NON-AUDITED REPORT OF THE LUKA KOPER GROUP AND LUKA KOPER, D. D., JANUARY – JUNE 2023

Luka Koper Group and Luka Koper, d. d.

1	Introduction 3
2	Performance hiughlights of the Luka Koper in January - June 20235
3	Presentation of the Luka Koper Group 11
4	Business report 15
5	Accounting report34

1 Introduction

1.1 Introductory note

Compliant with the Market and Financial Instrument Act, Ljubljana Stock Exchange Rules as well as Guidelines and Disclosure for Listed Companies, Luka Koper, d. d., Vojkovo nabrežje 38, 6501 Koper discloses this Non-Audited Report on the performance of Luka Koper Group and Luka Koper, d. d., January – June 2023.

Non-Audited Report on the performance of Luka Koper Group and Luka Koper, d. d., in January – June can be examined at Luka Koper, d. d., Vojkovo nabrežje 38, 6501 Koper and shall be accessible via the company's website www.luka-kp.si, from August 24, 2023 onwards.

The company promptly publishes any pertinent changes to information contained in the prospectus for stock exchange listing on SEOnet, the electronic information system.

This Non-Audited Report on the performance of Luka Koper Group and Luka Koper, d. d., in January – June 2023 was addressed by the company's Supervisory Board at its regular session on August 24, 2023.

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2 Performance hiughlights of the Luka Koper in January - June 2023

The first half of 2023 ended with good business results for the Luka Koper Group. All financial indicators exceeded the planned indicators for the period. Net sales in the amount of EUR 158.9 million were ahead on planned by 9 percent or EUR 13.3 million. Compared to the same period of the previous year, net sales increased by 2 percent or EUR 3.8 million, despite the expected decrease of revenue from storage fees. Higher revenue resulted from stuffing and unstuffing of containers. Revenue from storage fees decreased by 20 percent or EUR 8.5 million compared to the same period last year due to the shortening of the container retention time in the warehouses as the result of normalization of the situation on the global logistics market. Earnings before interest and taxes (EBIT) in the first half of 2023 amounted to EUR 37.6 million and was higher than planned by 87 percent or by EUR 17.5 million, and by 21 percent or EUR 10.2 million below the achieved in the first half in the previous year. Despite the achieved higher net sales revenue in the first half of 2023 compared to the first half of 2022, two factors i.e a rise in costs as a result of inflationary pressures and a drop in revenues from storage fees affected a lower earnings before interest and taxes (EBIT). Higher throughput was achieved in both strategic product groups of containers (in TEU) and cars (in units) compared to the plan and compared to the previous year. Total maritime throughput in tons was slightly lower than planned quantities and lower than the achieved throughput in the first half of 2022. A new monthly record was set in maritime throughput of containers in March 2023, and namely 105,744 container units TEU, and a new monthly record in the maritime transshipment of cars in the amount of 87,533 cars.

The Russian -Ukrainian conflict continues even in 2023. The direct exposure of the Luka Koper Group towards Rusia and Ukraine is otherwise relatively small, since the volume of throughput via the Port of Koper, destined to the Russian and Ukrainian markets, is negligible. Notwithstanding, the Management Board regularly monitors the market conditions and responds to ensure the smooth operations of the Luka Koper Group. On the energy markets, however, the uncertainity regarding the supply of energy products and price movements decreased slightly. Following the gas stocks accumulations in Europe and weaker than expected demand in China, energy prices have fallen significantly from their peaks in 2022. Although the outlook for the economic growth in the beginning of 2023 improved, indicators do not indicate a more pronounced recovery of the economic activity in the first half of the year. However, international institutions have foreseen the strenghtening of economic activities in the second half of the year.

The situation in the logistics at the global level is also quite complex. The arrivals of containers ships both on direct connections with Far East and from Mediterranean ports are still unreliable, container freight rates have dropped to pre-Covid level. European ports mainly face a high saturation of of car transhipment terminals.

The Luka Koper Group continues to implement major investments fort he most relevant strategic commodity groups containers and cars.

NET REVENUE FROM SALE 158.9 million EUR

+2 % 2023/2022

+9 % 2023/PLAN ²⁰²³

EARNINGS BEFORE INTEREST AND TAXES (EBIT) 37.6 million EUR

-21 % 2023/2022 +87 % 2023/PLAN ²⁰²³

RETURN ON SALES (ROS) 23.7 %

-23 % 2023/2022

+71 % 2023/PLAN ²⁰²³

MARITIME THROUGHPUT

11.4 million TON

-3 % 2023/2022 -3 % 2023/PLAN ²⁰²³

CONTAINER THROUGHPUT

554.9 THOUSAND TEU +5 % 2023/2022 AT THE PLAN 2023 LEVEL

CAR THROUGHPUT

451.6 THOUSAND UNITS

+23 % 2023/2022 +22 % 2023/PLAN ²⁰²³

EARNINGS BEFORE INTEREST AND TAXES, DEPRECIATION AND AMORTISATION (EBITDA) 53.8 million EUR

-15 % 2023/2022

+48 % 2023/PLAN ²⁰²³

EBITDA margin 33.9 %

-17 % 2023/2022

+35 % 2023/PLAN ²⁰²³

NET PROFIT OR LOSS 32 million EUR

-23 % 2023/2022 +83 % 2023/PLAN ²⁰²³

RETURN ON EQUITY (ROE)

12.3 %

-29 % 2023/2022 +81 % 2023/PLAN ²⁰²³

INVESTMENT EXPENDITURE 19.3 million EUR

-40 % 2023/2022 -29 % 2023/PLAN ²⁰²³

NET FINANCIAL DEBT / EBITDA 0.6

+0.4 2023/2022

-0.1 2023/PLAN ²⁰²³

Alternative performance measures

The Luka Koper Group also used alternative measures (APMs¹ Guidelines), defined by ESMA² .

Alternative measures	Calculations	Explanation of the selection
Earnings before interest and taxes (EBIT)	Earnings before interest and taxes(EBIT) = difference between operating income and costs.	It shows the performance (profitability) of the company's operations from the core business.
Earnings before interest and taxes, depreciation and amortisation (EBITDA)	Earnings before interest and taxes, depreciation and amortisation (EBITDA) = Earnings before interest and taxes(EBIT) + amortisation.	A measure of the company's financial performance and an approximation of the cash flow from operations. Shows the ability to cover write-downs and other non-operating expenses.
Added value	Added value = net revenue from sale + capitalised own products and own services + other revenue – costs of goods, material, services – other operating expenses excluding revaluation operating expenses .	Shows the operational efficiency of the company.
Return on sales (ROS)	Return on sales (ROS) = Earnings before interest and taxes(EBIT) / net revenue from sale.	Shows the operational efficiency of the company
Return on equity (ROE)	Return on equity (ROE) = net income/ shareholder equity	Shows the management success in increasing the value of the company for the owners or shareholders.
Return on assets (ROA)	Return on assets (ROA) = net income / average total assets	Shows how a company manages its assets.
EBITDA margin	EBITDA margin = Earnings before interest, taxes, depreciation and amortisation (EBITDA) / net revenue from sale.	Shows the business performance and profitability of market activity in percent. It is used to compare the company performance with other companies.
EBITDA marža iz tržne dejavnosti	EBITDA margin from market activity = Earnings before interest and taxes, depreciation and amortisation (EBITDA) / net revenue from sale from market activity.	Shows the business performance and profitability of market activity un percent.
Net financial debt/EBITDA	Net financial debt/EBITDA = (Financial liabilities – cash and cash equivalents) / EBITDA.	Shows indebtedness and profitability of a company in order to assess the company's ability to settle its financial debts in the future if the company maintains the same volume of buisness and profit.
Ratio between the market price and earnings per share (P/E)	Ratio between the market price and earnings per share (P/E) = closing share per price / earnings per share (EPS).	It shows how many euros investors in the market are willing to pay at a certain ,moment for each euro of the company's profit. It is used to estimate the value of the company and its shares on the market.
Book value of share per day (in EUR)	Book value of share = equity / number shares.	It shows the value of a share based on the value of the company's equity on a given day.
Ratio between market price and book value of share (P/B)	Ratio between market price and book value of share (P/B) = closing share price / book value of share.	It shows a comparison of a market value of the company's equity on the stock exchange with its accounting value on a given day.

¹ APMs – Alternative Performance Measures

² ESMA - European Securities and Markets Authority – European Securities and Markets Authority

Key performance indicators

The key performance indicators of Luka Koper, d. d., and the Luka Koper Group in January - June 2023, in comparison with 2022

		Luka Koper, d. d.		Luka Koper Group
Items	1 – 6 2023	1 – 6 2022	Index 2023/ 2022	1 – 6 2023	1 – 6 2022	Index 2023/ 2022
Net revenue from sale (in EUR)	157,026,532	153,545,468	102	158,937,266	155,120,821	102
Earnings before interest and taxes (EBIT) (in EUR)	36,524,546	46,895,377	78	37,598,602	47,810,943	79
Earnings before taxes, depreciation and amortization (EBITDA) (in EUR)	52,471,844	61,875,735	85	53,826,496	63,153,248	85
Net profit or loss (in EUR)	31,555,661	41,073,315	77	31,992,839	41,518,461	77
Added value (in EUR)	101,217,349	104,119,614	97	106,464,515	108,864,372	98
Investment expenditure (in EUR)	19,169,664	31,635,603	61	19,266,799	31,883,916	60
Maritime throughput (in tons)	11,400,558	11,748,677	97	11,400,558	11,748,677	97
Number of employees	1,690	1,580	107	1,855	1,742	106

Indicators	1 – 6 2023	1 – 6 2022	Index 2023/ 2022	1 – 6 2023	1 – 6 2022	Index 2023/ 2022
Return on sales (ROS)	23.3%	30.5%	76	23.7%	30.8%	77
Return on equity (ROE)3	13.1%	18.7%	70	12.3%	17.5%	70
Return on assets (ROA)4	8.8%	13.3%	66	8.5%	12.6%	67
EBITDA margin	33.4%	40.3%	83	33.9%	40.7%	83
EBITDA margin from market activity	34.3%	41.3%	83	34.7%	41.7%	83
Financial liabilities /equity	31.5%	18.7%	168	29.3%	17.4%	168
Net financial debt /EBITDA5	0.8	0.4	200	0.6	0.2	300

Items	30.6.2023	31.12.2022	Index 2023/ 2022	30.6.2023	31.12.2022	Index 2023/ 2022
Assets (in EUR)	770,316,247	662,680,856	116	808,959,274	701,154,228	115
Equity (in EUR)	485,185,139	480,225,780	101	521,095,244	515,732,169	101
Financial liabilities (in EUR)	152,744,043	63,801,193	239	152,684,704	63,680,089	240

³ Indicator is calculated on the basis of annualised data.

⁴ Indicator is calculated on the basis of annualised data.

⁵ Indicator is calculated on the basis of annualised data.

The key performance indicators of Luka Koper, d. d., and Luka Koper Group in January – June 2023 compared to the plan 2023

		Luka Koper, d. d.		Luka Koper Group
Items	1 – 6 2023	Plan 1 – 6 2023	Index 2023/ plan 2023	1 – 6 2023	Plan 1 – 6 2023	Index 2023/ plan 2023
Net revenue from sale (in EUR)	157,026,532	144,368,398	109	158,937,266	145,635,003	109
Earnings before interest and taxes (EBIT) (in EUR)	36,524,546	19,563,793	187	37,598,602	20,135,968	187
Earnings before interest, taxes, depreciation and amortisation (EBITDA) (in EUR)	52,471,844	35,490,563	148	53,826,496	36,459,325	148
Net profit or loss (in EUR)	31,555,661	17,419,413	181	31,992,839	17,503,375	183
Added value (in EUR)	101,217,349	87,218,742	116	106,464,515	92,142,472	116
Investment expenditure (in EUR)	19,169,664	26,720,892	72	19,266,799	27,176,887	71
Maritime throughput (in tons)	11,400,558	11,748,677	97	11,400,558	11,748,677	97
Number of employees	1,690	1,751	97	1,855	1,915	97

Indicators	1 – 6 2023	Plan 1 – 6 2023	Index 2023/ plan 2023	1 – 6 2023	Plan 1 – 6 2023	Index 2023/ plan 2023
Return on assets (ROS)	23.3%	13.6%	171	23.7%	13.8%	172
Return on equity (ROE)6	13.1%	7.3%	179	12.3%	6.8%	181
Return on assets (ROA)7	8.8%	5.2%	169	8.5%	4.9%	173
EBITDA margin	33.4%	24.6%	136	33.9%	25.0%	136
EBITDA margin from market activity	34.3%	25.5%	135	34.7%	26.0%	133
Financial liabilities/equity	31.5%	24.3%	130	29.3%	22.6%	130
Net financial debt /EBITDA8	0.8	1.1	73	0.6	0.7	86

Items	30.6.2023	Plan 30.6.2023	Index 2023/ plan 2023	30.6.2023	Plan 30.6.2023	Index 2023/ plan 2023
Assets (in EUR)	770,316,247	700,903,544	110	808,959,274	740,073,931	109
Equity (in EUR)	485,185,139	485,549,128	100	521,095,244	522,087,579	100
Financial liabilities (in EUR)	152,744,043	117,913,712	130	152,684,704	117,889,008	130

7 Indicator is calculated on the basis of annualised data.

⁶ Indicator is calculated on the basis of annualised data.

⁸ Indicator is calculated on the basis of annualised data.

3 Presentation of the Luka Koper Group

3.1 Profile of the company Luka Luka Koper, d. d., as of Avgust 16, 2023

Company name	LUKA KOPER, pristaniški in logistični sistem, delniška družba
Short company name	LUKA KOPER, d. d., Vojkovo nabrežje 38, 6000 Koper – Capodistria
Registered office	Koper
Business address	Koper, Vojkovo nabrežje 38, 6000 Koper/Capodistria
Company's legal form	Public limited company
	Phone: 05 66 56 100
	Fax: 05 63 95 020
	Email: [email protected]
	Website: www.luka-kp.si
	Sustainable development: http://www.zivetispristaniscem.si
Company's registration	District court of Koper, application No. 066/10032200
Company's registration number	5144353000
Tax number	SI 89190033
Issued share capital	58.420.964,78 evra
Number shares	14.000.000 of ordinary no par value shares
Share listing	First listing of the Ljubljana Stock Exchange
Share ticker	LKPG
President of the Management Board	Nevenka Kržan
Member of the Management Board – Labour Director	Vojko Rotar
President of the Supervisory Board	Mirko Bandelj
Luka Koper, d. d., core activity	Seaport and logistic system and service provider
Luka Koper Group activities	Various support and ancillary services in relation to core activity

3.1 Luka Koper Group structure and associated companies

The Luka Koper Group provides various services which accomplish comprehensive operation of the Port of Koper. The Luka Koper Group includes six companies, namely the parent company and five subsidiaries:

Luka Koper Group as at 30 June 2023

Controlling company Luka Koper, d. d.
Subsidiary companies
o Luka Koper INPO, d. o. o., 100 %
o Adria Terminali, d. o. o., 100 %
o Logis-Nova, d. o. o., 100 %
o Adria Investicije, d. o. o., 100 %
o TOC, d. o. o., 68,13 %

Associated companies

Adria Transport, d. o. o., 50 %
- o Adria Transport Croatia, d. o. o., 100 % owned by Adria Transport, d. o. o.
Adria-Tow, d. o. o., 50 %
Adriafin, d. o. o., 50 %
Avtoservis, d. o. o., 49%

3.1 Corporate Management Board and Governance

3.1.1 Uprava družbe Luka Koper, d. d.

As at 30 June 2023, the Management Board comprised the following members:

Boštjan Napast, President of the Management Board, appointed on December 3, 2021 for a fiveyear term, he took office on the date of his appointment,
Nevenka Kržan, Member of the Management Board, appointed on April 22, 2022 for a five-year term, she took office on July 1, 2022,
Vojko Rotar, Labour Director, appointed on December 15, 2022 for a five-year term, he took office on February 16, 2023.

Changes in the composition of the Management Board

At is session on May 18, 2023, the Supervisory Board of Luka Koper, d. d., took note of the agreement on the early termination of the term of office and the employment relationship concluded between the company and the President of the management board Boštjan Napast, and on the basis of such an agreement adopted the decision on the early termination of the term of office of the President of the management board. Boštjan Napast held the position of president of management board up to and including 30 June 2023.

The Supervisory Board therefore decided to launch promptly an open competition for the appointment of a new Management Board. For the period from 1 July until the conclusion of the appointment procedure, Board Member Nevenka Kržan took over the management of the Management Board as President.

A presentation of Luka Koper, d.d., Management Board is available on the Comany's website https://luka kp.si/slo/vodstvo-druzbe-193.

