment. Also the Luka Koper Group will face inflationary pressures and thereby higher operating costs. The estimation of the future impact of the Russian invasion o Ukraine was made on the basis of assumptions that the conflict would not expand in other areas and that it would not last long. In case of a protracted conflict, this could be reflected in more pronounced increase of energy and food commodities and long-term high inflation. The Group has been implementing the following action in order to manage the negative effects:

• Luka Koper, d. d., had concluded a contract for the supply of petroleum derivatives until mid-2023. The contract lays down, that the price of petroleum products is established on the basis of price quotations and fixed margin.
• The supply of the electricity was contracted with the supplier, with which the company contracted leased quantities and determined prices for the period until the end of 2024. A tender of the supply of the

electricity in the period from 2025 to 2026, has also been published in the period from 2025 to 2026, with which the company will manage the risk to an accceptable level.

• Due to longer delivery times, the stocks of critical material were adequately increased.
• As at 30 June 2022, 46% Luka Koper, d.d. loan agreements were on the basis of a fixed interest rate. Additionally, the company has available undrawn credit lines in the amount of EUR 60 million at fixed interest rate.

We disclose more about the management of financial risks in the chapter 5.4 AdditionalNotes to the Sttement of Financial Position.

Since the out break of the crisis, responsible and competent staff for IT security pay additional attention to the monitoring of the state and conditions in the comoany's information environment and implement measures to ensure availability, confidentiality and integrity of information assets, and notably:

• egular inspection and upgrading of server and communication infrastructure
• Regular inspection and updating of application solutions
• Regular monitoring of access rights
• Use of multi-factor authentication
• Protection against DDOS attacks
• Control over privileged users
• Regular raising of awareness among users

In order to prevent direct threats of the Russian invasion on Ukraine, we intensified the monitoring of IT security incidents.

4.4.3 Other risks

After the war outbreak in Ukraine, there is evidence a slowdown in the economic growth in the Euro zone, forecasts of international institutions for 2022 have deteriorated considerably in the last forecasts, but above all they significantly increased the risks for longer period of high inflation. Due to rising global prices of raw materials (steel, iron ) and bottlenecks in supply chains, the price of non-industrial goods has been rising Inflation trends and expectations are reflected mainly in the following segments – increase in costs of material (fuel, electricity), labour costs and costs of services and increase of the value of planned investments, both for investments for equipment and infrastructure It is expected that energy prices and raw material prices will remain high for a long period of time.

On the initiative of several initiators, thenConstitutional Court ruled on consitutionality and legality of the Decree on limit values for environmental noise indicators and complaints on the i fringement of public participation in the process of adopting the Decree in accordance with Article 34.a of the Environmental Protection Act (ZVO-1) and found that certain legal requirements were not respected. It imposed to the Government to remedy the unconstituonality within one after in the publication in the Official Gazzette of the Republic of Slovenia, so as to ensure the adequate public participation in the procedure of adopting the execution proceeding, by which it will reregulate noise threshold values, regulated by the Decree. This represents a risk for Luka Koper, d.d., and namely that a further examination of the Decree on limit values for environmental noise indicators, ships would be reclassified as the source of noise in the port and established lower threshold values. The company will be actively involved in a drafting and adoption of the Decree with all stakeholders.

Due to a prolonged drought and extremely high temperatures has been facing the shortage of the potable water, which make life hard for inhabitants and impacts the operations of economic operators in the region. Luka Koper, d.d., as sustainable and socially responsible company, responded to the crisis by raising the awareness among the employees and adoption of actions forvthe reduction of water consumption for non-emergency consumers yet prior the official calls of the local comunity. Ensuring the potable water supply is of key importance for smooth operation of the port as a part of the critical infrastructure, since besides ensuring the fire safety and smooth supply chain, we provide the transhipment and storage of perishable goods and livestock.

The Group has been facing commercial risks, originating from highly competitive environment and the entry of shipping and logistic companies in the ownership of the neighbouring ports, which may affect the direction of a part of the throughput. Besides that, the neighbouring ports have been paying a lot of attention to the enhacing of competitiveness in rail connections. In recent years, specific storage capacities were developed in the vicinity of the Port of Koper, where mostly the forwarding agencies have been providing CFS services. 10 . The latter can represent

¹⁰ CFS – container stuffing/unstuffing operations

a strong competition, primarily in the segment of stuffing and unstuffing of containers. On 7 January 2021, the Hafen und Logistik AG (HHLA) completed the acquisition of 50.01 share of the company Piattaforma Logistica in the port of Trieste. The transhipment in the segment of general cargoes, RO-RO and containers will be carried out by the company HHLA PLT Italy. The Board of Directors of the Port Authority of Rijeka decided that the APM Terminals/Enna Logic, owned by the shipping company A.P. Moller – Maersk will be the concessionaire of the container terminal for the next 50 years.

The main strategic risks originating from the external environment, remain the uncertainty about the completion of the construction of the second rail track and the obsolete, unsufficient capacity of the existing rail track, which may jeopardize further throughput growth also till the construction of the second rail track. In 2021, the working group, which started to implement actions towards the improvement of the IT support, implementation of the infrastructure interventions and organizational changes in the railway segment.

In 2022, Luka Koper, d. d., will continue the implementation of some investment projects, focused primarily on the increase of capacities of the Container terminal.

4.5 Trading inLKPG

The share of Luka Koper, d. d., identfied as LKPG, is listed in the first quotation of Ljubljana Stock Exchange. As at 30 June 2022, the share ended its trading with 3 percent lower value than in the comparable period last year. On the last trading day of the first half of 2022, the LKPG amounted to EUR 24.10 per share.

In the first half of 2022, the ownership structure of Luka Koper, d. d., slightly changed. As at 30 June 2022, 8,822 shareholders were registered in the register, which was 355 less than in 2021. The Republic of Slovenia. Is the company's major shareholder.

Shareholder	Number shares 30.6.2022	Percentage stake 30.6.2022 in %	Number shares 30.6.2021	Percentage stake 30.6.2021 in %
Republic of Slovenia	7,140,000	51.00	7,140,000	51.00
Slovenski državni holding, d. d.	1,557,857	11.13	1,557,857	11.13
Kapitalska družba, d. d.	696,579	4.98	696,579	4.98
Municipality of Koper	439,431	3.14	439,159	3.14
Citibank N.A. – fiduciary account	300,274	2.14	388,443	2.77
Zagrebačka banka, d. d. – fiduciary account	160,424	1.15	113,730	0.81
OTP Banka, d. d. – fiduciary account	158,398	1.13	28,131	0.20
Hrvatska poštanska banka, d. d. – fiduciary account	150,232	1.07	150,962	1.08
Raiffeisen Bank International AG (RBI)	141,119	1.01	129,189	0.92
NLB skladi – Slovenija mešani	113,859	0.81	105,014	0.75
Total	10,858,173	77.56	10,749,064	76.78

Ten largest shareholders in Luka Koper, d.d. as at 30 June

4.5.1 Trading in LKPG

In the first half of 2022, the average daily price of Luka Koper, d. d., stood at EUR 24.67, whilst its overall value fluctuated between EUR 22.80 and EUR 26.40. The highest daily price was EUR 26.20, the lowest EUR 22.60. As at 30 June 2022, the market capitalisation of Luka Koper, d.d. amounted to EUR 337,400,000.

There were 1.213 transactions and block trades with aggregate value of EUR 9,960,960, whereby 397,063 shares changed ownership. In the first half of 2022, the SBITOP Index decreased by 11.72 percent.

Changes in the daily LKPG share and daily turnover in January – June 2022

Relevant data on LKPG

	1 – 6 2022	1 – 6 2021
Number of shares	14,000,000	14,000,000
Number of ordinary shares no par value shares	14,000,000	14,000,000
Closing price as at 30.6. (in EUR)	24.10	24.80
11 Book value of shares as at 30.6. (in EUR)	32.05	29.53
Ratio between average weighed price in avce (P/B)12	0.75	0.84
13 Average market price (in EUR)	25.09	20.60
14 Average book value of share (in EUR)	31.57	29.90
Ratio between average weighed market and average book value of share	0.79	0.69
15 Net earning per share (EPS) (in EUR)	5.87	2.25
Ratio between market price and earnings per share (P/E)16	4.11	11.02
17 Market capitalisation as at 30.6. (in mio EUR)	337.40	347.20
Turnover – all transactions in January – June (in mio EUR)	9.96	7.15

¹¹ Book value of share = equity / number shares.

¹² Ratio between market price and book value of share (P/B) = closing share price / book value of share.

¹³ Weighted average market price is calculated as a ratio between total value of LKPG stock exchange transaction and the

aggregate number of LKPG shares traded across the period. ¹⁴ Average book value of the LKPG is calculated on the basis of average monthly ratio between equity and number of ordinary shares.

¹⁵ Earnings per share (EPS) = net profit or loss / number shares.

Indicator is calculated on the basis of annualised data.

¹⁶ Ratio between the market price and earnings per share (P/E) = closing share per price / earnings per share (EPS). Indicator is calculated on the basis of annualised data.

¹⁷ Market capitalisation = closing share price * number of shares.

4.5.2 Number of LKPG shares by the Supervisory Board and Management Board Members

	Delničar	Lastništvo 30. 6. 2022
Supervisory Board	Nevenka Črešnar Pergar, Deputy Chairman of the Supervisory Board	570
	Tamara Kozlovič, Member of the Supervisory Board	94
	Rok Parovel, Member of the Supervisory Board	8

As at 30 June 2022, other members of the Supervisory Board and Members of the Management Board of Luka Koper, d. d., did not own company's shares.

4.5.3 Treasury shares, authorised capital, conditional capital increase

As at 30 June 2022, Luka Koper, d. d., held no treasury shares. The applicable Articles of association do not provide for categories of authorised capital up to which the Management Board could increase the share capital. The company had no basis for the conditional increase in the share capital.

4.5.4 Rules on restrictions and disclosure on trading with company's shares and shares of related parties

In compliance with Ljubljana Stock Exchange recommendations Luka Koper, d. d., adopted the Rules on trading with issuer's shares. These rules represent an additional assurance on equal information to all interested public on relevant business events in the company and are important in strenghtening the trust of investors and the corporate reputation. The purpose of the Rules is to enable the persons to trade in shares of Luka Koper, d.d. and to prevent any possible tradig based on insider information. At the same time, the Rules enable mandatory reporting in accordance with the law on the sale and purchase of company's shares to the Securities Market Agency.

