LOGWIN AG

Annual Report • Mar 3, 2022

Logwin AG Annual Financial Report 2021

Key Figures 1 January - 31 December 2021

Earnings position	2021	2020
In thousand EUR
Revenues
Group	1,851,836	1,123,297
Change on 2020	64.9%
Air + Ocean	1,517,017	789,703
Change on 2020	92.1%
Solutions	337,041	333,927
Change on 2020	0.9%
Operating Result (EBITA)
Group	100,940	47,752
Margin	5.5%	4.3%
Air + Ocean	107,966	49,060
Margin	7.1%	6.2%
Solutions	6,123	6,554
Margin	1.8%	2.0%
Net result
Group	63,510	34,734
Financial position	2021	2020
In thousand EUR
Operating cash flows	125,894	67,744
Free cash flow	88,593	18,577
Net asset position	31 Dec 2021	31 Dec 2020
Equity ratio	35.4%	39.1%
Net liquidity (in thousand EUR)	168,363	77,510
	31 Dec 2021	31 Dec 2020
Number of employees	4,087	4,160

This document is a translation of the German original annual financial report of Logwin AG for the year ended 31 December 2021 as well as the report by the Réviseur d'Enterprise Agrée thereon. In case of any deviation between the German original version and the translated version the German version is prevail.

Group Management Report

General information on the Logwin Group

Business model

Logwin Group The Logwin Group offers its customers global logistics and transport solutions in its business segments Air + Ocean and Solutions. In doing so, Logwin combines the advantages of an internationally established logistics group with those of a flexible, medium-sized company.

Air + Ocean business segment The Air + Ocean business segment provides worldwide logistics and transport solutions with a focus on intercontinental air and ocean freight, frequently in connection with upstream and downstream value added services. With its global network of group subsidiaries and longterm partners, Logwin is present at the customer's locations and aims to ensure the highest possible standards of quality and security for logistics chains worldwide.

Solutions business segment As a specialist in contract logistics, the Solutions business segment offers individual customer and industry-oriented solutions, particularly in the retail and consumer goods sector as well as in the automotive sector and industrial contract logistics - the solutions range from supply chain management, transportation and warehousing to value added services and complete outsourcing projects. The business segment also maintains a transport network for customers in the field of fashion and consumer goods.

With customer-specific combinations of individual logistics services, the Logwin Group manages the supply chains between suppliers and consumers, either partially or as a whole. Comprehensive supply chain management, warehousing, value added services and transportation by road, rail, air or ocean freight are the key elements of the services provided by the various entities of the Logwin Group. A worldwide uniform IT infrastructure with its own data centers in Europe and Asia supports globally harmonized processes and simple connections in addition to ensuring compliance with steadly rising quality, security and compliance requirements.

Logwin AG is listed on the Frankfurt Stock Exchange. The majority shareholder is DELTON Logistics S.à r.l., Grevenmacher (Luxembourg).

Financial performance management

The Logwin Group controls its financial situation by means of various key performance indicators (KPI) that management believes are relevant for measuring performance of the operations, the financial position and cash flows as well as in decision making. Basically the KPls are intended to preserve a balance between profitability, an effective use of resources and sufficient liquidity. The monthly, quarterly and annual changes in these indicators are compared with the prior year and the forecast/ budget data to assist in making management decisions. Furthermore, several KPIs are also particularly relevant for calculating management remuneration.

Unless defined in the relevant accounting standards, the methods of their calculation are described below in line with the European Securities and Markets Authority's (ESMA) Guidelines on Alternative Performance Measures (APM) dated 5 October 2015:

Profitability Revenues – as defined by the applicable standards – are in general a key financial earnings figure and thus also an important measure for the Logwin Group as it reflects the ability of selling products and services on the market. This measurement is suitable especially in Logwin's transactionbased logistics businesses as well as its use as a starting point for further volume and quantity-analysis. In addition, revenues are an indicator for corporate development (growth) and with some limitations a suitable cash-flow-oriented success factor (pay-sensitivity of revenues).

The operating result before goodwill impairment – EBITA (earnings before interest, taxes and amortization) - measures the operating profitability of the Group and of the individual business segments and is the key performance indicator of profitability of the Logwin Group. EBITA is derived from revenues less cost of sales as well as selling, general and administrative costs. It also includes other operating expenses and income, impairment losses on non-current assets (excluding goodwill) as well as impairments on financial assets measured at amortized cost that are shown separately. In the management's opinion EBITA is most suitable to make Logwin Group's performance illustratable and comparable as it presents the advantage to consistently include the consumption of fixed assets as depreciation is recognized whereas volatile goodwill impairment is excluded.

The net result is another key performance indicator for the Logwin Group and provides a comprehensive measure of the Group's overall performance after interest and a transparent basis for comparing overall performance, particularly over time. The net result is calculated based on the income statement and thus is defined by the relevant accounting standards (referred to as "profit or loss" in IAS 1.7).

In addition, gross profit and gross profit margin are further performance measures for assessing Logwin Group's performance. Gross profit is defined as revenues less cost of sales whereas gross profit margin is calculated by dividing gross profit by revenues. Both figures are used to assess the financial strength of the business model as well as the operating profitability over time.

Financial performance Free cash flow is the central key performance indicator for liquidity management in the Logwin Group and its business units. This figure is defined as the sum of the operating cash flows and investing cash flows as determined by the applicable cash flow standard IAS 7 less the repayment of lease liabilities (for the method of calculation we refer to the subtotals in the statement of cash flows). It is targeted at maintaining sufficient liquidity to cover all of the Group's financial obligations from debt repayments and dividends, in addition to operating payment commitments and investments. In particular, free cash flow is regarded as an indicator of how much cash is available at the end of a reporting period for paying dividends or repaying loans and other financial liabilities.

Operating cash flow – a financial indicator of the applicable IAS 7 (referred to as "net cash flow from operating activities" in IAS 7.20) and therefore calculated directly based on the cash flow statement includes all items that are related directly to operating value creation. It reflects the amount of operating profit converted into cash available for investing and financing activities. Its purpose is to manage and supervise operating liquidity as well as to ensure the generation of cash oriented operational value.

Net asset position The net liquidity and the equity ratio are further key figures applied by the Logwin Group to assess its net asset position. Both measures aim at promoting good financial standing on behalf of good capital market conditions as well as ensuring liquidity. This ensures continued access to the capital market at favorable conditions for the purpose of liquidity management. Net liquidity is calculated as cash and cash equivalents less liabilities from leases and other financial liabilities. Its target is to show how much of the liquid funds would be left if all current liabilities are redeemed.

The equity ratio is calculated by comparing a company's total assets and thus provides information regarding the capital structure of a company. The equity ratio shows the proportion of the total assets owned outright by the investors as well as how the company is leveraged with debt.

Non-financial performance indicators, non-financial statement and diversity concept

In addition to the aforementioned financial performance indicators, the number of employees as of the reporting date (absolute headcount, employees includes all persons directly employed by the Logwin Group, who are active for Logwin in Germany or abroad, full or part-time) represents a key non-financial performance indicator. Looking at the number of staff makes it possible to further analyze costs and productivity and provides insights into the use of resources and capacity. In addition, the number of employees provides benchmarks for other quantitative and qualitative personnel metrics.

Please refer to the CSR report and diversity report for information on the non-financial statement, which is to be issued in 2022 for 2021, and the diversity concept to be applied within the Logwin Group. The documents can be downloaded from http://www.logwin-logistics.com/company/overview/corporatesocial-responsibility.html.

Research and development

Development activities in the Logwin Group concentrate on service and process innovations. These innovations are generally developed in close collaboration with customers in order to achieve improvements in operational and administrative processes. The specialists in the Tender Management/ Logistics Engineering, Process Management and respective IT departments of the Solutions business segment in particular are entrusted with this type of work for complex contract logistics projects.

Corporate Governance

Members of the Board of Directors and the Executive Committee

Dr. Antonius Wagner (* 1961) Chairman of the Board of Directors and the Executive Committee Bad Homburg v. d. Höhe (GER)

Sebastian Esser (* 1974) Deputy Chairman of the Board of Directors and member of the Executive Committee (Chief Financial Officer) Großostheim (GER)

Thomas Eisen (* 1971) Member of the Executive Committee (until 31 March 2021) Salzburg (AUT)

Andreas Kurtze (* 1973) Non-executive member of the Board of Directors In-house lawyer Frankfurt am Main (GER)

Hauke Müller (* 1964) Member of the Executive Committee Hamburg (GER)

Philippe Prussen (* 1977) Non-executive member of the Board of Directors

Attorney Luxembourg (LU)

Axel Steiner (* 1973) Member of the Executive Committee Großostheim (GER)

The Board of Directors of Logwin AG has adopted a Corporate Governance Charter, which is available on the internet at www.logwin-logistics.com/company/investors/governance.html.

Information in accordance with Article 11 of the Luxembourg Takeover Act dated 19 May 2006

• Lit (a): Details on the equity structure of the Logwin Group are included in note 27 on page 77 of the notes to the consolidated financial statements. As of 31 December 2021, there were 2,884,395 fully paid up, no-par registered voting shares issued and admitted for trading on the Frankfurt Stock Exchange. Of these, 5,051 shares were held as treasury shares by Logwin AG as of 31 December 2021 and were therefore subject to the exclusion of voting rights and dividends.
• Lit (b): There are no restrictions on the transfer of the shares.
• Lit (c): The majority shareholder of Logwin AG is DELTON Logistics S.à r.l., Grevenmacher, Luxembourg. The sole shareholder of DELTON Logistics S.à r.I. is Stefan Quandt. For further details, please refer to notes 1 and 39 on pages 36 and 95 of the notes to the consolidated financial statements.
• Lit (d): There are no shares that give the holders any special rights of control.
• Lit (e): There are no employee stock ownership schemes in the Logwin Group.
• Lit (f): There are no restrictions on voting rights in the Logwin Group.
• Lit (g): As of 31 December 2021, Logwin AG is unaware of any understandings with shareholders that restrict the transfer of shares or voting rights in accordance with Directive 2004/109/EC.
• Lit (h): Rules governing the appointment and replacement of the Board of Directors and changes to the Articles and Memorandum of Association are contained in Articles 8, 16 and 17 of the Articles and Memorandum of Association of Logwin AG and in chapter 8 of the Corporate Governance Charter. Both documents can be downloaded from www.logwin-logistics.com/ company/investors/governance.html.

In particular, the following applies:

• The members of the Board of Directors are appointed by the General Meeting of shareholders for a period not exceeding six years. They may be dismissed by the General Meeting at any time. The repeated appointment of a member of the Board of Directors is permitted.
• · If a member of the Board of Directors (including executive members of the Board) retires prematurely, the remaining members may co-opt a new member to the Board in accordance with the legal provisions on a provisional basis. Final election will take place when the shareholders next meet for their General Meeting.
• · The General Meeting may change the company's Articles and Memorandum of Association at any time, taking into account the legal provisions governing minimum attendance and majority voting.
• Lit (i): The powers of the Board of Directors, in particular relating to the empowerment to issue or withdraw shares, are regulated in Articles 5, 8, 9, 10, 11, 18, 19 and 23 of the Articles and Memorandum of Association of Logwin AG and in chapter 3 of the Corporate Governance Charter. Both documents are available at www.logwin-logistics.com/company/investors/ governance.html.

In particular, the following applies:

• · The Board of Directors is responsible for the management of the company.
• · The Board of Directors is vested with the powers to perform all acts of administration and disposal in the interests of the company. The Board of Directors has appointed a committee of directors charged with performing the daily management of the company (hereinafter referred to as "Executive Committee").
• The Board of Directors defines the scope of activity of the Executive Committee and of the individual committees. It also authorizes the procedures that are to be used for the Executive Committee and the individual committees.
• The daily management of the company is performed by the Executive Committee under the supervision of the Board of Directors. The Board of Directors decides on the signatory powers of the members of the Executive Committee.
• The Board of Directors is authorized until 20 May 2024 to increase the company's registered capital by issuing on one or more occasions up to 1,509,105 new no par registered shares with or without an issue premium ("prime d'émission") in exchange for cash and/or noncash capital contributions.
• The company may repurchase its own shares in accordance with the provisions of the law.
• Lit (j): There are finance agreements containing clauses that grant lenders the right to terminate the agreement prematurely in the event that the number of shares held by the majority shareholder of Logwin AG falls below certain thresholds.
• Lit (k): There are no agreements between Logwin AG and members of its Board of Directors or other employees that provide for compensation in the event of termination of employment without important reason or in the event of a takeover bid.

Economic report

Overall conditions

Global economy As in the previous year, the development of the global economy in fiscal year 2021 was dominated by the effects of the Covid 19 pandemic and increasing bottlenecks in industrial production and international freight capacities. Global production and trade volumes increased overall in the past fiscal year compared with the previous year, but the pace of growth slowed increasingly in the course of the year. The main reason for this continued to be the negative impact of the Covid 19 pandemic. The development of industrial production was additionally hampered by continuing capacity bottlenecks in air freight and disruptions to processes in sea freight and in the production of intermediate goods.

In China, India and the emerging markets of Latin America, the economy again grew noticeably in the past fiscal year. In China, growth reached the high level of the past years. However, in the course of the second half of the year, difficulties in energy supply, a strict Zero-Covid-Strategy and global supply chain problems had a dampening effect on economic growth. The East Asian countries recorded only slight economic growth.

In the Western economies, the economy grew moderately overall. The United States of America recorded noticeable growth, mainly due to a significant increase in private consumption and stronger expansion in the manufacturing sector. The trend is being supported by fiscal policy measures, although these are lagging behind those of previous years. In the euro zone, the economy has grown moderately overall, with development in the second half of 2021 weakening after the expected recoveries compared with the declining year 2020. Constraints caused by the significant rise in Covid infection figures in Europe had a particularly negative impact on the recovery in contact-intensive service sectors. In addition, problems in global supply chains and bottlenecks in the production and supply of primary and intermediate products increasingly weighed on industrial production.

German (logistics) industry German economic output recovered in the year 2021 from the pandemicrelated declines of the previous year. However, continuing burdens from the Covid 19 pandemic and the increasing impact of supply bottlenecks slowed the recovery. The manufacturing and business-related services sectors contributed to the growth achieved. By contrast, growth rates were significantly weaker in the stationary retail, food service and accommodation sectors, which continued to suffer from the pandemic-related restrictions.

Competition and market In all relevant areas, the market and competitive environment for the logistics industry in the course of 2021 was very challenging and characterized by the effects of the Covid 19 pandemic, in particular by resulting capacity bottlenecks in air and ocean freight. In addition, significantly higher purchase prices required a high level of effort to handle and secure existing customer business and to win new customers.

The air freight market was characterized in the financial year by a significant increase in volumes compared with the crisis year 2020, which led to ongoing bottlenecks in transport capacity on all major routes. This was exacerbated by the partial shift from sea to air transport. Passenger aircraft capacity, which remained well below pre-crisis levels, could not be fully compensated by a strong expansion of

capacity in cargo aircraft and special flights compared to the pre-crisis year 2019. As a result, air freight rates were significantly higher than in previous years. Volumes on the ocean freight markets also increased in the fiscal year. Here, too, freight rates were significantly higher on average than in the previous year, as the capacities made available were unable to meet global demand. Ongoing disruptions to handling at key transshipment hubs of the global ocean freight chains tightened a highly strained market situation and the resulting unusually high freight rates.

Both in existing business and in the acquisition of new business, contract logistics was characterized by unchanged high competitive and margin pressure. The market for services in the transport network in Germany was particularly affected by the impact of the Covid 19 pandemic and the measures to combat it, with a sustained downward trend.

Business performance

In a market and competitive environment severely impacted by the effects of the Covid 19 pandemic and capacity bottlenecks in air and ocean freight, the Logwin Group significantly exceeded the previous year's earnings performance. Sales increased strongly compared with the previous year. The positive sales performance was mainly driven by the Air + Ocean business segment, mainly due to exceptionally high freight rates and a noticeable increase in volumes. Sales in the Solutions business segment also increased slightly overall despite declines due to the impact of the measures to combat the Covid 19 pandemic on the retail transport network.

In a difficult market environment, the Air + Ocean business segment was able to noticeably increase volumes in ocean freight in 2021, which, together with unusually high freight rates, led to significant growth in sales. Volumes in air freight also rose significantly, with freight rates remaining high, and thus increasing revenues. In addition, the implementation of a new transport management system was successfully completed in fiscal year 2021 with the conversion of all national companies worldwide.

Developments in the Solutions business segment in fiscal year 2021 were characterized by a very challenging market environment due to the pandemic. The business area's international transport activities recorded significant growth in sales and earnings over the year due to both rising volumes and increased freight rates. By contrast, sales in contract logistics and activities in the transport network in Germany declined sharply. In the transport network, the impact of the Covid 19 pandemic on the stationary retail sector was particularly noticeable. In contract logistics, the divestment and closure of sites also had a negative impact.

in million EUR	2021	2020	Absolute change
Revenue	1,851.8	1,123.3	728.5
EBITA	100.9	47.8	53.1
Net result	63.5	34.7	28.8
Free cash flow	88.6	18.6	70.0
Net liquidity	168.4	77.5	90.9

Earnings position

Revenues The Logwin Group recorded a significant increase in the financial year 2021 from EUR 1,123.3m in the previous year to EUR 1,851.8m. The increase in sales of 64.9% was mainly due to strong rate increases in the Air + Ocean business segment and in the international transport business of the Solutions business segment.

Air + Ocean

The Air + Ocean business segment achieved very pleasing sales of EUR 1,5 17.0m in the fiscal year (prior year: EUR 789.7m), an increase of 92.1%. The sales development is mainly attributable to significantly higher freight rates in ocean freight and air freight as well as increased volumes.

Solutions

At EUR 337.0m, sales of the Solutions business segment in 2021 were slightly above the level of the previous year of EUR 333.9m. In the international transport business, sales increased significantly due to higher rates and volumes. By contrast, there was a noticeable decline in sales in contract logistics, mainly due to the disposal and closure of locations. Sales in the German transport network declined significantly due to the Covid 19 pandemic and associated structural market changes.

in million EUR	2021	2020	Absolute change
Logwin Group	1,851.8	1,123.3	728.5
thereof Air + Ocean	1,517.0	789.7	727.3
thereof Solutions	337.0	333.9	3.1

In addition to the two operating business segments presented, the Logwin Group's sales also include the Other segment, which includes real estate management, central services and holding companies.

Gross margin The gross margin of the Logwin Group was maintained at the previous year's level of 8.8% in the financial year 2021. In the Air + Ocean business segment, the margin declined moderately due to the strong increase in sales, while it increased significantly in the Solutions business segment.

Selling, general and administrative costs At EUR 61.7m, selling and administrative expenses increased significantly in fiscal year 2021 compared with EUR 55.3m in the previous year. The increase in selling expenses is mainly attributable to personnel expenses due to business expansions in the Air + Ocean business segment. Administrative expenses include increased expenses in the Others segment in connection with the provision of administrative services for the operating business units.

Operating result (EBITA) The Logwin Group achieved an operating result (EBITA) of EUR 100.9m in the fiscal year 2021, which is significantly above the previous year's level (prior year: EUR 47.8m). At 5.5% (prior year: 4.3%), the Group's operating margin was at a pleasing level. The earnings trend was characterized by a significant improvement in earnings at the Air + Ocean business segment. By contrast, earnings at the Solutions business segment declined.

Air + Ocean

At EUR 108.0m, operating profit at the Air + Ocean business segment more than doubled the previous year's figure (prior year: EUR 49.1m). The increase is mainly due to an increase in gross profit as a result of significantly higher freight rates and increased volumes.

Solutions

In the Solutions business segment, operating profit in 2021 decreased from EUR 6.6m in the previous year to EUR 6.1m. The decline is attributable on the one hand to the absence of non-recurring income, among other things from the sale of a site. Losses in the German transport network had a negative impact. Earnings were positively impacted by the sales-related increase in earnings in the business segment's international transport business.

in million EUR	2021	2020	Absolute change
Logwin Group	100.9	47.8	53.1
Margin	5.5%	4.3%	1.2%
Air + Ocean	108.0	49.1	58.9
Margin	7.1%	6.2%	0.9%
Solutions	6.1	6.6	-0.5
Margin	1.8%	2.0%	-0.2%

In addition to the two operating business segments, the Logwin Group's EBITA also includes the Other segment, which includes real estate management, central services and holding companies.

As a result of the annual impairment test of goodwill, an impairment of capitalized goodwill of EUR 9.0m (prior year: EUR 0.0m) was recognized for the Solutions business segment due to updated planning assumptions.

Financial result and income taxes Compared to the previous year, the financial result improved to EUR-3.2m (prior year: EUR-3.9m). The increase was mainly due to the decrease in interest expenses from lease liabilities from EUR-3.0m to EUR-2.1m and the decrease in interest expenses in connection with pension and other personnel provisions from EUR -0.3m to EUR -0.1m. This was offset by a decrease in foreign currency effects from intercompany financing from EUR -0.1m to EUR -0.3m. Income tax expense increased from EUR -9.1m in the previous year to EUR -25.3m, mainly due to the significant improvement in operating profit.

Net result The Logwin Group's net profit for the period amounted to EUR 63.5m in fiscal year 2021, significantly exceeding the previous year's result by EUR 28.8m (prior year: EUR 34.7m).

Financial position

Financial management in the Logwin Group The Logwin Group finances itself mainly from its own funds, from leasing and, if necessary, from factoring receivables and, to a limited extent, from bank and other loans. The Logwin Group's operating units are financed mainly from operating cash flows or, if necessary, from intercompany loans.

At EUR 79.7m, the Logwin Group's financing liabilities as of 31 December 2021 are significantly lower than in the previous year (prior year: EUR 90.9m) and relate almost exclusively to obligations under leases.

Operating cash flows In fiscal year 2021, the Logwin Group recorded cash inflows from operating activities of EUR 125.9m (prior year: EUR 67.7m). The significant increase is mainly due to the substantial rise in operating result. The change in working capital and increased tax payments had a moderate offsetting effect on the operating cash flow.

Investing cash flows The Logwin Group's cash flow from investing activities amounted to EUR -3.8m, EUR 13.9m higher than the previous year's cash flow (prior year: EUR -17.7m). The difference is mainly due to a EUR 7.1m increase in proceeds from the sale of property, plant and equipment, which mainly resulted from the sale of a property in the fiscal year, and a EUR 6.9m decrease in payments for capital expenditures.

Free cash flow After taking into account the repayment of lease liabilities of EUR -33.5m (prior year: EUR -31.4m), the Logwin Group generated a free cash flow of EUR 88.6m (prior year: EUR 18.6m).

Financing cash flows Financing cash flows for 2021 amounted to EUR-44.3m (prior year: EUR-42.3m) and mainly include the repayment of lease liabilities of EUR -33.5m (prior year: EUR -31.4m). In addition, financing cash flows include the unchanged distribution to the shareholders of Logwin AG of EUR -10.1m (prior year: EUR -10.1m) based on the resolution of the Annual General Meeting of Logwin AG.

Net asset position

Total assets The Logwin Group's total assets increased significantly with a change from EUR 574.4m as of the previous year's reporting date to EUR 797.0m as of 31 December 2021. The increase in total assets compared with the previous year is due in particular to the significant increase in trade receivables and trade payables as a result of the expansion in business volume and to the increase in cash and cash equivalents.

