Gram Car Carriers ASA

Quarterly Report • Apr 28, 2022

Gram Car Carriers ASA

Interim report Q1 2022

Gram Car Carriers in brief

GCC is the world's third-largest tonnage provider within the Pure Car Truck Carriers (PCTCs) segment with 18 vessels, across the Distribution, Mid-size and Panamax segments. The Company serves as a trusted provider of high-quality vessels and logistics solutions ensuring safe, efficient and punctual shipment of vehicles for a network of clients comprising of major global and regional PCTC operators.

Investment highlights

• Unique investment opportunity in leading PCTC tonnage provider
• Attractive market opportunity with upcycle unfolding
• GCC ideally positioned to capture a historically strong market
• Stated policy of returning minimum 50% of EPS to shareholders through quarterly dividends

Key events

• Gram Car Carriers ASA established as a leading car carrier tonnage provider and listed on Euronext Growth Oslo in late January 2022
• Board of Directors proposes dividend of USD 0.036 per share for Q1 2022
• Q1 Revenue of USD 23.5 million and EBIT of USD 5.9 million
• Q1 2022 average TCE revenue: Panamax USD 16,690, Mid-size USD 17,410 and Distribution fleet USD 11,590
• New contracts for Viking Passero, Viking Emerald and Viking Drive at higher dayrates and with longer durations
• Total revenue backlog of USD 176 million
• Positioned to capture a historically strong market with 15%/60% open days in 2022/23
• Favourable market outlook with continued high charter rates and long contract durations
• Creating attractive new revenue streams by supporting foundation of Global Auto Carriers (GAC)

Georg Whist, CEO of Gram Car Carriers ASA:

"Gram Car Carriers holds a leading position in a historically strong car carrier market with favourable demand fundamentals and a predictable supply side. This is reflected in new charter agreements with higher dayrates and longer durations which support future earnings growth and direct shareholder returns through attractive dividends. We are therefore pleased to announce our initial dividend equal to 50% of our net profit for the first quarter of 2022, in accordance with our stated policy."

Average daily time charter equivalent (TCE) rates

	Distribution	Mid-size	Panamax	Fleet total
Average 1) TC rate Q1'22	USD 11,590	USD 17,410	USD 16,690	USD 15,640
Utilisation Q1'22	98%	100%	92%	98%
Planned/ unplanned off-hire Q1'22	-/5 days	-/3 days	11/18 days	11/26 days

Review of operations

The Gram Car Carriers ('GCC') fleet was fully operational during the first quarter of 2022, with the exception of Viking Queen that went through her third special survey in January. Due to extensive COVID-19 restrictions in China, the planned dockings of the Viking Destiny and the Viking Emerald were postponed by three months, to June and August respectively.

The average fleet TCE was USD 15,640 in the first quarter, an increase from USD 14,200 in the fourth quarter of 2021. The higher TCE was mainly a function of higher dayrates for the Mid-size fleet of USD 17,410 (USD 15,110) and the Distribution fleet at USD 11,590 (USD 10,540). The daily TCE for the Panamax fleet was stable at USD 16,690.

GCC suspended all calls at Ukrainian and Russian ports following the Russian invasion of Ukraine on February 24. This has been acknowledged and accepted by all charterers. No cargo for Russian discharge ports were onboard at the time of the attack.

Two thirds of GCC's seafarers are Ukrainian. The company has implemented several initiatives in cooperation with crew managers to ensure flexibility for those onboard by either extending their contracts or to end contracts early. Networks and contact points for officers have been established in various European countries and several families of Ukrainian officers now reside outside their home country. The company monitors the situation closely and has established a competent crew base with a combination of the Ukrainians that have chosen to stay onboard, complemented by crew from other nationalities. GCC is dedicated to support the crew and officers onboard through these challenging times.

Contact overview

GCC's revenue backlog amounted to USD 176 million at 31 March 2022.

In January, GCC signed a three-year time charter for the Viking Passero (5,000 CEU). The charter commences in May 2022 with a time charter rate is USD 27,700 per day, equalling a total contract value of USD 30 million over the period.

In March, GCC signed a five-year time charter for the MV Viking Emerald (4,200 CEU). The charter commences in May 2022 with a time charter rate is USD 28,000 per day, equalling a total contract value of USD 51 million over the period.

In April, GCC signed an extension to the current contract with Seven Seals for the MV Viking Drive (3,500 CEU), until February 2026. The agreed contract has a day rate of USD 30,000 for year 1, USD 28,000 for year 2, USD 25,000 for year 3, and USD 22,000 for the last 8 months, providing a total contract value of approximately USD 35.5 million.

Separately, in March, GCC, as the commercial manager, fixed the vessel Arabian Sea (5,000 CEU) on a sixyear charter to a major Asian operator. The vessel is one of four commercially managed by the company. GCC holds 1% ownership interest in the vessel. Total contract value is USD 71.2 million plus scrubber premium.

Cash-flow break even

The company estimates a cash flow breakeven rate of USD 14,600 per day per vessel going forward. The increase from the USD 13,420 per day communicated in the company update on 18 February 2022, reflects higher interest rates and an impact from refinancing. The average daily cash breakeven rates are the daily TCE rates the GCC fleet must earn to cover operating expenses including principal payment and interest on loans, lease payments and general and administrative expenses.

Covid-19

The Covid-19 pandemic has had limited impact on GCC's operations to date in 2022. The health and safety of its personnel is the company's main priority. Per 31 March 2022, 83% of maritime personnel has received their second dose of vaccine. GCC is closely monitoring the Covid-19 situation and the pandemic's potential to affect marine operations and business activities.

Corporate and financing

Gram Car Carriers ASA was admitted to trading on Euronext Growth Oslo on 31 January 2022 following a private placement of new shares raising the equivalent of USD 121 million in gross proceeds. The listing

followed the completion of asset transactions with the former Singapore corporate structure and F. Laeisz on 25 January. At the same time, GCC refinanced most of its corporate debt with a new five-year USD 222 million senior secured credit facility and an eight-year USD 70 million lease.

Existing shareholders contributed equity in kind on identical term as new investors in the private placement, which also included a share-based payment for two vessels acquired from F. Laeisz, Viking Passama and Viking Passero, both built in 2012 and with 5,000 CEU capacity.

The private placement was supported by five cornerstone investors including international industry names, with significant oversubscription for remaining shares on offer. Following the placement, GCC has over 50% free float and as of end-March, more than 650 shareholders including international investors with deep industry knowledge.

On 8 April, GCC refinanced the lease for the PCTC vessel Viking Drive.