4.6 Sustainable development

The Port of Koper is embedded in the urban environment, in the hinterland borders Škocjan Bay protected area. Therefore, the care for the quality of people's life and the protection of the nature is emphasized in all development documents and Company' key policies. Quite a while ago, the company integrated the sustainable development principles in its business operations and strategic orientations, whilst in the Social Responsibility and Sustainable Development Strategy, adopted in the beginning of 2021, set the objectives it will strive to achieve in cooperation with local and institutional stakeholders taking into account the best international practices.

At its meeting in April, the Supervisory Board approved the plan for the construction of the specialised warehouse for general cargoes, on the roof of which is also projected the installation of the photovoltaic power plan, which will jointly with other planned photovoltaic facilities in the port, accelerate the energy transition with objective to increase the share of self-sufficiency with renewable energy sources to 23 percent.

Highlights of the first half of 2022

• The company published the call for sponsorhips and donations from the Living with the Port fund, destined primarily to the support of minor local projects.
• Assessment in compliance with the requirements of EMAS directive, ISO 50001, ISO 14001, ISO 45001 standard and GRI was successfully performed.
• Due to the increased volume of work, 40 recruitments were realised in the Luka Koper Group in the first half of 2022.
• There was no serious injury in the reported period.
• Underwater noise measurements started.
• Remittance of funds ce to the Municipality of Koper within the annnual funding from the agreement on the implementation of the mitigation measures for the reduction of noise.

4.6.1 Care for employees

The employees of the Luka Koper Group with their knowledge, energy and eagerness prove their committment to the working environment and they co-create the comopany' future in partnership.

Number of employees in the Luka Koper Group

	30. 6. 2022	30. 6 2021	Index 2022/2021
Luka Koper, d. d.	1,580	1,528	103
Luka Koper INPO, d. o. o.	131	131	100
Luka Koper Pristan, d. o. o.18	/	3	/
Adria Terminali, d. o. o.	26	24	108
TOC, d. o. o.	5	5	100
Luka Koper Group19	1,742	1,691	103

Number of agency workers

	30. 6. 2022	30. 6. 2021	Index 2022/2021
Luka Koper, d. d.	356	381	93

¹⁸ Luka Koper, d. d., reclassified the investment in the subsidiary Luka Koper Pristan, d. o. o., the assets held for sale, since in may 2021 a decision on the initiation of the procedure of regular liquidation was adopted. The regular liquidation started on 15 September 2021.

¹⁹ Subsidiaries of the Luka Koper Group, Logis-Nova, d. o. o., and Adria Investicije, d. o. o., are not shown in table, since they do not have any employees.

	Number of new recruitments		Number of departures		Turnover rate (in %)20
	1 – 6 2022	1 – 6 2021	1 – 6 2022	1 – 6 2021	1 – 6 2022	1 – 6 2021
Luka Koper, d. d.	32	5	29	12	1.8	0.8
Luka Koper Group	40	9	35	15	2.0	0.9

Comparison between recruitment, termination and turnover rate

Number of hours of trainings / employee

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Luka Koper, d. d.	16	9.9	9,2	108
Luka Koper Group	/	9.1	8,5	107

Number of injuries at work/ million hours worked

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Luka Koper, d. d.	13	18.6	20.7	90

In examining the type of injuries it was established that that these were mainly minor injuries. The majority of these injuries are suffered by the most exposed group of dock workers. By number stood out punches to different parts of body due to the loss of control of an object or uncontrolled movement of an object. To a certain extent, a number of injuries is also affected by the throughput growth.

Number of serious injuries

.

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Luka Koper, d. d.	0	0	0	/

Number of collisions in the internal transport / million hours worked

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Luka Koper, d. d.	25	11.6	22.6	51

Number of collisions on the port handling areas / million hours worked

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Luka Koper, d. d.	35	57.1	21 /	/

The number of collisions on the handling areas is slightly higher than the set target, which is to some extent affected by the considerable occupany of storage areas and thus the additional intertwining of handling areas and road traffic.

²⁰ Fluctuation calculation method = number of departures/(previous number of employees + new recruitments) x100

²¹ Data monitoring was introduced in 2022, therefore the comparison with previous periods is not possible.

4.6.2 Natural environment

Luka Koper, d. d., has always been concerned for improving the qulaity of life in the entire area in which the port is embedded and is aware of the vulnerability of the natural environment. Realizing that the port has an impact on the environment, Luka Koper has committed itself to sound environmental management, wishing to preserve it for future generation. Monitoring and minimising environmental impacts are part of regular work activities, wherby Koper, d. d., cooperates with competent professional institutions.

Quantity of health hazardous dust particles PM10 (in μg/m³ )

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Ankaran - Rožnik	<30	18	15	120
Bertoki	<30	25	18	139
Koper – Cruise terminal	<30	17	16	106

Average value of dust deposits (in mg/m²day)

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Average value of dust deposits	<200	126	118	107

Share of sorted separately collected waste (in %)

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Share of sorted separately collected waste	92	92	93	99

Average noise levels (v dB)

	1 – 6 2022	1 – 6 2021	Index 2022/2021	Threshold values za 2022
Eastern periphery (Bertoki)	LD =38	LD =39	97	65
	LV =36	LV =37	97	60
	LN =34	LN =34	100	55
	LDVN =41	LDVN =42	98	65
Northern periphery (Ankaran)	LD =42	LD =42	100	65
	LV =41	LV =41	100	60
	LN =41	LN =40	103	55
	LDVN =47	LDVN =46	102	65
Southern periphery (Koper)	LD =53	LD =53	100	65
	LV =53	LV =52	102	60
	LN =52	LN =50	104	55
	LDVN =58	LDVN =57	102	65

Legend: L^D – daily noise level, L^V – evening noise level, L^N – night noise level, LDVN – noise level day – evening - night The data in the table represent noise without ships and in front of the first buildings outside the harbor.

Specific consumption of energy and water per handled ton of the total throughput²²

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Consumption of electric energy (kWh/t)	0.7918	0.6876	0.7900	87
Motor fuel consumption (l/t)	0.1214	0.1245	0.1180	103
Water consumption (l/t)	4.9000	2.2199	2.4200	45

In the first half of 2022, the target was not achieved. The absolute motor fuel consumption was higher by 12.6 percent in comparison with the same period in 2021 at13-percent higher maritime throughput. 3 percent higher specific consumption of the target value resulted from the higher motor fuel consumption at the Container terminal due to the occupancy and congestion of storage areas and the use of alternative, more dispersed storage areas of other terminals.

Number of pollutions outside the port aquarium

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Number pollution incidents	0	0	0	/

Inspection and internal measures in spatial interventions

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Number of measures	0	0	0	/

Fire safety

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Intervention time of the professional fire brigade for fire interventions and injuries	<8 min	2.97	2.95	101
Number of major industrial accidents	0	0	0	/
Number of unrealised inspection fire-safety decisions	0	0	0	/

4.6.3 Social environment

Social responsibility towards the local environment, on which the port activity has most impact, Luka Koper is demonstrated through the support of organised groups and individuals implementing projects or activities relevant for the quality of live of the inhabitants in the local area and namely in the field of sport, culture, ecology, science, education and humanitarian activity.

Sponsorships and donations (in thousand EUR)

	Annual target 2022	1 – 6 2022	1 – 6 2021	Index 2022/2021
Luka Koper, d. d.	1,127	642.2	512.5	125

²²Total throughput comprises maritime throughput, stuffing/unstuffing of containes and land throughput

5 Accounting report

5.1 Financial statements of Luka Koper, d. d., and Luka Koper Group

5.1.1 Income statement

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Revenue	153,545,468	112,703,017	155,120,821	114,721,796
Capitalised own products and services	61,739	58,303	61,739	58,303
Other income	808,837	788,988	1,610,979	1,538,369
Cost of material	-10,559,719	-7,610,028	-10,747,901	-7,786,307
Cost of services	-35,476,872	-30,484,835	-32,922,295	-29,100,402
Employee benefits expense	-41,781,677	-39,434,094	-45,238,294	-42,731,646 -14,640,113 -4,332,479
Amortisation and depreciation expense	-14,980,358	-14,286,006	-15,342,305
Other operating expenses	-4,722,041	-4,318,604	-4,731,801
Operating profit	46,895,377	17,416,741	47,810,943	17,727,521
Finance income	1,882,165	1,494,989	635,457	191,215
Finance expenses	-171,615	-146,447	-171,550	-146,626
Profit or loss from financing activity	1,710,550	1,348,542	463,907	44,589
Profit or loss of associates	0	0	917,932	698,101
Profit before tax	48,605,927	18,765,283	49,192,781	18,470,211
Income tax expense	-7,567,113	-3,027,920	-7,656,980	-3,060,839
Deferred taxes	34,501	15,013	34,029	15,013
Net profit from continuing operations	41,073,315	15,752,376	41,569,830	15,424,385
Net profit from discontinued operations	0	0	-51,370	0
Net profit for the period Net profit attributable to owners of the company	41,073,315 0	15,752,376 0	41,518,460 41,491,625	15,424,385 15,416,863
Net profit attributable to non-controlling interests	0	0	26,835	7,523
Net earnings per share	2.93	1.13	2.96	1.10

Notes to the financial statements are their integral part and shall be read in their conjunction.

.

5.1.2 Statement of other comprehensive income

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Profit for the period	41,073,315	15,752,376	41,518,460	15,424,385
Items not to be reclassified into profit/loss in future periods	-10,583,995	5,705,875	-10,700,983	5,822,864
Change in revaluation surplus of available-for-sale financial assets	2,010,958	-1,084,025	2,033,186	-1,106,255
Deferred tax on revaluation of available-for-sale financial assets	-8,573,037	4,621,850	-8,667,797	4,716,609
Total comprehensive income for the period	32,500,277	20,374,226	32,850,663	20,140,994
Total comprehensive income for the period owners of the company	32,500,277	20,374,226	32,823,828	20,133,471
Total comprehensive income for the period non controlling interests	0	0	26,835	7,523

In 2021, the Company/Luka Koper Group started the procedure of regular liquidation of the company Luka Koper Pristan, d. o. o. – in liquidation, the Company/Group recorded as discontinued operation. The discontinued operations in January – June 2022 had no impact on the Statement of other comprehensive income, therefore the Company/Group did not record this impact in the Statement of other comprehensive income.