Non-current assets decreased to EUR 204.7m in the reporting year : EUR 228.0m). The decrease mainly relates to property, plant and equipment amounting to EUR 104.8m (prior year: EUR 118.2m) and is attributable, among other things, to the sale of a real estate. Goodwill of EUR 57.4m (prior year: EUR 66.3m) included in non-current assets was written down by EUR 9.0m in the fiscal year due to lower earnings expectations in the Solutions business segment. Other intangible assets also contributed to the decrease, declining from EUR 22.5m to EUR 21.0m, partly due to an extraordinary impairment of an operational IT system. In addition, non-current assets include deferred tax assets of EUR 20.0m (prior year: EUR 19.5m).

The Logwin Group's current assets increased significantly to EUR 592.3m, compared with EUR 346.5m at the end of the previous year. Current assets include trade receivables and contract assets recognized in accordance with IFRS 15 amounting to EUR 296.3m (prior year: EUR 153.4m) as well as cash and cash equivalents of EUR 248.0m (prior year: EUR 168.4m). The significant increase is mainly due to the substantial rise in trade receivables and contract assets as a result of the increase in sales

Equity At the end of the reporting year 2021, the Logwin Group had equity of EUR 282.5m compared with EUR 224.9m in the previous year. The increase in equity reflects the net result for the fiscal year 2021 of EUR 63.5m (prior year: EUR 34.7m). The distribution to the company's shareholders in the financial year of EUR 10.1m (prior year: EUR 10.1m) had a reducing effect on equity. The recognition of actuarial gains from the measurement of pension s due to the increased discount rate and related tax effects amounting to EUR 0.5m (prior year: EUR -1.2m) as well as foreign currency effects amounting to EUR 4.5m (prior year: EUR-6.3m) had the effect of increasing equity. The equity ratio decreased from 39.1% as of the previous year's reporting date to 35.4% as of 31 December 2021 due to the significant increase in total assets.

Liabilities Non-current liabilities decreased from EUR 100.9m at the end of the previous year to EUR 92.9m as of 31 December 2021, mainly due to the decrease in non-current liabilities from leases. In addition, the decrease in provisions for pensions and anniversary bonuses due to the application of higher discount rates had a reducing effect. Current liabilities increased significantly from EUR 248.7m to EUR 421.6m as of 31 December 2021, and mainly include a substantial increase in trade payables of EUR 323.3m (prior year: EUR 172.5m) resulting from operating activities. The increat liabilities was also due to higher liabilities for income taxes and other liabilities and provisions.

Cash and net liquidity The Logwin Group's cash and cash equivalents amounted to EUR 248.0m at the end of the reporting year 2021, compared with a balance of EUR 168.4m as of 31 December 2020. Mainly as a result of the higher cash and cash equivalents, the Group's net liquidity increased from EUR 77.5m at the end of the previous year to EUR 168.4m as of 31 December 2021.

Employees

The Logwin Group employed 4,087 people worldwide as of 31 December 2021, compared with 4,160 employees at the end of the previous year. The Air + Ocean business segment employed 30 more people than in the previous year. The business segment Solutions employed 101 employees fewer than in the previous year, mainly due to site closures and personnel measures in various units and locations of the business segment.

The number of Logwin Group employees in Germany decreased from 1,739 to 1,631.

	2021	2020	Absolute change
Logwin Group	4,087	4,160	-73
thereof Air + Ocean	2,784	2,754	30
thereof Solutions	1,076	1,177	-101

Report on the Logwin share

The Logwin Share On all German stock exchanges 33,782 shares of Logwin AG were traded in the year under review. This was equivalent to a turnover of EUR 7.3m. Between the beginning and the end of the reporting period, the price of the Logwin share rose from EUR 149.00 to a Xetra closing price of EUR 274.00. The significance of this share price development is limited due to the low volumes traded.

Share buyback program The Annual General Meeting on 10 April 2019 authorized the Board of Directors to decide on the buyback of treasury shares by 10 April 2024. Until the end of the financial year, a total of 5,051 no-par shares (prior year: 3,000) were acquired.

Authorization of capital measures The Extraordinary Meeting of Shareholders held on 10 April 2019 has authorized the Board of Directors to increase the share capital by 1,509,105 shares by 20 May 2024, on one or more occasions by issuing new no-par value shares with or without premium against cash and/or non-cash contributions. No use has been made of this authorization to date.

Key figures for the Logwin share

		31 Dec 2021	31 Dec 2020
Closing price (Xetra)	in EUR	274.00	149.00
High /low 52 weeks	in EUR	278.00/147.00	170.00/102.00
Number of shares	Units	2,884,395	2,884,395
- thereof outstanding	Units	2,879,344	2,881,395
Market capitalization	in million EUR	788.9	429.3

Shareholdings The majority shareholder of Logwin AG is DELTON Logistics S.à r.l., Grevenmacher, Luxembourg. The members of the Board of Directors and the Executive Committee held neither shares nor options to purchase shares in Logwin AG as of 31 December 2021.

Company rating The rating for the Logwin Group (corporate credit rating) by Standard & Poor's has been "BB+" with a stable outlook since April 2019.

Subsequent events report

The tightening of global sanction rules against Russia following the outbreak of the military conflict over Ukraine is not expected to have any material impact on Logwin Group's net assets, financial situation and earnings position.

No further reportable events occurred between 31 December 2021 and the preparation of the consolidated financial statements by the Board of Directors of Logwin AG on 3 March 2022.

Overall presentation of risks and opportunities

Risk management system

Objectives and strategy The Logwin Group has established a Group-wide risk management system in order to ensure the proper management of the company and to implement a determined risk policy. This forms a key part of the planning and internal control system and is thus an essential element in managing and controlling the company. The aim of Logwin AG's risk policy is the timely and systematic identification of risks that can lead to a significant adverse deviation from forecasts or may become a risk to the further existence of the company so that such risks can be avoided or their negative effects minimized by initiating prompt countermeasures. The systematic identification and analysis of opportunities is not a component of the Group-wide control and risk management system. Continuous close monitoring of business activities at various levels of management of the Logwin Group ensures that opportunities are identified and exploited.

Structure and process The risk management system is ensured by Group-wide policies and procedures that are set out in risk management guidelines. Risk owners in the business segments and holding companies identify and assess risks that can emerge in their areas. These are then systematically summarized depending on predetermined reporting threshold values and communicated to the relevant management levels in the business segments and to the Executive Committee and the Board of Directors of Logwin AG. Besides regular reporting at specified intervals, immediate reporting procedures for new significant risks play an essential part in the risk management system. Controlling and managing the risks is the responsibility of the risk owners, the relevant management levels in the business segments or the Executive Committee, depending on the degree of authority. These clearly defined processes and responsibilities do not just guarantee that all identified risks are duly addressed, but also ensure that the Executive Committee and the Board of Directors of Logwin AG are informed about all major risks

Control and risk management system for other processes and systems and for the financial reporting process The risk management system was deliberately established as an instrument independent of other processes and systems. However, findings from this system are incorporated into various other processes and systems:

• In particular, thanks to local risk tracking by risk owners, matters relevant to compliance can also be reported and are then monitored by the compliance management system of the Logwin Group.
• In the context of strategic planning, budgeting and forecasting, it is necessary to define how to deal with certain risks within the planning horizon.

Conversely, the findings of other processes and systems must be taken into account in risk management, e.g. by entering issues that are reported through planning (strategic planning, budget or forecast). The internal audit department also performs audits. Depending on the matter at hand, audit findings can also be tracked as risks if necessary.

Besides the risk management guidelines, Group-wide accounting guidelines regulate the financial reporting process as a further feature of the internal control and risk management system. The financial reporting process in the Logwin Group reflects its decentralized organizational structure, i.e. at the business segment level, numerous in part system based reconciliation and plausibility checks are used to monitor the individual Group companies with regard to their reporting preparations (e.g. scheduling and assigning tasks, obtaining balance confirmations, assessing provisions) and also with regard to the preparation of the financial statements. Another element in the internal control system are the letters of representation presented by the management of each subsidiary regarding their annual financial statements. All input and work steps in the consolidation process are documented in the consolidation software, which is used Group-wide. Furthermore, the internal audit department is also involved in monitoring compliance with the accounting guidelines in selected cases.

Risks

Taking into consideration the measures taken or planned, the risks identified across the Group do not either individually or in interaction with one another - affect the Logwin Group's ability to continue as a going concern. The partial changes in individual opportunities and risks do not have any material impact on the Logwin Group's overall risk profile for the fiscal year 2022, which in the opinion of management will not change significantly compared with the previous year despite the continuing uncertainties and the fact that some areas are affected by the further development of the Covid 19 pandemic and the continuing bottlenecks in global transport capacities. The following sections first describe the risks and then the opportunities that could have a significant impact on the Logwin Group's earnings, financial and net asset position. Unless otherwise described, these apply to all business segments.

Overview As an international logistics company, the Logwin Group is exposed to macroeconomic or political risks as well as risks arising from its operating business activities, which also include the regulatory environment, in particular the measures to combat the pandemic. Moreover, financial, legal and regulatory as well as other risks could conceivably also affect its business performance. The Logwin Group has – in accordance with legal requirements – set up a comprehensive risk management system. The system's objective is to systematically identify and manage risks early on, which could negatively impact earnings or lead to deviations from the budget, or cast significant doubt on the Group's ability to continue as a going concern. The possibility cannot be excluded that the risk management system could prove to be inadequate or inefficient, and that unrecognized risks or negative developments could materialize in the Group's course of business activities or not be identified quickly enough in order to prevent them from materializing. As a result, the Logwin Group's net assets, financial situation and earnings position may be significantly affected.

Macroeconomic and political risks The performance of the global economy and of world trade is of crucial importance for the demand for logistics services and thus for the business performance of the Logwin Group.

In line with the general overall situation, the Logwin Group continues to closely monitor the risks for the business segments Air + Ocean and Solutions arising from the course of the Covid 19 pandemic. A renewed intensification of the closures of stationary retail businesses ordered in the course of combating the Covid 19 pandemic or the maintenance of access restrictions in various European countries, including Germany, and possibly a resulting increase in customer insolvencies or a lasting change in

consumer behavior, could have a significant impact on the net assets, financial situation and earnings position of the Logwin Group. A renewed disruption of global trade due to the closure of individual countries or critical infrastructures to contain sources of infection could also have a significant impact on the Logwin Group's net assets, financial situation and earnings position.

The widely observed disruptions to global supply chains and their effects on the Logwin Group's customers lead to additional risks in relation to the supply of capacities to provide them in the areas of air and ocean freight as well as in road transport and intermodal or rail transport. In the medium term, continuing disruptions to logistics chains may result in demand for logistics services, which could have an additional negative impact on the Logwin Group's net assets, financial situation and earnings position.

In addition, there are significant risks in the global economic development and in particular in the economy of the euro zone and the Asian economies. In this context, there is a particular risk of a significant weakening of economic development in the short and medium term as a result of the Covid 19 pandemic and disruptions in international supply chains. The introduction of trade barriers in the short and medium term and efforts to restrict free trade for political reasons could also have a significant negative impact on our net assets, financial situation and earnings position. As expected, the United Kingdom's exit from the European Union has proved to be of minor significance for the Logwin Group.

A worse than forecast economic development in relevant economic regions and economies as well as in economic sectors such as the textile and fashion industry, automotive or certain segments of the wholesale and retail trade would lead to a negative impact on demand for logistics services from the Logwin Group's customers for individual or all operating Logwin units, which could make it necessary for the Logwin Group to take adjustment measures. Similarly, in addition to the significant increase in freight rates, changes in exchange rates could have a significant impact on trade flows and thus on the market size for intercontinental air and ocean freight transportation.

The Logwin Group monitors the relevant macroeconomic developments with the aim of anticipating the effects of negative macroeconomic developments at an early stage and minimizing the impact on its net assets, financial situation and earnings position by managing the relevant exposure and, where possible, making adjustments to its business model.

Incidents with a terrorist background in many parts of the world are often also directed against important traffic and transshipment points in global trade flows. This can lead to short-term disruptions and also to medium-term changes in trade flows due to security considerations of the Logwin Group's customers. These changes in transport volumes as well as the increasing importance of economic embargoes and sanctions in global international relations can have a significant negative impact on the net assets, financial situation and earnings position. The Logwin Group reduces its risks in this regard by diversifying its global activities and managing its customers' transport volumes on a daily basis in order to reduce risk.

Risks arising from operating business activities The business activities of the operating units of the Logwin Group are subject to a variety of risks worldwide. These are explained in more detail in the sections below

Market and customer risks

In the financial year 2021, the measures to combat the Covid 19 pandemic led to significant short-term disruptions in companies' logistics chains worldwide and profound effects on the various activities of the transport and logistics industry. The procurement and distribution activities of the Logwin Group's transport network were particularly affected by short-term and unexpected declines in volumes and short-term fluctuations in transport volumes due to the various lockdowns in Germany and other European countries.

The response to public measures to combat the pandemic also led to ongoing changes in consumer behavior and made planning for customers and subsequently the activities of the company's own transport network more difficult. Overall, a significant increase in the shift to online retailing was evident. If this leads to a sustained change in consumer behavior to the detriment of stationary retail business, necessary capacity adjustments and the resulting restructuring of the transport network could have a significant impact on the Logwin Group's net assets, financial situation and earnings position.

In many cases, customer cost-cutting programs are leading to increased cost awareness on the part of logistics service providers and thus to demands for price reductions. The consequences may also include a review of existing logistics contracts and new tenders. This applies in particular to the Solutions business segment, which in some cases is heavily dependent on individual major customers. There is a risk for the Logwin Group that these customer-related measures could have a negative impact on its earnings situation. Thanks to the high quality of its services and the cost savings achieved in recent years, the Logwin Group believes that it is still in a position to meet the increasing demands and to hold its ground against its competitors.

In various customer contracts, liability or investment risks are transferred to the Logwin Group as a service provider or the agreement of contractual penalties for failure to provide services in accordance with the contract is made a precondition for entering into business relationships. This can give rise to risks that go well beyond statutory warranty risks and could have a significant negative impact on the Logwin Group's net assets, financial situation and earnings position. The Logwin Group minimizes these risks through comprehensive controlling at order and branch level. In addition, any risks are identified at an early stage as part of the risk management process and counteracted without delay.

In the Air + Ocean business segment, there is a risk in the current market situation that further intensifying competition for scarce freight capacities in conjunction with very high, volatile freight rates, which may not be able to be passed on to customers in full, will lead to increased pressure on margins. Through high service quality and intensive efforts to win new customer business on an ongoing basis, the Air + Ocean business segment is striving to counteract the erosion of margins. Attention is being paid to efforts by carriers and other market particularly in ocean freight, to conclude direct transport contracts with smaller end customers as well, increasing the risk of volume declines in the relevant submarket.

Procurement risks

Developments in industry-specific costs pose another considerable risk for the Logwin Group's earnings situation. There is a general risk in this regard that cost increases cannot always be passed on to customers immediately and in full, which could lead to a considerable reduction in earnings. As far as possible, this risk is taken into account through careful contractual arrangements and sufficient diversification with regard to the service providers and suppliers engaged.

A large part of the services provided by Logwin Group is rendered by subcontractors. The local and global availability of a diversified supplier market is a prerequisite for the Logwin Group to provide customers with freight forwarding services at competitive prices. There are currently considerable shortages in global air freight capacities due to the significant reduction in passenger flights triggered by the Covid 19 pandemic. The ocean freight market is also characterized by a shortage of container capacity as well as significant infrastructural bottlenecks at terminals and transshipment points with consequently significantly increased freight rates. In land transportation, the considerable shortage of drivers throughout Europe and shortages of vehicles and other transport equipment are becoming a relevant procurement risk. There is a risk that, due to this shortage of transport capacity, it will no longer be possible to differentiate sufficiently between the services offered and that this will have a significant impact on the net assets, financial situation and earnings position of the Logwin Group.

Despite limited in-house transport capacity, there is a risk that the available transportation capacities and cargo space will be underutilized, particularly in the retail network of the Solutions business segment.

A further noticeable increase in freight rates could also have considerable negative effects on the earnings position of the Logwin Group if higher rates cannot be fully passed on to customers in a timely manner. Furthermore, risks related to logistics real estate that is rented or otherwise held and remaining vacant could have a negative effect on the Logwin Group's net assets, financial and earnings position. The Logwin Group limits these risks through appropriate continuous monitoring of ongoing business activities. Furthermore, established internal processes allow it to react quickly and flexibly to constantly changing circumstances.

There is a risk of further increases in fuel and heating oil prices, particularly in connection with transport services, but also in the maintenance of logistics properties. Despite the current already high price level, there is a risk of a further price increase in the medium term, which could lead to an unforeseen and in some cases very short-term increase in manufacturing costs or procurement costs.

It is also important for the Logwin Group when providing seamless transportation and logistics services at different locations to have properly qualified staff at competitively appropriate conditions. In the event that sufficient appropriate staff are not or only restrictedly available at the company's locations, the Logwin Group faces the risk of not being able to provide its services as agreed due to increased labor costs, or only in a way that is economically unviable.

This also applies to skilled experts in addition to the workforce in the commercial area. This could have a negative effect on the Logwin Group's business performance and profitability in the short, medium or long term. The Logwin Group mitigates this risk with intensive and systematic recruitment activities and various measures for the development and advancement of its employees. In addition, regular health and safety management courses are hosted to help avoid health risks and potential accidents

Technical risks

The availability and functionality of the IT infrastructure and applications are of crucial importance for the economic performance of the Logwin Group. IT risks arise from the possible failure of operational and administrative IT systems, which could have a significant impact on business operations and pose a threat to the Logwin Group's existence in the event of prolonged interruptions or corresponding scope. To limit IT risks, existing and new threats to data security and the Logwin Group's IT infrastructure are continuously assessed. In 2021, there was a further increase in risk in the area of data and cyber security. Security incidents that have become known worldwide, including in the area of logistics, show that the risk situation for the Logwin Group must continue to be seen as increased. The Logwin Group continuously takes appropriate protective measures to ensure that IT services and functionalities are provided securely. All employees of the Logwin Group are sensitized to cyber security issues through regular training measures.

The failure of technical systems such as automated warehouse technology for high-bay warehouses, forklift trucks and systems or material flow computers can result in liability and warranty risks for the Logwin Group for damage and quality defects in addition to lost sales. The Logwin Group is able to counteract these risks through regular maintenance and continuous improvement of technical equipment and machinery as well as appropriate processes for monitoring them.

Financial risks

Liquidity risks

The business operations of the operating units of the Logwin Group as a logistics provider require it to use loans, factoring and credit-related forms of finance, for example when renting or leasing infrastructure, transport equipment and other technical equipment and facilities over the short to medium term. Continuing restricted access to means of finance and guaranteed credit lines, insufficient availability of suitable receivables that can be sold in the factoring process or a sustained increase in the cost of such financing instruments could lead to considerable risks for liquidity and earnings of the Logwin Group.

The Logwin Group manages liquidity risk by monitoring the current liquidity situation on a daily basis. Liquidity planning is used to determine future cash requirements and regular analysis is carried out to determine whether the Logwin Group is in a position to settle its financial liabilities within the agreed due dates. Furthermore, the Logwin Group limits its liquidity risk by means of strict working capital management and financing through various sources. As of 31 December 2021, the Logwin Group had unused credit lines of EUR 38.8m (prior year: EUR 38.8m). In addition, a contractually agreed maximum amount of EUR 60.0m (prior year: EUR 45.0m) is available to the Logwin Group for utilization in the fiscal year 2022, depending on the volume of receivables sold from factoring.

Note 35 to the consolidated financial statements on page 94 provides a maturity analysis of the financial liabilities.

Engaging in the transportation business on a global scale requires the possibility of guarantees and collateral being provided by generally recognized guarantors, for example to customs and tax authorities and in the process of handling air and ocean transports world-wide. The Logwin Group will be confronted with liquidity and earnings risks if such established financial instruments are no longer available to the Logwin Group to a sufficient extent, or if the customary mechanisms underlying international financial business transactions fail to work. The risk is reduced by diversification and contractual agreements with leading financial service providers selected according to defined criteria.

Credit risk

There are credit risks arising from relationships with customers and banks, which could have a negative impact on earnings if they were to materialize. Credit risks arising from relationships with customers are minimized by detailed credit assessments and a restrictive allocation of payment terms. Furthermore, in nearly all countries trade credit insurance exists for the majority of customers. Credit risks resulting from relationships with banks (counterparty risk) are counteracted via diversification of banking relationships.

Both business segments are exposed to the risk of increased customer insolvencies due to the economic consequences of the Covid 19 pandemic. In addition to the immediate effect of potential bad debt losses, this may have a longer-term negative effect on sales and earnings development due to the loss of existing business. The Logwin Group continues to limit the risks arising from bad debts by closely monitoring and restrictively granting payment terms and credit limits. In addition, the consistent hedging of default risks through credit insurance serves to reduce the potentially increased risks from this area.

Allowances are made for possible default risks on trade accounts receivable and other financial assets. Please refer to note 23 on page 72 of the notes to the consolidated financial statements for more information on the extent of loss provisions of trade accounts receivable.

Unless stated otherwise, the carrying amount of financial instruments is their maximum default risk.

Currency risk

The companies of the Logwin Group generate revenues in various currencies in the course of carrying out their worldwide activities and therefore also recognize their assets in non-euro currencies. As a result, the Group is subject to ongoing currency risks. Moreover, between the companies of the Logwin Group there are internal financing balances in foreign currencies.

As a result, a significant risk to earnings and liquidity from the negative effects of exchange rate movements cannot be excluded.

Wherever feasible, the Logwin Group reacts to potential foreign exchange risks affecting liquidity by using hedging instruments. Taking into account hedging activities, a change in the respective functional currency of the group companies by +/- 10% in relation to the US dollar, the main foreign currency of the Logwin Group, as of 31 December 2021 would have an effect on the Group's net result of -/+ EUR 1.2m (prior year: -/+ EUR 0.1m).

Note 34 on page 92 contains a list of forward exchange contracts as of the reporting period.

As the euro is the reporting currency of the Logwin Group, the financial statements of the companies are translated into euro, which is the functional currency of the Group, for the purposes of the consolidated financial statements. These translation-related foreign currency risks are typically not hedged in the Logwin Group. This can create a considerable impact on the presentation of the earnings position and net assets of the Logwin Group. The Logwin Group closely monitors the extent of the possible impact on an ongoing basis.

Interest rate risk

Interest rates can change after a prolonged phase of low interest rates as a result of various influential factors. Increased rates of interest can pose a risk to the earnings of the Logwin Group. As of 31 December 2021, the Group had financial liabilities subject to variable interest rates resulting from lease contracts. The interest rate risks resulting from these contracts are closely monitored on an ongoing basis and tolerated at the current level.