3.1.2 Luka Koper, d. d., Supervisory Board

Luka Koper, d. d., Supervisory Board consists of nine members, six of whom are elected by the General Shareholders Meeting, and three from among employees by the Work Council. The Supervisory Board Members' term of office is four years.

As at 20 June 2023, Luka Koper, d. d., Supervisory Board comprised:

Representatives of Shareholders:

Mirko Bandelj, President of the Supervisory Board Commencement of a four-year term: 7. februar 2023 (36 Shareholders' Meeting)

Tomaž Benčina, Deputy President of the Supervisory Board Commencement of a four-year term: 7 June 2022 (35 Shareholders' Meeting)

Boštjan Rader, član nadzornega sveta Commencement of a four-year term: 7 February 2023 (36 Shareholders' Meeting)

Jožef Petrovič, Member of the Supervisory Board Commencement of a four-year term: 7 February 2023 (36 Shareholders' Meeting)

Barbara Nose, Member of the Supervisory Board Commencement of a four-year term 7 February 2023 (36 Shareholders' Meeting)

Borut Škabar, Member of the Supervisory Board Commencement of a four-year term: 7 February 2023 (36 Shareholders' Meeting)

Representatives of the Employees:

Rok Parovel, Member of the Supervisory Board Commencement of a four-year term: 13 September 2020 (34 Shareholders' Meeting – informing of shareholders)

Mladen Jovičić, Member of the Supervisory Board Commencement of a four-year term: 8 April 2021 (34 Shareholders' Meeting – informing of shareholders)

Mehrudin Vukovič, Member of the Supervisory Board Commencement of a four-year term: 19 January 2020 (33 Shareholders' Meeting – informing of shareholders)

External Member of the Audit Committee of the Supervisory Board:

Mateja Treven, external Member of the Audit Committee of the Supervisory Board Appointed for the period from 23 February 2023 until revoked.

3.1 Business development strategy

MISSION

By observing the highest standards of sustainable development and innovative approaches, we provide our partners efficient, reliable and high-quality services.

VISION

Luka Koper as a leading port operator and global logistics solutions provider for the countries of Central and Eastern Europe.

VALUES

Luka Koper continued its activities to achieve the objectives set out in the Strategic Business Plan 2020–2025, increasing the throughput of containers to1.2 million container units (TEU) and cars na 0.9 million units. In addition to the Company's objectives and orientations, the Strategy outlines nine strategic projects, with which the Company will implement this strategic business plan. The projects include capacity expansions in both strategic commodity groups and the digitalisation of key processes, anotably in linking the entire logistics chain, and increasing port throughput. The development of the Port of Koper relies on the construction of a second Divača and Koper railway track, which began in 2021, and according to the information of the company 2TDK (concession holder for construcion and management of the second Divača–Koper railway track) will be operational in 2026. This implies that until the end of 2025, Luka Koper cannot expect any significant increase in railway capacitiy. In the meantime, the company and its stakeholders will be increasing the capacity of the existing railway line through organisational measures, infrastructural adjustments and information technology measures. Meanwhile, further growth is also expected in road transport.

The company has set the following objectives until 2025:

Target	Target value in 2025
Net sales revenue	279.4 million EUR
Total throughput	27.3 million tons
Containers throughput	1.227 million TEU
Cars throughput	0.886 million units
Return on equity (ROE)	8.1 %
Earnings before interest and taxes (EBIT)	47.8 million EUR
EBITDA margin	32.1 %
Added value per employee	93,353 EUR
Operability of the container terminal	700 m of the quayside: southern side and the rear areas of the northern side of the pier
Operability of the car terminal	Parking garage 2a, parking surfaces (5A, 6A, 7A), 3 new berthing places
Operability of the timber terminal	Integrated and arranged in the rear areas of the pier II (berth, warehouses, tracks)
Operability of the general cargoes terminal	New automatised warehouse, enlargement of the quayside by 166 m and 10,800 m2 of stacking areas
Number of berths	32 berths
Quayside	3.2 km of constructed quayside
Investments	2020-2025: 576.5 million EUR

4 Business report

4.1 Performance of the Luka Koper Group in January - June 2023

The Luka Koper Group closed the first half of 2023 with good business results. All financial indicators exceeded the planned indicators for the period, but they are slightly lower than those achieved in the same period of the previous year. In both strategic commodity groups of containers (in TEU) and cars (in units), a higher throughput was achieved compared to the plan and also to the same period of the previous year. Total shipping throughput, measured in tonnes, in the first half of 2023 was slightly lower than planned volumes and lower than achieved in the first half of 2022, mainly due to a higher proportion of empty containers transhipped during this period, while the total number of handlings increased. In the month of March 2023, a new monthly record of shipping container transshipment was achieved, namely 105,744 TEU container units were transshipped, as well as a new monthly record of transshipment of cars in the amount of 87,533 vehicles.

Cargo groups (in tons)	1 – 6 2023	1 – 6 2022	Index 2023/2022
General cargoes	515.445	700.720	74
Containers	5.078.174	5.034.745	101
Cars	768.418	639.676	120
Liquid cargoes	2.256.005	2.106.692	107
Dry and dry bulk cargoes	2.782.515	3.266.843	85
Total	11.400.558	11.748.677	97

Maritime throughput in tons per cargo groups in January – June 2023 in comparison with 2022

Containers (TEU) and cars (in units) throughput in January – June 2023 in comparison with 2022

Cargo groups	1 – 6 2023	1 – 6 2022	Index 2023/2022
Containers – TEU	554.949	526.510	105
Cars – units	451.611	367.332	123

The lower throughput of the commodity group of general cargoes, compared to the same period of the previous year, was mainly impacted by reduced throughput of steel products and cautchouc, due to the greater containerisation of the latter. Higher throughput of timber was recorded in the maritime throughput of timber. However, the trend of containerisation of these goods has been increasing, which is reflected in the increase of additional services of containers stuffing and a modified ratio between full and empty containers for the benefit of empty ones.

The irregular arrivals of ships both on direct connections with the Far East and other Mediterrannean ports continued also in the second half of 2023. Despite irregular arrivals of vessels, the land part of the logistic chain performed slightly better, so that the container terminal recorded lower occupancy of the terminal than in the previous year. In January – June 2023, the maritime throughput of containers was 5 percent higher than i the comparable period last year and amounted to 554,949 TEU. In March, the container terminal set an absolute monthly record of containers throughput with 105,744 TEU and thus firstly surpassed the limit of 100,000 TEU.

The maritime throughput of cars (in units) in the first half of 2023 was 23 percent ahead on equivalent period of the previous year. Luka Koper recorded higher throughput both in export, mainly for the Middle East and Far East, as well as in import, where the share of electric vehicles, mostly Chinese, has been increasing significantly. In March the car terminal set an absolute monthly record with 87,533 vehicles transhipped.

The throughut of liquid cargoes in January – June 2023 was 7 percent higher in comparison wih the same period last year, the throughput increased in all commodity groups.

The maritime throughput of the cargo group dry and bulk cargoes in the first half of 2023 was lower by 15 percent in comparison with the equivalent period in 2022, above all the throughput of soya, aluminum oxide, phospates and coal.

In the whole structure of the maritime throughput predominate containers, of which share increased by 1.7 percentage point. The share of the commodity group liquid cargoes increased by 1.9 percentage point in comparison with 2022, the share of the commodty group cars by 1.3 percentage point. The share of the commodity group dry and bulk cargoes decreased by 3.4 percentage point, the share of the commodity group general cargoes by 1.4 percentage point.

Structure of the maritime throughput by cargo groupes (in tons)

4.1.1 Financial analysis of the performance of the Luka Koper Group

In the first half of 2023, the Luka Koper Group achieved good business results. Net sales were higher by 2 percent or EUR 3.8 million compared to the comparable period of the previous year. Higher revenue resulted from higher costs of services and higher revenue and higher revenue from stuffing and unstuffing of containers. The revenue from storage fees decreased by 20 percent or EUR 8.5 million in comparison with the previous year, as the growth trend of this type of revenue moderated at the end of 2022, because after the gradual normalization of the situation on the global logistics market the retention time of goods in warehouses started to decrease.

In the first half of 2023, earnings before interest and taxes (EBIT) amounted to EUR 37.6 million and were lower by 21 percent or EUR 10.2 than EBIT achieved in the first half of the previous year. Despite the achieved higher net sales in the first half of 2023 compared to the first half of 2022, the higher growth in operating costs had a negative impact on the achieved operating result (EBIT). Compared to the first half of 2022, all types of costs increased in 2023, whilst the operating expense was below the expected costs of the reporting period.

In the first half of 2023, the operating expense amounted to EUR 123.2 million anbd in comparison with the comparable period in 2022 increased by 13 percent or by EUR 14.2 million. All types of costs increased. Within the cost of material, the cost of energy increased due to the higher consumption and higher costs of electricity, also the costs of spare partes increased due to the higher volume of maintenance works and higher costs of material. Within the costs of services the cost of port services increased consequently to the higher volume of business operations, mainly due to the higher martime transhipment of cars. The costs of port services increased, higher concession fee resulted from higher net sales. Due to the higher volume of maintenance works and higher costs, the maintenance costs increased, the costs of IT support were higher. Labour costs were higher due to the higher number of employees, higher payments for job performance and the adjustment of salaries for inflation. Costs of amortisation were higher due to new purchases of assets, other operating expenses were higher than last year's due to higher compensation costs for the use of building land and higher compensation costs.

Share of operating expenses within net revenue from sale

Share of operating expenses within net revenue from sale in January – June 2023 amounted to 77.5 percent, which was 7.3 percentage point ahead on 2022, mainly due to higher operating expense as a result of inflation developmnets. In comparison with 2022, the share of services costs and share of labour costs increased, shares of other types of costs remained unchanged.

The achieved net profit or loss in the first half 2023 in the amount of EUR 32 million was lower than the achieved net profit or loss in the first half of the previous year by 23 percent or EUR 9.5 million. The net operating result was positively affected by the operating result from financing from higher interest income.

As at 30 June 2023, the balance sheet of the Luka Koper Group amounted to EUR 808.9 million, which was 15 percent or EUR 107.8 million ahead on 31 December 2022.

Assets structure

Within non-current assets of the Luka Koper Group the value of property, plant and equipment as well as value of investments, measured at fair value, increased. Current assets increased due to trade receivables, following the increase of revenue, and from placement of funds in short-term bank deposits amounting to EUR 90 million as at 30 June 2023.

Structure of liabilities

The increase of equity of the Luka Koper Group in the first half of 2023 by EUR 5.4 million was the net effect of the transfer of net profit or loss of the period in the amount of EUR 32 million and positive changes of revaluation surplus of investments in the amount of EUR 8.4 million, and its decrease due to the transfer of a part of the profit fort he paying out of the dividends of the controlling company in the amount of EUR 35 million, according to the decision of the Shareholders' Meeting which was held in June 2023. Non-current liabilities with long-term provisions and long-term accrued costs and deferred revenue of the Luka Koper Group as at 30 June 2023 were EUR 46.6 million higher as at 31 December 2022, mainly affected by the change of non-current financial liabilities. Non-current financial liabilities in the reported period increased by EUR 47.1 million and namely as the net effect of the realised drawdown of funds according to the concluded long-term credit contract of the controlling company in the amount of EUR 60 million and the transfer of principals from contractually agreed amortisations schedules to non-current liabilities. As at 30 June 2023, non-current liabilities of the Luka Koper Group were higher by EUR 55.8 million compared to 31 December 2022. The increase is the result of the increase of current financial liabilities by EUR 41.9 million due to the liabilities related to the distribution of the operating result and the aforesaid drawdown of a new loan, increase of operating and other liabilities by EUR 20.5 million, mainly due to the increased volume of business and higher excises duties on energy products and decreased income tax liabilities by EUR 6.6 million due to the payment of liability.

Financial liabilities of the Luka Koper Group as at 30 June 2023 amounted to EUR 152.7 million, which was EUR 89 million ahead on 31 December 2022. The increase in the amount of EUR 35 million was attributable to the increase of liabilities related to the distribution of the profit due to the transfer of dividends to the payment, whilst the liabilities for received loans increased by EUR 54.1 million.

The liquidity of the Luka Koper Group was very good, as at 30 June 2023, the Group reported cash and cash equivalents in the amount of EUR 89.5 million and short-term given deposits in the amount of EUR 90 million.

As at 30 June 2023, the net financial indebtedness/EBITDA⁹ ratio amounted to 0.6. The increase in the value of the indicator is the result of the fact that the Luka Koper Group companies, due to the changed situation in the financial markets, placed a part of their surplus cash in the amount of EUR 90 million in deposits in banks and which are not included in the calulation of the net financial indebtedness. If the Luka Koper Group were to keep all surplus cash assets in the form of cash and cash equivalents, the value of the net financial indebtedness/EBITDA would be still negative i.e. -0,2.

4.1.2 Comparison of the results achieved by the Luka Koper Group, achieved in January - June 2023, in relation to the plan

In the first half of 2023, the Luka Koper Group exceeded planned performance indicators. In both strategic commodities groups containers (in TEU) and cars (in units) was achieved higher throughput than planned. Total maritime throughput (in tons) lagged behind the planned level by 3 percent. Maritime throughput was lower than planned (in tons) in the commodity groups general cargoes, containers and dry bulk and bulk cargoes. Net sales in the amount of EUR 158.9 million was by 9 percent or EUR 13.3 million higher than planned.

Cargo groups (in tons)	1 – 6 2023	Plan 1 – 6 2023	Index 2023/Plan 2023
General cargoes	515,445	693,090	74
Containers	5,078,174	5,285,297	96
Cars	768,418	649,140	118
Liquid cargoes	2,256,005	2,050,000	110
Dry and dry bulk cargoes	2,782,515	3,071,150	91
Total	11,400,558	11,748,677	97

Maritime throughput in tons per cargo groups in January - June 2023 in comparison with the plan 2023

Containers (TEU) and cars (in units) throughput in January – June 2023 in comparison with the plan 2023

Cargo groups	1 – 6 2023	Plan 1 – 6 2023	Index 2023/Plan 2023
Containers – TEU	554,949	553,999	100
Cars – units	451,611	371,640	122

Higher net sales revenue than planned positively affected earnings before interest and tax (EBIT) of the Luka Koper Group, which amounted to EUR 37.6 million in the first half of 2023 and was by 87 percent or EUR 17.5 million higher than planned. Operating expenes of the Luka Koper Group were by 3 percent or EUR 3.5 million below the planned.

In the first half of 2023, net profit or loss of the Luka Koper Group amounting to EUR 32 million was by 83 percent or EUR 14.5 million above the planned.

⁹ The indicator is calculated on the basisi of annualised data.

4.1.3 Investments in non-financial assets

In the first half of 2023, the Luka Koper Group allocated EUR 19.3 million in property, equipment and plant, investment property and intangible fixed assets, which was down by 40 percent in comparison with the first half of 2022. In the first half in the previous year Luka Koper, d. d., activated two major investments for the enlargement of the Pier I. In the first half of 2023, Luka Koper, d. d., allocated EUR 19.2 million for investments, which represents 99.5 of the Luka Koper Group investments.

The realization of investments was 29 percent behind the planned values, mainly due to the occupation of storage areas, delays in obtaining the appropriate approvals.

Investments in the property, plant and equipment, property investments and intangible assets of the Luka Koper Group

Major investments were made:

continued shift of stacking blocks at the Container terminal,
construction of new connection points for reefer containers,
continued arrangement of the stacking areas in the landfill 5A area,
continued construction of a new external truck terminala at Sermin entrance,
purchase of 8 new terminal tractors with trailer for the needs of the Container terminal,
continued upgrading of the Dry bulk terminal sipkih tovorov,
construction of two new transformer stations is underway,
purchase of 9 new 8-tons forklifts for the needs of the General cargoes terminal.

4.2 Significant events, news and achievements in January - June 2023

FEBRUARY

− In the beginning of February, Luka Koper, d. d., published the call for sponsorhips and donations from the fund Living with the Port.
− The Management Board of Luka Koper, d. d., convened 36th Sharholders Meeting which was heldon February 6, 2023. At the Shareholders Meeting, the shareholders recallad the Members of the Supervisory Board Franci Matoz, Nevenka Črešnar Pergar, Andrej Koprivec and Božidar Godnjavec and and appointed new members of the supervisory board as of 7 February 2023 appointed new members of the supervisory board, namely Boruta Škabar, Barbara Nose, Jožef Petrovič, Boštjan Rader and Mirko Bandelj.
− On 23 February 2023, the supervisory board of Luka Koper, d. d., board met for the first time in its renewed composition. At the first, constituentr session, the e members elected the president Mirko Bandelj, the deputy president Tomaž Benčina. All the committies of the supervisory board - audit, human resources and business committee were also newly formed.