5.1.3 Statement of financial position

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 dec 2021	30 Jun 2022	31 Dec 2021
ASSETS
Property, plant and equipment	443,096,878	425,978,241	455,764,076	438,877,277
Investment property	23,686,010	23,975,120	15,401,923	15,530,234
Intangible assets	1,053,217	1,250,530	1,149,012	1,372,176
Other assets	2,246,727	9,650,187	2,246,727	9,650,187
Shares and interests in Group companies	4,048,063	4,048,063	0	0
Shares and interests in associates	6,737,709	6,737,709	15,544,650	15,784,793
Other non-current investments	46,276,638	56,587,335	49,544,390	59,972,076
Loans given and deposits	872	1,717	6,422	7,260
Non-current operating receivables	39,991	39,991	39,991	39,991
Deferred tax assets	5,168,772	3,123,312	5,206,591	3,139,376
Non-current assets	532,354,877	531,392,205	544,903,782	544,373,370
Assets held for sale	485,000	485,000	257,825	340,807
Inventories	1,489,749	1,422,438	1,489,749	1,422,438
Deposits and loans given	1,667	1,619	1,667	1,619
Trade and other receivables	69,921,782	46,773,388	70,531,536	47,326,339
Cash and cash equivalents	38,579,499	16,342,426	63,492,445	40,638,685
Current assets	110,477,697	65,024,871	135,773,222	89,729,888
TOTAL ASSETS	642,832,574	596,417,076	680,677,004	634,103,258
EQIUTY AND LIABILITIES
Share capital	58,420,965	58,420,965	58,420,965	58,420,965
Capital surplus (share premium)	89,562,703	89,562,703	89,562,703	89,562,703
Revenue reserves	224,907,699	224,907,699	224,907,699	224,907,699
Reserves arising from valuation at fair value	21,119,583	29,692,618	21,369,005	30,036,801
Retained earnings	54,705,635	29,592,320	89,301,082	63,769,456
Equity of owners of the parent	448,716,585	432,176,305	483,561,454	466,697,624
Non-controlling interests	0	0	283,704	267,704
Equity	448,716,585	432,176,305	483,845,158	466,965,328
Provisions	19,142,807	19,150,740	19,746,756	19,754,689
Deferred income	29,833,104	28,878,641	31,088,230	30,137,376
Loans and borrowings	37,258,509	60,688,522	37,258,509	60,688,522
Other non-current financial liabilities	854,368	967,048	827,488	967,241
Non-current operating liabilities	107,258	106,025	147,497	143,693
Non-current liabilities	87,196,046	109,790,976	89,068,480	111,691,521
Liabilities (disposal group) held for sale	0	0	17,229	40,984
Loans and borrowings	29,565,601	10,521,175	29,565,601	10,521,175
Other current financial liabilities	16,332,076	468,582	16,308,898	428,514
Income tax liabilities	6,565,894	3,130,837	6,618,067	3,130,790
Trade and other payables	54,456,372	40,329,201	55,253,571	41,324,946
Current liabilities	106,919,943	54,449,795	107,763,366	55,446,409
TOTAL EQUITY AND LIABILITIES	642,832,574	596,417,076	680,677,004	634,103,258

5.1.4 Statement of cash flows

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	41,073,315	15,752,376	41,518,460	15,424,385
Adjustments for:
Amortisation/Depreciation	14,980,358	14,286,006	15,342,305	14,640,113
Reversal and impairment losses on property, plant and equipment, and intangible assets	22,798	69,711	22,798	69,895
Gain on sale of property, plant and equipment, intangible assets and investment property	-66,101	-179,168	-72,462	-179,184
Allowances for receivables	439,404	316,995	450,032	323,606
Collected written-off receivables and liabilities	-257,822	-237,981	-270,933	-238,480
Reversal of provisions	-2,975	0	-2,975	0
Finance income	-1,882,165	-1,548,047	-635,457	-191,215
Finance expenses	171,615	199,505	171,550	146,626
Recognised results of subsidiaries under equity method Income tax expense and income (expenses) from	0	0	-917,932	-698,101
deferred taxes	7,532,612	3,012,907	7,622,951	3,045,826
Profit before change in net current operating assets
and taxes	62,011,039	31,672,304	63,228,338	32,343,471
Change in other assets	7,403,460	-3,654,606	7,403,460	-3,654,606
Change in operating receivables	-23,306,888	-7,835,926	-23,325,801	-8,050,343
Change in inventories	-67,311	-51,815	-67,311	-51,814
Change in assets (disposal group) held for sale	0	-485,000	0	-373,738
Change in liabilities held for sale	0	0	0	79,300
Change in shares and interests in Group companies	0	485,000	0	0
Change in operating liabilities	-1,533,665	10,670,563	-1,749,888	10,244,394
Change in provision	-789	247,582	-789	236,924
Change in non-current deferred income	954,463	410,868	950,854	392,238
Cash generated in operating activities	45,460,309	31,458,970	46,438,863	31,165,826
Interest expenses	-128,443	-205,190	-128,378	-152,311
Tax expenses	-4,132,056	518,550	-4,169,703	476,920
Net cash flow from operating activities	41,199,810	31,772,330	42,140,782	31,490,435
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received	199,911	177,226	152,113	127,457
Dividends received and profit sharing - subsidiaries	127,018	308,723	0	0
Dividends received and profit sharing - associates	1,158,075	1,047,929	1,158,075	1,047,929
Dividends received and share of profits – other	27,836	14,169	137,183	63,758
companies
Proceeds from sale of property, plant and equipment, and intangible assets	66,332	216,929	72,693	220,640
Proceeds from sale of investment property	0	0	0	9,664
Proceeds from sale, less investments and loans given	798	1,050	798	71,415
Acquisition of property, plant and equipment, and intangible assets	-15,973,534	-36,877,750	-16,201,599	-36,572,802
Net cash flow used in investing activities	-14,393,564	-35,111,724	-14,680,738	-35,031,939
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from non-current borrowings	14,875,000	0	14,875,000	0
Repayment of non-current borrowings	-12,250,000	0	-12,250,000	0
Repayment of current borrowings	-7,010,588	-5,260,587	-7,010,588	-5,260,587
Payment of the leased asset	-183,585	-179,848	-220,696	-190,339
Net cash flow used in financing activities	-4,569,173	-5,440,435	-4,606,284	-5,450,926
Net increase in cash and cash equivalents	22,237,073	-8,779,829	22,853,760	-8,992,430
Opening balance of cash and cash equivalents	16,342,426	37,051,470	40,638,685	61,021,421
Closing balance of cash and cash equivalents	38,579,499	28,271,641	63,492,445	52,028,991

5.1.5 Statement of changes in equity

						Reserves arising on valuation at fair value
(in EUR)	Share capital	Capital surplus	Legal reserves	Other revenue reserves	Retained earnings	Investments	Actuarial gains/losses	Total equity
Balance at 31 December 2020	58,420,965	89,562,703	18,765,115	191,182,419	30,637,829	22,023,006	-1,640,830	386,889,959
Dividends paid	0	0	0	0	-15,960,000	0	0	-15,960,000
Changes of equity – transactions with owners	0	0	0	0	-15,960,000	0	0	-15,960,000
Profit for the period	0	0	0	0	15,752,376	0	0	15,752,376
Change in revaluation surplus of financial assets, less tax	0	0	0	0	0	4,621,850	0	4,621,850
Total comprehensive income for the period	0	0	0	0	15,752,376	4,621,850	0	20,374,226
Balance at 30 June 2021	58,420,965	89,562,703	18,765,115	191,182,419	30,430,206	26,644,856	-1,640,830	413,365,434
Balance at 31 December 2021	58,420,965	89,562,703	18,765,115	206,142,584	29,592,320	31,260,558	-1,567,938	432,176,307
Dividends paid	0	0	0	0	-15,960,000	0	0	-15,960,000
Changes of equity – transactions with owners	0	0	0	0	-15,960,000	0	0	-15,960,000
Profit for the period	0	0	0	0	41,073,315	0	0	41,073,315
Change in revaluation surplus of financial assets, less tax	0	0	0	0	0	-8,573,038	0	-8,573,038
Total comprehensive income for the period	0	0	0	0	41,073,315	-8,573,038	0	32,500,277

Balance at 30 June 2022 58,420,965 89,562,703 18,765,115 206,142,584 54,705,635 22,687,521 -1,567,938 448,716,585

5.1.6 Consolidated staement of changes in equity of the Luka Koper Group

			Reserves arising on valuation at fair value			Total equity of owners of
(in EUR)	Share capital	Capital surplus	Legal reserves	Other revenue reserves	Retained earnings	Investments	Actuarial gains/losses	the parent company	Non controlling interests	Total equity
Balance at 31 December 2020	58,420,965	89,562,703	18,765,115	191,182,419	62,982,776	22,382,100	-1,874,915	441,421,164	239,522	441,660,686
Dividends paid	0	0	0	0	-15,960,000	0	0	-15,960,000	-4,780	-15,964,780
Changes of equity – transactions with owners	0	0	0	0	-15,960,000	0	0	-15,960,000	-4,780	-15,964,780
Profit for the period	0	0	0	0	15,416,863	0	0	15,416,863	7,523	15,424,386
Change in revaluation surplus of financial assets, less tax	0	0	0	0	0	4,716,609	0	4,716,609	0	4,716,609
Total comprehensive income for the period	0	0	0	0	15,416,863	4,716,609	0	20,133,472	7,523	20,140,995
Balance at 30 June 2021	58,420,965	89,562,703	18,765,115	191,182,419	62,439,639	27,098,709	-1,874,915	445,594,636	242,265	445,836,901
Balance at 31 December 2021	58,420,965	89,562,703	18,765,115	206,142,584	63,769,456	31,769,273	-1,732,471	466,697,624	267,704	466,965,328
Dividends paid	0	0	0	0	-15,960,000	0	0	-15,960,000	-10,835	-15,970,835
Changes of equity – transactions with owners	0	0	0	0	-15,960,000	0	0	-15,960,000	-10,835	-15,970,835
Profit for the period	0	0	0	0	41,491,625	0	0	41,491,625	26,835	41,518,460
Change in revaluation surplus of financial assets, less tax	0	0	0	0	0	-8,667,797	0	-8,667,797	0	-8,667,797
Total comprehensive income for the period	0	0	0	0	41,491,625	-8,667,797	0	32,823,828	26,835	32,850,663
Balance at 30 June 2022	58,420,965	89,562,703	18,765,115	206,142,584	89,301,081	23,101,476	-1,732,471	483,561,453	283,703	483,845,158

5.2 Notes to Financial Statements

Luka Koper, d. d., port operator and logistic provider (hereinafter: Company), with registered office at Vojkovo nabrežje 38, Koper, Slovenia, is the controlling company of the Luka Koper Group (hereinafter: Group). Non-audited separate financial statements of Luka Koper, d. d. and non-audited consolidated financial statements of Luka Koper Group, for January – June 2022 resp. as at 30 June 2022. Consolidated financial statements refer to the financial statements of the controlling company, its subsidiaries and and corresponding results of associates.