On 25 April, GCC announced the formation of Global Auto Carriers AS (GAC) for the purpose of ordering four 7,000 CEU dual fuel Pure Car Truck Carriers from China Merchants Jinling Shipyard (Weihai) Co., Ltd, with options for an additional 2+2 vessels at the same yard. GAC is owned by established international industrial and financial investors with deep shipping knowledge which also are current shareholders of GCC.

GCC acted as commercial adviser during the formation of GAC. In consideration, GCC will receive warrants enabling an ownership stake in GAC of up to 7.5%, and a 1% commission of the gross contract price for the vessels which will be used to exercise warrants GCC will also serve as the commercial manager for the GAC fleet and will receive a lump sum management fee and a 1.0% commission on the time charter earnings of each of the vessels. Technical management and yard supervision will be provided by F. Laeisz GmbH. The shipbuilding contracts for the firm vessels are expected to be entered into early second quarter 2022, with delivery from the fourth quarter of 2025 through the fourth quarter of 2026. Three of the option vessels have delivery in 2027 and one in 2028.

By supporting GAC's' foundation, GCC has created additional revenue streams and the potential for a meaningful future equity stake without adding any capital expenditure in line with the strategy of being a vessel owner with long-term contracts and clear policy of returning capital to shareholders through quarterly dividends.

Market update

Macro and auto trends

Increase in economic activity and global GDP growth is expected to have a material impact on car sales volumes, which are estimated to reach the 2019 pre-pandemic levels in 2023 with 90.5 million vehicles sold (LMC Automotive). Car inventories are currently at record low levels indicating growing pent-up demand as inventories needs to be replenished. Supply disruptions are currently limiting sales in major markets. Initially due to the lack of semiconductors, but with the conflict in Ukraine, supply of wire harness to several European vehicle brands have also been affected. The result is demand exceeding supply, and increased delivery times for new cars.

The ongoing electrification of the car fleet implies earlier replacement cycles of the traditional combustion engine vehicles, contributing to an increase in car sales and increased car trade. The combination of customers and governments pushing for cleaner and lower-emission car transportation, and significant

technology and cost improvements for electrical vehicles are important drivers for the increasing share of the automobile fleet. China is expected to be a key player in this market with electrical vehicles having an estimated global share of about 50% of new cars sold by 2030. China has been expanding its auto-maker industry with giga-factories closely linked to major shipping hubs, such as Shanghai (the world's largest port). Strong electrical vehicle demand in Europe and North America, and a substantial share of global production capacity in China, is expected to increase Chinese exports and ton-mile demand accordingly.

The Russian invasion of Ukraine has impacted car sales in both countries but has limited impact on global auto trade and the demand for car carriers as cars sold in Russia and Ukraine are only to a limited extent carried by deep sea vessels. As global demand for vehicles is greater than supply, volumes previously intended for Russia and Ukraine are now brought to other markets. There has been some impact on activity in European short-sea traffic due to the conflict, especially for Baltic and Black Sea Trades. Several medium sized vessels have been positioned to Asia-based trades because of this.

The recent Covid-19 outbreaks in China, and especially in the Shanghai region, caused a three-week lock down for several Chinese vehicle manufacturers. Closures have also severely impact on port operations in Shanghai. Most plants are now back in operation, but subject to several public measures which are expected to pose logistical challenges. Data from Clarkson's show that Chinese vehicle exports fell 9% from February to March due to the impact of Covid-19. However, the March export of 194.000 units was still up 35% from March 2021.

Fleet development

In recent years, the car carrier fleet has had negative growth due to the natural phasing-out of tonnage nearing the end of commercial life, positively improving the supply-demand balance. At the same time the shipyard industry has experienced a significant increase in its orderbooks, especially for container and LNG vessels, leading to yards being fully booked until 2025 and effectively capping the supply of new vessels. Combined with an ageing PCTC fleet, with 21% being older than 20 years, the supply balance is looking favourable with high visibility for the next few years.

The global car carrier fleet amounted to 745 vessels at 31 March 2022. One new vessel vas delivered from yard in the quarter, with a further three scheduled for delivery later this year. The global order book of 61 vessels at 31 March equals 8.2% of the current fleet. This is up from 5.8% at year-end 2021 but remains significantly below a historical average of 17%. The delivery schedule of the current PCTC order book is considered insufficient to meet the estimated fleet replacement requirements through at least 2025. In the first quarter of 2022, three vessels left the market, MV Honor and MV Freedom were sold to the US Marine Administration, while the Felicity Ace caught fire and sank off the Azores.

The global fleet controlled by PCTC tonnage providers amounted to 180 vessels at end of March, unchanged from the end of 2021. No new vessels were delivered to tonnage providers in the quarter. Currently there are an estimated 22 vessels controlled by tonnage providers open for contract renewal for the remainder of 2022, this compares to 32 open vessels in mid-February.

Time charter rates

The combination of increased demand and limited vessels supply has led to a significant increase in TC rates.

Current 12-month TCE contract rates for Panamax vessels are estimated at USD 55,000 per day, up USD 20,000 YTD, according to data from Clarkson's. 12-month TCE rates for Midsize vessel are assessed at USD 45,000 per day, an increase of USD 19,500 YTD.

The company estimates the current 12-month TCE for Distribution vessels at USD 15,000 per day, also significantly up YTD.

Financial review

The reported condensed interim consolidated financial figures for the Gram Car Carriers Group presented below comprise revenue and expenses incurred for the full period 1 January 2022 – 31 March 2022. The carrying values of assets and liabilities represent a continuation of historical carrying values. Reference is made to note 1 – General information in the condensed interim consolidated financial statements.

Key figures

In USD thousands	Q1 2022
Operating revenue	23,534
EBITDA	12,691
EBIT	5,906
Profit/ (loss) for the period	2,081
Cash flow from operating activities	8,955
Cash and cash equivalents	22,948
Interest-bearing debt	333,005
Equity ratio	39%

Financial performance

First quarter 2022 operating revenue of USD 23.5 million reflected improved average time charter rates compared to prior periods, high vessel utilisation and the addition of two vessels to the fleet during the period.

Vessel operating expenses amounted to USD 9.4 million and administrative expenses were USD 1.5 million. All material costs related to the asset transactions, refinancing and Euronext Growth listing were capitalised in the quarter.

EBITDA was USD 12.7 million, and EBIT amounted to USD 5.9 million in the quarter. Net financial expenses of USD 3.8 million reflected mainly interest expense on vessel loans and leases.

Net income for the quarter was USD 2.1 million, equal to earnings of USD 0.07 per share.