MARCH

− On March 2023, Luka Koper, d. d., organised a business event for Polish business partners in Warsaw. More than 150 local logistic providers attended the event, among the also the representatives of Koper port community.
− At the end of March, the largest world fair of cruise tourism 'Seatrade Cruise Global 2023' was held in Miami, where Luka Koper, d. d., presented itself jointly with other stakeholders involved in nautical tourism activities in Slovenia.

APRIL

− The Supervisory Board of Luka Koper, d. d., at the meeting on April 13, 2023 examined the proposal for the use of balance sheet profit, which the Management Board and the Supervisory Board will propose to the Shareholders' Meeting for the approval. The Management and the Supervisory Board propose the following use of the balance sheet profit, which as at December 31, amounted to EUR 50,229,863.63: part of the balance sheet profit in the amount of EUR 35,000,000.00 is intended for the payment of dividends in the gross value of EUR 2.50 per ordinary share, the remaining balance sheet profit in the amount of EUR 15,229,863.96 remains undistributed.

MAY

− Luka Koper, d.d. presented itself at the largest European logistics fair, Transport Logistic Muenchen, between 9 and 12 May 2923.
− At is session held on 18 May 2023, the Supervisory Board of Luka Koper, d.d. took note of the Agreement on early termination of the term of office and employment relationship that was concluded between the company and the President of the Management Board. On the basis of such an agreement adopted the decision on the early termination of the term of office of the President of the Management Board. Boštjan Napast acted as President of the Management Board till and including 30 June 2023.
− On 20 May, the company organised the traditional Prort's day attended by 3.000 visitors.
− On May 22, a summit on ports, logistics, transport and maritime economy in the Adriatic region was held in Trieste, with active participation of Luka Koper, d.d. representatives.
− From 20 to 23 , as part of a government economic delegation, Luka Koper, d.d. participated in several events in Vietnam, which represents a significant potential for the Port of Koper and Slovenian logistics in general.
− On 25 May, Luka Koper, d. d., published the the convocation of 37 Shareholders' Meeting on 28 June 2023.

JUNE

− The business conference on logistics, was held in Beograd, an event organized by the Chamber of Commerce of Slovenia in cooperation with Luka Koper, the public agency SPIRIT Slovenia, Slovenian Rilways, Chamber of Commerce of Serbia and Slovenian Business Club in Beograd. The purpose of Slovenian logistics delegation was to find additional opportunities for cooperation with Serbian logistics companies.

− On 8 and 9 June the company organized a two-days 'CoolWorkshop' with detailed presentation of services at the Container terminal and Reefer terminal. The workshop was attended by 25 representatives of Polish logistics providers, hauliers as well as importers and exporters.
− On 21 Junea meeting of Northern Adriatic port was held in Trieste, where the representatives of the ports signed a memorandum of understanding for joint strenghtening of decarbonisation and energy efficiency in the ports, which paves the way to greater institutional and operational cooperation Northern Adriatic ports in coming years.
− On 20 and 21 June, a traditional event Österreichischer Logistik Tag+Logistik Future Lab was hed in Linz. It is the most important logistics event in Austrai where Luka Koper, d.d. presented itself again this year.
− On June 22, Baltic-Adriatic Corridor coordinator Anne E. Jensen with colaborators paid visit to the Port of Koper. The purpose of the visit was to review past, current and planned activities that are partially or fully implemented within the framework of European projects.
− At the 37 Shareholders' Meeting held on 28 June 2023, the shareholders:
- o Adopted the decision according to which the grosss amount of EUR 2.50 per dividend is allocated for paying out the dividend, for which the company will allocate EUR 35.000.000,00 from the total amount of EUR 50.229.863,96 of didtibutable profit for 2022. Dividends will be paid out on 31 August 2023,
- o Approved the Report on the Remuneration for the Management and Supervisory Bodies and granted the discharge to the Management Board and Supervisory Board for 2022,
- o Appointed the BDO Revizija d. o. o. as auditor for financial years 2023, 2024 and 2025,
- o Adopted the Remuneration Policy for Management and Supervisory Bodies and Management Bodies of the Subsidiaries,
- o Rejected the proposal to determine the amount of remuneration for performance of the function and attendance at meetings fort he menbers of the Supervisory board and members of committees.

4.3 Relevant post-balance events

JULY

− One of the most important investments in the car segment at the Port of Koper was concluded in the rear areas of the Basin III. A new storage area for additional 3.500 vehicles at landfill site 5 was put into use.
− Based on the provisions of tha Articles of Association, the Supervisory Board of Luka Koper, d. d., published a call for applications for: President of the Management Board (m/f) or Memebr of the Management Board (m/f).
− Luka Koper, d.d. received the judgement of the Koper Higher Court (CPG 50/2023) of 6 July 2023, by which the High Court dismissed the appeals of the Applicant and of all the defendants against the judgement passed by the Koper District Court (I Pg 265/2021 of 28 September 2022). The High Court thus upheld the judgement of the Court of First Instance regarding the liability for damages of the former members of the Supervisory Board in the case concerning the purchase of a 10 % shareholding in the logistics holding company Trade Trans Invest (TTI) for an amount of EUR 16.387.100, plus interest.The judgement is final.
− On 19 July Koper was hit by a storm, during which the mooring ropes on the container ship have been thorn which resulted in towards the southern side of the basin I. The tugs of the company Adria-Tow were involved in the rescue, they tugged the boat and tied her up at the container terminal quayside. Strong wind and rain caused a few other damaging events in the port. No injuries were reported during the storm and damage assessment is still ongoing. The damage to two container cranes has not been repaired yet, so they are not in use, which results in longer stay of ships in the port.
− In July 2023, the EMAS certificate awarded by the Ministry of Environment, Climate and Energy was renewed. With the certificate the Company demonstrates the compliance with the statutory requirements, continuous demonstration of progress in the environmental area and transparent communication with the public.

4.1 Risk management and opportunities

4.1.1 Impact of the Russia-Ukraine conflict on the business performance of the Luka Koper Group

The Russian - Ukraine conflict has no relevant impact on the Company's strategic orientations and goals. DSue to the small volume of business in the affected region and consequently, low exposure to it, the aggravated circumstances will not materially affect the operating profit. The Luka Koper Group does not intend to apply to the State aid. No impact was encountered on the Group's employees, since there are no Group's representatives in the affected regions.

The Luka Koper Group estimates that the war in Ukraine may indirectly impact the Group's business performance in 2023. The invasion of Ukraine has already affected the loss of throughput of project cargo due to Russian ownership of the customer's production. A negative impact may be the result of restrictions on the export of certain commodity groups from Europe in order to ensure self-suffiuciency. Currently, the exact impact of the war on business results can not be predicted, but based on currently available information, a long-term impact on the company's operations is not expected.

Current trends in energy, raw materials and food markets affected by the war in Ukraine, show additional inflationary pressures and which impacted higher operation expenditure. The estimation of the future impact of the Russian invasion o Ukraine was made on the basis of assumptions that the conflict would not expand in other areas and that it would not last long. In case of a protracted conflict, this could be reflected in more pronounced increase of energy and food commodities and long-term high inflation. The Group has been implementing the following actions for risk management:

Luka Koper, d. d., had concluded a contract for the supply of petroleum derivatives until mid-2023. The contract lays down, that the price of petroleum products is established on the basis of price quotations and fixed margin.
Luka Koper, d. d., includes provisions on the adjustment of sales prices to inflation in contracts.
The supply of the electricity was contracted with the supplier, with which the company contracted leased quantities and determined prices for the period until the end of 2024. A tender of the supply of the electricity in the period from 2025 to 2026, has also been published in the period from 2025 to 2026, with which the company will manage the risk to an accceptable level.
Due to longer delivery times, stocks of critical material have been increased accordingly.

Since the out break of the crisis, the Management Board has been paying additional attention to the monitoring of the state and conditions in the comoany's information environment and implement measures to ensure availability, confidentiality and integrity of information assets, and notably:

Regular inspection and upgrading of server and communication infrastructure.
Regular inspection and updating of application solutions.
Regular monitoring of access rights.
Use of multi-factor authentication.
Protection against DDOS attacks
Control over privileged users.
Regular raising of awareness among users

4.1.2 Other risks

Although the economic situation in the first half of 2023 improved compared to the end of 2022, and exceeded the expectations, signs of a slowdown in economic activity still prevail. With high core inflation, market stakeholders expect further increases in key interest rates of central banks. In 2024, the economy will recover moderately with less impact from inhibiting factors. The GDP growth forecast in 2023 and 2024 in important hinterland countries is significantly below the long-term average.

Gross domestic product growth slowed in the second half of 2022, uto domačega proizvoda se je v drugi polovici leta 2022, amid high inflation and tight financing. In 2023, the economic growth will moderate significantly, and in some economies it is expected to be negative. In 2024, the economy is expected to recover moderately,with less impact of current inhibiting factors. The data indicate a relatively short-term and mild recession in the European Union, with GDP growth forecast in major trading partners significantly below the long-term average. The situation in the domestic economy and the external environment are reflected in the inflation forecast, which is expected to be 6.7% in the European Union, according to the forecast of the European Commission. Forecasts for single European countries vary between 5% and even 16% (for Hungary). The inflation is expected to moderate in 2024. Inflationary trends and expectation for the company asre mainly reflected in the following areas – an increase in material costs (fuel, electric energy), labour costs and cost of services and increase in the value of planned investments, both for equipement and for infrastructure. Energy and raw material prices are expected to be high for a long time. As a result of the rise of energy prices, especially companies in energy-intensive activities face an increase of operating costs. High prices can lead to reduced production and subsequently to a decline in the throughput of some commodity groups, with some dry bulk cargoes being the most exposed.

The Group has been facing commercial risks arising from a highly competitive environment and the entry of shipowners into the ownership of terminals , which may lead to a diversion of part of the throughput. The neighbouring ports have been also paying a lot of attention to strenghtening competiveness in the field of rail connections. In recent year, storage capacities developed ine neighbourhood of the Port of Koper, in which mainly the forwarding agencies have been offering CFS services¹⁰. This represent competition for us, especially in the segment of stuffing and unstuffing of containers. On January 7, 2021 the purchase of 50.01 percent share of the company Piattaforma Logistica Trieste in the port of Koper Trst was completed by Hafen und Logistik AG (HHLA). Transshipment in the segment of general cargoes, RO-RO and containers will be carried out by the company HHLA PLT Italy. The Board of Directors of the Port Authority of Rijeka decided that the APM Terminals/Enna Logic, owned by the shipping company A.P. Moller – Maersk will be the concessionaire of the container terminal for the next 50 years.

The main strategic risks originating from the external environment, remain the obsolete, insufficient capacity of the existing rail network and with the possibility of longer interruptions on the railway track to the Port of Koper which may jeopardize further throughput growth and development of the Port of Koper. The construction of the of the second rail track between Divača and Koper will contribute to the increasing capacity and reliability of the railway connection to the port, which can be fully exploited by upgrading at the same time the railway junction in from of the port of Koper. In 2023, the work will be continued by the working group that started implementing the actions from Transcare study to improve IT support, implementation of infrastructure interventions and organizational changes.

When reconsidering the Regulation on threshold values of noise indicators in ship's environment, there are risks that the ship will be redefined as a source of noise in the port, or that lower threshold values will be set, as a result of which there may be an inability to comply with legislative requirements. The Group manages the risk connected with the excessive noise by a gradual transition to technological equipment with electric power supply, also participates in the project Neptunes, within the framework of which solutions have being sought to reduce ship noise. As of January 1, 2023 the Environmental Ship Index (ESI) was introduced in the company. It is a voluntary scheme used by ports to encourage and reward environmentally and more accepatble ships, as cleaner ships will pay lower port fees. By introducing ESI system we wish to attract as many ships as possible with modern engines and cleaner drives to the port, thus reducing the emissions into the atmospehere.

The draft of the Regulation of the Europeana Pariament and Council on establishment of the infrastructure for alternative fuels, which is being coordinated, predicts that by 2030 it will be necessary to ensure the supply of ships with electricity from shore. Luka Koper, d. d., and the company ELES carry out procedures for obtaining the spacialenvironmental and project dokumentation for tdrawing up the national spatial plan for distribution transformer station Luka Koper and connecting line up to the port, which are necessary for the supply of ships with the elctricity.

The company hase recognized cliamte risks, which comprise the impact of the company's activities on cliamte change and the impact of cliamte change on the company's operations, which can have a significant impact on the company's financial performance. The transit risk is rated higher – the risk of tightening environmental policy requirements at the level of EU and Slovenia. Adapting to these requirements may represent additional financial burdens for the company for investments in replacing equipment and the construction of the additional infrastructure. Among physical climate risks, storms and extreme weather events have the highest rated risk as they increase in frequency and intensity. In July 2023, strong wind and rain have caused some emergency events in the port. No one was injured during these events, the damage has not benn yet accurately assessed. The company

¹⁰ CFS – containers stuffing/unstuffing services

has already been following the additional recommendations of the Maritime Directorate and is preparing a set of additional risk management measures in cooperation with external institutions.

In accordance with the Whistleblower Protection Act, in May 2023 we established an upgraded system for reporting irregularities in the Luka Koper Group companies.

In 2023, the activities necessary to ensure the compliance with the Regulation on explosion protection (Official Gazette RS, No. 41/2016). This regulation specifies the requirements that must be met by equipment and protective systems intended for use of potentially explosive atmospheres. These are mainly used at the Bulk and liquid cargoes terminal.

4.2 Trading in LKPG

The share of Luka Koper, d. d., identified as LKPG, is listed in the first quotation of Ljubljan Stock Exchange. As at 30 June 2023, the share ended its trading with 29 percent higher value than in the comparable period last year. On the last trading day of the firts half of 2023, the LKPG amounted to EUR 31.1 per share.

As at 30 June 2023, 8.919 shareholders were registeered in the shareholders register, which is 97 more than in the previous year. The largest owner of the company remains the Republic of Slovenia.

Ten largest shareholders in Luka Koper,d. d., as at 30 June

Shareholder	Number shares 30.6.2023	Percentage stake 30.6.2023 in %	Number shares 30.6.2022	Percentage stake 30.6.2022 in %
Republic of Slovenia	7,140,000	51.00	7,140,000	51.00
Slovenski državni holding, d. d.	1,557,857	11.13	1,557,857	11.13
Kapitalska družba, d. d.	696,579	4.98	696,579	4.98
Municipality of Koper	439,431	3.14	439,431	3.14
Citibank N.A. – fiduciary account	313,395	2.24	300,274	2.14
OTP banka d.d. – fiduciary account	298,436	2.13	158,398	1.13
Hrvatska poštanska banka d.d. – fiduciary account	150.082	1.07	150,232	1.07
Zagrebačka banka, d. d. – fiduciary account	131,374	0.94	160,424	1.15
Raiffeisen Bank International AG	111,780	0.80	141,119	1.01
NLB skladi – Slovenija mešani	52,205	0.37	113,859	0.81
Total	10,891,139	77.79	10,858,173	77.56

4.2.1 Trading in LKPG

In the first half of 2023, the average daily price of Luka Koper, d. d., strood at EUR 27.38, whilst its overall value fluctuated between EUR 24.90 and EUR 31.50. The highest daily price was EUR 32.50, the lowest EUR 24.20. As at 30 June 2023, the market capitalisation of Luka Koper, d.d. amounted to EUR 435,400,000.

In January – June 2023, 1,251 transactions and block trades with aggregate value of EUR 6,525,580 were made, whereby 235,096 shares changed ownership. In January – June 2023, the SBITOP Index increased by almost 18 percent, whilst the LKPG share 25 percent increase.

Changes in the daily LKPG share and daily turnover in January – June 2023

Display of changes in the value of the SBI TOP index and the closing daily rate of LKPG in the period January - June 2023

Relevant data on LKPG

	1 – 6 2023	1 – 6 2022
Number of shares	14,000,000	14,000,000
Number of ordinary shares no par value shares	14,000,000	14,000,000
Closing price as at 30.6. (in EUR)	31.10	24.10
11 Book value of shares as at 30.6. (in EUR)	34.66	32.05
Ratio between average weighed price in avce (P/B)12	0.90	0.75
13 Net earning per share (EPS) (in EUR)	4.51	5.87
Ratio between market price and earnigs per share (P/E)14	6.90	4.11
15 Market capitalisation as at 30.6. (in mio EUR)	435.40	337.40
Turnover – all transactions in January – June (in mio EUR)	6.53	9.96

4.2.2 Number of LKPG shares by the Supervisory Board and Management Board Members

		Shareholder	Ownership 30. 6. 2023
Supervisory Board	Rok Parovel, Member of the Supervisory Board		8

As at 30 June 2023, other members of the Supervisory Board of Luka Koper, d. d., did not own company's shares.

4.2.3 Treasury shares, authorised capital, conditional capital increase

As at 30 June 2023, Luka Koper, d. d., held no treasury shares. The applicable Articles of association do not provide for categories of authorised capital up to which the Management Board could increase the share capital. The company had no basis for the conditional increase in the share capital.