Subsidiaries included in the consolidated financial statements:

• Luka Koper INPO, d. o. o., 100 %
• Adria Terminali, d. o. o., 100 %
• Luka Koper Pristan, d. o. o. in liquidation, 100 %
• TOC, d. o. o., 68,13 %

Associates included in the consolidated financial statements:

• Adria Transport, d. o. o., 50 %
• Adria Transport Croatia, d. o. o., 50 %, 100 % owned by Adria Transport, d. o. o.
• Adria-Tow, d. o. o., 50 %
• Adriafin, d. o. o., 50 %
• Avtoservis, d. o. o., 49 %

Companies excluded from the consolidated financial statements as at 30 June 2022:

• Logis-Nova, d. o. o., 100 %
• Adria Investicije, d. o. o., 100 %

The companies Adria Investicije, d. o. o., and Logis-Nova, d. o. o., were not included in the consolidated financial statements as they are not considered significant for a fair presentation on the Group's financial position.

Statement of compliance

The interim Report has been compiled in accordance with the International Accounting standards 34 – Interim Financial Reporting. The company's financial statements have been compiled in accordance with International Reporting Standards as adopted by the International Accounting Standards (IASB) and European Union and in compliance with Companies Act RS.

Basis for the compilation of financial statements

The financial statements of Luka Koper, d.d. and the Luka Koper Group were compiled on the assumption that the Company /Group will continute to operate in the future, which implies that Company/Group will dispose with enough liquidity assets to ensure the continuity of business performance. The Company/Group operations are not seasonal. The financial statements are compiled in euros (EUR), rounded to the nearest unit. Financial statements provide useful information on the performance in January – June 2022, in comparison with the balance as at 31 December 2021.

Financial statements of Luka Koper, d. d. and consolidated financial statements of Luka Koper Group, for the reporting period January – June 2022 and as at 30 June 2022 are not audited, whilst they were audited for the comparable period as at 31 December 2021.

In light of the uncertainties regarding further developments of COVID-19 outbreak, the Management Board closely examines the current situation and the potential impact on the business performance.

Due to the war in Ukraine, the geopolitical situation has deteriorated significantly and affected economic trends in 2022. The consequences had a direct impact on rising energy and raw material prices, which is monitored by the Management board, who responds appropriately to ensure smooth business operations of the Company/the Group.

Use of estimates and judgements

Preparation of financial statements in conformity with International Financial Reporting Standards (IFRS) requires the management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates are formed based on past experience and expectations in the accounting period. Formation of estimates and the related assumptions and uncertainties are disclosed in the notes to individual items.

Estimates, judgements and assumptions are reviewed on a regular basis. Actual results may differ from these situations, hence estimates and underlying assumptions are are reviewed on a regular basis. Changes in accounting estimates are recognised in the period for which the estimates are modified, or in the coming periods that are impacted by respective changes.

5.3 Additional notes to the Income Statement

Net revenue from sale

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Revenue from sales with domestic customers based on contract with customer	43,350,491	32,479,225	44,823,075	34,207,425
- services	43,246,450	32,474,953	44,719,034	34,203,153
- goods and material	104,041	4,272	104,041	4,272
Revenue from sales with foreign customers based on contract with customer	105,958,496	76,176,427	106,328,080	76,579,094
- services	105,958,496	76,176,427	106,328,080	76,579,094
Revenue to customers	149,308,987	108,655,652	151,151,155	110,786,519
Revenue from collected port dues	3,260,018	3,257,929	3,260,018	3,257,929
Revenue from sales with domestic customers from rentals	976,463	789,436	709,648	677,348
Total	153,545,468	112,703,017	155,120,821	114,721,796

Higher achieved net revenue from sales resulted from higher volume of throughput, higher volume of additional services, prices growth, but mainly due to the higher revenue from warehousing fees resulting from the extended time of goods retention in the warehouse. With the gradual normalisation of the situation, a decline in revenues from warehousing fees is expected.

In the overall structure of the net revenue in the reported period 2022 two customers exceeded 10 percent of the whole sale, both in the Company and in the Group, and remained at the same level as the previous year.

Other revenue

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Other operating income	326,898	417,149	1,108,948	1,148,656
Reversal of provisions	2,975	0	2,975	0
Subsidies, grants and similar income	0	0	762,578	730,992
Revaluation operating income	323,923	417,149	343,395	417,664
Income on sale of property, plant and equipment and investment property	66,101	179,168	72,462	179,184
Collected written-off receivables and written-off liabilities	257,822	237,981	270,933	238,480
Other income	481,939	371,839	502,031	389,713
Compensations and damages	150,875	151,868	160,640	154,012
Subsidies and other income not related to services	328,215	190,464	328,215	190,464
Other income	2,849	29,507	13,176	45,237
Total	808,837	788,988	1,610,979	1,538,369

Subsidies, grants and similar revenue in Luka Koper Group mostly account for retained contributions on salaries of employees in the amount of earmarked in the subsidiary Luka Koper INPO, d. o. o.

Subsidies and other revenue, not related to the business performance, comprise primarily revenue to cover costs from EU projects.

Cost of material

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Cost of material	0	0	0	384
Cost of auxiliary material	1,106,389	991,488	1,156,102	1,041,625
Cost of spare parts	3,592,794	2,869,572	3,593,088	2,870,733
Cost of electricity	2,277,990	1,282,263	2,297,816	1,306,333
Cost of fuel	3,298,358	2,143,636	3,400,250	2,222,415
Other cost of energy	68,841	78,780	70,617	79,608
Cost of office stationary	42,802	84,025	47,688	91,287
Other cost of material	172,545	160,264	182,340	173,922
Total	10,559,719	7,610,028	10,747,901	7,786,307

The increase of costs of spare parts was attributable mainly to the higher volume of implementation of maintenance of fixed assets, partially, also the increased price of replacement parts. The cost of electricity and fuel was mainly attributable to the increase of energy in energy product markets and increased business volume in 2022.

Cost of services

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Port services	16,051,137	14,056,773	14,510,641	13,261,790
Cost of transportation	215,076	237,225	88,104	82,034
Cost of maintenance	3,541,112	4,053,699	3,388,712	3,933,661
Rentals	93,290	75,837	88,707	106,272
Reimbursement of labour-related costs	132,689	66,969	142,897	72,589
Costs of payment processing, bank charges and insurance premiums	692,020	655,980	786,191	748,108
Cost of intellectual and personal services	536,402	626,294	595,833	640,064
Advertising, trade fairs and hospitality	571,686	365,939	577,309	367,988
Costs of services provided by individuals not performing business activities	154,014	117,581	167,641	124,742
Sewage and disposal services	741,218	723,235	457,247	367,629
Information support	2,193,997	1,640,859	2,276,541	1,719,152
Concession-related costs	5,270,215	3,841,524	5,270,215	3,841,524
Transhipment fee	3,126,167	2,600,780	3,126,167	2,600,780
Costs of other services	2,157,849	1,422,140	1,446,090	1,234,069
Total	35,476,872	30,484,835	32,922,295	29,100,402

Within the cost of services a major share represented cost of port services of the controlling company. Among the costs of port services the Company/Group recorded the costs of agency workers and costs of services of contractual partners.

Cost of labour

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Wages and salaries	27,970,184	26,123,646	30,116,740	28,195,005
Wage compensations	3,103,293	3,185,348	3,419,168	3,481,044
Costs of additional pension insurance	1,227,150	1,178,352	1,344,499	1,291,254
Employer's contributions on employee benefits	5,211,181	4,907,013	5,613,424	5,293,462
Annual holiday pay, reimbursements and other costs	4,269,869	4,039,735	4,744,463	4,470,881
Total	41,781,677	39,434,094	45,238,294	42,731,646

Labour costs increased in comparison with the same period in the preceding year primarily due to the adjusting of salaries to the Consumer Price Index and higher bonuses paid to employees due higher business results than planned.

Amortisation and depreciation expense

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Depreciation of buildings	7,137,129	6,301,238	7,358,474	6,457,175
Depreciation of equipment and spare parts	7,149,422	7,108,813	7,383,919	7,347,962
Depreciation of small tools	9,972	10,666	10,125	10,867
Depreciation of investment property	291,499	293,590	131,357	211,318
Amortisation of intangible assets	206,975	387,731	232,824	415,325
Depreciation of investment into foreign-owned assets	5,786	5,786	8,799	8,799
Depreciation of right-of-use	179,575	178,182	216,807	188,667
Total	14,980,358	14,286,006	15,342,305	14,640,113

Other expenses

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Impairment costs, write-offs and losses on property, plant and equipment, and investment property	22,798	69,711	22,798	69,895
Expenses for allowances for receivables	439,404	316,995	450,032	323,606
Levies that are not contingent upon employee benefits expense and other types of cost	3,680,366	3,326,582	3,681,865	3,184,034
Donations	239,800	248,500	240,400	390,828
Environmental levies	56,340	85,800	51,714	80,070
Awards and scholarship to students inclusive of tax	1,936	506	1,936	506
Awards and scholarship to students	10,105	0	10,105	0
Other costs and expenses	271,292	270,510	272,951	283,540
Total	4,722,041	4,318,604	4,731,801	4,332,479

Levies that are not contingent upon labour costs and other types of costs the Company/Group mostly related for the use of the construction land.

Other costs and expenses were primarily compensations for damages to assets, owned by third parties. The damages ocurred during the transhipment of goods in the port.

Finance income and expenses

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2022	1-6 2021	1-6 2022	1-6 2021
Finance income from shares and interests	1,736,055	1,370,821	483,344	63,758
Finance income from shares and interests in Group companies	150,182	308,723	0	0
Finance income from shares and interests in associated companies	1,158,075	1,047,929	0	0
Finance income from shares and interests in other companies	81,637	14,169	137,183	63,758
Finance income from other investments	346,161	0	346,161	0
Finance income - interest	88	135	95	220
Interest income - other	88	135	95	220
Finance income from operating receivables	146,022	124,033	152,018	127,237
Finance income from operating receivables due from others	87,981	90,763	90,246	92,535
Exchange differences	58,041	33,270	61,772	34,702
Total finance income	1,882,165	1,494,989	635,457	191,215
Finance expenses from financial assets	-72,863	0	-72,863	0
Finance expenses – interest	-97,484	-142,983	-97,363	-142,989
Interest expenses – banks	-93,474	-141,317	-93,474	-141,317
Financial expenses arising from lease liabilities to others	-3,726	-1,501	-3,889	-1,672
Financial expenses arising from lease liabilities to Group companies	-284	-165	0	0
Finance expenses for financial liabilities	-1,268	-3,464	-1,324	-3,637
Finance expenses for trade payables	-2	-429	-2	-602
Finance expenses for other operating liabilities	-1,266	-3,035	-1,322	-3,035
Total finance expenses	-171,615	-146,447	-171,550	-146,626
Net financial result	1,710,550	1,348,542	463,907	44,589

Finance income from shares refers to the payout of the balance-sheet profit.