Legal and regulatory risks The Logwin Group performs various customs and VAT-related processes on behalf of its customers as part of its cross-border, international transportation activities. Risks are involved in performing these processes and making the required customs or tax declarations. This applies especially when the Logwin Group is liable for the completeness and accuracy of such declarations, for example, when bearing joint and several liability. Considerable risks to the financial situation and earnings position of the Logwin Group arise in particular in cases where a customer is unable to settle its payment obligations. To limit these risks, these proceedings are handled by appropriately qualified personnel. Furthermore, the internal control and risk management system in place helps to counter possible threats early on

In an increasingly security-conscious environment, the possibility of the introduction of stricter security measures such as tighter import controls in connection with air freight security cannot be excluded. It is difficult to assess what the effects of this might be for the logistics industry, but having to meet international security regulations would presumably result in increased costs and significantly higher investment requirements for additional security measures, which could then affect the financial and earnings position of the Logwin Group.

Country-specific risks can result, from inconsistent interpretation, application and abrupt changes to legal, tax and customs regulations. This is not only the case for various emerging countries where the legal system does not yet conform to international standards (or only to a limited extent). It also applies to locally adopted implementing regulations of EU law, whose transposition sometimes differs greatly from country. Through the close monitoring of the development of global safety regulations and other legal frameworks, the Logwin Group strives to respond to additional requirements early on and to mitigate or avert the impact of additional expenses by adjusting customer agreements.

Moreover, in providing its services and running its own facilities, the Logwin Group is subject to the laws, rules and regulations prevailing in the countries where it operates, such as transportation licenses and occupational health and safety. Conditions and licensing requirements may restrict transportation and logistics activities. For a number of customer projects, the companies of the Logwin Group are dependent upon retaining their current licenses and permits at all times. Losing such authorization could significantly threaten the profitability of the customer projects concerned. The risks arising from this are constantly monitored by the risk owners in order to directly counter potential threats.

The contractually agreed acceptance of risks, principally warranties, indemnification and tax risks, remain in connection with winding up the business operations sold by the Logwin Group. If Logwin Group is held liable, this can have an considerably negative impact on the financial situation and earnings position of the Logwin Group. These risks are contractually limited as far as possible.

The Logwin Group is particularly affected by environmental reguirements in areas where the provision of logistics services involves the handling of potentially hazardous substances, such as the operation of fuel stations. In addition, hazardous goods are handled and stored at various logistics facilities. It is likely that, at least in Germany and the EU, the logistics and transport sector will become the focus of environmental and climate protection-related directives and legislation in the coming years. In this respect, there is a risk that the resulting cost increases can only be partially offset by efficiency improvements or passed on to customers in the form of higher prices. This could have significant adverse effects on the Logwin Group's earnings and financial position. Continuous monitoring and systematic reviews by the supervisory bodies and in particular by the Logwin Group's quality management officers ensure that these risks are identified and managed at an early stage.

Other risks The Logwin Group is exposed to the risk of claims for damages resulting from breaches of duty by management. In addition, fraudulent acts such as theft, fraud, embezzlement, misappropriation of funds and corruption harbor a high risk potential and can lead to considerable material and reputæ tional damage. The Logwin Group's internal control system helps to reduce risks in this context. Furthermore, the Logwin Group has defined a Code of Conduct with the aim of promoting the integrity of its employees' behavior and preventing situations that are incompatible with these principles. The Code of Conduct is publicly available on the Logwin Group's website and is also firmly anchored in employees' employment contracts. Information and training events on the Code of Conduct are held on a regular basis. The Logwin Group has established an e-learning program to prevent corruption. In the reporting year, the new Compliance & Corruption elearning modules were introduced together with an external partner based on feedback from our employees. The roll-out took place in several waves starting with the management and sales positions before the two modules were rolled out to other countries for all employees from June. In the meantime, 3,131 online training programs on corruption and compliance topics have already been successfully completed by our employees in 35 countries. By the end of 2021, 1,019 employees will have successfully completed both trainings. In addition to the online self-learning modules, a two-hour management workshop on the topic of compliance was designed in webinar format and has already been implemented in an initial leadership program and will be a fixed component of management development in the Logwin Group in the future.

The Logwin Group takes entrepreneurial risks in order to be able to exploit market opportunities. In the event that these risks materialize, this could have a significant impact on the Logwin Group's net assets, financial situation and earnings position. The capitalized goodwill of EUR 57.4m as of 31 December 2021 represents a significant individual item of the Logwin Group's non-current assets. Of this amount, EUR 45.7m is attributable to the business segment Air + Ocean and EUR 11.7m to the business segment Solutions. In accordance with the requirements of IAS 36, goodwill is subject to an impairment test. In the event of sustained weaker than expected development of individual areas of the Logwin Group, there is a risk with regard to the consolidated balance sheet that capitalized goodwill in particular will have to be written down ("impairment risk"). Another influencing factor is the current and expected development of interest rates. In the fiscal year, capitalized goodwill in the business segment Solutions was impaired by EUR 9.0m due to adjusted planning. A sustained weak or weaker than expected development of individual Logwin companies may also necessitate a write-down of deferred tax assets. A lack of recoverability of non-current assets including rights of use from IFRS 16 could have a negative impact on the Logwin Group's net assets, financial situation and earnings position.

Compliance The Logwin Group attaches great importance to Group-wide compliance with national and international legislation, contractual agreements and the Group's internal policies. To firmly anchor this principle, the Logwin Group has formulated a Code of Conduct, which is binding for all employees in the Group. This code of conduct specifically defines general behavioral principles, requires employees to understand and comply with the relevant legislation, governs how to deal with business partners and public-sector institutions and sets out guidance on avoiding conflicts of interest. The Board of Directors of Logwin AG has also adopted a Corporate Governance Charter, which is based on the Corporate Governance regulations of the Luxembourg Stock Exchange and sets out requirements for the governance of the Logwin Group and for ensuring compliance with related legislation. The Corporate Governance Charter of Logwin AG has been published on the Logwin Group's homepage. Please refer to the "Corporate governance" section of this management report.

To monitor compliance with compliance requirements, a compliance officer was appointed. Under the overall responsibility of the Executive Committee, a compliance management system was created that forms the framework for the structured monitoring, assessment, management and tracking of compliance risks on the basis of defined risk fields. Comprehensive and recurring employee training in the form of classroom and online sessions complement the range of measures that is continuously being expanded.

Compliance activities are also supplemented by the internal audit. The focus here is on monitoring compliance with legislation and internal rules in addition to contractual agreements. Together with business segment representatives, the internal audit function carries out audits of selected locations and companies worldwide. External specialists and lawyers are involved in monitoring compliance with national legislation, with a particular emphasis on anti-corruption, compliance with tax and customs legislation, data protection and labor law. Overall, these measures have systematically expanded the Logwin Group's compliance organization in recent years. Nevertheless, the possibility of infringements against national or international regulations occurring, resulting in risks that could threaten the very existence of the Logwin Group, can never be excluded completely.

Opportunities

Macroeconomic and industry-related opportunities In addition to the risks described above, ongoing globalization also opens up potential opportunities for the Logwin Group. If global economic growth continues over the long term, the logistics industry will continue to grow in the future. This applies in particular to Asia, where trade flows with other regions and especially within the continue to increase. Furthermore, market opportunities may arise from the growth impulses of other fast-growing countries in regions such as South America or the Middle East.

If the economic environment in the key industrial regions, particularly in China, the USA and Europe, develops better than currently forecast, this may also lead to unexpected growth impulses, as the economic development of our customers determines their demand for warehousing and transport services. As a result, increasing transport volumes in imports and exports can have a beneficial effect on the development of the Logwin Group.

In addition to the regional impact, growth impulses can also result from individual industries. In particular, positive developments in the automotive, consumer goods and chemical sectors or in plant and mechanical engineering can have a beneficial effect on the Logwin Group's business performance. Booming online trade, which is showing significant growth rates, particularly as a result of the Covid 19 pandemic, is another opportunity for the Logwin Group. It creates demand for the transportation of goods and thus opens up great growth potential for the national and international transportation business.

Opportunities from operating activities Potential opportunities arise from the use of the possibilities offered by technological progress. Digital transformation opens up new networking opportunities with the Logwin Group's customers and suppliers. In this way, market opportunities can be seized quickly and the competitiveness can be strengthened, especially in a challenging and dynamic environment. In addition, the increasing level of technology in operational processes offers various opportunities for optimization. The increased use of modern, networked IT systems, in which the Logwin Group has invested more in recent years, enables not only efficiency gains but also improved operational quality, increased cost efficiency and shorter response times to deviations. Opportunities continue to arise from the ongoing increase in productivity and cost transparency as well as the exploitation of synergy effects, which are therefore the focus of management's efforts within the Logwin Group.

The trend towards outsourcing logistics services is continuing. Supply chains are becoming more complex, more international, but also, as the disruptions in global supply chains are currently showing, more prone to disruption. Customers therefore want stable and integrated logistics solutions and seek the support of specialized service providers. If the trend continues, this could result in further growth opportunities for the Logwin Group.

On the procurement side, there are opportunities primarily due to a positive price development contrary to underlying expectations, e.g. of purchased transport services, but also of fuel or heating oil prices.

Other opportunities Other opportunities may arise from acquisitions or the streamlining of assets. By constantly reviewing existing business and monitoring potential acquisition targets, the Logwin Group attempts to identify opportunities at an early stage and, after carefully weighing up the risks, to take advantage of such opportunities for the Logwin Group's earnings situation also arise from possible positive effects of foreign currency relations or changes in interest rates.

Outlook

All statements made in the outlook report continue to be subject to a very high degree of uncertainty due to the imponderables surrounding the further development of the Covid 19 pandemic and the disruptions occurring worldwide in international supply chains.

Economic forecast In line with leading economic forecasts, the Logwin Group expects the global economy to grow slightly in 2022. For the eurozone and the German economy, slight growth is assumed in this period in line with the development of the global economy. Only slight growth is expected for China. By contrast, accelerated growth is expected for India and the East Asian countries. Growth is expected to be somewhat weaker in Latin America. All forecasts for overall economic development assume that the Covid 19 pandemic and the current difficulties in international supply chains will dampen growth. However, the influence of these factors will diminish over the course of 2022. For the Logwin Group, the development of individual sub-sectors of German consumption, in particular the textile and clothing industry, as well as the development of economic sectors that are strongly import- and export-related, such as the automotive industry, will be of key importance.

The possibility of significant overriding risk factors having a negative impact on the Logwin Group's business development is considered realistic and is reflected in the assessment of future business development. These risk factors include, in particular, uncertainty about the further development of the Covid 19 pandemic and about the impact on the economy of continuing supply bottlenecks and material shortages in the various economic sectors affected. Additional risks relating to economic development arise from persistently higher inflation and potentially associated restrictive monetary policy measures for the Logwin Group's customers and overall economic development.

Revenue expectations The Logwin Group anticipates a decline in sales in 2022. This is based on the expectation of an overall decline in freight rate levels during the second half of the financial year. It is also assumed that there will be only a modest recovery in the consumer-related businesses affected by the impact of the Covid 19 pandemic. The forecast is subject to a high degree of uncertainty and is conditional on further containment of the spread of the Covid 19 pandemic and an easing of the international air and ocean freight markets.

Air + Ocean

In the Air + Ocean business segment, freight rates are expected to remain high in the first half of 2022 and demand for transport capacity will remain strong. In the course of the year, a gradual normalization of the markets and a decline in the unusually high freight rate level is expected. Accordingly, sales should initially remain at a high level, but then decline significantly year-on-year. The acquisition of new customers, expansion of business with existing customers and securing existing business form the basis for the further successful development of the business area and will therefore remain the focus of attention. As in previous years, revenue in 2022 will depend to a large extent on the development of freight rates and exchange rates, as well as on the development of volumes with existing and new customers.

Solutions

Revenue in the Solutions business segment is expected to increase in the financial year 2022 due to the anticipated continued positive development of international transport activities. A forecast recovery in volumes in the German transport network will also contribute to the expected development. The termination of individual contract logistics activities will have a dampening effect on revenue development

Earnings expectations Under the conditions described, the Logwin Group expects a significant weakening of earnings development in the Air + Ocean business segment in 2022 compared to 2021 and consequently a significantly declined operating result (EBITA) for the Logwin Group. The net result will also be below the level of 2021 in line with the operating result.

Air + Ocean

Following the exceptionally high earnings of the Air + Ocean business segment in the reporting year, it will probably not be possible to maintain this level of earnings in the currently very challenging market and competitive environment in 2022. The forecast assumes a gradual normalization of freight rates and market conditions over the course of the year and a corresponding decline in sales and margin levels. Earnings are expected to decrease significantly accordingly.

Solutions

Earnings in the Solutions business segment are also expected to decline in 2022. The development of earnings will depend to a large extent on result s in the area of international transport activities. Due to expected margin declines as a result of rising input costs, earnings here are expected to decrease. For the contract logistics activities and the German transport network, earnings are expected to remain at the level of 2021. The earnings performance of the German transport network will depend to a large extent on the recovery in stationary retail and transport volumes.

Liquidity development The Logwin Group expects a sharp decline in free cash flow in 2022 due to the significantly reduced operating result. Net liquidity will continue to increase moderately.

Employees Due to the expected expansion of business in the Air + Ocean business segment and the associated significant increase in the number of employees, the Logwin Group anticipates a moderate overall increase in the number of employees in the 2022 financial year. In the Solutions business segment, the number of employees is expected to increase slightly.

Consolidated Financial Statements

Income Statement

	2021	2020	Note/Page
In thousand EUR
Revenues	1,851,836	1,123,297	9/60
Cost of sales	-1,689,275	-1,023,941	10/61
Gross profit	162,561	99,356
Selling costs	-27,613	-23,505	10/61
General and aministrative costs	-34,064	-31,747	10/61
Other operating income	9,936	13,551	11/61
Other operating expenses	-8,617	-8,602	11/61
Impairments on assets measured at amortized cost	-138	-859
Operating result before impairments and reversal of impairments of property,
plant and equipment and other intangible assets	102,065	48,194
Impairment of property, plant and equipment and other intangible assets	-3,422	-442	12/62
Reversal of impairments of property, plant and equipment	2,297		12/62
Operating result before goodwill impairment (EBITA)	100,940	47,752
Goodwill impairment	-8,953		18/66
Net result before interest and income taxes (EBIT)	91,987	47,752
Finance income	183	255	14/62
Finance expenses	-3,364	-4,135	14/62
Net result before income taxes	88,806	43,872
Income taxes	-25,296	-9,138	15/63
Net result	63,510	34,734
Attributable to:
Shareholders of Logwin AG	62,803	34,414
Non-controlling interests	707	320
Earnings per share - basic and diluted (in EUR):
Net result attributable to the shareholders of Logwin AG	21.80	11.94
Weighted average number of shares outstanding	2,880,488	2,883,387

Consolidated Financial Statements

Income Statement | Statement of Comprehensive Income

Statement of Comprehensive Income

	2021	2020	Note/page
In thousand EUR
Net result	63,510	34,734
Gains/losses on currency translation of foreign operations	4,462	-6,323
Reclassification of currency translation differences into profit or loss		6
Other comprehensive income that may be reclassified into
profit or loss in future periods	4,462	-6,317
Remeasurement of the net defined benefit liability	2,771	-1,615	29/78
Deferred tax from remeasurement of the net defined benefit liability	-2,251	367	26/75
Other comprehensive income that will not be reclassified into
profit or loss in future periods	520	-1,248
Other comprehensive income	4,982	-7,565
Total comprehensive income	68,492	27,169
Attributable to:
Shareholders of Logwin AG	67,605	27,043
Non-controlling interests	887	126

Statement of Cash Flows

In thousand EUR	2021	2020	Note/page
Net result before income taxes	88,806	43,872
Financial result	3,181	3,880	14/62
Net result before interest and income taxes	91,987	47,752
Reconciliation adjustments to operating cash flows:
Depreciation and amortization	39,192	38,650	10/61
Result from disposal of non-current assets	150	-1,061	11/61
Impairment of Goodwill	8,953		18/66
lmpairment of property, plant and equipment and other intangible assets	3,422	442	12/62
Reversal of impairments of property, plant and equipment	-2,297		12/62
Other	3,522	-4,366
Income taxes paid	-13,232	-10,626
Interest paid	-3,071	-3,698
Interest received	183	255
Changes in working capital, cash effective:
Change in receivables	-162,564	616
Change in payables	159,605	-1,342
Change in inventories	44	1,122
Operating cash flows	125,894	67,744
Capital expenditures in property, plant and equipment and other intangible assets	-12,594	-19,543
Proceeds from disposals of other business operations and non-current assets held for sale	8,100	1,450	16/64
Proceeds from disposal of non-current assets	750	310
Other cash flows from investing activities	-29	58
Investing cash flows	-3,773	-17,725
Net cash flow	122,121	50,019
Repayment of current loans and borrowings	67	-10	17/65
Repayment of liabilities from leases	-33,528	-31,442	17/65
Distribution to shareholders of Logwin AG	-10,083	-10,094	27/77
Distribution to non-controlling interests	-363	-386
Payments for acquisitions of own shares	-413	-387
Financing cash flows	-44,320	-42,319
Free cash flow (= Net cash flow less repayment of liabilities from leases)	88,593	18,577
Effects of exchange rate changes on cash and cash equivalents	1,804	-3,194
Changes in cash and cash equivalents	79,605	4,506
Cash and cash equivalents at the beginning of the year	168,408	163,902
Change	79,605	4,506
Cash and cash equivalents at the end of the period	248,013	168,408	25/75

Balance Sheet

	31 Dec 2021	31 Dec 2020	Note/page
In thousand EUR
Assets
Goodwill	57,366	66,319	18/66
Other intangible assets	20,979	22,478	19/68
Property, plant and equipment	104,759	118,184	20/69
Investments	781	759
Deferred tax assets	20,007	19,523	26/75
Other non-current assets	844	699
Total non-current assets	204,736	227,962
Inventories	1,411	1,455	22/72
Trade accounts receivable	261,396	140,802	23/72
Contract Assets	34,922	12,644	23/72
Income tax receivables	1,862	2,465
Other receivables and current assets	44,685	20,686	24/74
Cash and cash equivalents	248,013	168,408	25/75
Total current assets	592,289	346,460
Total assets	797,025	574,422

	31 Dec 2021	31 Dec 2020	Note/page
In thousand EUR
Liabilities
Share capital	131,300	131,300
Group reserves	150,666	93,144
Treasury Shares	-800	-387
Equity attributable to the shareholders of Logwin AG	281,166	224,057
Non-controlling interests	1,319	795
Shareholders' equity	282,485	224,852	27/77
Non-current liabilities from leases	51,631	60,599	21/70
Pensions provisions and similar obligations	31,616	35,485	29/78
Other non-current provisions	3,365	3,529	30/82
Deferred tax liabilities	6,325	1,294	26/75
Other non-current liabilities	1	1	33/83
Total non-current liabilities	92,938	100,908
Trade accounts payable	323,257	172,523
Current liabilities from leases	27,884	30,233	21/70
Current loans and borrowings	135	66	28/78
Current provisions	9,470	8,042	31/83
Income tax liabilities	12,794	3,230	32/83
Other current liabilities	48,062	34,568	33/83
Total current liabilities	421,602	248,662
Total liabilities and shareholders' equity	797,025	574,422

Statement of Changes in Equity

	Equity attributable to the
		Additional paid-in	Retained
	Share capital	capital	earnings
In thousand EUR
1 January 2020	131,300	146,628	-68,649
Net result			34,414
Other comprehensive income			-1,248
Total comprehensive income			33,166
Acquisition of own shares
Distributions		-10,094
Attribution of retained earnings to additional paid-in capital		39,243	-39,243
31 December 2020	131,300	175,777	-74,726
1 January 2021	131,300	175,777	-74,726
Net result			62,803
Other comprehensive income			520
Total comprehensive income			63,323
Acquisition of own shares
Distributions		-10,083
Attribution of retained earnings to additional paid-in capital		48,947	-48,947
31 December 2021	131,300	214,641	-60,350

The accompanying notes are an integral part of these consolidated financial statements.

shareholders of Logwin AG
Accumulated other comprehensive income
Currency translation reserve	Treasury shares	Total	Non-controlling interests	Total shareholders' equity
-1,784	-	207,495	1,055	208,550
		34,414	320	34,734
-6,123		-7,371	-194	-7,565
-6,123		27,043	126	27,169
	-387	-387		-387
		-10,094	-386	-10,480
-7,907	-387	224,057	795	224,852
-7,907	-387	224,057	795	224,852
		62,803	707	63,510
4,282		4,802	180	4,982
4,282		67,605	887	68,492
	-413	-413		-413
		-10,083	-363	-10,446
-3,625	-800	281,166	1,319	282,485

Notes to the Consolidated Financial Statements as of 31 December 2021

General Information

0 1	Corporate information	36
02	Statement of compliance with IFRS	36
03	Basis of preparation of the financial statements	રે રે
04	Consolidation principles	37
05	New accounting provisions	37
06	Significant accounting judgments and estimates	40
07	Summary of key performance indicators and significant accounting policies	4 1
08	Segment reporting	56
	Notes to the Income Statement
09	Revenues from contracts with customers	60
10	Expenses by nature	6 1
11	Other operating income and expenses	6 1
12	Impairment and reversal of impairments of property, plant and equipment and	62
	other intangible assets
13	Government grants	62
14	Financial result	62
15	Income taxes	63
	Notes to the Statement of Cash Flows
1 6	Proceeds from disposals of other business operations and non-current assets	64
	held for sale
17	Liabilities from financing activities	65
	Notes to the Balance Sheet
18	Goodwill	66
19	Other intangible assets	68
20	Property, plant and equipment	69
2 1	Leasing	70
22	Inventories	72
23	Trade accounts receivable and contract assets	72
24	Other receivables and current assets	74
25	Cash and cash equivalents	75
26	Deferred taxes	75
27	Shareholders' equity	77
28	Loans and borrowings	78
29	Provisions for pensions and similar obligations	78
30	Other non-current provisions	82
3 1	Current provisions	83
32	Income tax liabilities	83
33	Other liabilities	83
	Other Notes
34	Additional information on financial instruments	85

35	Financial commitments	94
36	Contingent liabilities and lawsuits	94
37	Auditor's fees	95
38	Key management personnel compensation	95
39	Related party transactions	95
40	Events after the reporting period	97
41	List of shareholdings	97

General Information

1 Corporate information

The consolidated financial statements of Logwin AG, Grevenmacher, Luxembourg, ("Logwin AG" or "Logwin") for the financial year as of 31 December 2021, were authorized for issue by resolution of the Board of Directors on 3 March 2022, and under Luxembourg law are still subject to approval by the Annual General Meeting. Logwin AG, 5 an de Längten, L-6776 Grevenmacher, is a limited company incorporated and domiciled in Grevenmacher, Luxembourg, whose shares are publicly traded on the Frankfurt Stock Exchange. The Company belongs to the Prime Standard of Deutsche Börse AG. The majority shareholder is DELTON Logistics S.à r.l., with registered office in Grevenmacher, Luxembourg.

As an integrated logistics service provider, the Logwin Group has a long-standing experience, specialized infrastructure and expertise in various sectors of industry and trade and assumes responsibility for its customers' supply chain management, warehousing, value added services and both local and global freight transportation by road, rail, air and ocean. The principal activities of the business segments Air + Ocean and Solutions are described in note 8 "Segment reporting".

2 Statement of compliance with IFRS

The consolidated financial statements of Logwin AG and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. All standards of the International Accounting Standards Board (IASB) and interpretations of the IFRS Interpretations Committee (IFRS IC), formerly known as the International Financial Reporting Interpretation Committee (IFRIC) or Standing Interpretation Committee (SIC), whose application is mandatory for financial year 2021, have been applied.