Financial position

At 31 March 2022, GCC had a cash position of USD 22.9 million. Interest-bearing debt, including lease liabilities amounted to USD 333 million. Total assets and book equity were USD 562.1 million and USD 217.8 respectively, equivalent to a book equity ratio of 39%.

Cash flow

Cash flow from operating activities was USD 9 million. The difference from EBITDA in the quarter was due to increased working capital. Cash used in investing activities of USD 65.9 million reflected mainly the net impact of the asset transactions with the former Singapore corporate structure and the acquisition of two vessels from F. Laeisz. Cash flow from financing activities amounted to USD 63.9 million and reflected the net proceeds from issue of new shares in connection with the Euronext Growth listing and acquisition of the F. Laeisz vessels, as well as the net impact of the refinancing of the corporate debt facility and vessel leases. Net change in cash and cash equivalents was USD 7 million in the quarter.

Dividend

The Board of Directors has proposed a cash dividend of USD 0.036 per share for the first quarter of 2022. The distribution shall constitute a repayment of the Company's paid in capital subject to approval at the annual general meeting on 12 May 2022.

Outlook

As the world's third-largest tonnage provider within the PCTCs segment, GCC is well positioned to capture a historically strong market with long-term favourable supply demand dynamics. The strong market fundamentals are manifested in charter agreements with dayrates setting new industry standards combined with longer durations. This is reflected in the company's revenue backlog of USD 176 million. The company has 15% and 60% open days in 2022 and 2023, respectively, and several vessels coming up for contract renewals in coming months. The company expects to sign further contracts at increased dayrates to support future earnings growth and direct shareholder returns through attractive dividends.

Oslo, 27 April 2022

Board of Directors, Gram Car Carriers ASA

Condensed interim financial statements

The reported condensed interim consolidated financial figures for the Gram Car Carriers Group presented below comprise revenue and expenses incurred for the full period 1 January 2022 – 31 March 2022. The carrying values of assets and liabilities represent a continuation of historical carrying values. Reference is made to note 1 – General information in the condensed interim consolidated financial statements.

Consolidated statement of income (unaudited)

In USD thousands	Notes	Q1 2022	Q1 2021	2021
Operating revenue	6	23,534	16,600	78,029
Vessel operating expenses		(9,358)	(8,927)	(34,479)
Administrative expenses		(1,485)	(992)	(8,162)
EBITDA		12,691	6,681	35,388
Depreciation	7/8	(6,784)	(6,359)	(24,792)
Operating result (EBIT)		5,906	322	10,596
Financial income		92	-	339
Financial expenses		(3,918)	(4,155)	(18,402)
Profit/ (loss) before tax (EBT)		2,081	(3,834)	(7,466)
Income tax expense		-	-	(6)
Profit/ (loss) for the period		2,081	(3,834)	(7,472)
Attributable to:
Equity holders of the parent company		2,081	(3,843)	(7,935)
Non-controlling interests		-	9	463
		2,081	(3,834)	(7,472)
Earnings per share (USD):
Basic earnings per share		0.07
Diluted earnings per share		0.07

Consolidated statement of comprehensive income (unaudited)

In USD thousands	Notes	Q1 2022	Q1 2021	2021
Profit/ (loss) for the period		2,081	(3,834)	(7,472)
Exchange differences on translation of foreign operations		(8)	20	43
Total comprehensive income		2,073	(3,814)	(7,429)
Attributable to:
Equity holders of the parent company		2,073	(3,823)	(7,892)
Non-controlling interests		-	9	463

Consolidated statement of financial position (unaudited)

					01 Jan 2021
In USD thousands	Notes	31 Mar 2022	31 Mar 2021	31 Dec 2021	(IFRS)1
Assets		562,058	546,255	494,683	550,827
Non-current assets		532,747	487,392	474,635	492,679
Vessels and other tangible assets	7	369,590	420,992	410,605	425,546
Right-of-use assets	8	162,997	65,242	62,871	65,974
Other non-current assets		159	1,159	1,159	1,159
Current assets		29,312	58,862	20,049	58,147
Asset held for sale		-	42,669	-	42,669
Fuel and lubrication oil		2,161	2,043	1,738	2,633
Trade and other receivables		1,408	2,370	1,839	658
Cash and cash equivalents		22,948	10,857	15,960	11,571
Other current assets		2,794	923	512	617
Equity and liabilities		562,058	546,255	494,683	550,827
Equity	11	217,785	82,853	79,239	86,667
Non-current liabilities		283,196	140,503	121,397	399,639
Interest-bearing debt - non-current	9	193,839	68,003	63,437	327,970
Lease liabilities - non-current	10	89,357	46,919	30,477	46,712
Redeemable convertible loans		-	25,582	27,483	24,958
Current liabilities		61,078	322,899	294,048	64,520
Interest-bearing debt – current	9	24,200	266,484	263,323	4,413
Lease liabilities - current	10	25,610	48,364	16,902	48,439
Trade and other payables		9,094	5,890	10,596	9,700
Derivative financial instruments		-	163	98	163
Deferred income		2,174	1,431	3,129	1,238
Other current liabilities		-	567	-	567

¹ Reference is made to note 13 - First-time adoption of IFRS

Consolidated statement of changes in equity (unaudited)

			Retained		Non
	Share	Share	earnings/	Other	controlling
In USD thousands	capital	premium	(acc. losses)	equity	interests	Total
Equity at 1 January 2022	125	6,670	(166,695)	224,960	14,178	79,239
Conversion of convertible loans
Old Group shareholders	-	-	-	27,669	-	27,669
Capital increase - private
placement (cash)	3,623	62,259	-	-	-	65,882
Capital increase - private
placement (contribution in kind)	2,736	47,010	-	-	-	49,746
Capital increase – contribution
in kind (Old Group equity holders
and non-controlling interests)	3,173	54,520	-	(43,513)	(14,178)	-
Transaction costs	-	-	-	(7,314)	-	(7,314)
Estimated effect of liquidation
Old Group	-	-	-	491	-	491
Total comprehensive income for
the period	-	-	2,081	(8)	-	2,073
Equity at 31 March 2022	9,656	170,459	(164,614)	202,285	-	217,785
Equity at 1 January 2021	113	-	(158,759)	231,599	13,715	86,667
Capital increase – contribution
in kind (Gram Car Carriers
Management AS)	12	6,670	-	(6,681)	-	-
Total comprehensive income for
the period	-	-	(7,935)	43	463	(7,429)
Equity at 31 December 2021	125	6,670	(166,695)	224,960	14,178	79,239

Consolidated statement of cash flows (unaudited)

