Luka Koper

Earnings Release • Mar 3, 2017

Luka Koper Group

Business performance 2010 – 2017 and key investments from 2014 to present

Luka Koper Group

Market position and cargo throughput

MARKET POSITION AND THROUGHPUT

• Record achievements related to maritime throughput.
• Top container terminal in Adriatic.
• Among top three largest car terminals in the Mediterranean.
• The first port for Austria.
• The first container port for Hungary and Slovakia.
• Achievement of new reference businesses which bring further opportunities for new business.

Luka Koper Group

Financial indicators

Net sales revenues (EUR)

EBIT (EUR)

EBITDA (EUR)

EBITDA margin

ROE

Net profit (EUR)

Investments (EUR)

Key investments from 2014 - present Luka Koper – Port of Koper

Luka Koper – Port of Koper Accomplished investments

Luka Koper

Container terminal investments

Dredging to -15 meters

Investment value: 5,8 M EUR Duration: 3 years

Stacking areas behind 7.c berth (realization in 2013/2014)

6.840 m² of new stacking areas Investment valuee: 8,62 M EUR Duration: 8 months

Stacking areas behind 7.c berth – embankment (realization in 2014/2015)

Investment value: 0,56 M EUR Duration: 3 months

Depot for empty containers, phase A: consolidation of storing and handling areas (2015)

Investment value: 1,66 M EUR Duration: 5 months

Arrangement of areas for full containers (2015/2016)

Investment value: 0,3 M EUR Duration: 2 months

Extension of full containers block B5 (2016)

Investment value: 0,47 M EUR Duration: 2 months

Construction of rail tracks 21a,b,c and railway bridge (2015)

Investment value: 3,68 M EUR Duration: 7 months

Construction of RMG rails, 740 meters of length (2016)

Investment value: 4 M EUR Duration: 9 months

Two super post-panamax STS cranes

24 rows of outreach Delivery in april 2017 Investment value: 18,1 M EUR Duration: 1,5 years

Two new RMG cranes for wagon loading/unloading

Investment value: 6,1 M EUR Duration: 1,5 years

Seven new E-RTG cranes

Investment value: 12 MIO EUR Duration: 1,5 year

Reconstruction and enlargement of existing main port gate

Moving of parking place gate: Investment value: 65.000 EUR Duration: 3 months

Enlargement of the gate and offices: Investment value: 200.000 EUR Duration: 3 months

Luka Koper

Liquid bulk terminal investments

Shore tanks for fuels on Pier II, total capacity 60.000 m3 (3 x 20.000 m3), accomplished in 2016

Investment value: 12,7 M EUR Duration: 1,5 years

Truck loading station no. 2

Investment value: 1,6 M EUR Duration: 5 months

Luka Koper

Car terminal investments

Asphalted landfills at front of Pier II, total 33.270 m2 of storing areas

throughput in 2016

22 million tons

Investment value: 2 M EUR Duration: 1 year

Luka Koper

Environmental permit for Ankaran reclamation area

Environmental permit for Ankaran reclamation area

Investment value: 64.000 EUR Duration: 2 years

Luka Koper – Port of Koper PENDING INVESTMENTS

Luka Koper

Contianuation of investments in the Container terminal

Reorganization of container blocks, phase 1 and 2 (2016/2017) Investment value: 3,75 M EUR

Depot for empty containers including sevice facility (2016/2017) Investment value: 2,8 M EUR

Extenstion of Pier I

• 1st phase: quayside extension (98,5 m) and southern part of stacking areas (24.830 m2)
• 2nd phase, after 2020: new quayside (341 m and stacking areas 53.185

Estimated investment value of phase 1: 35 - 40 M EUR

Luka Koper

Water management arrangements of Ankaran margin canal

Project documentation ofr the 1st phase of the arrangement of the Ankaran's margin canal Investment value: 61.000 EUR

Duration: 110 days

Luka Koper

Dry Bulk terminal investments

Warehouse for cereals/grains, 16.000 m2 total capacity

Investment value: 9,3 M EUR Duration: 1 year

Luka Koper

Strategic corporate documents

Strategic documents

• Strategic Business Plan 2016 2020
• Business Strategy until 2030
• Strategic Business Plan 2020 with orientations until 2030 (Masterplan)
• Strategic environment development until 2030
• IT strategy
• Purchase policy

Luka Koper – Port of Koper

Other achievements

Other corporate management achievements

• Revised risk management system in 2015 and expanded to the level of the Group's subsidiaries in 2016
• successful external assessment of internal audit in 2015
• 2016: adopted Strategy of corporate integrity and revised Code of ethics,
• the management and employees sign the declaration to the provisions of the Code of Ethics
• Guidance on acceptance of gifts adopted in 2016
• adopted Rules of procedure of proxy for corporate integrity,
• Established a system for violation of corporate integrity reporting,
• Benchmarking analysis.

Other achievements on the enviroment protection and work safety areas

• European Seaport Organization (ESPO) Award 2014 for the most innovative environment projects »No waste, just resources!«.
• 2014: organized first environment conference together with the local community an effective and transparent presentation of present and future environment-related projects.
• In November 2015, the European Commission awarded Luka Koper, d.d. a special recognition in the field of environmental management. As a national pioneer in this field we have maintained the EMAS certificate for the seventh year.
• New heating/cooling systems for buildings based on renewable sources (biomass from the Timber terminal, heat pumps).
• Extension of EMAS registration in 2016 for another 3 years.

Other achievements on the enviroment protection and work safety areas

• 2016: bronze award of the Chamber of commerce and industry of Slovenia for the innovative project of transforming marine sediments to bricks.
• Replacement of existing lighting with modern and energy efficient LED lighting.
• Delivery of first e-RTG cranes (Electrifies Rubber Tired Gantries) to decrease energy costs and dust/noise emissions.
• Established SCADA energy consumption management system within the framework of the EU project GreenBerth.
• Creation of a permanent working body with representatives of the Municipality of Koper and Ankaran Municipality aiming to support the development plans of the company.
• Installation of the best available technology to improve safety at work.

EU projects

• 8,44 millions EUR of granted fund, of which 6,28 million EUR were obtain during 2014 – 2016 period (3,13 million EUR in 2016 alone).
• According to the 8 already approved projects in progress and 4 in the final stages of reporting, the company is still able to draw additional 7,94 million EUR of funds,
• 3 new projects approved in 2015 2016 with the anticipated value of 11,81 million EUR (possibility to draw 3,63 million EUR of funds) for facilities related to containers and cars segment.
• A new EU project was approved in January 2017, the 42nd for Luka Koper, d.d.

Other achievements

• 2014: signed contract for a long-term loan of 36 million EUR with the European Investment,
• 2016: signed contract for a long-term loan of 28 million EUR with the Banka Koper,
• 2016: Dun & Bradstreet credit rating 5A1