Finance income from investments and finance expenses from financial assets were related to the revaluation of financial assets at fair value through profit or loss.

Profit

Luka Koper, d. d.

In January – June 2022, Luka Koper, d.d. generated the operating profit in the amount of EUR 46,895,377, whilst in the equivalent period of the previous year EUR 17,416,741. The financial result was positive and amounted to EUR 1,710,550, in the same period last year it was also positive and amounted to EUR 1,348,542 The profit before tax amounted to EUR 48,605,927, whilst in the same period last year to EUR 18,765,283. The corporate income tax in the amount of EUR 7,567,113, in the equivalent period last year EUR 3,027,920, and deferred taxes were calculated In the first half of 2022, net profit of Luka Koper, d.d. amounted to EUR 41,073,315, whilst the net profit in the comparable period last year amounted to EUR 15,752,376.

Luka Koper Group

In January – June 2022. the Luka Koper Group generated the operating profit in the amount of EUR 47,810,943, whilst in the equivalent period last year EUR 17,727,521. Financial result was positive and amounted to EUR 463,907, in the same period last year it was also positive and amounted to EUR 44,589. The attributed result of associated companies amounted to EUR 917,932, whilst in the equivalent period of the previous year to EUR 698,101. The profit before tax amounted to EUR 49,192,781, in the same period last year to EUR 18,470,211. Net profit or loss of the Luka Koper Group in the first half of 2022 amounted to EUR 41,518,460 whereof from the discontinued operations in the amount of EUR -51,370 (in the same period of the previous year EUR 15,424,385). To the controlling company pertained EUR 41,491,625 (in the same period of the previous year EUR15,416,863), whilst to to owners of noncontrolling interests EUR 26,835 (in the same period of the previous year EUR 7,523) in the same period of the previous year. The non-controlling interest pertains to the co-owner of the subsidiary TOC, d. o. o.

Net earnings per share

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	30 Jun 2021	30 Jun 2022	30 Jun 2021
Net profit for the period	41,073,315	15,752,376	41,491,625	15,416,863
Total number of shares	14,000,000	14,000,000	14,000,000	14,000,000
Basic and diluted earnings per share	2.93	1.13	2.96	1.10

5.4 Additional notes to the Statement of Financial position

Property, plant and equipment

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	30 Jun 2021	30 Jun 2022	30 Jun 2021
Land	20,138,595	20,138,595	23,287,917	23,287,917
Buildings	263,940,449	268,278,064	271,461,072	275,989,445
Plant and machinery	92,977,910	98,532,159	94,979,463	100,589,752
Property, plant and equipment being acquired and advances given	64,839,732	37,649,656	64,896,178	37,670,656
Right-of-use	1,200,192	1,379,767	1,139,446	1,339,507
Total	443,096,878	425,978,241	455,764,076	438,877,277

In January – June 2022, Luka Koper, d.d. allocated the total amount of EUR 31,623,362 for investments in plant and equipment, whilst the Luka Koper Group EUR 31,871,675.

The largest investment were the following:

• Purchase of three E-RTG cranes for the needs of the Container terminal,
• Continued construction of a new external truck terminal at the Sermin entrance,
• Purchase of SPPX cranes for the needs of the Container terminal,
• Continued extension of the Pier I completed construction of the berthing place 7D, continued construction of the stacking areas,
• Started renovation of external handling areas between warehouses 50F and 51A,
• Purchase of j5 new combined vehicles for the needs of the container terminal,
• Purchase and installation of OCR portal hrough two railway tracks,
• Purchase of a new 8 tonski forklift for the needs of General cargoes terminal,
• Manufacture of several new connections for for reefer containers,
• Upgrading of the anti-dust system at the Dry bulk cargoes terminal.

As at 30 June 2022, the Company/Group recorded liabililties for the purchase of property, plant and equipment in the amount of EUR 45,351,833 (as at 31 December 2021, EUR 54,432,512).

Right-of-use assets

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	30 Jun 2021	30 Jun 2022	30 Jun 2021
Land	1,091,313	1,224,381	1,091,313	1,224,381
Buildings	106,080	149,278	35,219	43,302
Plant and machinery	2,799	6,108	12,914	71,824
	1,200,192	1,379,767	1,139,446	1,339,507

Investment property

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Investment property - land	14,405,808	14,405,808	11,256,486	11,256,486
Investment property - buildings	9,280,202	9,569,312	4,145,437	4,273,748
Total	23,686,010	23,975,120	15,401,923	15,530,234

Among investment property are land and buildings under lease, and property which increases the value of noncurrent investment. Investment property is valued using the cost model

Intangible assets

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Non-current property rights (concessions, patents, licences, trademarks and similar rights)	1,053,217	1,250,530	1,149,012	1,372,176
Total	1,053,217	1,250,530	1,149,012	1,372,176

Other assets

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
31 December	9,650,187	1,089,144	9,650,187	1,089,144
Increase	9,743,880	10,544,939	9,743,880	10,544,939
Transfer between property, plant and equipment	-17,147,340	-1,983,896	-17,147,340	-1,983,896
Reporting date	2,246,727	9,650,187	2,246,727	9,650,187

Among other assets, Luka Koper, d. d./Group accounts for advances given for the purchase resp. for the construction property, plant, equipment, investment property and intangible assets, whereby these assets are still not in its possession.

Shares and interests in Group companies

As at 30 June 2022, shares and interests in Group companies amounted to EUR 4,048,063. Investment in the subsidiary Luka Koper Pristan, d. o. o. – in liquidation, was recorded in the Financial statement among Assets (disposal group) held for sale, since in September 2021 started the regular liquidation proceeding of the company.

Investment in subsidiaries are not subject to pledge.

Shares in subsidiaries, are excluded in the consolidation procedure in Group's financial statements.

Shares and interests in the associates

Luka Koper, d. d.

As at 30 June 2022, shares and interests in associated companies amounted to EUR 6,737,709. In comparison with the situation as at 31 December 2021, their value has not changed.

Luka Koper Group

(in EUR)	30 Jun 2022	31 Dec 2021
Balance at 1. Jan	15,784,793	14,168,687
Attributed profits	917,932	2,793,284
- Adria Transport, d. o. o.	174,209	1,385,147
- Adria Transport Croatia, d. o. o.	-21,446	-35,174
- Adria-tow, d. o. o.	399,211	799,674
- Adriafin, d. o. o.	69,422	179,245
- Avtoservis, d. o. o.	296,536	464,392
Profit distribution	-1,158,075	-1,177,179
- Adria Transport, d. o. o.	-200,000	-129,250
- Adria-tow, d. o. o.	-315,000	-336,000
- Adriafin, d. o. o.	-179,338	-175,000
- Avtoservis, d. o. o.	-463,737	-536,929
Balance at end of peroid	15,544,650	15,784,792

Other non-current investments

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Other investments measured at fair value through profit or loss	3,688,790	3,415,492	6,174,565	5,901,267
Other investments measured at fair value through comprehensive income	42,587,848	53,171,843	43,369,825	54,070,809
Total	46,276,638	56,587,335	49,544,390	59,972,076

As at 30 June 2022, the value of other investments measured at fair value through comprehensive income than as at 31 December 2021, resulting from lower stock exchange rates in the Company/Group portfolio.

Deferred tax

(in EUR)	Luka Koper, d. d.
	Deffered tax assets		Deffered tax liabilities
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Deferred tax assets and liabilities relating to:
- impairment of investments in subsidiaries	509,689	509,689	0	0
- impairment of other investments and deductible temporary differences	8,740,582	8,740,582	5,321,764	7,332,723
arising on securities - allowances for trade receivables - provisions for retirement benefits	270,619 438,550	236,118 438,550	0 0	0 0
- provisions for jubilee premiums - long-term accrued costs and	77,113	77,113	0	0
deferred income from public commercial services	453,983	453,983	0	0
Total	10,490,536	10,456,035	5,321,764	7,332,723
Off-set with deffered tax liabilities relating to impairment of other investments and deductible temporary differences arising on securities	-5,321,764	-7,332,723	-5,321,764	-7,332,723
Total	5,168,772	3,123,312	0	0

(in EUR)	Luka Koper Group
	Deffered tax assets		Deffered tax liabilities
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Deferred tax assets and liabilities relating to:
- impairment of investments in
subsidiaries	509,689	509,689	0	0
- impairment of other investments and
deductible temporary differences	8,762,778	8,761,750	5,418,865	7,452,051
arising on securities
- allowances for trade receivables	325,969	292,968	0	0
- provisions for retirement benefits	490,518	490,518	0	0
- provisions for jubilee premiums	82,520	82,520	0	0
- long-term accrued costs and
deferred income from public	453,983	453,983	0	0
commercial services
Total	10,625,457	10,591,428	5,418,865	7,452,051
Off-set with deffered tax liabilities relating to
impairment of other investments and	-5,418,865	-7,452,051	-5,418,865	-7,452,051
deductible temporary differences arising on
securities
Total	5,206,592	3,139,376	0	0

Assets held for sale

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Investment in a subsidiary	485,000	485,000	0	0
Trade and other receivables, cash and cash equivalents	0	0	257,825	340,807
Total	485,000	485,000	257,825	340,807

In compliance with IFRS 5, Non-current assets held for sale and discontinued operations, the Company /the Group reclassified all assets the Company/Group recorded in connection with the investment in the company Luka Koper Pristan, d. o. o. – in liquidation, into the assets held for sale, and namely at book value. In January - June 2022, Luka Koper Pristan, d. o. o. – in liquidation, generated the operating loss in the amount of EUR 51,370.

Trade and other receivables

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Current trade receivables:
domestic costumers	27,744,219	20,146,338	28,631,409	20,831,878
foreign costumers	29,273,485	18,873,816	29,472,932	19,034,849
Current operating receivables due from Group companies	932,351	504,373	0	0
Current operating receivables due from associates	352,934	143,570	376,098	143,570
Current trade receivables	58,302,990	39,668,097	58,480,440	40,010,297
Current dividend receivables	23,164	0	0	0
Advances and collaterals given	34,174	41,176	34,679	41,681
Short-term receivables related to financial revenues	53,801	0	53,801	0
Receivables due from the state	2,372,111	2,296,840	2,545,503	2,434,252
Other current receivables	152,396	407,257	180,063	473,325
Total trade receivables	60,938,636	42,413,370	61,294,486	42,959,555
Short-term deferred costs and expenses	8,722,032	3,700,938	8,975,937	3,707,705
Accrued income	261,114	340,741	261,113	340,740
Right-of-use	0	318,339	0	318,339
Other receivables	8,983,146	4,360,018	9,237,050	4,366,784
Total	69,921,782	46,773,388	70,531,536	47,326,339

Increase of current trade receivables towards domestic and foreign customers mostly related to the higher turnover volume in the first half of 2022, and higher excise for energy products, which are reinvoiced by the parent company at the export of energy products from the warehouses.