In USD thousands	Note	Q1 2022	Q1 2021	2021
Profit/ (loss) for the period		2,081	(3,834)	(7,466)
Financial (income)/ expenses		3,826	4,101	17,836
Depreciation		6,784	6,359	24,792
Income tax expense		-	-	(25)
Cash flow from operating activities before changes in
working capital		12,691	6,626	35,137
Changes in working capital:
Trade and other receivables		(423)	(1,713)	(1,181)
Fuel and lubrication oil		432	591	895
Other current assets		(2,282)	(307)	105
Other non-current assets		1,000	-	-
Trade and other payables		(1,507)	(2,986)	1,489
Deferred income		(955)	193	1,891
Cash flow from operating activities		8,955	2,404	38,335
Investment in vessels and other tangible fixed assets		(63,570)	(1,073)	(7,064)
Investment in right-of-use assets		(2,326)	-	-
Proceeds from sale of tangible fixed assets		-	-	42,669
Cash flow from investing activities		(65,896)	(1,073)	35,605
Proceeds from issue of shares		108,314	-	-
Proceeds from issue of debt		217,885	-	-
Proceeds from sale-lease-back financing		70,000	-	-
Repayment of debt		(326,656)	-	(7,393)
Repayment of lease liability		(2,412)	(89)	(48,140)
Interest paid on interest-bearing debt		(1,712)	(1,142)	(11,157)
Interest paid on lease liabilities		(1,460)	(834)	(2,904)
Other financial items		(27)	20	43
Cash flow from financing activities		63,930	(2,045)	(69,551)
Net change in cash and cash equivalents		6,988	(714)	4,389
Cash and cash equivalents at beginning of period		15,960	11,571	11,571
Cash and cash equivalents at end of period		22,948	10,857	15,960

Notes to the condensed interim consolidated financial statements (unaudited)

Note 1 – General information

Gram Car Carriers ASA (the 'Company') is a public limited liability company (Norwegian: allmennaksjeselskap) incorporated and domiciled in Norway, with registered address at Bryggegata 9, 0250 Oslo, Norway. The Company was incorporated on 3 August 2021. These consolidated financial statements comprise the Company and its subsidiaries (together referred to as the 'Group'). The principal activities of the Group is to invest in and to operate maritime assets in the pure car and truck carrier shipping ('PCTC') segment. The shares of the Company are listed on Euronext Growth under the ticker 'GCC'.

The Company was a wholly owned subsidiary of Gram Car Carriers Holding Pte. Ltd. until January 2022, and the Group was established in its current form through a series of linked transactions completed in January 2022:

• i. The acquisition by the Group of all activities of Gram Car Carriers Holdings Pte. Ltd. and its subsidiaries ('Old Group');
• ii. The acquisition of two PCTC vessels from a third party, settled with a combination of cash and shares;
• iii. The injection of USD 173.3 million in new equity, of which USD 71.3 million in cash and USD 102.0 million as contribution in kind. The latter comprise USD 57.7 million contribution in kind from shareholders of Gram Car Carriers Holdings Pte. Ltd. and non-controlling interests in its subsidiaries and the remaining USD 44.3 million representing part consideration for the two PCTC vessels acquired from a third party and settled by issuing shares (contribution in kind); and
• iv. New debt raised to settle Old Group's existing debt and partial financing of the two additional PCTC vessels acquired.

This series of linked transactions is for accounting purposes considered as a restructuring and refinancing of the Old Group, together with an issue of new shares (capital increase). This implies that the carrying values of assets and liabilities in the Old Group will be recognised in the Group in Q1 2022 (with Old Group figures as comparable figures for 2021).

As per 31 March 2022 the Group operates 18 PCTC vessels, of which 14 are owned vessels and 4 are leased vessels.

Note 2 – Basis for preparation

The interim consolidated financial statements for the period 1 January 2022 – 31 March 2022 are prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ('IASB') and as adopted by the European Union. These are the first financial statements prepared in accordance with IFRS, and IFRS 1 First-time adoption of IFRS has been applied. Reference is made to note 13 for the effects of the transition to IFRS. The date of transition was 1 January 2021.

The financial statements have not been subject to audit and do not include all information and disclosures required in the annual financial statements.

The financial statements are based on historical cost except as disclosed in the accounting policies below.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and consolidation is continued until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same accounting period as the Company, using consistent accounting principles for similar transactions and events under otherwise similar circumstances.

All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated.

Non-controlling interests represent the portion of comprehensive income and net assets that is not held by the Group and are presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from the Company's shareholders' equity.

The financial statements are presented in US Dollar (USD), which is the functional currency of the Company and the Group. Amounts are rounded to the nearest thousand, unless otherwise stated.

The consolidated financial statements are prepared based on the assumption of going concern.

Only standards and interpretations that are applicable to the Group have been included and the Group reviews the impact of these changes in its financial statements. The Group will adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the consolidated financial statements are issued.

Note 3 – Significant accounting policies

Revenue recognition

Time charter revenue generated from time charter parties with customers are accounted for in accordance with IFRS 16 and IFRS 15 and classified under operating revenue in the income statement net of commissions. The Group's time charter parties normally have a duration of 6 months to 5 years and a significant portion of the risks and rewards of ownership are retained by the lessor, hence the lease is classified as operating lease.

Time charter revenue is recognised in the income statement on a straight-line basis over the period of the time charter contract unless another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished. Amount received in advance and unearned at the end of the reporting period is not recognised in the income statement and instead taken up as deferred revenue in the statement of financial position.

Operating expenses

Operating expenses are accounted for on an accrual basis. Expenses are charged to the income statement, except for those incurred in the acquisition of an investment which are capitalised as part of the cost of the investment. Expenses arising on the disposal of investments are deducted from the disposal proceeds.

Vessel operating expenses of the Group are expenses related to the operation of vessels, such as (but not limited to) crewing expenses, expenses for repair and maintenance, lubrication oil consumption and insurance.

Financial income and expenses

Interest income and expense is recognised as accrued and is presented under the financial income or expense in the income statement.

Foreign currency transactions

Transactions in foreign currencies are recorded in the functional currency rate at the date of the transaction. Monetary assets and liabilities in foreign currency are translated at the functional currency rate prevailing at the balance sheet date. Exchange differences arising from translations into functional currency are recorded in the income statement. Non-monetary assets and liabilities measured at historical cost in foreign currency are translated into the functional currency using the historical exchange rate. Non-monetary assets and liabilities recognised at fair value are translated using the exchange rate on the date of the determination of the fair value.