3 Basis of preparation of the financial statements

The financial statements of the subsidiaries are prepared using uniform accounting policies and the same reporting date as the financial statements of the parent company.

The consolidated financial statements have been prepared on a historical cost basis. This excludes derivative financial instruments and other financial instruments that are assigned to the measurement category "financial instruments at fair value through profit or loss". The financial year of the Group corresponds to the calendar year. The consolidated financial statements are presented in euros (EUR). Unless stated otherwise, all figures are shown in thousands of euros (thousand EUR or EUR k). Due to rounding differences, information included in these financial statements may differ slightly from the actual figures by +/- one unit (EUR, % etc.).

Consolidation principles ব

As of 31 December 2021, the number of consolidated companies includes two domestic and 51 foreign companies. They have developed as follows:

	31 Dec 2020	Additions	Disposals	31 Dec 2021
Luxembourg	2			2
Germany	11			12
Other countries	39			39
Total	52	1	-	53

The addition relates to the establishment of a new German company in the Solutions business segment.

Please refer to page 97 for a list of shareholdings.

All intragroup balances, transactions, income, expenses, gains and losses are eliminated in full. Subsidiaries are fully consolidated from the time of acquisition, i.e., from the time at which the Group obtains control. They are no longer included in the consolidated financial statements when the parent company loses control over the subsidiary. Non-controlling interests represent the portion of net results and net assets of consolidated companies not held by the Group and are presented separately in the consolidated income statement, in the statement of comprehensive income, in the consolidated statement of changes in equity and within equity in the consolidated balance sheet – separately from the shares attributable to the shareholders of Logwin AG.

5 New accounting provisions

The International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRS IC) have published new accounting provisions in recent years. The table below contains the new standards and interpretations that had to be applied for the first time for financial year 2021:

Standard/interpretation			Mandatory adoption (in the EU) for the annual period beginning on or after	En- dorse ment
Amendment	IFRS 9, IAS 39, IFRS 7, IFRS 4, IFRS 16	Interest Rate Benchmark Reform Phase 2	1 January 2021	Yes
Amendment	IFRS 16	Covid-19-Related Rent Concessions beyond 30 June 2021	1 April 2021	Yes
Amendment	IFRS 4	Extension of the Temporary Exemption from Applying IFRS 9	1 January 2021	Yes

The new or amended accounting standards and interpretations mentioned above were applicable for the first time for the current reporting period.

The Interest Rate Benchmark Reform - Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) relate to the accounting for changes in the identification of contractual cash flows as a result of IBOR reform, provide an end date for Phase 1 relief for non-contractually specified risk components in hedging relationships, and provide additional time-limited exemptions from the application of specific hedge accounting requirements and additional IFRS 7 disclosures related to IBOR reform.

The amendment to IFRS 16 Leases extends the optional relief available to lessees in assessing whether a lease concession is a modification in the context of Covid 19.

The new accounting standards, which became mandatory for the first time in the reporting year, did not have any material impact on the consolidated financial statements of Logwin AG.

Furthermore, the IASB and the IFRS IC adopted the new or revised accounting standards presented below, which were not yet mandatory in fiscal year 2021. The Logwin Group did not make use of the option of voluntary early adoption in individual cases in the fiscal year 2021.

Standard / interpretation			Mandatory adoption (in the EU) for the annual period beginning on or after	En- dorse- ment
Amendment	IFRS 3	Reference to the Conceptual Framework	1 January 2022	Yes
Amendment	IAS 16	Proceeds before intended use	1 January 2022	Yes
Amendment	IAS 37	Onerous Contracts - Cost of Fulfilling a Contract	1 January 2022	Yes
Amendment	various	Annual Improvements 2018-2020	1 January 2022	Yes
Amendment	IAS 1	Classification of Liabilities as Current or Non-current	1 January 2023	No
Amendment	IAS 1. Practice Statement 2	Disclosure of Accounting policies	1 January 2023	No
Amendment	IAS 8	Definition of Accounting Estimates	1 January 2023	No
Amendment	IAS 12	Deferred Tax related to Assets and Liabilities arising from a Single Transaction	1 January 2023	No
New Standard	IFRS 17	Insurance Contracts	1 January 2023	Yes
Amendment	IFRS 17	Initial Application of IFRS 17 and IFRS 9 - Comparative Information	1 January 2023	No

The amendments to IFRS 3 update obsolete references in IFRS 3 to the Framework without significantly changing the requirements in the standard.

The amendments to IAS 16 require that revenue and expenses relating to items produced that are not in the ordinary course of the entity's activities be presented separately and specify the line item in which the revenue is recognized within the statement of comprehensive income.

The published amendments to IAS 37 clarify that all costs of fulfilling the contract that are directly attributable to the contract should be included in determining whether the contract is onerous.

The amendment to IAS 1 clarifies that the classification of liabilities as current or non-current is based on the rights that the entity has at the reporting date.

Further amendments to IAS 1 and Practice Statement 2 are part of the IASB's Disclosure Initiative, which clarifies that future disclosures should be made only about material accounting policies and no longer about significant accounting policies. What is considered material is based on the usefulness of the information for decision-making by the users of the financial statements.

The amendments to IAS 8 include clarifications on the distinction between accounting policies and accounting estimates in order to make it easier for entities to distinguish between them.

The amendments to IAS 12 restrict the so-called "initial recognition exception".

IFRS 17 sets out the principles relating to recognition, measurement, presentation and disclosures for insurance contracts within the scope of the standard. The objective of IFRS 17 is the provision of relevant information by the reporting entities and thus to lead to a credible presentation of insurance contracts. This information serves as a basis for users of financial statements to assess the impact of insurance contracts on an entity's financial position, financial performance and cash flows.

The amendments to IFRS 4 are intended to facilitate implementation and simplify some of the requirements of the new standard and the transition to the new rules.

The new regulations explained and revised above are currently not expected to have any material effects on the future financial statements of the Logwin Group.

6 Significant accounting judgments and estimates

The preparation of the financial statements requires management to make certain estimates and assumptions and hence accounting judgments that affect the amounts of assets and liabilities recognized at the end of the reporting period and the income and expense items for the reporting period. Actual amounts may differ from these estimates, leading to a risk that an adjustment to the carrying amounts of assets or liabilities might be required in subsequent financial years.

Uncertainties exist in connection with the goodwill impairment test that has to be performed at least once a year, since expected future cash flows, sustainable growth rates and an appropriate weighted cost of capital (WACC) must be considered for the discounted cash flow method used for this purpose. The components of the WACC are the risk-free interest rate, the market risk premium, the so-called beta factors, country risk premiums, the spread for the credit risk and the debt ratio. The carrying amount of recognized goodwill as of 31 December 2021 amounted to EUR 57.4m (prior year: EUR 66.3m). Please refer to the explanations in note 18 "Goodwill."

Additional estimates are required in actuarial calculations of the value of provisions for pensions and similar obligations with regard to the assumptions used. Their carrying amount as of 31 December 2021 is EUR 31.6m (prior year: EUR 35.5m). Please refer to note 29 "Provisions for pensions and similar obligations."

Estimates also have to be made with regard to the recognition of deferred tax assets and expectations regarding future taxable profits and about how these will be offset against tax loss carryforwards or, where applicable, existing deferred tax liabilities. Their carrying amount at the end of the reporting period is EUR 20.0m (prior year: EUR 19.5m). Please refer to note 26 "Deferred taxes."

Assumptions also have to be made with regard to the useful life of property, plant and equipment and other intangible assets and their recoverability has to be assessed for accounting purposes. The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If such indication exists, or annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount.

Management accounting judgments also include the decision as to whether development costs meet the conditions for capitalization as internally generated intangible assets, in particular software.

A test for the impairment of trade accounts receivable is also necessary. Management must assess to what extent the significant risks and rewards are transferred to the factoring company in order to report receivables sold in the course of factoring appropriately in the balance sheet. Please refer to note 7, "Summary of key performance indicatiors and significant accounting policies" – under "Factoring" – for information on the reporting of factoring in the consolidated financial statements.

In accounting for leases, the determination of the lease term, the amount of the lease payments and the incremental borrowing rate used as the discount rate may be discretionary and are based on both assumptions and estimates. In particular, the assessment of renewal, termination and purchase options for property leases involves discretionary decisions by management.

In addition, with respect to the recognition of provisions, the Group has to make assumptions regarding the probability and amount of expected outflows of assets.

According to the provisions of IFRS 15, revenue is recognized when a customer obtains control of goods or services. The timing of the transfer of control – at a point of time or over a period of time – is subject to judgment.

7 Summary of key performance indicators and significant accounting policies

Foreign currency translation

The consolidated financial statements are presented in euros, which is Logwin AG's functional currency and the Group's presentation currency.

The assets and liabilities of group companies with a functional currency other than the euro are translated into euros using the mean exchange rate in effect at the reporting date and revenues and expenses are translated at the average rate during the financial year. Exchange rate gains or losses on foreign currency translation are reported as a separate item under shareholders' equity. On disposal of a foreign operation previously included in the scope of consolidation, the cumulative amount reported in equity relating to that particular foreign operation is recognized in profit or loss for the period.

		Average rate		Closing rate
Currency		2021	2020	31 Dec 2021	Dec 2020 31
1 EUR =
Australian dollar	AUD	1.5750	1.6551	1.5594	1.6025
Brazilian real	BRL	6.3781	5.8908	6.3734	6.3574
Chinese renminbi	CNY	7.6793	7.8741	7.2230	8.0134
British pound	GBP	0.8597	0.8896	0.8393	0.9031
Hong Kong dollar	HKD	9.1938	8.8584	8.8399	9.5210
Polish zloty	PI N	4.565 1	4 4473	4.5960	4.5565
Singapore dollar	SGD	1.5893	1.5742	1.5330	1.6257
Thailand baht	THB	37.8373	35.7089	37.8670	36.7690
US dollar	USD	1.1828	1.1421	1.1334	1.2281
South African rand	7AR	17.4757	18.7624	18.0173	18.0053

The following table shows the development of the exchange rates of the major currencies used in the consolidated financial statements:

Business combinations

If the Logwin Group has obtained control, the Group recognizes business combinations using the acquisition method. In accordance with IFRS 10 "Consolidated Financial Statements" control exists if a group is subject to changing yields from its involvement in an investee or has a right to these yields and has the ability to influence these yields using its control over the investee. The financial statements of subsidiaries are included in the consolidated financial statements from the date at which the Group gains control until the date at which it ceases to have control of a subsidiary, the Logwin Group measures all identifiable assets, liabilities and contingent liabilities acquired at their fair values as of the acquisition date in accordance with IFRS 3.

The carrying amount of any non-controlling interests in the acquired company is calculated from the proportionate share held by the minority stakeholders in the identifiable assets, liabilities and contingent liabilities. Acquiring additional interests in companies over which control was already achieved as a result of previous transactions (non-controlling interests) is deemed in terms of consolidation theory to be a transfer of equity between groups of shareholders. In this case, the acquisition costs for the additional shares are offset against the non-controlling interests to be derecognized. Any difference is offset against retained earnings without affecting profit or loss.

Goodwill acquired in a business combination is initially measured at cost, which is the excess of the purchase price of the business combination over the Group's interest in the fair value of the identifiable assets, liabilities and contingent liabilities. Any gains resulting from a purchase at a price below fair value are directly recognized in profit or loss. Transaction costs are immediately recognized in profit or loss.

Revenue recognition

Under IFRS 15, revenue is recognized when a customer obtains control of the goods or services. The timing of the transfer of control – at a point of time or over a period of time – is subject to judgment.

Sales from transportation services in the business segments Air + Ocean and Solutions are recognized in accordance with IFRS 15.35 on a time-related basis, as it can be assumed that the customer receives the benefits from the company's services on a continuous basis and uses them at the same time while the services are performed. As a rule, the service obligation is fulfilled while the Logwin Group provides the transport services. As a measure of the degree to which a service has been rendered on a given reporting date, the transport duration already elapsed is relation to the expected total duration of the transport (input-oriented method), since it is not practicable to measure the actual distance travelled.

For the provision of transport services in the business segment Air + Ocean, to some extent retrospective discounts are applied, which are based on the sales generated with the customer or the achievement of certain volumes within a defined period, which is generally 12 months. Revenue from services is recognized in the amount of the consideration agreed upon in the contract less the estimated discounts. Revenue is recognized only to the extent that it is highly probable that a significant reversal of the revenue will not be necessary. A provision is recognized for the discounts expected to be granted in respect of the revenues generated up to the end of the respective reporting period. Provisions are recognized for the Group's obligation to compensate for transport damage.

The transport services provided by the business segments Air + Ocean and Solutions generally represent a bundle of services, as the promised services are highly interdependent (IFRS 15.29c) and the Logwin Group provides a significant integration service (IFRS 15.29a), which represents a significant part of the bundle of services. For this reason, the transaction price is not allocated to the promised service components; rather, the transaction price is allocated to the identified service bundle.

Estimates of revenues, costs or contract progress are adjusted when circumstances change. Any resulting increases or decreases in estimated revenues or costs are recognized in profit or loss in the period in which management becomes aware of the circumstances that give rise to the adjustment.

In the case of fixed-price contracts, the customer pays an amount that may be fixed by means of a payment plan. If the services rendered by the Logwin Group exceed the payments received, a contract asset is recognized. If the payments received exceed the services rendered, a contractual liability is recognized.

In accordance with IFRS 15.35, sales of the Solutions business segment from distribution and warehousing must in principal also be recognized over a period of time, as the Logwin Group generally fulfils its performance obligation while the service is being rendered. The Logwin Group recognizes sales in this business segment predominantly in accordance with the simplification rule of IFRS 15.B16 in the amount that the company is permitted to charge the customer, as there is generally a claim to consideration from the customer that directly corresponds to the value of the service already rendered by the company for the customer.

The contracts in the Solutions business segment in connection with warehousing and distribution generally contain several service components which are basically independent, i.e. the customer can use them alone or together with other available resources. However, the Logwin Group provides a significant integration service, so that a bundle of services can generally be assumed.

The Group has no contracts with customers where the period between the transfer of the promised service to the customer and payment by the customer is longer than one year. Accordingly, the promised consideration is not adjusted by the time value of the money.

Entities are required to classify revenue from contracts with customers into categories that reflect the effect of economic factors on the nature, amount, timing and uncertainty of revenue and cash flows. For the Logwin Group, a breakdown of sales by existing segments and geographical regions is considered appropriate for its circumstances.

In the case of business transactions that do not generate sales themselves but are incurred together with the main sales activities, all income and related expenses arising from the same business transaction are netted in accordance with IAS 1.34 if this presentation reflects the content of the business transaction or event; this includes, for example, customs duties passed on.

FRITA

A core measure of earnings for the Logwin Group is EBITA (earnings before interest, taxes and amortization). It is derived from revenues less cost of sales as well as selling, general and administrative costs. It also includes other operses and income and impairment losses on property, plant and equipment and other intangible assets as well as impairments on financial assets measured at amortized cost.

Earnings per share

Earnings per share are calculated as a ratio of the net result for the period attributable to shareholders of Logwin AG to the weighted average number of shares outstanding. Dilution would arise if the result were reduced by potential shares from options and conversion rights exist with regard to the shares of Logwin AG.

Free cash flow

Another major control parameter for the Logwin Group is the free cash flow. The free cash flow in the Logwin Group is defined as the sum of the operating cash flows and investing cash flows less the repayment of lease liabilities.

Intangible assets

Intangible assets acquired separately are measured at cost on initial recognition. The cost of intangible assets acquired in a business combination is the fair value as of the date of acquisition. Internally generated intangible assets are capitalized provided they meet the criteria for capitalization and the costs incurred exceed the materiality threshold. Otherwise costs are recognized in income in the period in which they are incurred. Subsequent measurement is performed at cost less any accumulated amortization and any accumulated impairment losses.

The amortization period and the residual value for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method as appropriate, and treated as changes in accounting estimates. Amortization of intangible assets with finite useful lives is recognized in the income statement in the expense category consistent with the function of the intangible asset. Capitalized intangible assets are amortized over an economic useful life of between 3 and 10 years. Intangible assets with an indeterminable useful life are at least reviewed for recoverability annually.

Gains and losses arising from the disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the income statement under other operating income or other operating expenses when the asset is disposed of.

Property, plant and equipment

Property, plant and equipment are stated at the cost of acquisition, construction less accumulated depreciation and accumulated impairment losses.

Depreciation is calculated on a straight-line basis, based on an economic useful life of between 10 and 50 years for buildings and 3 to 20 years for machinery, operating and office equipment.

The depreciation period, the depreciation method and the residual value for an item of property, plant and equipment are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the depreciation period or method as appropriate, and treated as changes in accounting estimates. Depreciation of property, plant and equipment is recognized in the income statement in the expense category consistent with the function of the asset.

An item of property, plant and equipment is derecognized upon its disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from derecognition of the asset is calculated as the difference between the net disposal proceeds and the carrying amount and recognized in the period the item is derecognized under other operating income or other operating expenses.

Impairment of assets

The Group assesses at each reporting date and occasional whether there is an indication that an asset may be impaired (please see also note 6 "Significant accounting judgments and estimates"). An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use. The recoverable amount is calculated for each individual asset unless the asset does not generate cash flows that are largely independent of those from other assets or groups of assets. In this case, the recoverable amount may be calculated for the cash-generating unit to which the asset belongs.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered to be impaired and is written down to its recoverable amount. To determine the value in use, the estimated future cash flows from the continuing use of the asset and from its ultimate disposal are discounted to their present value using a pre-tax discount rate that reflects current market expectations of the time value of money and the risks specific to the asset. Where impairment losses on property, plant and

equipment or intangible assets have a material impact on the earnings position of the Logwin Group, these are reported in a separate item in the income statement. Impairment losses on trade accounts receivable are reported in a separate item in the income statement.

An assessment is made at each reporting date as to whether there is an indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is determined. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. The increased carrying amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized immediately in profit or loss for the period. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

Special aspects relating to the impairment of goodwill

Goodwill is tested on the level of the business segments Air + Ocean and Solutions for impairment at least once a year or as necessary. The Logwin Group selected 31 December as the date of its annual goodwill impairment test. An impairment test is performed at any time there is an indication of goodwill impairment.

For the purpose of impairment testing, any goodwill acquired in a business combination is allocated, from the acquisition date, to each of the Logwin Group's cash-generating units, or to the groups of cashgenerating units, which are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units.

Each unit to which goodwill is allocated:

• represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and
• · is not larger than a business segment determined in accordance with IFRS 8 "Operating Segments".

Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates. In the Logwin Group, the groups of cash-generating units are the business segments. An impairment loss is recognized in cases where the recoverable amount of the cash-generating unit is less than the carrying amount. Impairment losses on goodwill may not be reversed if the reasons for the impairments cease to exist.

Where part of a cash-generating unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this way is measured based on the relative values of the fair value associated with the operation disposed of and the recoverable amount of the cash-generating unit retained.

Inventories

Inventories are stated at the lower of cost or net realizable value using the moving average method. Risks resulting from slow-moving items and from the obsolescence of inventories, as well as potential losses from pending supply agreements are reflected by writing down inventory items to their net realizable values.

Income taxes

Income tax receivables and income tax liabilities are calculated in accordance with IAS 12. The amount of current tax receivable or liabilities is the best estimate of the tax amount expected that reflects uncertainty related to current income tax, if any. In addition, deferred tax assets and deferred tax liabilities are reported in the balance sheet. Deferred income taxes result from temporary differences between the carrying amounts stated in the consolidated balance sheet and the taxation base of assets and unused tax loss carryforwards. Any future tax savings or tax charges that are likely to result from these differences are reported as assets or liabilities taking into account uncertainties related to income taxes. Deferred tax assets are only stated to the extent that taxable earnings are likely against which the temporary difference or the loss carry forward can be offset. Where the savings or charges underlying the tax deferrals are recognized in equity, the creation or reversal of deferred taxes is also recognized in equity.

The relevant basis for assessment is valued at the rate of tax likely to be applicable at the time of realization. Country-specific tax rates are always applied for companies included in the consolidation. Thus a corporate tax rate of 15% plus the solidarity surcharge ("Solidaritätszuschlag") of 5.5% on corporate income tax is used to calculate deferred taxes for Germany as well as a local trade tax based on the local multiplier. When deferred tax assets exceed the amount of deferred tax liabilities, their recoverability is evaluated taking the probable development in earnings of the relevant group company into account.

Deferred tax assets and deferred tax liabilities are netted when they refer to income taxes that are then assessed by the same tax authority for the same taxable entity.

Assets held for sale

Non-current assets or disposal groups comprising assets and liabilities are classified as held for sale or held for distribution if it is highly probable that they will be realized primarily through sale or distribution rather than through continued use.

In general, these assets or the disposal group are recognized at the lower of their carrying amount and fair value less costs to sell.

Intangible assets and property, plant and equipment are then no longer amortized.

Financial instruments

A financial instrument is any contract that gives rise to both a financial asset of one entity and a financial liability or an equity instrument of another entity.

Recognition and derecognition

Financial instruments are recognized for the first time on the settlement date. A normal market purchase or sale of financial assets is recognized on the trade date, i.e. the date on which the Group undertakes to

buy or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial liabilities are derecognized when the contractual obligations have been fulfilled, cancelled or expired.

Valuation

On initial recognition, the Logwin Group measures a financial asset at its transaction price plus - in the case of a financial asset that is not subsequently measured at fair value through profit or loss - the transaction costs directly attributable to the acquisition of this asset. Transaction costs of financial assets measured at fair value are recognized as an expense in profit or loss.

The subsequent measurement of financial assets is based on their classification into one of the categories described below

Classification of financial assets

The classification of financial assets is based on three categories, which result in different measures of value and different recognition of changes in value. The classification is based both on the contractual cash flows of the instrument and on the business model in which the instrument is held.

The Group determines the classification of its financial assets at initial recognition and reviews this classification at the end of each financial year, whereby a distinction is made between debt instruments and equity instruments as follows.

Debt instruments

The measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. The Logwin Group classifies its debt instruments into one of the following three measurement categories:

• At amortized cost: Assets which are held to collect the contractual cash flows and for which these cash flows represent exclusively interest and principal payments are measured at amortized cost. Interest income from these financial assets is reported under financial income using the effective interest method. Gains or losses from derecognition are recognized directly in the income statement andtogether with the foreign currency gains and losses - are reported under other gains/losses.
• FVOCI: Assets held to collect contractual cash flows and to sell financial assets, where the cash flows are exclusively interest and principal payments, are measured at fair value through other comprehensive income. Changes in the carrying amount are recognized in other comprehensive income, except for impairment gains or losses, interest income and foreign exchange gains or losses that are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to the income statement and reported in other gains/losses.
• · FVTPL: Assets that do not meet the criteria of the category "measured at amortized cost" or "FVOC" are classified as at fair value through profit or loss (FVTPL). Gains or losses on a debt instrument subsequently measured at FVTPL are netted against other gains or losses in the period in which they arise.

Equity instruments

The Logwin Group measures all equity instruments held at fair value through profit or loss in the category at fair value through profit or loss (FVTPL).

