Luka Koper

Management Reports • Sep 4, 2018

3 3.9.2018

Notice on Supervisory Board Meeting

At its ordinary meeting held on Friday, 31 August 2018, the supervisory board of the company Luka Koper d.d. was acquainted with the unaudited business report of the parent company Luka Koper, d.d. and Luka Koper Group for the period January – June 2018. The presented performance indicators are a result of favourable growing trends in throughput, especially with regard to containers where the number of units handled in the first half of the year increased by 6% compared with the same period last year, and a 17% growth was reported in car throughput as well. In the period January – June 2018, net sales on Group level totalled EUR 113.3 million, which was 5% higher than the net sales achieved during the comparable period last year. EBIT reached EUR 42.5 million, resulting in a 33% increase compared to last year. Profit was 27% higher than the profit achieved during the comparable period last year and totalled EUR 34.8 million. The increase in EBIT and net profit was also a result of the oneoff event corresponding to received compensation for the accident occurred last year in the amount of EUR 9.1 million.

At the meeting, the supervisory board also discussed and approved the amendments to the Company's plan for 2018. The amended version of the plan was elaborated by taking into consideration the results actually registered in the period January through July 2018 and the changed dynamics of investments caused by the long-lasting process for obtaining consents and permits, and the procedures for public procurement implementation. The amended plan also considered the one-off revenue resulting from received compensation that was recognised in the first half of 2018, and the throughput tax imposed by the 'Second Track Act' which, according to our estimation, the Company will most probably start to settle only in December and not in July, as initially anticipated in the Company's business plan.

LUKA KOPER, D. D.	AMENDED PLAN 2018	PLAN 2018	INDEX AP 2018/ P 2018
Net sales	224,431,963	228,026,929	98
Earnings before interest and taxes (EBIT)	65,389,038	55,429,502	118
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	93,787,334	83,547,975	112
Net profit or loss	54,889,584	47,724,065	115
Return on sales (ROS)	29.14%	24.31%	120
Return on equity (ROE)	16.20%	13.70%	118
Return on assets (ROA)	10.20%	9.20%	111
EBITDA margin	41.80%	36.60%	114
Added value per employee	129,400	122,479	106
Net financial debt / EBITDA	0.6	1.2	50
Net sales from market activity	215,649,401	214,877,951	100
Net sales relating to the performance of public utility service	8,782,561	13,148,978	67
EBITDA margin from market activity	43.50%	38.90%	112
Assets	559,587,395	534,847,358	105
Equity	359,044,293	365,559,273	98
Investment expenditure	25,371,148	52,548,338	48
Maritime throughput - in TONs	23,181,410	23,323,060	99
Maritime throughput of containers – in TEUs	984,005	984,000	100
Maritime throughput of cars – in pieces	800,015	770,000	104

SEOnet

LUKA KOPER GROUP	AMENDED PLAN 2018	PLAN 2018	INDEX AP 2018/ P 2018
Net sales	228,894,117	231,788,400	99
Earnings before interest and taxes (EBIT)	66,232,589	56,635,127	117
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	95,447,199	85,515,760	112
Net profit or loss	55,798,177	49,125,460	114
Return on sales (ROS)	28.94%	24.43%	118
Return on equity (ROE)	15.10%	12.90%	117
Return on assets (ROA)	10.00%	9.00%	111
EBITDA margin	41.70%	36.90%	113
Added value per employee	119,322	113,424	105
Net financial debt / EBITDA	0.3	0.9	33
Net sales from market activity	220,111,556	218,639,422	101
Net sales relating to the performance of public utility service	8,782,561	13,148,978	67
EBITDA margin from market activity	43.40%	39.10%	111
Assets	576,791,071	552,871,422	104
Equity	389,929,283	396,745,405	98
Investment expenditure	26,336,848	53,514,038	49
Maritime throughput - in TONs	23,181,410	23,323,060	99
Maritime throughput of containers – in TEUs	984,005	984,000	100
Maritime throughput of cars – in pieces	800,015	770,000	104

Due to already mentioned issues related to the obtaining of approvals and permits for planned investments and due to long-lasting public procurement proceedings the initially planned volume of investments will almost halve. However, in this respect it is necessary to point out that the Company succeeded in moving forward the Pier I extension project which is of strategic importance for the port's future development; the Company is currently waiting for the pier extension building permit. Another major investment is the new Sermin trucks entrance project where preparatory works are already in course. The supervisory board also approved the Company's investment in the new parking garage for 6,000 cars and took note of the state of construction of a Ro-Ro berth in Basin III.

At its meeting, the Company's supervisory board was also acquainted with the report on the implementation of the IPS Strategy in the period May - August 2018 and with the activities planned with this regard. As already explained, the above-stated strategy is based on a three-pillar model: employment with Luka Koper, employment with the so-called employment agencies and external contractors. The Company plans to launch public tenders for strategy implementation in September in order to have the new model put into practice latest by 1 January 2019.

On this occasion, the Company takes the opportunity to inform the public that it received the notification of the Special Financial Office FURS (Financial Administration of the Republic of Slovenia) regarding the corporation tax accounted for 2017, in the part referring to created provisions. The Company will examine the notification and will respond within the prescribed time-limit.

Management Board