For subsidiaries with functional currencies other than USD, financial position items are translated at the rate of exchange at the balance sheet date, and income statements are translated at the exchange rate prevailing at the date of the transaction. Exchange differences arising on the translation are recognized in other comprehensive income as foreign currency differences.

Vessels and other tangible assets

Tangible fixed assets are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include expenditures that are directly attributable to the acquisition of the vessels and eligible for capitalisation. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, is separately identified and depreciated over that component's useful life on a straight-line basis.

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. The estimated useful life of the Group's vessels is 30 years. Residual values of the vessels are estimated as the lightweight tonnage of each vessel multiplied by scrap value per ton. Expected useful lives of assets, and residual values, are reviewed at each balance sheet date and, where they differ significantly from previous estimates, depreciation calculations are altered accordingly.

Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.

Vessels and other tangible assets are derecognised upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognised.

Impairment of vessels and other tangible assets

Vessels and other tangible assets are assessed for impairment indicators each reporting period. If impairment indicators are identified, the recoverable amount is estimated, and if the carrying amount exceeds its recoverable amount an impairment loss is recognised, i.e. the asset is written down to its recoverable amount. An asset's recoverable amount is calculated as the higher of the net realisable value and its value in use. The net realisable value is the amount obtainable from the sale of an asset in an arm's length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset. An impairment loss recognised in prior periods for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised.

Leases

Group as lessee (right-of-use assets)

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

Group as lessor

The Group enters into lease agreements as a lessor with respect to its vessels under operating leases to non-related parties.

Leases where substantially all risks and rewards incidental to ownership are retained by the lessor are classified as operating leases. Charter income received under operating leases (net of any incentives given to lessee) is recognised in profit or loss on a straight-line basis over the period of the lease term.

Inventories

The Group values its inventories, which comprise mainly of lubrication oil and fuel on board the vessels, at the lower of cost and net realisable value. They are accounted for on a first-in/first-out basis.

Trade and other receivables

Trade and other receivables are measured at transaction price upon initial recognition and subsequently measured at amortized cost less expected credit losses.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank deposits and other highly liquid investments with original maturities of three months or less.

Share issuance

Share issuance costs related to a share issuance transaction are recognised directly in equity. If share issuance costs, for tax purposes, can be deducted from other taxable income in the same period as they are incurred, the costs are recognised net after tax.

Earnings per share

The Group presents basic and diluted earnings per share data for its ordinary shares.

Basic earnings per share are calculated by dividing the profit for the reporting period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period.

Diluted earnings per share are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

Dividends

Dividends are recognised as a liability in the Group's financial statements from the date when the dividend is approved by the General Meeting.

Financial liabilities

All loans and borrowings are initially measured at fair value less directly attributable transaction costs, and are subsequently measured at amortized cost, using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral

part of the effective interest rate. A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, when it is more likely than not that an outflow or resources representing economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Fair value measurement

Derivative financial instruments are measured at fair value. The fair value of financial instruments traded in active markets is determined by reference to quoted market prices or dealer price quotations, without any deduction for transaction costs. The fair value of financial instruments not traded in active markets is determined using appropriate evaluation techniques.

Taxes

The Company is subject to ordinary Norwegian taxation. Tax expense comprises tax payable and deferred tax expense. Tax payable is measured at the amount expected to be paid to authorities while deferred tax assets/liabilities are calculated based on temporary differences at the reporting date. Deferred tax assets are recognised to the extent that it is probable that they can be utilized in the future. Deferred tax liabilities/deferred tax assets within the same tax system that can be offset are recorded on a net basis. Income tax relating to items recognised directly in equity is included directly in equity and not in the statement of income.

The vessel owning subsidiaries in the Group are subject to taxation under the Norwegian tonnage tax regime. Under the tonnage tax regime, profit from operations is exempt from taxes. Taxable profit is calculated on the basis of financial income after deduction of a portion of financial expenses. The portion is calculated as financial assets in percent of total assets. Tonnage tax is payable based on the net tonnage of vessels. Tonnage tax is classified as an operating expense.

Related parties

Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence. Related party transactions are recorded to estimated fair value.

Employee benefits

The Group is required to provide a pension plan towards its employees, and the Group has implemented a defined contribution plan. The plan complies with the requirements in the Mandatory Occupational Pension act in Norway ("Lov om obligatorisk tjenestepensjon"). A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate legal entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments are available.

Classification in the statement of financial position

Current assets and short-term liabilities include items due less than one year from the balance sheet date, as well as items due more than one year from the balance sheet date, that are related to the operating cycle.

Liabilities with maturity less than one year from the balance sheet date are classified as current. All other debt is classified as long-term debt. Long-term debt due for repayment within one year from the balance sheet date is classified as current.

Statement of cash flows

The statement of cash flows has been prepared based on the indirect method.

Subsequent events

New information on the Group's financial position at the balance sheet date is taken into account in the financial statements. Subsequent events that do not affect the Group's position at the balance sheet date, but which will affect the Group's position in the future, are disclosed if significant.

Note 4 - Critical accounting judgements and key sources of estimation uncertainty

The preparation of consolidated financial statements for the Group and application of the accounting policies, which are described in Note 3, requires judgements, estimates and assumptions to be made about the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. Actual outcomes may differ from these estimates and assumptions and could require a material adjustment to the carrying amount of the asset or liability affected in future periods. Estimates and underlying assumptions are reviewed on an on-going basis.

Judgements

Management is of the opinion that any instances of application of judgement are not expected to have a significant effect on the amounts recognised in the financial statements (apart from those involving estimations, which are disclosed below).

Assumptions and estimation uncertainties

The following assumptions and estimation uncertainties can have a significant risk of resulting in a material adjustment to the carrying amounts of assets:

i. Depreciation, useful lives and residual values of vessels

Depreciation is based on estimates of the vessels' useful lives, residual values, scrapping costs and depreciation method, which are reviewed at each balance sheet date. Any changes in estimated useful lives and/or residual values impact the depreciation of the vessels prospectively.

ii. Impairment of vessels

Indicators of impairment of assets are assessed at each reporting date. The impairment assessments demand a considerable degree of estimation. Changes in circumstances and assumptions may significantly affect the estimated recoverable amounts. The Group's impairment test for operating vessels is based on the value in use as assessed by performing discounted cash flow calculations. Value in use calculations involve a high degree of estimation and a number of critical assumptions such as time charter rates, operational expenses, residual values and discount rates.

Note 5 – Segment information

All the Group's vessels can be categorised in the pure car and truck carrier (PCTC) shipping segment and exhibit similar technical, trading, economic and financial characteristics, and charter parties entered into with customers are typically for global operation of the vessels.