Changes in the fair value of financial assets at fair value through profit or loss (FVTPL) are recognized in the income statement under other gains/losses.

Financial assets	Subsequent measurement	Changes in value
Financial instruments at fair value through profit or loss (FVTPL)	Fair Value	Realized and unrealized gains and losses are recognized in profit or loss.
Debt instruments at fair value through other comprehensive income (FVOCl with recycling)	Fair Value	Impairment losses, currency translation and effective interest are recognized in profit or loss, other changes in value are recognized directly in equity, recognition or transfer from equity to profit or loss on disposal is recognized in profit or loss (recycling).
Equity instruments at fair value through profit or loss (FVOCl option, without recycling)	Fair Value	Dividends recognized in profit or loss, other changes in value are recognized directly in equity, no recognition or reclassification from equity to profit or loss on disposal (without recycling)
Financial instruments measured at amortized cost	Amortized cost	Recognition of impairment losses, currency translation and effective interest in profit or loss

The following table provides an overview of the various categories:

There were no reclassifications between the applicable measurement categories in accordance with IFRS 9 in the 2021 financial year.

The assessment of the Group's business model was performed for the first time at the date of initial application of IFRS 9, 1 January 2018 and is reviewed regularly. The assessment as to whether the contractual cash flows from debt securities consist exclusively of principal and interest payments was based on the facts and circumstances at the time the assets were initially recognized.

Classification of financial liabilities

A financial liability is measured at fair value through profit or loss if it is held for trading or designated accordingly upon initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. Changes in fair value attributable to changes in the liability are recognized in other comprehensive income. The remaining change in fair value is recognized in profit or loss.

Other non-derivative financial liabilities are initially measured at fair value less directly attributable transaction costs. In subsequent measurement, these liabilities are measured at amortized cost using the effective interest method.

Financial liabilities	Subsequent measurement	Changes in value
Held for trading or designated as at fair value through profit or loss on initial recognition	Fair Value	Realized and unrealized gains and losses are recognized in profit or loss
At amortized cost	Amortized cost	Changes in value are recognized in profit or loss immediately

The Group did not designate any financial assets or liabilities at fair value through profit or loss upon initial recognition. No reclassifications were effected between the categories in accordance with IFRS 9 during financial year 2021.

Categories of Financial Assets and Financial Liabilities - Disclosure The Logwin Group generally holds the following financial instruments:

• Cash and cash equivalents
• Trade accounts receivable and contract assets
• Other receivables and assets
• Financial assets
• Derivative financial instruments
• Trade accounts payable and other financial liabilities as well as contract liabilities
• · Leasing liabilities

Cash and cash equivalents

Cash and cash equivalents include bank balances, cash in hand, checks and short-term investments. Cash equivalents are short-term, highly liquid financial investments with an original term of three months or less that can be converted into cash at any time and are subject to an insignificant risk of changes in value. Cash and cash equivalents are measured at amortized cost.

Trade accounts receivable

Trade accounts receivable are amounts owed by the customer for services rendered in the ordinary course of business. They are generally payable within a few weeks, contain no significant financing components and are classified as current. The Group holds trade receivables to collect contractual cash flows and subsequently measures them at amortized cost. Due to the short-term nature of the receivables, their carrying amount corresponds to their fair value.

Factoring

The Logwin Group uses a factoring program for major German Group companies. This is a flexible form of financing, i.e. by selling the receivables the factoring company provides a line that Logwin can draw on in whole or in part if required. The receivables from the factoring company resulting from the sale of the receivables are shown in the balance sheet under trade receivables and recognized at amortized cost, insofar as the line is not or only partially drawn. The Logwin Group recognizes the utilization of the factoring line as a reduction in receivables, as essentially all risks and opportunities arising from the receivables are transferred to the factoring company. Accordingly, the cash flow from the utilization of the line is also reported in the item "Net cash outflow/inflow from the utilization or repayment of the factoring line" within the operating cash flow if a utilization or repayment of a previously made utilization took place in the reporting period. No material payment obligations are to be expected from the ongoing commitment. There are no obligations to repurchase receivables.

Investments

Under investments, the following equity and debt instruments with long-term use are measured at fair value through profit or loss (FVTPL):

• Financial investments in debt securities that are neither measured at amortized cost nor at fair value through other comprehensive income
• Financial instruments in equity instruments for which the entity has elected not to recognize changes in fair value in other comprehensive income.

Other receivables and assets

Other receivables and assets include loans granted, bonds and other receivables with repayment periods of less than one year. The Logwin Group measures its other financial assets at amortized cost if the financial asset is held as part of a business model whose objective is to hold financial assets to collect the contractual cash flows and the terms of the contract result in cash flows that represent only principal and interest payments on the outstanding principal amount. Due to their short-term nature, their carrying amount corresponds to their fair value.

Derivative financial instruments

The Logwin Group uses forward exchange contracts to hedge the risk of a change in the value of corresponding underlying transactions due to changes in market prices. Derivatives are used exclusively for economic hedging purposes and not as speculative investments. Since they do not meet the criteria for hedge accounting, they are classified as "held for trading" for accounting purposes and recognized at fair value through profit or loss, with changes in value recognized in profit or loss. They are presented as current assets or liabilities since they are expected to be settled within 12 months of the end of the reporting period.

Trade payables and other financial liabilities

Trade payables and other liabilities relate to outstanding liabilities for goods and services received by the Logwin Group before the end of the fiscal year. Other financial liabilities relate to borrowings and are initially recognized at fair value less transaction costs incurred and subsequently at amortized cost using the effective interest method. These liabilities are reported as current liabilities unless their settlement is not due within 12 months of the reporting period.

Valuation and recording of expected credit losses

The Logwin Group recognizes an allowance for expected credit losses on investments in debt instruments measured at amortized cost, lease receivables and contract assets. The amount of expected credit losses is updated at each balance sheet date to reflect changes in credit risk since the initial recognition of the respective financial instrument.

The general impairment model provides for three levels that determine the amount of losses to be recognized and the interest received in the future. Under this model, expected losses are recognized at the present value of the expected 12-month credit loss on initial recognition (Level 1). If there is a significant increase in the default risk, the allowance for losses on loans and advances must be increased to the amount of the expected losses for the entire remaining term (Level 2). If there is objective evidence of impairment, interest is recognized on the basis of the net carrying amount less allowance for losses) (Level 3).

For trade receivables and contract assets, the simplified approach of the impairment model is applied, according to which a provision for losses on loans and advances is recognized for all instruments, irrespective of their credit quality, in the amount of the expected losses over the remaining term. Credit risk within each group is segmented by common credit risk characteristics. This is usually based on an external credit risk assessment. Receivables sold to a factoring company are valued on the basis of the rating of the factoring company unless the purchase limit of the individual customer or the total receivables portfolio has been exceeded. In this case, the individual rating of the customer concerned is used as the basis.

The estimated expected credit losses have been calculated since 1 January 2021 based on information from an external service provider on expected default rates. The changeover has not led to any significant changes compared with the calculation method used until 31 December 2020. Furthermore, default rates (LGD) are taken into account, which are derived from empirical values of recovery rates.

The estimated valuation allowances on cash and cash equivalents and on other financial instruments measured at amortized cost are calculated on the basis of expected losses within twelve months and reflect the short maturities. This is based on the assumption that cash equivalents and other financial instruments measured at amortized cost have a low default risk based on their external rating. Cash and cash equivalents that are classified as investment grade (AAA to BBB-) by Standard & Poor's within the framework of the rating are generally classified as being associated with a low default risk. The Logwin Group takes into account the probability of default at the initial recognition of assets and the existence of a significant increase in the default risk during all reporting periods. In order to assess whether the default risk has increased significantly, Logwin compares the default risk with respect to the asset on the balance sheet date with the default risk at the time of initial recognition.

The Group regularly monitors the effectiveness of the criteria used to determine whether a significant increase in credit risk has occurred and revises them as necessary to ensure that the criteria are able to detect a significant increase in credit risk before the amount becomes overdue.

Macroeconomic information such as growth rates of gross domestic product or world trade are included as part of the valuation model.

Financial assets are written down if recoverability is no longer expected after an appropriate assessment. An extemal rating of D is generally used as an indication that the assets are no longer expected to be realizable. In the area of trade receivables, further indicators are overdue by more than 180 days, the initiation of insolvency proceedings or legal action. The amount of the write-down required for these receivables with impaired creditworthiness is determined on the expected lifetime credit loss.

Financial assets are derecognized when there are no longer reasonable expectations that legal recovery measures will be successful. A discretionary decision is made on a case- by-case basis as to the extent to which settlement of the contract is still probable.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. The Group must have access to the principal or most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Logwin Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Assets and liabilities recorded at fair value must be classified according to the valuation technique applied. The different levels are defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
• Level 3: Inputs for the assets or liability that are not based on observable market data

Transfers between levels of the fair value hierarchy take place at the end of the reporting period.

In the Logwin Group, recognition at fair value applies to financial instruments classified as fair value through profit or loss (FVTPL) and to non-financial assets if they were written down to their fair value less costs to sell after being tested for impairment or due to their classification as "held for sale".

Leases

The Logwin Group has adopted the new leasing standard IFRS 16 on 1 January 2019 for the first time. The Group has made use of the simplification option for the initial recognition of the right of use in the amount of the lease liability less existing accruals for rent-free periods. At the date of transition, the Group applied IFRS 16 to all contracts entered into before 1 January 2019 and identified as leases in accordance with IAS 17 and IFRIC 4.

For contracts entered into after 1 January 2019, it is determined at the conclusion of the contract whether the contract constitutes a lease or contains such a lease. An agreement constitutes or contains a lease if the agreement entitles the holder to exercise control over the use of an identified asset for an agreed period in return for payment. The following criteria are used to assess whether a contract meets this requirement:

• · The contract includes the use of an explicitly or implicitly specified, identified asset. The asset must be physically identifiable or substantially comprise the entire capacity of an identifiable asset.
• The Group has the right to exercise control over the use of the identified asset. This is the case when the Group has the power to govern the use of the identified asset and obtain substantially all the economic benefits from its use.

Both criteria must be met over the entire term of the contract. The Logwin Group does not separate the leasing and non-leasing components. The group exercises the option of not recognizing short-term leasing relationships and leasing relationships of low value.

At the inception of a lease, the Group recognizes a right of use asset in the identified asset and the corresponding lease liability.

The right of use is initially measured at cost. These include the value of the leasing liability on initial recognition, leasing payments less leasing incentives received, which were made at or before conclusion of the contract, as well as initial direct costs incurred by the Group and estimated costs of dismantling the leased asset, restoring its location or restoring the leased asset to a contractually agreed condition.

The right of use is subsequently depreciated on a straight-line basis over the lease term or the economic life of the leased asset, whichever is shorter. If it is sufficiently certain that a purchase option will be exercised at the inception of the lease or if the lease provides for a transfer of ownership to the lessee at the end of the lease term, the expected useful life of the leased asset is the useful life of the asset. In addition, the carrying amount of the leased asset is reduced by impairment losses in accordance with IAS 36.

The lease liability is recognized at the inception of the lease at the present value of the future lease payments. If determinable, the present value is calculated using the interest rate on which the lease is based. If this interest rate cannot be easily determined, the Logwin Group's respective incremental borrowing rate is used. As a rule, the Logwin Group uses the incremental borrowing rate to calculate the present value. The leasing installments included in the calculation of the present value comprise the following components:

• · fixed lease payments less leasing incentives granted by the lessor for the conclusion of the contract;
• · variable lease payments linked to an index or interest rate;
• amounts expected to be payable by the lessee under residual value guarantees;
• the exercise price of a call option and lease payments upon exercise of a lease extension option, if the option is already expected to be exercised at that time;
• contractual penalties for the termination of the leasing agreement if at the beginning of the leasing agreement it is already assumed that the lessee will terminate the agreement.

Lease liabilities are subsequently measured at amortized cost using the effective interest method. The lease liability is revalued if there is a change in future lease payments resulting from a change in an index or interest rate, or if there is a reassessment of the exercise of purchase, renewal or termination options, or if there is a change in the assessment of the amounts payable under a residual value guarantee and due to other modifications to the lease that do not result in a new lease. The revaluation results in a corresponding adjustment to the carrying amount of the right of use or, if this is reduced to zero, the excess adjustment amount is recognized in the income statement.

Provisions

Provisions are recognized in accordance with IAS 37 when an obligation is present as a result of a past event and can be reliably assessed and it is likely that an outflow of resources will be required to settle the obligation. They are recognized in the amount of the probable utilization. Provisions with an expected residual term of more than one year are recognized at their present value.

Provisions for pensions and similar obligations

The Logwin Group has both defined benefit and defined contribution plans to meet pension obligations.

Defined benefit plans are reported as a liability according to IAS 19 under "Provisions for pensions and similar obligations". Pension obligations relate primarily to employees of group companies in Germany and are mainly vested benefits in connection with benefit plans closed in the past. Furthermore, all Austrian employees are entitled under Austrian law prior to 31 December 2002 ("Abfertigung alt"), in the event of retirement or involuntary termination of employment to severance pay ranging from 2 to 12 months of the last monthly salary depending on the period of service.

Defined benefit obligations are measured by independent actuaries in accordance with the projected unit credit method prescribed in IAS 19. Consequently, the present value of the pension obligations expected in connection with possible future benefits becoming payable is recognized as the pension for benefit entitlements, if the respective obligation has vested fully or pro rata temporis as of the measurement date on the basis of the pensionable service rendered. Actuarial assumptions in connection with discount rates, mortality rates, future salary and pension trends as well as turnover rates are taken into account when measuring the obligations.

Where there are plan assets, the pension provisions are calculated by netting these assets and the present value of the defined benefit obligation ("funding status"). If the obligation exceeds the plan assets (the plan assets exceed the obligation), the netted amount is referred to as the net defined benefit liability (asset), Remeasurements of the net defined benefit liability (asset) include actuarial gains or losses from the obligation as well as returns on plan assets not included in interest income. They result from differences between the actual development compared to the prior-year assumptions as well as changes in assumptions, and are recognized in equity. The service costs are reported under operating expenses and the amounts resulting from unwinding of the discount on the obligation netted with the interest income from plan assets are included in the financial reports are prepared each year.

In addition to the defined benefit plans there are also defined contribution plans. These generally include the statutory pension insurance applicable in Germany and some other countries. Contributions paid into these defined contribution plans are recognized as expenses in the financial year.

8 Segment reporting

The classification of segments is made according to the business segments of the Logwin Group. The segment structure reflects the current organizational and management structure of the Logwin Group. This means that reporting is in line with the requirements of IFRS 8.

The Air + Ocean business segment provides worldwide transportation and logistics solutions with a focus on intercontinental air and sea freight, frequently in connection with upstream and downstream value added services. The Air + Ocean business segment draws on an international network that is divided into the three regions Europe Middle East Africa, Americas and Asia. As a specialist in contract logistics, the Solutions business segment offers individual customer- and industry-oriented solutions in the retail sector as well as in the area of industrial contract logistics with a focus on the chemical and automotive sectors. The solutions range from supply chain management, transportation and warehousing through to logistical value added services and complete outsourcing projects. The Solutions business segment also maintains special networks for the fashion and consumer goods industries ("Retail Network").

Transactions between the segments are made at "arm's length", identical with transactions with third parties. The information on the business segments is reported after consolidation of intrasegment transactions. Transactions between the segments are eliminated in the column "Consolidation". The result of each segment is measured by management based on operating result before goodwill impairment (EBITA). General expenses and income which cannot be directly allocated to the segments are shown in the "Other" column.

2021 In thousand EUR	Air + Ocean	Solutions	Other	Conso- lidation	Group
External revenues	1,515,258	335,469	1,109		1,851,836
Intersegment revenues	1,759	1,572	1.166	-4,497
Revenues	1,517,017	337,041	2,275	-4,497	1,851,836
Operating result before impairments	107,966	6,123	-12,024		102,065
Impairment and reversal of impairments of property, plant and equipment and other intangible assets			-1,125		-1,125
Operating result before goodwill impairment (EBITA)	107,966	6,123	-13,149		100,940
Goodwill impairment		-8,953			-8,953
Net result before interest and income taxes (EBIT)	107,966	-2,830	-13,149		91,987
Financial result					-3,181
Net result before income taxes					88,806
Income taxes					-25,296
Net result					63,510
Segment assets	374,226	114,822	37,259		526,307
Unallocated assets					270,718
Total consolidated assets					797,025
Segment liabilities	319,077	78,259	18,345		415,681
Unallocated liabilities					98,859
Total consolidated liabilities					514,540

The tables below set forth segment information of the business segments for the periods from 1 January to 31 December 2021 and 2020.

2020	Air + Ocean	Solutions	Other	Conso- lidation	Group
In thousand EUR
External revenues	789,107	332,853	1,337		1,123,297
Intersegment revenues	596	1,074	1,852	-3,522
Revenues	789,703	33,927	3,189	-3,522	1,123,297
Operating result before impairments	49,235	6,821	-7,862		48,194
Impairment of property, plant and equipment and other intangible assets	-175	-267			-442
Operating result before goodwill impairment (EBITA)	49,060	6,554	-7,862		47,752
Goodwill impairment
Net result before interest and income taxes (EBIT)	49,060	6,554	-7,862		47,752
Financial result					-3,880
Net result before income taxes					43,872
Income taxes					-9,138
Net result					34,734
Segment assets	223,707	117,182	42,342		383,231
Unallocated assets					191,191
Total consolidated assets					574,422
Segment liabilities	167,146	70,502	16,507		254,155
Unallocated liabilities					95,415
Total consolidated liabilities					349,570

	Depreciation and amortization		Additions to non-current assets
In thousand EUR	2021	2020	2021	2020
Air + Ocean	-16,455	-16,589	12,686	14,139
Solutions	-16,009	-16,461	15,358	29,523
Other	-6,728	-5,600	7,712	13,038
Total	-39,192	-38,650	35,756	56,700

Additions to non-current assets do not include additions to financial instruments and deferred tax assets.

Information according to geographical areas

The tables below present geographical information on revenues and specific items of non-current assets for financial years 2021 and 2020.

	2021			2020
In thousand EUR
Germany	827,801	45%	491,549	44%
Austria	283,493	15%	219,970	20%
Other EU	241,559	13%	107,942	10%
Asia/Pacific	406,541	22%	253,490	23%
Other	92,442	5%	50,346	3%
Total revenues	1,851,836	100%	1,123,297	100%

Revenues from external customers are allocated according to the geographical location of the billing entity. In 2021, 8.3% (prior year: 12.4%) or EUR 154.5m (prior year: EUR 139.1m) of the Logwin Group's total revenues accounts to a customer in the Solutions business segment.

	31 Dec 2021		31	Dec 2020
In thousand EUR
Germany	82,590	66%	90,350	64%
Austria	9,344	7%	10,370	7%
Luxenburg	2,202	2%	2,963	2%
Other EU	19,153	15%	23,125	16%
Asia/Pacific	11,188	9%	12,265	9%
Other	1,261	1%	1,589	2%
Total non-current assets	125,738	100%	140,662	100%

Non-current assets are reported by location of the respective assets. They comprise property, plant and equipment and other intangible assets including right of use assets from leases.

Notes to the Income Statement

9 Revenues from contracts with customers

Breakdown of revenues from contracts with customers

The Group primarily generates revenues from the transfer of services for which revenue is recognized on a period basis. Revenues are generated in the following segments and geographical regions:

2021	Air + Ocean	Solutions	Other	Group
In thousand EUR
Germany	671,947	154,745	1,109	827,801
Austria	116,220	167,273		283,493
Other EU	228,108	13,451		241,559
Asia/Pacific	406,541			406,541
Other	92,442			92,442
Total revenues	1,515,258	335,469	1,109	1,851,836

2020	Air + Ocean	Solutions	Other	Group
In thousand EUR
Germany	315,423	174,789	1,337	491,549
Austria	71,421	148,549		219,970
Other EU	98,427	9,515		107,942
Asia/Pacific	253,490			253,490
Other	50,346			50,346
Total revenues	789,107	332,853	1,337	1,123,297

Sales to customers in the Air + Ocean segment result from transportation and logistics solutions with a focus on intercontinental air and sea freight, often in connection with numerous upstream and downstream value added services. In the Solutions business segment, sales revenues result from individual customer and industry solutions in the retail sector and in industrial contract logistics with a focus on chemicals and automotive – from supply chain management through transport, warehousing and value-added logistics services to complete outsourcing projects. Sales are also generated from special networks for the fashion and consumer goods sectors.

The Group makes use of the practical experience of IFRS 15.121 with regard to the disclosure of the transaction price allocated to the remaining service obligations, as Logwin either generally has a remuneration entitlement that directly corresponds to the service already provided by the company to the customer, or the outstanding service obligation is part of a contract with an expected original term of a maximum of one year.

Revenues from service obligations fulfilled in earlier periods amounted to EUR 3,145k in the reporting period (prior year: EUR 1,389k).

10 Expenses by nature

	2021	2020
In thousand EUR
Purchased services	-1,466,428	-807,172
Materials and supplies	-5,330	-7,138
Personnel expenses	-205,880	-191,893
Depreciation and amortization	-39.192	-38,650
Sundry expenses	-34,122	-34,340
Total cost of sales, selling, general and administrative costs	-1,750,952	-1,079,193

Purchased services mostly comprise transportation services provided by third parties.

11 Other operating income and expense

In thousand EUR	2021	2020
Foreign exchange gains	8.374	8,237
Gains from disposal of non-current assets	288	1,189
Sundry income	1.274	4,125
Other operating income	9,936	13,551

In the prior year, the item "Gains from the disposal of non-current assets" includes income of EUR 796k from the sale of a site that was allocated to the Solutions business segment. Sundry income included in the prior year payments from insolvency proceedings in the amount of EUR 1,965k.

In thousand EUR	2021	2020
Foreign exchange losses	-8,076	-8,332
Losses from disposal of non-current assets	-437	-126
Sundry expenses	-104	-144
Other operating expenses	-8,617	-8,602

In the prior year, the item "Sundry expenses" includes expenses in the amount of EUR-6k from the realization of foreign currency reserves recognized in other comprehensive income of a liquidated company from the Air + Ocean business segment.

Gains and losses from foreign exchange reflect the volume of business activities invoiced in foreign currencies. The net income/expense from foreign exchange gains and losses is as follows:

In thousand EUR	2021	2020
Foreign exchange gains	8.374	8,237
Foreign exchange losses	-8,076	-8,332
Foreign exchange effects, net	298	-95

12 Impairment and reversal of impairments of property, plant and equipment and other intangible assets

In the financial year 2021, impairments of operational IT systems and other software amounting to EUR 3.422k were recognized in the Other segment. In the opposite direction, the reversal of an impairment loss on a logistics property in connection with its disposal was recognized in the amount of EUR 2,216k as well as on associated technical equipment in the amount of EUR 81k.

In 2020, impairment losses of EUR 267k were recognized on machinery and vehicles in the course of the discontinuation of a site of the Solutions business segment. In the Air + Ocean business segment a further impairment on technical equipment in the amount of EUR 175k was recognized.

13 Government Grants

Due to the Covid 19 pandemic, government grants in the amount of EUR 2,200k were recognized in the income statement in the reporting year 2021, among other things for short-time work (prior year: EUR 3,089k).