4.2.4 Rules on restrictions and disclosure on trading with company's shares and shares of related parties

In compliance with Ljubljana Stock Exchange recommendations Luka Koper, d. d., adopted the Rules on trading with issuer's shares. These rules represent an additional assurance on equal information to all interested public on relevant business events in the company and are important in strenghtening the trust of investors and the corporate reputation. The purpose of the Rules is to enable the persons to trade in shares of Luka Koper, d.d. and to prevent any possible tradig based on insider information. At the same time, the Rules enable mandatory reporting in accordance with the law on the sale and purchase of company's shares to the Securities Market Agency.

¹¹ Book value of share = equity / number shares.

¹² Ratio between market price and book value of share (P/B) = closing share price / book value of share.

¹³ Earnings per share (EPS) = net profit or loss / number shares.

Indicator is calculated on the basis of annualised data. ¹⁴ Ratio between the market price and earnings per share (P/E) = closing share per price / earnings per share (EPS).

Indicator is calculated on the basis of annualised data.

¹⁵ Market capitalisation = closing share price * number of shares.

4.3 Sustainable development

The Port of Koper is embedded in the urban environment, in the hinterland borders Škocjan Bay protected area. Therefore, the care for the quality of people's life and the protection of the nature is emphasized in all development documents and Company' key policies. Quite a while ago, the company integrated the sustainable development principles in its business operations and strategic orientations, whilst in the Social Responsibility and Sustainable Development Strategy, adopted in the beginning of 2021, set the objectives it will strive to achieve in cooperation with local and institutional stakeholders taking into account the best international practices.

Highlights of January - June 2023

Luka Koper, d. d., received a change in the environmental protection pemit fort he operation of the noise source.
Due to the increased volume of work, 88 recruitments were realised in the Luka Koper Group in January - June 2023.
The company did not record any serious injuries in the reported period.
Representatives of the northern Adriatic ports signed a memorandum of understanding for the joint strenghtening of decarbonisation and energy efficiency in the ports.

4.3.1 Care for employees

The employees of the Luka Koper Group with their knowledge, energy and eagerness prove their collective committment to and co-create the company's future in partnership. Cooperation, responsibility, respect, committment, creativity of every individual are the Company's values, the employees realize in practice.

Number of employees in the Luka Koper Group

	30. 6. 2023	30. 6. 2022	Index 2023/2022
Luka Koper, d. d.	1,690	1,580	107
Luka Koper INPO, d. o. o.	132	131	101
Adria Terminali, d. o. o.	28	26	108
TOC, d. o. o.	5	5	100
Luka Koper Group16	1,855	1,742	106

Number of Agency workers

	30. 6. 2023	30. 6. 2022	Index 2023/2022
Luka Koper, d. d.	381	356	107
Luka Koper INPO, d. o. o.	7	3	233

Comparison between recruitment, termination and turnover rate

		Number of new recruitments		Number of departures	Turnover rate (v %)17
	1 – 6 2023	1 – 6 2022	1 – 6 2023	1 – 6 2022	1 – 6 2023	1 – 6 2022
Luka Koper, d. d.	79	32	27	29	1.6	1.8
Skupina Luka Koper	88	40	34	35	1.8	2.0

¹⁶ Subsidiaries of the Luka Koper Group Logis-Nova, d. o. o., and Adria Investicije, d. o. o., are not shown in the table since they have no employees.

¹⁷ Fluctuation calculation method = number of departures/(previous number of employees + new recruitments) x100

Annual target ²⁰²³ ¹– ⁶ ²⁰²³ ¹– ⁶ ²⁰²² Index 2023/2022 Luka Koper, d. d. 18 10.1 9.9 102 Luka Koper Group / 9.3 9.1 102

Number of hours of training / employee

4.3.2 Occupational health and safety

Luka Koper, d.d. conducts the policy of safe and healthy working environment so that the modes of operation, work processes and cooperation processes with external stakeholders are compliant with the health and safety managament standard ISO 45001. By a variety of measures , such as education, additional training, informing of employees and other stakeholders in the Port, the company takes preventive actions. Each serious injury is adequately examined and measures to prevent the recurrence of such incidents in the future, are taken.

Number of injuries at work/million hours worked

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Luka Koper, d. d.	<17	27.2	18.6	146

Number of serious injuries

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Luka Koper, d. d.	0	0	0	/

Number of collisions in the internal transport / million hours worked

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Luka Koper, d. d.	20	18.3	11.6	158

Number of collisions on handling areas / million hours worked

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Luka Koper, d. d.	35	66.6	57.1	117

The researches show that these are minor incidents that occurred while performing manual work or movement at the worksite. There was no specific factor that stood out. There were different events that were a combination of different circumstances. However, safety in work process largely depends on the current coordination and concentration of people involved. With the aim of improving the level of safety in work processes, a comprehensive review of the provision of safety measures in work processes has been carried out, identifying the need of improving work conditions (more optimal work processes – less space constraints, less intertwining of various handling operations, arranged positions for the movement of workers, access routes) nd the need to raise awareness for safety at work at all levels of management. The company's management adopted measures for improvement in the form of an action plan in July 2023.

4.3.3 Natural environment

Luka Luka Koper, d. d., has always been concerned for improving the quality of life in the entire area in which the port is embedded and is aware of the vulnerability of the natural environment. Realizing that the port has an impact on the environment, Luka Koper has committed itself to sound environmental management, wishing to preserve it for future generation. Monitoring and minimising environmental impacts are part of regular work activities, wherby Koper, d. d., cooperates with competent institutions.

Quantity of health hazardous dust particles PM10 (in μg/m³ )

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Ankaran - Rožnik	<30	12	18	67
Bertoki	<30	24	25	96
Koper – Cruise terminal	<30	14	17	82

Average value of dust deposits (in mg/m²day)

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Average value of dust deposits	<200	114	126	91
Number of exceedances	5	5	9	56

Share of sorted separately collected waste (in %)

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Share of sorted separately collected waste	93	94.4	92.14	102

Average noise levels (in dB)

	1 – 6 2023	1 – 6 2022	Index 2023/2022	Thershold values 2023
	LD =38	LD =39	97	65
Eastern periphery (Bertoki)	LV =36	LV =37	97	60
	LN =34	LN =35	97	55
	LDVN =42	LDVN =42	100	65
	LD =43	LD =44	98	65
Northern periphery (Ankaran)	LV =42	LV =42	100	60
	LN =42	LN =41	102	55
	LDVN =48	LDVN =48	100	65
	LD =53	LD =53	100	65
Southern periphery (Koper)	LV =52	LV =52	100	60
	LN =50	LN =51	98	55
	LDVN =57	LDVN =58	98	65

Legend: L^D – daily noise level, L^V –evening noise level, L^N – night noise level, LDVN – noise level day – evening – night Data in table show the noise without ships and in the front of the first buildings outside the Port's zone.

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Consumption of electric energy (kWh/t)	0.7960	0.8735	0.6876	121
Motor fuel consumption (l/t)	0.1290	0.1276	0.1245	102
Water consumption (l/t)	2.5000	2.0247	2.2199	91

Specific consumption of energy and water per handled ton of the total throughput ¹⁸

In January – June 2023, the target of specific electricity consumption was not achieved. 24.6 percent higher absolute consumption of electricity, compared to the same period of the previous year was mainly impacted by the increased throughput of cold cargoes and reffere containers and the related electricity supply of reefer containers. 2 percent higher specific fuel consumption than the target value resulted from a larger volume of throughput of empty containers, which affected the smaller volume of throughput in tons, higher unplanned conumption of diesel generators for connection of reefer containers and operation of diesel engine eRTG gantry cranes, due to the current difficulties of implementing automatic connections as a result of land subsidience.

Number of pollutions outside the port aquarium

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Number of pollution incidents	0	0	0	/

Inspection and internal measures in spatial interventions

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Number of measures	0	0	0	/

Fire safety

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Intervention time of the professional fire brigade for the interventions and injuries	<3,5 min	2.97	2.97	100
Number of major industrial accidents	0	0	0	/
Number of unrealised inspection fire-safety decisions	0	0	0	/

4.3.4 Social environment

Social responsibility towards the local environment, on which the port activity has most impact, Luka Koper is demonstrated through the support of organised groups and individuals implementing projects or activities relevant for the quality of live of the inhabitants in the local area and namely in the field of sport, culture, ecology, science, education and humanitarian activity.

Sponsorships and donations (in thousand eur)

	Annual target 2023	1 – 6 2023	1 – 6 2022	Index 2023/2022
Luka Koper, d. d.	1,300	630.4	642.2	98

¹⁸ Total throughput comprises maritime throughput, stuffing/unstuffing of containers and land throughput

5 Accounting report

5.1 Financial statements of Luka Koper, d. d., and Luka Koper Group

5.1.1 Income statement

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Revenue	157,026,532	153,545,468	158,937,266	155,120,821
Capitalised own products and services	33,884	61,739	33,884	61,739
Other income	846,224	808,837	1,811,794	1,610,979
Cost of material	-11,298,034	-10,559,719	-11,439,353	-10,747,901
Cost of services	-40,482,087	-35,476,872	-37,885,373	-32,922,295
Employee benefits expense	-48,472,574	-41,781,677	-52,362,383	-45,238,294
Amortisation and depreciation expense	-15,947,298	-14,980,358	-16,227,894	-15,342,305
Other operating expenses	-5,182,101	-4,722,041	-5,269,339	-4,731,801
Operating profit	36,524,546	46,895,377	37,598,602	47,810,943
Finance income	2,622,498	1,882,165	1,336,303	635,457
Finance expenses	-643,875	-171,615	-644,850	-171,550
Profit or loss from financing activity	1,978,623	1,710,550	691,453	463,907
Profit or loss of associates	0	0	797,919	917,932
Profit before tax	38,503,169	48,605,927	39,087,974	49,192,782
Current tax expense	-7,217,729	-7,567,113	-7,364,567	-7,656,980
Deferred taxes	270,221	34,501	269,432	34,029
Net profit from continuing operations	31,555,661	41,073,315	31,992,839	41,569,831
Net profit from discontinued operations	0	0	0	-51,370
Net profit for the period	31,555,661	41,073,315	31,992,839	41,518,461
Net profit attributable to owners of the company	0	0	31,966,041	41,491,625
Net profit attributable to non-controlling interests	0	0	26,798	26,835
Net earnings per share	2.25	2.93	2.28	2.96

Notes to the financial statements are their integral part and shall be read in their conjunction.

5.1.2 Statement of other comprehensive income

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Profit for the period	31,555,661	41,073,315	31,992,839	41,518,461
Items not to be reclassified into profit/loss in future periods	10,374,937	-10,583,995	10,356,464	-10,700,983
Change in revaluation surplus of available-for-sale financial assets	-1,971,238	2,010,958	-1,967,728	2,033,186
Deferred tax on revaluation of available-for-sale financial assets	8,403,699	-8,573,037	8,388,736	-8,667,797
Total comprehensive income for the period	39,959,359	32,500,278	40,381,575	32,850,664

Total comprehensive income for the period owners of the company	39,959,359	32,500,278	40,354,777	32,823,829
Total comprehensive income for the period non controlling interests	0	0	26,798	26,835

5.1.3 Statement of financial position

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
ASSETS
Property, plant and equipment	449,698,133	446,106,451	460,900,613	457,645,315
Investment property	23,194,814	23,467,367	15,224,811	15,324,069
Intangible assets	726,623	870,086	795,623	942,603
Other assets	336,106	216,640	356,054	216,640
Shares and interests in Group companies	4,048,063	4,048,063	0	0
Shares and interests in associates	6,737,709	6,737,709	15,970,186	16,361,004
Other non-current investments	56,409,061	45,758,319	59,621,397	48,989,127
Loans given and deposits	0	0	0	5,557
Non-current operating receivables	39,991	39,991	37,156	39,991
Deferred tax assets	3,419,095	5,120,112	3,405,858	5,104,155
Non-current assets	544,609,595	532,364,738	556,311,698	544,628,461
Inventories	1,782,112	1,596,208	1,782,112	1,596,208
Deposits and loans given	85,000,872	1,717	90,000,872	1,717
Trade and other receivables	70,547,319	59,622,532	71,362,034	60,178,626
Cash and cash equivalents	68,376,349	69,095,661	89,502,558	94,749,216
Current assets	225,706,652	130,316,118	252,647,576	156,525,767
TOTAL ASSETS	770,316,247	662,680,856	808,959,274	701,154,228

EQIUTY AND LIABILITIES
Share capital	58,420,965	58,420,965	58,420,965	58,420,965
Capital surplus (share premium)	89,562,703	89,562,703	89,562,703	89,562,703
Revenue reserves	261,540,812	261,540,812	261,540,812	261,540,812
Reserves arising from valuation at fair value	28,875,134	20,471,436	29,059,154	20,670,418
Retained earnings	46,785,525	50,229,864	82,199,530	85,232,746
Equity of owners of the parent	485,185,139	480,225,780	520,783,164	515,427,644
Non-controlling interests	0	0	312,080	304,525
Equity	485,185,139	480,225,780	521,095,244	515,732,169
Provisions	20,502,329	20,348,498	21,191,541	21,037,710
Deferred income	31,671,006	31,277,675	32,760,744	32,406,391
Loans and borrowings	101,575,988	54,315,463	101,575,988	54,315,463
Other non-current financial liabilities	575,294	741,361	562,406	698,507
Non-current operating liabilities	107,928	1,105,802	146,777	1,145,239
Non-current liabilities	154,432,545	107,788,799	156,237,456	109,603,310
Loans and borrowings	15,193,235	8,336,093	15,193,235	8,336,093
Other current financial liabilities	35,399,526	408,276	35,353,075	330,026
Income tax liabilities	3,166,895	9,842,953	3,267,876	9,866,267
Trade and other payables	76,938,907	56,078,955	77,812,388	57,286,363
Current liabilities	130,698,563	74,666,277	131,626,574	75,818,749
TOTAL EQUITY AND LIABILITIES	770,316,247	662,680,856	808,959,274	701,154,228

5.1.4 Statement of cash flow

(in EUR	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	31,555,661	41,073,315	31,992,839	41,518,461
Adjustments for:
Amortisation/Depreciation	15,947,298	14,980,358	16,227,894	15,342,305
Reversal and impairment losses on property, plant and equipment, and intangible assets	35,258	22,798	35,275	22,798
Gain on sale of property, plant and equipment, intangible assets and investment property	-108,313	-66,101	-108,435	-72,462
Allowances for receivables	237,673	439,404	240,360	450,032
Collected impaired receivables and liabilities	-182,986	-257,822	-189,825	-270,933
Reversal of provisions	-808	-2,975	-808	-2,975
Finance income	-2,622,498	-1,882,165	-1,336,303	-635,457
Finance expenses	643,875	171,615	644,850	171,550
Recognised results of subsidiaries under equity method	0	0	-797,919	-917,932
Current tax expense and income (expenses) from	6,947,508	7,532,612	7,095,135	7,622,951
deferred taxes
Profit before change in net current operating assets and taxes	52,452,668	62,011,039	53,803,063	63,228,338
Change in other assets	-119,466	7,403,460	-139,414	7,403,460
Change in operating receivables	-9,761,641	-23,306,888	-10,015,194	-23,272,000
Change in inventories	-185,904	-67,311	-185,904	-67,311
Change in operating liabilities	22,612,083	-1,533,665	22,282,366	-1,749,888
Change in provision	154,639	-789	154,639	-789
Change in non-current deferred income	393,331	954,463	354,353	950,854
Cash generated in operating activities	65,545,710	45,460,309	66,253,909	46,492,664
Interest expenses	-646,218	-128,443	-647,193	-128,378
Tax expenses	-13,893,787	-4,132,056	-13,962,958	-4,169,703
Net cash flow from operating activities	51,005,705	41,199,810	51,643,758	42,194,583
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received	741,656	199,911	935,334	152,113
Dividends received and profit sharing - subsidiaries	306,538	127,018	0	0
Dividends received and profit sharing - associates Dividends received and share of profits – other	160,247	1,158,075	160,247	1,158,075
companies	30,000	27,836	47,912	83,382
Proceeds from sale of property, plant and equipment, and intangible assets	281,837	66,332	281,959	72,693
Proceeds from sale of investment property	31,824	0	31,824	0
Proceeds from sale, less investments and loans given	845	798	6,403	798
Acquisition of property, plant and equipment, and	-22,179,500	-15,973,534	-22,281,433	-16,201,599
intangible assets
Acquisition of investments, increase in loans given	-85,000,000	0	-90,000,000	0
Net cash flow used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES	-105,626,554	-14,393,564	-110,817,755	-14,734,539
Proceeds from non-current borrowings	60,000,000	14,875,000	60,000,000	14,875,000
Repayment of non-current borrowings	-1,714,286	-12,250,000	-1,714,286	-12,250,000
Repayment of current borrowings	-4,168,047	-7,010,588	-4,168,047	-7,010,588
Payment of the leased asset	-216,130	-183,585	-190,329	-220,696
Net cash flow used in financing activities	53,901,537	-4,569,173	53,927,338	-4,606,284
Net increase in cash and cash equivalents	-719,312	22,237,073	-5,246,658	22,853,761
Opening balance of cash and cash equivalents	69,095,661	16,342,426	94,749,216	40,638,685
Closing balance of cash and cash equivalents	68,376,349	38,579,499	89,502,558	63,492,446