Note 6 – Operating revenue

Total operating revenue	23,534	16,600	78,029
Other income	-	-	1,951
Management fees and time charter hire commissions	97	100	423
Time charter hire commissions	(436)	(225)	(1,055)
Time charter revenue	23,873	16,725	76,710
In USD thousands	Q1 2022	Q1 2021	2021

The Group's vessels earn revenue from time charter parties entered into with operators providing services related to the seaborne transportation of vehicles and equipment. All vessels fall under the PCTC ship category and exhibit similar economic, trading, and financial characteristics.

Note 7 – Vessels and other tangible assets

Details of the Group's vessels and other tangible assets at 31 March 2022 are as follows:

In USD thousands	Vessels	Equipment	Total
Acquisition cost at 1 January 2022	685,214	27	685,241
Additions – Acquisition of vessels	61,628	-	61,628
Additions – Drydocking	1,293	-	1,293
Additions – Technical upgrade	649	-	649
Disposals of vessels	(127,273)	-	(127,273)
Acquisition cost 31 March 2022	621,511	27	621,538
Acc. depreciation and impairment at 1 January 2022	(274,630)	(6)	(274,636)
Depreciation for the period	(4,720)	-	(4,720)
Disposals	27,410	-	27,410
Acc. depreciation and impairment at 31 March 2022	(251,940)	(6)	(251,946)
Carrying amount at 31 March 2022	369,570	20	369,590
Acquisition cost at 1 January 2021	679,000	12	679,012
Additions – Drydocking	3,990	-	3,990
Additions – Technical upgrade	2,224	-	2,224
Additions	-	15	15
Acquisition cost 31 December 2021	685,214	27	685,241
Acc. depreciation and impairment at 1 January 2021	(253,461)	(5)	(253,466)
Depreciation for the period	(21,169)	(2)	(21,171)
Disposals
Acc. depreciation and impairment at 31 December 2021	(274,630)	(6)	(274,636)
Carrying amount at 31 December 2021	410,584	20	410,605

During Q1 2022 12 vessels were acquired from Gram Car Carriers Holdings Pte. Ltd. and its subsidiaries (Old Group). Prior to the private placement and capital increase carried out in January 2022, the Company was a wholly owned subsidiary of Gram Car Carriers Holdings Pte. Ltd. The acquisition of these vessels has been

accounted for on a continuing basis, meaning the carrying amounts from the Old Group have been adopted by the Group, ref note 1.

During Q1 2022 another two vessels were acquired from a third party for a total consideration of USD 61,628,000 with partial payment in cash and newly issued shares.

At each reporting date, the Group evaluates whether there is an indication that an asset may be impaired. An assessment of the recoverable amount is made when an impairment indicator exists. At 31 March 2022 no such indicators have been identified.

Vessels include dry-docking and technical upgrades. The carrying amount for dry-docking was USD 7,442,000 at 31 March 2022 (31 December 2021: USD 7,892,000).

Note 8 – Right-of-use assets

Details of the Group's right-of-use assets at 31 March 2022 are as follows:

		Office
In USD thousands	Vessels	premises	Total
Acquisition cost at 1 January 2022	77,113	1,537	78,650
Additions – Acquisition of vessels	99,864	-	99,864
Additions – Drydocking	523	-	523
Additions – Technical upgrade	8	-	8
Additions – Transaction costs	1,795	-	1,795
Acquisition cost 31 March 2022	179,303	1,537	180,840
Acc. depreciation and impairment 1 January 2022	(14,743)	(1,036)	(15,779)
Depreciation for the period	(1,994)	(69)	(2,063)
Acc. depreciation and impairment at 31 March 2022	(16,737)	(1,105)	(17,842)
Carrying amount at 31 March 2022	162,566	431	162,997
Acquisition cost at 1 January 2021	126,690	1,287	127,977
Additions – Drydocking	803	-	803
Additions – Technical upgrade	32	-	32
Additions	-	249	249
Disposals of right-of-use assets	(50,412)	-	(50,412)
Acquisition cost 31 December 2021	77,113	1,537	78,650
Acc. depreciation and impairment 1 January 2021	(18,658)	(676)	(19,334)
Depreciation for the period	(3,827)	(360)	(4,187)
Disposals	7,743	-	7,743
Acc. depreciation and impairment at 31 December 2021	(14,743)	(1,036)	(15,779)
Carrying amount at 31 December 2021	62,370	501	62,871

As at 31 March 2022 the Group operates 4 leased PCTS vessels. The lease agreements for these vessels were entered into on 25 January 2022 when the Group assumed the existing leases originally held by Gram Car Carriers Holdings Pte. Ltd. and its subsidiaries (Old Group). Prior to the private placement and capital increase carried out in January 2022, the Company was a wholly owned subsidiary of Gram Car Carriers Holdings Pte. Ltd. The assumption of the leases for these vessels has been accounted for on a continuing basis, meaning the carrying amounts from the Old Group have been adopted by the Group, ref note 1.

At each reporting date, the Group evaluates whether there is an indication that an asset may be impaired. An assessment of the recoverable amount is made when an impairment indicator exists. At 31 March 2022 no such indicators have been identified.

Vessels include dry-docking and technical upgrades. The carrying amount for dry-docking was USD 2,310,000 at 31 March 2022 (31 December 2021: USD 758,000).

Transaction costs amounting to USD 1,795,000 have been capitalised under right-of-use assets in connection with the assumption of leases during Q1 2022.

Subsequently to the reporting date the Group has refinanced the Viking Drive (right-of use asset) and entered into a USD 15 million senior secured credit facility agreement to refinance the vessel ref note 12.

Note 9 – Interest-bearing debt

Details of the Group's interest-bearing debt at 31 March 2022 are as follows:

		Facility			Out
USD thousands	Currency	amount	Interest	Maturity	standing
USD 222m senior secured credit facility	USD	222,000	2.95%	Jan 2027	222,000
Amortised debt issuance costs					(3,961)
Total interest-bearing debt at 31 March 2022					218,039

During Q1 2022 the Group entered into a USD 222 million senior secured credit facility agreement for the financing of 13 PCTC vessels acquired by the Group, ref note 7.

As per 31 March 2022, the Group is in compliance with all financial covenants and value maintenance tests, including value adjusted equity of minimum 35% and at all times USD 50 million; minimum cash of no less than the greater of 5% of total interest-bearing debt outstanding and USD 10 million; and fair market value of at least 130% of interest-bearing debt outstanding.

