Luka Koper

Earnings Release • Jan 10, 2020

Koper, 9 January 2020

Maritime throughput and revenues in the period January – December 2019

In compliance with the provisions of the Ljubljana Stock Exchange Rules and the applicable legislation, the company Luka Koper, d.d. hereby announces the net sales revenue of the parent company and the maritime throughput registered in the period January through December 2019.

According to unaudited and incomplete data, Luka Koper, d.d.recorded 224.5 million euros of net sales revenue in 2019, or 1 percent more than in the year 2018. Maritime throughput was slightly below the level registered in 2018 and totalled 22.8 million tons. A fall in throughput was recorded in most commodity groups, with the exception of liquid cargo, where we managed to achieve a historical record in throughput.

The second half of 2019 was marked by an economic downturn which was perceived in individual industries, especially in the car production, electronics and steel products industries. Trade wars and political unrest, especially in overseas markets, have further contributed to the uncertainty. The decrease in industrial production was reflected in the reduced throughput of raw materials, semifinished products, components and finished products.

Compared to 2018, maritime throughput declined across all product groups, with the exception of liquid cargoes, where growth is attributed primarily to favourable trends in fuel transport and the capacity of liquid cargo terminals. Certain terminals, mainly Container Terminal, General Cargo (metal products segment) Terminal, Car Terminal and Iron Ore and Coal Terminal which are indirectly involved in the supply chain of these industries, have been most affected by the decline in production. Over the last quarter, the Car Terminal has seen an increase in throughput, which is mainly due to the tendency of manufacturers to place cars on the market before the end of the year.

Total net sales revenues of Luka Koper, d.d.	Jan – Dec 2019	Jan – Dec 2018	Index 19/18
(in 000 EUR)	224,467*	222,980	101
*unaudited and incomplete data
Maritime throughput (in tons)	Jan – Dec 2019	Jan – Dec 2018	Index 19/18
Liquid cargo	4,307,388	3,855,247	112
Containers	9,475,016	9,520,007	100
Cars	1,111,433	1,156,265	96
General cargo	1,280,194	1,526,026	84
Dry bulk cargo	6,618,616	7,991,074	83
Total	22,792,646	24,048,618	95
Maritime throughput (in units)	Jan – Dec 2019	Jan – Dec 2018	Index 19/18
Container (TEU)	959,354	988,499	97
Cars (units)	705,993	754,409	94

Ten years of development and growth

The success, growth and development of port activity is measured in the long term. Considering that we have entered the new decade, we have prepared an overview of the operations of the last ten years, when the Port of Koper became one of the most important ports in the region. In the sphere of containers, Luka Koper took over the primacy in the northern Adriatic already in 2010 and maintains it today. In 2009, the Port of Koper extended the Pier I and increased the capacity of the Container Terminal, which enabled the establishment of direct shipping lines to the Far East and the development of railway services to the hinterland markets. In the sphere of cars, the Port of Koper is one of the largest automotive ports in the Mediterranean.

The company's strategic orientation in the field of containers and cars is also clear from the comparison of the throughput structure. Containers and cars, which are also identified as strategic cargoes in the company's Strategic Business Plan until 2025, now account for 46% of the total maritime throughput. In both cases, these are commodities with higher added value and less environmental impact.

In the sphere of containers and cars, in the ten last years the company has doubled the quantities measured in container units and number of vehicles. Total throughput increased by a third. The number of trucks has more than doubled, reflecting the extraordinary dynamics of economic development in the hinterland countries, particularly in the automotive and container sectors. The number of trains increased by almost a third, despite the restrictions of the single-track line between Koper and Divača.

	2010	2019
Total maritime throughput (in tons)	15.4 million tons	22.8 million tons
Container throughput (TEU)	476,731	959,354
Car throughput (in units)	379,250	705,993
Unloaded/ loaded wagons	209,783	288,705
Number of trains	17,023	22,329
Number of trucks	144,322	337,940
Number of ships	1,965	1,665
Number of employees (Luka Koper Group as per 31.12.)	997	1,703

Luka Koper is entering a new decade with a new Strategic Business Plan 2020-2025, which is focused on business growth, reorganization of work processes, digitization, automation and all aspects of sustainable development. Although port activity is highly dependent on global and regional changes in logistics and on the economic situation in the world, the Port of Koper will respond to these challenges by investing in port facilities that, after building an additional railway connection with the hinterland, will strengthen the competitive position of the Port of Koper in the region.