5.1.5 Statement of changes in equity

						Reserves arising on valuation at fair value
(in EUR)	Share capital	Capital surplus	Legal reserves	Other revenue reserves	Retained earnings	Investments	Actuarial gains/losses	Total equity

Balance at 31 Dec 2021	58,420,965	89,562,703	18,765,115	206,142,584	29,592,319	31,260,558	-1,567,938	386,889,959
Changes of equity – transactions with owners Dividends paid	0	0	0	0	-15,960,000	0	0	-15,960,000
Changes of equity – transactions with owners	0	0	0	0	-15,960,000	0	0	-15,960,000
Total comprehensive income for the period
Profit for the period	0	0	0	0	41,073,315	0	0	41,073,315
Change in revaluation surplus of financial assets, less
tax	0	0	0	0	0	-8,573,037	0	-8,573,037
Total comprehensive income for the period	0	0	0	0	41,073,315	-8,573,037	0	32,500,278
Changes within equity
Balance at 30 Jun 2022	58,420,965	89,562,703	18,765,115	206,142,584	54,705,634	22,687,521	-1,567,938	448,716,584

Balance at 31 Dec 2022	58,420,965	89,562,703	18,765,115	242,775,697	50,229,864	21,848,831	-1,377,395	480,225,780
Changes of equity – transactions with owners
Dividends paid	0	0	0	0	-35,000,000	0	0	-35,000,000
Changes of equity – transactions with owners	0	0	0	0	-35,000,000	0	0	-35,000,000
Total comprehensive income for the period
Profit for the period	0	0	0	0	31,555,661	0	0	31,555,661
Change in revaluation surplus of financial assets, less tax	0	0	0	0	0	8,403,698	0	8,403,698
Total comprehensive income for the period	0	0	0	0	31,555,661	8,403,698	0	39,959,359
Changes within equity
Balance at 30 Jun 2023	58,420,965	89,562,703	18,765,115	242,775,697	46,785,525	30,252,529	-1,377,395	485,185,139

5.1.6 Statement of changes in equity

							Total equity
	Capital surplus	Legal reserves	Other revenue reserves	Retained earnings	Investments	Actuarial gains/losses	of the parent company	Non controlling interests	Total equity
									466,965,328

									-15,970,835
									-15,970,835

0	0	0	0	41,491,625	0	0	41,491,625	26,835	41,518,460
0	0	0	0	0	-8,667,797	0	-8,667,797	0	-8,667,797
0	0	0	0	41,491,625	-8,667,797	0	32,823,828	26,835	32,850,663

		18,765,115	206,142,584	89,301,081	23,101,476	-1,732,471	483,561,453	283,704	483,845,157

		18,765,115	242,775,697	85,232,746	22,232,861	-1,562,443	515,427,644	304,525	515,732,169

									-35,019,242
									-35,019,242
									31,992,839
									8,388,736

									40,381,575

									743
									743 521,095,244
	Share capital 58,420,965 0 0 58,420,965 58,420,965 0 0 0 0 0 0 0 58,420,965	89,562,703 0 0 89,562,703 89,562,703 0 0 0 0 0 0 0 89,562,703	18,765,115 0 0 0 0 0 0 0 0 0 18,765,115	206,142,584 0 0 0 0 0 0 0 0 0 242,775,697	63,769,456 -15,960,000 -15,960,000 -35,000,000 -35,000,000 31,966,041 0 31,966,041 743 743 82,199,529	31,769,273 0 0 0 0 0 8,388,736 8,388,736 0 0 30,621,597	Reserves arising on valuation at fair value -1,732,471 0 0 0 0 0 0 0 0 0 -1,562,443	of owners 466,697,624 -15,960,000 -15,960,000 -35,000,000 -35,000,000 31,966,041 8,388,736 40,354,777 743 743 520,783,163	267,704 -10,835 -10,835 -19,242 -19,242 26,798 0 26,798 0 0 312,081

5.2 Note to the financial statements

Luka Koper, d. d., port operator and logistic provider (hereinafter: Company), with registered office at Vojkovo nabrežje 38, Koper, Slovenia, is the controlling company of the Luka Koper Group (hereinafter: Group). Non-audited separate financial statements of Luka Koper, d. d. and non-audited consolidated financial statements of Luka Koper Group, forJanuary – June 2023 or as at 30 June 2023. Consolidated financial statements refer to the financial statements of the controlling company, its subsidiaries and and corresponding results of associates.

Subsidiaries included in the consolidated financial statements:

Luka Koper INPO, d. o. o., 100 %
Adria Terminali, d. o. o., 100 %
TOC, d. o. o., 68.13 %

Associates included in the consolidated financial statements:

Adria Transport, d. o. o., 50 %
Adria Transport Croatia, d. o. o.,100 % owned by Adria Transport, d. o. o.
Adria-Tow, d. o. o., 50 %
Adriafin, d. o. o., 50 %
Avtoservis, d. o. o., 49 %

Companies excluded from the consolidated financial statements as at 30 June 2023:

Logis-Nova, d. o. o., 100 %
Adria Investicije, d. o. o., 100 %

The companies Adria Investicije, d. o. o., and Logis-Nova, d. o. o., were not included in the consolidated financial statements as they are not considered significant for a fair presentation on the Group's financial position.

Statement of compliance

The interim Report has been compiled in accordance with the International Accounting standards 34 – Interim Financial Reporting. The company's financial statements have been compiled in accordance with International Reporting Standards as adopted by the International Accounting Standards (IASB) and European Union and in compliance with Companies Act RS.

Basis for the compilation of financial statements

The financial statements of Luka Koper, d.d. and the Luka Koper Group were compiled on the assumption that the Company /Group will continute to operate in the future, which implies that Company/Group will dispose with enough liquidity assets to ensure the continuity of business performance. The Company/Group operations are not seasonal. The financial statements are compiled in euros (EUR), rounded to the nearest unit. Financial statements provide useful information on the performance in January – June 2023, in comparison with the comparable data fort he previous year and on the Company's financial position as at 30 June 2023 in comparison with the balance as at December 2022.

Financial statements of Luka Koper, d. d. and consolidated financial statements of Luka Koper Group, for the reporting period January – June 2023 and as at 30 June 2023 are not audited, whilst they were audited for the comparable period as at 31 December 2022. When compiling the finacial statements, the same accounting basis and principles at at 31 December 2022, were applied.

Due to the war in Ukraine, the geopolitical situation has deteriorated significantly and affected economic trends in 2023. The consequences had a direct impact on rising energy and raw material prices, which is monitored by the Management board, who responds appropriately to ensure smooth business operations of the Company/the Group.

Use of estimates and judgements

In compliance with IFRS, when compiling financial statements, the Management Board makes estimates, judgements and assumptions that affect the application of guidelines and the reported values of assets and liabilities, income and expenses. Estimates are formed based on experiences from previous years and expevctations in the accounting period. The method of forming estimates and related assumptions and uncertainties are disclosed in the explanations for individual items.

Estimates, judgements and assumptions are reviewed on a regular basis. Actual results may differ from these situations, hence estimates and underlying assumptions are are reviewed on a regular basis. Changes in accounting estimates are recognised in the period for which the estimates are modified, or in the coming periods that are impacted by respective changes.

Estimates and assumptions are mainly applied in the following judgments, without significant changes:

Leases- Identification of lease contracts, determination of lease duration and discount rate
Assessment of provisions for lawsuits
Assessment of the adequacy of lifetime of significant fixed assets
Assessment of the adequacy of the recognition of revenue from contracts with customers
Assessment of the asset impairment
Reallocation of assets or a part of assets among investment properties
Assessment of the fair value of assets
Assessment of the possibility of using receivables for deferred taxes.

5.3 Additional notes to the Income Statement

Net revenue from sale

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Revenue from sales with domestic customers based on contract with customer	50,469,573	43,350,491	52,199,010	44,823,075
- services	50,458,846	43,246,450	52,188,283	44,719,034
- goods and material	10,727	104,041	10,727	104,041
Revenue from sales with foreign customers based on contract with customer	102,036,898	105,958,496	102,484,068	106,328,080
- services	102,036,898	105,958,496	102,484,068	106,328,080
Revenue to customers	152,506,471	149,308,987	154,683,078	151,151,155
Revenue from collected port dues	3,481,292	3,260,018	3,481,292	3,260,018
Revenue from sales with domestic customers from rentals	1,038,769	976,463	772,896	709,648
Total	157,026,532	153,545,468	158,937,266	155,120,821

Higher achieved net revenue from sales resulted from larger volume of containers stuffing and unstuffing services and higher prices of services.

Within the overall structure of the net revenue in the reported period 2023 two customers exceeded 10 percent of total sale, both in the Company as in the Group, which remains at the level of the previous year.

Other revenue

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Other operating income	292,107	326,898	1,215,329	1,108,948
Reversal of provisions	808	2,975	808	2,975
Subsidies, grants and similar income	0	0	916,261	762,578
Revaluation operating income	291,299	323,923	298,260	343,395
Income on sale of property, plant and equipment and investment property	108,313	66,101	108,435	72,462
Collected impaired receivables and written-off liabilities	182,986	257,822	189,825	270,933
Other income	554,117	481,939	596,465	502,031
Compensations and damages	172,225	150,875	210,037	160,640
Subsidies and other income not related to services	380,252	328,215	380,252	328,215
Other income	1,640	2,849	6,176	13,176
Total	846,224	808,837	1,811,794	1,610,979

Subsidies, grants and similar revenue in Luka Koper Group mostly account for retained contributions on salaries of employees in the amount of earmarked in the subsidiary Luka Koper INPO, d. o. o.

In 2023, revaluation operating income from recovered impaired receivables and written-off liabilities increased mostly due to the repayment of a part of receivables, that were impaired in the previous years due to the untimely payment of some customers.

Subsidies and other revenue, not related to the business performance, comprise primarily revenue to cover costs from EU projects.

Cost of material

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Cost of auxiliary material	1,142,553	1,106,389	1,207,510	1,156,102
Cost of spare parts	3,966,925	3,592,794	3,908,360	3,593,088
Cost of electricity	2,808,654	2,277,990	2,843,810	2,297,816
Cost of fuel	3,083,541	3,298,358	3,165,224	3,400,250
Other cost of energy	47,187	68,841	48,199	70,617
Cost of office stationary	63,163	42,802	68,260	47,688
Other cost of material	186,011	172,545	197,990	182,340
Total	11,298,034	10,559,719	11,439,353	10,747,901

The increase of costs of spare parts was attributable mainly to the higher volume of implementation of maintenance of fixed assets, partly also due to the increase in the prices of spare parts. The cost of electricity increased primarily due highjer leased electricity prices and higher consumption compared to the same period last year.

Cost of services

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Port services	19,107,573	16,051,137	17,559,664	14,510,641
Cost of transportation	288,918	215,076	111,979	88,104
Cost of maintenance	4,901,510	3,541,112	4,796,345	3,388,712
Rentals	91,371	93,290	90,018	88,707
Reimbursement of labour-related costs	185,793	132,689	204,692	142,897
Costs of payment processing, bank charges and insurance premiums	808,028	692,020	864,121	786,191
Cost of intellectual and personal services	650,791	536,402	686,043	595,833
Advertising, trade fairs and hospitality	663,475	571,686	667,129	577,309
Costs of services provided by individuals not performing business activities	275,316	154,014	291,447	167,641
Sewage and disposal services	792,506	741,218	542,152	457,247
Information support	2,432,220	2,193,997	2,557,395	2,276,541
Concession-related costs	5,384,432	5,270,215	5,384,432	5,270,215
Transhipment fee	2,814,585	3,126,167	2,814,585	3,126,167
Costs of other services	2,085,569	2,157,849	1,315,371	1,446,090
Total	40,482,087	35,476,872	37,885,373	32,922,295

Within the cost of services of the Company/Group a maor share represented cost of agency workers and costs of services of contractual partners, which increased mainly due to the increased volume of business, adjustment of salaries to the Consumer Price Index for the agency workers and higher variable remuneration paid due to the company's performance above the planned. The cost of maintenance services increased mainly due to the larger volume of maintenance and higher maintenance costs. The cost of other services include mainly container fumagation service which are invoiced to final customers, truck terminal management costs, toll collection costs for the entry in the port area and freight forwarding services.

Cost of labour

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Wages and salaries	31,341,135	27,970,184	33,758,031	30,116,740
Wage compensations	4,653,579	3,103,293	5,035,166	3,419,168
Costs of additional pension insurance	1,410,738	1,227,150	1,537,705	1,344,499
Employer's contributions on employee benefits	6,019,812	5,211,181	6,473,840	5,613,424
Annual holiday pay, reimbursements and other costs	5,047,310	4,269,869	5,557,641	4,744,463
Total	48,472,574	41,781,677	52,362,383	45,238,294

The increase of labour costs in comparison with the previous was was mostly attributable to new recruitments, adjusting of salaries to the Consumer Price Index and payment of higher variable remunerations to the employees due to the Company's business performance which was above the planned.

Amortisation and depreciation expense

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Depreciation of buildings	7,622,338	7,137,129	7,830,699	7,358,474
Depreciation of equipment and spare parts	7,651,191	7,149,422	7,903,261	7,383,919
Depreciation of small tools	7,860	9,972	8,013	10,125
Depreciation of investment property	295,528	291,499	134,517	131,357
Amortisation of intangible assets	151,905	206,975	155,422	232,824
Depreciation of investment into foreign-owned assets	5,786	5,786	8,799	8,799
Depreciation of right-of-use	212,690	179,575	187,183	216,807
Total	15,947,298	14,980,358	16,227,894	15,342,305

Other expenses

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Impairment costs, write-offs and losses on property, plant and equipment, and investment property	35,258	22,798	35,275	22,798
Expenses for allowances for receivables	237,673	439,404	240,360	450,032
Levies that are not contingent upon employee benefits expense and other types of cost	4,015,574	3,680,366	4,098,069	3,681,865
Donations	246,500	239,800	249,050	240,400
Environmental levies	106,565	56,340	92,905	51,714
Awards and scholarship to students inclusive of tax	18,536	1,936	18,536	1,936
Awards and scholarship to students	12,635	10,105	12,635	10,105
Other costs and expenses	509,360	271,292	522,509	272,951
Total	5,182,101	4,722,041	5,269,339	4,731,801

Levies that are not contingent upon labour costs and other types of costs the Company/Group mostly related for the use of the construction land.

Other costs and expenses were primarily compensations for damages to assets, owned by third parties. The damages ocurred during the transhipment of goods in the port.

Finance income and expenses

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	1-6 2023	1-6 2022	1-6 2023	1-6 2022
Finance income from shares and interests	1,880,842	1,736,055	400,969	483,344
Finance income from shares and interests in Group companies	347,674	150,182	0	0
Finance income from shares and interests in associated companies	1,188,737	1,158,075	0	0
Finance income from shares and interests in other companies	68,626	81,637	125,164	137,183
Finančni prihodki iz drugih naložb	275,805	346,161	275,805	346,161
Finance income - interest	672,236	88	863,379	95
Interest income - other	672,236	88	863,379	95
Finance income from operating receivables	69,420	146,022	71,955	152,018
Finance income from operating receivables due from others	69,420	87,981	71,955	90,246
Exchange differences	0	58,041	0	61,772
Total finance income	2,622,498	1,882,165	1,336,303	635,457
Finance expense from financial assets	0	-72,863	0	-72,863
Finance expenses – interest	-561,077	-97,484	-560,783	-97,363
Interest expenses – banks	-557,637	-93,474	-557,637	-93,474
Financial expenses arising from lease liabilities to others	-3,067	-3,726	-3,146	-3,889
Financial expenses arising from lease liabilities to Group companies	-373	-284	0	0
Finance expenses for financial liabilities	-82,798	-1,268	-84,067	-1,324
Finance expenses for trade payables	-6	-2	-6	-2
Finance expenses for other operating liabilities	-14,324	-1,266	-14,349	-1,322
Exchange differences	-68,468	0	-69,712	0
Total finance expenses	-643,875	-171,615	-644,850	-171,550
Net financial result	1,978,623	1,710,550	691,453	463,907

Finance income from other investments and financial expenses from investments refer to the revaluation of financial investments valued at fair value through the income statement.