Details of the Group's contractual maturities of interest-bearing debt on a non-discounted basis as at 31 March 2022 are as follows:

	Due within	12-24	24-36	36-48	Due after
USD thousands	12 months	months	months	months	31 Mar 2026
Interest-bearing debt	24,200	24,200	24,200	24,200	125,200

Subsequent to the balance sheet date, the Group has entered into a USD 15 million senior secured term loan facility agreement for the refinancing of one of its leased vessels, Viking Drive, ref note 12.

Note 10 – Lease liabilities

Details of the Group's interest-bearing debt at 31 March 2022 are as follows:

		Facility			Out
USD thousands	Currency	amount	Interest	Maturity	standing
Lease (Viking Adventure/Viking Bravery)	USD	70,000	4.00%	Nov 2029	68,760
Lease (Viking Destiny)	USD	41,702	3.85%	Mar 2027	32,146
Lease (Viking Drive)	USD	21,000	4.50%	May 2022	13,619
Other lease liabilities					443
Total lease liabilities at 31 March 2022					114,967

During Q1 2022 the Group entered into a USD 70 million sale-and-lease-back financing for two PTCS vessels, Viking Adventure and Viking Bravery. The transaction was completed on 25 January 2022 and existing financing on the vessels were fully repaid on the same date.

As per 31 March 2022, the Group is in compliance with all financial covenants and value maintenance tests, including value adjusted equity of minimum 35% and at all times USD 50 million; minimum cash of no less than the greater of 5% of total interest-bearing debt outstanding and USD 10 million; and fair market value of at least 125% of interest-bearing debt outstanding.

The Group has subsequently to the balance sheet date completed a refinancing of the lease for Viking Drive, whereby the Group has exercised a purchase option and entered into senior secured credit facility agreement to finance the vessel, ref note 12.

Details of the Group's contractual maturities of lease liabilities on a non-discounted basis as at 31 March 2022 are as follows:

	Due within	12-24	24-36	36-48	Due after
USD thousands	12 months	months	months	months	31 Mar 2026
Lease liabilities	25,610	8,609	9,058	9,335	62,353

Note 11 – Share capital

In USD	No. of shares	Share capital
1 January 2022	10,000,000	125
Reverse split (26.497:1)	(9,622,605)	-
	377,395	125
Share capital increase 17 January 2022	10,774,182	3,623
Share capital increase 17 January 2022	17,570,227	5,909
31 March 2022	28,721,804	9,656
3 August 2021 (date of incorporation)	1,000,000	113
Shares capital increase 12 October 2021 (reduction par value)	-	12
Split par value (1:10)	9,000,000	-
31 December 2021	10,000,000	125

On 17 January 2022, the Board of Directors had proposed, and EGM of the Company resolved to carry out a reverse split of the Company's shares in the ratio 26.4974 to 1, whereby the par value was increased from NOK 0.11 to NOK 2.9147. The number of shares was reduced from 10,000,000 to 377,395 following the reverse split.

Following the private placement in connection with the listing of the Company's shares on Euronext Growth and the acquisition of 18 PCTC vessels, capital increases were proposed by the Board of Directors and resolved by the EGM of the Company on 17 January 2022 whereby the share capital was increased by NOK 82,615,959 from NOK 1,100,000 to NOK 83,715,959 by issuance of 28,344,409 new shares, each with a par value of NOK 2.9147. The shares were subscribed for at a price of NOK 53.00, whereof the amount of NOK 1,419,637,718 was transferred to share premium. 16,687,124 of the new shares were issued as part of the consideration paid for the 18 vessels acquired.

At 31 March 2022 the share capital of the Company consists of 28,721,804 shares with par value per share of NOK 2.9147. All issued shares are of equal rights and are fully paid up.

Note 12 – Subsequent events

The Group has subsequently to the balance sheet date completed a refinancing of a lease for the PCTC vessel Viking Drive, whereby the Group has exercised a purchase option and entered into a USD 15 million senior secured credit facility agreement to finance the vessel. Collateral under the facility comprises the two PCTC vessels Viking Drive and Viking Princess. The purchase price for the vessel consists of the lease liability less a USD 1 million junior loan owed to the Group by the lessor. The transaction was completed on 8 April 2022. Upon completion of the transaction the vessel will be reclassified from right-of-use assets to vessels and other tangible assets.

Subsequently to the balance sheet date GCC has announced the formation of Global Auto Carriers AS (GAC) for the purpose of ordering four 7,000 CEU dual fuel PCTC vessels from China Merchants Jinling Shipyard (Weihai) Co., Ltd, with options for an additional 2+2 vessels. GAC is owned by established international industrial and financial investors with deep shipping knowledge which also are current shareholders of GCC.

GCC has acted as commercial adviser during the formation of GAC. In consideration, GCC will receive warrants enabling an ownership stake in GAC of up to 7.5%, and a 1% commission of the gross contract price for the vessels which will be used to exercise warrants. GCC will also serve as the commercial manager for the GAC fleet and will receive a lump sum management fee and a 1.0% commission on the time charter earnings of each of the vessels.

Note 13 – First-time adoption of IFRS

The interim consolidated financial statements for the period 1 January 2022 – 31 March 2022 are the first financial statements the Group has prepared in accordance with IFRS. Comparable figures for periods up to and including the year ended 31 December 2021 (ref note 1 and 2) were prepared in accordance with Singapore Financial Reporting Standards ('Singapore FRS').

Accordingly, the Group has prepared financial statements that comply with IFRS, applicable as of 31 March 2022, together with the comparative period figures for the year ended 31 December 2021. In preparing the financial statements, the Group's opening statement of financial position was prepared as of 1 January 2021, the Group's date of transition to IFRS. This note explains the principal adjustments made by the Group in restating its Singapore FRS financial statements, including the statement of financial position as of 1 January 2021 and the income statement for the year ended 31 December 2021.

The broad policy intention of the Accounting Standards Council (Singapore) is to adopt the International Financial Reporting Standards issued by IASB. There are no adjustments made in restating the financial statements as described above.