The increase of short-term costs mostly relate to the deferred costs, paid in the beginning of the year and are allocated throughout the financial year and allocated annual holiday bonus.

Movement of trade receivables of Luka Koper, d. d.

		30 Jun 2022			31 Dec 2021
(in EUR)	Gross amount	Allowances	Net amount	Gross amount	Allowances	Net amount
Outstanding and undue trade receivables Past due receivables:	54,192,137	-235,534	53,956,603	35,523,666	-130,115	35,393,551
up to 30 days	3,631,938	-35,793	3,596,145	3,225,694	-32,227	3,193,467
31 to 60 days overdue	302,142	-30,258	271,884	765,724	-77,252	688,472
61 to 90 days overdue	407,647	-81,702	325,945	117,651	-23,388	94,263
91 to 180 days overdue	126,523	-50,360	76,163	221,451	-86,295	135,156
more than 180 days overdue	898,446	-822,196	76,250	888,172	-724,984	163,188
Total	59,558,833	-1,255,843	58,302,990	40,742,358	-1,074,261	39,668,097

Note: the amount comprises trade receivables and receivables due from subsidiaries and associates..

Movement of trade receivables of the Luka Koper Group

		30 Jun 2022			31 Dec 2021
(in EUR)	Gross amount	Allowances	Net amount	Gross amount	Allowances	Net amount
Outstanding and undue trade receivables	54,200,612	-239,208	53,961,404	35,641,742	-132,948	35,508,794
Past due receivables: up to 30 days	3,784,064	-38,049	3,746,015	3,398,625	-34,003	3,364,622
31 to 60 days overdue 61 to 90 days overdue	314,873 416,889	-31,531 -83,551	283,342 333,338	820,247 128,273	-82,810 -25,534	737,437 102,739
91 to 180 days overdue more than 180 days overdue	137,265 1,179,305	-54,374 -1,105,856	82,891 73,449	222,404 1,172,476	-86,743 -1,011,432	135,661 161,044
Total	60,033,008	-1,552,569	58,480,440	41,383,767	-1,373,470	40,010,297

Note: the amount comprises trade receivables and receivables due from associates.

Cash and cash equivalents

(in EUR)		Luka Koper, d. d.	Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Cash in hand	857	1,687	24,653	16,191
Bank balances	38,578,642	15,340,739	61,487,792	37,642,494
Current deposits	0	1,000,000	1,980,000	2,980,000
Total	38,579,499	16,342,426	63,492,445	40,638,685

Equity

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Share capital	58,420,965	58,420,965	58,420,965	58,420,965
Capital surplus (share premium)	89,562,703	89,562,703	89,562,703	89,562,703
Revenue reserves	224,907,699	224,907,699	224,907,699	224,907,699
Legal reserves	18,765,115	18,765,115	18,765,115	18,765,115
Other revenue reserves	206,142,584	206,142,584	206,142,584	206,142,584
Reserves arising from valuation at fair value	21,119,583	29,692,618	21,369,005	30,036,801
Retained earnings	13,632,320	14,632,155	47,809,456	46,969,402
Net profit for the period	41,073,315	14,960,165	41,491,626	16,800,054
Equity of owners of the parent	448,716,585	432,176,305	483,561,454	466,697,624
Non-controlling interests	0	0	283,704	267,704
Equity	448,716,585	432,176,305	483,845,158	466,965,328

Provisions

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Provisions for retirement benefits and similar obligations	7,825,693	7,784,631	8,429,642	8,388,580
Provisions for legal disputes	11,317,114	11,366,109	11,317,114	11,366,109
Total	19,142,807	19,150,740	19,746,756	19,754,689

Movement of provisions of Luka Koper, d. d.

(in EUR)	1. Termination benefits	2. Jubilee premiums	3. Defined contribition retirement benefit plan	Total benefits (1. 2 and 3)	Claims and damages	Total
Balance at 31 Dec 2020	4,265,020	804,263	1,601,811	6,671,094	10,601,960	17,273,054
Movement:
Formation	510,460	74,395	1,012,000	1,596,855	1,258,949	2,855,804
Transfer	0	0	-710	-710	0	-710
Use	-131,303	-58,485	-256,498	-446,286	-6,454	-452,740
Reversal	-27,862	-8,460	0	-36,322	-488,346	-524,668
Balance at 31 Dec 2021	4,616,315	811,713	2,356,603	7,784,631	11,366,109	19,150,740
Movement:
Formation	0	0	518,760	518,760	0	518,760
Transfer	0	0	-63,495	-63,495	0	-63,495
Use	0	0	-414,203	-414,203	-41,851	-456,054
Reversal	0	0	0	0	-7,144	-7,144
Balance at 30 Jun 2022	4,616,315	811,713	2,397,665	7,825,693	11,317,114	19,142,807

Movement of provisions of the Luka Koper Group

(in EUR)	1. Termination benefits	2. Jubilee premiums	3. Defined contribition retirement benefit plan	Total benefits (1., 2. and 3.)	Claims and damages	Total
Balance at 31 Dec 2020	4,876,150	863,101	1,601,811	7,341,062	10,601,960	17,943,022
Movement:
Formation	494,233	83,984	1,012,000	1,590,217	1,258,949	2,849,166
Use	-163,607	-68,732	-257,208	-489,547	-6,454	-496,001
Reversal	-43,425	-9,727	0	-53,152	-488,346	-541,498
Balance at 31 Dec 2021	5,163,351	868,626	2,356,603	8,388,580	11,366,109	19,754,689
Movement:
Formation	0	0	518,760	518,760	0	518,760
Transfer	0	0	-63,495	-63,495	0	-63,495
Use	0	0	-414,203	-414,203	-41,851	-456,054
Reversal	0	0	0	0	-7,144	-7,144
Balance at 30 Jun 2022	5,163,351	868,626	2,397,665	8,429,642	11,317,114	19,746,756

The defined contribution plan relate to the liabilities from the post-employment benefits (one-off payment on retirement).

In accordance with Article 92 of IAS 37 – Provisions, Contingent Liabilities and Contingent assets, the Company/Group does not disclose information on its legal obligations as such disclosure would result in a judgement on the position of the Company/group in disputes with other parties.

Deferred income

(in EUR)		Luka Koper, d. d.	Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Long-term deferred income for regular maintenance	22,773,846	21,642,989	22,773,846	21,642,989
Non-refundable grants received	7,059,258	7,235,652	7,229,435	7,376,030
Other non-current deffered income	0	0	1,084,949	1,118,357
Total	29,833,104	28,878,641	31,088,230	30,137,376

Pursuant to the Concession Agreement, Luka Koper, d.d. records deferred income on regular maintenance as noncurrent deferred income since it has the right and obligation to collect port dues, which serve as income intended to cover the costs of performing public utility service of regular maintenance of the port infrastructure intended for public transport. With respect to any annual surplus of revenue over costs, the Company forms non-current deferred income for covering the costs of public utility service relating to regular maintenance of of the port infrastructure in the coming years. In the event that costs exceeded the revenue, the Company would be utilising non-current deferred income.

The grants received comprise non-refundable grants and advance payments received with respect to norefunadable funds for investments into EU development projects which are recorded by the controlling company and are utilised in accordance with their useful life. Under non-refundable funds received, the Group also records retained contributions on salaries of employees of the Luka Koper INPO, d. o. o., sheltered workshop, and namely contributions to insurance schemes for retirement pension, disability, sickness, and maternity. The funds were desimbursed in compliance with the Vocational rehabilitation and employment of persons with diasabilities Act for covering 75 percent of salaries for disabled persons and labour costs for the staff who assist the disabled persons.

The Group's other non-current deferred income comprises non-current deferred income earmarked to cover the costs of depreciation of fixed assets.

Non-current borrowings

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Non-current borrowings from domestic banks	37,258,509	40,606,555	37,258,509	40,606,555
Non-current borrowings from foreign banks	0	20,081,967	0	20,081,967
Total	37,258,509	60,688,522	37,258,509	60,688,522

As at 30 June 2022, the controlling company transferred non-current borrowings to current borrwings, and notably in the part which will be prepaid in July 2022 within the refinancing of a part of borrowings. With refinancing to be completed in July 2022, the company obtained the reduction in the interest rate margin and extension of the loan repayment period.

Current borrowings

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Current borrowings from domestic banks	8,336,093	8,226,093	8,336,093	8,226,093
Current borrowings from foreign banks	21,229,508	2,295,082	21,229,508	2,295,082
Total	29,565,601	10,521,175	29,565,601	10,521,175

Other current financial liabilities

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Other current financial liabilities	16,332,076	468,582	16,308,898	428,514
Total	16,332,076	468,582	16,308,898	428,514

Other current financial liabilities increased due to the transfer of dividends to the payment according to the resolution of General Meeting of Shareholders, which was held on July 2022.

Trade and other payables

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Current liabilities to domestic suppliers	27,953,131	24,306,362	28,432,468	24,965,306
Current liabilities to foreign suppliers	2,349,102	793,099	2,381,102	835,045
Current liabilities to Group companies	776,654	677,951	0	0
Current liabilities to associates	98,748	51,492	98,748	51,492
Current liabilities from advances	3,047,712	2,623,337	3,254,173	2,826,077
Current liabilities to employees	5,910,112	5,735,227	6,292,538	6,150,732
Current liabilities to state and other institutions	0	444	23,684	17,240
Total operating liabilities	40,135,459	34,187,912	40,482,713	34,845,892
Other operating liabilities	14,320,913	6,141,289	14,770,858	6,479,054
Total	54,456,372	40,329,201	55,253,571	41,324,946

Current operating liabilities increased due to the higher volume of business operations in the first half of the business year 2022. Other operating liabilities relate mostly to the accrued costs for the collective job performance, interests for loans and borrowings, costs of performance bonuses for employees under individual contracts, costs of unused holidays and accrued costs for invoices to be received. During the year the accrued costs are higher, since some types of accrued costs, which are accrued during the year, are drawn up at the year-end.