14 Financial result

The following table shows the composition of the financial result in financial years 2021 and 2020:

	2021	2020
In thousand EUR
Finance income	183	255
Interest expenses from bank accounts	-5 14	-306
Interest expenses from lease liabilities	-2,141	-2,991
Net interest expense from the unwinding of the discount on defined benefit obligations and from the return on plan
assets	-132	-257
Other interest expenses	-256	-495
Foreign currency effects from intragroup financing	-32 1	-86
Finance expenses	-3,364	-4,135
Financial result	-3,181	-3,880

Other interest expenses include guarantee commissions and interest expenses from the compounding of other long-term provisions.

15 Income taxes

Tax expenses for the Logwin Group are as follows:

In thousand EUR	2021	2020
Curent income taxes	-22,944	-9,694
Deferred income taxes	-2,352	556
Total income taxes	-25,296	-9,138

Reconciliation of expected income tax expenses to the tax expenses in the income statement:

	2021	2020
In thousand EUR
Net result before income taxes	88,806	43,872
Expected income taxes (tax rate 28.26%; prior year: 28.26%)	-25,097	-12,398
Non-deductible goodwill impairment	-2,530
Foreign tax rate differential	3,979	2,315
Expenses not deductible for tax purposes	-2,440	-2,319
Tax effects relating to prior periods	-815	46
Changes in valuation allowances and effects from not recognizing deferred tax assets	1,713	3,051
Other taxation effects	-106	167
Total income tax expenses	-25,296	-9,138

The weighted tax rate of 28.26% (prior year: 28.26%) used for 2021 corresponds to the tax rate of Logwin AG.

The position "Changes in valuation allowances and effects from not recognizing deferred tax assets" includes effects from deferred taxes not recognized in the amount of EUR 6,608k (prior year: EUR 6,458k) and opposite effects from the non-recognition of deferred tax assets in the amount of EUR –4,973k (prior year: EUR –3,407k). At Logwin AG, additional deductible expenses arose in the reporting year from impairments less taxable income from the reversal of impairment carrying amounts amounting to EUR 9,827k (prior year: EUR-28,136k), which increased the noncapitalized tax loss carryforwards by the same amount or were offset against them.

Notes to the Statement of Cash Flows

16 Proceeds from disposals of other business operations and non-current assets held for sale

The proceeds from the disposal of other business units and non-current assets held for sale in the fiscal year 2021 result from the sale of a logistics property of the Other segment. The proceeds from the disposal of other business units in the 2020 financial year result from the sale of a branch office that was allocated to the Solutions business segment.

	2021	2020
In thousand EUR
Consideration received	8,100	1.450
Proceeds from disposals of other business operations and
non-current assets held for sale	8,100	1.450

In 2021 and 2020, the following assets and liabilities were disposed of:

	2021	2020
In thousand EUR
Goodwill		502
Property, plant and equipment including rights of use in accordance with
IFRS 16	8,100	3,542
Assets disposed of	8,100	4,044
Lease liabilities		3,208
Pension provisions		183
Liabilities disposed of	-	3,391

The assets and liabilities disposed of in 2020 had already been reclassified as held for sale at the previous reporting date.

17 Liabilities from financing activities

The following tables show the development of liabilities from financing activities of the Logwin Group which are included in financing cash flows:

In thousand EUR	Loans and borrowings	Liabilities from leases
1 Jan 2021	66	90,832
Cash effective	67	-33,528
Non-cash effective:
New lease agreements		24,124
Revaluation		-2,444
Foreign exchange effects	2	531
31 Dec 2021	135	79,515

In thousand EUR	Loans and borrowings	Liabilities from leases
1 Jan 2020	79	90,959
Cash effective	-10	-31,442
Non-cash effective:
New lease agreements		37,401
Revaluation		-3,746
Foreign exchange effects	-3	-2,340
31 Dec 2020	66	90,832

The asset additions of EUR 24,124k (prior year: EUR 37,401k) resulting from new lease agreements, as well as the associated liabilities, are non-cash effective and therefore not included in the investing cash flows.

Notes to the Balance Sheet

18 Goodwill

Allocation of goodwill to cash-generating units

The business segments are taken to be groups of cash-generating units of the Logwin Group. The goodwill acquired in the course of business combinations has been allocated to the business segments as follows:

In thousand EUR	31 Dec 2021	31 Dec 2020
Air + Ocean	45,701	45,701
Solutions	11,665	20,618
Goodwill	57,366	66,319

	Goodwill
In thousand EUR
Carrying amount as of 1 Jan 2020	66,319
Carrying amount as of 31 Dec 2020	66,319
Acquisition cost	220,076
Accumulated impairment	-153,757
Carrying amount as of 1 Jan 2021	66,319
Impairment	-8,953
Carrying amount as of 31 Dec 2021	57,366
Acquisition cost	220,076
Accumulated impairment	-162,710

Goodwill impairment testing

The Logwin Group performed its annual goodwill impairment test as of 31 December 2021. For the purpose of the goodwill impairment test, the recoverable amount of the cash-generating unit was determined on the basis of the calculation of the value in use using cash flow forecasts that are based on a financial plan covering a period of a maximum of five years. The financial plan is based on the business plans of the business segments.

The cash flow forecasts are based on the following underlying assumptions:

• Budgeted revenue growth rates: the anticipated growth rates of the industry, which is relevant for the respective business segment, are used to determine the budgeted revenue growth rates. Overall stable revenue growth was assumed over the coming years.
• Budgeted operating profit margins: the profit margins generated in the preceding years, increased for expected efficiency improvements, are used to determine the budgeted operating profit margins. Allowance was made here for the fact that developments in earnings will also depend on the economic situation. Deviations from planning were analyzed and taken into account where necessary in the form of discounts on the business plans presented. The amount of necessary discounts is reestablished in each case when the impairment test is performed.

The business plan of the Solutions business segment forecasts an EBITA margin of 1.7% for the last planning year (prior year: 2.7%). The average EBITA margin of 2021 (actual) through to 2025 (plan) of 1.6% (prior year: 2.6%) was taken as the sustainable EBITA margin to calculate the perpetual annuity. Beyond the five-year period the growth rate used was unchanged from the prior year at 0.75%. The expected cash flows of the business segment were discounted using a discount rate of 5.9% after tax (prior year: 5.4%). This corresponds to an interest rate of 7.5% before tax (prior year: 6.9%). A sustainable EBITA margin of 3.7% (prior year: 3.7%) and an unchanged growth rate of 1.5% were used for the Air + Ocean business segment. The expected cash flows of the business segment were discounted using a discount rate of 6.3% after tax (prior year: 5.9%). This corresponds to an interest rate of 8.0% before tax (prior year: 7.6%).

As a result of the impairment test, the Solutions business segment had to recognize an impairment loss of EUR 8,953k to the recoverable amount of EUR 46.9m. This took into account declining business volumes, particularly in the German retail network, and the continuing intense competitive situation.

For the business segment Air + Ocean, no change in material assumptions deemed possible would lead to an impairment.

If the sustainable EBITA margin assumed for the financial plan of the Solutions business segment were to be reduced by 0.5% points from the current 1.6% to 1.1%, this would result in a complete impairment of the goodwill allocated to the Solutions business segment. Also, an increase in the weighted average cost of capital by 1.0% point, which is reasonably assumed to be possible, would result in a full impairment loss.

19 Other intangible assets

Amortization of intangible assets of EUR 154k is included in cost of sales (prior year: EUR 381k). A further EUR 4k (prior year: EUR 6k) relates to selling costs and EUR 3,529k (prior year: EUR 2,029k) to general and administrative costs. The other intangible assets of the Logwin Group do not include any internally generated assets as of 31 December 2021.

	Software, concessions and other licenses
In thousand EUR
Acquisition cost	44,877
Accumulated impairment	-30,965
Carrying amount as of 1 Jan 2020	13,912
Currency differences	-22
Additions	11,010
Disposals	-6
Amortization	-2,416
Impairments
Carrying amount as of 31 Dec 2020	22,478
Acquisition cost	55,272
Accumulated impairment	-32,794
Carrying amount as of 1 Jan 2021	22,478
Currency differences	-9
Additions	5,694
Disposals	-75
Amortization	-3,687
Impairments	-3,422
Carrying amount as of 31 Dec 2021	20,979
Acquisition cost	59,805
Accumulated impairment	-38,826

In the reporting year, impairment losses of EUR 3,422k were recognized on IT programs due to a change in the scope of use.

20 Property, plant and equipment

Cost of sales includes depreciation of property, plant and equipment of EUR 30,951k (prior year: EUR 31,528k), while selling costs include depreciation of property, plant and equipment of EUR 871k (prior year: EUR 834k) and general and administrative costs include depreciation of property, plant and equipment of EUR 3,683k (prior year: EUR 3,872k).

In thousand EUR	Land and buildings	Machinery and equipment	Tools, fixtures, furniture and office equipment	Vehicle fleet	Construction in progress	Total
Acquisition cost	161,050	36,083	43,504	27,107	1,185	268,929
Accumulated depreciation and impairment losses	-74,992	-31,551	-33,746	-12,767		-153,056
Carrying amount as of 1 Jan 2020	86,058	4,532	9,758	14,340	1,185	115,873
Currency differences	-1,972	-28	-293	-195		-2,488
Additions	31,395	2,731	4,022	6,841	701	45,690
Transfers	65	887	83		-1,035
Disposals	-2,526	-280	-353	-1,056		-4,215
Depreciation	-25,067	-890	-4,059	-6,218		-36,234
Impairment		-374		-68		-442
Carrying amount as of 31 Dec 2020	87,953	6,578	9,158	13,644	851	118,184
I hereot rights of use from leases	74,597	138	2,533	9,319		86,587
Acquisition cost	182,340	38,181	44,450	28,979	85 1	294,801
Accumulated depreciation and impairment losses	-94,387	-31,603	-35,292	-15,335		-176,617
Carrying amount as of 1 Jan 2021	87,953	6,578	9,158	13,644	851	118,184
Currency differences	526	6	04	13		639
Additions	20,913	435	2,858	4,792	1,064	30,062
Transfers	244	159	176	250	-829
Disposals	-9,844	-149	-450	-42 1	-54	-10,918
Depreciation	-24,837	-9 10	-3,881	-5,877		-35,505
Reversal of impairments	2,216	81				2,297
Carrying amount as of 31 Dec 2021	77,171	6,200	7,955	12,401	1,032	104,759
I hereot rights of use from leases	65,006	189	1,575	8,283		75,053
Acquisition cost	182,277	35,322	43,141	30,030	1,032	291,802
Accumulated depreciation and impairment losses	-105,106	-29,122	-35,186	-17,629		-187,043

As of 31 December 2021 and 2020, no property, plant and equipment was mortgaged to secure loans.

In the reporting year, a past impairment of a property including technical equipment has been reversed up to its disposal price less costs to sell amounting to a total of EUR 2,297k due to its sale.

21 Leasing

The Logwin Group leases significant parts of the logistics and office properties it uses. Contracts for logistics properties generally have a term of between 5 and 10 years and office properties generally have a term of between 3 and 6 years. To ensure operational flexibility, many of the contracts contain rental extension, purchase or termination options in favour of the Logwin Group.

For some of the properties, subleases exist that qualify as operating leases.

In addition, a significant portion of the Logwin Group's vehicle fleet is leased. The leasing agreements have terms of between 3 and 6 years and in some cases include rental extension or purchase options.

The right of use assets recognized in the balance sheet are included in property, plant and equipment as of 31 December 2021 and 2020 as follows:

	31 Dec 2021	31 Dec 2020
In thousand EUR
Land and building	65,006	74,597
Machinery and equipment	189	138
Tools, fixtures, furniture and office equipment	1,575	2,533
Vehicle fleet	8,283	9,319
Total rights of use	75,053	86,587

As of 31 December 2021, liabilities from leases in the amount of EUR 79,515k were reported in the balance sheet (prior year: EUR 90,832k).

Maturity analysis

The following cash outflows to service the leasing liabilities are expected in the coming years:

In thousand EUR	31 Dec 2021	31 Dec 2020
Less than 1 year	28,694	31,473
1 to 5 years	45,282	52,417
More than 5 years	7,823	10,330
Total undiscounted lease payments	81,799	94,220
Present value of lease payments	79,515	90,832

The present value of lease payments is presented in the balance sheet in the amount of EUR 27,884k (prior year: EUR 30,233k) as current liabilities from leases and in the amount of EUR 51,631k (prior year: EUR 60,599k) as non-current liabilities from leases.

	2021	2020
In thousand EUR
Depreciation on rights of use
Land and buildings	-23,425	-23,683
Machinery and equipment	-76	-37
Tools, fixtures, furniture and office equipment	-943	-1,217
Vehicle fleet	-4,852	-5,379
Total depreciation on right of use assets	-29,296	-30,316
Interest expenses from leasing liabilities	-2,141	-2,991
Expenses relating to short-term leases	-62	-106
Expenses relating to leases of low-value assets	-644	-489
Income from subleasing	2,300	2,840

The following presentation was made in the income statement for the 2021 and 2020 financial year:

The following cash outflows resulted from leases recognized as financial liabilities in accordance with IFRS 16 in the reporting year and in the previous year:

In thousand EUR	2021	2020
Repayments of recognized lease liabilities	33,528	31,442
Interest payments on recognized lease liabilities	2,141	2,991
Payments for short-term leases and leases over low-value assets	706	595
Total cash outflows from leases	36,375	35,028

Extension options not taken into account in the measurement of lease liabilities may result in future cash outflows of EUR 45,713k (prior year: EUR 43,929k). The prior year's figures were corrected with regard to the amount of future lease payments included for leased assets that were rent-free at the measurement date.

As in the prior year, leases in connection with real estate, which the Logwin Group has already entered into but which have not yet been accounted for as of 31 December 2021, will result in no future cash outflows without taking into account extension or termination options.

22 Inventories

Inventories primarily include packaging material and loading equipment with a value of EUR 1,4 11k (prior year: EUR 1,455k). No inventories were pledged.

In the reporting period, inventories of EUR 5,330k were recognized as an expense (prior year: EUR 7,138k).

In 2021, as in the prior year, the impairment test of inventories did not reveal any need for impairment on packaging material.

23 Trade accounts receivable and contract assets

	31 Dec 2021	31 Dec 2020
In thousand EUR
Trade accounts receivable, gross	202, 143	116,533
Valuation allowance due to the simplified approach	-960	-6 10
Trade accounts receivable	201,183	115,923
Less valuation allowance for receivables with impaired creditworthiness	-1,127	-1,709
Trade accounts receivable, net	200,056	114,214
Trade accounts receivable from factoring	61,340	26,588
Total trade accounts receivable	261,396	140,802

The Group has recognized the following contract assets:

	31.12.2021	31.12.2020
In thousand EUR
Current contract assets from transportation services	35,108	12,715
Expected credit losses on contract assets due to the simplified approach	-186	-71
Contract assets	34.922	12,644

Contract liabilities in the amount of EUR 37,549k (prior year: EUR 16,607k) were offset against unconditional claims for consideration that had not yet fallen due on the balance sheet date due to contractual conditions.

Revenues in the amount of EUR 16,607k were realized in the reporting period from contractual liabilities existing as of 31 December 2020 (prior year: EUR 10,146k).

The following table contains information on credit risk and expected credit losses for trade receivables and contract assets as of 31 December 2021 and 31 December 2020.

In thousand EUR	Corres- ponds to external rating	Gross book value	Estimated loss rate (weighted average)	Estimated value adjustment	Negative credit rating
Low risk	A to AAA	123,180	0.04%	53	no
Medium risk	B to BBB	154,309	0.50%	778	no
Below average	C to CCC	19,975	1.57%	315	no
Loss event	D	1,127	100.00%	1,127	yes
Total		298,591		2,273

In thousand EUR	Corres- ponds to external rating	Gross book value	Estimated loss rate (weighted average)	Estimated value adjustment	Negative credit rating
Low risk	A to AAA	63,538	0.02%	14	no
Medium risk	B to BBB	84,216	0.55%	444	no
Below average	C to CCC	6,356	3.52%	223	no
Loss event	D	1,726	99.02%	1,709	yes
total		155,836		2,390

The valuation allowances for trade receivables with impaired creditworthiness based on the expected loss over the entire remaining term have developed as follows:

In thousand EUR	2021	2020
1 January	-1,709	-1,651
Currency differences	-54	128
Additions	-525	-630
Utilization	333	୧୫
Reversals	828	376
31 December	-1,127	-1,709

The valuation allowances for trade receivables and contract assets with unimpaired creditworthiness under the simplified approach in accordance with IFRS 9 developed as follows:

In thousand EUR	2021	2020
1 January	-681	-484
Currency differences	-25	27
Additions	-507	-274
Reversals	67	50
31 December	-1,146	-681

As of 31 December 2021, trade accounts receivable not sold to the factoring company in the amount of EUR 119.9m (prior year: EUR 68.1m) were secured by credit insurance. Secured receivables are generally subject to a deductible of 10% (prior year: 10%). The Group does not hold any other collateral or other credit enhancements to cover its credit risk related to its financial assets.

24 Other receivables and current assets

In thousand EUR	31 Dec 2021	31 Dec 2020
Input tax refund	4,384	3,260
Advance payments	35,202	14,787
Derivative financial instruments	3,826	514
Miscellaneous receivables and assets	1,273	2,125
Total other receivables and current assets	44,685	20,686

The miscellaneous receivables and assets as of 31 December 2021 include receivables from billing transport containers totaling EUR 805k (prior year: EUR 422k).

Other receivables and current assets are due within one year. In the reporing year, no material impairments of other receivables and current assets have occurred. In the prior year, allowances of EUR 380k were recognized on claims against an insurance company. With the exception of individual deposits required by operational business, other receivables and current assets were not subject to pledging.

25 Cash and cash equivalents

	31 Dec 2021	31 Dec 2020
In thousand EUR
Cash	246,888	167,403
Cash equivalents	1,125	1.005
Total cash and cash equivalents	248,013	168,408

Cash and cash equivalents comprise checks, cash in hand and bank balances as well as cash equivalents with a total maturity of up to three months from the date of acquisition.

As of 31 December 2021, cash and cash equivalents amounted to EUR 3.2m (prior year: EUR 3.9m), which the Logwin Group had at its disposal only after approximately two working days as a result of a settlement agreement.

As of 31 December 2021, EUR 609k served as deposits for bank guaranties and are therefore restricted cash (prior year: EUR 549k).

26 Deferred taxes

Deferred tax assets and liabilities consist of the following:

	31 Dec 2021		31 Dec 2020
In thousand EUR	Deferred tax assets	Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Intangible assets	7,758		1,251
Property, plant and equipment	166	16,031	1,127	20,238
Investments	4 1	4	127	11
Current assets	4,889	3,754	2,681	1,196
Provisions	5,105	4,807	6,928	6
Liabilities	20,264	5,679	21,375	1,797
Tax loss carry forwards	12,266		17,060
Valuation allowances	-5,755		-8,358
Retained earnings of domestic and foreign subsidiaries		777		714
Net amounts	-24,727	-24,727	-22,668	-22,668
Total deferred taxes	20,007	6,325	19,523	1,294

In thousand EUR	2021	2020
Deferred taxes, net as of 1 January	18,229	17,451
Change recognized in profit or loss	-2,352	556
Change recognized in other comprehensive income	-2,251	367
Currency and other differences	56	-145
Deferred taxes, net as of 31 December	13,682	18,229

In the financial year 2021 the recognized deferred taxes have changed as follows:

The change recognized directly in equity relates to deferred tax effects on remeasurements of the net defined benefit liability in 2021 and in the previous year. In the reporting year, this includes effects from the impairment or reversal of impairments of deferred tax assets in the amount of EUR-1,421k recognized directly in equity.

In the reporting year, deferred tax liabilities of EUR 0.8m (prior year: EUR 0.7m) were recognized on temporary differences from retained earnings of domestic and foreign subsidiaries amounting to EUR 26.4m (prior year: EUR 22.5m). No deferred tax liabilities were recognized for temporary differences from retained earnings of domestic and foreign subsidiaries amounting to EUR 7.9m (prior year: EUR 3.0m) as of 31 December 2021, as it is not probable that these will reverse in the foreseeable future. The tax effect on these differences would amount to EUR 2.7m (prior year: 1.7m).

Net deferred tax assets amounting to EUR 4.1m (prior year: EUR 4.0m) have been recognized despite tax losses in the reporting year or in the prior year, as there are substantial indications for their recognition due to non-recurring one-off effects. They were recognized on the basis of planning calculations for the taxable income of the respective companies, as sustained positive operating results are expected within the next five years.

For the following temporary differences and unused tax losses no deferred tax assets have been recognized since it is not probable that future taxable profit will be available against which the deductible temporary differences or tax losses can be utilized:

	31 Dec 2021	31 Dec 2020
In thousand EUR
Tax losses	397,778	431,718
Deductible temporary differences	11,346	7,478
Total	409, 124	439,196

Insofar as a tax assessment has been made, loss carry forwards are reported in accordance with this assessment. If no assessment has yet been made, the calculated value, or the value reported to the tax authorities, is used.

27 Shareholders' equity

Issued capital and authorized capital

As of 31 December 2021, a total of 2,884,395 (prior year: 2,884,395) fully paid-up no-par value registered shares with voting rights had been issued. Of these, 2,879,344 shares were outstanding (prior year: 2,881,395). As of 31 December 2021, 5.051 shares were held as treasury stock by Logwin AG and were therefore subject to the exclusion of voting rights and dividends (prior year: 3,000 shares). Each share represents EUR 45.52 of the share capital (prior year: EUR 45.52). In addition, as of 31 December 2021 Logwin AG had authorized capital totaling EUR 68,700k (prior year: EUR 68,700k), divided into a further 1,509,105 new no-par value shares to be issued (prior year: 1,509,105).

Profit/loss appropriation and capital reserves

The Annual General Meeting of Logwin AG on 8 April 2021 resolved the appropriation of net result as of 31 December 2020 of EUR 48,947k in the form of an allocation to the capital reserve. In the prior year, the net result as of 31 December 2019 amounting to EUR 39.243k was allocated to the capital reserve. A dividend of EUR 10,083k (prior year: EUR 10,094k) was distributed from the capital reserve by resolution of the Annual General Meeting on 8 April 2021. This corresponds to an amount of EUR 3.50 per share (prior year: EUR 3.50 per share).

Dividends

The distribution has yet to be decided by the shareholders at the Annual General Meeting on 8 April 2022 and has therefore not yet been recognized as a liability in this financial statements.

Retained earnings

Distributable retained earnings

According to Luxembourg law, a company must allocate at least 5% of the net result for the period as stated in the local financial statements to a legal reserve until the reserve equals 10% of issued capital of the company. As of 31 December 2021, this reserve in the amount of EUR 13,130k (prior year: EUR 13,130k) is presented in the statement of changes in equity of the Logwin Group as part of the retained earnings. The legal reserve cannot be distributed as a dividend.

Defined benefit plans

Remeasurements of the net defined benefit liability in the form of actuarial gains and losses as well as return on plan assets not included in interest income are recognized in equity and may not be reclassified to profit or loss in future periods. These amounts are recorded in retained earnings and amounted to EUR – 15,011k as of 31 December 2021 (prior year: EUR – 15,531k). The change of EUR 520k compared to the prior year relates completely to the remeasurement of the net defined benefit liability (prior year: EUR -1,248k) after deduction of the associated deferred taxes.