After the normalization of the situation on the financial markets, Luka Koper, d.d./Group generates financial income with interests from assets placed in short-term deposits.

Profit

Luka Koper, d. d.

In January – June 2023, the company generated the operating profit in the amount of EUR 36,524,546, whils in the equivalent period last year EUR 46,895,377. Financial result was positive and amounted to EUR 1,978,623, in the same period last year it was also positive amounting to EUR 1,710,550. The profit before tax amounted to EUR 38,503,169, whilst in the same period last year to EUR 48,605,927. The corporate income tax in the amount of EUR 7,217,729, in the equivalent period last year EUR 7,567,113, and deferred taxes were also calculated. In the first half of 2023, Luka Koper, d. d. generated net profit or loss in the amount of EUR 31,555,661, whilst the net profit in the comparable period last year amounted to EUR 41,073,315.

Luka Koper Group

In January – June 2023, the Luka Koper Group generated the operating profit in the amount of EUR 37,598,602, v whilst in the equivalent period last year EUR 47,810,943. Financial result was positive and amounted to EUR 691,453, in the same period last year was also positive and amounted to EUR 463,907. The attributed result of associated companies amounted to EUR 797,919, in the same period last year to EUR 917,932. The profit before tax amounted to EUR 39,087,974, whilst in the same period last year to EUR 49,192,782 and deferred taxes were also calculated. The corporate income tax in the amount of EUR 7,364,567, in the same period last year EUR 7,656,980 and deferred taxes were also calculated. Net profit or loss of the Luka Koper Group in the first half of 2023 amounted to EUR 31,992,839, (in the same period of the previous year EUR 41,518,461, whereof from the discontinued operations in the amount of EUR -51,370). To the controlling company pertained EUR 31,966,041 (in the same period of the previous year EUR 41,491,625), whilst to owners of non-controlling interests EUR 26,798 (in the same period of the previous year EUR 26,835). The non-controlling share pertained to the co-owner of the company TOC, d. o. o.

Net earning per share

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	30 Jun 2022	30 Jun 2023	30 Jun 2022
Net profit for the period	31,555,661	41,073,315	31,966,041	41,491,625
Total number of shares	14,000,000	14,000,000	14,000,000	14,000,000
Basic and diluted earnings per share	2.25	2.93	2.28	2.96

5.4 Additional notes to the Statement of Financial position

Property, plant and equipment

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Land	20,637,875	20,138,595	23,787,197	23,287,917
Buildings	285,293,695	288,263,091	291,465,280	294,658,334
Plant and machinery	109,874,824	106,427,539	111,822,268	108,530,087
Property, plant and equipment being acquired and advances given	32,937,058	30,151,426	32,953,908	30,168,276
Right-of-use	954,681	1,125,800	871,960	1,000,701
Total	449,698,133	446,106,451	460,900,613	457,645,315

In January -June 2023, Luka Koper, d. d. allocated the total amount of EUR 19,161,222 for investments in plant and equipment, whilst the Luka Koper Group EUR 19,258,357.

The largest investments were the following:

continued construction of a new external truck terminal at the Sermin entrance,
continued arrangement of the storage areas in the 5A landfill area,
continued shifting of stacking blocks at the Container terminal,
purchase of 9 new 8-tons forklifts for the needs of the General cargoes terminal,
purchase of 8 new terminal tractors with trailer for the needs of the Container terminal,
construction of new connection points for reefer containers was underway,
construction of two new transformer stations is underway,
continued upgrading of the Dry bulk cargoes terminal.

As at 30 June 2023, the Company/Group recorded liabilities for the purchase of property, plant and equipment in the amount of EUR 47,493,252 (as at 31 December 2022, EUR 42,495,843).

(in EUR)	Land	Buildings	Plant and equipment	Assets being acquired	Total
Cost
Balance at 31 Dec 2022	20,138,595	574,194,757	354,039,484	30,151,427	978,524,263
Additions	0	0	0	19,161,222	19,161,222
Transfer from investments in course	0	5,091,857	11,228,935	-16,320,792	0
Disposals	0	0	-1,265,923	0	-1,265,923
Write-offs	499,280	-488,548	-2,035,597	0	-2,024,865
Transfer to investment property	0	0	0	-54,799	-54,799
Balance at 30 Jun 2023	20,637,875	578,798,066	361,966,899	32,937,058	994,339,898
Allowances
Balance at 31 Dec 2022	0	285,931,666	247,611,945	0	533,543,611
Depreciation	0	7,628,124	7,659,050	0	15,287,174
Disposals	0	0	-1,212,908	0	-1,212,908
Write-offs	0	-55,419	-1,966,012	0	-2,021,431
Balance at 30 Jun 2023	0	293,504,371	252,092,075	0	545,596,446
Carrying amount
Balance at 31 Dec 2022	20,138,595	288,263,091	106,427,539	30,151,427	444,980,652
Balance at 30 Jun 2023	20,637,875	285,293,695	109,874,824	32,937,058	448,743,452

Overview of changes in the value of the company's property, plant and equipment in January – June 2023

(in EUR)			Plant and	Assets being
Cost	Land	Buildings	equipment	acquired	Total
Balance at 31 Dec 2021	20,138,595	540,212,421	337,792,237	37,649,656	935,792,909
Additions	0	0	0	50,144,988	50,144,988
Transfer from investments in course of construction	0	34,854,725	22,620,616	-57,475,341	0
Disposals	0	-915,576	-5,730,648	-51,542	-6,697,766
Write-offs	0	-94,870	-675,280	0	-770,150
Transfer to intangible assets	0	0	0	-29,980	-29,980
Transfer from intangible asstes	0	0	32,559	0	32,559
Transfer to investment property	0	0	0	-86,354	-86,354
Transfer from investment property	0	138,057	0	0	138,057
Balance at 31 Dec 2022	20,138,595	574,194,757	354,039,484	30,151,427	978,524,263
Allowances
Balance at 31 Dec 2021	0	271,934,357	239,260,078	0	511,194,435
Depreciation	0	14,753,946	14,692,178	0	29,446,124
Disposals	0	-817,710	-5,730,280	0	-6,547,990
Write-offs	0	-72,563	-610,031	0	-682,594
Transfer from investment property	0	133,636	0	0	133,636
Balance at 31 Dec 2022	0	285,931,666	247,611,945	0	533,543,611
Carrying amount
Balance at 31 Dec 2021	20,138,595	268,278,064	98,532,159	37,649,656	424,598,474
Balance at 31 Dec 2022	20,138,595	288,263,091	106,427,539	30,151,427	444,980,652

Overview of changes in the value of the company's property, plant and equipment in January – December 2022

Overview of changes in the value of the Group's property, plant and equipment in January – June 2023

				Assets
(in EUR)	Land	Buildings	Plant and equipment	being acquired	Total
Cost
Balance at 31 Dec 2022	23,287,916	587,710,773	365,340,554	30,168,278	1,006,507,521
Additions	0	0	97,003	19,161,354	19,258,357
Transfer from investments in course	0	5,091,857	11,229,067	-16,320,925	-1
Disposals	0	0	-1,276,256	0	-1,276,256
Write-offs	499,280	-488,548	-2,035,597	0	-2,024,865
Transfer to intangible assets	0	0	0	-54,799	-54,799
Balance at 30 Jun 2023	23,787,196	592,283,997	373,354,771	32,953,908	1,022,379,872
Allowances
Balance at 31 Dec 2022	0	293,052,440	256,810,467	0	549,862,907
Depreciation	0	7,839,497	7,911,274	0	15,750,771
Disposals	0	0	-1,223,224	0	-1,223,224
Write-offs	0	-55,419	-1,966,012	0	-2,021,431
Balance at 30 Jun 2023	0	300,818,718	261,532,505	0	562,351,223
Carrying amount
Balance at 31 Dec 2022	23,287,916	294,658,333	108,530,087	30,168,278	456,644,614
Balance at 30 Jun 2023	23,787,196	291,465,279	111,822,266	32,953,908	460,028,649

(in EUR)	Land	Buildings	Plant and equipment	Assets being acquired	Total
Cost
Balance at 31 Dec 2021	23,287,916	555,061,052	349,638,972	37,670,657	965,658,597
Additions	0	34,256	556,959	50,180,987	50.,772,202
Transfer from investments in course of construction	0	34,894,321	22,621,169	-57,515,490	0
Disposals	0	-2,340,514	-6,833,825	-51,542	-9,225,881
Write-offs	0	-94,870	-675,280	0	-770,150
Transfer from property, plant and equipment	0	20,960	0	0	20,960
Transfer to intangible assets	0	-2,489	0	-29,980	-32,469
Transfer from intangible asstes	0	0	32,559	0	32,559
Transfer to investment property	0	0	0	-86,354	-86,354
Transfer from investment property	0	138,057	0	0	138,057
Balance at 31 Dec 2022	23,287,916	587,710,773	365,340,554	30,168,278	1,006,507,521
Allowances
Balance at 31 Dec 2021	0	279,071,607	249,049,221	0	528,120,828
Depreciation	0	15,199,239	15,179,124	0	30,378,363
Disposals	0	-1,277,646	-6,807,847	0	-8,085,493
Write-offs	0	-72,563	-610,031	0	-682,594
Transfer to property, plant and equipment	0	-1,833	0	0	-1,833
Transfer from investment property	0	133,636	0	0	133,636
Balance at 31 Dec 2022	0	293,052,440	256,810,467	0	549,862,907
Carrying amount
Balance at 31 Dec 2021	23,287,916	275,989,445	100,589,751	37,670,657	437,537,769
Balance at 31 Dec 2022	23,287,916	294,658,333	108,530,087	30,168,278	456,644,614

Overview of changes in the value of the Group's property, plant and equipment in January – december 2022

Right-of-use assets

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Land	822,972	956,040	822,972	956,040
Buildings	94,556	156,972	11,835	12,442
Plant and machinery	37,153	12,788	37,153	32,219
	954,681	1,125,800	871,960	1,000,701

Investment property

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Investment property - land	14,405,808	14,405,808	11,256,486	11,256,486
Investment property - buildings	8,789,006	9,061,559	3,968,325	4,067,583
Total	23,194,814	23,467,367	15,224,811	15,324,069

Among investment property are land and buildings under lease, and property which increases the value of noncurrent investment. Investment property is valued using the cost model.

Shares and interests in Group companies

As at 30 June 2023, shares and interests in Group companies amounted to EUR 4.048.063 (there were no changes compared to the previous year).

Investments in subsidiaries are not subject to pledge.

Shares in subsidiaries, are excluded in the consolidation procedure in Group's financial statements.

Shares and interests in Group companies

Luka Koper, d. d.

As at 30 June 2023, shares and interests in Group companies amounted to EUR 6,737,709. In comparison with the situation as at 31 December 2022, their value has not changed.

Luka Koper Group

(in EUR)	30 Jun 2023	31 Dec 2022
Balance at 1 Jan	16,361,004	15,784,793
Attributed profits	797,919	1,734,286
- Adria Transport, d. o. o.	183,669	320,493
- Adria Transport Croatia, d. o. o.	-27,997	-43,913
- Adria-tow, d. o. o.	281,917	926,723
- Adriafin, d. o. o.	127,435	44,245
- Avtoservis, d. o. o.	232,895	486,738
Profit distribution	-1,188,737	-1,158,075
- Adria Transport, d. o. o.	-160,246	-200,000
- Adria-tow, d. o. o.	-541,000	-315,000
- Adriafin, d. o. o.	0	-179,338
- Avtoservis, d. o. o.	-487,490	-463,737
Balance at end of period	15,970,186	16,361,004

Other non-current investments

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Other investments measured at fair value through profit or loss	4,481,697	4,205,892	6,967,472	6,691,667
Other investments measured at fair value through comprehensive income	51,927,364	41,552,427	52,653,925	42,297,460
Total	56,409,061	45,758,319	59,621,397	48,989,127

As at 30 June 2023, the value of other investments measured at fair value through profit or loss was higher than as at 31 December 2022, resulting from an in increase in stock market prices in the Company/Group portfolio.

Deferred tax

(in EUR)	Luka Koper, d. d.
	Deffered tax assets		Deffered tax liabilities
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Deferred tax assets and liabilities relating to:
- impairment of investments in subsidiaries	298,562	298,562	0	0
- impairment of other investments and
deductible temporary differences arising on securities	9,000,291	8,740,460	7,096,272	5,125,034
- allowances for trade receivables	254,446	244,056	0	0
- provisions for retirement benefits	423,855	423,855	0	0
- provisions for jubilee premiums	73,071	73,071	0	0
- provisions for lawsuits	11,159	11,159	0	0
- long-term accrued costs and
deferred income from public	453,983	453,983	0	0
commercial services
Total	10,515,367	10,245,146	7,096,272	5,125,034
Off-set with deffered tax liabilities relating to
impairment of other investments and deductible	-7,096,272	-5,125,034	-7,096,272	-5,125,034
temporary differences arising on securities
Total	3,419,095	5,120,112	0	0

(in EUR)	Luka Koper Group
	Deffered tax assets		Deffered tax liabilities
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Deferred tax assets and liabilities relating to:
- impairment of investments in subsidiaries	298,562	298,562	0	0
- impairment of other investments and
deductible temporary differences arising on securities	9,021,458	8,761,627	7,182,844	5,215,116
- allowances for trade receivables	257,024	247,424	0	0
- provisions for retirement benefits	468,598	468,598	0	0
- provisions for jubilee premiums	77,918	77,918	0	0
- provisions for lawsuits	11,159	11,159	0	0
- long-term accrued costs and
deferred income from public	453,983	453,983	0	0
commercial services
Total	10,588,702	10,319,271	7,182,844	5,215,116
Off-set with deffered tax liabilities relating to impairment of other investments and deductible temporary differences arising on securities	-7,182,844	-5,215,116	-7,182,844	-5,215,116
Total	3,405,858	5,104,155	0	0

Short-term investments

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Current loans given	872	1,717	872	1,717
Current deposits	85,000,000	0	90,000,000	0
Total	85,000,872	1,717	90,000,872	1,717

Luka Koper, d. d./Group transferred part of its surplus cash to short-term deposits, with the aim of achieving higher financial income.

Trade and other receivables

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Current trade receivables:
domestic costumers	28,581,990	29,409,231	29,546,703	30,189,532
foreign costumers	26,075,596	21,646,631	26,259,383	21,800,778
Current operating receivables due from Group companies	854,292	568,139	0	0
Current operating receivables due from associates	335,083	413,994	376,219	413,994
Current trade receivables	55,846,961	52,037,995	56,182,305	52,404,304
Short-term receivables from dividends	1,069,627	0	1,028,491	0
Advances and collaterals given	40,249	86,991	41,111	87,616
Short-term receivables related to fianncial revenues	157,386	6,385	197,670	12,410
Receivables due from the state	2,585,515	3,467,266	2,756,804	3,608,808
Other current receivables	1,055,697	203,473	1,173,306	237,797
Total trade receivables	60,755,435	55,802,110	61,379,687	56,350,935
Short-term deferred costs and expenses	9,490,818	3,544,481	9,681,282	3,551,751
Accrued income	301,066	275,941	301,065	275,940
Other receivables	9,791,884	3,820,422	9,982,347	3,827,691
Total	70,547,319	59,622,532	71,362,034	60,178,626

Increase of current trade receivables towards domestic and foreign customers mostly related to the higher turnover volume in the first half of 2023, and higher excise for energy products, reinvoiced by the controlling company at the export of energy products from the warehouses.

The increase of short-term costs mostly relate to the deferred costs, paid in the beginning of the year and are allocated throughout the financial year.

Movement of trade receivables of Luka Koper, d. d.

30 Jun 2023			31 Dec 2022
(in EUR)	Gross amount	Allowances	Net amount	Gross amount	Allowances	Net amount
Outstanding and undue trade receivables	51,083,084	-160,431	50,922,653	47,764,501	-189,119	47,575,382
	5,934,605	-1,010,297	4,924,308	5,389,535	-926,922	4,462,613
Past due receivables:
up to 30 days	3,625,565	-38,087	3,587,478	3,377,788	-35,409	3,342,379
31 to 60 days overdue	1,205,137	-121,111	1,084,026	590,043	-63,243	526,800
61 to 90 days overdue	77,413	-16,689	60,724	524,158	-106,696	417,462
91 to 180 days overdue	207,360	-70,224	137,136	217,437	-78,575	138,862
more than 180 days overdue	819,130	-764,186	54,944	680,109	-642,999	37,110
Total	57,017,689	-1,170,728	55,846,961	53,154,036	-1,116,041	52,037,995

Note: the amount comprises trade receivables and receivables due from subsidiaries and associates.