Contingent liabilities

(in EUR)		Luka Koper, d. d.	Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Guarantees given	3,110,000	3,110,000	3,386,323	3,386,323
Securities given	967,844	1,837,640	967,844	1,837,640
Contingent liabilities under legal disputes	23,971,572	23,968,442	23,971,572	23,968,442
Guarantees given	28,049,416	28,916,082	28,325,739	29,192,405

In accordance with Article 92 of IAS 37 – Provisions, Contingent Liabilities and Contingent assets, the Company/Group does not disclose information on its legal obligations as such disclosure would result in a judgement on the position of the Company/Group in disputes with other parties.

Related parties transactions

Transactions with the Government of the Republic of Slovenia

Transactions between Luka Koper, d. d. and the Government of the Republic of Slovenia

	Luka Koper, d. d.
		Costs/
In EUR)	Payments in	expenses in	Payments	expenses
	period	period	in period	in period
	1 - 6 2022	1 - 6 2022	1 - 6 2021	1 - 6 2021
Concessions and water fee	3,652,726	5,270,215	3,821,647	3,841,524
Transhipment tax	3,008,534	3,126,167	2,564,157	2,600,780
Corporate income tax (taxes and advance payments)	4,132,056	7,567,113	-518,550	3,027,920
Other taxes and contributions	5,041,976	5,211,181	4,641,514	4,907,013
Total	15,835,292	21,174,676	10,508,768	14,377,237

Transactions between the Luka Koper Group and the Government of the Republic of Slovenia

	Luka Koper Group
		Costs/
(in EUR)	Payments	expenses	Payments	expenses
	in period	in period	in period	in period
	1 - 6 2022	1 - 6 2022	1 - 6 2021	1 - 6 2021
Concessions and water fee	3,652,726	5,270,215	3,821,647	3,841,524
Transhipment tax	3,008,534	3,126,167	2,564,157	2,600,780
Corporate income tax (taxes and advance payments)	4,169,703	7,656,980	-476,920	3,060,839
Other taxes and contributions	5,198,304	5,613,424	4,755,879	5,293,462
Total	16,029,267	21,666,786	10,664,763	14,796,605

The Company/th Group did not have other transactions with the Government of the Republic of Slovenia.

Transactions with companies in which the Republic of Slovenia has direct controlling influence

The share-holder related companies are those in which the Republic of Slovenia and SDH together directly holds at least 20 percent stake. The list of these companies is published on the Slovenian Sovereign Holding website (https://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).

Luka Koper, d. d.

In the first half of 2022, d. d., sales transactions conducted between Luka Koper, d. d., and entities in which the State has directly dominant influence were recorded at EUR 6,528,504 and purchasing transactions amounted to EUR 3,562,035. Most of sales referred to services in connection with the port activity, major purchases represent also cost of railway transport, purchase of energy and insurance costs. As at 30 June 2022, Luka Koper, d. d., recorded the receivables in the amount of EUR 2,171,322 and liabilities in the amount of EUR 31,426,328. The largest part of liabilities includes the loan given by SID – Slovenska izvozna in razvojna banka, d. d., which was raised under market terms.

Luka Koper Group

In the first half of 2022, the Luka Koper Group conducted transactions in the amount of EUR 6,563,192 referring to the sales to companies where the State has direct dominant influenc, and transactions in the amount of EUR 3,630,187 referring to the purchase. Most of sales referred to services in connection with the port activity, major purchases represent also cost of railway transport, purchase of energy and insurance costs. As at 30 June 2022, the Luka Koper Group recorded the receivables in the amount of EUR 2,213,589 and liabilities in the amount of EUR 31.440.033.

Transactions with natural persons

In January - June 2022, no other transactions between the Company/Group and Members of the Management Board resp. Members of the Supervisory Board were recorded.

Financial instruments and financial risk management

Financial risks to which the Company/Group is exposed to include:

• 1. Risk of change in fair value,
• 1. Interes rate risk
• 1. Liquidity risk,
• 1. Currency risk,
• 1. Credit risk and
• 1. Risk of adequate capital structure.

In the Company/Group, management of financial risks has been organised within the finance and accounting department, since the accounting for subsidiaries is carried out within Luka Koper d. d. The existing economic environment makes forecasting future financial categories more demanding, introducing into the planned categories a higher degree of unpredictability and, consequently a higher degree of risk. The company /Group has consequently tightened the control over individual financial categories.

Book and fair values of financial instruments

	Luka Koper, d. d.
(in EUR)	Carrying amount at 30 Jun 2022	Fair value at 30 Jun 2022	Carrying amount at 31 Dec 2021	Fair value at 31 Dec 2021
Non-derivative financial assets at fair value
Financial assets at fair value through profit or loss	3,688,790	3,688,790	3,415,492	3,415,492
Financial assets at fair value through other comprehensive income	42,587,848	42,587,848	53,171,843	53,171,843
Non-derivative financial assets at amortised cost
Financial claims	2,539	2,539	3,336	3,336
Operating receivables (excluding receivables due from the state, advances and collaterals fiven)	58,716,500	58,716,500	40,416,095	40,416,095
Assets from contracts woth customers	0	0	318,339	318,339
Cash and cash exuivalents	38,579,499	38,579,499	16,342,426	16,342,426
Total non-derivative financial assets	143,575,176	143,575,176	113,667,531	113,667,531
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities	66,824,110	66,824,110	71,209,697	71,209,697
Lease liabilities Operating liabilities (excluding other non-current and current liabilities,	1,203,875	1,203,875	1,383,370	1,383,370
current liabilities to the state, employees and from advances and colalterals)	31,177,635	31,177,635	25,828,904	25,828,904
Total non-derivative financial liabilities	99,205,620	99,205,620	98,421,971	98,421,971

	Luka Koper Group
(in EUR)	Carrying amount at 30 Jun 2022	Fair value at 30 Jun 2022	Carrying amount at 31 Dec 2021	Fair value at 31 Dec 2021
Non-derivative financial assets at fair value
Financial assets at fair value through profit or loss	6,174,565	6,174,565	5,901,267	5,901,267
Financial assets at fair value through other comprehensive income	43,369,825	43,369,825	54,070,809	54,070,809
Non-derivative financial assets at amortised cost
Financial claims	8,089	8,089	8,879	8,879
Operating receivables (excluding receivables due from the state, advances and collaterals fiven)	58,921,616	58,921,616	40,824,362	40,824,362
Assets from contracts woth customers	0	0	318,339	318,339
Cash and cash exuivalents	63,492,445	63,492,445	40,638,685	40,638,685
Total non-derivative financial assets	171,966,540	171,966,540	141,762,341	141,762,341
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities	66,824,110	66,824,110	71,209,697	71,209,697
Lease liabilities	1,142,982	1,142,982	1,343,495	1,343,495
Operating liabilities (excluding other non-current and current liabilities, current liabilities to the state, employees and from advances and colalterals)	30,912,318	30,912,318	25,851,843	25,851,843
Total non-derivative financial liabilities	98,879,410	98,879,410	98,405,035	98,405,035

1. Risk management and change in fair value

Luka Koper, d. d.

As at 30 June 2022, 7.2 percent of the Company's assets were financial investments measured at fair value (at the end of the previous year 9.5 percent). The fair value risk associated with investments in securities is demonstrated through changes in stock market prices that affect the value of these assets and, consequently the potential gain on their disposal, whereas with investments in shares of other companies there is a risk for the sales value not to equal the value of the market transaction. This type of risk has been recognised with regard to investments in market securities of Slovenian companies and to investments in shares and interests.

As at 30 June 2022 the value of non-current investments at fair value amounted to EUR 46,276,638.

The sensitivity analysis of investments at fair value does not disclose in the books the financial investments at fair value classified in level 3 due to their irrelevance.

Fair value hierarchy

(in EUR)	Carrying amount at 30 Jun 2022	Fair value at 30 Jun 2022	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments Non-current loans given*	46,276,638 872	46,276,638 872	45,364,653 0	0 0	911,985 872
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes Current loans given**	1,667	1,667	0	0	1,667
Non-current financial liabilities
Non-current loans and borrowings**	37,258,509	37,258,509	0	0	37,258,509
Non-current operating liabilities**	107,258	107,258	0	0	107,258
Current financial liabilities
Current loans and borrowings**	29,565,601	29,565,601	0	0	29,565,601
Other current financial liabilities**	22,569	22,569	0	0	22,569

* measured at fair value ** presented at fair value

(in EUR)	Carrying amount at 31 Dec 2021	Fair value at 31 Dec 2021	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	56,587,335	56,587,335	55,675,350	0	911,985
Non-current loans given**	1,717	1,717	0	0	1,717
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes
Current loans given**	1,619	1,619	0	0	1,619
Non-current financial liabilities Non-current loans and
borrowings**	60,688,522	60,688,522	0	0	60,688,522
Non-current operating liabilities**	106,025	106,025	0	0	106,025
Current financial liabilities
Current loans and borrowings**	10,521,175	10,521,175	0	0	10,521,175
Other current financial liabilities**	52,260	52,260	0	0	52,260

* measured at fair value ** presented at fair value

The book value of receivables and current liabilities a good approximation of the fair value, therefore the Company does not disclose them in the table above.

Shares and interests measured at fair value were valued at publicly applicable exchange rates at the Ljubljana Stock Exchange and the list of mutual funds quotations.

To calculate Level 3 value, the Company/Group uses the information available to it to compare the value of the investment that the Company/Group discloses in the books of account with relative value in the equity of the investment company at the balance sheet day.

Luka Koper Group

As at 30 June 2022, 7.3 percent of the Group's assets were were financial investments measured at fair value (as at 31 December 2021, 9.5 percent). The fair value risk associated with these investments is demonstrated through changes in stock market that affect the value of these assets and, consequently the potential gain on their disposal, whereas with investments in shares of other companies there is a risk for the sales value not to equal the value of the market transaction. This type of risk has been recognised with regard to investments in market securities of Slovenian companies and to investments in shares and interests.

As at 30 June 2022, the value of non-current investments at fair value amounted to EUR 49,544,390.

The sensitivity analysis of investments at fair value does not disclose in the books the financial investments at fair value classified in level 3 due to their irrelevance.

Fair value hierarchy

(in EUR)	Carrying amount at 30 Jun 2022	Fair value at 30 Jun 2022	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	49,544,390	49,544,390	46,146,630	0	3,397,760
Non-current loans given**	6,422	6,422	0	0	6,422
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes
Current loans given**	1,667	1,667	0	0	1,667
Non-current financial liabilities
Non-current loans and borrowings**	37,258,509	37,258,509	0	0	37,258,509
Non-current operating liabilities**	147,497	147,497	0	0	147,497
Current financial liabilities
Current loans and borrowings**	29,565,601	29,565,601	0	0	29,565,601
Other current financial liabilities**	22,569	22,569	0	0	22,569

* measured at fair value ** presented at fair value

(in EUR)	Carrying amount at 31 Dec 2021	Fair value at 31 Dec 2021	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	59,972,076	59,972,076	56,574,316	0	3,397,760
Non-current loans given**	7,260	7,260	0	0	7,260
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes
Current loans given**	1,619	1,619	0	0	1,619
Non-current financial liabilities
Non-current loans and borrowings**	60,688,522	60,688,522	0	0	60,688,522
Non-current operating liabilities**	143,693	143,693	0	0	143,693
Current financial liabilities
Current loans and borrowings**	10,521,175	10,521,175	0	0	10,521,175
Other current financial liabilities**	52,260	52,260	0	0	52,260

* measured at fair value ** presented at fair value

The book value of receivables and current liabilities a good approximation of the fair value, therefore the Group does not disclose them in the table above.