Statement of financial position at 1 January 2021

	Singapore
In USD thousands	FRS	Adjustments	IFRS
Assets	550,827	-	550,827
Non-current assets	492,679	-	492,679
Vessels and other tangible assets	425,546	-	425,546
Right-of-use assets	65,974	-	65,974
Other non-current assets	1,159	-	1,159
Current assets	58,147	-	58,147
Asset held for sale	42,669	-	42,669
Fuel and lubrication oil	2,633	-	2,633
Trade and other receivables	658	-	658
Cash and cash equivalents	11,571	-	11,571
Other current assets	617	-	617
Equity and liabilities	550,827	-	550,827
Equity	86,667	-	86,667
Non-current liabilities	399,639	-	399,639
Interest-bearing debt - non-current	327,970	-	327,970
Lease liabilities - non-current	46,712	-	46,712
Redeemable convertible loans	24,958	-	24,958
Current liabilities	64,520	-	64,520
Interest-bearing debt – current	4,413	-	4,413
Lease liabilities - current	48,439	-	48,439
Trade and other payables	9,700	-	9,700
Derivative financial instruments	163	-	163
Deferred income	1,238	-	1,238
Other current liabilities	567	-	567

Statement of financial position at 31 December 2021

Singapore
FRS	Adjustments	IFRS
494,683	-	494,683
474,635	-	474,635
410,605	-	410,605
62,871	-	62,871
1,159	-	1,159
20,049	-	20,049
1,738	-	1,738
1,839	-	1,839
15,960	-	15,960
512	-	512
494,683	-	494,683
79,239	-	79,239
367,067	-	367,067
309,107	-	309,107
30,477	-	30,477
27,483	-	27,483
48,378	-	48,378
17,653	-	17,653
16,902	-	16,902
10,596	-	10,596
98	-	98

Reconciliation of total comprehensive income for the year ended 31 December 2021

	Singapore
In USD thousands	FRS	Adjustments	IFRS
Operating revenue	78,029	-	78,029
Vessel operating expenses	(34,479)	-	(34,479)
Administrative expenses	(8,162)	-	(8,162)
EBITDA	35,388	-	35,388
Depreciation	(24,792)	-	(24,792)
Operating result (EBIT)	10,596	-	10,596
Financial income	339	-	339
Financial expenses	(18,402)	-	(18,402)
Profit/ (loss) before tax (EBT)	(7,466)	-	(7,466)
Income tax expense	(6)	-	(6)
Profit/ (loss) for the period	(7,472)	-	(7,472)
Exchange differences on translation of foreign operations	43	-	43
Total comprehensive income	(7,429)	-	(7,429)

Deferred income 3,129 - 3,129

Alternative performance measures and glossary

The Group's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The Group presents certain financial measures using alternative performance measures (APMs) not defined in the IFRS reporting framework. The Group believes these APMs provide meaningful information about operational and financial performance. Relevant APMs include the following and are defined below.

Time charter (TC): A contract for the hire of a vessel for a specific period; the owner supplies the vessel and crew, the charterer selects the ports, route and vessel speed. The charterer pays for all fuel the vessel consumes, port charges, commissions, and a daily hire (TC-rate) to the owner of the vessel.

Average time charter (TC) rate per day/ time charter equivalent (TCE): Average TC rate per day or TCE represents charter revenue divided by the number of trading days for the Group's vessels or a selection of the Group's vessels during a given reporting period. Trading days include all days whilst the vessel is under the Group's ownership except days when the vessel is idle or off-hire and not generating revenue.

Average operating expense ('OPEX') per day: Average OPEX per day is calculated as total operating expenses for the Group's vessels or a selection of the Group's vessels during a given reporting period (including vessel running expenses and insurance premiums) divided by days during the period.

Break-even TC rate per day: Break-even TC rate per day represents average OPEX per day (including insurance) with the addition of debt servicing costs, including interest and principal repayments applicable for the relevant vessels and an allocation of administrative expenses.

Utilisation: Represents total vessel trading days (idle and off-hire days not included) divided by total days during the relevant period.

Planned/unplanned off-hire: Planned off-hire includes planned off-hire days in connection with dry docking and also three days off-hire per vessel per year to carry out repairs and maintenance that cannot be carried out during normal trading of the vessels.

Contract backlog: The aggregate value of firm contracts with agreed time charter rate, terms and/or conditions and where revenue is yet to be recognised.

EBITDA: Profit/(loss) for the period before net financial items, income tax expense, depreciation and amortization.

Firm contract: Customer commits to a fixed long-term contract at a specified time charter rate

PCC/PCTC: Pure car carrier/Pure car and truck carrier

CEU: Car Equivalent Units

Panamax: Capacity 6,000+, serving east-west trade-lanes crossing the canals and major oceans

Mid-size: Capacity 3,500-5,999 CEU, serving north-south trade-lanes intra continents

Distribution ships: Capacity up to 3,500 CEU, serving regional markets like Northern Europe and Caribbean

Forward looking statement

This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, the Company uses words such as "ambition", "continue", "could", "estimate", "expect", "believe", "focus", "likely", "may", "outlook", "plan", "strategy", "will", "guidance" and similar expressions to identify forward-looking statements. All statements other than statements of historical fact, including, among others, statements regarding plans and expectations with respect to Gram Car Carrier's development and returns, balance sheet and long-term underlying earnings growth; market outlook and future economic projections and assumptions; capital expenditure guidance; production guidance; development and construction activities; projected unit of production cost; accounting decisions and policy judgments, ability to put new facilities into profitable production, and the impact thereof; expected dividend payments; estimated provisions and liabilities; planned acquisitions and divestments; and the projected impact or timing of administrative or governmental rules, standards, decisions or laws, including with respect to and future impact of legal proceedings are forward-looking statements.

You should not place undue reliance on these forward- looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing; price and availability of alternative fuels; currency exchange rate and interest rate fluctuations; the political and economic policies of operating countries; general economic conditions; political and social stability and economic growth in relevant areas of the world; global political events and actions; economic sanctions, security breaches; changes or uncertainty in or non-compliance with laws and governmental regulations; the timing of bringing new plants on stream; an inability to exploit growth or investment opportunities; material differences from reserves estimates; an inability to find and develop new plants; ineffectiveness of crisis management systems; adverse changes in tax regimes; the development and use of new technology; geological or technical difficulties; operational problems; operator error; inadequate insurance coverage; the lack of necessary transportation infrastructure when a field is in a remote location and other transportation problems; the actions of competitors; the actions of partners; the actions of governments; counterparty defaults; natural disasters and adverse weather conditions, climate change, and other changes to business conditions; an inability to attract and retain personnel; relevant governmental approvals; industrial actions by workers and other factors discussed elsewhere in this report. For additional information on risk factors see the information document to Euronext Growth dated 28 January 2022 available at www. gramcar.com.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot assure that its future results, level of activity, performance or achievements will meet these expectations. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, the Company undertakes no obligation to update any of these statements after the date of this report, whether to make them either conform to actual results or changes in our expectations or otherwise.

Gram Car Carriers ASA Bryggegata 9 (Aker Brygge), 0250 Oslo, Norway Phone: +47 22 01 74 50 E-mail: mail@gramcar.com

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Interim report Q1 2022