Movement of trade receivables of the Luka Koper Group

	30 Jun 2023			31 Dec 2022
(in EUR)	Gross amount	Allowances	Net amount	Gross amount	Allowances	Net amount
Outstanding and undue trade receivables	51,173,277	-164,200	51,009,077	47,885,008	-192,045	47,692,963
	6,193,331	-1,020,103	5,173,228	5,653,064	-941,723	4,711,341
Past due receivables:
up to 30 days	3,866,333	-40,526	3,825,807	3,575,096	-37,426	3,537,670
31 to 60 days overdue	1,221,858	-122,652	1,099,206	644,934	-68,856	576,078
61 to 90 days overdue	79,757	-17,117	62,640	530,858	-107,967	422,891
91 to 180 days overdue	206,529	-70,224	136,305	221,369	-79,081	142,288
more than 180 days overdue	818,854	-769,584	49,270	680,807	-648,393	32,414
Total	57,366,608	-1,184,303	56,182,305	53,538,072	-1,133,768	52,404,304

Note: the amount comprises trade receivables and receivables due from associates.

Cash and cash equivalents

(in EUR)		Luka Koper, d. d.	Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Cash in hand	291	228	27,667	18,403
Bank balances	28,376,058	19,091,183	31,494,891	20,746,563
Current deposits	40,000,000	50,004,250	57,980,000	73,984,250
Total	68,376,349	69,095,661	89,502,558	94,749,216

Equity

(in EUR)		Luka Koper, d. d.	Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Share capital	58,420,965	58,420,965	58,420,965	58,420,965
Capital surplus (share premium)	89,562,703	89,562,703	89,562,703	89,562,703
Revenue reserves	261,540,812	261,540,812	261,540,812	261,540,812
Legal reserves	18,765,115	18,765,115	18,765,115	18,765,115
Other revenue reserves	242,775,697	242,775,697	242,775,697	242,775,697
Reserves arising from valuation at fair value	28,875,134	20,471,436	29,059,154	20,670,418
Retained earnings	15,229,864	13,596,751	50,233,489	47,753,717
Net profit for the period	31,555,661	36,633,113	31,966,041	37,479,029
Equity of owners of the parent	485,185,139	480,225,780	520,783,164	515,427,644
Non-controlling interests	0	0	312,080	304,525
Equity	485,185,139	480,225,780	521,095,244	515,732,169

Provisions

(in EUR)		Luka Koper, d. d.	Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Provisions for retirement benefits and similar obligations	9,115,740	8,955,719	9,804,952	9,644,931
Provisions for legal disputes	11,386,589	11,392,779	11,386,589	11,392,779
Total	20,502,329	20,348,498	21,191,541	21,037,710

(in EUR)	1. Termination benefits	2. Jubilee premiums	3. Defined contribition retirement benefit plan	Total benefits (1. 2 and 3)	Claims and damages	Total
Balance at 31 Dec 2021	4,616,315	811,713	2,356,603	7,784,631	11,366,109	19,150,740
Movement:
Formation	536,875	323,411	1,048,575	1,908,861	75,665	1,984,526
Transfer	0	0	-63,495	-63,495	0	-63,495
Use	-154,685	-42,548	-414,203	-611,436	-46,020	-657,456
Reversal	-53,020	-9,822	0	-62,842	-2,975	-65,817
Balance at 31 Dec 2022	4,945,485	1,082,754	2,927,480	8,955,719	11,392,779	20,348,498
Movement:
Formation	0	0	549,010	549,010	0	549,010
Transfer	0	0	-46,465	-46,465	0	-46,465
Use	0	0	-342,524	-342,524	-5,382	-347,906
Reversal	0	0	0	0	-808	-808
Balance at 30 Jun 2023	4,945,485	1,082,754	3,087,501	9,115,740	11,386,589	20,502,329

Movement of provisions of Luka Koper, d. d.

Movement of provisions of the Luka Koper Group

(in EUR)	1. Termination benefits	2. Jubilee premiums	3. Defined contribition retirement benefit plan	Total benefits (1. 2 and 3)	Claims and damages	Total
Balance at 31 Dec 2021	5,163,351	868,626	2,356,603	8,388,580	11,366,109	19,754,689
Movement:
Formation	676,016	356,697	1,048,575	2,081,288	75,665	2,156,953
Use	-230,751	-48,443	-477,698	-756,892	-46,020	-802,912
Reversal	-57,599	-10,446	0	-68,045	-2,975	-71,020
Balance at 31 Dec 2022	5,551,017	1,166,434	2,927,480	9,644,931	11,392,779	21,037,710
Movement:
Formation	0	0	549,010	549,010	0	549,010
Use	0	0	-388,989	-388,989	-5,382	-394,371
Reversal	0	0	0	0	-808	-808
Balance at 30 Jun 2023	5,551,017	1,166,434	3,087,501	9,804,952	11,386,589	21,191,541

The defined contribution plan relate to the liabilities from the post-employment benefits (one-off payment on retirement).

In accordance with Article 92 of IAS 37 – Provisions, Contingent Liabilities and Contingent assets, the Company/Group does not disclose information on its legal obligations as such disclosure would result in a judgement on the position of the Company/Group in disputes with other parties.

Deferred income

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Long-term deferred income for regular maintenance	24,897,452	24,341,825	24,897,452	24,341,825
Non-refundable grants received	6,773,554	6,935,850	6,865,804	7,026,485
Other non-current deffered income	0	0	997,488	1,038,081
Total	31,671,006	31,277,675	32,760,744	32,406,391

Pursuant to the Concession Agreement, Luka Koper, d. d. records deferred income on regular maintenance as noncurrent deferred income since it has the right and obligation to collect port dues, which serve as income intended to cover the costs of performing public utility service of regular maintenance of the port infrastructure intended for public transport. With respect to any annual surplus of revenue over costs, the Company forms non-current deferred income for covering the costs of public utility service relating to regular maintenance of of the port infrastructure in the coming years. In the event that costs exceeded the revenue, the Company would be utilising non-current deferred income.

The grants received comprise non-refundable grants and advance payments received with respect to norefunadable funds for investments into EU development projects which are recorded by the controlling company and are utilised in accordance with their useful life. Under non-refundable funds received, the Group also records retained contributions on salaries of employees of the Luka Koper INPO, d. o. o., sheltered workshop, and namely contributions to insurance schemes for retirement pension, disability, sickness, and maternity. The funds were desimbursed in compliance with the Vocational rehabilitation and employment of persons with diasabilities Act for covering 75 percent of salaries for disabled persons and labour costs for the staff who assist the disabled persons.

The Group's other non-current deferred income comprises non-current deferred income earmarked to cover the costs of depreciation of fixed assets.

Non-current borrowings

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Non-current borrowings from domestic banks	101,575,988	54,315,463	101,575,988	54,315,463
Total	101,575,988	54,315,463	101,575,988	54,315,463

In April, the Company/Group drew down a loan of EUR 60,000,000, which was concluded in previous years.

Current borrowings

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Current borrowings from domestic banks	15,193,235	8,336,093	15,193,235	8,336,093
Total	15,193,235	8,336,093	15,193,235	8,336,093

Other current financial liabilities

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Other current financial liabilities	35,399,526	408,276	35,353,075	330,026
Total	35,399,526	408,276	35,353,075	330,026

Other short-term liabilities increased primarily due to the formation of liabilities for the payment of dividends, which will be paid out on 31 August 2023.

Trade and other payables

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Current liabilities to domestic suppliers	35,756,683	27,630,541	36,117,437	28,308,157
Current liabilities to foreign suppliers	2,166,368	416,588	2,167,001	462,015
Current liabilities to Group companies	782,657	777,047	0	0
Current liabilities to associates	99,876	78,865	99,876	78,865
Current liabilities from advances	14,912,377	11,245,495	15,136,208	11,461,426
Current liabilities to employees	6,606,869	6,515,540	6,999,890	6,968,339
Current liabilities to state and other institutions	151,683	24,295	213,612	60,714
Total operating liabilities	60,476,513	46,688,371	60,734,024	47,339,516
Other operating liabilities	16,462,394	9,390,584	17,078,364	9,946,847
Total	76,938,907	56,078,955	77,812,388	57,286,363

Current operating liabilities increased due to receipt of compensation fee for building site, increased investment in fixed assets and due to the higher amount of liabilities for excise duties on energy products the controlling company invoices in export of energy producuts from warehouses.

Other operating liabilities relate mostly to the accrued costs for the collective job performance, costs of performance bonuses for employees under individual contracts, costs of unused holidays and accrued costs for invoices to be received and accrued costs of discounts. During the year, accrued costs and accrued discounts since some types of accrued costs, which are accrued during the year, are drawn up at the end of the year.

Contingent liabilities

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Securities given	492,789	729,849	0	0
Contingent liabilities under legal disputes	23,618,984	23,618,984	23,618,984	23,618,984
	24,111,773	24,348,833	23,618,984	23,618,984

Luka Koper, d. d./Group reports several different lawsuits for which, in accordance with Article 92 of IAS 37 – Provisions, contingnt liabilities and contingent assets does not disclose information about legal obligations, since their disclosure could create a judgement on the company's position in a dispute with other parties.

Related parties transactions

Transactions with the Government of the Republic of Slovenia

Transactions between Luka Koper, d. d. and the Government of the Republic of Slovenia

	Luka Koper, d. d.
		Costs/
(in EUR)	Payments in	expenses in	Payments	expenses
	period	period	in period	in period
	1 - 6 2023	1 - 6 2023	1 - 6 2022	1 - 6 2022
Concessions and water fee	3,923,242	5,384,432	3,652,726	5,270,215
Transhipment tax	2,990,371	2,814,585	3,008,534	3,126,167
Corporate income tax (taxes and advance payments)	13,893,787	7,217,729	4,132,056	7,567,113
Other taxes and contributions	5,762,723	6,019,812	5,041,976	5,211,181
Total	26,570,123	21,436,558	15,835,292	21,174,676

	Luka Koper Group
	Costs/			Costs/
(in EUR)	Payments	expenses	Payments	expenses
	in period 1 - 6 2023	in period 1 - 6 2023	in period 1 - 6 2022	in period 1 - 6 2022
Concessions and water fee	3,923,242	5,384,432	3,652,726	5,270,215
Transhipment tax	2,990,371	2,814,585	3,008,534	3,126,167
Corporate income tax (taxes and advance payments)	13,962,958	7,364,567	4,169,703	7,656,980
Other taxes and contributions	5,936,113	6,473,840	5,198,304	5,613,424
Total	26,812,684	22,037,424	16,029,267	21,666,786

Transactions between the Luka Koper Group and the Government of the Republic of Slovenia

The Company/the Group did not have other transactions with the Government of the Republic of Slovenia.

Transactions with companies in which the Republic of Slovenia has direct controlling influence

The share-holder related companies are those in which the Republic of Slovenia and SDH together directly holds at least 20 percent stake. The list of these companies is published on the Slovenian Sovereign Holding website (https://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).

Luka Koper, d. d.

In the first half of 2023, Luka Koper, d. d., sales transactions between Luka Koper, d. d. and entities in which the State has directly dominant influence, were recorded at EUR 7,754,389 and purchasing transaction amounted to EUR 3,677,295. Most of sales referred to services in connection with the port activity , major purchases represent also cost of railway transport, purchase of energy and insurance costs. As at 30 June 2023 recorded receivables in the amount of EUR 2,514,041 and liabilities in the amount of EUR 105,391,487. The largest part of liabilities includes the loans given by SID – Slovenska izvozna in razvojna banka, d. d. and Nova Ljubljanske banke, d. d., which were raised under market terms.

Luka Koper Group

In the first half of 2023, the Luka Koper Group conducted transactions in the amount of EUR 7,884,957 referring to the sales to companies where the State has direct dominant influence, and transactions in the amount of EUR 4,345,452 referring to purchase. Most of sales referred to services in connection with the port activity, major purchases represent also cost of railway transport, purchase of energy and insurance costs. As at 30 June 2023, the Luka Koper Group recorded the receivables in the amount of EUR 2,596,816 liabilities in the amount of EUR 105,403,124. The largest part of liabilities includes the loans given by SID – Slovenska izvozna in razvojna banka, d. d. and Nova Ljubljanske banke, d. d., which were raised under market terms.

Transactions with the key management personnel and related parties

In January – June 2023, the Company/Group did not have any transactions with Members of the Management Board and Members of the Supervisory Board.

In January - June 2023, the company had transactions in the amount of EUR 651,487 referring to the sale with related parties, related to the key management personnel, in the amount of EUR 662,271 in the Luka Koper Group. Most of the transactions relate to the services inn connection with the port activity. As at 30 June 2023, the Company recorded EUR 70,127 of liabilities, whilst the Luka Koper Group EUR 72,390. All transactions were conducted under market conditions.

Financial instruments and financial risk management

Financial risks to which the Company/Group is exposed to, include:

1. Risk of change in fair value,
1. Interest rate risk,
1. Liquidity risk,
1. Currency risk,
1. Credit risk and,
1. Risk of adequate capital structure.

In the Company/Group, management of financial risks has been organised within the finance and accounting department, since the accounting for subsidiaries is carried out within Luka Koper d. d. .The existing economic environment makes forecasting future financial categories more demanding, introducing into the planned categories a higher degree of unpredictability and, consequently a higher degree of risk. The company /Group has consequently tightened the control over individual financial categories.

Financial instruments

		Luka Koper, d. d.	Luka Koper Group
(in EUR)	Carrying amount at 30 Jun 2023	Carrying amount at 31 Dec 2022	Carrying amount at 30 Jun 2023	Carrying amount at 31 Dec 2022
Non-derivative financial assets at fair
value
Financial assets at fair value through profit or loss	4,481,697	4,205,892	6,967,472	6,691,667
Financial assets at fair value through other comprehensive income	51,927,364	41,552,427	52,653,925	42,297,460
Non-derivative financial assets at
amortised cost
Financial claims	85,000,872	1,717	90,000,872	7,274
Operating receivables (excluding
receivables due from the state,	57,203,724	52,517,409	57,656,676	52,918,041
advances and collaterals fiven)
Cash and cash exuivalents	68,376,349	69,095,661	89,502,558	94,749,216
Total non-derivative financial assets	266,990,006	167,373,106	296,781,503	196,663,658
Non-derivative financial liabilities at
amortised cost
Bank loans and other financial	116,769,223	62,651,556	116,769,223	62,651,556
liabilities
Lease liabilities Operating liabilities (excluding other	955,599	1,128,073	877,018	1,006,969
non-current and current liabilities,
current liabilities to the state,	38,805,584	28,903,041	38,384,314	28,849,037
employees and from advances and
colalterals)
Total non-derivative financial liabilities	156,530,406	92,682,670	156,030,555	92,507,562

1. Risk management and change in fair value

Luka Koper, d. d.

As at 30 June 2023, 7.3 percent of the Company's assets were financial investments measured at fair value (at the end of the previous year 6.9 percent). The fair value risk associated with investments in securities is demonstrated through changes in stock market prices that affect the value of these assets and, consequently the potential gain on their disposal, whereas with investments in shares of other companies there is a risk for the sales value not to equal the value of the market transaction. This type of risk has been recognised with regard to investments in market securities of Slovenian companies and to investments in shares and interests. .

As at 30 June 2023, the value of non-current investments at fair value amounted to EUR 56,409,061.

The sensitivity analysis of investments at fair value does not disclose in the books the financial investments at fair value classified in level 3 due to their irrelevance.

(in EUR)	Carrying amount at 30 Jun 2023	Fair value at 30 Jun 2023	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	56,409,061	56,409,061	54,749,061	0	1,660,000
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes Current loans and deposits given**	85,000,872	85,000,872	0	0	85,000,872
Non-current financial liabilities
Non-current loans and borrowings**	101,575,988	101,575,988	0	0	101,575,988
Non-current operating liabilities**	107,928	107,928	0	0	107,928
Current financial liabilities
Current loans and borrowings**	15,193,235	15,193,235	0	0	15,193,235
Other current financial liabilities**	19,221	19,221	0	0	19,221

Fair value hierarchy

* measured at fair value ** presented at fair value

(in EUR)	Carrying amount at 31 Dec 2022	Fair value at 31 Dec 2022	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	45,758,319	45,758,319	44,098,319	0	1,660,000
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes
Current loans given**	1,717	1,717	0	0	1,717
Non-current financial liabilities
Non-current loans and borrowings**	54,315,463	54,315,463	0	0	54,315,463
Non-current operating liabilities**	1,105,802	1,105,802	0	0	1,105,802
Current financial liabilities
Current loans and borrowings**	8,336,093	8,336,093	0	0	8,336,093
Other current financial liabilities**	21,564	21,564	0	0	21,564

* measured at fair value ** presented at fair value

The book value of receivables and current liabilities a good approximation of the fair value, therefore the Company does not disclose them in the table above.

Shares and interests measured at fair value were valued at publicly applicable exchange rates at the Ljubljana

In 2022, the Luka Koper Group verified the fair value of other shares and interests classified in the level 3 with a valuation carried out by an independent certified business appraiser.