Accumulated other comprehensive income

Differences from the translation of the financial statements of subsidiaries with a functional currency other than the euro are reported under shareholders' equity as accumulated other comprehensive income. As of 31 December 2021, the accumulated other comprehensive income of EUR -3,625k (prior year: EUR -7,907k) primarily resulted from the translation of the financial statements of subsidiaries. The amounts recognized in equity may need to be reclassified under certain circumstances to profit or loss in future periods.

Treasury shares

Based on the authorization of the Annual General Meeting on 10 April 2019, the Board of Directors of Logwin AG decided on 17 March 2020 to start a new share buyback program. The share buyback started on 18 March 2020 and is limited until 28 February 2022. As of 31 December 2021, the Company held 5,051 shares (prior year: 3,000) with a value of EUR 800k (prior year: EUR 387k). Treasury shares are subject to the exclusion of voting rights and dividends.

28 Loans and borrowings

As of 31 December 2021, the Logwin Group had credit facilities (without guarantee facilities) amounting to EUR 38.8m (prior year: EUR 38.8m), which had not been drawn at the reporting date as well as at the end of the prior year. Furthermore, depending on the amount of sold receivables, a contractual limit of EUR 45.0m (prior year: EUR 45.0m) was available to the Logwin Group from factoring at the reporting date. As of 31 December 2021 and 2020, the factoring facility was not utilized.

Loans and borrowings reported as of 31 December 2021 totaled EUR 135k (prior year: EUR 66k).

The interest rate on the current loans and borrowings were variable and therefore at market level.

29 Provisions for pensions and similar obligations

Provisions for pensions and similar obligations are recognized due to plans for commitments for retirement, invalidity and survivors' pensions. The Logwin Group has both defined benefit and defined contribution plans.

Defined contribution plans

Under the defined contribution plans of the Group, payments in a total amount of EUR 659k to private pension insurance schemes were recorded in financial year 2021 (prior year: EUR 501k). In addition, contribution payments of EUR 8,464k (prior year: EUR 8,082k) were made to public pension insurance schemes.

Defined benefit plans

Defined benefit obligations mainly result from (funded and unfunded) pension commitments to employees, mostly of German group companies. The Logwin Group's obligations relate primarily to obligations from vested benefits in connection with benefit plans closed in the past. The benefits payable are mostly lifetime pension payments. In addition, there are legal claims of Austrian employees to severance payments.

A characteristic of the defined benefit obligations is that the Logwin Group grants the promised benefit level and thus bears the financing and longevity risk. If the obligations are partially or fully funded, the financing risk is replaced by the general market risk. As the Logwin Group's plan assets are primarily employer's pension liability insurance policies, direct insurance policies and pension trusts, the volatility of which is comparatively low, the risk is also low.

The net defined benefit liability recognized in the balance sheet is as follows:

In thousand EUR	31 Dec 2021	31 Dec 2020
Present value of the obligation	33,330	37,188
Plan assets	-1.7 14	-1.703
Net defined benefit liability (funding status)	31,616	35,485

The development of the net defined benefit liability in the current financial year and in the prior year is described in the following table:

In thousand EUR	2021	2020
Net defined benefit liability as of 1 January	35,485	34,617
Expense recognized in profit or loss	635	749
Plan contributions and payments, net	-1,587	-1,145
Remeasurements recognized in other comprehensive income	-2,771	1,615
Settlements	-131	-293
Other changes	-15	-58
Net defined benefit liability as of 31 December	31,616	35,485

Other changes include primarily effects from the currency translation of the net defined benefit liability.

The change in the net defined benefit liability breaks down to the development of the present value of the obligation and the plan assets as follows:

	2021	2020
In thousand EUR
Present value of the obligation as of 1 January	37,188	36,271
Current service cost	503	492
Interest expenses	139	270
Actuarial gains (-) / losses (+)
due to changes in demographic assumptions	8	-1
due to changes in financial assumptions	-2,085	1,904
due to experience adjustments	-673	-231
Payments from company assets	-1,539	-1,102
Payments from plan assets	-102	-56
Settlements	-131	-293
Other changes	22	-66
Present value of the obligation as of 31 December	33,330	37,188

In thousand EUR	2021	2020
Plan assets as of 1 January	1,703	1,654
Interest income on plan assets	7	13
Return on plan assets not included in interest income	21	57
Contributions by the employer	48	43
Payments from plan assets	-102	-56
Other changes	37	-8
Plan assets as of 31 December	1,714	1,703

As of 31 December 2021, the plan assets consisted of employer's pension liability insurance policies of EUR 668k (prior year: EUR 717k), pension trusts of EUR 353k (prior year: EUR 349k), direct insurance policies of EUR 269k (prior year: EUR 263k), and other forms of EUR 424k (prior year: EUR 374k). The expected contributions to plan assets amount to EUR 45k in the following year.

The expenses for defined benefit plans recognized in profit or loss are as follows:

In thousand EUR	2021	2020
Service costs	-503	-492
Net interest expense	-132	-257
Total pension expenses	-635	-749

In 2021, of the total amount of expenses for defined benefit plans, EUR 380k (prior year: EUR 360k) were included in cost of sales, EUR 66k (prior year: EUR 69k) in selling costs and EUR 57k (prior year: EUR 63k) in general and administrative costs. The net interest expense from unwinding of the discount on the obligation as well as from the return on plan assets of EUR 132k (prior year: EUR 257k) is included in finance expenses.

Actuarial assumptions

The following actuarial assumptions were used to calculate pension provisions and similar obligations:

	31 Dec 2021	31 Dec 2020
Discount rate	1.0%	0.4%
Wage and salary trend	2.5%	2.5%
Pension trend	1.9%	1.75%

As in the previous year, life expectancy in Germany is based on the 2018G mortality tables of Prof. Heubeck.

The discount rates were determined based on yields on high-quality corporate bonds which match the underlying obligations in terms of currency and maturity. The measurement of the pension obligations is based on a discount rate determined using the "Aon Eurozone Yield Curve" methodology, which was applied for the first time in fiscal year 2021. If the pension obligation had been measured at the reporting date using the discount rate determined using the "Aon subindex method" applied in the previous year, the pension obligation would have been EUR 400k (1.3% of the present value of the defined benefit obligation) higher.

The wage and salary trends take into account inflation adjustments and career-related salary increases, and are based (similar to the turnover rates) on past experience and expectations for the future.

The pension trends either correspond to the contractually guaranteed pension adjustments or are based on the provisions in place for pension adjustments.

	In thousand EUR	31 Dec 2021	31 Dec 2020
Discount rate	0.5 percentage points higher	-1,950	-2,355
	0.5 percentage points lower	2,178	2,644
Wage and salary trend	0.5 percentage points higher	166	188
	0.5 percentage points lower	-156	-176
Pension trend	0.5 percentage points higher	1,654	1,980
	0.5 percentage points lower	-1,509	-1,803
Life expectancy	Decrease in mortality rate by 10%	1,237	1,462

Changes in the principal actuarial assumptions would have had the following effects on defined benefit obligations:

The sensitivity analyses presented take into account the change of one assumption, with the other assumptions remaining unchanged compared with the original calculation. This means possible correlations between the individual assumptions were not taken into account. The method used to calculate the sensitivities is the same method that is used to determine the present value of the defined benefit obligation.

In order to examine the sensitivity of the present value of the defined benefit obligation to changes in the assumed life expectancy, the mortality rates were lowered by 10% in a comparative calculation, which as in the prior year resulted in an increase in life expectancy of around one year (prior year: one year).

The weighted average duration of the defined benefit obligation based on the present values of the obligation is 13.19 years (prior year: 14.76 years).

In thousand EUR	31 Dec 2021	31 Dec 2020
Payments due within the next financial year	1,867	1,453
Payments due in 2 to 5 years	5,564	5,884
Payments due in 6 to 10 years	6,639	6,878
Payments due in 11 to 15 years	5,992	6,528
Payments due in 16 to 20 years	4,905	5,050
Payments due in more than 20 years	10,651	11,377

The maturity profile of undiscounted payments of the defined benefit obligation is as follows:

30 Other non-current provisions

In thousand EUR	Long-service bonus provisions
1 January 2021	3,529
Additions	210
Utilization	-216
Release	-164
Currency differences	6
31 December 2021	3,365

In 2021, the interest portion from unwinding of the discount on the long-service bonus provisions amounted to EUR 3k (prior year: EUR 11k). The measurement of the long-service bonus provisions is based on a discount rate determined using the "Aon Eurozone Yield Curve" methodology, which was applied for the first time in fiscal year 2021. If the long-service bonus provisions had been measured at the reporting date using the discount rate determined using the "Aon subindex method" applied in the previous year, the long-service bonus provisions would have been EUR 8k (0.8% of the present value of the obligation) higher.

In thousand EUR	Lawsuits and litigations	Onerous contracts	Warranties	Other	Total current provisions
1 January 2021	990	287	1,665	5,100	8,042
Additions	136	359	1,992	2,396	4,883
Utilization	-96	-85	-355	-1,249	-1,785
Release	-104	-180	-843	-58 1	-1,708
Currency differences	3		-2	37	38
31 December 2021	929	381	2,457	5,703	9,470

31 Current provisions

The provisions recognized for lawsuits and litigations as of 31 December 2021 comprise various litigation risks.

The provisions for warranties primarily include provisions for freight and liability damage from operating activities.

The other current provisions include, among other things, various provisions for various contractual and recourse risks as well as provisions for outstanding invoices and customer bonuses.

32 Income tax liabilities

The recognized liabilities are calculated from accrued income tax expenses for financial year 2021 and prior financial years amounting to EUR 18,425k (prior year: EUR 6,817k), less prepayments made totaling EUR 5,631k (prior year: EUR 3,587k).

33 Other liabilities

	31 Dec 2021	31 Dec 2020
In thousand EUR
Liabilities relating to personnel:
Wages and salaries	25,060	19,353
Social security	1,626	1,372
Accrued vacation	3,424	2,615
Other taxes and levies	5,684	4,206
Advances received from customers	2,076	980
Derivative financial instruments	3,486	1,594
Other liabilities, accruals and deferred income	6,706	4,448
Total other current liabilities	48,062	34,568
Sundry other non-current liabilities
Total other non-current liabilities	1
Total other liabilities	48,063	34,569

Other liabilities, accruals and deferred income as of 31 December 2021 include liabilities from billing transport containers totaling EUR 757k (prior year: EUR 420k).

The advances received from customers represent contract liabilities within the definition of IFRS 15.

The remaining maturities of the financial liabilities included in other liabilities are shown below:

In thousand EUR	Dec 31 2021	Dec 31 2020
Due within 1 year	35,074	25,273
Due 1 to 5 years
Other financial liabilities	35,075	25,274

Other Notes

34 Additional information on financial instruments

The following tables provide additional information on the financial instruments held by the Logwin Group. They show the financial assets and liabilities by IFRS 9 measurement category as well as the balance sheet items containing financial instruments with the corresponding carrying amounts and the fair value.

Financial instruments by measurement category according to IFRS 9

In thousand EUR	Carrying amount 31.12.2021	Mandatory valuation at fair value in accordance with IFRS 9
Amortized cost	543,155
Fair value through profit or loss (FVTPL)	12,160	12,160
Financial assets	555,315	12,160
Amortized cost	354,980
Fair value through profit or loss (FVTPL)	3,486	3,486
Financial liabilities	358,466	3,486

In thousand EUR	Carrying amount 31.12.2020	Mandatory valuation at fair value in accordance with IFRS 9
Amortized cost	320,451
Fair value through profit or loss (FVTPL)	6,673	6,673
Financial assets	327,124	6,673
Amortized cost	196,269
Fair value through profit or loss (FVTPL)	1,594	1,594
Financial liabilities	197,863	1,594

Carrying amount and fair values of financial instruments by item of the balance sheet.

The following table reconciles the existing financial instruments to the corresponding items of the balance sheet and shows the respective measurement basis, carrying amount and the fair value as of the reporting date:

In thousand EUR	Measurement category in accordance with IFRS 9	Carrying amount 31 Dec 2021	Carrying amount in accordance with IFRS 16	Fair Value 31 Dec 2021
Assets
Investments	FVTPL	781		781
	Amortized cost	563		563
	n.a.	281
Other non-current assets	Total	844
	FVTPL	7,553		7,553
	Amortized cost	253,843		253,843
Trade accounts receivable	Total	261,396		261,396
Contract assets	Amortized cost	34,922		34,922
	Amortized cost	5,814		5,814
	FVTPL	3,826		3,826
	n.a.	35,045
Other receivables and current assets	Total	44,685
Cash and cash equivalents	Amortized cost	248,013		248,013
Liabilities
Non-current liabilities from leases	n.a.	51,631	51,631
Other non-current liabilities	Amortized cost	1		1
Trade accounts payable	Amortized cost	323,257		323,257
Current liabilities from leases	n.a.	27,884	27,884
Current loans and borrowings	Amortized cost	135		135
	Amortized cost	31,587		31,587
	FVTPL	3,486		3,486
	n.a.	12,989
Other current liabilities	Total	48,062

Angaben in TEUR	Measurement category in accordance with IFRS 9	Carrying amount 31 Dec 2020	Carrying amount in accordance with IFRS 16	Fair Value 31 Dec 2020
Assets
Investments	FVTPL	759		759
	Amortized cost	395		395
	n.a.	304
Other non-current assets	Total	699
	FVTPL	5,399		5,399
	Amortized cost	135,403		135,403
Trade accounts receivable	Total	140,802		140,802
Contract assets	Amortized cost	12,644		12,644
	Amortized cost	3,601		3,601
	FVTPL	514		514
	n.a.	16,571
Other receivables and current assets	Total	20,686
Cash and cash equivalents	Amortized cost	168,408		168,408
Liabilities
Non-current liabilities from leases	n.a.	60,599	60,599
Other non-current liabilities	Amortized cost	1		1
Trade accounts payable	Amortized cost	172,523		172,523
Current liabilities from leases	n.a.	30,233	30,233
Current loans and borrowings	Amortized cost	66		66
	Amortized cost	23,680		23,680
	FVTPL	1,594		1,594
	n.a.	9,294
Other current liabilities	Total	34,568

The fair values of financial instruments were determined based on the following methods and assumptions:

For listed securities, the fair value can be determined on the basis of market information available at the balance sheet date in accordance with Level 1. For publicly traded financial instruments, the market value on the balance sheet date represents the fair value of the instrument.

The fair values of derivative financial instruments were determined in accordance with Level 2 of the fair value hierarchy using valuation techniques such as the present value method based on currently observable market data. The fair values of the currency derivatives were calculated using the respective spot rate and the yield curves of the respective currency. The fair values of unlisted equity instruments are generally determined in accordance with Level 3 of the fair value hierarchy. Since not enough information is available to measure fair value or there is a wide range of possible measurements of fair value, the valuation is made in accordance with IFRS 9.B5.2.3. at cost, which is considered the best estimate of fair value.

The fair values for other loans and borrowings with variable rates of interest were determined on the assumption that agreed rates of interest are equivalent to market interest rates. Consequently, their carrying amounts are deemed to match their fair values. Valuation models are used to calculate the fair values for loans and borrowings with fixed interest rates. The inputs (interest rates) are based on observable market data.

The fair values of trade accounts receivable and payable, other current assets and liabilities that were allocated to the "at amortized cost" category as well as cash equivalents are deemed to match their carrying amounts owing to their short terms.

The following table provides an overview of the financial assets and financial liabilities of the Logwin Group that were recognized at fair value, in accordance with the fair value hierarchy:

31 Dec 2021	Level 1	Level 2	Level 3	Total
In thousand EUR
Assets
Investments	608		173	781
Trade accounts receivable			7,553	7,553
Other receivables and current assets		3,826		3,826
Total	608	3,826	7,726	12,160
Liabilities
Other current liabilities		3,486		3,486
31 Dec 2020	Level 1	Level 2	Level 3	Total
In thousand EUR
Assets
Investments	586		173	759
Trade accounts receivable			5,399	5,399
Other receivables and current assets		514		514
Total	૨૪૨	514	5,572	6,672
Liabilities
Other current liabilities		1,594		1,594

There were no transfers between Level 1, Level 2 and Level 3 in the reporting year and in the prior year.

		From subsequent measurement	Net result
In thousand EUR	From interest	at Fair value	Impairment	2021
Assets at amortized cost	170		-138	32
Assets at FVTPL	-2,380	-26		-2,406
Liabilities at amortized cost	-930			-930
Liabilities at FVTPL	2,405	-141		2,264
Total	-735	-167	-138	-1,040

Net results from financial instruments by measurement category

		From subsequent measurement	Net result
In thousand EUR	From interest	at Fair value	Impairment	2020
Assets at amortized cost	246	-	-859	-613
Assets at FVTPL	-115	35		-80
Liabilities at amortized cost	-707	1		-707
Liabilities at FVTPL	2	-38		-36
Total	-574	-3	-859	-1,436

Please refer to note 14 "Financial result" for information on interest income and expenses. Gains and losses from subsequent valuation at fair value relate primarily to the valuation of derivative financial instruments held to hedge currency risks. Impairment losses include impairments of receivables.

Financial risks

Liquidity risks

The business operations of the operating units of the Logwin Group as a logistics provider require it to use loans, factoring and credit-related forms of finance, for example when renting or leasing infrastructure, transport equipment and other technical equipment and facilities over the short to medium term. Continuing restricted access to means of finance and guaranteed credit lines, insufficient availability of suitable receivables that can be sold in the factoring process or a sustained increase in the cost of such financing instruments could lead to considerable risks for liquidity and earnings at the Logwin Group.

The Logwin Group manages its liquidity risk by monitoring the current liquidity situation on a daily basis. Liquidity planning is used to determine future requirements and to analyze on a regular basis whether the Logwin Group is in a position to meet its financial liabilities by the agreed maturity dates. The Logwin Group also limits its liquidity risk through strict working capital management and financing from various sources. As of 31 December 2021, the Logwin Group had unused credit facilities of EUR 38.9m (prior year: EUR 38.8m). The Logwin Group can also utilize a contractually agreed maximum amount of EUR 45.0m (prior year: EUR 45.0m) from the factoring facility depending on the volume of receivables sold which was not used during the financial year 2021.

Note 21 to the consolidated financial statements provides a maturity analysis of the lease liabilities.

Engaging in the transportation business on a global scale requires the possibility of guarantees and collateral being provided by generally recognized guarantors, for example to customs and tax authorities and in the process of handling air and ocean transports worldwide. The Logwin Group will be faced with liquidity and earnings risks if such established financial instruments are no longer available to the Logwin Group to a sufficient extent, or if the customary mechanisms underlying international financial business transactions fail to work. The risk is reduced by diversification and contractual agreements with leading financial service providers selected according to defined criteria.

Credit risks

Credit risk is the risk that a counterparty will not meet its contractual obligations and that the Logwin Group will incur financial losses as a result. As of 31 December 2021, the Group's maximum credit risk, excluding collateral held or other credit enhancements, is derived from the carrying amounts of the respective financial assets reported in the consolidated balance sheet as of 31 December 2021. Value adjustments are made for impending default risks. Please refer to Note 23 for the scope of valuation allowances of trade receivables. In contrast, assets that are neither past due nor impaired are fully recoverable.

There are essentially credit risks arising from relationships with customers and banks. Credit risks arising from relationships with customers are minimized by detailed credit assessments and a restrictive allocation of credit periods. Furthermore, in nearly all countries trade credit insurance exists for the majority of customers. Credit risks resulting from relationships with banks (counterparty risk) are counteracted via diversification of banking relationships.

In order to minimize the credit risk, the Logwin Group has developed credit risk classifications in order to categorize exposures according to their degree of default risk. The credit rating information is provided by independent rating agencies where available, the Logwin Group uses other publicly available financial information and internally available information of the Group to evaluate its major customers and other debtors. The Group's exposure and the creditworthiness of the counterparties are continuously monitored and the total value of the transactions concluded is allocated to the eligible counterparties.

Currency risks

The companies of the Logwin Group generate revenues in various currencies in the course of carrying out their worldwide activities and therefore also recognize their assets in non- euro currencies. As a result, the Group is subject to ongoing currency risks. Moreover, between the companies of the Logwin Group there are internal financing balances in foreign currencies. As a result, a significant risk to earnings and liquidity from the negative effects of exchange rate movements cannot be excluded.

Wherever feasible, the Logwin Group reacts to potential foreign exchange risks affecting liquidity by using hedging instruments. The Logwin Group's hedging transactions in connection with foreign currency receivables and liabilities reduce the uncertainty of future cash flows from hedged items with regard to the risk of exchange rate fluctuations. Taking into account hedging activities, a change in the respective functional currency of the group companies by +/-10% in relation to the US dollar, the main foreign currency of the Logwin Group, as of 31 December 2021 would have an effect on the Group's net result of -/+ EUR 1.2m (prior year: -/+ EUR 0.1m).

As the euro is the reporting currency of the Logwin Group, the financial statements of the companies are translated into euro, which is the functional currency of the Group, for the purposes of the consolidated financial statements. These translation-related foreign currency risks are not typically hedged in the Logwin Group. This can create a considerable impact on the presentation of the earnings position and net assets of the Logwin Group.

Interest rate risks

Interest rates can change after a prolonged phase of low interest rates as a result of various influential factors. Increased rates of interest can pose a risk to the earnings of the Logwin Group, which is currently considered to be low due to the immaterial financial liabilities with the exception of lease liabilities.

Maturity analysis of financial liabilities

Next year, cash outflows for the servicing of financial liabilities are expected to amount to EUR 135k (prior year: EUR 66k).

Trade accounts payable and derivative financial liabilities existing date are due within one year.

The maturity analysis of the leasing liabilities can be found in Note 21.

Forward exchange contracts

As of 31 December 2021, the Logwin Group had various forward exchange contracts to hedge the foreign exchange risk of the operating business and to secure Logwin AG's receivables or liabilities arising from group financing. The forward exchange contracts all have a term of less than one year.

The following table shows the major transactions:

	31 Dec 2021		31 Dec 2020
Angaben in Tausend	Nominal value in foreign currency	Nominal value in euros	Nominal value in foreign currency	Nominal value in euros
Forward exchange contracts to hedge receivables of Logwin AG arising from group financing and the operating activities of group companies
Sell
AED	12,550	2,947	10,550	2,410
AUD	15,567	9,665	7,646	4,656
CNY	287,540	38,290	86,700	10,752
COP	1,300,000	281	3,575,000	830
CZK	31,300	1,210	5,050	191
GBP	16,110	18,892	700	772
HKD	120,900	13,419	52,200	5,616
HUF	695,000	1,901	22,000	612
PLN	22,600	4,876	1,100	246
RON	1,550	311	2,000	406
SGD			3,020	1,855
TRY	18,900	1,493	2,100	216
USD	35,420	30,973	10,330	8,570
Total		124,258		37,132
Forward exchange contracts to hedge receivables of Logwin AG arising from group financing and the operating activities of group companies
Buy
AED	17,550	4,144	17,800	4,076
AUD	8,672	5,466	5,800	3,561
CNY	456,170	61,090	211,230	26,348
COP			1,000,000	241
CZK	33,300	1,312	18,550	706
GBP	9,840	11,501	550	607
HKD	308,150	34,309	203,780	22,243
HUF	970,000	2,669	748,900	2,112
RON	1,180	237	300	61
SGD	1,910	1,226	5,440	3,383
THB	12,000	319	6,300	17 1
TRY	22,400	1,864	3,800	428
TWD	17,000	551	17,000	515
USD	31,341	27,438	8,775	7,264
Total		152,126		71,716

	31 Dec 2021		31 Dec 2020
In thousand EUR	Nominal amount	Fair value	Nominal amount	Fair value
Assets
Forward exchange contracts	125,488	3,826	26,132	514
Total	125,488	3,826	26,132	514
Liabilities
Forward exchange contracts	150,895	3,486	82,716	1,594
lota	150,895	3,486	82,716	1,594

The following table compares the fair values and the nominal amounts of the derivative financial instruments:

The assets are matched by liabilities from the valuation of the underlying financial transactions. Liabilities from forward exchange transactions are matched by assets from the valuation of the underlying internal financial transactions.