Shares and interests measured at fair value were valued at publicly applicable exchange rates at the Ljubljana Stock Exchange and the list of mutual funds quotations.

To calculate Level 3 value, the Company/Group uses the information available to it to compare the value of the investment that the Company/Group discloses in the books of account with relative value in the equity of the investment company at the balance sheet day

2. Management of interest rate risk

With respect to its liabilities structure, the Company/Group also faces interest rate risk as an unexpected growth in variable interest rates can have an adverse effect on the planned results.

Luka Koper, d. d.

The share of financial liabilities for received borrowings decreased in the overall structure of the Company's liabilities from the inital 11.9 percent at the end of 2021 to 10.4 percent as at 30 June 2022. The effect of variable interest rate changes on future profit or loss after taxes is shown in the table below.

Possible interest rate fluctuations would consequently have an impact on 54.0 percent of total borrowings (as at 31 December 2021, 53.5 percent); the remaining 46.0 percent of borrowings were concluded with a fixed interes trate.

Overview of exposure

(in EUR)	30 Jun 2022	Exposure 31 Jun 2022	31 Dec 2021	Exposure 31 Dec 2021
Borrowings received at variable interest rate (without interest rate hedge)	36,104,508	54.0%	38,127,049	53.5%
Borrowings received at nominal interest rate	30,719,602	46.0%	33,082,648	46.5%
Total	66,824,110	100.0%	71,209,697	100.0%

(in EUR)	Borrowings from banks under the variable interest rate	Increase by 15 bp	Increase by 25 bp	Increase by 50 bp	Increase by 100 bp	Increase by 150 bp
Balance at 30 Jun 2022
3M EURIBOR	36,104,508	31,844	53,074	170,898	383,193	595,488
Total effect on interests expenses	36,104,508	31,844	53,074	170,898	383,193	595,488
Balance at 31 Dec 2021
3M EURIBOR	38,127,049	33,566	55,943	111,885	283,406	437,791
Total effect on interests expenses	38,127,049	33,566	55,943	111,885	283,406	437,791

Sensitivity analysis of borrowings from banks in view of the variable interest rate fluctuations:

The analysis of financial liabilities' sensitivity to changes in variable interest rates was based on the assumption of potential growth of interest rates of 15, 25, 50, 100 and 150 base points. As at 30 June 2022 the Company's borrowings not hedged against interest rate were subject to the movement of 3M Euribor.

Recently, EURIBOR has been rising substantially, but nevertheless, as at 30 June 2022, three-months Euribor rate to which are linked the company's borrowings with variable interest rate, was still negative. According to the projections of the European central bank on the raise of key interest rate, followed by changes in reference interest rates, additional growth of Euribor is expected in the following periods, with an impact on the increase of the company's interest rate expenditure, as shown in the above sensitivity analysis.

Luka Koper Group

The share of financial liabilities for borrowings in the overall structure of Group's liabilities decreased from initial 11.2 percent at the end of 2021 to 9.8 percent as at 30 June 2022. The effect of variable interest rates changes on future profit and losss after taxes is shown in the table below.

Possible interest rate fluctuations would consequently have an impact on 54.0 percent of all Group's borrowings (as at 31 december 2021, 53.5 percent); the remaining 46.0 percent of borrowings were concluded with a fixed interest rate.

Sensitivity analysis of borrowings from banks in view of the variable interest rate fluctuations:

Among the Group's companies only the controlling company has borrowings, therefore the overview of exposure and the sensitivity analysis of borrowings from banks in view of the variable interest rate fluctuations are the same as in the controlling company.

3. Management of liquidity risk

The liquidity risk is the risk that the company/Group will fail to settle its liabilities at maturity. The company/Group manages liquidity risk by regular planning of cash flows with diverse maturity, in such a way that is able to meet all due obligations at any time. Additional measures for preventing from delays in receivable collection include regular monitoring of payments and immediate response to any delay and charging penalty interest in accordance with the uniform policy of receivable management.

	Luka Koper, d. d.
(in EUR)	Up to 3 months	3 to 12 months	1 to 2 years	3 to 5 years	Over 5 years	Total
30 Jun 2022
Loans and borrowings	23,313,531	6,252,069	8,336,093	21,833,278	7,089,139	66,824,110
Accrued interest maturing in the next calendar year	89,352	213,082	239,679	407,503	53,702	1,003,318
Liabilities froma lease	90,529	258,978	305,746	548,623	0	1,203,875
Other financial liabilities	15,982,569	0	0	0	0	15,982,569
Payables to suppliers	37,087,747	0	0	0	0	37,087,747
Other operating liabilities	14,320,913	0	0	0	0	14,320,913
Total	90,884,642	6,724,129	8,881,517	22,789,404	7,142,841	136,422,532
31 Dec 2021
Loans and borrowings	2,630,294	7,890,881	10,521,175	29,813,524	20,353,824	71,209,697
Accrued interest maturing in the next calendar year	104,564	289,535	326,128	581,025	128,610	1,429,862
Liabilities froma lease	91,292	325,030	231,003	736,045	0	1,383,370
Other financial liabilities	52,260	0	0	0	0	52,260
Current operating liabilities	31,564,575	0	0	0	0	31,564,575
Other operating liabilities	6,141,289	0	0	0	0	6,141,289
Total	40,584,273	8,505,446	11,078,306	31,130,594	20,482,435	111,781,053

	Luka Koper Group
(in EUR)	Up to 3 months	3 to 12 months	1 to 2 years	3 to 5 years	Over 5 years	Total
30 Jun 2022
Loans and borrowings	23,313,531	6,252,069	8,336,093	21,833,278	7,089,139	66,824,110
Accrued interest maturing in the next calendar year	89,352	213,082	239,679	407,503	53,702	1,003,318
Liabilities froma lease	91,167	224,327	278,866	548,623	0	1,142,982
Other financial liabilities	15,993,404	0	0	0	0	15,993,404
Current operating liabilities	37,228,540	0	0	0	0	37,228,540
Other operating liabilities	14,770,858	0	0	0	0	14,770,858
Total	91,486,853	6,689,478	8,854,637	22,789,404	7,142,841	136,963,212
31 Dec 2021
Loans and borrowings	2,630,294	7,890,881	10,521,175	29,813,524	20,353,824	71,209,697
Accrued interest maturing in the next calendar year	104,564	289,535	326,128	581,025	128,610	1,429,862
Liabilities froma lease	107,194	269,060	284,707	682,534	0	1,343,495
Other financial liabilities	52,260	0	0	0	0	52,260
Current operating liabilities	32,019,815	0	0	0	0	32,019,815
Other operating liabilities	6,479,054	0	0	0	0	6,479,054
Total	41,393,180	8,449,476	11,132,010	31,077,083	20,482,435	112,534,184

4. Management of currency risk

The risk of changes in foreign exchange rates arises from trade receivables denominated in US dollars (USD). Receivables denominated in US dollars in the Company/Group are low due to the low amount of invoiced realization, therefore the Company/Group did not decide to hedge this item.

5. Management of credit risk

Management of the risk of default on the side of the counterparty or the credit risk has gained in importance in recent years therefore the Company/Group decidet to take additional measures in managing this type of risk. Nonpayments by customers are being passed on to economic entities, much like a chain reaction, which significantly reduces the assessed probability of timely inflows and increases additional costs of financing the operation. In addition to the accelerated collection-related activities, which were implemented in recent years and the regular monitoring of overdue customer claims, an automated system for monitoring customer claims and credit limits set for customers is being implemented. In the case of customers where the Company/Group detects payment problems and inconsistency in respecting agreed business agreements, in order to avoid payment indiscipline, an advance payment method is established for all ordered services. This area is positvely impacted by the specific structure of the Company's/Group's customers, who are predominantly major companies, freight forwarders and forwarding agents that have been the Company's/Group's business partners for a number of years.

Certain Company's/Group's receivables have been secured with collaterals, which are returned to the customers once all obligations have been settled or cooperation has been terminated. Investments include loans, which are secured with blank bills of exchange and other movable and immovable property.

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2022	31 Dec 2021	30 Jun 2022	31 Dec 2021
Non-current loans	872	1,717	3,336	7,260
Non-current operating liabilities	39,991	39,991	41,088	39,991
Current loans	1,667	1,619	1,824	1,619
Current trade receivables	58,302,990	39,668,097	58,480,440	40,010,297
Other current receivables	2,635,646	2,745,273	2,814,046	2,949,258
Cash and cash equivalents	38,579,499	16,342,426	37,051,470	40,638,685
Total	99,560,665	58,799,123	98,392,204	83,647,110

As resulting from the structure of maturity trade receivables as at 30 June 2022 in comparison with the structure as at 31 December 2021 (on page 50), the company /the Group did not detected the deterioration of the customers payment discipline.

6. Management of risk relating to adequate capitall structure

Having identified the optimal capital structure, the Company/Group has set a non-current strategic goal of maintaining the debtors' share within the liabilities side below 50 percent. As at 30 June 2022, the percentage in the Company was 30.2 percent, which was an increase of 2.7 compared to 31 December 2021, whereas in the Group 28.9 percent, which was an increase of 2.6 percent in comparison with 31 December 2021.

	Luka Koper, d. d.				Luka Koper Group
(in EUR)	30 Jun 2022		31 Dec 2021		30 Jun 2022		31 Dec 2021
	in EUR	share (in %)	in EUR	share (in %)	in EUR	share (in %)	in EUR	share (in %)
Equity	448,716,585	69.8%	432,176,305	72.5%	483,845,158	71.1%	466,965,328	73.6%
Non-current liabilities	87,196,046	13.6%	109,790,976	18.4%	89,068,480	13.1%	111,691,521	17.6%
Current liabilities	106,919,943	16.6%	54,449,795	9.1%	107,763,366	15.8%	55,446,409	8.7%
Total accumulated profit	642,832,574	100.0%	596,417,076	100.0%	680,677,004	100.0%	634,103,258	100.0%