Luka Koper Group

As at 30 June 2023, 7.4 percent of Group assets were financial investments measured at fair value (as at 31 December 2022, 7.0 percent). The fair value risk associated with these investments is demonstrated through changes in stock market that affect the value of these assets and, consequently the potential gain on their disposal, whereas with investments in shares of other companies there is a risk for the sales value not to equal the value of the market transaction. This type of risk has been recognised with regard to investments in market securities of Slovenian companies and to investments in shares and interests.

As at 30 June 2023, the value of non-current investments at fair value amounted to EUR 59,621,397.

The sensitivity analysis of investments at fair value does not disclose in the books the financial investments at fair value classified in level 3 due to their irrelevance.

Fair value hierarchy

(in EUR)	Carrying amount at 30 Jun 2023	Fair value at 30 Jun 2023	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	59,621,397	59,621,397	55,475,622	0	4,145,775
Non-current operating receivables**	37,156	37,156	0	0	37,156
Current financial asstes Current loans and deposits given**	90,000,872	90,000,872	0	0	90,000,872
Non-current financial liabilities
Non-current loans and borrowings**	101,575,988	101,575,988	0	0	101,575,988
Non-current operating liabilities**	146,777	146,777	0	0	146,777
Current financial liabilities
Current loans and borrowings**	15,193,235	15,193,235	0	0	15,193,235
Other current financial liabilities**	19,221	19,221	0	0	19,221

* measured at fair value ** presented at fair value

(in EUR)	Carrying amount at 31 Dec 2022	Fair value at 31 Dec 2022	Direct stock market quotation (Level 1)	Value defined on the basis of comparable market inputs (Level 2)	No observable market inputs (Level 3)
Non-current financial assets
Other non-current investments*	48,989,127	48,989,127	44,843,352	0	4,145,775
Non-current operating receivables**	39,991	39,991	0	0	39,991
Current financial asstes
Current loans given**	1,717	1,717	0	0	1,717
Non-current financial liabilities
Non-current loans and borrowings**	54,315,463	54,315,463	0	0	54,315,463
Non-current operating liabilities**	1,145,239	1,145,239	0	0	1,145,239
Current financial liabilities
Current loans and borrowings**	8,336,093	8,336,093	0	0	8,336,093
Other current financial liabilities**	21,564	21,564	0	0	21,564

* measured at fair value ** presented at fair value

The book value of receivables and current liabilities a good approximation of the fair value, therefore the Group does not disclose them in the table above.

Shares and interests measured at fair value were valued at publicly applicable exchange rates at the Ljubljana Stock Exchange and the list of mutual funds quotations.

In 2022, the Luka Koper Group verified the fair value of other shares and interests classified in the level 3 with a valuation carried out by an independent certified business appraiser.

2. Management of interest rate risk

With respect to its liabilities structure, the Company/Group also faces interest rate risk as an unexpected growth in variable interest rates can have an adverse effect on the planned results.

Luka Koper, d. d.

The share of financial liabilities for received borrowings increased in the overall structure of the Company's liabilities from the initial 9.5 percent at the end of 2022 to 15.2 percent as at 30 June 2023. The effect of variable interest rate changes on future profit or loss after taxes is shown in the table below.

Possible interest rate fluctuations would consequently have an impact 27.8 percent of total borrowings (as at 31 december 2022, 54.7 percent); the remaining 72.2 percent of borrowings were concluded with a fixed ineterest rate.

Overview of exposure

(in EUR)	30 Jun 2023	Exposure 30 Jun 2023	31 Dec 2022	Exposure 31 Dec 2022
Borrowings received at variable interest rate (without interest rate hedge)	32,490,000	27.8%	34,295,000	54.7%
Borrowings received at fixed interest rate	84,279,223	72.2%	28,356,556	45.3%
Total	116,769,223	100.0%	62,651,556	100.0%

Sensitivity analysis of borrowings from banks in view of the variable interest rate fluctuations:

(in EUR)	Borrowings from banks under the variable interest rate	Increase by 15 bp	Increase by 25 bp	Increase by 50 bp	Increase by 100 bp	Increase by 150 bp
Balance at 30 Jun 2023
3M EURIBOR	32,490,000	48,735	81,225	162,450	324,900	487,350
Total effect on interests expenses	32,490,000	48,735	81,225	162,450	324,900	487,350
Balance at 31 Dec 2022
3M EURIBOR	34,295,000	51,443	85,738	171,475	342,950	514,425
Total effect on interests expenses	34,295,000	51,443	85,738	171,475	342,950	514,425

The analysis of financial liabilities' sensitivity to changes in variable interest rates was based on the assumption of potential growth of interest rates of 15, 25, 50, 100 and 150 base points. As at 30 June 2023, the Company's borrowings not hedged against interest rate were subject to the movement of 3M Euribor.

Luka Koper Group

The share of financial liabilities for borrowings in the overall structure of Group's liabilities increased from initial 8.9 percent at the end of 2022 to 14.4 percent as at 30 June 2023. The effect of variable interest rates changes on future profit and losss after taxes is shown in the table shown in previous Luka Koper, d. d. tables.

Possible interest rate fluctuations would consequently have an impact 27.8 percent of all Group's borrowings (as at 31 December 2022, 54.7 percent); the remaining 72.2 percent of borrowings were concluded with a fixed interest rate.

Overview of exposure and sensitivity analysis of bank borrowings in view of the variable interest rate:

Among the Group's companies only the controlling company has borrowings, therefore the overview of exposure and the sensitivity analysis of borrowings from banks in view of the variable interest rate fluctuations are the same as in the controlling company.

3. Management of liquidity risk

The liquidity risk is the risk that the company/Group will fail to settle its liabilities at maturity. The company/Group manages liquidity risk by regular planning of cash flows with diverse maturity, in such a way that is able to meet all due obligations at any time. Additional measures for preventing from delays in receivable collection include regular monitoring of payments and immediate response to any delay and charging penalty interest in accordance with the uniform policy of receivable management.

	Luka Koper, d. d.
(in EUR)	Up to 3 months	3 to 12 months	1 to 2 years	3 to 5 years	Over 5 years	Total
30 Jun 2023
Loans and borrowings	3,798,309	11,394,927	15,193,235	45,579,706	40,803,046	116,769,223
Accrued interest maturing in the next calendar year	406,848	1,137,023	1,340,509	2,828,011	1,212,139	6,924,531
Liabilities froma lease	109,312	270,993	293,266	282,028	0	955,599
Other financial liabilities	35,019,221	0	0	0	0	35,019,221
Payables to suppliers	45,564,136	0	0	0	0	45,564,136
Other operating liabilities	16,462,394	0	0	0	0	16,462,394
Total	101,360,220	12,802,942	16,827,011	48,689,746	42,015,186	221,695,104
31 Dec 2022
Loans and borrowings	2,084,023	6,252,069	8,336,093	25,008,278	20,971,092	62,651,555
Accrued interest maturing in the next calendar year	200,238	855,564	925,408	1,970,060	943,309	4,894,580
Liabilities froma lease	100,662	286,050	326,241	415,120	0	1,128,073
Other financial liabilities	21,564	0	0	0	0	21,564
Current operating liabilities	35,442,876	0	0	0	0	35,442,876
Other operating liabilities	9,390,584	0	0	0	0	9,390,584
Total	47,239,947	7,393,684	9,587,742	27,393,458	21,914,402	113,529,232

	Luka Koper Group
(in EUR)	Up to 3 months	3 to 12 months	1 to 2 years	3 to 5 years	Over 5 years	Total
30 Jun 2023
Loans and borrowings	3,798,309	11,394,927	15,193,235	45,579,706	40,803,046	116,769,223
Accrued interest maturing in the next calendar year	406,848	1,137,023	1,340,509	2,828,011	1,212,139	6,924,531
Liabilities froma lease	86,773	227,839	280,378	282,027	0	877,018
Other financial liabilities	35,038,463	0	0	0	0	35,038,463
Current operating liabilities	45,597,816	0	0	0	0	45,597,816
Other operating liabilities	17,078,364	0	0	0	0	17,078,364
Total	102,006,573	12,759,789	16,814,123	48,689,745	42,015,186	222,285,415
31 Dec 2022
Loans and borrowings	2,084,023	6,252,069	8,336,093	25,008,278	20,971,092	62,651,555
Accrued interest maturing in the next calendar year	196,551	549,311	652,535	1,377,306	649,672	3,425,375
Liabilities froma lease	84,624	223,839	283,387	415,120	0	1,006,969
Other financial liabilities	21,564	0	0	0	0	21,564
Current operating liabilities	35,878,090	0	0	0	0	35,878,090
Other operating liabilities	9,946,847	0	0	0	0	9,946,847
Total	48,211,699	7,025,220	9,272,014	26,800,704	21,620,764	112,930,400

4. Management of currency risk

The risk of changes in foreign exchange rates arises from trade receivables denominated in US dollars (USD). In recent years, the Company/Group has succeeded in achieving significantly lower accrued income in US dollars to the extent that US dollars denominated receivables are negligible, based on which the Company/Group has opted not to hedge this item. The Company/Group does not disclose this item due to its immateriality.

5. Management of credit risk

Management of the risk of default on the side of the counterparty or the credit risk has gained in importance in recent years. Customer deafults are being passed on to economic entities, much like a chain reaction, which significantly reduces the assessed probability of timely inflows and increases additional costs of financing the operation. Accordingly, the Company/ the Group has accelerated collection-related activities in the past years and more consistently monitored trade receivables past due.In case of customers, regarding whom the Company/Group detects late payments and inconsistency in observing adopted business agreements, and advance payment system is set up for all ordered services with the aim of avoiding the late payments. This area is positvely impacted by the specific structure of the Company's/Group's customers, who are predominantly major companies, freight forwarders and forwarding agents that have been the Company's/Group's business partners for a number of years.

Certain Company's/Group's receivables have been secured with collaterals, which are returned to the customers once all obligations have been settled or cooperation has been terminated. Investments include loans, which are secured with blank bills of exchange and other movable and immovable property.

(in EUR)	Luka Koper, d. d.		Luka Koper Group
	30 Jun 2023	31 Dec 2022	30 Jun 2023	31 Dec 2022
Non-current loans	0	0	0	5,557
Non-current operating liabilities	39,991	39,991	37,156	39,991
Current loans and deposits	85,000,872	1,717	90,000,872	1,717
Current trade receivables	55,846,961	52,037,995	56,182,305	52,404,304
Other current receivables	4,908,474	3,764,115	5,197,382	3,946,631
Cash and cash equivalents	68,376,349	69,095,661	89,502,558	94,749,216
Total	214,172,647	124,939,479	240,920,273	151,147,416

As resulting from the structure of maturity trade receivables as at 30 June 2023 in comparison with the structure as at 31 December 2022 (on page 56) the Company/ the Group did not detected the deterioration of the customers payment discipline.

6. Management of risk relating to adequate capital structure

Luka Koper, d.d./Group set itself the goal of an optimal capital structure of the share of debt sources in liabilities under 55 percent.

	Luka Koper, d. d.				Luka Koper Group
(in EUR)	30 Jun 2023		31 Dec 2022		30 Jun 2023		31 Dec 2022
	in EUR	share (in %)	in EUR	share (in %)	in EUR	share (in %)	in EUR	share (in %)
Equity	485,185,139	63.0%	480,225,780	72.5%	521,095,244	64.4%	515,732,169	73.6%
Non-current liabilities	154,432,545	20.0%	107,788,799	16.3%	156,237,456	19.3%	109,603,310	15.6%
Current liabilities	130,698,563	17.0%	74,666,277	11.3%	131,626,574	16.3%	75,818,749	10.8%
Total liabilities	770,316,247	100.0%	662,680,856	100.0%	808,959,274	100.0%	701,154,228	100.0%

Relevant post-balance events

− Luka Koper, d.d. received the judgement of the Koper Higher Court (CPG 50/2023) of 6 July 2023, by which the High Court dismissed the appeals of the Applicant and of all the defendants against the judgement passed by the Koper District Court (I Pg 265/2021 of 28 September 2022). The High Court thus upheld the judgement of the Court of First Instance regarding the liability for damages of the former members of the Supervisory Board in the case concerning the purchase of a 10 % shareholding in the logistics holding company Trade Trans Invest (TTI) for an amount of EUR 16.387.100, plus interest.The judgement is final.
− On 19 July Koper was hit by a storm, during which the mooring ropes on the container ship have been thorn which resulted in towards the southern side of the basin I. The tugs of the company Adria-Tow were involved in the rescue, they tugged the boat and tied her up at the container terminal quayside. Strong wind and rain caused a few other damaging events in the port. No injuries were reported during the storm and damage assessment is still ongoing. The damage to two container cranes has not been repaired yet, so they are not in use, which results in longer stay of ships in the port.

AI Terminal

Luka Koper

1984_rns_2023-08-25_1cfb6a49-5f8b-4778-9060-4e9e509c0d45.pdf

NON-AUDITED REPORT OF THE LUKA KOPER GROUP AND LUKA KOPER, D. D., JANUARY – JUNE 2023

1 Introduction

1.1 Introductory note

-

2 Performance hiughlights of the Luka Koper in January - June 2023

NET REVENUE FROM SALE 158.9 million EUR

EARNINGS BEFORE INTEREST AND TAXES (EBIT) 37.6 million EUR

RETURN ON SALES (ROS) 23.7 %

MARITIME THROUGHPUT

CONTAINER THROUGHPUT

CAR THROUGHPUT

EARNINGS BEFORE INTEREST AND TAXES, DEPRECIATION AND AMORTISATION (EBITDA) 53.8 million EUR

EBITDA margin 33.9 %

NET PROFIT OR LOSS 32 million EUR

RETURN ON EQUITY (ROE)

INVESTMENT EXPENDITURE 19.3 million EUR

NET FINANCIAL DEBT / EBITDA 0.6

Alternative performance measures

Key performance indicators

3 Presentation of the Luka Koper Group

3.1 Profile of the company Luka Luka Koper, d. d., as of Avgust 16, 2023

3.1 Luka Koper Group structure and associated companies

Luka Koper Group as at 30 June 2023

Associated companies

3.1 Corporate Management Board and Governance

3.1.1 Uprava družbe Luka Koper, d. d.

Changes in the composition of the Management Board

3.1.2 Luka Koper, d. d., Supervisory Board

Representatives of Shareholders:

Representatives of the Employees:

External Member of the Audit Committee of the Supervisory Board:

3.1 Business development strategy

MISSION

VISION

VALUES

The company has set the following objectives until 2025:

4 Business report

4.1 Performance of the Luka Koper Group in January - June 2023

Maritime throughput in tons per cargo groups in January – June 2023 in comparison with 2022

Containers (TEU) and cars (in units) throughput in January – June 2023 in comparison with 2022

Structure of the maritime throughput by cargo groupes (in tons)

4.1.1 Financial analysis of the performance of the Luka Koper Group

Share of operating expenses within net revenue from sale

Assets structure

Structure of liabilities

4.1.2 Comparison of the results achieved by the Luka Koper Group, achieved in January - June 2023, in relation to the plan

4.1.3 Investments in non-financial assets

Investments in the property, plant and equipment, property investments and intangible assets of the Luka Koper Group

4.2 Significant events, news and achievements in January - June 2023

FEBRUARY

MARCH

APRIL

MAY

JUNE

4.3 Relevant post-balance events

JULY

4.1 Risk management and opportunities

4.1.1 Impact of the Russia-Ukraine conflict on the business performance of the Luka Koper Group

4.1.2 Other risks

4.2 Trading in LKPG

Ten largest shareholders in Luka Koper,d. d., as at 30 June

4.2.1 Trading in LKPG

Changes in the daily LKPG share and daily turnover in January – June 2023

Relevant data on LKPG

4.2.2 Number of LKPG shares by the Supervisory Board and Management Board Members

4.2.3 Treasury shares, authorised capital, conditional capital increase

4.2.4 Rules on restrictions and disclosure on trading with company's shares and shares of related parties

4.3 Sustainable development

Highlights of January - June 2023

4.3.1 Care for employees

Number of employees in the Luka Koper Group

Number of Agency workers

Comparison between recruitment, termination and turnover rate

Annual target 2023 1– 6 2023 1– 6 2022 Index 2023/2022 Luka Koper, d. d. 18 10.1 9.9 102 Luka Koper Group / 9.3 9.1 102

Number of hours of training / employee

4.3.2 Occupational health and safety

Number of injuries at work/million hours worked

Annual target ²⁰²³ ¹– ⁶ ²⁰²³ ¹– ⁶ ²⁰²² Index 2023/2022 Luka Koper, d. d. 18 10.1 9.9 102 Luka Koper Group / 9.3 9.1 102

Quantity of health hazardous dust particles PM10 (in μg/m³ )

Average value of dust deposits (in mg/m²day)

Specific consumption of energy and water per handled ton of the total throughput ¹⁸