Netting agreements are set out in the master agreements in place with the banks through which derivative financial instruments are concluded. However, these netting agreements only take effect in the event of insolvency. The presentation of the net amount for accounting purposes is therefore not permitted, as there is only a theoretical right of set-off at the end of the reporting period. This would result in a total of EUR 3,441k of the reported liabilities of EUR 3,486k being able to be offset against the reported assets of EUR 3,826k. In the previous year, a total of EUR 514k of the reported assets of EUR 514k could have been offset against the reported liabilities of EUR 1,594k.

Capital management

The goal of the Logwin Group's capital management is financial stability and maintain an adequate equity level for Logwin AG. It can react to negative changes in the capital structure by adjusting its equity or debt resources in particular through the utilization of existing credit factoring facility.

Medium and long-term financial decisions are checked for their impact on the capital structure of the Logwin Group. In addition, short and medium-term changes in the capital structure are systematically monitored by analyzing working capital. In addition to changes in absolute values, a key aspect here is relative changes and changes relative to relevant figures such as revenues.

The following items are covered by capital management:

	31 Dec 2021	31 Dec 2020
In thousand EUR
I iabilities from leases	-79,515	-90,832
Loans and borrowings	-135	-66
Gross financial debt	-79,650	-90,898
Cash and cash equivalents	248,013	168,408
Net liquidity	168,363	77,510
Trade accounts payable	-323,257	-172,523
Other liabilities and provisions	-60,898	-46,140
Trade accounts receivable	261,396	140,802
Contract assets	34,922	12,644
Income tax receivables/liabilities	-10,932	-765
Other non-current and current receivables and assets	45,529	21,385
Inventories	1,411	1,455
Working Capital	-51,829	-43,142
Shareholders' equity	282,485	224,852

35 Financial commitments

The following table shows all unrecognized financial commitments as of 31 December 2021 and 2020:

In thousand EUR	31 Dec 2021	31 Dec 2020
Due within 1 year	13,617	10,995
Due within 2 to 5 years	10,581	3,180
Due after 5 years	3,148	33
Total	27,346	14,208

The financial obligations in the financial year consist mainly of obligations from service contracts.

36 Contingent liabilities and lawsuits

It can be assumed that the contingent liabilities in respect of bank and other guarantees, letters of comfort and other liabilities arising in the ordinary course of business as of 31 December 2021 will not result in material obligations.

To the extent necessary, provisions are recognized for individual matters that could possibly lead to a claim. Beyond this, no claims are expected.

37 Auditor's fees

The auditor's fees for the financial year covered the following services (amounts excluding out-of-pocket expenses):

		Auditors of Luxembourg companies		Auditor's network abroad
In thousand EUR	2021	2020	2021	2020
Audit services	147	144	681	616
Tax services			1
Audit-related services
Other services	೧	1	30	139
Total	156	145	711	755

38 Key management personnel compensation

The compensation of non-executive members of the Board of Directors and of members of the Executive Committee includes all amounts received from group companies. The fixed portion of the regular compensation also includes other compensation components. In 2021, payments in the amount of EUR 72k (prior year: EUR 88k) were made to a defined contribution pension plan for members of the management.

In thousand EUR	2021	2020
Members of the Executive Committee	2,385	2,356
thereof fixed portion of regular compensation	1,287	1,481
thereof variable portion of regular compensation	1,098	875
Non-executive members of the Board of Directors (fixed compensation)	120	120

39 Related party transactions

Entities and persons are regarded as related parties if one party has the ability to control the other party or has an interest in the entity that gives it significant influence over the entity, if the party is an associate or if the party is a member of the key personnel of the entity or its parent.

Mr. Stefan Quandt is considered to be a related party to Logwin AG, as he is the sole shareholder of DELTON Logistics S.à r.l., Grevenmacher, which holds a majority interest in Logwin AG. He is also the sole shareholder of DELTON Health AG and AQTON SE, both Bad Homburg, as well as a shareholder and Deputy Chairman of the Supervisory Board of BMW AG, Munich. He is a related party to these companies within the meaning of IAS 24 "Related Party Disclosures".

The Logwin Group generated rental income of EUR 8k from DELTON Logistics S.à r.I. (prior year: EUR 8k). The Logwin Group purchased services from DELTON Logistics S.à r.l. in the amount of EUR 38k (prior year: EUR 30k). In addition, the following supply and service relationships existed with DELTON Health AG, Bad Homburg v.d.H. and its subsidiaries.

		DELTON Health AG and its subsidiaries
	In thousand EUR	2021	2020
Services provided		542	388
Services received		747	631
Receivables as of 31 December
Payables as of 31 December		136	141

Furthermore, Logwin AG entered into a framework agreement for money market transactions with AQTON SE in 2021. As of 31 December 2021, Logwin AG had short-term cash investments with AQTON SE amounting to EUR 75m (prior year: EUR 50m). Financing expenses of EUR 81k were incurred in the reporting year (prior year: EUR 18k).

In 2021, the Logwin Group's revenues from companies of the BMW Group amounted to EUR 19,450k (prior year: EUR 19,068k). Receivables from BMW Group amounted to EUR 3,362k as of 31 December 2021 (prior year: EUR 1,574k). In addition, Logwin Group companies procured vehicles from the BMW Group, predominantly by leasing. This gave rise to expenses for the Logwin Group of EUR 1,090k in 2021 (prior year: EUR 1,235k). Liabilities to the BMW Group from unpaid lease installments amount to EUR 65k as of 31 December 2021 (prior year: EUR 5k).

The following business relationships applied with associated and affiliated, non-consolidated companies:

	Associated and affiliated, not consolidated companies
In thousand EUR	2021	2020
Services provided	759	721
Services received	488	252
Receivables as of 31 December	422	128
Payables as of 31 December	280	100

Furthermore, there were transactions between the Logwin Group and members of its Board of Directors. In financial year 2021, these resulted in expenses for the Logwin Group in an amount of EUR 43k (prior year: EUR 7 1k).

All transactions with related parties were conducted under standard market conditions at arm's length.

40 Events after the reporting period

The tightening of global sanction rules against Russia following the outbreak of the military conflict over Ukraine is not expected to have any material impact on Logwin Group's net assets, financial situation and earnings position.

No further reportable events occurred between 31 December 2021 and the preparation of the consolidated financial statements by the Board of Directors of Logwin AG on 3 March 2022.

41 List of shareholdings

The table below lists all companies of the Logwin Group as of 31 December 2021:

	Share of capital
Solutions
Logwin Solutions Management GmbH, DE-Großostheim	100.00%
Logwin Solutions Holding International GmbH, AT-Salzburg	100.00%
Logwin Solutions Austria GmbH, Al-Salzburg	100.00%
Logwin Solutions Spedition GmbH, DE-Großostheim	100.00%
Logwin Solutions Spain S.A., ES-Madrid	100.00%
LOGWIN Romania S.R.L, RO-Bukarest	100.00%
Logwin Solutions Deutschland GmbH, DE-Großostheim	100.00%
Logwin Solutions Logistik GmbH, DE-Großostheim	100.00%
Air + Ocean
Logwin Air + Ocean International GmbH, DE-Großostheim	100.00%
Logwin Air + Ocean Deutschland GmbH, DE-Großostheim	100.00%
Logwin Air + Ocean UK Limited, GB-Uxbridge	100.00%
Logwin Air + Ocean Belgium N.V., BE-Antwerpen	100.00%
Logwin Air + Ocean Czech S.r.o., CZ-Prag	100.00%
Logwin Air + Ocean Hungary Kft., HU-Budapest	100.00%
Logwin Air + Ocean The Netherlands B.V., NL-1438 AX Oude Meer	100.00%
Logwin Poland Sp.z.o.o., PL-Piaseczno	100.00%
Logwin Air + Ocean Italy S.r.I., IT-Milano	51.00%
Logwin Air & Ocean Spain S.L., ES-Barcelona	100.00%
Logwin Air + Ocean Austria GmbH, AT-Salzburg	100.00%
Logwin Air and Ocean Lojistik Hizmetleri ve Ticaret Limited Sirketi, TR-Istanbul	100.00%
Logwin Air + Ocean Slovakia s.r.o. SK-Bratislava	100.00%
Logwin Air + Ocean France S.A.S., FR-Villepinte	100.00%
Logwin Air and Ocean South Africa (Pty.) Ltd., ZA-Johannesburg	100.00%
Logwin Air and Ocean Kenya Ltd., KE-Nairobi	60.00%
Logwin Air & Ocean Hong Kong Ltd., HK-Hongkong	100.00%
Logwin Air + Ocean Taiwan Ltd, TW-Taipeh	100.00%
Logwin Air + Ocean Philippines Inc., PH-Paranaque City	100.00%
Logwin Air & Ocean Korea Ltd., KR-Seoul	100.00%

Logwin Air + Ocean China Ltd., CN-Shanghai	100.00%
Logwin Air & Ocean Far East Ltd., HK-Hongkong	100.00%
Logwin Air + Ocean Singapore Pte. Ltd., SG-Singapore	100.00%
Logwin Air & Ocean Vietnam Company Limited , VN-Hochiminh City	100.00%
Logwin Air + Ocean Malaysia Sdn. Bhd., MY-Kuala Lumpur	100.00%
Logwin Air + Ocean (Thailand) Ltd., TH-Bangkok	100.00%
P.T. Logwin Air & Ocean Indonesia, ID-Jakarta	90.00%
Logwin Air & Ocean India Pvt. Ltd., IN-Mumbai	100.00%
Logwin Air & Ocean Australia Pty. Ltd., AU-Alexandria	100.00%
Logwin Air + Ocean Mexico S.A. de C.V., MX-City	100.00%
Logwin Air + Ocean Colombia SAS, CO-Bogota	100.00%
Logwin Air + Ocean Brazil Logística e Despacho Ltda., BR-Sao Paulo	100.00%
Logwin Air + Ocean Chile S.p.A., CL-Santiago	100.00%
Logwin Air + Ocean Perú S.R.L. PE-Lima	100.00%
Logwin Air & Ocean Middle East LLC, AE-Dubai	60.00%
Other
Logwin AG, LU-Grevenmacher	100.00%
Logwin Holding Immo Aschaffenburg GmbH, DE-Großostheim	100.00%
Logwin Air + Ocean Holding Austria GmbH, AT-Salzburg	100.00%
Logwin Road + Rail Austria GmbH i.L., AT-Salzburg	100.00%
Thiel AS Logistics AG, LU-Grevenmacher	100.00%
Logwin Road + Rail Deutschland GmbH, DE-Großostheim	100.00%
Logwin Holding Aschaffenburg GmbH, DE-Großostheim	100.00%
Logwin Finance GmbH, DE-Großostheim	100.00%
Logwin Service GmbH, DE-Großostheim	100.00%
Aschaftenburger Versicherungsmakler GmbH, DE-Großostheim	100.00%
Nicht konsolidiert
Logwin Air and Ocean Simesonke (Pty.) Ltd., ZA-Spartan-Kempton Park	100.00%
Leadway Freight Ltd. HK-Hongkong n.o.	100.00%
Logwin Forwarding Malaysia Sdn. Bhd., MY-Kuala Lumpur	49.00%
Supply Chain International Ltd., NZ-Auckland	33.00%
East West Freight Limited, HK-Hongkong	100.00%
Leadway Container Line Ltd., SG-Singapore	100.00%
Hellmann Beverage Logistics Inc, US-FL-Miami	50.00%
Transcontainer-Universal GmbH & Co. KG. DE-Bremen	0.80%

Investments of the Logwin AG are not consolidated, if the company does not carry out any business operations or if the Group does not exercise any significant influence on the company. Furthermore for investments of minor importance for the consolidated financial statements no consolidation using the at equity method has been carried out.

In the reporting year 2021, the Logwin Group employed an average of 4,047 people (prior year: 4,215).

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Declaration by the Board of Directors

The Board of Directors is responsible for the preparation, completeness and accuracy of the consolidated financial statements and the group management report, as well as for all other information provided in the Annual Financial Report.

These consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.

Pursuant to the provisions of the Luxembourg Commercial Code, the group management report contains an analysis of the net assets, financial position and results of the Group, as well as further information.

The consolidated financial statements, the group management report and the independent auditor's report were subject to a preliminary audit by the Audit Committee and discussed extensively in a meeting of the Board of Directors together with representatives of the audit firm.

The audit of the consolidated financial statements and the group management report for financial year 2021 did not give rise to any objections. By way of resolution by the Board of Directors, the consolidated financial statements and the group management report were therefore approved for publication.

In line with Luxembourg law, the consolidated financial statements and the group management report must still be approved by the Annual General Meeting.

The Board of Directors of Logwin AG

Grevenmacher (Luxembourg), 3 March 2022

Responsibility statement

"To the best of our knowledge and in accordance with the applicable reporting principles for consolidated financial reporting, the consolidated financial statements give a true and fair view of the net assets, financial position and result of operations of the Group, and the group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group."

Dr. Antonius Wagner (Chairman of the Board of Directors)

Sebastian Esser (Deputy Chairman of the Board of Directors) To the Shareholders of Logwin AG, Société Anonyme 5, an de Längten L-6776 Grevenmacher

This text was drawn up for information purposes only. In case of discrepances between the german and the english text, the german text shall prevail.

REPORT OF THE RÉVISEUR D'ENTREPRISES AGRÉÉ

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of Logwin AG (the "Company") and its subsidiaries (the "Group"), which comprise the consolidated statement of financial position as at 31 December 2021, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2021, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Basis for opinion

We conducted our audit in accordance with the EU Regulation Nº 537/2014, the Law of 23 July 2016 on the audit profession (the "Law of 23 July 2016") and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier" (the "CSSF"). Our responsibilities under the EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs as adopted for Luxembourg by the CSSF are further described in the « Responsibilities of "réviseur d'entreprises agréé" for the audit of the consolidated financial statements » section of our report. We are also independent of the Group in accordance with the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants ("IESBA Code") as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the consolidated financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of the audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Impairment of goodwill

Please refer to note 7 in the notes to the consolidated financial statements for information on the accounting policies applied and the assumptions used. Information on the value of goodwill can be found under note 18 to the consolidated financial statements.

a) Why the matter was considered to be one of most significant in the audit Goodwill amounts to EUR 57.4 million as at 31 December 2021 and thus represents 7.2% of total assets.

Impairment of goodwill is tested at least annually or as determined necessary on the level of the Air & Ocean and Solutions business segments. For this purpose, the carrying amount of the assets is compared with their recoverable amount for the respective business segment. If the carrying amount exceeds the recoverable amount, an impairment loss must be recognised. In this regard, the recoverable amount corresponds to the value in use, which is determined using a valuation model based on the discounted cash flow method. The key date for annual impairment testing is 31 December. Impairment testing of goodwill is complex and based on a range of assumptions which require judgement. These assumptions include the expected business and earnings development of the business segments for the next five years, the assumed long-term growth rates, the discount rate used and the allocation of carrying amounts to the two business segments.

As a result of the impairment tests conducted, the Company established a need for impairment for the Solutions business segment amounting to EUR 9.0 million.

There is a risk for the consolidated financial statements that a negative deviation in the assumptions and estimates underlying the measurement that are described in the notes to the consolidated financial statements could result in valuation falling short of the carrying amounts.

b) How the matter was addressed in the audit

With the involvement of our valuation specialists, we assessed, among other things, the appropriateness of the significant assumptions and the calculation model of Logwin AG. For this purpose, we discussed the expected business and earnings development and the assumed long-term growth rates with those responsible for planning. We also reconciled this information with other internally available forecasts, e.g. for tax purposes, and with the approved strategic corporate planning. Furthermore, we evaluated the consistency of assumptions with external market assessments and the market capitalisation of Logwin AG. We also confirmed the accuracy of the Company's previous forecasts by comparing the budgets of previous financial years with actual results and by analysing deviations.

Since even small changes to the discount rate can have a significant impact on the results of impairment testing, we compared the assumptions and parameters underlying the discount rate, in particular the risk-free rate, the market risk premium and the beta coefficient, with our own assumptions and publicly available data.

Based on the valuation model used by Logwin AG, we have verified the methodological approach and the computational accuracy by executing a re-performance of the computation. In order to take account of forecast uncertainty for impairment testing, we investigated the impact of potential changes in the discount rate, earnings performance and the long-term growth rate on the recoverable amount (sensitivity analysis) by calculating alternative scenarios and comparing these with the values stated by the Company.

Finally, we assessed whether the disclosures in the notes on impairment of goodwill were appropriate. This also included an assessment of the appropriateness of disclosures in the notes in accordance with IAS 36.134(f) on sensitivity in the event of a reasonably possible change in key assumptions used for measurement.

Recognition and adherence to the accrual basis regarding trade receivables and contract assets and completeness and adherence to the accrual basis regarding trade payables

Please refer to note 7 in the notes to the consolidated financial statements for information on the accounting policies applied and the assumptions used. Information on trade receivables can be found in note 23 to the consolidated financial statements.

a) Why the matter was considered to be one of most significant in the audit

Trade receivables and contract assets as well as trade payables amount to EUR 296.3 million and EUR 323.3 million respectively as at 31 December 2021 and account for a considerable share of assets and liabilities.

As at 31 December 2021, contract assets amounting to EUR 34.9 million have been disclosed. Furthermore, contract liabilities amounting to EUR 17.1 million were netted with contractual receivables incurred at year end, but due and payable at a later date.

Recognition and accrual of trade receivables and contract assets, i.e. revenue from transport services in the Air + Ocean and Solutions business segments, is being performed on a period-basis. This requires estimates concerning the performance status of individual shipments. These estimates are based on historical values and projected values, as well as on contractual arrangements and agreements. Recognition and the determination whether trade receivables are recognised on an accrual basis depends on these Company estimates and assumptions which require judgement. There is a risk that trade receivables have not been accurately recognised on an accrual basis and that contract assets have been determined erroneously.

The complete recognition of trade payables relating to transportation services and the accrual basis recognition of trade payables, consequently the cost of sales from transportation services, also requires estimates concerning the status of service performance of individual shipments and the related costs, which may not yet be invoiced. These estimates are based on historical values and projected values, as well as on contractual arrangements. Determining that trade payables are recognised in full and according to the accrual basis depends on Company estimates and assumptions which require judgement. There is the risk that trade payables have not been recognised in a sufficient amount and/or that they have not been recognised on an accrual basis.

b) How the matter was addressed in the audit

We assessed the estimates concerning the recognition and the appropriate accrual of trade receivables and contract assets as well as the completeness and the appropriate accrual basis recognition of trade payables. In order to do so, we verified, on a sample basis, selected IT systems and internal controls which we identified as relevant in the processes and which are intended to ensure the recognition , the adherence to the accrual basis of accounting and the completeness .

The validation of customer transactions was performed particularly at the main operating companies. The population to be audited was determined by means of a risk-based selection. Using a mathematical-statistical procedure, customer transactions were evaluated on the basis of their contractual basis and the assessments made were verified. Additionally, we obtained balance confirmations for the main operating companies using a mathematical-statistical procedure.

We have verified the determination of the period-based revenue recognition at group level by recalculating the performance level and assessed the underlying shipment data on a sample basis.

The audit of trade payables was also carried out at the level of the main operating companies. For selected companies we have obtained balance confirmations. Additionally, we assessed the actual use of the accruals created in the previous year for outstanding invoices in the financial year. Furthermore, the accruals booked as of 31 December were assessed on the basis of a specific selection of samples. In addition, we checked the complete recording as of the reporting date based on random samples of the trade accounts payable posted in the following year using a mathematical-statistical method.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information stated in the consolidated annual report including the consolidated management report and the Corporate Governance Statement but does not include the consolidated financial statements and our report of "réviseur d'entreprises agréé" thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report this fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Audit Committeefor the consolidated financial statements

The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs as adopted by the European Union, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

The Board of Directors is responsible for presenting and marking up the consolidated financial statements in compliance with the requirements set out in the Delegated Regulation 2019/815 on European Single Electronic Format ("ESEF Regulation").

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group's financial reporting process.

Responsibilities of the réviseur d'entreprises agréé for the audit of the consolidated financial statements

The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of "Réviseur d'Entreprises agréé" that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

Our responsibility is to assess whether the consolidated financial statements have been prepared in all material respects with the requirements laid down in the ESEF Regulation.

As part of an audit in accordance with the EU Regulation Nº 537/2014, the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report of the "Réviseur d'Entreprises agréé" to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report of the "Réviseur d'Entreprises agréé". However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter.

Report on other legal and regulatory requirements

We have been appointed as "réviseur d'entreprises agréé" by the General Meeting of the Shareholders on 8 April 2021 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is 7 years.

The consolidated management report is consistent with the consolidated financial statements and has been prepared in accordance with applicable legal requirements.

The Corporate Governance Statement, as published on the Company's website (https://www.logwinlogistics.com/company/investors/governance.html), is the responsibility of the Board of Directors. The information required by Article 68ter paragraph (1) letters c) and d) of the law of 19 December 2002 on the commercial and companies register and on the accounting records and annual accounts of undertakings, as amended, is consistent, at the date of this report, with the consolidated financial statements and has been prepared in accordance with applicable legal requirements.

We confirm that the audit opinion is consistent with the additional report to the Audit Committee or equivalent.

We confirm that the prohibited non-audit services referred to in the EU Regulation No 537/2014 were not provided and that we remained independent of the Group in conducting the audit.

We have checked the compliance of the consolidated financial statements of the Group as at 31 December 2021 with relevant statutory requirements set out in the ESEF Regulation that are applicable to financial statements.

For the Group it relates to:

• Consolidated financial statements prepared in a valid xHTML format;
• The XBRL markup of the consolidated financial statements using the core taxonomy and the common rules on markups specified in in the ESEF Regulation.

In our opinion, the consolidated financial statements of Logwin AG as at 31 December 2021, identified as logwinag-2021-12-31.zip, have been prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.

Our audit report only refers to the consolidated financial statements of Logwin AG as at 31 December 2021, identified as logwinag-2021-12-31.zip, prepared and presented in accordance with the requirements laid down in the ESEF Regulation, which is the only authoritative version.

Luxembourg, 3 March 2022

KPMG Luxembourg Société coopérative Cabinet de révision agréé

Yves Thorn Partner

Logwin AG | ZIR Potaschberg | 5, an de Längten | L-6776 Grevenmacher | Luxembourg