MPC Container Ships ASA

MPC Container Ships ASA Annual and sustainability report 2024 Year in Review 3 Highlights 4 Key Figures 5 CEO Letter 7 Shareholder Information 9 About MPCC 11 Our Values 14 Fleet Overview 15 Container Market Update 18 From the Boardroom 23 Board of Directors 24 Executive Management 25 Board of Directors’ Report 26 Corporate Governance Report 36 Remuneration Report 43 Contents Financials 48 Consolidated Financial Statements 49 Parent Financial Statements 83 Responsibility Statement 94 Auditor’s Report 95 Alternative Performance Measures 97 Sustainability Statement 99 Operational Highlights 2024 100 CEO Letter 101 Sustainability Report 103 General Information 103 Environmental Information 138 Social Information 167 Governance Information 188 Green and Sustainable Finance 198 Annual and Sustainability Report 2024 2 YEAR IN REVIEW Highlights 4 Key Figures 5 CEO Letter 7 Shareholder Information 9 Annual and Sustainability Report 2024 3 Year in Review Year in Review Highlights Q1 Q2 Q3 Q4 Delivered and completed the sale of AS Petra, AS Paulina and AS Pauline Entered into an agreement to sell AS Clarita Entered into a joint venture with Unifeeder to build a 1,300 TEU dual-fuel methanol newbuilding Continuation of extensive retrofit program, including joint investments with charter customers The first 5,500 TEU eco-design newbuilding, Mackenzie, was delivered Acquired two 3,500 TEU vessels, AS Nara and ASA Nuria AS Nadia and AS Ragna was delivered to new owners Entered into a ECA covered Green term loan facility for two dual-fuel methanol newbuildings Entered into a charter agreement package for 10 vessels Completed take-over of both 5,500 TEU eco-design vessels from the newbuilding program with delivery of the last vessel, Colorado Delivered AS Clarita and AS Fatima to new owners Completed take-over of AS Nara and AS Nuria Acquired and took delivery of four 3,800 TEU wide beam, eco-vessels Completed issuance of a USD 125 million senior unsecured sustainability-linked bond Continuous fleet renewal and optimization Annual and Sustainability Report 2024 4 4 Year in Review Year in Review | Highlights Year in Review | Highlights Key Figures Key figures 2024 2023 2022 Number of container vessels‌ 1 59 59 62 Transport capacity of container ship fleet TEU 140,894 126,943 134,270 Operating revenues USD m 540.9 711.3 616.8 EBITDA ² USD m 348.7 518.4 522.2 Adjusted EBITDA‌ 2 USD m 325.1 428.5 451.5 Profit for the period USD m 266.7 325.1 435.0 Adjusted profit for the period‌ 2 USD m 243.1 336.7 364.3 Cash flow from operating activities USD m 323.9 484.6 436.5 Interest-bearing debt USD m 343.3 126.5 153.6 Total equity USD m 817.6 753.5 721.4 Earnings Per Share (EPS) USD 0.60 0.73 0.98 Adjusted EPS‌ 2 USD 0.55 0.76 0.82 Dividends Per Share (DPS)‌ 3 USD 0.42 0.64 1.03 Total ownership days days 20,886 22,236 21,671 Total trading days days 19,758 21,553 20,590 Utilization 97.8% 98.1% 97.9% Average TCE² per day 26,441 28,816 28,625 Average Opex² per day 7,247 6,887 6,363 Leverage ratio² 27.9% 13.3% 16.1% 1 Numbers of vessels includes vessels from investment from joint-venture 2 See Alternative Performance Measures for further details 3 DPS is the declared recurring dividend per share and the event-driven dividend per share declared for the period Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 5 5 Year in Review Year in Review | Key Figures Year in Review | Key Figures Financial and Operational Sustainability Dividends Per Share Well-to-Wake GHG emissions intensity Leverage Ratio Gender Diversity Operating revenues Sulphur Oxide Emissions EBITDA Lost Time Incident Rate (LTIR) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 6 6 Year in Review Year in Review | Key Figures Year in Review | Key Figures CEO Letter As we entered 2024, we faced a dynamic market affected by continued geopolitical change, and an environment offering significant opportunities and challenges. Throughout the year we continued to report strong operational performance, demonstrated our ability to create, identify and capitalize on arising opportunities while maintaining our financial strength and flexibility. Our ability to optimize the fleet, transition towards low-emission vessels and capitalize on the increasing demand in the market, led us to delivering results above our initial guidance. Continued value creation through strategic utilization of favorable market conditions Throughout the year, the Red Sea crisis became a major disruption in the shipping industry. The market for container shipping experienced increased freight rates driven by the rerouting of vessels around Cape of Good Hope, higher-than-expected demand, and persistent vulnerabilities in global supply chains. Our ability to actively manage our fleet while capitalizing on the favorable market conditions and limited tonnage capacity, have led to a solid backlog throughout the year. Consequently, we have created significant value and a high earnings visibility, allowing us to enter 2025 with a solid fundament for continued value creation. We are pleased to have been able to deliver a year of both high investment activity as well as high shareholder values. We exit the year with a robust capital base, enhanced balance sheet flexibility, and low leverage. We are proud to have demonstrated our strong ability to raise capital in different forms during the year. A key highlight in our financial performance, is our commitment to shareholder value. For FY 2024, we will in total distribute approximately USD 186 million in dividends. Our backlog of USD 1.1 billion remains robust, and with contract coverage of 92% and 64% of open days in 2025 and 2026, respectively, we enter 2025 with good confidence. Constantin Baack CEO Moritz Fuhrmann Co-CEO and CFO Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 7 7 Year in Review Year in Review | CEO Letter Year in Review | CEO Letter Advancing operational sustainability and efficiency During the year, we have continued to execute on our fleet renewal strategy and have near completed our USD 600 million investment program for fleet renewal. We welcomed 6 eco-design vessels into our fleet, as well as the first of the three dual-fuel methanol vessels in the newbuilding program that was delivered in January 2025. These vessels represent an integral part of our fleet renewal and emissions reduction strategy. In addition, we have continued to invest and progress in our retrofit program to continuously enhance our fleet and align with our commitment to sustainable shipping solutions. The shipping industry is increasingly focusing on sustainability to reduce environmental impact, comply with stricter regulations, meet customer demand for greener practices, and enhance long-term operational efficiency. Expectations in the industry are pointing to a multi-fuel future, and by incorporating environmentally sustainable technologies, we are strategically positioning MPCC to invest in and capitalize on the transition towards greener shipping practices and further enhancing long-term shareholder value. Leveraging green financing solutions In 2024 we successfully completed a USD 125 million senior unsecured sustainability-linked bond, in addition to an ECA-Covered green loan. Our commitment to ESG and sustainability is rooted in our vision for sustainable container shipping that connects global ports to meet people’s needs. To contribute to driving sustainable change in the maritime industry, we have developed comprehensive Sustainability-Linked and Green Financing Frameworks. These frameworks align with our core values of environmental responsibility and long-term resilience, aiming to reduce the carbon footprint of international shipping. By leveraging sustainable financing solutions, we support eco-friendly innovations, enhance operational efficiency, and advance fleet decarbonization, ultimately contributing to a more sustainable maritime sector. Looking ahead Looking ahead, we are confident in our ability to further drive growth and deliver value to our shareholders. We remain committed to continuously improve our operational capabilities, pursuing sustainable growth initiatives and expanding our market presence. As a cyclical industry, shipping presents challenges and opportunities; however, we have shown our ability to generate value across market cycles. By leveraging our over 90% coverage, we are well-positioned for resilience against potential market fluctuations in 2025. Additionally, we remain alert to interesting opportunities, while adhering to our ESG and sustainability principles to enhance long-term value creation. We would like to express our gratitude to our colleagues, shareholders, customers, and partners for your continued support and confidence in MPCC. And last but not least, a sincere appreciation for the continuously dedicated efforts from all the seafarers onboard our vessels that make our operations possible. Sincerely, Constantin Baack CEO MPC Container Ships ASA Moritz Fuhrmann Co-CEO and CFO MPC Container Ships ASA We are pleased to have been able to deliver a year of both high investment activity as well as high shareholder values. We exit the year with a robust capital base, enhanced balance sheet flexibility, and low leverage. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 8 8 Year in Review Year in Review | CEO Letter Year in Review | CEO Letter Shareholder Information MPC Container Ships ASA ("MPCC" or the "Company") is listed on Oslo Børs under the ticker code MPCC. As of December 31, 2024, the share capital in the company was NOK 443,700,279, divided into 443,700,279 shares, each with a nominal value of NOK 1.00. MPC Container Ships has one share class, and each share carries a right to one vote. The MPC Container Ships share price closed at NOK 20.73 at the end of 2024, corresponding to a market capitalisation of NOK 9.2bn. The return ex. dividend for 2024 was 53.56%. MPCC paid total dividends of NOK 4.92 per share in 2024, leading to a total return of 89.99% for the year. As at December 31, 2024, MPC Container Ships had 35,629 private and institutional investors from 101 different countries. Approximately 35% of shareholders are Norwegians, 18% are German, and 18% are from the US. Communicating with shareholders and capital market participants is given high priority. MPC Container Ships aims to maintain an open dialogue and ensure transparent, timely, and accurate dissemination of information to enable fair valuation of MPC Container Ships and reduce volatility in the Company’s shares. Dividends per share REPORTING PERIOD DISTRIBUTION PERIOD RECURRING DPS (NOK) Q1 2024 Q2 2024 1.37 Q2 2024 Q3 2024 1.06 Q3 2024 Q4 2024 1.11 Q4 2024 Q1 2025 0.95 Total 4.49 Share Price Development 2024 Analyst Coverage Fearnley Securities Nils Olav Furre Thommesen n.thommesen @fearnleys .com +47 22 93 63 99 DNB Markets Jørgen Lian jorgen.lian@dn b.no +47 24 16 91 88 Arctic Securities Kristoffer Barth Skeie kristoffer.skeie@arctic .com +47 21 01 30 27 Clarksons Securities Frode Mørkedal frode.morkedal@clarksons .com +47 22 01 63 27 Pareto Securities August Klemp august.klemp@paretosec .com +47 22 87 87 68 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 9 9 Year in Review Year in Review | Shareholder Information Year in Review | Shareholder Information All information that is considered to be price sensitive is published via press releases and stock exchange announcements on Oslo Børs and the Company’s website. All investor relations activities are conducted in compliance with relevant rules, regulations and recommended practices. Quarterly earnings calls and other capital market updates are published live with representatives from executive management and is open to all. MPC Container Ships ASA is organized under the laws of the Kingdom of Norway. Shares registered with a nominee account must be re-registered in the Norwegian Central Securities Depositary, Euronext Securities Oslo (formerly VPS), before the Annual General Meeting in order to obtain voting rights. Geographical Shareholder Distribution Financial Calendar 2025 May 8, 2025: Annual General Meeting May 26, 2025: Financial Report Q1 2025 Aug. 26, 2025: Financial Report Half-Year 2025 Nov. 27, 2025: Financial Report Q3 2025 Feb. 24, 2026: Financial Report Q4 2025 Ten largest shareholders as of December 31, 2024 Name Shares Ownership % MPC CSI GmbH 73,994,977 16.7% Avanza Bank AB 16,769,060 3.8% CLEARSTREAM BANKING S.A. 16,663,681 3.8% FOLKETRYGDFONDET 15,618,316 3.5% State Street Bank and Trust Comp 14,383,924 3.2% JPMorgan Chase Bank, N.A., London 8,237,734 1.9% State Street Bank and Trust Comp 7,635,795 1.7% The Bank of New York Mellon 7,445,611 1.7% Nordnet Bank AB 7,112,914 1.6% The Bank of New York Mellon SA/NV 7,045,603 1.6% Ten largest shareholders 174,907,615 39.4% Other shareholders 268,792,664 60.6% Total 443,700,279 100.0% Shareholder Distribution No. of Shares No of shareholders Distribution of shareholders % of share capital 1–100 11,264 31.6% 0.1% 101–1,000 12,567 35.3% 1.3% 1,001–10,000 9,052 25.4% 6.5% 10,001–100,000 2,402 6.7% 13.5% 100,001–1,000,000 291 0.8% 18.3% Above 1,000,000 53 0.1% 60.4% Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 10 10 Year in Review Year in Review | Shareholder Information Year in Review | Shareholder Information About MPCC MPC Container Ships ASA is a prominent player in the global container shipping industry and has a rich history with extensive shipping experience rooted in its founding shareholder and sponsor, MPC Münchmeyer Petersen Capital AG (MPC Capital). Since its inception in April 2017, MPC Container Ships has undergone rapid growth to become one of the world’s leading container tonnage providers. The company has been listed on the main list of the Oslo Stock Exchange since May 2018 under the ticker symbol “MPCC.” Our Values 14 Fleet Overview 15 Container Market Update 18 Annual and Sustainability Report 2024 11 About MPCC About MPCC MPC Container Ships employs a diverse team of approximately 40 on-shore industry professionals covering all critical functions essential to our operations. There are also around 1,400 seafarers serving aboard our vessels, who make our operations possible enabling the seamless transportation of goods across the globe. While we sub-contract commercial and technical ship management and crewing services to third-party providers, we maintain rigorous oversight and accountability for their performance, ensuring quality and efficiency in our services. Our operations extend across three key locations: Oslo, Norway; Hamburg, Germany; and Rhoon, The Netherlands. These strategically positioned offices support our commitment to delivering exceptional services to our global clientele. MPC Container Ships’ vessels are chartered out on fixed-rate contracts with a specific focus on intra-regional trade lanes. Intra-regional services play a pivotal role in connecting major ports on intercontinental shipping lanes with smaller, regional ports. Our vessels are chartered to global liner shipping companies and regional carriers. Sustainable container shipping connecting the world’s ports to serve people’s needs . Annual and Sustainability Report 2024 12 12 About MPCC About MPCC About MPCC Guided by our values and our purpose to pursue conscious change in the container shipping industry, our mission is to seize opportunities to create long-term value and propel change in the maritime industry with our own capital, new ideas, analytical skills, and a broad network. Clear and Transparent Strategy for Sustainable Value Creation MPC Container Ships takes a modern approach to container shipping, centered around a commitment to transparency in communications, a strong dedication to sustainable practices and ESG principles, and rational capital allocation principles. Additionally, with significant experience and expertise in vessel management we are a strong industry partner. Our capital allocation principles are clear and rational, geared towards maximizing shareholder returns while managing risks. These principles guide our decisions in strategic investments, adopting a selective approach to ensure they align with our long-term vision, ESG commitments, and shareholder value. We are committed to continuous portfolio optimization, underscored by our fleet renewal strategy and sustainability initiatives. Moreover, our robust balance sheet enables us to weather industry fluctuations and invest in the future. Our business philosophy embraces market consolidation, differentiating us from small owner-operators in the industry, and we prioritize building and maintaining a high-quality customer base, emphasizing investment-grade partnerships. Strong Commitment to Shareholder Value Creation As part of our objective to maximize shareholder returns, we maintain a commitment to distributing quarterly recurring dividends equal to 75% of the adjusted profit for the period, declared at the discretion of the Board. You can find further information on our listing, dividends, and other capital market-related details in the Shareholder Information section of this report. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 13 13 About MPCC About MPCC About MPCC Our Values DETERMINED Our determination arises from our passion and commitment for what we do. We develop new and innovative ideas and are always ready to break new ground to achieve our goals. We take ownership of our tasks and we do not give up. We grow with new challenges, assume responsibility, and have the courage to make decisions. We accept failures and use the knowledge gained for continuous improvement. MINDFUL Mindful stands for respectful and conscious actions. We act with respect for the world we are living in, carefully selecting projects and partners. We place sustainability at the core of our business decisions, while consciously dealing with and actively managing risk. We are considerate, we make time for and treat each other and our partners with mutual respect and appreciation. For us, trust and transparency are vital factors for a successful internal and external cooperation. ENTHUSIASTIC Enthusiasm for us means inspiration and motivation. We inspire each other and our partners to take on challenging topics and projects. Approaching every task with drive and optimism creates a unique spirit that leads us to success. We firmly believe enjoying what we do is the key to job satisfaction. Annual and Sustainability Report 2024 14 14 About MPCC About MPCC | Our Values About MPCC | Our Values Fleet overview MPCC Fleet Employment in 2024 No. of vessels: 59 Total Carrying Capacity: 140,894 TEU No. of Port Calls: 4,848 Distance Travelled: +4,063,000 nm The MPCC fleet has traveled around the equator more than 188 times, with more than 13 port calls per day. Europe 6 Latin America and Caribs 15 Med and North Africa 8 Intra-Asia 15 Oceania 2 ME & SEA 11 West Africa 2 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 15 15 About MPCC About MPCC | Fleet Overview About MPCC | Fleet Overview Fleet KPIs Conventional Vessels Vessels built before 2012, usually optimized for higher speeds. ECO Vessels Vessels usually built after 2012, optimized for lower speeds and fuel consumption. Retrofit Vessels‌ 1 Vessels optimized by adding new equipment or changes to the hull and propeller to improve efficiency. Dual-Fuel Methanol Vessels Three dual-fuel methanol vessels under construction with delivery in 2025 and 2026. Average Building Year: 1–2k TEU 2–3k TEU >3k TEU 2008 2006 2010 Average Building Year: 1–2k TEU 2–3k TEU >3k TEU 2019 2016 2019 1 Retrofit vessels includes 15 vessels on which a Retrofit of Bulbous Bow and/or Pre-Swirl Device and/or New Propeller and/or Boss Cap Fin have been conducted. Out of the 15 vessels, four vessels are also Eco Designs. Nine vessels have small measures conducted, such as Silicon Paint. Average Building Year: 1–2k TEU 2–3k TEU >3k TEU 2012 2006 2011 Average Building Year: 1–2k TEU 2–3k TEU >3k TEU 2025 No. of vessels: No. of vessels: No. of vessels: No. of vessels: 11 3 37 24 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 16 16 About MPCC About MPCC | Fleet Overview About MPCC | Fleet Overview Newbuilds Greenbox These innovative TEU 1,300 feeder vessels demarcate the second step of MPC Container Ships decarbonization strategy with a design-based efficiency yield of more than 30%. The first vessel was delivered in Q1 2025, and the second is expected to be delivered during Q2 2025. Both vessels will be able to operate on “green” methanol from day one, featuring an energy storage system (battery) as well as shore power connectors. Equipped with an ice class hull, the feeders will be deployed on trades along the Norwegian west coast where they can unfold emission reductions of up to 95% compared to conventional ships. The project was developed with support from the Norwegian ENOVA as well as the NO ‌ x Fund, awarding grants to first-movers willing to explore next generation technology in pursuing ambitious decarbonization goals. Ecobox With two TEU 5,500 vessels – delivered in Q2 and Q3 2024 – MPC Container Ships added eco-design vessels to the fleet which emit approximately 20% less greenhouse gases compared to conventional designs if operated on the same fuel. Additionally, the design allows for a cost-efficient conversion to operations on methanol in future, in which case emission reductions of more than 90% would be in reach (if operated on “green” methanol). Unibox At the beginning of 2024 MPCC partnered with Unifeeder in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding. Scheduled for delivery in Q4 2026, this vessel will be under a 7-year time-charter agreement with Unifeeder. With Ice Class 1A notation it is perfectly equipped for Baltic trades and will be deployed in the European network of Unifeeder, where the new vessel will give a significant contribution to lower the emissions. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 17 17 About MPCC About MPCC | Fleet Overview About MPCC | Fleet Overview Container Market Update Throughout 2024, the market was shaped by the ongoing Red Sea crisis, with tariff threats adding to uncertainty November 2024 marked one year of the Red Sea crisis. Over the course of the year, the Houthis consistently targeted international merchant ships and military vessels in the region. As of the time of writing, carriers are still rerouting around the Cape of Good Hope and alliances published two versions for their 2025 networks – one including the Suez Canal and one including the Cape of Good Hope detour. The Red Sea crisis increased global TEU-mile demand by an estimated 10%-12% in 2024 due to the continuous rerouting of vessels around the Cape of Good Hope and underlying TEU demand grew by another ~5% in 2024. Hence, effective demand grew by a strong ~17% compared to 2023. The supply side grew by 10% in 2024 due to record newbuild deliveries. The resulting balance was in favor of the shipowners and exacerbated further by port congestion. Ultimately, container shipping markets remained elevated in light of these developments and a substantial amount of the earnings generated has been reinvested in newbuilds, with contracting in 2024 being the second strongest year ever.‌ 1 A ceasefire agreement was in place between Israel and Hamas in Gaza in the period from 19 January to 18 March 2025, that raised the prospect of a return to the Red Sea for liner shipping companies. Nevertheless, the situation is proven to be very unstable. At the time of writing, there is no immediate, full or partial return to the Suez route foreseeable by liner operators as the security situation in the Red Sea remains uncertain. Statements from Houthis about halting attacks on non-Israeli ships do not constitute a guarantee for the safe passage of international merchant shipping. Recently, the Houthis have even threatened to attack merchant ships again if Israel continues to block humanitarian aid to Gaza. The time between the decision of the presidential election at the beginning of November 2024 and the second inauguration of Donald Trump as the 47 th president of the United States in January 2025, was characterized by fears about additional tariffs and other trade interventions. It would be accurate to describe the current trade conflict between the United States and China, Mexico, Canada and even the European Union as volatile. In previous reports we have already stated that it remains to be seen if all announced tariffs will actually be implemented or if President Trump simply aims for short- term negotiation wins from trading partners who stand to lose more than the U.S. or who simply cannot afford the losses resulting from an escalating conflict. The unpredictability of the US president’s actions makes it difficult for analysts to forecast the growth in trade. It remains unclear, if, when and to which extend tariffs will be applied and what the global impact could be. The current measures against China are expected 1 Clarksons Research, Shipping Intelligence Network, January 2025. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 18 18 About MPCC About MPCC | Container Market Update About MPCC | Container Market Update to have less direct impact than back in 2019 during the first trade war. For reference, the 2018-19 U.S.-China ”trade war” was estimated to have reduced container TEU-mile demand by only a manageable ~0.5%.‌ 2 At the turn of the year, the cargo frontloading rush continued. U.S. containerized import volumes were at a solid 2.4m TEU in December 2024 and even increased to 2.5m TEU in January 2025. That was primarily driven by US importers’ fear of increased tariffs and potential port strikes.‌ 3 The global economy has shown resilience over the past years with stabilizing inflation rates and interest rate cuts in many economies. Nonetheless, the global economic outlook for 2025 and 2026 remains below the historical 2000-19 long-term average. The IMF and OECD both forecast global growth at 3.3% in 2025 and 2026 respectively.‌ 4, ‌ 5 Uncertainties about increasing protectionism are set to weigh on the global trade outlook. For this reason, the IMF revised its world trade growth estimates down slightly for 2025 and 2026. The OECD states that geopolitical tensions risk disrupting supply chains and energy markets. Spot freight rates are falling but are still above levels before the Red Sea crisis Figure 1 illustrates that freight rates peaked in July 2024 with the Shanghai Containerized Freight Index (SCFI) recording 3,734 points.‌ 6 Afterwards they declined by approximately 30% until the end of 2024. Nonetheless, freight rate levels at the end of 2024 were still almost twice as high as seen at the beginning of December 2023, right before the rerouting around the Cape of Good Hope started. Freight rates showed diverging trends through October and into November on different trades. Whereas freight rates on the Transpacific weakened, freight rates on the Asia-Europe trade held firm owing to carriers’ general rate increases (GRIs) based on strong pre-Lunar New Year volumes. Over the course of December, Transpacific freight rates to both coasts caught up, primarily due to the ongoing ILA and USMX labor disputes as well as political tariff threats during this period, which prompted shippers to frontload cargos. Since the beginning of 2025, freight rates have shown a seasonal downward trend shortly before Chinese New Year at the end of January that holds up as of the time of writing. 2 Clarksons Research, US Policy: Maritime Impact Assessment (Update No.4), February 2025. 3 Descartes, January 2025. International Monetary Fund, World Economic Outlook, January 2025. 4 International Monetary Fund, World Economic Outlook, January 2025 5 OECD, Economic Outlook, Volume 2024 Issue 2, December 2024. 6 Clarksons Research, Shipping Intelligence Network, January 2025. Fig. 1: Shanghai Containerized Freight Index (SCFI) Comprehensive Index Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 19 19 About MPCC About MPCC | Container Market Update About MPCC | Container Market Update Charter market strengthened unexpectedly going into 2024 on the back of Red Sea rerouting The charter market strengthened throughout 2024 with a significant increase in the rate levels in the second quarter of 2024. Fixture terms then settled again in most segments and the second half of the year was quieter than the first. The combination of low vessel availability and positive sentiment supported strong charter rates and kept the idle fleet at a minimum. The Harper Petersen Charter Rates Index (HARPEX) moved from 853 points in January 2024 to 2,049 points at the end of the year, as shown in figure 2.‌ 7 The container charter market strengthened across all segments throughout the first quarter of 2024. As demand picked up in all trading areas, many vessels were employed for continuously stronger fixture terms. At first, only the rates increased as charterers were hesitant to commit to longer periods. The container charter market kept improving in the second quarter of 2024. There was persistent demand for tonnage across all sizes, leading to an improvement of fixture terms. All vessels above 2,000 TEU were able to find employment for 24 months, as long as owners chose to do so. Some were looking for shorter durations in order to benefit from the large premiums being paid for these types of employment. There was less activity in the charter market during the third quarter of 2024, compared to the previous quarters. July was, as expected, slow due to summer holidays while the number of reported fixtures slightly increased in August. Rate levels also moved mostly sideways in September. The last quarter of 2024 started off slowly with the Golden Week festivities in Asia. After that, momentum picked up again, as usual. November was rather uneventful and toward the end of the year, the Christmas holiday season kept a lid on activity. The main reason for the fewer fixtures observed was the continued lack of available tonnage, especially in the larger container vessel sizes. Above 3,000 TEU, tonnage lists remained short. All throughout 2024, there were hardly any vessels coming open even when looking several months ahead. As a result, carriers had to secure ships in advance, sometimes chartering them out of mid-2025 positions already. Above 4,000 TEU, vessels were able to secure three-year employments, while 3,000 TEU designs achieved periods between two and three years. Between 2,000 TEU and 3,000 TEU, ships managed to fix for two years, and even smaller vessels than that were able to secure two-year periods. However, that was mostly the case for modern eco tonnage, which was able to fix at stronger terms compared to “standard” 1,700 TEU designs. Vessels able to trade into the Red Sea gained a strong premium, but most of the interests behind these ships are either from the Middle East or China. The largest change was observed in the 4,250 TEU size, otherwise also called the Panamax segment. The limited supply of vessels and correspondingly low number of fixtures drove up rates the most in this size segment. Vessels were able to secure rates in the mid to high USD 30k range for three-year periods. At the end of 2024, most liner operators were planning for a Red Sea circumnavigation for most, if not all, of 2025. Analysts and carriers alike had plans for both scenarios at hand but were expecting the Cape of Good Hope to be the base case going into 2025. Recent 7 Harper Petersen, January 2025. Fig. 2: HARPEX – Time-Charter Rate Development, 6–12 Months Fig. 3: Idle Statistics Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 20 20 About MPCC About MPCC | Container Market Update About MPCC | Container Market Update statements by President Donald Trump about a Gaza takeover make a return to the Red Sea even more difficult to predict. As displayed in figure 3, the idle fleet has remained very low throughout the whole of 2024. The number of unemployed vessels was for the most part below 1%, with most of the inactive vessels being carrier-owned ships. The small share of the idle NOO vessels was concentrated in the sizes below 3,000 TEU. In a backwards- looking perspective, the container fleet can be considered “fully employed” as there will always be some vessels that are not in service for various reasons.‌ 8 Currently, many vessels are still being secured at strong rates. However, recent forward fixing deals have shown that some of the main liner operators are becoming somewhat more hesitant when it comes to contracting vessels for multi-year deals. Prompt vessels, demanding for longer periods, are still able to fix them. Newbuild contracting activity in 2024 almost as high as in the last record ordering year 2021 With 4.4m TEU ordered in 2024, newbuild contracting has almost reached the previous all-time high of 4.5m TEU achieved in 2021. While the orderbook-to-fleet ratio started off in 2024 at 24.6%, it steadily decreased until June. At that point, carriers and NOOs started committing to large en-bloc orders. Thus, as displayed in figure 4, the current orderbook stands at 8.5m TEU, bringing the orderbook-to-fleet ratio back to 27%. Newbuild deliveries in 2024 reached 2.9m TEU and demolitions only accounted for 83k TEU. Hence, the containership fleet grew by 10% year-on-year to reach 30.8m TEU at the end of 2024.‌ 9 Due to the increased TEU-mile demand in 2024, the newbuild deliveries were absorbed by the market. For example, on the Far East – Europe trade alone, the deployed capacity in 2024 increased by 28% compared to the previous year.‌ 10 Without the additional deployment created by the Suez rerouting, supply side pressure would have prevailed in 2024. The newbuilding activity is also impacting the environmental profile, with 43% of all container vessels ordered set to be built with a DF-LNG engine. Another 24% will have methanol DF engines.‌ 11 8 Alphaliner, Weekly Container Shipping Newsletters, January 2025. 9 Clarksons Research, Shipping Intelligence Network, January 2025. 10 Alphaliner, Monthly Monitor, January 2025. 11 Clarksons Research, Shipping Intelligence Network, January 2025. Fig. 4: Orderbook Development Fig. 5: Orderbook Across Size Segments Compared to Fleet Age Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 21 21 About MPCC About MPCC | Container Market Update About MPCC | Container Market Update As shown in figure 5, the orderbook is still focused on the larger size segments. In the fourth quarter of 2024, 101 vessels were ordered. 85 of those vessels featured capacities for more than 8,000 TEU. The smaller and relatively older segments below 8,000 TEU continue to show limited contracting.‌ 12 A return to the Suez route would drastically change the market balance Figure 6 shows that TEU trade grew by 5–6% in 2024. In contrast, net fleet growth (accounting for deliveries and demolitions) amounted to 10.5%.‌ 13 The increased transport distances lifted this trade demand by another 12%‌ 14 and are vital to understand why the 2024 market balance was so favorable for shipowners despite the strong fleet growth. The container trade demand is forecast to grow at a rate of 3–4% in 2025, while containership supply is projected to grow at around 6%.‌ 15 The events surrounding the Red Sea remain the key aspect for the development of freight and charter markets in 2025, even outweighing the potential fallout resulting from escalating trade conflicts. A looming Red Sea reopening has the potential to increase volatility in the market. If carriers chose to return to the Red Sea during 2025, this would likely release maritime held inventories, induce short-term port congestion and trigger a prolonged liner shipping downturn as record deliveries have hit the waters in 2023 and 2024 already, with 2025 in line for another year of record containership newbuilding deliveries. When the Red Sea will be permanently available again, the gap between supply and demand will widen, likely bringing about the liner shipping market downturn that was expected for 2024 already. Should the Red Sea remain closed during 2025 we still expect an overall easing of the market balance, as supply growth is set to overtake demand growth. Fig. 6: Fundamental Supply / Demand Balance – Accounting for Cancellations, Slippage, Deliveries, and Demolitions 12 Ibid. 13 Maritime International Strategies, January 2025. 14 Clarksons Research, Shipping Intelligence Network, January 2025. 15 Maritime International Strategies, January 2025. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 22 22 About MPCC About MPCC | Container Market Update About MPCC | Container Market Update From the Boardroom Board of Directors 24 Executive Management 25 Board of Directors’ Report 26 Corporate Governance Report 36 Remuneration Report 43 Annual and Sustainability Report 2024 23 From the Boardroom From the Boardroom Board of Directors Ulf Holländer (1958) Ellen Hanetho (1964) Pia Meling (1975) Peter Frederiksen (1963) Petros Panagiotidis (1990) Chairman Board Member Board Member Board Member Board Member About Ulf Holländer joined MPC Münchmeyer Petersen Capital AG in 2000 where he held the position of CFO until appointed CEO in 2015. He started his career as an audit assistant and auditor at Dr. W Schlage & Co Wirtschaftsprüfungs und Steuerberatungsgesellschaft in Hamburg. He since worked at the shipping group Hamburg Süd and affiliated companies in the U.S. and Australia in various positions, including Financial Controller, Commercial Director, and Head of Finance and Accounting. Mr. Holländer has a Commerce degree from the University of Hamburg. Ellen Hanetho started her career in the Investment Banking Division of Goldman Sachs International Ltd in London and New York (1997–2002). Subsequently, she was investment manager and partner at Credo Partners AS (2003–2012) and then CEO of Frigaard Invest AS (2013–2019). At present, she is an independent investor and business developer, and holds several board positions. Mrs. Hanetho hold a BSBA in Business Administration from Boston University and an MBA from Solvay Business School. Pia Meling has significant financial, ESG, and managerial experience within the shipping and maritime sectors. Her experience includes senior positions with Klaveness Group, Clean Marine AS, Wilhelmsen Ships Service, Massterly AS and Grieg Green AS. Mrs. Meling is currently the Managing Director of EVIGO at OSM Thome. She serves on the Board of Directors of software providers Miros Mocean AS and Grieg Connect AS as well as GC Rieber Shipping. Mrs. Meling holds an MBA from the Norwegian School of Economics. Peter Frederiksen held management and board positions at Hamburg Süd for 9 years and at Maersk Line for 25 years. He has extensive experience in the shipping industry and currently serves on the board of several shipping and maritime companies, including Uni-Tankers A/S and Bunker Holding A/S. Mr. Frederiksen’s education includes A.P. Møller Maersk Shipping Education and executive Development Programs at INSEAD and Cornell Johnson Graduate School of Management. Petros Panagiotidis is the founder of Castor Maritime Inc., where he has served as Chairman, CEO and CFO since its foundation in 2017, playing a key role in the successful listing of the company on the NASDAQ Capital Market in 2019. He also serves as the Chairman and CEO of Toro Corp., the spin-off of Castor Maritime Inc.’s tanker fleet. In 2023, Mr. Panagiotidis received the Lloyd’s List Next Generation Shipping Award in recognition for his achievements within the maritime sector. Mr. Panagiotidis holds a Bachelor’s degree in International Studies and Mathematics from Fordham University and a Master’s degree in Management and Systems from New York University. Term of office First elected in 2017. Re-elected in April 2024 for a period of two years. First elected in 2018. Re-elected in April 2024 for a period of two years. First elected in December 2022. Re-elected in April 2024 for a period of two years. First elected in February 2022. Re-elected in April 2024 for a period of two years. First elected in December 2024 Independent No Yes Yes Yes No Committee Memberships Chair of the Remuneration Committee, Member of the Risk, Audit and Sustainability Committee. Chair of the Risk, Audit and Sustainability Committee, Member of the Remuneration Committee. Member of the Risk, Audit and Sustainability Committee. Member of the Remuneration Committee. Shareholding 0 shares‌ 1 60,000 shares‌ 1 0 shares‌ 1 200,000 shares‌ 1 0 shares‌ 1 Board Meetings Attended in 2024 6/6 6/6 6/6 6/6 0/6 1 As of December 31, 2024, see Note 8.2 Related Parties and Key Management Compensation for further details Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 24 24 From the Boardroom From the Boardroom | Board of Directors From the Boardroom | Board of Directors Executive Management Constantin Baack Moritz Fuhrmann Christian Rychly Pål Sætre Chief Executive Officer Co-Chief Executive Officer & Chief Financial Officer Chief Operating Officer EVP General Manager Norway About Constantin Baack has served as CEO of MPC Container Ships ASA since foundation of the company in April 2017. Mr. Baack has 20 years of operational, management and investment experience in shipping, corporate strategy, capital markets, finance and alternative assets. He commenced his career in the marine operations department at Hamburg Süd in Sydney before moving to Ernst & Young in Hamburg and Shanghai. In 2008, Mr. Baack joined MPC Capital in Hamburg, where he has since held various senior management positions in Germany and abroad. Mr. Baack studied in Hamburg and Sydney and holds a Graduate Diploma and a Master of Science in international business from the University of Sydney. Moritz Fuhrmann joined MPC Container Ships ASA in 2022 as CFO, and was appointed Co-CEO & CFO in April 2024. Before joining MPCC, he worked in London-based Hayfin Capital Management LLP, where he served as Principal in the maritime team. Originally from Hamburg, Mr. Fuhrmann has substantial international experience within finance and shipping. In addition to Hayfin Capital, he has held positions with companies such as DVB Bank in Germany and in the Netherlands, Credit Suisse in Germany and in the US, as well as German ship broker Andreas J. Zachariassen in Hamburg. Mr. Fuhrmann is a Member of the Institute of Chartered Shipbrokers and holds an Master of Science in Shipping, Trade & Finance from Cass Business School, London. Christian Rychly was appointed Chief Operating Officer of MPC Container Ships in 2023. Mr. Rychly has extensive shipping experience and has held the position of Head of Shipping at MPC Capital AG since 2018. Prior to joining MPC Capital, he was a Managing Director at Leonhardt and Blumberg. He is also a member of the Board of Directors at the UK Defence Club. Mr. Rychly is a Fellow of the Institute of Chartered Shipbrokers and holds an MBA from the University of Wales Pål Sætre joined MPC Container Ships ASA in June 2021. Previously, he served as CEO for the London based hedge fund platform, AK Jensen Investment Management Ltd. Mr. Sætre commenced his career as an analyst in the Norwegian Options and Clearinghouse before moving to SEB Enskilda as a Sales Trader. Thereafter he established and headed the capital markets offering for Nasdaq in Oslo, before working for two years as a Director at a HNWI company. Based in Oslo, Mr. Sætre is responsible for MPC Container Ships’ Capital Markets and Corporate Finance division. Mr. Sætre holds a Master of Arts with Honours in Business and Finance from Heriot-Watt University, Edinburgh Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 25 25 From the Boardroom From the Boardroom | Executive Management From the Boardroom | Executive Management Board of Directors’ Report Business Overview and Corporate Development MPC Container Ships ASA is a leading provider of container tonnage, focusing on small to mid-size container ships. The Company owns and operates a portfolio of vessels serving intra-regional trade lanes on fixed-rate charters. The Company is registered and has its business office in Oslo, Norway, with additional key locations in Hamburg, Germany and Rhoon, The Netherlands. The company has been listed on the main list of the Oslo Stock Exchange since May 2018 under the ticker symbol “MPCC.” The Company’s fleet strategy is aimed at supporting the long-term sustainability and robustness of its fleet operations. MPC Container Ships’ vessels are chartered out on fixed-rate contracts with a specific focus on intra-regional trade lanes. Intra-regional services play a pivotal role in connecting major ports on intercontinental shipping lanes with smaller, regional ports. The vessels are chartered to global liner shipping companies and regional carriers. Annual and Sustainability Report 2024 26 26 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report 2024 was characterized by continued geopolitical tensions and largely impacted by the Red Sea crisis becoming a major disruption in the shipping industry. The market for container shipping experienced increased freight rates driven by the rerouting of vessels around Cape of Good Hope, higher-than-expected demand, and persistent vulnerabilities in global supply chains. Despite a substantial orderbook dominating the supply side, in addition to low recycling, there has been an idle fleet of less than 1% for most of the year. This prompted an increase in forward fixing of vessels in the Feeder segment as prompt tonnage became sparse. Time charter rates and durations have remained at solid levels and the market proved strong throughout the year, providing a favorable environment for the container market and MPCC. MPCC delivered robust financial and operational performance and has throughout the year been able to actively manage the fleet, while capitalizing on the favorable market conditions and limited tonnage capacity, building up a strong backlog for its fleet. MPCC have continued to execute on its fleet renewal strategy, investing and progressing on the retrofit program and selectively executing on strategic sales and acquisitions, to continuously enhance the fleet and align with the commitment to sustainable shipping solutions. Financing and capital allocation MPCC follows a long-term strategy of prudent and rational capital allocation, with an ambition to deliver attractive shareholder value over time through value accretive operations. These principles guide our decisions in strategic investments, adopting a selective approach to ensure they align with our long-term vision and enhance shareholder value. The Board and management place emphasis on maintaining sensible capital allocation throughout cycles, balancing investments between the primary capital uses, which includes fleet optimization and renewals, balance sheet improvements, and providing attractive shareholder value. Throughout 2024, MPCC continued optimizing its debt portfolio by refinancing existing debt and leveraging green financing solutions, with the USD 125 million senior unsecured sustainability-linked bond, in addition to an ECA-Covered green loan, bringing total interest- bearing debt to USD 343.3 million as at December 31, 2024, which corresponds to a leverage ratio of 27.9%, compared with USD 126.5 million and a leverage of 13.3% at the end of 2023. The Group ended the year with 39 debt-free vessels, USD 100 million undrawn capacity under its revolving credit facility and an option of a bond tap of USD 75 million, providing substantial flexibility going forward. In January 2022, the Group introduced a new shareholder distribution policy, by which the intention is pay quarterly dividends of 75% of the profit for the period after considering CAPEX and working capital requirements, including liquidity reserves, and non-recurring items. In addition, the Company may make additional event-driven distributions based on non-recurring proceeds, such as vessel sales, at the Board’s discretion. For 2024 financial year, the Board declared total dividends amounting to approximately USD 186 million, all of which were quarterly recurring dividends. In total, MPCC has distributed dividends amounting to USD 977 million since the introduction of the distribution policy in January 2022. Environmental, Social, and Governance (ESG) topics and issues are key focus areas of MPCC’s operations and an integrated part of MPCC’s strategic objectives. We recognize that the shipping industry is responsible for a significant portion of global emissions, and we are determined to do our part to address this issue. The Group has actively prepared for implementation of the International Maritime Organization’s Carbon Intensity Indicator (CII) and the inclusion of maritime shipping in the EU’s Emission Trading System. Collaboration with like-minded partners is a key element in our ESG efforts, and together with our customers and partners we are investing in research and development and have already executed several projects to reduce emissions. These include the ordering of dual-fuel methanol vessels, the use of alternative fuels, and an extensive retrofitting program for the installation of energy- efficient technologies. We estimate that these investments will reduce significant amounts of CO 2 emissions over the lifetime of the vessels. In 2023, MPCC completed its first double materiality assessment (DMA) based on the Corporate Sustainability Reporting Directive (CSRD) principles. This supports the Company when identifying and reporting on its environmental and social impacts, as well as significant business risks and opportunities. The assessment was updated in February 2025. During the year, we also updated our greenhouse gas (GHG) emissions reduction targets for 2030 and 2050 to align with the International Maritime Organization (IMO) guidelines. For more information on our efforts related to ESG, please refer to our Sustainability Report for 2024. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 27 27 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report Fleet update As part of MPCC’s strategy for fleet renewal and optimization, the Group has executed on attractive market opportunities during the year. In 2024, the Group acquired six vessels for a total of USD 227.3 million and took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs. The vessels are equipped with the latest engine technology and advanced hull design that will emit approximately 20% less greenhouse gases compared to conventional designs if operated on the same fuel. Additionally, the design allows for a cost-efficient conversion to operations on methanol in the future, in which case emission reductions of more than 90% would be in reach. The Group also completed the sale of eight vessels, of which three vessels were classified as vessels held for sale in 2023. For further details please refer to Note 5.1 Vessels and Newbuildings in the Notes to the Consolidated Financial Statements. As at December 31, 2024, the Group’s fleet consisted of 59 vessels, with an aggregate capacity of approximately 140,894 TEU and three 1,300 TEU dual-fuel newbuildings under construction. Two of the 1,300 TEU dual-fuel vessels are able to operate on green methanol with a design-based efficiency yield of more than 30%. Equipped with an ice class hull, they will be deployed on trades along the western coast of Norway, where they can achieve emission reductions of up to 95% compared to conventional ships. The vessels are delivered into 15-year time charters with North Sea Container Line AS (NCL) backed by a contract of affreightment from the Norwegian industrial company Elkem ASA. In January 2025, the Group took delivery of the first 1,300 TEU container vessels from the yard and the second vessel is expected to be delivered during first half of 2025. See further in Note 8.3 Subsequent eve nts . In January 2024, the Group partnered with Unifeeder in a joint investment for the construction of a third 1,300 TEU dual-fuel methanol container vessel is scheduled for delivery in late 2026 and will be under a 7-year time charter agreement with Unifeeder post-delivery. MPCC delivered a strong operational performance in 2024 while actively managing fleet composition, with continued robust chartering activity, successfully securing attractive time charters throughout the year to capture additional value and achieve high utilization for the fleet. Going forward, the Group will continue to pursue selective opportunities for growth and sale of older, less efficient tonnage, and invest in efficiency-enhancing retrofits of its existing fleet, as part of its fleet optimization and renewal strategy. Investment decisions shall be value accretive on a per share basis and follow strict investment criteria including the long-term mitigation of residual value risk. Corporate changes At the Annual General Meeting held on April 17, 2024, all members of the Board of Directors were re-elected for a period of two years. In April 2024 Mr. Moritz Fuhrman was appointed Co-CEO of MPCC alongside Mr. Constantin Baack with shared responsibility to run and develop the Company. Mr. Fuhrmann also retained his position as CFO. On December 12, 2024, Board Member Dr. Axel Schroeder announced his intention to resign from his position as a member of the Board of Directors and MPC Capital AG appointed Mr. Petros Panagiotidis to the Company’s Board of Directors, a position he commenced on December 18, 2024. Subsequent events In December 2024, the Group entered into agreement to sell its wholly owned 2005-built vessel, AS Fenja for USD 8.6 million to an unrelated party. The sale of the vessel was completed in January 2025. In January 2025, the Group took delivery of the first 1,300 TEU container vessels from the yard. The vessel is contracted with a 15-year time carter with NCL, backed by CoAs from various parties, including a 15-year CoA with Norwegian Industrial Group, Elkem ASA. In March 2025, the Group sold two Chinese-built 1,300-TEU vessels in an en-bloc deal of USD 21.8 million. The 2005-built AS Franziska and 2007-built AS Fabiana are respectively sold for USD 10.0 million and USD 11.8 million to an unrelated party. In March 2025, the Company completed a USD 75.0 million tap issue in the Company's outstanding senior unsecured sustainability-linked bond maturing on October 9, 2029. The bond pays a coupon of 7.375% per annual and the tap issue priced at 96.0% of par. In March 2025, the Group entered into secured term loan facility in an amount of up to USD 16.0 million with SBI Shinsei Bank, Limited (SBI Shinsei Bank) and Development Bank of Japan Inc (DBJ) to refinance Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 28 28 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report one modern eco-design vessel, AS Anne, financed under the existing USD 50.0 million loan with HCOB. The new facility has a tenor of six years, carries an interest rate of SOFR plus a margin of 175 basis points. The outstanding interest-bearing debt of USD 8.7 million in relation to AS Anne with HCOB was prepaid in February 2025. In March 2025, as part of the Group's strategy for fleet optimization and renewal, the Group entered into agreement to sell five vessels en bloc, involving three 1,300 TEU vessels and two 2,000 TEU vessels, to an unrelated party. The five vessels will be sold with the existing charters attached. In March 2025, pursuant to the dividend declared in Februray 2025, the Group paid a total cash distributions of USD 39.9 million. In April 2025, the Company listed its senior unsecured sustainability- linked bonds 2024/2029 of USD 200.0 million with ISIN NO0013355248 on Euronext Oslo Børs. Consolidated Financial Statements Income Statement For the full year of 2024, the Group reported operating revenues of USD 540.9 million (2023: USD 711.3 million) . Average TCE 1 per day in 2024 was USD 26,441 as compared to average TCE per day in 2023 of USD 32,511 (adjusted average TCE per day for 2023 was USD 28,816). This is mainly due to lower utilization in 2024 as a result of the retrofiting and drydocking program during the year. Gross profit for the 2024 was USD 341.1 million down from USD 540.6 million in 2023. In 2024, the Group recorded a total of USD 21.1 million gain (2023: USD 1.2 million loss) on sales of eight vessels. See Note 2.6 Gain (loss) from Sale of Vessels and Other Property, Plant and Equipments . Profit for the year 2024 was USD 266.7 million as compared to USD 325.1 million in 2023. Earnings per share Both basic and diluted earnings per share for the were USD 0.60 (2023: USD 0.78). Financial Position The Group’s total assets amounted to USD 1.2 billion as at December 31, 2024 compared to USD 954.7 million as at December 31, 2023. Total non-current assets of USD 1.1 billion as at December 31, 2024 (USD 773.3 million as at December 31, 2023) reflected mainly the carrying amounts of the vessels operated by the Group, and newbuildings as well as investments in associate and joint venture. In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel at Chinese-based shipyard Wenchong shipbuilding. The increase in the carrying amounts of vessels during 2024 is primarily due to the delivery of the two 5,500 TEU eco-design vessels, Mackenzie and Colorado, from its newbuilding program, the acquisition of AS Nara, AS Nuria, AS Nele, AS Nanne, AS Ninette, AS Natalie, and CAPEX additions of USD 56.2 million. This is offset by regular depreciation of USD 70.9 million and disposal of eight vessels. See Note 2.6 Gain (loss) from Sale of Vessels and Other Property, Plant and Equipments and Note 5.1 Vessels and Newbuildings for further details. As at December 31, 2024, total additions to the Group’s newbuilding program was USD 44.3 million, excluding the delivery of Mackenzie and Colorado which was previously under construction in 2023. Total equity was USD 817.6 million as at December 31, 2024, up from USD 753.5 million as at December 31, 2023, and included a non-controlling interest of USD 4.5 million (USD 3.8 million as at December 31, 2023). The change in equity was mainly due to profit for 2024 of USD 266.7 million, offset by the dividend payments of USD 204.0 million. As at December 31, 2024, the Group had total interest-bearing debt of USD 343.3 million (USD 126.5 million as at December 31, 2023). See Note 7. 4 Interest-Bearing Debt for further details. Cash flow The Group generated cash flow from operating activities USD 323.9 million in 2024 as compared to USD 484.6 million in 2023. Cash flow from investing activities was negative USD 313.0 million (2023: negative USD 152.1 million) mainly due to yard instalments of USD 122.0 million paid for two existing newbuildings and final delivery instalments for both Mackenzie and Colorado as well as acquisition of six vessels of USD 227.3 million and CAPEX additions of USD 56.2 million. These are offset by net proceeds of USD 93.0 million from sale of eight vessels (2023: USD 55.7 million). Cash flow from financing activities in 2024 was negative USD 1.3 million as compared to negative USD 335.5 million in 2023. This movement in 2024 was primarily due to dividend payout of 1 Average TCE earnings are an Alternative Performance Measure (APM) defined and reconciled in the APM section below and also published on the Company's homepage. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 29 29 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report USD 204.4 million (2023: USD 293.1 million) and repayment of existing interest-bearing debt of USD 44.0 million. This is offset by proceeds from debt financing of USD 263.3 million. See further in Note 7.4 Interest-Bearing D ebt . Cash and cash equivalents as at December 31, 2024 amounted to USD 132.1 million including restricted cash of USD 6.3 million compared with USD 122.6 million as at December 31, 2023. Dividend Policy In support of the objective to maximize shareholder returns, MPC Container Ships’ intention is to pay regular dividends by way of distributing 75% of the profit for the period after considering CAPEX and working capital requirements, including liquidity reserves, and non-recurring items. Dividends will be declared or proposed at the sole discretion of the Board and will depend upon the financial position, earnings, debt covenants, distribution restrictions, capital requirements and other factors related to MPC Container Ships and its subsidiaries. The Group cannot guarantee that its Board will declare or propose dividends in the future. Furthermore, MPC Container Ships may make event-driven distributions based on non-recurring proceeds, such as vessel sales, by way of extraordinary dividends or share buybacks, at the Board’s discretion. In accordance with the MPC Container Ships’ distribution policy, the Board, for the financial year 2024, declared dividends amounting to approximately USD 186 million, equal to USD 0.42 per share. Parent Financial statements Statement of Profit or Loss Revenues for 2024 was USD 17.7 million (2023: USD 15.8 million). Payroll and other operating expense were USD 25.5 million (2023: 22.2 million), resulting a negative operating result of USD 7.8 million (USD 6.4 million). Net financial income was USD 282.5 million mainly due to dividend income from subsidiaries held the Company. Profit before tax was USD 274.7 million (2023: 241.8 million). The Board of Directors has proposed that the profit for the period is allocated to retained earnings . Financial Position The Company’s total assets amounted to USD 713.6 million as at December 31, 2024 as compared to USD 272.9 million as at December 31, 2023. Non-current assets in the amount of USD 674.4 million comprise mainly equity investment in subsidiaries. See further in Note 8 Investments in Subsidiaries and Affiliated Compan ies . In 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%. As at December 31, 2024, non-current interest bearing debt amounted to USD 122.2 million. Total equity was USD 450.2 million as at December 31, 2024 (2023: USD 208.1 million) . The increase in equity is mainly due to profit for twelve-month period of USD 234.7 million which is offset by dividend distributions of USD 204.1 million. Cash flow In 2024, the Company generated cash flow from operating activities of negative USD 6.4 million as compared to positive USD 8.6 million in 2023. Cash from from investing activities was USD 104.1 million in 2024 as compared to USD 270.2 million in 2023. This is mainly due to dividends received from subsidiaries and loan proceeds from subsidiaries of USD 91.0 million. This is offset by cash outflow of USD 526.5 million on investment in subsidiaries. See further in Note 8 Investments in Subsidiaries and Affiliated Companies . Cash from financing activities of negative USD 82.0 million (2023: USD 293.8 million) was mainly due to dividend distribution of USD 204.1 million made during the year which is offset by the bond issuance of USD 125.0 million in October 2024. See further in Note 10 Interest-bearing d ebt . Going Concern In accordance with the Norwegian Accounting Act § 2-2, the Board of Directors confirms that the going concern assumption on which the financial statements have been prepared, is appropriate. This assumption is based on the current market perception, contracted charter backlog as well as respective budgeted future cash flows for 2025 and 2026. Work Environment and equal opportunities As at December 31, 2024, the MPCC had 38 employees, of which 27 men and 11 women. The Group strives for diversity on a broad basis, including sex, age, ethnicity, personal beliefs, background, education, sexual orientation, gender identity, and nationality. The Sustainability Report includes key metrics related to diversity and information regarding the Group’s efforts to promote diversity. Crew Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 30 30 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report operating the Group’s vessels are not employed by the Group, but MPCC has a continuous high focus on safety, health, and wellbeing of offshore workers on board all our vessels. The onshore working environment is regarded as favorable, with continuous efforts for enhancements being implemented through mechanisms such as employee development reviews and individual feedback sessions. Throughout the year, there were no reported absences, incidents, or work-related accidents resulting in significant material damage or personal injury. The Norwegian Equality and Anti-Discrimination Act’s objective is to promote equality and prevent discrimination based on gender, pregnancy, leave in connection with childbirth or adoption, care responsibilities, ethnicity, religion, belief, disability, sexual orientation, gender identity, gender expression, age, or other significant characteristics of a person. The Group is working in an active, determined, and systematic way to encourage the Act’s purpose within our business and aims to be a workplace with equal opportunities. This is reflected in the Group’s Code of Conduct, applicable to all entities controlled by MPCC and all employees, directors, officers, and agents. As at December 31, 2024, the Board of Directors consisted of two women and three men. Executive management consisted of four men. Internal Controls and Risk management In accordance with the principles underlying value-based management, the Board of Directors places great importance on systematic risk management. This is done not only to satisfy the requirements set out by law, but also to ensure the Group’s governance in a highly dynamic market environment by identifying existing and potential risk exposures. Through (i) quarterly reviews of the Group’s most prominent areas of risk exposure and its internal control arrangements, (ii) management guidelines and (iii) the appointment of a dedicated risk management unit to perform risk monitoring and provide regular risk management updates to the Risk, Audit and Sustainability Committee, the Board of Directors aims to ensure that the Group has sound internal control and systems for risk management that are appropriate in relation to the extent and nature of the Group’s activities. MPCC has appointed a German lawyer as External Compliance Officer to support the Chief Compliance Officer in defining and setting up a comprehensive Compliance Management System (CMS) and head the daily operative routines. Mr. Ove André Vanebo of the Norwegian law firm CMS Kluge Advokatfirma AS has been contracted to serve as the External Data Protection Officer. MPCC has purchased and maintains a Directors and Officers Liability Insurance on behalf of the members of the Board of Directors and CEO/Co-CEO. The insurance covers the Board’s and the CEO/ Co-CEO’s legal personal liability for financial damage caused by the performance of their duties. The insurance additionally covers any employee acting in a managerial capacity and includes subsidiaries owned with more than 50%. The insurance policy is issued by a reputable, specialized insurer with appropriate rating. Corporate Social responsibility Good corporate governance is a prerequisite for cooperation based on trust between the Shareholders, the Board of Directors, and the executive management of MPCC. Of equal importance is the Company’s corporate social responsibility, which shall be reflected in our core values, the quality of our work and services, and in our entire range of activities. The Board of Directors actively adheres to good corporate governance standards and will ensure that the Company either complies with or explains deviations from the Norwegian Code of Practice for Corporate Governance (the “Code”). As at December 31, 2024, there were no significant deviations between the Code and how the Company complies with the Code. The corporate governance principles of the Company are adopted and overseen by the Board of Directors. For more details on corporate governance please see the Corporate Governance Report. For more information on corporate social responsibility, health and safety, and environmental impacts, please see the Sustainability Report for 2024. Transparency Act The Norwegian Transparency Act, which entered into force on 1 July 2022, has highlighted the importance of assessing actual and potential adverse impacts on human rights and decent working conditions in the supply chain. A description of MPCC’s human rights due diligence assessment can be found in the Norwegian Transparency Act Statement for 2024 on the Company’s website. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 31 31 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report Outlook and Strategy Throughout the year, the Red Sea crisis became a major disruption in the shipping industry. The market for container shipping experienced increased freight rates driven by the rerouting of vessels around Cape of Good Hope, higher-than-expected demand, and persistent vulnerabilities in global supply chains. While the ongoing crisis has positively impacted the market, the duration remains highly uncertain. As we enter 2025, the overall economic situation is creating uncertainty, however, the container market remains firm. We continue to see strong second-hand demand and even stronger time-charter rates, and very limited forward availability. The longer charter periods we have seen throughout 2024 prevail, and continue to increase, and the idle fleet remains less than 1% of the total fleet. The orderbook remains high for new vessels coming into the market, however, the majority of this orderbook relates to the larger vessels. The orderbook-to-fleet ratios in MPCC’s market segment of small to mid-size vessels are relatively low and the share of the fleet that is older than 20 years is relatively high at the same time. This leads to more favourable supply-side fundamentals and offers a considerable potential for fleet modernization within this segment. We continue to see opportunities from increasing our focus on and investments in green technology. MPCC will collaborate closely with customers and partners to evaluate new technologies and opportunities within decarbonization and invest in vessels and fuel-related infrastructure that will propel sustainable change in the maritime industry. The Group will also continue to execute on its ambitious fleet optimization and renewal program, which includes investments in eco-tonnage, retrofits, and newbuildings. At the end of 2024, MPCC had fixed approximately 90% of operating days in 2025, reflecting an approximate USD 450 million in forward charter contracts. The average remaining charter contract duration for the fleet, including newbuildings, was 2.0 years and constituted USD 1.1 billion in forward charter contracts. Despite increase in debt financing throughout 2024, the leverage ratio remains low, and at 31 December 2024, leverage ratio was 27.9%. Going forward, MPCC remains in a strong financial position with significant earnings visibility and is thus in a strong competitive position. For the coming year, the Group will continue to focus on its strategy for fleet optimization and pursue selective growth opportunities. The Board remains committed to the Company’s dividend policy to ensure reliable quarterly shareholder distributions also for the coming years. Risk factors The Board of Directors aims to ensure that the Company has sound internal controls and systems for risk management that are appropriate in relation to the extent and nature of the Company’s objectives and activities. Together with the executive management, the Board has identified approximately 48 risk factors divided into eight categories. The Risk Inventory is quantified and monitored by taking a probability-impact approach. Each risk is assigned a Risk Owner within the Company’s organization and a defined set of countermeasures and control frequencies. A summary of the Company’s risk categories is outlined below. Descriptions are not exhaustive, and the sequence of risk categories is not set out according to importance or priority. Market and Industry Risks As a supplier of ocean-going container vessels to the international sea trade, the Company is exposed to changes in trade patterns and the supply/demand for (imports/exports of) containerized goods caused for example by macroeconomic and geopolitical events, as evidenced by the Russian invasion into Ukraine in 2022 or the Israel-Hamas war which started in 2023 and lead to a re-routing of vessels around the Cape of Good Hope. This in turn necessitates risk surveillance and mitigation procedures related to the charter market, fluctuation in vessel values among others. The Company strives to maintain a dynamic chartering strategy, a reliable fleet, and a close dialogue with the shipping market intelligence community to proactively adjust operations according to prevailing and future market environments. The increase in geopolitical conflicts around the world as well as related economic and financial implications, e.g. sanctions receive special attention by the Company as the Russia-Ukraine conflict and the Israel-Hamas war have generated the most significant disruption to geopolitical norms for decades. The Company has assessed all relevant areas, i.e. operation, contracts, charter parties etc. in order to identify risks and define specific countermeasures. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 32 32 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report To minimize the commercial risks from vessel trading in critical areas, all vessels have been stopped to call ports or transit in Ukraine, Russia, and the Red Sea. Also, no dockings are scheduled in the region. Besides these existent risk factors, our risk assessment concludes that there is no immediate holistic impact on MPCC expected. We remain confident that if there is no complete disruption of the global supply chain, MPCC’s business and operations should be able to continue. The global economy has shown resilience over the past years with stabilizing inflation rates and interest rate cuts in many economies. Nonetheless, the global economic outlook for 2025 and 2026 remains below the historical long term average. The IMF and OECD both forecast global growth at 3.3% in 2025 and 2026 respectively. Uncertainties about increasing protectionism are set to weigh on the global trade outlook. For this reason, the IMF revised its world trade growth estimates sown slightly for 2025 and 2026. The OECD states that geopolitical tensions risk disrupting supply chains and energy markets. On that economic background, container freight markets have benefitted from continued geopolitical uncertainty since 2023 as the Houthi attacks on merchant vessels have rendered the Red Sea more or less unusable for East-West trade flows. Main liners have as a result of logistical disruptions been able to ask for significantly higher freight rates and non-operating owners with open positions benefited in the form of longer and / or higher time charter contracts. At the end of 2024, most liner operators are planning the Red Sea circumnavigation as the base case for 2025. Environmental, Social, and Governance Risks Risks related to e.g., climate change impacts, mitigation and adaptation, environmental management practices and duty of care, working and safety conditions, respect for human rights, gender diversity, anti-bribery and corruption practices, and compliance with relevant laws, regulations, and best practices. Responsible business operations should also consider the impacts of megatrends (e.g. climate change), emerging regulations, voluntary guidelines as well as the transparency requirements of wider stakeholders. Sustainability-related topics are gaining a foothold amongst stakeholders not due to specific laws or regulations mandating a new level of disclosure but as the result of a broader understanding of the reputational and financial impact of poorly handling such issues. While developments in the ESG (“Environmental, Social and Governance”) reporting and regulatory environment are outside the control of the Company, our attentiveness, and adherence to ESG initiatives, reporting standards, etc. is of strategic relevance within the Company’s scope of business. Performance Risks The Company’s performance depends heavily on technical, operational, environmental, and reputational factors that carry both risks and opportunities. The Company addresses these risks and opportunities by assigning responsibilities, monitoring, and reporting routines to dedicated teams within its organization (e.g., asset management, treasury, and owner controlling), utilizing and continuously developing portfolio management tools, and engaging subject matter consultants to conduct routine compliance and quality management assessments. The Company’s vessels have insurance covering (where applicable) among others P&I, hull and machinery, loss of hire, war risks, and crew negligence. However, risks remain as to whether the vessels are covered under all conditions. Vessels carry loss prevention, safety, and quality manuals to ensure sound HSE routines. Third- party contracting related to the Company’s performance shall comply with applicable laws and regulations, for instance, and where applicable, with the International Maritime Organization’s ISM Code and the SOLAS, STCW, and Maritime Labor conventions. Legal Risks The Company is exposed to changes in legal, tax, and regulatory regimes within relevant jurisdictions as well as potential private litigation and public prosecution. The Company seeks to mitigate legal risks by maintaining a well-functioning risk management system, management guidelines, and dedicated compliance and legal functions. The shipping industry is subject to changing international and local laws, especially environmental regulations like the IMO’s sulphur emission cap and the EU’s FuelEU Maritime regulations. MPCC is committed to the “2023 IMO Strategy on Reduction of GHG Emission from Ships” and has developed a Sustainability-Linked Financing Framework to support environmental sustainability and decarbonization goals. Also, operations across various jurisdictions expose the company to different tax regimes and potential changes in tax laws and practices. The company carefully navigates various tax regimes and adapts to changes in tax laws to mitigate financial risks. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 33 33 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report Furthermore, the company may face litigation related to contracts, environmental issues, and other disputes. MPCC intains robust legal strategies to handle potential litigation and contractual disputes effectively. Moreover, operating in multiple jurisdictions subjects the company to potential financial, operational, and reputational risks from international and national sanctions. This risk factor is being mitigated by the implementation of strong sanctions screening processes and ensures compliance with evolving sanctions regimes through effective communication and training. In addition, business interruptions and compliance risks arise from operating in politically unstable regions with inadequate legal systems. The company proactively manages political and compliance risks by staying informed about local conditions and maintaining flexible operational strategies. Personnel Risks The continued progress of the Company depends heavily on the knowledge and network of key personnel as well as on access to new talent. Personnel risk mitigation procedures include pre- and post-hire preparations, regular employee development reviews, jour fixes, and a systematic expansion of internal resources on business- critical processes. IT Risks IT and cyber risks make up an increasing share of the Company’s risk universe. The Company purchases IT services from third parties that offer comprehensive security strategies that closely match the Company’s business objectives. All data and applications are hosted multi-redundantly in a European cloud storage and secured multiply against data loss and third-party access. Security checks and staff training are carried out regularly. Financial Risks The Company seeks to actively manage its financial risk exposures using dedicated finance, treasury, and owner-controlling teams within its organization. Liquidity and covenant risks are monitored on an ongoing basis, also considering the latest macroeconomic events and their implications for container shipping. Currency and interest rate risks are mitigated via financial instruments when deemed appropriate. The compliance with certain debt covenants, including covenants in relation to the market value of the Group’s fleet, may be beyond the control of the Group. Total interest- bearing debt as at December 31, 2024, was USD 343.3 million. This compared to USD 125.7 million in available liquidity as cash and cash equivalents. Climate Risks The Company divided climate-related risks into two major categories: (1) risks related to the transition to a lower-carbon economy and (2) risks related to the physical impacts of climate change. Transitioning to a lower-carbon economy implies extensive changes in the political, legal, technological, and market environment. It is the goal of the MPCC Risk Management to identify the specific risks for our business model and to address mitigation and adaptation requirements related to climate change. Depending on the speed and focus of these changes, transition risks may pose varying levels of financial and reputational risk to our organization. These risks include but are not limited to risks from unsuccessful investments into new climate-friendly technologies, vessel retrofits to improve energy efficiency, uncertainty in market signals, carbon tax, and costs related to decarbonization efforts. Physical risks resulting from climate change can be event-driven (acute) or longer-term shifts (chronic) in climate patterns. Physical risks may have financial implications for the company, such as direct damage to assets and indirect impacts from disruptive operations. Other Risks Occasionally, the Company will be required to consider major business initiatives, which, if implemented, entail a considerable amount of costs and resources. Moreover, if executed without due care and planning, such strategic initiatives may have a material adverse impact on the Company. The need to consider major initiatives may arise from strategic considerations, from shifts in market dynamics or from regulatory changes outside the Company’s control. The Company will seek to mitigate risks arising from such initiatives, as well as all other risks not assorted into the above-mentioned six risk categories, on a case-by-case basis by implementing e.g. project steering committees comprising relevant stakeholders/expertise, be it internal or external. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 34 34 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report Forward-looking statements Forward-looking statements presented in this report are based on various assumptions. The assumptions are subject to uncertainties and contingencies that are difficult or impossible to predict. MPC Container Ships ASA cannot give assurances that expectations regarding the outlook will be achieved or accomplished. Oslo, April 9, 2025 The Board of Directors and Chief Executive Officer of MPC Container Ships ASA Electronically signed Ulf Stephan Holländer Chairman of the Board Ellen Merete Hanetho Member of the Board Peter Frederiksen Member of the Board Pia Meling Member of the Board Petros Panagiotidis Member of the Board Constantin Baack CEO Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 35 35 From the Boardroom From the Boardroom | Board of Directors’ Report From the Boardroom | Board of Directors’ Report Corporate Governance Report Implementation and Reporting on Corporate Governance Good corporate governance is a prerequisite for cooperation based on trust between the owners, the Board of Directors (the “Board”) and the executive management of MPC Container Ships ASA (“MPCC” or the “Company”, together with its subsidiaries, the “Group”), with a view to achieving long-term growth. The Board actively adheres to good corporate governance standards and will ensure that the Company either complies with or explains possible deviations from the Norwegian Code of Practice for Corporate Governance (the “Code”). The Code can be found at www.nues .no . As at December 31, 2024, there are no significant deviations between the Code and how the Company complies with the Code. Two deviations under Section 5 on General Meetings and one deviation under Section 6 on the Nomination Committee have been justified and disclosed. Business The business activity of the Company is set out in article 3 of its Articles of Association: “The Company’s business activity is to (i) invest in maritime assets (vessels, shares in ship-owning companies, loans secured by vessels, and/or shares in ship-owning companies) with a main focus on small- to mid-size containerships, (ii) chartering out the vessels via time-charter agreements, operate and sell them as well as (iii) working out the acquired maritime loans in order to take over the securing assets.” As a globally active shipping company, MPC Container Ships considers the creation of shareholder and stakeholder value as the core purpose of our business activities. The creation of sustainable long-term value is founded in an ability to combine operational, economic, and financial achievements with environmental, social, and governance advancements. Adapting to the future and changing environment of our business and the general market as well as preparing for the challenges that those developments imply, is a key element of our long-term business strategy. Our mission is to future-proof our business and create stakeholder value through: A professional and positive workplace with an inclusive working environment. Health and safety of our employees are always the main priority. Supporting collective climate ambitions and leveraging industry networks to accelerate change. Effective and value-accretive fleet management and development to ensure strong returns on investment and enable the long-term competitiveness of the fleet, taking economic and environmental aspects equally into account. Clear and rational and capital allocation principles, geared towards maximizing shareholder returns while managing risks. Professional and fair business relationships, acting as a transparent and trustworthy business partner. The Company is listed on the Oslo Stock Exchange under the ticker code MPCC. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 36 36 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report As set out in the Risk Factors section of the Board of Director’s Report in the Annual Report for 2024, the Board has defined clear objectives, strategies, and risk profiles for the Company’s business activities. The Board will evaluate these objectives, strategies, and risk profiles on a regular basis, and routinely monitor risk exposure vis-à-vis its business objectives. Deviations from the Code: none Equity and Dividends Share Capital All shares issued in the Company are equal in all respects. The Company has one class of shares, each carrying one vote and an equal right to dividend. All shares are validly issued and fully paid. The shares are issued in accordance with the laws of Norway and registered in the Norwegian Central Securities Depository (Euronext Securities Oslo) with ISIN NO0010791353. As at December 31, 2024, the Company’s share capital was NOK 443,700,279 divided into 443,700,279 shares, each with a nominal value of NOK 1.00. Any increase of the Company’s share capital must be authorized by a general meeting. If the Board receives authorization to increase the Company’s share capital, such a mandate will be restricted to a defined purpose. If the general meeting is to consider authorizations for the issuance of shares for different purposes, each authorization will be considered separately. At the Company’s annual general meeting held on April 17, 2024, the Board was granted an authorization to increase the Company’s share capital by up to NOK 44,370,027. Subject to this aggregate amount limitation, the Board’s authority may be used on more than one occasion and for such purposes as the Board finds to be in the interest of the Company. The authorization was not used in 2024. The Board’s authority to increase the Company’s share capital shall remain in force until the Annual General Meeting in 2025, but not later than June 30, 2025. Pre-emptive rights of existing shareholders may be set aside. The authority covers (i) capital increases against contributions in cash and noncash, (ii) the right to incur special obligations for the Company, (iii) resolutions on mergers and (iv) takeover situations. Capital Structure The Board regards its capital structure and equity ratio as appropriate considering the Group’s objectives, strategy, and risk profile. Dividend Policy In support of its objective of maximizing shareholder returns, MPC Container Ships’ intention is to pay regular dividends by way of distributing 75% of the profit for the period after considering CAPEX and working capital requirements, including liquidity reserves and one-off effects. Dividends will be declared or proposed by the Board at the sole discretion of the Board and will depend on the financial position, earnings, debt covenants, distribution restrictions, capital requirements and other factors related to MPC Container Ships and its subsidiaries. The Company cannot guarantee that its Board will declare or propose dividends in the future. Furthermore, the Company may make event-driven distributions based on non-recurring proceeds, such as vessel sales, by way of extraordinary dividends or share buybacks, to be applied according to the Board’s discretion. Purchase of Own Shares At the annual general meeting held on April 17, 2024, the Board was granted an authorization to acquire shares in the Company on behalf of the Company with an aggregate nominal value of up to NOK 44,370,027 and with a consideration per share of no less than NOK 1.00 and no more than NOK 200.00. The authority remains in force until the Annual General Meeting in 2025, but not later than June 30, 2025. No shares in the Company were acquired on behalf of the Company in 2024. Deviations from the Code: none Equal Treatment of Shareholders Equal Treatment Equal treatment of all shareholders is a core governance principle of the Company. The Company has one class of shares, and each share confers one vote at the general meeting. The Articles of Association contain no restrictions on voting rights and all shares have equal rights. Transactions in Own Shares The Company’s transactions in own shares are carried out over the stock exchange or by other means at market price. Should there be an increase in capital which involves a waiver of the existing shareholders’ pre-emptive rights, and the Board resolves to carry out such an increase on the basis of a mandate granted by the Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 37 37 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report general meeting, the Board will explain the justification for waiving the pre-emptive rights in a stock exchange announcement. Deviations from the Code: none Shares and Negotiability The Company’s shares are listed on the Oslo Stock Exchange and are freely negotiable. The shares have no trading restrictions in the form of Board consent or ownership limitation and there are no limitations on any party’s ability to own, trade, or vote for shares in the Company. Deviations from the Code: none General Meetings The general meeting of shareholders is the Company’s supreme corporate body. It serves as a democratic and effective forum for interaction between the Company’s shareholders, Board, and management. According to the Company’s Articles of Association, an Annual General Meeting shall be held once a year before the end of June. Furthermore, extraordinary general meetings may be convened by the Board, the auditor, or shareholders representing at least 5% of the Company’s share capital. Notice of Meeting Notice of a general meeting shall be sent at the latest 21 days before the meeting. All shareholders registered in the Norwegian Central Securities Depository will be notified of the meeting and be entitled to submit proposals and vote directly or via proxy. Agenda papers will also be published on the Company’s website. Pursuant to the Company’s Articles of Association, when documents concerning matters to be discussed at general meetings have been made available to the shareholders on the Company’s website, the Board may decide that the documents shall not be sent to the shareholders. If so, a shareholder may request that documents concerning matters to be discussed at the general meeting be sent to him or her. The Company will not charge any form of compensation for sending the documents to the shareholders. Agenda papers must contain all necessary information for the shareholders to decide on the issues to be addressed. The Notice may state that shareholders wanting to attend the general meeting must notify the company thereof within a certain period. This period cannot expire sooner than two business days before the meeting. Registration and Proxy The Board will ensure that as many shareholders as possible are able to participate at general meetings. Shareholders who are unable to submit advance voting or attend in person, are encouraged to appoint a proxy. A special proxy form is available which facilitates separate voting instructions for each issue to be considered by the general meeting and for each of the candidates nominated for election. The Company will nominate one or more persons to vote as proxy for shareholders and shareholders will be provided an opportunity to nominate a different proxy holder other than the Company nominee. If shares are registered by a nominee in the Norwegian Central Securities Depository and the beneficial shareholder wants to vote for their shares, the beneficial shareholder must give the Company prior notice of its attendance at least two business days before the date of the relevant general meeting. Minutes The minutes of the general meetings are made available on the Company’s website immediately after the meeting. Deviations from the Code: The Board might not make arrangements for an independent chairperson for general meetings as the Company believes that the Chairman of the Board can act independently and in the interests of shareholders. Similarly, the Board may not deem it appropriate for all Board members and the auditor to participate in all general meetings. Nomination Committee Considering the scope of the Company’s operations, the Board considers it reasonable and appropriate that the Company should have two Board sub-committees: A Risk, Audit and Sustainability Committee and a Remuneration Committee. The Risk, Audit and Sustainability Committee is made up of Ellen Hanetho (Chair), Ulf Holländer, and Pia Meling. The Remuneration Committee is made up of Ulf Holländer (Chair), Ellen Hanetho, and Peter Frederiksen. Deviations from the Code: Due to the above considerations, the Company does not have a dedicated Nomination Committee. The Company shall account for the interests of the shareholders when considering the composition of the Board by (i) seeking a diverse and Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 38 38 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report highly qualified pool of Board candidates with relevant competence and industry expertise and (ii) ensuring that shareholder input on Board member nomination, election, and evaluation are properly addressed. Board of Directors: Composition and Independence Pursuant to the Company’s Articles of Association, the Board shall consist of between three and seven members who are elected by the general meeting for up to four years at a time. MPC Münchmeyer Petersen Capital AG (“MPC Capital”) has the right to elect 40% of the members of the Board (rounded down). If the aggregate share ownership of MPC Capital and affiliates falls below 20% of the total number of shares in the Company, MPC Capital shall only have the right to elect one board member. If neither MPC Capital nor any affiliates own any shares in the Company, MPC Capital shall not have the right to elect a board member. Board appointments are communicated in the notice of general meetings and the members are elected by majority vote. The Board considers its composition to be diverse and competent with respect to the expertise, capacity, and diversity appropriate to attend to the Company’s objectives, main risks and challenges, and the common interest of all shareholders. The Board composition adheres to the requirement regarding gender equality and representation of both sexes on the board of directors of Norwegian public entities, as set forth in the Norwegian Public Limited Liability Companies Act Section 6-11a, according to which a Board comprising five members shall be made up of a maximum of three representatives (60%) from each gender. The Board deems its composition to be made up of individuals who are willing and able to work as a team, resulting in the Board working effectively as a collegiate body. The Board’s composition does not include any representatives from executive management and three out of five members are independent of the Company’s main shareholder. The Work of the Board of Directors The Duties of the Board The Board of Directors has 5 members, whereof 3 members are independent. Members are elected for two-year periods. Neither the CEO nor any other member of the executive management are Directors of the Board. According to Norwegian corporate law, the Board has overall supervisory responsibility for the company’s management, while the CEO is responsible for day-to-day management. The Board also oversees the company’s activities in general. This involves defining the Company’s objectives, strategies, and risk profiles to ensure shareholder value creation. The Board is also responsible for following up on the implementation of objectives and strategies, as well as for control functions to ensure that the Company has proper operations and risk management. The Norwegian legal and regulatory corporate governance structure requires the entire board to be involved in decision-making. The Norwegian Public Limited Companies Act prescribes that the Board of Directors may not adopt a resolution without its members having been given an opportunity to participate in a discussion of the matter in question. Instructions for the Board Pursuant to the provisions of the Norwegian Public Limited Liability Companies Act, the Board has established Rules of Procedure that provide detailed rules for the Board’s work and administrative procedures and the functions and duties of the CEO towards the Board. Agreements with Related Parties The Board and management are committed to promoting equal treatment of all shareholders. In the course of ordinary business, the Group may enter into transactions with certain entities in which the Group has ownership interests or with entities otherwise deemed related parties of the Group, its shareholders, Board, or executive personnel. Such transactions are carried out on an arm’s length basis and disclosed in Note 8.2 to the Consolidated Financial Statements for 2024. Guidelines regulating loyalty, ethics, impartiality, and conflict of interests are stipulated in the Company’s Code of Conduct, applicable to all entities controlled by the Company and all employees, directors, officers, and agents. The Code of Conduct is available on the Company’s website. Deviations from the Code: none Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 39 39 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report Conflicts of Interest and Disqualification Members of the Board and executive management cannot consider matters in which they may hold a special interest. In order to ensure that items brought to the Board’s attention can be considered in an unbiased and satisfactory way, Board members and executive management have a duty to inform the Board of any potential special interest in Board matters, and the Board must account for the individual’s interest in its consideration of the item. Instructions for the CEO A clear division of responsibilities and tasks has been established between the Board and executive management. The CEO, appointed by the Board, has a particular responsibility to ensure that the Board receives accurate, relevant, and timely information that is sufficient to allow the Board to carry out its duties. Financial Reporting The Board receives periodic reports on the Company’s financial status. In relation to the annual accounts, which the Board is asked to adopt, the Board may ask management to confirm that the accounts have been prepared in accordance with EU IFRS (Group level) and Norwegian GAAP (parent level), that all the information included is in accordance with the actual situation of the Company, and that nothing of material importance has been omitted. Chairman of the Board The principal duty of the Chairman is to ensure that the Board operates well and carries out its duties. In addition, the Chairman has specific duties during board meetings. Matters to be considered by the Board are prepared by the CEO in collaboration with the Chairman, who chairs the board meetings. Another member must chair the meeting when the Board considers matters of a material nature in which the Chairman has, or has had, an active involvement. Meeting Structure The Board intends to meet at least five times each year and routinely receives reports on the Company’s operational and financial performance. Furthermore, the Board is consulted on or informed of matters of special importance. Risk, Audit and Sustainability Committee The Risk, Audit and Sustainability Committee (RASC) shall act as a preparatory and advisory body and support the Board in the exercise of its responsibilities related to financial and ESG reporting, internal control, and risk management. Furthermore, the RASC shall review and discuss with the Company’s management and statutory auditor the Company’s annual and quarterly financial statements and annual sustainability reporting, and assess and monitor the independence of the statutory auditor. The RASC shall meet at least four times per year and at such other times as the Chairman of the committee deems appropriate. A Risk & Audit Committee was established in January 2018. The responsibilities of the committee were in January 2024 expanded to include matters concerning ESG, taking over responsibilities from the ESG Committee, which was subsequently discontinued. The RASC consists of three members, of which the chair and one member are independent of the Company’s business activities and main shareholders. In the course of 2024, the Risk, Audit and Sustainability Committee met five times. All meetings were fully attended by the respective committee members. Remuneration Committee The Remuneration Committee shall act as a preparatory and advisory body and assist the Board in its work in relation to the Company’s remuneration policies and terms of employment for the CEO. The Remuneration Committee was established in March 2018 and consists of three members of which two are independent of the Company’s business activities and main shareholders. The Board’s Self-Evaluation The Board conducts an annual evaluation of its performance, way of working and expertise. Deviations from the Code: none Risk Management and Internal Control In accordance with the principles underlying value-based management, the Board places great importance on systematic risk management. This is done not only to satisfy the requirements set out by law, but also to ensure the Company’s governance in a highly dynamic market environment by identifying existing and potential risk exposures. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 40 40 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report Through (i) quarterly reviews of the Company’s most prominent areas of risk exposure and its internal control arrangements, (ii) management guidelines and (iii) the appointment of a dedicated risk management unit to perform risk monitoring and provide regular risk management updates to the Risk, Audit and Sustainability Committee, the Board aims to ensure that the Company has sound internal controls and systems for risk management that are appropriate given the extent and nature of the Company’s activities. The Board considers the Company’s internal control and risk management to be sound and appropriate. It is composed of governing elements, such as the Code of Conduct, whistleblowing procedures and several other relevant policies and procedures. The Board reviews the Company’s risk matrix regularly and the internal control arrangements at least annually. The Board performs an internal financial audit review prior to the release of quarterly financial statements and when otherwise required. Deviations from the Code: none Remuneration of the Board of Directors For the financial year 2024, each Board member received remuneration of USD 50,000, covering work related to both Board representation and committee participation, and the Chairman received remuneration of USD 90,000. Remuneration for the financial year was approved by the Annual General Meeting on April 17, 2024. The Company considers the remuneration for the Board to reflect the Board’s responsibilities, expertise, time commitment and the complexity of the Company’s activities. The remuneration of the Board is not linked to Company performance. Board members have no options to buy shares in the Company, nor do they receive compensation other than the Board remuneration. Board remuneration is considered to be on market terms. Deviations from the Code: none Remuneration of Executive Personnel Pursuant to the Norwegian Public Limited Liability Companies Act, the Board prepares guidelines for the remuneration of the Company’s CEO and other executive personnel. The guidelines set out the main principles applied in determining the salary and other remuneration of the executive personnel considered to reflect market conditions and help to ensure alignment between the financial interests of executive personnel and the shareholders. The Board’s Remuneration Guidelines are made available on the Company’s website ahead of the Annual General Meeting, highlighting which guidelines are advisory and which, if any, are binding. Any performance-related remuneration such as incentive programs, share option schemes or similar shall be linked to value creation for shareholders and results delivered in the Group over time. Such arrangements aim to drive performance and be based on financial, operational, and other quantifiable measures over which the employee in question can impact. Performance-related remuneration is subject to limits. For information about remuneration of the Company’s CEO and other executive personnel, see the Remuneration Report and Note 8.2 to the Consolidated Financial Statements. Deviations from the Code: none Information and Communications The Company’s objective is to ensure transparent, timely, and accurate dissemination of information to enable shareholders, investors, analysts, and other stakeholders to make informed decision about the fair value of MPC Container Ships and reduce volatility in the Company’s shares. All reports will be available on the Company’s website www.mpc-container.com and through disseminations at the Oslo Stock Exchange. The policy shall ensure awareness of investor relations among management and the Board. The Board has adapted an Investor Relations Policy to ensure that the Company’s investor relations are carried out in compliance with applicable rules, regulations, and recommended practices. The Company’s current financial calendar with dates of important events including the annual general meeting, publishing of quarterly reports and its presentations, etc. is publicly accessible on the Company’s website www.mpc-container.com and through regulatory and non-regulatory disseminations at the Oslo Stock Exchange. Deviations from the Code: none Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 41 41 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report Takeovers The Company has implemented guidelines on how to act in the event of a takeover bid. In the event of a takeover bid being made for the Company, the Board will follow the overriding principle of equal treatment for all shareholders and will seek to ensure that the Company’s business activities are not disrupted unnecessarily. The Board will strive to ensure that shareholders are given sufficient information and time to evaluate an offer the Board considers attractive to the shareholders. The Board will not seek to prevent any takeover bid unless it believes that the interests of the Company and the shareholders justify such actions. If a takeover bid is made, the Board will issue a statement with a recommendation on whether such bid should be accepted or not by the shareholders. Such a statement shall, inter alia, include information on whether the assessment of the bid is unanimous and, if not, on which basis individual board members have made reservations regarding the Board’s statement. In the event of a takeover bid, the Board will consider obtaining a valuation from independent experts. If a major shareholder, any member of the Board or executive management, related parties, or close associates of such individuals or anyone who has recently held such a position, is either the bidder or has a particular personal interest in a takeover bid, the Board will arrange for an independent valuation. Deviations from the Code: none Auditor Under Norwegian law the auditor of the Company is elected by the general meeting. Ernst & Young AS (org. no. 976,389,387) was elected as the Company’s auditor on May 18, 2017. The auditor participates in meetings of the Risk, Audit and Sustainability Committee that cover interim, quarterly, and annual financial- and ESG reporting, board meetings that deal with the annual accounts as well as the Annual General Meeting. At these meetings, the auditor reviews any deviations in the accounting principles applied and comments on key aspects of the audit, material accounting estimates, and issues of special interest to the auditor, including disagreements between the auditor and management. The auditor and the Board will meet at least once a year without members of executive management present. The auditor annually presents and discusses their plan for the audit of the Company as well as a review of the Company’s internal control procedures with the Risk, Audit and Sustainability Committee. The auditor shall annually submit a written confirmation that the auditor continues to satisfy the requirements for independence and a summary of all services that has been undertaken for the Company in addition to audit work. Deviations from the Code: The Board has not prepared separate guidelines in respect of the use of the auditor by the Company’s executive management for services other than the audit. However, as a general rule, the Board will preapprove all non-audit services provided by the Company’s auditor on a case-by-case basis to ensure the auditor’s independence from the Company’s executive management Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 42 42 From the Boardroom From the Boardroom | Corporate Governance Report From the Boardroom | Corporate Governance Report Remuneration Report Report on salaries and other remuneration to leading personnel in MPC Container Ships ASA for 2024: This report on salaries and other remuneration to leading personnel (“the Report”) of MPC Container Ships ASA (“MPCC”, “the Company” or together with its subsidiaries “Group”) is based on the guidelines for the determination of salaries and other remuneration of leading personnel in the Company which were approved by the Company’s general meeting on 19 April 2023 (“Guidelines”). The statement regarding remuneration for executive management was passed by 68.4% of the shares represented at the shareholders’ meeting. The report is based on the requirements set out in the Norwegian Public Limited Companies Act of 13 June 1997 no. 45 (the “Companies Act”) section 6-16 and 6-16b, as well as Regulation on guidelines and report on remuneration for leading personnel of 11 December 2021 No. 2730 (the “Regulation”). The report is formulated in line with the European Commission’s template for remuneration reports. Information required by the Norwegian Act relating to Annual Accounts of 17 July 1998 no. 56 (“Accounting Act”) section 7-31 b is included in the Company’s annual report for 2024 in Note 8.2 . The Company considers the CEO, Co-CEO & CFO and COO to be comprised of the term “leading personnel” under the Companies Act. Changes in leading personnel During 2024 the following changes were done to the leading personnel of the Company: Mr. Moritz Fuhrmann was appointed as Co-CEO of MPCC alongside Mr. Constantin Baack. Since Mr. Fuhrmann’s appointment as CFO in 2022, he has been a driving force behind several key measures that have successfully improved the Company’s balance sheet and financial performance. In his responsibility as Co-CEO & CFO Mr. Fuhrmann has been given the shared responsibility to run and develop the Company together with Mr. Baack. Remuneration elements Base Salary Attract and retain qualified employees with the skills and experience needed. Basic salary and other fixed components such as pension, insurance and benefits are competitive, but not market leading. Leading personnel do not get any extra remuneration for positions or directorships held in MPC Container Ships or its subsidiaries. Pension, insurance programs and Benefits in kind Benefits in kind are offered to align with local market conditions and is offered as addition to fixed salary. The Company also offer competitive benefits including post-employment planning to be competitive in different markets. Severance To secure a pay guarantee if any leading personnel must leave the Company, enhancing the company’s attractiveness towards these positions. Short term incentive – STI (Annual variable pay) To drive a strong performance culture, the company offer an annual variable pay rewarding individuals linked to personalized annual achievements. The targets are linked to the Group’s financial and non-financial performance, which shall help to achieve the company’s short- and long-term goals. Long term incentive (LTI) Leading personnel are participants in the long-term incentive scheme in force for MPCC. The aim is to strengthen the alignment of the Company’s leading personnel, senior executives’ and shareholders’ long-term interests. A long-term incentive scheme also contributes to being an attractive employer for executive management and senior executives, ensuring continuity on leading personnel and senior executive level, which will enhance the executive and achievement of the Company’s long-term goals. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 43 43 From the Boardroom From the Boardroom | Remuneration Report From the Boardroom | Remuneration Report The guidelines for remuneration that the Company has adopted in 2023 The overall objective of the management remuneration policy of the Company is to attract, retain and motivate employees with the skills, qualifications and experience needed to maximize value creation for the Company and its shareholders. The Company shall offer competitive terms to leading personnel. Subject to this, the remuneration of the Company’s leading personnel shall as far as possible be in line with the market level for remuneration of leading personnel in comparable companies. The remuneration of leading personnel shall not be of a size or nature which is liable to harm the Company’s reputation. The remuneration of the Company’s leading personnel may in addition to a fixed salary include customary benefits in kind such as car allowance or company car, coverage of telephony and broadband costs, newspaper subscriptions etc. The remuneration may also include pension and insurance schemes as well as severance pay entitlements. The Board may establish bonus schemes for leading personnel. The purpose of any such variable bonus scheme shall be to give management an incentive to contribute to value creation in the Company and its subsidiaries. The long-term incentive scheme is options granted to key employees. This LTIP scheme is contingent upon the approval of the proposed amendment to the Company’s Remuneration Policy at the Company’s Annual General Meeting in 2025. In the event that the General Meeting does not approve the proposed Remuneration Policy, there will be a compensation as a bonus payment. The bonus payment will be a NOK amount calculated as the number of Option Shares accrued by the Option Holder up to the date of the General Meeting multiplied by 20. This payment will be made regardless of the prevailing share price at that time, provided that all other conditions for the granting of Options are met. The remuneration policy for leading personnel during 2024 has been in accordance with the principles described above. Information on remuneration to leading personnel during 2024 is included in Note 8.2 to the annual accounts. Remuneration to leading personnel Leading personnel currently hold contracts within the MPC Container Ships ASA as well as in the German entity, MPC Container Ships GmbH & Co. KG. The below table shows the total overview of all remuneration components aggregated for 2024‌ 1 . The remuneration to leading personnel amounts to USD 2.1 million in 2024. Aggregated remuneration from MPC Container Ships in 2024 Name of Director (start/end) Period Fixed remuneration Variable remuneration Extra-ordinary items Pension expense Total remuneration Proportion of fixed and variable remuneration Base salary Other benefits STI LTI Constantin Baack (CEO) 01.01.2024–31.12.2024 401,182 15,600 340,359 76,568 - - 833,709 Fixed/variable: 50.0%/50.0% Moritz Fuhrmann (Co-CEO & CFO) 01.01.2024–31.12.2024 287,257 - 340,359 76,568 104,000 - 808,184 Fixed/variable: 40.8%/59.2% Christian Rychly (COO) 01.01.2024–31.12.2024 249,600 10,400 156,000 54,691 - - 470,691 Fixed/variable: 55.2%/44.8% 1 The salaries are paid in EUR from MPC Container Ships ASA and MPC Container Ships GmbH & Co. KG Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 44 44 From the Boardroom From the Boardroom | Remuneration Report From the Boardroom | Remuneration Report Total Remuneration Distribution of fixed compensations and variable compensations 2024 Remuneration paid in relation to the Guidelines. See our guidelines in the section above. Total remuneration paid compared to the Guidelines A prerequisite for a successful implementation of the Company’s business strategy and securing the Company’s long-term interests, including sustainability, is that the Company is able to recruit and retain qualified personnel. To achieve this, it is necessary for the Company to offer competitive remuneration. The Company’s remuneration guidelines enable the Company to offer leading personnel a competitive total remuneration. Total remuneration to leading personnel during 2024 has complied with the Company’s guidelines for remuneration. The STIP is a cash-based incentive program that pays variable compensation based on performance of predefined goals. The program uses a balanced scorecard method that considers both financial and non-financial measures. The financial measures are linked to financial KPIs such as Net Profit and Free Cash Flow (adjusted for dividends). The non-financial measures are linked to the Groups ESG performance, such as the fleets Carbon Intensity Indicator (CII) rating. There is also an individual component. In October 2024, the Board of the Company resolved to introduce an employees’ option program for its key employees of the Company and its subsidiaries as a LTIP. The program allows each option holder the right to acquire one ordinary share of the Company and the purchase price shall be equal to par value of a share at the time of exercise, which is from 1 July 2028. Correspondingly, the option shall be vested in full and exercisable in four years, i.e. July 2028. Under the share option arrangement, in the event of dividends or other distributions in cash or in kind are made to shareholders of the Company from 1 July 2024, such distributions shall be made to the option holder as if the option shares were delivered to the holder prior to the record date for the distribution. If the options were not vested at the time of distribution, then the distribution shall be withheld by the Company until vesting and paid together with the option shares. The option program is subject to the 2024’s Annual General Meeting which is to be held in May 2025. If the program is not approved, no options shall be vested but instead each option holders shall be compensated as bonus payment in cash. Remuneration of Board and Committee members Remuneration of board and nomination committee members are awarded one year in arrears and includes only fixed remuneration. 99.98% of the voting shares present at the Annual General Meeting voted for the proposed remuneration for Board members in 2024. The tables below show the actual remuneration in USD. As of year-end 2024, one board member had additional roles as Chair of the Risk, Audit and Sustainability Committee. Board USD amount approved by the AGM in 2024 for the FY 2024 and paid following the AGM on 8 May 2025 USD amount to be approved by the AGM on 8 May 2025 for the FY 2025 and paid following the AGM in 2026 Ulf Hollander (Chairman) 90,000 90,000 Dr. Axel Schroeder (Board member – resigned 12.12.24) 47,397 - Ellen Hanetho (Board member and Chair of RASC) 50,000, 5,000 50,000, 5,000 Peter Frederiksen (Board member) 50,000 50,000 Pia Meling (Board member) 50,000 50,000 Petros Panagiotidis (Board member – from 18.12.24) 1,781 50,000 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 45 45 From the Boardroom From the Boardroom | Remuneration Report From the Boardroom | Remuneration Report Appendix The tables below show detailed remuneration in USD to the Company’s leading persons which have been earned or paid by the Company for the last 5 years‌ 1 . Name of Director & role Period 2020 2021 2022 2023 2024 Constantin Baack (CEO) Since inception of the company 505,330 5,812,624 775,927 1,239,446 833,709 Moritz Fuhrmann (Co-CEO & CFO) Since 01.12.2022 - - 27.964 494,587 808,184 Christian Rychly (COO) Since 01.01.2024 - - - - 470,691 The tables below show the remuneration in USD for past leading personnel. Name of Director & role Period 2020 2021 2022 2023 2024 Dr. Benjamin Pfeifer (CFO) From 01.01.2021 until 31.03.2023 - 403,453 377,826 81,235 - Harald Wilke (CFO) Until 30.06.2020 377,323 - - - - 1 The salaries are paid in EUR from MPC Container Ships ASA and MPC Container Ships GmbH & Co. KG Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 46 46 From the Boardroom From the Boardroom | Remuneration Report From the Boardroom | Remuneration Report Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 47 47 From the Boardroom From the Boardroom | Remuneration Report From the Boardroom | Remuneration Report Financial Statements Consolidated Financial Statements 49 Parent Financial Statements 83 Responsibility Statement 94 Auditor’s Report 95 Alternative Performance Measures 97 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 48 48 Financials Financials Financials Consolidated Financial Statements Consolidated Statement of Profit or Loss 50 Consolidated Statement of Comprehensive Income 51 Consolidated Statement of Financial Position 52 Consolidated Statement of Changes in Equity 53 Consolidated Statement of Cash Flow 54 Notes 55 Note 1 Accounting Principles 55 1.1 Accounting Principles for the Consolidated Financial Statements 55 1.2 Significant Judgement, Estimates and Assumptions 56 Note 2 Financial Performance 57 2.1 Segment Information 57 2.2 Revenues and Other Revenues 57 2.3 Vessel Voyage Expenditures 58 2.4 Vessel Operating Expenditures 59 2.5 Other Operating Expenses 59 2.6 Gain (loss) from Sale of Vessels and Other Property, Plant and Equipments 59 2.7 Financial Items 60 2.8 Earnings Per Share 61 Note 3 Income Taxes 61 3.1 Income Tax Reconciliation 61 Note 4 Net Working Capital 63 4.1 Trade and Other Current Assets 63 4.2 Deferred Revenues and Other Liabilities 63 Note 5 Tangible Assets 64 5.1 Vessels and Newbuildings 64 5.2 Depreciation, Amortization and Impairment Charges 67 Note 6 Group Structure 68 6.1 Investments in Joint Venture and Associate 68 6.2 Group Companies 69 Note 7 Capital Structure and Financial Instruments 71 7.1 Financial Risk Management 71 7.2 Financial Instruments 72 7.3 Cash and Cash Equivalents 75 7.4 Interest-Bearing Debt 75 7.5 Equity 78 7.6 Capital Management 79 Note 8 Other Notes 80 8.1 Commitment 80 8.2 Related Party and Key Management Compensation 81 8.3 Subsequent Events 82 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 49 49 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Consolidated Statement of Profit or Loss in USD thousands Notes 2024 2023 Operating revenues 2.2 540,860 711,282 Commissions (14,433) (20,000) Vessel voyage expenditures 2.3 (19,195) (9,898) Vessel operation expenditures 2.4 (155,844) (153,390) Ship management fees (9,865) (9,999) Share of profit or loss from joint venture 6.1 (395) 22,637 Gross profit 341,128 540,632 Administrative expenses 2.5 (17,732) (14,805) Other expenses (3,861) (9,338) Other income 8,044 3,089 Gain (loss) from sale of vessels and other property, plant and equipments 5.1 21,145 (1,208) Depreciation 5.2 (71,139) (102,706) Impairment 5.2 - (79,378) Operating profit 277,585 336,286 Finance income 2.7 9,422 7,841 Finance cost 2.7 (20,636) (18,373) Profit (loss) before income tax 266,371 325,754 Income tax expenses 3.1 323 (638) Profit (loss) for the period 266,694 325,116 Attributable to: Equity holders of the Company 7.5 266,683 324,961 Non-controlling interest 7.5 11 155 Basic earnings per share – in USD 2.8 0.60 0.73 Diluted earnings per share – in USD 2.8 0.60 0.73 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 50 50 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Consolidated Statement of Comprehensive Income in USD thousands Notes 2024 2023 Profit (loss) for the period 266,694 325,116 Other comprehensive income 583 (1,368) Items which may subsequently be transferred to profit or loss: Change in hedging reserves, net of taxes 7.2 , 7.5 583 (1,368) Total comprehensive profit (loss) 267,277 323,748 Attributable to: Equity holders of the Company 267,266 323,593 Non-controlling interest 11 155 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 51 51 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Consolidated Statement of Financial Position in USD thousands Notes December 31, 2024 December 31, 2023 Assets Non-current Assets Vessels 5.1 1,003,460 691,291 Newbuildings 5.1 , 8.1 44,344 78,980 Right-of-use asset 264 84 Investments in associate and joint venture 6.1 5,245 2,934 Total non-current assets 1,053,313 773,289 Current Assets Vessel held for sale 5.1 - 25,165 Inventories 7,206 8,088 Trade and other current assets 4.1 37,735 23,667 Financial instruments at fair value 7.2 1,060 1,951 Restricted cash 7.3 6,364 5,005 Cash and cash equivalents 7.3 125,696 117,579 Total current assets 178,061 181,455 Total assets 1,231,374 954,744 in USD thousands Notes December 31, 2024 December 31, 2023 Equity and liabilities Equity 7.5 Share capital 48,589 48,589 Share premium 1,879 1,879 Other paid-in capital 8.2 286 - Retained earnings 762,602 700,021 Other reserves (260) (843) Non-controlling interest 4,524 3,835 Total equity 817,620 753,481 Non-current Liabilities Non-current Interest-bearing debt 7.4 299,237 92,951 Lease liabilities – long-term 79 - Deferred tax liabilities - 748 Total non-current liabilities 299,316 93,699 Current Liabilities Current interest-bearing debt 7.4 44,037 33,564 Trade and other payables 12,632 20,397 Derivative financial instruments 7.2 101 - Related party payables 8.2 72 1,062 Income tax payable 3.1 164 289 Deferred revenues 4.2 29,706 35,230 Other liabilities 4.2 27,726 17,022 Total current liabilities 114,438 107,564 Total equity and liabilities 1,231,374 954,744 Oslo, April 9, 2025 The Board of Directors and Chief Executive Officer of MPC Container Ships ASA Electronically signed Ulf Stephan Holländer Chairman of the Board Ellen Merete Hanetho Member of the Board Peter Frederiksen Member of the Board Pia Meling Member of the Board Petros Panagiotidis Member of the Board Constantin Baack CEO Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 52 52 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Consolidated Statement of Changes in Equity in USD thousands Notes Share capital Share premium Other paid in capital Retained earnings Other reserves Total equity attributable to the equity holders of the Company Non-controlling interest Total equity Equity as at January 1, 2024 48,589 1,879 - 700,021 (843) 749,646 3,835 753,481 Result of the period - - - 266,683 - 266,683 11 266,694 Other comprehensive income - - - - 583 583 - 583 Total comprehensive income - - - 266,683 583 267,266 11 267,277 Dividends provided for or paid 7.5 , 7.6 - - - (204,102) - (204,102) (257) (204,359) Share-based payment 8.2 - - 286 - - 286 - 286 Addition from non-controlling interest 7.5 - - - - - - 935 935 Equity as at December 31, 2024 48,589 1,879 286 762,602 (260) 813,096 4,524 817,620 Equity as at January 1, 2023 48,589 152,737 - 517,044 525 718,895 2,551 721,447 Result of the period - - - 324,961 - 324,961 155 325,116 Other comprehensive income - - - - (1,368) (1,368) - (1,368) Total comprehensive income - - - 324,961 (1,368) 323,593 155 323,748 Dividends provided for or paid 7.5 , 7.6 - (150,858) - (141,984) - (292,842) (292) (293,134) Addition from non-controlling interest 7.5 - - - - - - 1,421 1,421 Equity as at December 31, 2023 48,589 1,879 - 700,021 (843) 749,646 3,835 753,481 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 53 53 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Consolidated Statement of Cash Flow in USD thousands Notes 2024 2023 Profit (loss) before income tax 266,371 325,754 Income tax expenses paid - (783) Net change inventory and trade and other current assets (13,004) (1,171) Net change in trade and other payables and other liabilities 9,155 (9,710) Net change other non-current assets and other non-current liabilities 4,238 - Net change in deferred revenues (5,524) (4,903) Depreciation 71,139 102,706 Share-based payment 286 - Finance costs (net) 11,214 10,532 Share of profit (loss) from joint venture 395 (22,637) Impairment - 79,378 (Gain)/loss from sale of vessels and other property, plant and equipments (19,331) 8,185 Amortization of TC contracts (1,012) (2,717) Cash flow from operating activities 323,927 484,634 Proceeds from disposal of vessels 5.1 92,982 55,653 Scrubbers, dry dockings and other vessel upgrades 5.1 (56,226) (48,254) Newbuildings instalments 5.1 (122,045) (35,100) Capitalized borrowing cost 5.1 (2,618) - Acquisition of vessels 5.1 (227,296) (169,376) Acquisition of subsidiary, net of cash 6.1 974 - Interest received 5,258 3,938 Other financial inflows - 484 Dividend received from joint venture investment - 41,000 Investment in associate and joint venture 5.1 , 6.1 (4,005) (404) Cash flow from investing activities (312,976) (152,059) in USD thousands Notes 2024 2023 Dividends paid 7.6 (204,359) (293,134) Addition of non-controlling interest 935 1,421 Proceeds from debt financing 7.4 263,340 142,013 Repayment of long-term debt 7.4 (43,975) (167,397) Payment of principal of leases (185) (186) Interest paid (10,090) (13,661) Debt issuance costs 7.4 (7,082) (3,594) Other finance paid (397) - Cash from (to) financial derivatives 527 (970) Cash flow from financing activities (1,286) (335,508) Net change in cash and cash equivalents 9,665 (2,933) Net translation differences on foreign cash (189) - Restricted cash, cash and cash equivalents at the beginning of the period 122,584 125,517 Restricted cash, cash and cash equivalents at the end of the period 132,060 122,584 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 54 54 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Notes Note 1 Accounting Principles 1.1 Accounting Principles for the Consolidated Financial Statements General information MPC Container Ships ASA (“the Company”) is a public limited liability company (Norwegian: allmennaksjeselskap) incorporated and domiciled in Norway, with registered address at Ruseløkkveien 34, 0251 Oslo, Norway, and Norwegian registered enterprise number 918494316. The Company was incorporated on January 9, 2017 and commenced operations in April 2017, when the first vessels were acquired. The consolidated financial statements comprise the Company and its subsidiaries (together referred to as “the Group”). The principal activity of the Group is to invest in and to operate maritime assets in the container shipping segment. The shares of the Company are listed at the Oslo Stock Exchange under the ticker symbol MPCC. MPC Container Ships ASA is the parent company in the Group. The consolidated financial statements were approved by the Company’s Board of Directors on April 9, 2025. Basis of preparation and measurement The consolidated financial statements of MPC Container Ships ASA (the “Parent Company”), and all its subsidiaries (the “Group”), are prepared in accordance with IFRS® Accounting Standards as adopted by the European Union. The consolidated financial statements were prepared on the basis of historical cost, with some exceptions where fair value measurement is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes: +Note 7.2Financial Instruments All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: +Level 1: Quoted market prices in active markets for identical assets or liabilities. +Level 2: Inputs other than quoted market prices included in Level 1 are directly or indirectly observable. +Level 3: Inputs are unobservable. The Group has prepared the financial statements on the basis that it will continue to operate as going concern. Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in the consolidated financial statements are denominated in US dollars (USD), which is the functional currency of the parent company of the Group. All financial information presented in USD has been rounded to the nearest thousand USD, except otherwise indicated. The Group’s financial year corresponds to the calendar year. Basis of consolidation The consolidated financial statements include MPC Container ASA and its subsidiaries in which the Company exercises control. The financial statements of the subsidiaries are prepared for the same reporting period as the Group, using consistent accounting policies. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 55 55 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Subsidiaries Subsidiaries are all companies where the Group has a controlling interest. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. Companies that constitute the Group are listed in Note 6.2Group Companies. Accounting principles related to joint ventures, associated companies are presented in Note 6.1Investments in Joint Venture and Associate. Foreign currency translation In accordance with IAS 21, foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transaction. Financial reporting principles The material financial reporting principles are described in the relevant notes in the consolidated financial statements and in the notes in the financial statements of the parent company. The Group presents assets and liabilities in the statement of financial position based on the current or non-current classification. The cash flow statement of the Group is prepared using the indirect method. Liquid assets include cash, bank deposits (restricted and unrestricted) and other short-term investments which can be converted within 3 months. New and amended standards and interpretations The Group’s intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the consolidated financial statements are issued. The following amendments became available as at January 1, 2024; +Amendments to IAS 1 – Classification of Liabilities as Current or Non-current +Amendment to IFRS 16 – Leases on sale and leaseback +Amendment to IAS 7 and IFRS 7 – Supplier finance The above new or amended accounting standards did not have a material impact on the consolidated financial statements or relevant for the Group. Standards issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. +Amendments to IAS 21 – Lack of Exchangeability +Amendment to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments +IFRS 18 – Presentation and Disclosure in Financial Statements +IFRS 19 – Subsidiaries without Public Accountability: Disclosures Management assesses that none of the issued standards (except IFRS 18) and amendments not yet in effect will materially impact the recognition and measurement policies of the Group. The Group has initiated but has not yet completed its analysis of the impact of IFRS 18 on the Group’s financial statement and accompanying notes. 1.2 Significant Judgement, Estimates and Assumptions The preparation of consolidated financial statements conforming to IFRS® Accounting Standards requires management to make judgments, estimates and assumptions that may affect assets, liabilities, revenues, expenses and information in notes to these financial statements. Estimates are management’s best assessment based on information available at the date the financial statements are authorized for issue. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future periods. Estimates and underlying assumptions are reviewed on an on-going basis. The main areas where judgements and estimates have been made are prescribed in each of the following notes: +Note 5.1Vessels and Newbuildings +Note 5.2Depreciation, Amortization and Impairment Charges Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 56 56 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Note 2 Financial Performance 2.1 Segment Information Accounting policy Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers in the Group. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of the Company. All of the Group’s vessels earn revenue from a single market, which is the seaborne container transportation. The vessels exhibit similar economic, trading and financial characteristics. The Group is organized in one reportable operating segment, i.e. the container shipping segment. Our vessels operate globally and therefore managment does not evaluate performance by geographical region, and is therefore considered to be only one operating segment. The Group,neverthelss, provides geographical data on revenue for disclosure purposes only. The table below shows time charter revenues per geographical region. in USDthousands 2024 2023 Intra-Asia 154,742 156,789 South America 136,776 216,364 Europe 25,677 37,762 Middle East 115,561 190,633 Africa 31,131 30,904 Other geographical locations (worldwide trades) 64,547 68,258 Total time charter and pool revenue 528,434 700,710 For the year ended December 31, 2024, the Group had four customers (2023: three) who each accounted for 10% or more for our consolidated revenues in the amount of USD 52.3 million, USD 53.3 million, USD 53.8 million and USD 151.6 million respectively (2023: USD 75.6 million, USD 91.9 million and USD 127.9 million respectively). These four customers accounted for 42% of the total revenues for 2024 (2023: 42%). 2.2 Revenues and Other Revenues Accounting policy Revenue recognition The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers‘ use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group’s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels’ useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under “Deferred revenue” in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group’s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the “point in time principle. From January 1, 2024 and onwards, the Group is subject to the EU ETS, a cap-and-trade system to reduce emissions via a carbon market. Implementation of EU ETS requires the Group to purchase EU allowances (EUAs) representing the right to emit a specific amount of greenhouse gases. The Groups time charter contracts may include ETS clauses which give the right to receive the cost of EUAs to the charterer. The revenue relating to EUAs is recorded as time charter revenue, while the cost for EUAs is expensed as vessel voyage expenses. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 57 57 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements in USD thousands 2024 2023 Time charter revenues 522,424 700,710 Emission revenues 6,009 - Total Charter revenues 528,434 700,710 Amortization of time charter contracts 1,012 2,716 Other revenues 11,414 7,855 Total operating revenues 540,860 711,282 When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In 2024, seven vessel was index-linked (2023: four) and four vessels were on variable rate time charter (2023: four). The lease and non-lease components of our revenues in the year ended December 31, 2024 and December 31, 2023 were as follows: in USD thousands 2024 2023 Service element 151,665 152,897 Other revenues 11,414 7,855 Total revenue from customer contracts 163,079 160,752 Lease elements 376,769 547,813 Amortization of time charter contracts 1,012 2,716 Total operating revenues 540,860 711,282 Contracted revenues based on fixed time charter contracts as at December 31, 2024 are set out below, based on minimum contract periods of vessels held in subsidiaries: in USD thousands < 1 year 1–3 years 4–5 years > 5 years Total TCE 438,536 383,277 70,071 157,825 1,049,709 Contracted revenues based on fixed time charter contracts as at December 31, 2023 are set out below, based on minimum contract periods of vessels held in subsidiaries: in USD thousands < 1 year 1–3 years 4–5 years > 5 years Total TCE 436,899 346,844 56,837 155,274 995,853 2.3 Vessel Voyage Expenditures Accounting policy Voyage expenses are expensed as incurred and primarily consist of port charges, bunker costs (bunker costs are normally covered by the Group’s charterer, except in certain cases such as vessel re-positioning, or under repair and maintenance, or when the vessels have been idle), address commissions, brokerage commissions and emission cost. in USD thousands 2024 2023 Bunker consumption (9,967) (7,715) Other voyage expenses (3,132) (2,183) Emission cost (6,096) - Total vessel voyage expenditures (19,195) (9,898) Commission (14,433) (20,000) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 58 58 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements 2.4 Vessel Operating Expenditures Accounting policy Vessel operating expenses are expensed as incurred and include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance. Operating expenses are related to the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Vessel operating expenditures which are partially compensated by income from reimbursements from the charterer and are being recognized as other revenues. in USD thousands 2024 2023 Crew (72,686) (74,769) Lube oil (7,609) (9,189) Maintenance and repair (56,721) (48,670) Insurances (13,761) (15,983) Operating expenditures (5,068) (4,780) Total Vessel operation expenditures (155,844) (153,390) 2.5 Other Operating Expenses Accounting policy Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees. Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC Münchmeyer Petersen Capital AG which are part of the Group’s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands. in USD thousands 2024 2023 Legal and advisory services (3,192) (2,869) Audit and accounting services (756) (1,045) Salary and employee expenses (8,270) (5,989) Other administrative expenses (5,515) (4,901) Total administrative expenses (17,732) (14,805) The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services: in USD thousands 2024 2023 Audit fee (703) (670) Attestation services (12) (6) Total auditor services (714) (676) 2.6 Gain (loss) from Sale of Vessels and Other Property, Plant and Equipments Accounting policy Vessels and other property, plant and equipments are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognized. IN USD THOUSANDS 2024 2023 Gain(loss) from sale of vessels 23,359 (1,208) Gain(loss) from disposal of other property, plant and equipments (2,214) - Total Gain (loss) from sale of vessels and other property, plant and equipments 21,145 (1,208) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 59 59 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements In the first quarter of 2024, the Group delivered and completed the sale of its three previously held for sale vessels, AS Petra, AS Paulina and AS Pauline to an unrelated party. The Group recognized a loss on the sale of vessels of USD 0.2 million in the first quarter of 2024. In April 2024, the Group sold its wholly-owned 2007-built AS Nadia and 2009-built sale and leaseback vessel, AS Ragna collectively to an unrelated party for USD 25.5 million. The Group recorded a gain on the sale of USD 6.4 million. In July 2024, the Group completed the sale of its wholly-owned 2006-built AS Clarita to an unrelated party for USD 10.3 million. The Group recorded a gain of USD 2.0 million on the sale of vessel. In August 2024, the Group agreed to sell its sale and leaseback vessel, 2008-built AS Fatima to an unrelated party for USD 11.8 million. The sale of AS Fatima was completed in September 2024. As a result, the Group recorded a gain on the sale of USD 4.2 million. In December 2024, the Group completed the sale of 2005-built vessel, AS Paola to an unrelated party for USD 20.6 million. The Group recorded a gain of USD 11.0 million on the sale of vessel. In December 2024, the Group entered into agreement to sell its wholly-owned 2005-built vessel, AS Fenja for USD 8.6 million to an unrelated party. The sale of the vessel was completed in January 2025. In 2023, the Group sold and delivered six wholly-owned vessels (AS Rosalia, AS Romina, AS Flora, AS Roberta, AS Rafaela and AS Emma) for a total sales price of USD 58.0 million. The Group recorded USD 1.2 million as losses upon the delivery of the vessels. See also Note 5.2Depreciation, Amortization and Impairment Chargesfor information about impairment in 2023. 2.7 Financial Items Accounting policy Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate. Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities. in USD thousands 2024 2023 Interest income 4,291 2,819 Other finance income 5,131 5,022 Total finance income 9,422 7,841 Interest expenses (16,365) (14,648) Bank fees on early repayment of debt (685) (904) Other finance cost (3,586) (2,821) Total finance cost (20,636) (18,373) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 60 60 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements 2.8 Earnings Per Share Accounting policy The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share are calculated by dividing the profit for the reporting period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period. Diluted earnings per share are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31: in USD thousands 2024 2023 Profit/(loss) for year attributable to ordinary equity holders – in USD thousands 266,683 324,961 Weighted average number of shares outstanding, basic 443,700,279 443,700,279 Weighted average number of shares outstanding, diluted 443,700,279 443,700,279 Basic earnings per share – in USD 0.60 0.73 Diluted earnings per share – in USD 0.60 0.73 Note 3 Income Taxes 3.1 Income Tax Reconciliation Accounting policy Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities. The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway. The Company’s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures. Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 61 61 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements in USD thousands 2024 2023 Income taxes paid/payable (425) (692) Change in deferred tax asset 748 55 Other taxes - - Income tax expense 323 (637) Specification of corporate income tax expense Basis for ordinary corporation tax expense Profit(loss) before taxes 266,371 325,754 Nominal tax rate 22% 22% Expected tax at nominal tax rate (58,602) (71,666) Tax effect of reconciling items Income tax exempted from corporate tax under the tonnage regime 62,132 70,046 Share of result in joint venture (87) 4,980 Change in temporary differences recognized 3,398 - Change in temporary differences not recognized (6,518) (4,747) Other permanent differences/exchange translation differences - 750 Income tax expense 323 (637) Recognized on the statement of financial position: Deferred tax assets - - Deferred tax liabilities - (748) Income taxes payable (164) (289) Temporary differences Foreign exchange differences on translation to local currency for tax reporting - (3,398) Net basis for deferred tax liabilities: - (3,398) The parent company (MPC Container Ships ASA) is under ordinary taxation rules in Norway. The ordinary rate of corporation tax in Norway is 22% for 2024 (2023: 22%). Refer to Note 6Income Taxin the Parent Financial Statement. The parent company and other holding companies within the group may have individual tax losses each year, which generate carry forward losses for the individual companies. Deferred tax assets are only recognized to the extent that the future utilization within the Group can be justified as at December 31, 2024. As a consequence, a tax position of USD 63.0 million (2023: 66.9 million) relating to carry forward losses has not been recognized in the balance sheet. The Group has assessed the revenue threshold for both 2023 and 2024 and concluded that the OECD Pillar Two model rule would not be applicable for the Group’s consolidated financial statement. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 62 62 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Note 4 Net Working Capital 4.1 Trade and Other Current Assets Accounting policy Trade and other current assets Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group’s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group’s claims covered by insurance agreements where the virtually certain threshold are met. in USD thousands December 31, 2024 December 31, 2023 Trade receivables 7,893 6,310 Claims related to insurance cases 17,141 12,065 Other receivables and prepayments 7,081 5,292 Emission allowances 5,620 - Total Trade and other current assets 37,735 23,667 The Group had outstanding receivables per December 31, 2024 amounting to USD 7.9 million (2023: USD 6.3 million). Historically, the Group have not had any credit losses of significance. A significant part of the outstanding receivables is against larger liner companies, of which the Group have had a long business relationship with, which reduces the risk further. The invoiced amount is considered to be approximately equal to the value which would be derived under the amortized cost method. In 2024, the Group recognized USD 0.1 million as impairment losses, compared to USD 0.4 million in 2023. 4.2 Deferred Revenues and Other Liabilities Accounting policy Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement. Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized. The following table shows the components of other liabilities as at period end. in USD thousands December 31, 2024 December 31, 2023 Accrued expenses 13,849 13,337 Accrued salaries 3,959 1,989 Acquired TC contracts - 1,011 Accrued emission expenses 5,875 - Other short-term liabilities 4,043 685 Total Other liabilities 27,726 17,022 Deferred revenues 29,706 35,230 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 63 63 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Note 5 Tangible Assets 5.1 Vessels and Newbuildings Accounting policy Vessels and other property, plant and equipments Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component’s useful life on a straight-line basis. The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels. Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges. Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e. 5 years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance. Vessels held for sale Vessels are classified as “Vessels held for sale” when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale. Newbuildings Instalments on newbuilding contracts are capitalized as “Newbuildings” when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group’s current weighted average rate of borrowing. Judgement and estimates +Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively. As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 64 64 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements in USD thousands Vessels Newbuildings, additions Total Vessels and Newbuildings Vessels held-for-sale Total Cost: January 1, 2024 1,028,642 78,980 1,107,622 48,618 1,156,240 Acquisitions of vessels 227,296 - 227,296 - 227,296 Capitalized dry-docking, progress payments, expenditures 56,227 113,553 169,780 - 169,780 Disposal of vessels and other property, plant and equipments (68,943) - (68,943) (48,618) (117,561) Transfers of vessels 148,189 (148,189) - - - December 31, 2024 1,391,411 44,344 1,435,755 - 1,435,755 Accumulated depreciation and impairment: January 1, 2024 (337,351) - (337,351) (23,453) (360,804) Depreciation for the period (70,946) - (70,946) - (70,946) Disposals of vessels and other other property, plant and equipments 20,347 - 20,347 23,453 43,800 December 31, 2024 (387,950) - (387,950) - (387,950) Net book value: December 31, 2024 1,003,460 44,344 1,047,804 - 1,047,804 in USD thousands Vessels Newbuildings, additions Total Vessels and Newbuildings Vessels held-for-sale Total Cost: January 1, 2023 976,170 32,770 1,008,940 - 1,008,940 Acquisitions of vessels 169,376 - 169,376 - 169,376 Capitalized dry-docking, progress payments, expenditures 48,254 46,210 94,464 - 94,464 Disposal of vessels and other property, plant and equipments (116,540) - (116,540) - (116,540) Transfers to Vessel held for sale (48,618) - (48,618) 48,618 - December 31, 2023 1,028,642 78,980 1,107,622 48,618 1,156,240 Accumulated depreciation and impairment: January 1, 2023 (230,297) - (230,297) - (230,297) Depreciation for the period (102,504) - (102,504) - (102,504) Impairments (79,378) - (79,378) - (79,378) Disposals of vessels and other property, plant and equipments 51,375 - 51,375 - 51,375 Transfers to Vessels held for sale 23,453 - 23,453 (23,453) - December 31, 2023 (337,351) - (337,351) (23,453) (360,804) Net book value: December 31, 2023 691,291 78,980 770,271 25,165 795,436 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 65 65 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Fleet changes 2024 2023 Number of container vessels at the start of the period‌1 59 58 Aquisition of vessels‌2 6 7 Newbuildings deliveries‌3 2 - Disposal of vessels‌4 (5) (6) Vessels held for sale‌5 (3) - Number of container vessels at the end of the period‌1 59 59 1 Number of vessels does not include vessels owned by joint ventures 2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC Münchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction. In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025. In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024. In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract. 3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively. 4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information 5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024. As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023: USD 15.6 million), which is due in 2025. Newbuildings: As at December 31, 2024 the Group’s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group’s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025. In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 66 66 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements 5.2 Depreciation, Amortization and Impairment Charges Accounting policy Impairment of vessels Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels’ carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm’s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset. The following assumptions have been made when calculating the value in use for container vessels: +Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value. +The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium. An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Judgement and estimates +The carrying amounts of our vessels are reviewed for potential impairment charges whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount. Management continuously monitors both external and internal factors to determine if there are indicators that the vessels may be impaired or, in case of previously recognized impairment, that there are indicators that this may be reversed. The factors evaluated in the assessment include both external and internal sources of information. External sources include a significant decline in market value that is not the result of the passage of time, normal use of the assets, depressed charter rates or increase in market interest rates. Internal sources of information include, among others, evidence of obsolescence of, or physical damage to the vessels. +As we obtain information from various industry and other sources, our estimates of charter-free market value of our vessels are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may not be indicative of the current or future charter-free market value of our vessels or prices that we could achieve if we were to sell them. Climate risk +Management continuously monitors climate related risks when assessing indicators of impairment. Future climate change measures may affect the shipping industry regarding fuel regulation, port fees and the recycling values of the vessels. Potential future fuel taxes or carbon emission regulation such as EU’s emission trading system (EU ETS) or development of new more climate friendly fuel may increase the future operating expenses or capex of the Group that may be only partly offset by higher time charter rates. Technological developments enabling more climate friendly container vessels may affect the ability to obtain new charters in the future, the potential useful life of the vessels and the recycle values of the vessels. These effects may result in indicators of impairment or impairment losses of our vessels due to lower recycling value from mandatory EU approved yards, or generating less cash-flow from not reaching regulatory targets. Impairment testing and calculation of recoverable amount As at December 31, 2024, management did not identify any events or changes in circumstances indicating that the carrying amounts of our owned vessels might not be recovered. As such, no further impairment test was performed. As at December 31, 2023, management identified impairment indicators for our vessels, in which an impairment test was performed and resulted in the Group recognizing impairment losses of USD 79.4 million. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 67 67 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Note 6 Group Structure 6.1 Investments in Joint Venture and Associate Accounting policy Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group’s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group’s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received. in USD thousands December 31, 2024 December 31, 2023 Investment in joint venture – Bluewater - 1,703 Investment in joint venture – Palmaille 75 4,010 - Investment in other joint venture 4 - investment in associate 1,231 1,231 Total 5,245 2,934 Investment in Joint venture As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for net cash USD 1.0 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group. In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026. Palmaille 75 is not allowed to distribute its profits without the consent from the two partners. In view of the shared control structure in the joint venture, the Group’s interest in Palmaille 75 is accounted for using the equity method. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 68 68 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements The following tables shows the summarized financial information of the Group’s investment in Bluewater and Palmaille 75: IN USD THOUSANDS DECEMBER 31, 2024 DECEMBER 31, 2023 Non-current assets 7,833 - Cash and cash equivalents 185 2,148 Other current assets 3 1,450 Current liabilities - 192 Equity 8,021 3,405 Group’s carrying amount of the investment 4,010 1,703 IN USD THOUSANDS 2024‌1 2023 Operating revenues 8 14,752 Operating costs (850) (8,416) Other income (expense) - 278 Gain (loss) from sale of vessels - 39,535 Depreciation - (959) Net financial income (expense) 73 112 Income tax (21) (28) Profit after tax for the period (790) 45,275 Total comprehensive income for the period (790) 45,275 Group’s share of profit for the period (395) 22,637 Dividends received - 41,000 1 Bluewater is included for the first nine months of 2024. Investment in associate In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group’s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method. 6.2 Group Companies The Group’s consolidated financial statements include the financial statements of the Company and its subsidiaries listed in the table below. The table excludes all general partner companies and non-operating companies. Company Country Principal activity Ownership MPC Container Ships Invest B.V. Netherlands Holding company 100.00% "AS Angelina" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS California" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Carelia" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Clara" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Clementina CV" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Columbia" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Cypria" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Fabiana" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Fabrizia" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Felicia" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Filippa" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Fiorella" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Floretta" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Floriana" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Patria" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Petronia" ShipCo C.V. Netherlands Ship-owning entity 99.90% Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 69 69 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Company Country Principal activity Ownership "AS Sara" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Savanna" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Selina" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Sevillia" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Sicilia" ShipCo C.V. Netherlands Ship-owning entity 99.90% "AS Sophia" ShipCo C.V. Netherlands Ship-owning entity 99.90% MPCC Second Financing GmbH & Co. KG Germany Holding company 100.00% "AS Serena" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Carlotta" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Christiana" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Sabrina" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Samanta" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Susanna" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Svenja" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Anita" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Alexandria" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Pamela" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Pia" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Nora" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Caspria" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% MPCC Fourth Financing GmbH & Co. KG Germany Holding company 100.00% "AS Anne" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Stine" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Silje" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Simone" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Sabine" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% MPCC Third Financing AS Norway Holding company 100.00% "AS Fenja" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Freya" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% Company Country Principal activity Ownership "AS Penelope" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% Zweite "AS Palina" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Constantina" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% MPCC Alva AS Norway Ship-owning entity 100.00% MPCC GREENBOX AS Norway Holding company 90.10% MPCC NORDLAND AS Norway Ship-owning entity 90.10% MPCC VESTLAND AS Norway Ship-owning entity 90.10% MPCC NCL Ammonia AS Norway Holding company 50.00% MPC ECOBOX OPCO 5 GmbH & Co. KG Germany Ship-owning entity 100.00% MPC ECOBOX OPCO 6 GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Carolina" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Franziska" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Nina" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Claudia" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Camellia" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Nuria" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Nara" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Ninette" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Nele" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Nanne" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% "AS Natalie" Schifffahrtsgesellschaft GmbH & Co. KG Germany Ship-owning entity 100.00% AS Shipping OpCo 2 GmbH & Co. KG Germany Holding company 90.00% Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 70 70 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Note 7 Capital Structure and Financial Instruments 7.1 Financial Risk Management This section provides additional information about the Group’s policies that are considered most relevant in understanding the operations and management of the Group, in particular objectives and policies of how the Group manages its financial risks, liquidity positions and capital structure. The Group owns and operates vessels for worldwide transportation of containerised cargo. Through its operation, the Group is exposed to market risk, credit risk, liquidity risk and other risks that may negatively influence the value of assets, liability and future cash flows. Market risk Market risk from financial instruments is the risk that future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise four types of risk: interest rate risk, foreign currency risk, credit risk and price risk. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating interest rates, i.e. interest payable on the bond issued and the non-recourse senior secured term loan depends on the short-term SOFR. An increase of the short-term SOFR rate by 100 basis points would cause the Group’s annualized interest expenses to increase by USD 2.1 million on a net debt basis (total interest-bearing net minus cash and cash equivalents including restricted cash). Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of most of the entities in the Group is USD, and the Group has only minor currency risk from its operations since all income and all major vessel costs are in USD. However, the Group has exposure to EUR and NOK as parts of administration and vessel operating expenses and a portion of cash and cash equivalents, other short-term assets, trade payables and provisions and accruals are denominated in EUR and NOK. Currently, currency derivatives have been entered into to mitigate this risk, see further in Note 7.2Financial Instruments. The Group is subject to price risk related to the charter market for feeder container vessel which is uncertain and volatile and will depend upon, among other things, the global and regional macroeconomic developments. In addition, the future financial position of the Group depends on valuations of the vessels owned by the Group. Currently, no financial instruments have been entered into to reduce this shipping market risk. The Group will normally have limited exposure to risks associated with bunker price fluctuations as the bunkers are for the charterers account when the vessels are on time charter contracts. See Board of Directors’ report for further description. Credit risk Credit risk refers to the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum credit risk exposure is related to the Group’s trade receivables of USD 7.9 million as at December 31.2024 as compared to USD 6.3 million as at December 31, 2023. It is the aim of the Group to enter into contracts with creditworthy counterparties only. Prior to concluding a charter party, the Group evaluates the credit quality of the customer, assessing its financial position, past experience and other factors. Charter hire is paid in advance, effectively reducing the potential exposure to credit risk. Bank deposits are only deposited with internationally recognized financial institutions. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations when they fall due. The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient liquidity and/or undrawn committed credit facilities at all times to meet its obligations. See Board of Directors’ report for further description with respect to liquidity risk. To ensure this, the Group continuously monitors projected cash flows using a liquidity planning tool. This includes furnishing management with weekly cash reporting, monthly liquidity forecasts and furnishing management and the Board of Directors with rolling 12–24 months liquidity forecasts. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 71 71 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024: In USD thousands < 1 year 1–3 years 4–5 years > 5 years Total Interest bearing loans and borrowings 39,757 78,048 184,535 37,091 339,431 Interest payments 25,267 39,863 28,962 12,226 106,318 Derivative financial instruments -current 101 - - - 101 Trade and other payables 12,632 - - - 12,632 Related party payable 72 - - - 72 Other liabilities¹ 27,523 - - - 27,523 Total 105,352 117,911 213,497 49,317 486,077 1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc) The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023: In USD thousands < 1 year 1–3 years 4–5 years > 5 years Total Interest-bearing debt 34,936 24,761 69,919 - 129,616 Interest payments 9,277 13,421 6,985 - 29,683 Trade and other payables 20,397 - - - 20,397 Related part payables 1,062 - - - 1,062 Other liabilities‌1 16,011 - - - 16,011 Total 81,683 38,182 76,904 - 196,769 1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc) 7.2 Financial Instruments Accounting policy The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss. For the purpose of hedge accounting, hedges are classified as: +fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or +cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions. Hedges which meet the criteria for hedge accounting are accounted for as follows: The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 72 72 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs. Set out below is a comparison by category for carrying amounts and fair values of all of the Group’s financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques. Fair value of trade receivables, cash and cash equivalents and trade payables approximate their carrying amounts measured at amortized cost due to the short-term maturities of these instruments. The fair value of interest-bearing debt is estimated by discounting future cash flows using rates for debt on similar terms, credit risk and remaining maturities. Fair value of interest-bearing debt approximates the carrying amounts as there have been no significant changes in the market rates for similar debt financing between the date of securing the debt financing and the reporting date. December 31, 2024 December 31, 2023 in USD thousands Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Trade and other current assets 37,735 37,735 23,667 23,667 Financial instruments at fair value 1,060 1,060 1,951 1,951 Restricted cash 6,364 6,364 5,005 5,005 Cash and cash equivalents 125,696 125,696 117,579 117,579 Total financial assets 170,855 170,855 148,202 148,202 December 31, 2024 December 31, 2023 in USD thousands Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities at amortized cost Interest-bearing debt: Floating rate debt 218,865 218,865 126,515 126,515 Fixed rate debt 124,409 126,317 - - Derivative financial instruments 101 101 - - Trade and other payables 12,632 12,632 20,397 20,397 Related party payable 72 72 1,062 1,062 Other liabilities‌1 27,523 27,523 16,011 16,011 Total financial liabilities 383,602 385,510 163,985 163,985 1 Excludes non-financial items in the line item Other liabilities on the Statement of Financial Position Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 73 73 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Fair value hierarchy The Group uses a hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques. The table below shows the fair value measurements for both the Group’s assets and liabilities as at December 31, 2024. in USD thousands Level 1 Level 2 Level 3 Total fair value Liabilities Floating rate debt - 218,865 - 218,865 Fixed rate debt - - 126,317 126,317 Derivative financial instruments 101 - - 101 Assets Financial instruments - 1,060 - 1,060 The table below shows the fair value measurements for both the Group’s assets and liabilities as at December 31, 2023 in USD thousands Level 1 Level 2 Level 3 Total fair value Liabilities Floating rate debt - 126,515 - 126,515 Assets Financial instruments - 1,951 - 1,951 Cash Flow Hedges The Group uses interest rate swaps, caps and collars as hedges of its exposure to interest rate fluctuations in connection with its debt and bond financing. As at December 31, 2024 the Group has three interest rate caps, as compared to three interest rate caps and two swaptions as at December 31, 2023. The table below shows the notional amounts of current and future anticipated interest-bearing debt under existing debt facilities hedged by interest-rate caps as at December 31, 2024: instrument Notiona amount Effective period Interest cap Maturity Interest-rate cap USD 45–27 million 2024–2026 4.0% December 2026 Interest-rate caps USD 15.9–2.2 million 2024–2031 4.0% May/ June 2031 instrument Notiona amount Effective period Interest cap Maturity Interest-rate cap USD 45–27 million 2024–2026 4.0% December 2026 Interest-rate caps USD 15.9–2.2 million 2024–2031 4.0% May/ June 2031 Swaptions USD 43.7–10.2 million 2024–2036 3.5% July 2024 In 2023, the Group entered into two options (swaptions) to enter into interest-rate swaps whereby the Group receives SOFR floating interest and pays a fixed interest of 3.5% on a declining notional amount starting at USD 43.7 million. If exercised, the interest-rate swaps have declining notional amounts over the period and contractual maturities in 2036. In 2024, the two swaptions were expired and as a result, the hedging relationship for both swaptions were terminated. Hence, the Group recognized the previously paid premium of USD 1.1 million that would have amortized over the swaption period as finance cost. The fair value (level 2) of the Group’s interest rate caps is the estimated amount that the Group would receive or pay to terminate the agreements as at the reporting date, considering, as applicable, the forward interest rate curves. The estimated amount is the present value of future cash flows. Fair value adjustment of the interest rate cap as at December 31, 2024 is recognized directly to Other reserves (other comprehensive income) in equity and are reclassed to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows (future interest payments) affect profit or loss. In October 2024, the Group entered into foreign currency forward contracts to hedge against in EUR. Hedge accounting has not been applied for these forward contracts as no hedge relationships were designated at inception. Currency derivatives that are not hedging instruments are valued at fair value, and any changes in value are entered in the condensed consolidated statement of profit or loss as finance income or finance cost. As at December 31, 2024, the fair value of derivative financial instruments relating to the foreign currency forward contracts is a liability of USD 0.1 million. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 74 74 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements 7.3 Cash and Cash Equivalents Accounting policy Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less. Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash. in USD thousands December 31, 2024 December 31, 2023 Bank deposits denominated in USD 93,215 106,149 Bank deposits denominated in EUR 3,113 2,194 Bank deposits denominated in NOK 617 563 Money market 35,115 13,678 Total cash and cash equivalents and restricted cash 132,060 122,584 The fair value of cash and cash equivalents at December 31, 2024 is USD 125.7 million (USD 117.6 million at December 31, 2023). Restricted cash as at December 31, 2024 was USD 6.4 million compared to USD 5.0 million as at December 31, 2023. USD 1.4 million under the senior secured credit facility is restricted cash for the solely use for required class-related maintenance on the vessels, compared to USD 3.8 million at December 31, 2023. Further, the group have USD 4.3 million (2023: USD 0.6 million) in a retention account, related to repayment on the term loan facility, and USD 0.6 million (2023: 0.6 million) is kept as minimum liquidity as required by the loan agreements described in Note 7.4Interest-bearing debt. Bank deposits earn interest at floating rates based on applicable bank deposit rates. Short-term deposits are made for varying periods, depending on the cash requirements of the Group. 7.4 Interest-Bearing Debt Accounting policy All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method. Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 75 75 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements In USD thousands Currency Facility amount Interest Maturity December 31, 2024 December 31, 2023 Senior secured credit facility USD 8,300 SOFR + 3.50% February 2027 - 4,810 Sale-leaseback financing USD 75,000 SOFR+2.6% September 2027 39,818 66,963 Term loan and credit facility USD 15,933–101,493 SOFR+1.5%-2.5% May/July 2036 92,953 8,713 Term loan facility USD 50,000 SOFR+ 2.8%-3.35%‌ July/Aug 2028 45,650 49,130 Term loan facility USD 54,460 SOFR+2.3% January/April 2036 15,560 - Term loan facility USD 30,000 SOFR+1.95% October 2028 30,000 - Senior unsecured sustainability linked bonds USD 200,000 7. 375% October 2029 125,000 - Other long-term debt incl accrued interest 3,843 256 Total outstanding 352,824 129,872 Debt issuance costs (9,551) (3,357) Total interest-bearing debt outstanding 343,273 126,515 Classified as: Non-current 299,236 92,951 Current 44,037 33,564 Total 343,273 126,515 Changes in the interest-bearing debt Changes in interest bearing debt over a period consisting of both cash effects and non-cash effects. The following is the changes in the Group’s interest-bearing debt: Non-cash changes In USD thousands Balance as at December 31, 2023 Cash flow Amortization of loan expenses Other effects Balance as at December 31, 2024 Debt to credit institution 60,397 117,367 531 (284) 178,011 Sale-leaseback financing 65,862 (27,145) 530 - 39,247 Bond Loans - 122,062 111 - 122,173 Total Interest-bearing liabilities 126,259 212,283 1,172 (284) 339,431 Non-cash changes In USD thousands Balance as at December 31, 2022 Cash flow Amortization of loan expenses Other effects Balance as at December 31, 2023 Debt to credit institution 153,171 (94,665) 1,891 - 60,397 Sale-leaseback financing - 65,687 175 - 65,862 Total Interest-bearing liabilities 153,171 (28,978) 2,066 - 126,259 In February 2023, the Group signed a senior secured term loan facility in an amount up to USD 8.3 million with OVB and it was fully drawn down as at March 31, 2023. The loan facility was used to partially finance the acquisition of the 2007-built AS Claudia. The loan facility carries an interest equivalent to the SOFR plus a margin of 350 basis points and matures in February 2027. The loan was to be repaid quarterly. In 2024, the Group repaid USD 1.1 million (2023: USD 3.5 million) and prepaid USD 3.8 million of the remaining outstanding loan. As a result, the loan was terminated as at December 31, 2024. In May 2023, the Group entered into a pre-delivery term loan facility in an amount of USD 15.9 million and post-delivery term loan facility in an amount of up to USD 101.5 million with Crédit Agricole together with K-SURE Agent. The loan facilities were used to finance the construction of two 5,500 TEU eco-design vessels, Mackenzie and Colorado, which were subsequently delivered from the yard in May and July 2024. The commercial facility with Crédit Agricole carries an interest equivalent to the SOFR plus a margin of 250 basis points and matures in 2034 while the K-SURE facility carries an interest equivalent to the SOFR plus a margin of 150 basis points and matures in 2036. Upon delivery of both vessels Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 76 76 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements in 2024, the Group repaid USD 15.9 million of the pre-delivery loan and drew USD 101.5 million of the post-delivery loan. A at December 31, 2024, USD 93.0 million remained outstanding and the carrying amount of the two vessels was USD 145.2 million. In July 2023, the Group entered into a 5-year loan facility in an amount of up to USD 50.0 million with Hamburg Commercial Bank (HCOB) to finance part of the acquisition cost of the five modern eco-design vessels, AS Anne, AS Simone, AS Stine, AS Silje, and AS Sabine. The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (SOFR) plus a margin of a range from 280 basis points to 335 basis points depending on the Loan to Value (LTV) percentage. In 2023, USD 50.0 million was drawn on the facility to pay for the vessels. In 2024, the Group repaid USD 3.5 million (2023: USD 0.9 million) of the loan facilities and there was no available undrawn amount. As at December 31, 2024, the carrying amount of the five vessels was USD 113.6 million (2023: USD 112.5 million). In September 2023, the Group entered into a sale and leaseback transactions with BoComm Leasing in an amount of USD 75.0 million for 12 of its vessels. The lease financing has a tenor of 48 months starting from September/October 2023 and carries an interest rate of SOFR plus a margin of 260 basis point, and includes purchase obligations for the 12 vessels at the end of the term. The Group is precluded from accounting for the sale of the vessels due to the purchase obligations at the end of the term which prevents the lessor from obtaining control of the vessels as such the lease has been accounted for as a secured borrowing, with the vessels recorded under “Vessels”. The amount allocated to interest expense is determined by the incremental borrowing rate or imputed interest rate. Since the transaction does not qualify as a sale as according to IFRS 15, the transferred vessels are not derecognized and was depreciated by the Group as it we were the legal owner. The proceeds of USD 75.0 million was recognized as financial liabilities. In 2024, the Group sold two of its sale and leaseback vessels, AS Fatima and AS Ragna and subsequently exercised the purchase option. As a result, the Group made principal repayments of USD 6.9 million relating to the sale of vessels and discharge the financing liabilities of both vessels. As at December 31,2024, USD 39.8 million remained outstanding with BoComm Leasing and the carrying amount of the ten vessels was USD 90.9 million (2023: USD 116.1 million). In December 2023, the Group entered into a senior secured reducing revolving loan facility of up to USD 100.0 million with HCOB, subject to finalization of the loan. The facility has a tenor of five years, and carries an interest rate of SOFR plus a margin of 295 basis points. As at December 31, 2023, no draw-down was made on this facility. In Augst 2024, the Group entered into an ECA covered term loan facility of USD 54.6 million with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings. The facility carries an interest rate of compounded risk-free rate plus a margin of 230 basis points. The facility will mature 12 years from the delivery date of the vessels. As at December 31,2024, USD 15.6 million was drawn and USD 39.9 million remained undrawn. In September 2024, the Group entered into a USD 30.0 million term loan facility with First-Citizens Bank & Trust Company (First Citizens) relating to the financing of the acquisition of AS Nara and AS Nuria. The loan facility carries an interest equivalent to adjusted term SOFR plus a margin of 195 basis points and matures in October 2029. The loan was fully drawn in October 2024, and no repayment was made as at December 31, 2024. In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%. The following main financial covenants are defined in the terms of the credit facility agreement with Crédit Agricole, Deutsche Bank, First Citizens, the unsecured sustainability bond and HCOB: +The Parent company (MPC Container Ships ASA) shall maintain a minimum equity ratio of 40% throughout the term loan +The consolidated liquidity in the Group shall maintain a minimum liquidity of USD 250.000 per consolidated vessel throughout the term loan The Group is in compliance with all loan and credit facility covenants as at December 31, 2024. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 77 77 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements 7.5 Equity Accounting policy Profit distribution includes dividends approved by the Board of Directors’ Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group’ shareholders at the Board of Directors’ Meeting. Costs related to share issuances are recognized directly in equity. Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings. Share Capital Number of shares Share capital (USD thousands) Other paid-in capital (USD thousands) Share premium (USD thousands) Retained earnings (USD thousands) Non-controlling interest (USD thousand) At January 1, 2024 443,700,279 48,589 - 1,879 700,021 3,835 Dividend paid - - - - (204,102) (257) Share-based payment - - 286 - - - Addition from non-controlling interest - - - - - 935 Result for the period - - - - 266,683 11 At December 31, 2024 443,700,279 48,589 286 1,879 762,602 4,524 Number of shares Share capital (USD thousands) Other paid-in capital (USD thousands) Share premium (USD thousands) Retained earnings (USD thousands) Non-controlling interest (USD thousand) At January 1, 2023 443,700,279 48,589 - 152,737 517,044 2,551 Dividend paid from share premium - - - (150,858) (141,984) (292) Addition from non-controlling interest - - - - - 1,421 Result for the period - - - - 324,961 155 At December 31, 2023 443,700,279 48,589 - 1,879 700,021 3,835 The share capital of the Company consists of 443,700,279 shares as at December 31, 2024, with nominal value per share of NOK 1. All issued shares are of equal rights and are fully paid up. In July 2022, the Group entered into a contract to purchase two new carbon-neutral 1300 TEU newbuildings, in collaboration with Topeka MPC Maritime AS (a joint venture between Topeka Holding AS and MPC Capital AG) under MPCC Greenbox AS. Topeka MPC Maritime AS acquired a 9.9% non-controlling interest. In 2024, MPCC Greenbox AS had a capital increase where Topeka MPC Maritime AS contributed USD 0.9 million and the Company contributed USD 8.5 million as compared to total capital increase in MPCC Greenbox AS of USD 1.4 million in 2023. Furthermore, non-controlling interests as of December 31, 2024 consists of the 0.1% shares the ship managers hold in the ship-owning entities under the MPC Container Ships Invest B.V. Group. As at December 31, 2024, the non-controlling interest also includes the minority interest’s share of result within these ship-owning entities, see Note 6.2Group Companies. The table below summarizes the changes in components in other reserves. Cash flow hedging Currency translation adjustment Change in Other comprehensive income As at January 1, 2024 (1,368) (109) (1,477) Change during year 583 51 634 As at December 31, 2024 (785) (58) (843) Cash flow hedging Currency translation adjustment Change in Other comprehensive income As at January 1, 2023 - (109) (109) Change during year (1,368) - (1,368) As at December 31, 2023 (1,368) (109) (1,477) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 78 78 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Overview of the 20 largest shareholders as at December 31, 2023 Shareholder Number of shares in % Type MPC CSI GmbH 73,994,977.00 16.68% Ordinary Avanza Bank AB 16,769,060.00 3.78% Broker CLEARSTREAM BANKING S.A. 16,663,681.00 3.76% Nominee FOLKETRYGDFONDET 15,618,316.00 3.52% Ordinary State Street Bank and Trust Comp 14,383,924.00 3.24% Nominee JPMorgan Chase Bank, N.A., London 8,237,734.00 1.86% Nominee State Street Bank and Trust Comp 7,635,795.00 1.72% Nominee The Bank of New York Mellon 7,445,611.00 1.68% Nominee Nordnet Bank AB 7,112,914.00 1.60% Nominee The Bank of New York Mellon SA/NV 7,045,603.00 1.59% Nominee Brown Brothers Harriman & Co. 6,579,365.00 1.48% Nominee NORDNET LIVSFORSIKRING AS 5,599,196.00 1.26% Ordinary State Street Bank and Trust Comp 4,619,496.00 1.04% Nominee VERDIPAPIRFONDET KLP AKSJENORGE IN 4,523,884.00 1.02% Ordinary VERDIPAPIRFONDET DNB SMB 3,636,743.00 0.82% Ordinary Citibank, N.A. 3,422,477.00 0.77% Nominee Citibank, N.A. 3,168,106.00 0.71% Nominee The Bank of New York Mellon 3,144,403.00 0.71% Nominee SIX SIS AG 2,909,146.00 0.66% Nominee Interactive Brokers LLC 2,809,135.00 0.63% Nominee Total 215,319,566 48.5% 7.6 Capital Management A key objective of the Group’s capital management is to ensure that the Group maintains a capital structure in order to support its business activities and maximise the shareholder value. The Group evaluates its capital structure in light of current and projected cash flows, the state of the shipping markets, new business opportunities and the Group’s financial commitments. Capital is primarily managed on Group level. The Group monitors its capital structure using the book-equity ratio, which stands at 66.4% as at December 31, 2024 (2023: 78.9%). The Group’ s debt facilities contain certain financial covenants which require the Company or the subsidiaries to maintain the following financial covenants, minimum value of vessels, and a certain level of free cash and equity ratio. The Group aims at maintaining an equity ratio with adequate headroom to the respective covenant requirements (refer to Note 7.4Interest-Bearing Debt). in USD thousands December 31, 2024 December 31, 2023 Book equity 817,620 753,481 Total assets 1,231,374 954,744 Book-equity ratio 66.4% 78.9% In support of the Group’s objective of maximizing returns to shareholders, the Group’s intention is to pay regular dividends by way of distributing 75% of profits (loss) for the period after considering CAPEX and working capital requirements, including liquidity reserves and one-off effects. Dividends will be declared or proposed by the Board at the sole discretion of the Board and will depend upon the financial position, earnings, debt covenants, distribution restrictions, capital requirements and other factors related to the Group. The Company cannot guarantee that its Board will declare or propose dividends in the future. Furthermore, the Board may make event driven distributions based on non-recurring proceeds, such as vessel sales, by way of extraordinary dividends or share buybacks, to be applied according to the Board’s discretion. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 79 79 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements During 2024, the Group distributed dividends for a total of USD 204.4 million (2023: USD 293.1 million), which also includes distributions to non-controlling interests. The dividend was distributed with USD 204.1 million from retained earnings (2023: USD 142.0 million from retained earnings and USD 150.9 million from share premium) and USD 0.3 million (2023: USD 0.3 million) from non-controlling interests. The table below shows detail for distributions announced in 2024: Announcement date Type Cash distribution per share Ex-dividend Record Payment 27.02.2024 Recurring USD 0.13 / NOK 1.3734 19.03.2024 20.03.2024 26.03.2024 28.05.2024 Recurring USD 0.13 / NOK 1.3729 20.06.2024 21.06.2024 27.06.2024 28.08.2024 Recurring USD 0.10 / NOK 1.0583 17.09.2024 18.09.2024 24.09.2024 26.11.2024 Recurring USD 0.10 / NOK 1.1147 12.12.2024 13.12.2024 19.12.2024 The table below shows detail for distributions announced in 2023: Announcement date Type Cash distribution per share Ex-dividend Record Payment 31.01.2023 Event-driven USD 0.07 / NOK 0.7238 20.02.2023 21.02.2023 28.02.2023 28.02.2023 Recurring USD 0.15 / NOK 1.5765 23.03.2023 24.03.2023 30.03.2023 23.05.2023 Recurring USD 0.15 / NOK 1.5956 21.06.2023 22.06.2023 29.06.2023 21.08.2023 Recurring USD 0.15 / NOK 1.6118 20.09.2023 21.09.2023 28.09.2023 21.11.2023 Recurring USD 0.14 / NOK 1.5224 13.12.2023 14.12.2023 21.12.2023 Note 8 Other Notes 8.1 Commitment As at December 31, 2024, the Group’s newbuilding program consisted of two 1,300 TEU container vessels which are equipped with dual-fuel engines that are able to operate on green methanol. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, remaining commitments owned amounted to the two newbuildings were USD 38.9 million, of which USD 19.5 million is due in the first quarter of 2025 and another USD 19.5 million is due in the first half of 2025. In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026. As at December 31, 2024, the Group was committed to undertake joint retrofit with some of our customers for eight vessels (2023: 13) with a total cost of USD 2.4 million (2023: 15.6 million). The retrofitting is expected to finalize in 2025. In December 2022, the Company had entered into a put/call option with INERATEC GmbH through its investment in associates for the delivery of 1,500 MT green physical marine diesel oil between 2024 and 2026. The option would oblige the Company to purchase and take delivery of the at a maximum price of 2,500 USD/MT. As at December 31, 2024, the delivery of the green marine diesel oil is delayed and the put option was expired. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 80 80 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements 8.2 Related Party and Key Management Compensation The Group has entered into a corporate service agreement to purchase administrative and corporate services from MPC Münchmeyer Petersen Capital AG and its subsidiaries. The Company is responsible for the technical ship management of the vessels owned by the Group. Performance of technical ship management services is sub-contracted to Wilhelmsen Ahrenkiel Ship Management GmbH & Co. KG, Wilhelmsen Ahrenkiel Ship Management B.V. and ZEABORN Ship Management Gmbh & Cie. KG, joint ventures of MPC Münchmeyer Petersen Capital AG, for 52 of the 59 vessels owned by the Group at December 31, 2024. Commercial ship management of the vessels owned by the Group and associated joint ventures is contracted to Harper Petersen B.V., which are joint ventures of MPC Münchmeyer Petersen Capital AG. The following table provides the total amount of service transactions that have been entered into with related parties for the relevant period: in USD thousands 2024 2023 Wilhelmsen Ahrenkiel Ship Man. GmbH & Co. KG / B.V. 7,796 8,167 Harper Petersen & Co. GmbH 5,701 6,624 MPC Münchmeyer Petersen Capital AG 520 924 ZEABORN Ship Management GmbH & Cie. KG 148 - Total 14,165 15,715 Compensation to Key Management The key management personnel of the Company include the Board of Directors and the leading personnel. For details on remuneration to leading personnel and board of directors, see remuneration report published on our website. Directors’ and executive management’s compensation and shareholding‌ Shares at December 31, 2024 2024 remuneration Ulf Holländer (Chairman)‌ - USD 90,000 Dr. Axel Schroeder‌1 - USD 47,397 Petros Panagiotidis (from 12.12.2024) - USD 1,781 Pia Meling - USD 50,000 Peter Fredriksen 200,000 USD 50,000 Ellen Hanetho 60,000 USD 55,000 Constantin Baack (CEO) ² 66,000 USD 833,709 Moritz Fuhrmann (CO-CEO/CFO) ² - USD 808,184 Christian Rychly (COO) ² - USD 470,691 1 In December 2024, Dr. Axel Schroeder‌ resigned from his position as a member of the Board of Directors. Simultaneously, Mr. Petros Panagiotidis was appointed to the Company’s Board of Directors. The change of the Board of Directors comes as a result of MPC Münchmeyer Petersen & Co. GmbH, an indirect shareholder of the Company, selling 74.09% of its stake in MPC Capital AG to Thalvora Holdings GmbH. 2 Total remuneration includes pension and other retirement benefits to our key management personnel. Shares at December 31, 2023 2023 remuneration Ulf Holländer (Chairman)‌2 165,637 USD 90,000 Dr. Axel Schroeder‌3 2,471,110 USD 50,000 Pia Meling - USD 50,000 Peter Fredriksen 200,000 USD 50,000 Ellen Hanetho 60,000 USD 50,000 Constantin Baack (CEO) 66,000 USD 1,239,446 Moritz Fuhrmann (CFO) - USD 494,587 Dr. Benjamin Pfeifer (former CFO) - USD 81,235 1 Several of the board members hold further share through indirect shareholdings in the Company. Please refer to Note 7.5Equityfor further details 2 On March 15, 2024, an agreement was reached that all shares held by Ulf Holländer were sold to MPC CSI GmbH. 3 On March 15, 2024, an agreement was reached that all shares held by Dr. Axel Schroeder were sold to MPC CSI GmbH. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 81 81 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements In April, 2024, the Company’s general meeting resolved that each member of the Board of Directors shall receive USD 50,000 (USD 90,000 for the Chairman of the Board) in remuneration for the financial year 2024. The Board fees resolved for the year are paid out in the subsequent year. The total remuneration to the Board of Directors and executive management in 2024 was USD 2.1 million (2023: USD 2.1 million). In October 2024, the Board of the Company resolved to introduce an employees’ option program for its key employees of the Company and its subsidiaries. The program allows each option holder the right to acquire one ordinary share of the Company and the purchase price shall be equal to par value of a share at the time of exercise, which is on July 1, 2028. Correspondingly, the option shall be vested in full and exercisable in four years, i.e. July 2028. Under the share option arrangement, in the event of dividends or other distributions in cash or in kind are made to shareholders of the Company from July 1, 2024, such distributions shall be made to the option holder as if the option shares were delivered to the holder prior to the record date for the distribution. If the options were not vested at the time of distribution, then the distribution shall be withheld by the Company until vesting and paid together with the option shares.The option program is subject to the 2024’s Annual General Meeting which is to be held in May 2025. If the program is not approved, no options shall be vested but instead each option holders shall be compensated as bonus payment in cash. The fair value of the options is estimated by using the Black Scholes option price model . In 2024, the share option program gave an income statement effect of USD 286 thousands related to the expense due to the share award arrangement. 8.3 Subsequent Events In December 2024, the Group entered into agreement to sell its wholly-owned 2005-buit vessel, AS Fenja for USD 8.6 million to an unrelated party. The sale of the vessel was completed in January 2025. In January 2025, the Group took delivery of the first 1,300 TEU container vessels from the yard. The vessel is contracted with a 15-year time carter with North Sea Container Line AS (NCL), back by CoAs from various parties, including a 15-year CoA with Norwegian Industrial Group, Elkem ASA. In March 2025, the Group sold two Chinese-built 1,300 TEU vessels in an en-bloc deal of USD 21.8 million. The 2005-built AS Franziska and 2007-built AS Fabiana, are respectively sold with USD 10.0 million and USD 11.8 million to an unrelated party. In March 2025, the Company completed a USD 75.0 million tap issue in the Company's outstanding senior unsecured sustainability -linked bond maturing on October 9, 2029. The bond pays a coupon of 7.375% per annum and the tap issue priced at 96.0% of par. In March 2025, the Group entered into secured term loan facility in an amount of up to USD 16.0 million with SBI Shinsei Bank, Limited (SBI Shinsei Bank) and Development Bank of Japan Inc (DBJ) to refinance one modern eco-design vessel, AS Anne, financed under the existing USD 50.0 million loan with HCOB. The new facility has a tenor of six years, carries an interest rate of SOFR plus a margin of 175 basis points. The outstanding interest-bearing debt of USD 8.7 million in relation to AS Anne with HCOB was prepaid in February 2025. In March 2025, as part of the Group's strategy for fleet optimization and renewal, the Group entered into agreement to sell five vessels en bloc, involving three 1,300 TEU vessels and two 2,000 TEU vessels, to an unrelated party. The five vessels will be sold with the existing charters attached. In March 2025, pursuant to the dividend declared in Februray 2025, the Group paid a total cash distributions of USD 39.9 million. In April 2025, the Company listed its senior unsecured sustainability-linked bonds 2024/2029 of USD 200.0 million with ISIN NO0013355248 on Euronext Oslo Børs. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 82 82 Financials Financials | Consolidated Financial Statements Financials | Consolidated Financial Statements Parent Financial Statements Statement of Profit or Loss 84 Statement of Financial Position 85 Statement of Cash Flow 86 Notes 87 Note 1 Significant Accounting Policies 87 Note 2 Operating Revenues 88 Note 3 Group Transactions 88 Note 4 Payroll Expenses, Board of Directors Remuneration, Compensations 88 Note 5 Specification of P/L Records 89 Note 6 Income Tax 89 Note 7 Equity 90 Note 8 Investments in Subsidiaries and Affiliated Companies 91 Note 9 Cash and Cash Equivalents 92 Note 10 Interest-bearing debt 92 Note 11 Shareholders 92 Note 12 Guarantees 92 Note 13 Financial Risk Management 93 Note 14 Subsequent Events 93 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 83 83 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Statement of Profit or Loss in USD thousands Notes 2024 2023 Revenues 2 17,652 15,763 Revenues 17,652 15,763 Payroll 4 (4,309) (2,727) Other operating expenses 5 (21,166) (19,468) Operating result (7,823) (6,432) Finance income 5 441,727 253,307 Finance expense 5 (5,821) (5,046) Profit (loss) before income tax 428,083 241,829 Income tax 6 - - Profit (loss) for the period 428,083 241,829 Transfer of profit to retained earnings 428,083 241,829 Dividend proposed 7 39,933 57,681 Earnings per share 0.96 0.55 Basic earnings per share – in USD 0.96 0.55 Diluted earnings per share – in USD 0.96 0.55 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 84 84 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Statement of Financial Position in USD thousands Notes 2024 2023 Assets Non-current assets Investments in subsidiaries 8 674,403 251,568 Investments in affiliated companies 8 5,236 2,934 Total non-current assets 679,639 254,502 Current assets Current receivables group 3 104 353 Other current receivables 645 546 Cash and cash equivalents 9 33,198 17,512 Total current assets 33,947 18,411 Total assets 713,586 272,913 in USD thousands Notes 2024 2023 Equity and liabilities Equity Share capital 7 48,589 48,589 Share premium 7 1,879 1,879 Other paid in capital 287 - Retained earnings 7 399,399 157,671 Total equity 450,154 208,139 Non-current liabilities Non-current interest-bearing debt 10 122,173 - Total non-current liabilities 122,173 - Current liabilities Dividend accrual 7 39,933 57,681 Accounts payable 140 442 Accounts payable Group - 9 Loan from subsidiary 3 91,004 - Social security, VAT, etc. 45 64 Other current liabilities 10,137 6,578 Total current liabilities 141,259 64,774 Total equity and liabilities 713,586 272,913 Oslo, April 9, 2025 The Board of Directors and Chief Executive Officer of MPC Container Ships ASA Electronically signed Ulf Stephan Holländer Chairman of the Board Ellen Merete Hanetho Member of the Board Peter Frederiksen Member of the Board Pia Meling Member of the Board Petros Panagiotidis Member of the Board Constantin Baack CEO Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 85 85 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Statement of Cash Flow in USD thousands Notes 2024 2023 Profit (loss) before income tax 428,083 241,829 Net change in current assets 150 9,679 Net change in current liabilities 992 5,345 Net finance income 5 (435,906) (248,258) Share based payment 287 - Cash flow from operating activities (6,394) 8,595 Interest income 1,570 2,252 Loan proceeds from subsidiaries 3 91,004 - Investment in subsidiaries 8 (526,513) (147,157) Investment in affiliates (4,005) (404) Dividends received from subsidiaries 8 543,316 374,492 Dividends received from joint ventures 8 - 41,000 Cash acquired of in share acquisition – net asset acquisition 8 (1,251) - Cash flow from investing activities 104,121 270,183 Proceeds from debt financing 10 125,000 - Debt issuance cost 10 (2,938) - Repayment of hedging instruments - (970) Paid dividends 7 (204,103) (292,842) Cash flow from financing activities (82,041) (293,812) Net change in cash and cash equivalents 15,686 (15,034) Cash and cash equivalents at beginning of period 17,512 32,546 Cash and cash equivalents at the end of period 33,198 17,512 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 86 86 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Notes Significant Accounting Policies MPC Container Ships ASA (“the Company”) was incorporated on January 9, 2017 as a private limited liability company under the laws of Norway, and converted to a Norwegian public limited liability company (Norwegian: allmennaksjeselskap) on January 16, 2018. The financial statements are prepared in accordance with Norwegian Standards (NGAAP) for public limited liability companies. Current assets are assets that are expected to be realized in the Company’s normal circle, held primarily for the purpose of trading and that are expected to be realized within twelve months after the reporting period. Current liabilities are liabilities that are expected to be settled within the Company’s normal operating cycle. Other assets are classified as non-current assets and other liabilities are classified as non-current liabilities. Accounts receivables are recognized at fair value after provisions for bad debts. Long-term investments in shares in subsidiaries including affiliated companies are recognized at original cost, but are reduced to fair value if the decrease in value is not temporary. Loans and other financial liabilities include issued bonds, bank loans and similar. Loans are measured at amortized cost. Revenues and expenses from operations are booked in the same period as they occur. The financial statements are presented in US Dollar (USD), which is the functional currency of the Company. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transaction. All financial information presented in USD has been rounded to the nearest thousand USD, except otherwise indicated. Differences from currency translations are classified as financial income. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred tax liabilities are classified as non-current assets and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised. Dividends are reflected as Dividends payable within current liabilities. Group contributions for the year to other entities within MPCC’s Norwegian tax group are reflected in the balance sheet as current liabilities within Liabilities to group companies. Under NGAAP the presentation of dividends payable and payable group contributions differs from the presentation under IFRS, as it also includes dividends and group contributions payable which at the date of the balance sheet is subject to a future annual general meeting approval before distribution. A corresponding amount is recognised directly in equity. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 87 87 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Operating Revenues in USD thousands 2024 2023 Ship management fees 10,227 10,113 Corporate management fees 5,060 3,813 Reimbursement 2,365 1,837 Total operating revenues 17,652 15,763 Group Transactions in USD thousands Receivables at December 31, 2024 Payables at December 31, 2024 Revenues in 2024 Expenses in 2024 Intercompany balances/transactions 104 - 17,652 (6,051) in USD thousands Receivables at December 31, 2023 Payables at December 31, 2023 Revenues in 2023 Expenses in 2023 Intercompany balances/transactions 353 - 15,763 (4,563) Revenue is related to invoiced ship management fees and corporate management fees including other reimbursements. As at December 31, 2024 the Company had a loan from subsidiary of USD 91.0 million (2023: nil). Payroll Expenses, Board of Directors Remuneration, Compensations in USD thousands 2024 2023 Salary (3,661) (1,270) Social security (130) (131) Renumeration of Board Members (293) (245) Pension costs (70) (79) Other personnel expenes (67) (1,002) Stock option expense (88) - Total payroll and remuneration (4,309) (2,727) In accordance with Norwegian law, the Company is required to have an occupational pension scheme. The Company’s pension scheme was in compliance with Norwegian law as at December 31, 2024 and December 31, 2023. Refer to Group Note 8.2 Related Party Transactions of the consolidated financial statements for the remuneration of the Board of Directors and key management. Compensation to auditors (in USD thousands) 2024 2023 Fees related to audit services (157) (155) Fees related to other services - (15) Total auditor compensation (157) (170) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 88 88 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Specification of P/L Records in USD thousands 2024 2023 Other operating expenses: Fees from auditors (336) (317) Ship management fees (9,935) (9,472) Legal fees (260) (466) Other fees (6,051) (4,563) Other operating expenses (4,584) (4,650) Total other operating expenses (21,166) (19,468) Finance income Interest income 2,021 2,614 Income from exchange 2,922 3,694 Dividend from subsidiaries 436,684 231,344 Dividend from joint venture investments - 15,635 Interest income from subsidiaries 4 2 Other finance income 96 18 Total finance income 441,727 253,307 Finance expense Interest expense (2,348) (1,799) Foreign currency losses (3,473) (3,244) Other finance expenses - (3) Total finance expense (5,821 (5,046) Income Tax The Company is subject to ordinary corporation tax in Norway: in USD thousands 2024 2023 Basis for ordinary corporation tax expense Profit (loss) before taxes 428,083 241,829 Non-taxable income (dividend) (436,684) (246,979) Non-taxable cost (14,867) 6,705 Net taxable income (23,468) 1,555 Expected income tax at statutory rate (22%) (5,163) (342) Change in temporary differences and tax losses carried forward not recognized 5,163 342 Corporate tax payable in the balance sheet - - in USD thousands 2024 2023 Change Temporary differences Accumulated loss to be brought forward 56,357 32,889 (23,468) Currency effects (5,109) - 5,109 Not included in calculation of deferred tax (51,248) (32,889) 18,359 Basis for deferred tax assets (liabilities) - - - In Norway, the Company has an estimated tax loss carried forward amounting to USD 51.2 million (2023: USD 32.9 million). The tax loss can be carried forward indefinitely. Currently, no convincing evidence of using the tax loss exists. Accordingly, the criteria for recognition of deferred tax assets are not met. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 89 89 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Equity The proposed dividend consisted of the resolved dividends by the Board of Director’s on February 24, 2025 where the Company will distribute USD 0.09 per share, amounting to USD 39.9 million, based on the financial results of the fourth quarter of 2024. Please refer to the Group Note 8.3 Subsequent Events for information about dividends declared and paid out in 2025 and Group Note 7.6 Capital Management for information about dividends declared/paid during 2024. in USD thousands SHARE CAPITAL SHARE PREMIUM OTHER PAID-IN CAPITAL RETAINED EARNINGS/LOSSES TOTAL Total equity as at January 1, 2024 48,589 1,879 - 157,671 208,139 Profit/loss - - - 428,083 428,083 Dividend proposed - - - (39,933) (39,933) Dividends - - - (146,422) (146,422) Share-based payment - - 287 - 287 Total equity as at December 31, 2024 48,589 1,879 287 399,399 450,154 in USD thousands SHARE CAPITAL SHARE PREMIUM OTHER PAID-IN CAPITAL RETAINED EARNINGS/LOSSES TOTAL Total equity as at January 1, 2023 48,589 86,229 - 115,460 250,278 Profit/loss - - - 241,829 241,829 Dividend proposed - - - (57,681) (57,681) Dividends - (84,350) - (141,937) (226,287) Total equity as at December 31, 2023 48,589 1,879 - 157,671 208,139 in USD thousands 2024 2023 Profit/(loss) for year attributable to ordinary equity holders – in USD thousands 428,083 241,829 Weighted average number of shares outstanding, basic 443,700,279 443,700,279 Weighted average number of shares outstanding, diluted 443,700,279 443,700,279 Basic earnings per share – in USD 0.96 0.55 Diluted earnings per share – in USD 0.96 0.55 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 90 90 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Investments in Subsidiaries and Affiliated Companies Investments in subsidiaries in USD thousands Country Equity Profit (Loss) for the period Book value Ownership MPC Container Ships Invest B.V. Netherlands 41,051 374,421 5,432 100.0% MPCC Second Financing GmbH & Co. KG Germany 239,725 1,933 211,651 100.0% MPCC First Financing OpCo KG Germany 51 25 29 100.0% MPCC First Financing Verwaltungs GmbH Germany 24 (1) 29 100.0% MPC Container Ships GmbH & Co. KG Germany 412 446 931 100.0% MPC Container Ships Verwaltungs GmbH Germany 29 - 29 100.0% MPC Container Ships Sourcing GmbH Germany 397 (38) 122 100.0% MPCC Greenbox AS Norway 37,853 (166) 34,352 90.1% MPCC ECOBOX GmbH Germany 38 1 31 100.0% MPC ECOBOX 6 GmbH Germany 24 - 31 100.0% MPC ECOBOX 7 GmbH Germany 25 - 31 100.0% MPC ECOBOX OPCO 6 GmbH CO. KG Germany 26,265 1,331 25,031 100.0% MPC ECOBOX OPCO 5 GmbH CO. KG Germany 27,118 1,834 25,395 100.0% AS Constantina Opco GmbH Germany 61 23 (10) 100.0% AS Shipping OpCo 2 GmbH Germany 40 5 28 90.0% AS Shipping OpCo 3 GmbH Germany 61 23 27 100.0% AS Shipping OpCo 4 GmbH Germany - - 27 100.0% MPCC Fourth Financing Verwaltungs GmbH Germany - - 27 100.0% Sao Paulo Project Holding Verwaltungs GmbH Germany - 2 - 100.0% MPCC Third Financing AS Norway 313,242 195,004 64,832 100.0% MPCC Fourth Financing GmbH & Co. KG Germany 73,143 2,441 74,439 100.0% "AS CAROLINA" Schifffahrtsgesellschaft GmbH & Co. KG Germany 7,743 11,520 - 100.0% “AS FRANZISKA” Schifffahrtsgesellschaft GmbH & Co. KG Germany 5,922 1,147 - 100.0% “AS ROBERTA” Schifffahrtsgesellschaft GmbH & Co. KG Germany 17 26 - 100.0% “AS CLAUDIA” Schifffahrtsgesellschaft GmbH & Co. KG Germany 15,103 1,411 11,205 100.0% in USD thousands Country Equity Profit (Loss) for the period Book value Ownership “AS NINA” Schifffahrtsgesellschaft GmbH & Co. KG Germany 16,063 2,721 12,387 100.0% “AS CAMELLIA” Schifffahrtsgesellschaft GmbH & Co. KG Germany 7,803 2,943 8,898 100.0% Palmaille 75 Achtundachtzigste Vermögensverwaltungs- gesellschaft GmbH & Co. KG Germany 25 1 27 100.0% Palmaille 75 Elfte MPCC GmbH & Co. KG Germany 7 - 7 100.0% Palmaille 75 Zwölfte MPCC GmbH & Co. KG Germany 7 - 7 100.0% Palmaille 75 Dreizehnte MPCC GmbH & Co. KG Germany 2 - 2 100.0% Palmaille 75 Vierzehnte MPCC GmbH & Co. KG Germany 2 - 2 100.0% Palmaille 75 Vierzehnte MPCC GmbH & Co. KG Germany 2 - 2 100.0% “AS Nuria” Schiffahrtsgesesellschaft GmbH & Co. KG Germany 8,994 (89) 9,110 100.0% “AS Nara” Schiffahrtsgesesellschaft GmbH & Co. KG Germany 9,167 765 8,429 100.0% "AS NANNE" Schifffahrtsgesellschaft GmbH Co. KG Germany 44,579 (140) 44,719 100.0% "AS Nele" Schifffahrtsgesellschaft GmbH Co. KG Germany 44,657 (123) 44,780 100.0% "AS Ninette" Schifffahrtsgesellschaft GmbH Co. KG Germany 44,546 (164) 44,710 100.0% "AS Natalie" Schifffahrtsgesellschaft GmbH Co. KG Germany 44,519 (182) 44,701 100.0% 2. Bluewater Holding Schifffahrtsgesellschaft GmbH & Co. KG Germany 2,188 312 2,953 50.0% Total 674,403 The major investment in subsidiaries of the Company are direct or indirect investments in container vessels where the fair values of the vessels exceed the book values. Accordingly, there is no identified need for impairment on the Company’s investments in subsidiaries in 2024 (2023: nil). Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 91 91 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Investments in affiliated companies As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for USD 1.3 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group from the fourth quarter of 2024. in USD thousands Country Equity Profit (Loss) for the period (IFRS) Book value Ownership Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG Germany 7,995 (4) 4,002 100.0% Siemssen GmbH & Co. KG Germany 4,621 (27) 1,231 25.0% NCL MPCC Amonia AS Norway 3 - 4 50.0% Total 5,236 Cash and Cash Equivalents in USD thousands 2024 2023 Bank deposits denominated in USD 25,563 3,486 Bank deposits denominated in EUR 170 256 Bank deposits denominated in NOK 180 92 Money market investments 7,285 13,678 Total cash and cash equivalents 33,198 17,512 Bank deposits in NOK consisted of in total USD 35.8 thousand in funds held for employee taxes withheld, payable to the Norwegian government. Interest-bearing debt In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%. The carrying value as at December 31, 2024, of the bond was USD 122.2 million, net of debt issuance cost of USD 2.9 million. Refer to Group Note 7.4 Interest-Bearing Debt for more detail on the loan facilities. Shareholders As at December 31, 2024, the share capital of the Company consisted of 443,700,279 shares with nominal value per share of NOK 1.00. All issued shares are of equal rights and are fully paid up. Please refer to Group Note 7.5 Equity of the consolidated financial statements for an overview of the 20 largest shareholders of the Company as at December 31, 2024. Guarantees As at December 31, 2024, the Company has guaranteed for four (2023: two) loan facilities, including the term loan facility with Crédit Agricole together with K-SURE agent for the two 5,500 TEU eco-design vessels, Colorado and Mackenzie, term loan facility with Deutsche Bank, term loan facility of USD 30.0 million with First Citizen and senior secured term loan facility with HCOB. Refer to Group Note 7.4 Interest-Bearing Debt for more detail on the loan facilities. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 92 92 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Financial Risk Management Foreign exchange The risk that future cash flows will fluctuate because of changes in foreign exchange rates. The Company has exposure in EUR and NOK as part of administrative and operating expenses and a portion of cash and cash equivalents and trade payables are denominated in EUR and NOK. The Company do not have financial instruments in place to mitigate this risk. Credit risk Credit risk relates to loans to subsidiaries and affiliated companies, guarantees to subsidiaries, deposits with external banks and receivables against related parties. Loss provisions are provided in situations of negative equity and where the companies are not expected to be able to fulfil their loan obligations from future earnings. Liquidity risk Liquidity risk is the risk that the Company will not be able to meets its financial obligations when they fall due and is managed through maintaining sufficient cash. Development in the Group’s and thereby the Company’s available liquidity, is continuously monitored through a liquidity planning tool which includes weekly cash reporting and monthly cash flow forecasts. Subsequent Events In March 2025, the Company completed a USD 75.0 million tap issue in the Company's outstanding senior unsecured sustainability -linked bond maturing on October 9, 2029. The bond pays a coupon of 7.375% per annum and the tap issue priced at 96.0% of par. In March 2025, pursuant to the dividend declared in Februray 2025, the Group paid a total cash distributions of USD 39.9 million. In April 2025, the Company listed its senior unsecured sustainability-linked bonds 2024/2029 of USD 200.0 million with ISIN NO0013355248 on Euronext Oslo Børs. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 93 93 Financials Financials | Parent Financial Statements Financials | Parent Financial Statements Responsibility Statement We confirm that, to the best of our knowledge, the consolidated financial statements presented in this report have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union and give a true and fair view of the Group’s assets, liabilities, financial position and profit or loss as a whole. We also confirm that, to the best of our knowledge, the Board of Directors’ report includes a fair review of the development and performance of the business and the position of the Group and a description of risks and uncertainties. Oslo, April 9, 2025 The Board of Directors and Chief Executive Officer of MPC Container Ships ASA Electronically signed Ulf Stephan Holländer Chairman of the Board Ellen Merete Hanetho Member of the Board Peter Frederiksen Member of the Board Pia Meling Member of the Board Petros Panagiotidis Member of the Board Constantin Baack CEO Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 94 94 Financials Financials | Responsibility Statement Financials | Responsibility Statement Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 95 95 Financials Financials | Auditor’s Report Financials | Auditor’s Report Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 96 96 Financials Financials | Auditor’s Report Financials | Auditor’s Report Alternative Performance Measures The Group’s financial information is prepared in accordance with IFRS® Accounting Standards. In addition, it is the management’s intention to provide alternative performance measures that are regularly reviewed by management to enhance the understanding of the Group’s performance but are not intended as a replacement of the financial statements prepared in accordance with the IFRS® Accounting Standards. The alternative performance measures presented may be determined or calculated differently by other companies. The alternative performance measures are intended to enhance comparability of the results and to give supplemental information to the users of the Group’s external reporting. Refer to our website for the rationale of each APM. EBITDA Earnings before interest, tax, depreciation and amortization (EBITDA). Derived directly from the income statement by adding back depreciation to the operating result (“EBIT”). in USD thousands 2024 2023 Operating profit (EBIT) 277,585 336,286 Depreciation (71,139) (102,706) Impairment - (79,378) EBITDA 348,724 518,370 Adjusted EBITDA EBITDA excluding one-time, irregular, and non-recurring items, such as gain (loss) from vessel sales. in USD thousands 2024 2023 EBITDA 348,724 518,370 Early redelivery of vessels, net of commission - 77,971 Share of profit or loss from joint venture - 19,723 Gain (loss) from sale of vessels and other property, plant and equipments 23,581 (7,858) Adjusted EBITDA 325,143 428,534 Adjusted Profit (Loss) Profit (loss) for the period excluding one-time, irregular, and non-recurring items, such as gain (loss) from vessel sales. in USD thousands 2024 2023 Profit (loss) for the period 266,694 325,116 Early redelivery of vessels, net of commission - 77,971 Depreciation of TC contract related to AS Anne - (22,035) Share of profit or loss from joint venture - 19,723 Gain (loss) from sale of vessels and other property, plant and equipments 23,581 (7,858) Impairment - (79,378) Adjusted profit (loss) for the period 243,113 336,693 Number of shares 443,700,279 443,700,279 Adjusted EPS 0.55 0.76 Adjusted Earnings Per Share (EPS) Adjusted EPS is derived from the adjusted profit (loss) divided by the number of shares outstanding at the end of the period. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 97 97 Financials Financials | Alternative Performance Measures Financials | Alternative Performance Measures Average Time Charter Equivalent (TCE) The time charter equivalent represents time charter revenue and pool revenue divided by the number of trading days for the consolidated vessels during the reporting period. Trading days are ownership days minus days without revenue, including commercial, uninsured technical and dry-dock related off-hire days. in USD thousands 2024 2023 Time charter revenues 522,424 700,710 Trading days 19,758 21,553 Average TCE per day (in USD) 26,441 32,511 Adjusted Average TCE Adjusted average TCE is the average TCE for the period excluding one-time, irregular, and non-recurring items, such as gain (loss) from sale of vessels. in USD thousands 2024 2023 Time charter revenues 522,424 700,710 Early redelivery of vessels - (79,629) Adjusted TCE for the period 522,424 621,081 Trading days 19,758 21,553 Adjusted average TCE per day (in USD) 26,441 28,816 Average Operating Expenses (OPEX) Per Day Adjusted OPEX per day is calculated as operating expenses excluding tonnage taxes and operating expenses reimbursed by the charterers divided by the number of ownership days for consolidated vessels during the reporting period. in USD thousands 2024 2023 Vessel operation expenditures (155,844) (153,390) Tonnage taxes 191 - Reimbursements 4,290 - Adjusted vessel operation expenditures (151,363) (153,390) Ownership days 20,886 22,236 Adjusted average OPEX per day 7,247 6,887 Leverage ratio Interest-bearing long-term debt and interest-bearing short-term debt divided by total assets. in USD thousands 2024 2023 Non-current Interest-bearing debt 299,237 92,951 Current interest-bearing debt 44,037 33,564 Net interest-bearing debt 343,274 126,515 Total equity and liabilities 1,231,374 954,744 Leverage ratio 27.9% 13.3% Equity Ratio The equity ratio is calculated by dividing total equity by the total assets. in USD thousands 2024 2023 Total equity 817,620 753,481 Total assets 1,231,374 954,744 Equity ratio 66.4% 78.9% Net Debt Calculated as cash and cash equivalent less borrowings (current and non-current). The measure may exclude lease liabilities (current and non-current) or include them. in USD thousands 2024 2023 Restricted cash 6,364 5,005 Cash and cash equivalents 125,696 117,579 Total cash, cash equivalents and restricted cash 132,060 122,584 Non-current Interest-bearing debt 299,237 92,951 Current interest-bearing debt 44,037 33,564 Total interest-bearing debt 343,274 126,515 Net debt (net cash) 211,214 3,931 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 98 98 Financials Financials | Alternative Performance Measures Financials | Alternative Performance Measures sustainability Statement Operational Highlights 2024 100 CEO Letter 101 Sustainability Report General Information 103 Environmental Information 138 Social Information 167 Governance Information 188 Green and Sustainable Finance 198 Annual and Sustainability Report 2024 99 Sustainability Statement Sustainability Statement Operational Highlights 2024 Environmental Reduction of 10.98% total energy consumption Reduction of fleet average well-to-wake GHG emissions intensity of 3.82% Reduction of Scope 1 GHG emissions by 11.29% Reduction of Sulphur oxide air pollution by 12.84% Reduction of Nitrous oxide air pollution by 15.17% Reduction of Particulate Matter air pollution by 12.94% Social Implementation of Star Link for continuous internet access on board Crew Wellbeing study (Promoting Healthier Lifestyle, “Anti- Harassment” Campaign and “Sports-on-Board” Campaign) Number of People in distress supported by MPCC during Search & Rescue Operation: 52 Average Lost Time Incident Rate: 0.36 Governance Sustainability Report in line with the requirements of the CSRD and ESRS to prepare MPCC for future compliance ESG-KPI implemented in C-Suite incentive scheme Sustainability Linked Bond issued in 2024 Annual and Sustainability Report 2024 100 Sustainability Statement Sustainability Statement | Operational Highlights 2024 CEO Letter The geopolitical tensions, particularly the Red Sea crisis, continued to impact 2024, posing significant challenges to international shipping. Extensive rerouting of vessels around the Cape of Good Hope affected freight rates and operational logistics, underscoring the resilience required in our industry. At MPCC, we understand the importance of integrating Environmental, Social and Governance (ESG) considerations into our strategic objectives. Our commitment to sustainability is crucial for long-term value creation. As we navigate market dynamics and challenges, our ESG efforts guide our decisions and investments to maximize shareholder returns while mitigating risks. Driving Sustainable Growth: Fleet Renewal and Emission Reduction Investments One of our primary environmental objectives is the reduction of our greenhouse gas (GHG) emissions intensity in alignment with the International Maritime Organization’s (IMO) trajectory and during the year we strengthened the 2030 fleet average GHG Intensity Target. To achieve our emission targets, we have committed to substantial fleet renewal and optimization investments and have increased our total commitment to USD 600m, which is almost fully invested. This includes dual-fuel and eco-design newbuildings, secondhand eco-vessel acquisitions, and joint retrofit investments with our charter customers. During the year, we welcomed six eco-design vessels into our fleet. In January 2025 the first of three dual-fuel methanol vessels from our newbuilding program were delivered. These vessels are integral to our fleet renewal and emissions reduction strategy. Additionally, we continued to invest and progress in our retrofit program to continuously enhance our fleet and align with our commitment to sustainable shipping solutions. The shipping industry is increasingly focusing on sustainability to reduce environmental impact, comply with stricter regulations, meet customer demand for greener practices, and enhance long- term operational efficiency. Expectations in the industry point to a multi-fuel future and by incorporating environmentally sustainable technologies, we are strategically positioning MPCC to invest in and capitalize on the transition towards greener shipping practices, further enhancing long-term shareholder value. Our commitment to sustainability is imperative for sustained success in a rapidly evolving industry . Constantin Baack CEO Moritz Fuhrmann Co-CEO and CFO Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 101 101 Sustainability Statement Sustainability Statement | CEO Letter Sustainability Statement | CEO Letter Our ESG efforts are not only about mitigating risks but also about seizing opportunities to create long-term value for our shareholders. Through strategic partnerships and the fleet renewal investments, we aim to drive sustainable growth while maintaining a low-to- moderate leverage structure and high balance sheet flexibility that increases shareholder value and allows for capital allocation aligned with ESG principles. Dedicated to Our People: Socially Responsible Initiatives We are dedicated to protecting and improving the safety and well- being of our employees onshore and the crew aboard our vessels. By fostering a supportive work environment and investing in safety culture, we aim to mitigate risks and ensure the welfare of all individuals involved in our operations. Especially with the ongoing geopolitical uncertainties, we must be vigilant and take into consideration all possible effects, particularly when it comes to the impact to our vessels and crew. We continue to avoid transit through the Red Sea, placing our crews’ safety above all else. Over the past year, we have made significant strides in enhancing crew well-being. We conducted a comprehensive survey, leading to several initiatives: cooks received nutrition training, we are launching the Fleet Fitness Challenge, we partnered with a company offering online courses to help crew members quit smoking and are exploring ways to reduce stress through increased flexibility. Additionally, we rolled out Starlink on all vessels, providing better internet connectivity and communication with the rest of the world. These efforts aim to create a healthier, more supportive environment for our crew. Navigating Regulatory Changes with Transparency and Accountability Both as a shipping company and as a publicly listed entity we face a rapidly evolving industry- and regulatory landscape, and our sustainability efforts are not confined to environmental initiatives alone. Governance forms the foundation of our ethical and responsible business approach, and we strive to operate with transparency, integrity, and accountability at every level of our organization. Operationally, we are well-prepared for new regulatory developments. Even though MPCC is not required to submit mandatory reports under the Corporate Sustainability Reporting Directive (CSRD) for the fiscal year 2024, we are committed to voluntary reporting this year. This decision underscores our dedication to transparency and accountability in our sustainability practices, reflecting our proactive approach to environmental and social responsibility. During the year we also expanded our team with a Group Sustainability Officer to strengthen MPCC’s sustainability capacities. Driving Sustainable Operations for the Future In 2024, we completed a USD 125 million sustainability-linked bond and an ECA-covered green loan. Our commitment to ESG and sustainability drives our vision for sustainable container shipping and to contribute to driving sustainable change in the maritime industry, we have developed comprehensive Sustainability-Linked and Green Financing Framework. These frameworks align with our core values of environmental responsibility and long-term resilience. By leveraging sustainable financing, we support eco-friendly innovations, enhance operational efficiency, and advance fleet decarbonization, ultimately contributing to a more sustainable maritime sector. In closing, our commitment to ESG principles is not just a reflection of our values; it is a strategic imperative for sustained success in a rapidly evolving industry. As we continue to navigate the evolving industry, facing both challenges and opportunities on the horizon, we are optimistic about the journey ahead. We would like to thank our dedicated and hard-working colleagues, seafarers, and partners for their continued support and contributions to these important efforts. We hope this report provides insight into our ongoing commitment to sustainability and invite you to engage with us further. Your interest and feedback are invaluable as we continue to drive positive change in the shipping industry. Sincerely, Constantin Baack CEO MPC Container Ships ASA Moritz Fuhrmann Co-CEO and CFO MPC Container Ships ASA Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 102 102 Sustainability Statement Sustainability Statement | CEO Letter Sustainability Statement | CEO Letter GENERAL INFORMATION ESRS 2 General disclosures 104 Appendix 107 Annual and Sustainability Report 2024 103 Sustainability Report | General Information ESRS 2 General disclosures BASIS FOR PREPARATION BP-1 – General basis for preparation of the sustainability statement MPC Container Ships ASA’s (hereafter referred to as “MPC Container Ships”, “MPCC” or “the Company”) sustainability statement has been prepared on an individual basis, separated from the Company’s 2024 financial statements. MPCC’s consolidated financial statements include MPC Container Ships ASA as the parent company and all its subsidiaries. For a full list of companies that constitute the Group, refer to Note 6.2 in the Annual Report. For the purposes of this sustainability statement, the term “MPCC Group” shall not imply full operational control or accountability over non-consolidated entities. The sustainability statement covers material impacts, risks and opportunities (IROs) in MPCC’s own operations, as well as its upstream and downstream value chain, as identified in the double materiality assessment (DMA). The full extent of the assessment boundaries is outlined on page 118 , section SBM-3 of this report. No information corresponding to intellectual property, know-how or the results of innovation has been omitted from the report. MPCC does not exempt the disclosure of information pertaining to impending developments or matters in the course of negotiations. BP-2 – Disclosures in relation to specific circumstances Although MPCC is not subject to mandatory reporting under the Corporate Sustainability Reporting Directive (CSRD) directive for FY 2024, this sustainability statement has been prepared following the principles and disclosure requirements of the European Sustainability Reporting Standards (ESRS) under the directive. MPCC are awaiting the outcome of the political discussions in the EU regarding the EU Commission’s “Omnibus” proposal to amend the CSRD. If the proposal is transposed into national law in Norway, MPCC could be out of scope of the CSRD and might not be obliged to report according to ESRS. Prior to this, the Company’s sustainability report was structured in line with the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) frameworks. In line with this transition, MPCC has revised and strengthened its greenhouse gas (GHG) intensity target for 2030. As outlined in E1-4, the Company has set an ambitious goal to achieve a 45% reduction in well-to-wake GHG emissions intensity from a 2008 baseline. The Company has also made a clear commitment to reaching net Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 104 104 Sustainability Report | General Information Sustainability Report | General Information zero emissions by 2050, in alignment with the 2023 IMO Strategy on Reduction of GHG Emissions from Ships and thereby the 1.5°C trajectory. Disclosures stemming from other legislation or other sustainability reporting standards This statement has been developed on a voluntary basis in preparation for compliance with the CSRD and ESRS; however, it has not been subject to limited assurance by our external auditor. It includes all material disclosures, while disclosures deemed immaterial through the double materiality assessment have been omitted. The full list of disclosures omitted from this report is provided in IRO-1. Incorporation by reference MPCC has applied incorporation by reference to address the following disclosure requirements and data points. Disclosure requirement Datapoint Location in Management Report ESRS 2 GOV-4 30; 32 Mapping of information provided in sustainability statement about the due diligence process Appendix, page 124 The report integrates disclosures from the Norwegian Transparency Act and the Norwegian Accounting Act, as well as key elements from other sustainability frameworks. These include the Sustainability Accounting Standards Board (SASB) Maritime Transportation Standard (2023) and the Global Reporting Initiative (GRI) standards (see ESRS 2 Accounting policies for a full overview). Use of phase-in provisions As MPCC has fewer than 750 employees, the Company has opted to exercise the phase-in provision to omit ESRS topical standards related to ESRS E4 – “Biodiversity and ecosystems” and S3 – “Affected communities”, along with certain datapoints under S1 – “Own workforce” and S2 – “Workers in the value chain”, in accordance with Appendix C of ESRS 1. E4 – Biodiversity and ecosystems Although the materiality assessment identified biofouling (the accumulation of marine organisms on the surfaces of MPCC vessels) and ballast water and GHG emissions (E4) as material impacts within its operations, the shipping industry operates under a robust international regulatory framework managing these impacts. MPCC complies with international standards, such as the IMO Ballast Water Management Convention and MARPOL Annexes, which enforce strict protocols on ballast water treatment. The 2023 Guidelines for the control and management of ships’ biofouling to minimize the transfer of invasive aquatic species (Biofouling Guidelines) provide an international consistent approach to the management of biofouling, which is the accumulation of various aquatic organisms on ships’ hulls. By ballast water management, biofouling control, and pollution prevention, the Company ensures that biodiversity-related impacts are managed in accordance with best practices and international regulations. Aside from adherence to these regulations, as mandated by Company’s Environmental Policy, MPCC has invested in advanced pollution control technologies, decarbonization strategies, and stakeholder collaboration to enhance sustainable practices across its value chain. Together, these efforts reflect the Company’s commitment to mitigating biodiversity impacts across its operations and value chain. MPCC has not yet formalized time-bound targets or metrics related to these matters. S1 – Own workforce Employee stress, retention and safety were assessed as material impacts under the materiality assessment, and impacts are mitigated through a robust human capital management framework, implemented via the Company’s Human Capital Policy, Health and Safety Policy and Human Rights Policy (see S1-1 for a description of these policies). These company policies emphasize employee well- being, fair treatment, and safety. Initiatives such as regular engagement surveys, targeted stress- reduction programs, and professional development opportunities ensure that workforce impacts are managed effectively. Additionally, MPCC has established a target to maintain an onshore employee retention rate above 90%. Metrics, including retention rates and employee engagement, are monitored annually to support these efforts. S2 – Workers in the value chain MPCC recognizes its responsibility towards crew workers, ship recycling workers and other supply chain workers. Consequently, impacts related to the health, safety and working conditions of these workers are deemed material. These impacts are thoroughly Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 105 105 Sustainability Report | General Information Sustainability Report | General Information addressed through the Company’s Human Rights Policy, Health & Safety Policy, Ship Recycling Policy, and Business Partner Guideline. Offshore workers are protected by international labor standards such as the Maritime Labor Convention (MLC), which ensures fair working conditions, safety, and well-being. Initiatives like enhanced onboard internet access (via Starlink) and targeted welfare programs support mental health and stress reduction. For ship recycling workers, MPCC enforces compliance with the EU Ship Recycling Regulation (for newbuilds) and IMO´s Hong Kong Convention, ensuring safe, ethical, and environmentally sound practices. MPCC has set a target to maintain a Lost Time Injury Rate (LTIR) below 0.3 by 2030, with progress monitored through safety audits, training programs, and incident reporting. The Company collaborates with partners to uphold ethical treatment of value chain workers and maintain workplace standards. Entity-specific disclosures – Search and Resue MPCC acknowledges its legal and humanitarian responsibilities in Search and Rescue (SAR) operations and complies with the Safety of Life at Sea (SOLAS) Convention. The Company identifies three key material impacts related to SAR: saving lives at sea, managing crew safety risks, and upholding the principle of non-refoulement. To address these challenges, MPCC integrates SAR commitments into its Health & Safety, Human Rights, and Human Capital Policies, aligning with international safety and labor standards. Although there is currently no standalone SAR policy, MPCC plans to enhance its guidance as part of the transition plan by 2025 to formalize its approach. In the meantime, SAR-related responsibilities are overseen by technical managers, who ensure regulatory compliance and risk mitigation while maintaining safe and effective rescue operations. To manage the risks associated with SAR, MPCC focuses on crew safety and operational readiness. Rescue operations can place seafarers in high-stress situations, as vessels may take on large groups of distressed individuals, sometimes leading to conflict and security concerns. To address this, MPCC implements continuous mitigation measures, including specialized crew training in crisis management, and emergency response according to SOLAS and the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW). SAR operations comply with safety and regulatory frameworks and incorporate quality and environmental management standards. These efforts are crucial to safeguarding both the rescued individuals and the crew, ensuring a controlled and secure response in high-risk maritime areas. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 106 106 Sustainability Report | General Information Sustainability Report | General Information Appendix IRO-2 List of datapoints that derive from other EU legislation This table provides an assessment of materiality of datapoints in ESRS that stem from other regulations, as well as a mapping of the material datapoints to chapters in the statement. Datapoints that are deferred due to the phase-in requirements, especially given the fact that MPCC has below 750 employees, have been indicated as not material. Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816 ( 27 ) , Annex II Material Governance structure 122 ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II Material Governance structure 122 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex 1 Material Statement on due diligence 124 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) I Indicators number 4 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 ( 28 ) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818 ( 29 ) , Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 107 107 Sustainability Report | General Information Sustainability Report | General Information Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2(1) Material Transition Plan 140 ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 Not material ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 Material Targets (E1) 146 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 Material Metrics (E1) 147 ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 Material Metrics (E1) 147 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Indicator number 6 Table #1 of Annex 1 Material Metrics (E1) 147 ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) Material Metrics (E1) 148 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 108 108 Sustainability Report | General Information Sustainability Report | General Information Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) Material Metrics (E1) 148 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1) Not material ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk. Not material ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralized by immovable property – Energy efficiency of the collateral Not material ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Not material ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Material Metrics (E2) 155 ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Not material Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 109 109 Sustainability Report | General Information Sustainability Report | General Information Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Not material ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Not material ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 Not material ESRS 2- SBM 3 – E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material ESRS 2- SBM 3 – E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material ESRS 2- SBM 3 – E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex 1 Not material ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 Material Policies (E4) 160 ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Not material ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Not material ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Not material ESRS 2- SBM3 – S1 Risk of incidents of forced labor paragraph 14 (f) Indicator number 13 Table #3 of Annex I Not material Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 110 110 Sustainability Report | General Information Sustainability Report | General Information Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS 2- SBM3 – S1 Risk of incidents of child labor paragraph 14 (g) Indicator number 12 Table #3 of Annex I Not material ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I Material Policies (S1) 170 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II Material Policies (S1) 170 ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Material Policies (S1) 170 ESRS S1-1 workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I Material Policies (S1) 170 ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I Not material ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I Not material ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Not material ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex I Not material Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 111 111 Sustainability Report | General Information Sustainability Report | General Information Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Not material ESRS 2- SBM3 – S2 Significant risk of child labor or forced labor in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I Material Material impacts, risks and opportunities (S2) 177 ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Material Policies (S2) 178 ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Annex 1 Material Policies (S2) 178 ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Material Policies (S2) 178 ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Material Policies (S2) 178 ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Not material ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 112 112 Sustainability Report | General Information Sustainability Report | General Information Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/Not Material Chapter Page ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 Not material ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 Not material ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex 1 Not material ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Material Policies (G1) 192 ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) Material Incidents of corruption and bribery 196 ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex 1 Not material Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 113 113 Sustainability Report | General Information Sustainability Report | General Information IRO-2 Disclosures requirements covered in MPCC’s sustainability statement The following table shows all disclosure requirements complied with in MPCC’s sustainability statement. Since MPCC has less than 750 employees, information regarding E4 – Biodiversity and ecosystems, S1 – Own workforce and S2 – Workers in the value chain is covered by Disclosure requirement BP-2 rather than by the relevant disclosure requirements under each topical standard. List of material disclosure requirements Paragraph (page numbers) BP-1 General basis for preparation of the sustainability state ment BP-2 Disclosures in relation to specific circumsta nces Entire E4 – “Biodiversity and ecosystems” cha pter Entire S1 - "Own Workforce" cha pter Entire S2 – “Workers in the value chain ” cha pter GOV-1 The role of the administrative, management and supervisory bo dies GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodi es GOV-3 Integration of sustainability-related performance in incentive sch emes GOV-4 Statement on Due Dilig ence GOV-5 Risk management and internal con trol SBM-1 Strategy and business m odel SBM-2 Interests and views of stakehol ders SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Material impacts, risks and opportunities (E1 – “Climate change”, E2 – ”Pollution”, E4 – “Biodiversity and ecosytstems”, E5 – “Resource use and circular economy”, S1 – “Own workforce”, S2 – “Workers in the value chain”, G1 – “Business conduct”) IRO-1 Description of processes to identify and assess material impacts, risks and opportuni ties IRO-2 Appe ndix List of material disclosure requirements Paragraph (page numbers) MDR-P Policies related to climate change mitigation and adapta tion Policies related to pollut ion Policies related to biodiversity and ecosys tems Policies related to resource use and circular eco nomy Policies ( S1 – “Own workforce” , S2 – ”Workers in the value chain” , G1 – ”Business condu ct” ) MDR-A Actions related to climate change mitigation and adapta tion Actions and resources related to pollut ion Actions and resources related to biodiversity and ecosys tems Actions related to resource use and circular eco nomy Actions ( S1 – “Own workforce” , S2 – “Workers in the value cha in” ) MDR-T Targets related to climate change mitigation and adapta tion Targets related to pollut ion Targets related to biodiversity and ecosys tems Targets ( S1 – “Own workforce” , S2 – “Workers in the value cha in” ) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 114 114 Sustainability Report | General Information Sustainability Report | General Information List of material disclosure requirements Paragraph (page numbers) E1-1 Transition Plan for climate change mitiga tion E1-2 Policies related to climate change mitigation and adapta tion E1-3 Actions related to climate change mitigation and adapta tion E1-4 Targets related to climate change mitigation and adapta tion E1-5 Energy Consumption and mix E1-6 Gross Scopes 1, 2 and 3 and Total GHG emissi ons E2-1 Policies related to pollut ion E2-2 Actions and resources related to pollut ion E2-3 Targets related to pollut ion E2-4 Pollution of air, water and s oil E2-5 Substances of concern and substances of very high conce rn E2-6 Anticipated financial effects from pollution-related IROs G1-1 Business conduct poli cies Approach to corporate cul ture G1-2 Approach to relationship with suppl iers G1-3 Prevention and detection of corruption and bri bery G1-4 Incidents of corruption and bri bery G1-6 Payment pract ices Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 115 115 Sustainability Report | General Information Sustainability Report | General Information MEMBERSHIPS & INITIATIVES MPCC is committed to engaging, either directly or through third-party ship managers, in partnerships that support its objectives related to Environmental, Social, and Governance (ESG) standards. These partnerships include the following: Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) MPCC serves as a mission ambassador and project partner to MMMCZCS, an independent research and development think-tank dedicated to expediting the transition towards a net-zero future for the industry. The seconded employees are actively involved in key industry transition strategy projects, such as the development of “Katalyst,” a non-profit ‘book and claim’ registry aimed at accelerating the decarbonization of the shipping industry, the establishment of Green Shipping Corridors, and the Revision of the IMO’s Carbon Intensity Indicator (CII). MPCC, along with its partner companies at MPC Group, remains committed to supporting the Center by leveraging its extensive network and expertise in commercial and technical management, renewable energy, and synthetic fuels to facilitate the necessary transition within the maritime industry. Clean Shipping Alliance MPC Container Ships ASA is a member of the Clean Shipping Alliance (CSA), an industry association committed to advancing sustainable and responsible shipping practices. The CSA provides a platform for research, collaboration, and regulatory engagement, particularly in the area of emissions reduction technologies based on Exhaust Gas Cleaning Systems, Selective Catalytic Reduction and Carbon Capture Systems. By participating in the alliance, MPC Container Ships contributes to industry-wide efforts to improve environmental performance, ensure compliance with international regulations, and promote solutions that support the transition to a lower-emission maritime sector. VDR German Shipowners’ Association The German Shipowners’ Association (Verband Deutscher Reeder, VDR) is the leading industry organization representing the interests of German shipping companies at the national, European, and international levels. As the voice of the German maritime sector, the VDR engages in policy advocacy, regulatory discussions, and industry initiatives to support the competitiveness and sustainability of Germany’s shipping industry. The association works closely with government authorities, international organizations, and other stakeholders to shape maritime policy, promote innovation, and address key challenges such as decarbonization, digitalization, and the future of maritime labor. MPC Container Ships ASA, as a member of the VDR, actively contributes to discussions on regulatory developments and industry best practices, ensuring alignment with evolving environmental and operational standards. Executives of MPCC and its partner companies are represented in the Board of Directors and Committees. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 116 116 Sustainability Report | General Information Sustainability Report | General Information Eyesea MPCC and its CEO are founding members and ambassadors of Eyesea, a non-profit organization set up to map and report global pollution and maritime hazards. Using a global network of seafarers, maritime professionals, and volunteers, Eyesea gathers visual pollution data via a mobile app, helping to identify, track, and address ocean waste and environmental hazards. In 2024, the Eyesea Initiative expanded its global impact on marine pollution monitoring and cleanup through key partnerships and technological advancements. Notable developments include: Certification Standards: Collaboration with Normec Verifavia to explore certification for ocean pollution mapping. Global Partnerships: Agreements with Rapa Nui municipal authorities and Galápagos conservation groups to enhance pollution tracking. Innovative Responses: Partnerships with SurfCleaner for nearshore oil spill mitigation and Aurora Expeditions for pollution monitoring in Antarctica. Community Engagement: Beach cleanups in India and expanded local involvement in pollution reporting. These initiatives reinforce and align with MPC Container Ships’ commitment to ecological health and sustainable maritime practices. Maritime Anti-Corruption Network MPCC is a member of the Marine Anti-Corruption Network (MACN) – a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large. The Container Ship Safety Forum (CSSF) CSSF is a global business-to-business network that improves safety performance and management practices in the container shipping industry. MPCC’s technical manager, WASM, is a CSSF member and works together with other industry actors to continuously improve the safety culture and performance in the container shipping industry through measurement, reporting and benchmarking, sharing best practices and engaging with key stakeholders which is crucial for MPCC´s value-chain Health and Safety commitment. The Silk Alliance The Silk Alliance is an industry collaboration led by the Lloyd’s Register Maritime Decarbonization Hub, aiming to accelerate the transition to zero-emission shipping in Asia. The alliance brings together key stakeholders across the maritime value chain—including shipowners, fuel suppliers, ports, and regulators—to develop scalable and commercially viable green shipping corridors. By participating in the Silk Alliance, MPC Container Ships ASA contributes to the development of infrastructure, fuel supply networks, and regulatory frameworks necessary to support the decarbonization of regional and global shipping operations Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 117 117 Sustainability Report | General Information Sustainability Report | General Information Strategy, Business Model and Value Chain SBM-1 – Strategy & business model About MPCC MPC Container Ships is a leading global feeder container tonnage provider, headquartered in Oslo, Norway. Since its inception in April 2017, MPCC has undergone rapid growth to become one of the world’s leading feeder container tonnage providers, focusing its operations on intra-regional trade lines that connect major ports with smaller, regional ones. MPCC´s vessels are chartered out to global liner shipping companies and regional carriers. MPCC employs a diverse team of around 40 industry professionals across key operational functions. MPCC’s value chain comprises around 1,400 seafarers serving aboard MPCC´s vessels, which make its operations possible enabling the seamless transportation of goods across the globe. While MPCC subcontracts commercial and technical ship management and crewing services to third- party providers, the Company maintains rigorous oversight and accountability for their performance. Operations extend across three key locations: Oslo, Norway; Hamburg, Germany; and Rhoon, the Netherlands. These strategically positioned offices support its commitment to delivering exceptional services to its global customers. Strategy, main challenges and critical solutions Tackling the environmental challenges of the shipping industry One of the core challenges for the shipping industry is the pressure to decarbonize, as it is a hard-to-abate sector requiring drastic reductions in GHG emissions. Regulatory frameworks such as the IMO 2030 Strategy have set ambitious targets, including net-zero emissions of international shipping by 2050 and a 40% decrease in carbon intensity by 2030 compared to 2008 levels. Likewise, the transition to renewable fuels, such as methanol, is critical to reduce reliance on conventional fossil fuels. However, this energy transition is hindered by high costs, limited supply chain infrastructure, and uncertainties in fuel and energy availability. Other key challenges for the industry include mitigating air and water pollution, addressing biodiversity impacts, and reducing the resource-intensity of operations. These challenges are further complicated by split incentives for retrofitting between ship owners and charterers and regulatory inconsistencies, necessitating solutions such as cost-sharing models and industry collaborations. MPCC tackles these challenges by embedding sustainability at the core of its strategy. MPCC is committed to driving progress in key areas, including decarbonization, circularity, pollution management, biodiversity protection. These priorities, described in the Environmental chapters, guide the Company’s efforts to create long-term resilience. Cultivating a culture of safety and governance Another key focus area related to the sustainability aspects of its strategy is ensuring human rights as well as health and safety in the maritime industry. This is a critical challenge given the inherent risks associated with offshore operations and ship recycling. One of MPCC’s key strategic objectives is to foster workforce well-being and establish a strong safety culture that prioritizes safe practices at sea and across the value chain. Further details on these goals and actions are found in the Social chapters. Business model and Value chain Significant products and services MPCC provides feeder container vessels to global liner companies and regional carriers, under Time-Charter Agreements. The vessels are employed in intra-regional trade lanes which are critical in connecting major ports on intercontinental shipping lanes with smaller, regional ports. The vessels are chartered out on Time- Charter Contracts, ensuring stable revenue streams while meeting the diverse needs of a global customer base. Significant markets and customer groups MPCC operates as a leading containership owner specializing in the feeder segment with vessels below 6,000 TEU. The primary focus lies in owning and chartering out a portfolio of container ships, Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 118 118 Sustainability Report | General Information Sustainability Report | General Information enabling efficient and reliable transportation for intra-regional trade lanes on Time-Charter Contracts. The key markets include Asia, South America, Europe, the Middle East, and Africa. These regions are critical for the Company’s intra- regional trade services, which connect economies and support supply chains across industries. MPCC serves a diverse customer base, including major global shipping companies such as Maersk A/S and Hapag Lloyd AG, as well as regional carriers. The forward charter backlog was at USD 1.1bn as per 31.12.24. 74% of the forward charter backlog is again counterparties that are categorized as the top 10 liners (ranking is based on list of 100 largest container/ liner operators by Alphaliner). In total, over 90% of the revenue backlog is with top 10 lines and cargo-backed, with an average contract duration of 2 years. Employee groups The following table summarizes employees per location, excluding interns and externals, and employees on regular leave. Location Headcount Oslo 6 Hamburg 29 Rhoon 3 Value chain Upstream MPCC’s upstream actors comprise raw material suppliers (steel, fuel, plastics), tiered shipbuilders, and crewing agencies. Shipbrokers and commercial management services facilitate vessel chartering and fleet capacity access. These actors are indirectly linked to MPCC through business relationships, which influence operational capabilities and compliance with international standards. Technical managers provide oversight of vessel maintenance, energy efficiency upgrades, and safety compliance. These functions directly impact MPCC’s operational reliability and alignment with sustainability objectives. Own operations The Company’s core business involves managing its fleet and providing transportation services via Time-Charter Agreements to global liner shipping companies and regional carriers. Corporate functions, including finance, operations, commercial and technical asset management, investor relations as well as general- and sustainability management, support operational effectiveness of the Company. MPCC maintains full control over these functions. Downstream Downstream actors include MPCC’s charterers and cargo owners, who use the Company’s transportation services. MPCC collaborates with these stakeholders to meet operational and sustainability requirements, including adherence to the EU Fit-for-55 regulatory measures as well as international regulations such as the Carbon Intensity Indicator (CII). Waste management partners handle both office and vessel-related waste, while ship-recycling companies manage environmentally responsible disposal at the end of a vessel’s lifecycle. Value chain inputs, outputs and outcomes MPCC’s business relies on key inputs such as resources (steel, fuel, plastics), a skilled workforce, vessel infrastructure, and external services (chartering, maintenance, and compliance). These inputs are developed and maintained through strategic partnerships with suppliers and service providers. The Company delivers transportation services that create value for stakeholders by enabling efficient global trade. Customers benefit from reliable and sustainability-focused operations, investors experience returns through resilient financial performance, while regulatory compliance reduces risks across the value chain. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 119 119 Sustainability Report | General Information Sustainability Report | General Information Table 1: MPCC’s value chain Corporate functions Management & support functions (Marketing, HR, finance, office management, …) Raw materials Mining of metals and rare earths Polymerisation of plastics Extraction of oil and gas Value chain positions deemed out of scope, excluded from this year’s DMA, – maybe to be considered in the future Retail to end- consumers / Use of trans- ported products Cargo Owner Ultimate user of shipping transports Tier 2-3 suppliers Manufacturing of products used Manufacturing of products transported Construction of infrastructure (e.g., Harbour) End-of-life of trans-ported products Waste mngt (onshore) Office related waste Waste mngt (offshore) Vessel related waste Ship- recycling Tier 1 Suppliers Shipbuilders / Shipyards, wholesaler for office equipment, insurance, … Indirectly linked through business relationships to MPCC’s processes(sub-sub suppliers) Influenced by, directly linked to or, connected to MPCC’s processes(supplier) Full control and directly caused by MPCC Influenced by, directly linked to or, connected to MPCC’s processes (supplier) Indirectly linked through business relationships to MPCC’s processes (customer) Use of product and end-of-life Shipbroker Commercial mngt and access to chartering solutions Transportation services Planning of transportation, customer management and service Technical managers Active management and operations of MPCC´s fleet Charterers of tonnage Employ vessels in their own networks to offer transport of containers to shippers. Crewing agency Selection and management of offshore workforce Core business Upstream Own activities Downstream Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 120 120 Sustainability Report | General Information Sustainability Report | General Information Sustainability-related goals MPCC’s commitment to sustainability is rooted in its vision to advance sustainable container shipping that connects the world’s ports to meet global needs. The Company is dedicated to embedding its material topics and achieving its ambitious sustainability goals across its own operations and value chain. Key sustainability goals include: Products and services: MPCC aims to reduce its fleet’s average GHG emission intensity – measured as emissions per deadweight ton nautical mile (AER) – by 45% until 2030 compared to 2008 levels and aims to achieve net-zero emissions by 2050. Customer categories: MPCC works closely with global liner shipping companies and regional carriers, many of whom share ambitious decarbonization goals. Collaborative initiatives, such as cost-sharing agreements for energy efficiency retrofits, align the MPCC´s efforts with customer objectives and drive sustainability across the shipping value chain. Geographical areas and stakeholder relationships: MPCC is committed to applying consistent sustainability standards across all regions of its operations, ensuring no differentiation between geographies. The Company’s goal is to operate its intra-regional trading vessels effectively and responsibly, while maintaining compliance with local and environmental regulations such as the EU’s Fit for 55 package and the IMO framework. By continuing to foster close relationships with stakeholders, including regulatory bodies and regulators, MPCC will ensure adherence to these standards and continue to advance its sustainable shipping practices globally. MPCC’s services, markets and customer groups are strategically aligned with these sustainability goals. Particularly, they reflect a clear commitment to decarbonization, safety and operational resilience. By integrating sustainability goals into its core services, MPCC strengthens its position as a trusted partner, providing solutions that meet the evolving needs of its customers and the environment. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 121 121 Sustainability Report | General Information Sustainability Report | General Information Sustainability Governance GOV-1 – The role of the administrative, management and supervisory bodies The administrative, management and supervisory bodies of MPCC consists of the Board of Directors (the Board), the Risk, Audit and Sustainability Committee (RASC), and the Renumeration Committee. Together, the Board and the RASC are responsible for ensuring compliance with internal controls, risk management, and the oversight of sustainability-related IROs. Composition and diversity of the governance bodies The Board of Directors consists of five members, two of whom are female, providing a gender diversity ratio of 40%. Of the total members, three are classified as independent non-executive directors, representing 60% independence within the supervisory body. The Risk, Audit and Sustainability Committee comprises three members, with two members categorized as independent and one as non-independent. The committee’s gender composition includes two females and one male. Collectively, these members bring specialized expertise in finance, investment, ESG, decarbonization and cleantech, aligning with MPC Container Ship’s operational priorities. The Renumeration Committee , comprising three members (two male and one female), is responsible for overseeing the Company’s renumeration policies and CEO, Co-CEO & CFO as well as COO employment terms. Two of the committee members are independent. Currently, there are no employees or worker representatives on the Board or its subcommittees. Access to sustainability-related expertise and skills The supervisory and management bodies possess a variety of appropriate skills and expertise reflecting the material IROs. Members of the Board possess expertise in shipping, decarbonization, cleantech innovation, and finance, as well as experience across international markets. Members include professionals with board leadership experience across shipping, energy and technology sectors with a focus on ESG, and auditing, entrepreneurial experience in the maritime sectors, stock listings and strategic growth across global shipping markets. Expertise is maintained through the appointment of individuals with sector-specific experience aligned with MPCC’s material IROs, such as shipping decarbonization, ESG strategy, and financial oversight. Roles and responsibilities in sustainability oversight The governance structure of MPCC integrates sustainability oversight through designated roles and delegated responsibilities. While the Rules of Procedure for the Board of Directors outline the Board’s overall oversight of the company’s operations and key topics, sustainability-related impacts, risks, and opportunities are primarily governed by the Sustainability Policy, which has been adopted by the Board. The Board of Directors: The Board retains the ultimate responsibility for oversight and governance of the Company’s sustainability-related IROs, and delegates the responsibility and authority to the Risk, Audit, and Sustainability Committee (RASC). The Board is responsible for approving the sustainability strategy and ensuring its alignment with the Company’s operational and financial objectives. Risk, Audit, and Sustainability Committee (RASC): As a preparatory and advisory body, the RASC assists the Board by defining the Company’s sustainability strategy, goals, targets, and action plans. The Committee ensures a holistic risk management approach, with an equal focus on environmental, governance and social aspects. The RASC is also tasked with: Overseeing the identification and management of material IROs and defining ESG priorities Ensuring compliance with regulatory requirements and international sustainability standards. Monitoring the integration of sustainability measures into the Company’s operational processes, including decarbonization initiatives and risk management strategies. Reviewing and approving the annual sustainability statement, aligning with the Company’s broader strategic objectives. Renumeration Committee: Although primarily responsible for renumeration-related matters, the Renumeration Committee indirectly supports sustainability objectives by ensuring alignment between executive compensation and strategic ESG goals. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 122 122 Sustainability Report | General Information Sustainability Report | General Information Executive Management: The Chief Executive Officer (CEO) is accountable for the implementation of the material IROs, including actions, and signing the annual sustainability statement. Supporting the CEO are the Group Sustainability Officer, taking ownership of the IROs on a topic and content level, and the Chief Compliance Officer, who ensures the integration of sustainability policies and regular review processes. The CEO delegates responsibilities for IROs to these officers, who report directly to the executive bodies and regularly provide updates on sustainability performance to the Board of Directors and the Risk, Audit, and Sustainability Committee (RASC). Dedicated governance controls and procedures are integrated across key functions, including through the Sustainability & Regulatory Affairs Department, which supports the governance bodies by preparing sustainability initiatives and coordinating progress reporting. The responsibilities for IROs are reflected in reporting structures and integrated with sustainability governance processes. Specifically, the Executive Management maintains oversight through regular engagement with governance bodies. Target setting and monitoring progress The Sustainability & Regulatory Affairs Department plays a key role in supporting governance bodies with preparatory information, including suggested climate target ambitions and sustainability- related business opportunities. Key processes include: Facilitating the setting of ambitious ESG targets by providing insights on double materiality assessments and decarbonization pathways. Monitoring progress toward sustainability goals and aligning reporting with international standards. Regularly updating the Board and committees on the status of identified impacts, risks, and opportunities. GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies The Board, RASC and Executive Management are informed about material IROs by the Sustainability & Regulatory Affairs Department at least on a quarterly basis. The governing bodies consider material impacts, risks, and opportunities as a central part of overseeing the Company’s strategy, decisions on major transactions, and risk management processes. The annual review of IROs and the Double Materiality Assessment (DMA) serves as a foundation for these considerations. These topics are discussed during RASC meetings and in broader meetings involving the Board of Directors and Executive Management. The Company’s approach to governance is evolving as it works to strengthen the integration of sustainability into decision-making processes. A structured process for integrating IROs into governance practices, including a systematic approach for evaluating trade-offs associated with these IROs, has not yet been established. However, the Company remains committed to enhancing its governance framework to further address material IROs and embedding sustainability considerations across its operations. The administrative management and supervisory bodies have addressed all material impacts, risks and opportunities during the reporting period as part of the DMA process. GOV-3 – Integration of sustainability-related performance in incentive schemes MPCC has introduced a long-term remuneration scheme tied to sustainability for its executive management. Designed to drive long-term value creation, the scheme emphasizes measurable sustainability performance and alignment with MPCC’s strategic direction. A third (33.3%) of variable remuneration for the CEO, CFO and COO is tied to achieving fleet carbon intensity targets, measured by the Annual Efficiency Ratio (AER). The scheme is reviewed by the Renumeration Committee and approved at the Annual General Meeting. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 123 123 Sustainability Report | General Information Sustainability Report | General Information GOV-4 Statement on Due Diligence Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? a) Embedding due diligence in governance, strategy and business model ESRS 2 GOV-2, page 123 People and environment ESRS 2 GOV-3, page 123 People and environment ESRS 2 SBM-3, page 133 People and environment ESRS 2 SBM-3-E1, page 134 & 140 –143 ESRS 2 SBM-3-E2, page 134 & 152 –153 ESRS 2 SBM-3-E3, not material ESRS 2 SBM-3-E4, page 135 & 159 ESRS 2 SBM-3-E5, page 135 & 162 Environment ESRS 2 SBM-3-S1, page 135 & 169 –170 ESRS 2 SBM-3-S2, page 135 & 175 –178 ESRS 2 SBM-3-S3, not material ESRS 2 SBM-3-S4, not material People ESRS 2 SBM-3-G1, page 135 & 190– 191 People and environment Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? b) Engaging with affected stakeholders in all key steps of the due diligence ESRS 2 GOV-2, page 123 People and environment ESRS 2 SBM-2, page 128 People and environment ESRS 2 IRO-1, page 130 People and environment ESRS 2 MDR-P: E1-2, page 144 E2-1, page 154 E3-1, not material E4-2, page 160 E5-1, page 163 Environment ESRS 2 MDR- P: S1-1, page 170 S2-1, page 178 S3-1, not material S4-1, not material People G1-1, page 191 People and environment Topical ESRS: S1-2, page 128 S2-2, page 128 S3-1, not material S4-2, not material People Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 124 124 Sustainability Report | General Information Sustainability Report | General Information Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? c) Identifying and assessing adverse impacts ESRS 2 IRO-1, page 130 People and environment ESRS 2 SBM-3, page 133 People and environment ESRS 2 SBM-3-E1, page 134 & 140– 143 ESRS 2 SBM-3-E2, page 134 & 152– 153 ESRS 2 SBM-3-E3, not material ESRS 2 SBM-3-E4, page 135 & 159 ESRS 2 SBM-3-E5, page 135 & 162 Environment ESRS 2 SBM-3-S1, page 135 & 169 –170 ESRS 2 SBM-3-S2, page 135 & 175 –178 ESRS 2 SBM-3-S3, not material ESRS 2 SBM-3-S4, not material People ESRS 2 SBM-3-G1, page 136 & 190 –191 People and environment ESRS 2 MDR-A: E1-3, page 145 E2-2, page 155 E3-2, not material E4-3, page 160 E5-2, page 164 Environment Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? c) Identifying and assessing adverse impacts ESRS 2 MDR-A: S1-4, not material S2-4, page 179 S3-4, not material S4-4, not material People E1-1, page 140 E4-1, page 135 Environment G1-1, page 191 G1-2, page 193 G1-3, page 194 People and environment ESRS 2 MDR-M: E1-5, page 147 E1-6, page 148 E2-5, page 156 E3-4, not material E4-5, page 160 E5-4, page 165 E5-5, not material Environment Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 125 125 Sustainability Report | General Information Sustainability Report | General Information Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? c) Identifying and assessing adverse impacts ESRS 2 MDR-M: S1-8, not material S1-9, not material S1-10, not material S1-11, not material S1-12, not material S1-13, not material S1-14, not material S1-15, not material S1-16, not material S1-17, not material People Core elements of Due Diligence Paragraphs or pages in the Sustainability Statement Does the disclosure relate to people and/or the environment? c) Identifying and assessing adverse impacts G1-4, page 196 G1-5, not material G1-6, page 196 People and environment ESRS 2 MDR -T E1-4, page 146 E2-3, page 155 E3-3, not material E4-4, page 160 E5-3, page 165 Environment Topical ESRS (Insert any other disclosure – e.g., entity or sector specific – which tracks the effectiveness of actions), page 182 People and/or environment Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 126 126 Sustainability Report | General Information Sustainability Report | General Information GOV-5 – Risk management and internal control MPCC has established risk management and internal control processes to ensure the availability, reliability, accuracy and compliance of sustainability-related data. These processes span the entire reporting lifecycle, including data collection, validation, communication and alignment with regulatory standards such as the CSRD and the ESRS. The main features include centralized, cloud-based data management with built-in redundancy to enhance accuracy and reliability. Structured communication frameworks and a two-level responsibility structure help prevent miscommunication and inaccuracies in qualitative and quantitative data. The Company provides ongoing training and collaborates with external advisers to ensure compliance with evolving sustainability standards and mitigate risks related to misunderstandings of requirements. MPCC employs a structured quantitative risk assessment framework to evaluate and manage risks associated with sustainability reporting. The methodology evaluates risks based on two factors: likelihood of occurrence and severity of impact. Likelihood is rated on a scale of 1 (rare) to 5 (almost certain), while severity is rated on a scale of 1 (negligible) to 5 (critical). A Risk Score (RS) is calculated as the product of these two factors: RS = likelihood × severity. Risks are categorized into three priority levels: Low Priority (RS ≤ 6): Managed through regular quality checks and communication protocols. Medium Priority (7 ≤ RS ≤ 15): Mitigated using data management systems, redundancy mechanisms, training programs, and external expert consultations. High Priority (RS > 15): Addressed with targeted mitigation efforts to resolve critical vulnerabilities. By applying this risk prioritization framework, the Company ensures mitigation resources are allocated effectively, focusing on medium- priority risks such as data quality and compliance with reporting standards. Key Risks and mitigation strategies The main risks to MPCC’s sustainability reporting are the potential for low data quality of quantitative information, inaccuracies in qualitative information from miscommunication, and insufficient knowledge of reporting standards. These risks are mitigated through its data management system, structured communication, regular check-ins and training programs. Integration and communication of findings MPCC integrates findings from its risk assessments into relevant processes by reporting results to the RASC during quarterly meetings. These findings guide decision-making and prioritize actions, which are then implemented across departments, including data management, compliance, and reporting teams. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 127 127 Sustainability Report | General Information Sustainability Report | General Information SBM-2 – Interests and views of stakeholders Active stakeholder engagement plays a critical role in shaping sustainability efforts. The table below outlines MPCC’s key stakeholders, their areas of interest, engagement methods, frequency, and follow-up actions. Stakeholders Topics of interest to the stakeholder Arena of dialogue Regularity MPPC’s follow-up Employees and Consultants: Onshore staff and technical managers Determined, commitment Mindful, culture Climate, environmental impact Business ethics, training Intranet, management communication Performance appraisal Code of conduct Daily, Weekly, Monthly, Quarterly, Annually Involved through employers’ daily dialogue with managers Involved through internal communication channels Involved through weekly jour fixe involving all employees Customers and Collaboration Partners: Charterers and cargo owners using MPCC’s transportation services. Climate, environmental protection, human rights Proper and efficient operation Innovation Customer meetings Continuous dialogue Fairs Daily, Weekly, Monthly, Quarterly, Annually Customer conversations with key customers Engagement in customer dialogue in projects Participation in professional and industry forums Suppliers: Providers of raw materials, technical services, and vessel-related infrastructure. Climate, environmental protection, human rights, child labor Business ethics, compliance, governance, labor regulations and standards Working conditions Meetings Code of conduct Business Partner Guideline Monthly, Quarterly, Annually Initiation of dialogue and participation in public debates on topics related to environmental and climate targets and industry standards Contribution of expertise and open for all consultations Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 128 128 Sustainability Report | General Information Sustainability Report | General Information Stakeholders Topics of interest to the stakeholder Arena of dialogue Regularity MPPC’s follow-up Authorities, NGOs, and Industry Groups: Regulatory bodies and organizations influencing compliance and sustainability standards. Anti-corruption Regulatory compliance Updates on status of fleet and development Trends and opportunities Technology, R&D with focus to reduce environmental footprint Regular dialogue Meetings and discussions Sponsorships Presentations and guest speakers Quarterly, Annually Initiation of dialogue and participation in public debates on topics related to environmental and climate targets and industry standards Contribution of expertise and open for all consultations Financial Community, Investors and Owners: Stakeholders focused on MPCC’s financial performance, governance, and market strategy Financial results Market outlook Compliance and governance Strategy Phone and email communication Investor meetings and roadshows Press releases Annual and quarterly reports and presentations Conferences Daily, Weekly, Monthly, Quarterly, annually Frequent and transparent reporting Senior management is always available for 1:1 meeting outside of reporting periods Participating in forums, events and conferences The interests and views of key stakeholders are incorporated into the Company’s double materiality and due diligence processes. The Board and Executive Management are kept informed through the anchoring of the double materiality assessment. There were no strategic changes implemented as a direct result of stakeholder dialogues in the reporting period. However, the Company is continuously working on improving its communication and engagement with key stakeholders to strengthen its relationships and align on broader sustainability goals. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 129 129 Sustainability Report | General Information Sustainability Report | General Information Materiality Assessment Process IRO-1 Description of processes to identify and assess material impacts, risks and opportunities MPCC conducted its first double materiality assessment (DMA) in 2023, aligned with the ESRS and supported by an external sustainability consultancy. The assessment followed a structured four-step process, which remains the foundation of MPCC’s approach. In February 2025, MPCC updated its DMA to incorporate evolving regulatory requirements, emerging risks, and stakeholder expectations. While the methodology and four-step process remain unchanged, the 2025 update refined the materiality conclusions based on new insights and developments. The following section outlines the original 2023 DMA process, which remains the primary basis for materiality assessment, while also reflecting key updates introduced in the 2025 review. About the process The process to identify, assess, prioritize and monitor MPCC’s potential and actual impacts on people and the environment was informed by MPCC’s due diligence framework, including reviews of: Internal policies and procedures Human rights assessments The Enterprise Risk Management (ERM) risk inventory A structured stakeholder engagement process. A total of 21 documents, 5 internal stakeholders, and 11 external stakeholders contributed to the identification and scoring of IROs. The assessment was conducted using objective ESRS scoring parameters, where clearly material sustainability matters were deprioritized to focus on areas with greater uncertainty. Matters with no identified impacts were prioritized to avoid overlooking potential risks. Step 1. Mobilization The first step was to identify relevant sustainability matters in the context of MPCC´s activities, business relationships, value chain and affected stakeholders. The process followed the due diligence framework and stakeholder engagement insights described above. SASB standards applicable to MPCC’s industry were reviewed to provide a sector-specific perspective and identify potential entity- specific topics for inclusion. The following sustainability matters were included in the list of ESRS sustainability matters at this stage to better reflect MPCC’s operations and industry context: De-clustering the sub-sub-topic “Health and Safety” from “Working conditions (workers in the value chain)” and defining it as its own sustainability matter under S2 – Workers in the value chain Adding an entity-specific sustainability matter called “Search and Rescue” Adding additional IROs to related to “Working conditions of own workforce” and “equal opportunities”. The following sustainability matters were omitted as they were deemed misaligned with MPCC’s business model: The sub-topic “Marine resources” in E3 – “Water and marine resources” was omitted after discussions with internal stakeholders as it holds no material relevance to MPCC’s business model. S3 – “Affected communities”, including sub-topics “Communities’ economic, social and cultural rights”, and “Rights of indigenous peoples were omitted as MPCC is an offshore service and vessel operator with minimal interaction and negligible impact on affected communities. S4 – “Consumers and end-users”, including sub-topics “Information-related impacts”, “Personal safety”, and “Social inclusion” was rendered irrelevant due to the nature of MPCC’s operations. As a maritime service provider, MPCC activities involve serving direct clients, and does not extend to direct consumer engagement. The sub-topic “Animal Welfare” in G1 – “Business Conduct” was omitted after discussions with internal stakeholders as it holds no material relevance to MPCC’s business model. Special attention was given to areas of MPCC’s activities as well as geographies that could have heightened risks of adverse impacts. This involved key areas of concern identified in the saliency assessment, including crew working conditions, ship recycling, diversity and discrimination, minority rights, supply chain management, search and rescue operations, and security-related privacy issues. Specific attention was also given to risks and impacts Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 130 130 Sustainability Report | General Information Sustainability Report | General Information associated with corruption, bribery, and human rights violations through the screening of key activities, sectors and locations linked to MPCC’s value chain and business model. Each identified impact was evaluated to determine its connection to a material risk or opportunity. Step 2. Stakeholder engagement The DMA was built on structured stakeholder engagement, facilitated by an independent consultant to ensure objectivity. Stakeholder input was collected through structured interviews with five internal employees (selected for their subject matter expertise), and 11 external representatives (suppliers, investors, and affected stakeholders). Employees and workers in ship recycling were represented as affected stakeholders. Interviews were conducted to score IROs at the gross level and pinpoint the most significant IROs within each stakeholder’s area of expertise. Sustainability matters with no identified IRO was highlighted in the interviews to ensure no areas were overlooked. Areas such as ship recycling and waste management received additional scrutiny due to their potential impact on MPCCs value chain. Feedback was consolidated into individual IROs, validated, and scored. Step 3. Workshop A workshop with MPCC senior representatives was conducted to finalize materiality decisions. Participants reviewed a pre-read containing preliminary scoring of sustainability matters, categorized as material, non-material, and possibly material. Sustainability matters were assessed based on the following criteria: Material: IROs significantly exceed the threshold. Possibly Material: IROs are marginally above or below the threshold. Non-Material: IROs are well below the threshold. Discussions focused on ensuring that thresholds accurately reflected MPCC’s business model and impacts, verifying that sustainability matters were correctly categorized as material or non-material, and confirming that all significant IROs had been identified and appropriately scored. The IRO scores were refined based on the discussions and sustainability matters were confirmed or reclassified. Step 4. Finalization and documentation The final documentation comprised a management presentation summarizing the results and a workbook with detailed data at the IRO level. Scoring thresholds and methodology The thresholds and time horizons used for scoring are based on ESRS 1 and to the extent possible on the ERM system of MPCC but adjusted where not functionally applicable. The thresholds follow the categorization of short-, medium-, and long-term horizons, defined by the following intervals: Short term: <1 year Medium term: 1 – 5 years Long term: > 5 years The quantitative scoring parameters are based on the requirements of the ESRS 1: Impact materiality: Scale, scope, irremediability, likelihood (based on if an impact is positive/negative and actual/potential). The threshold for human rights-related impacts was lowered based on ESRS 1 requirements. Financial materiality: Financial magnitude of risk/opportunity, likelihood, and the nature of the financial effect. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 131 131 Sustainability Report | General Information Sustainability Report | General Information There were three key decision points throughout the process: Key decision point Decision making Internal control procedures Identification of people who can identify IROs related to sustainability matters. The identification of stakeholders to engage with was done by the project coordinator Control that all sustainability matters were covered by stakeholders. Control that all sustainability matters had identified IROs throughout the stakeholder engagement process. If none were identified, sanity checks with key stakeholders to see that this was reasonable due to the nature of the business was performed. Scoring of sustainability matters. Scoring of sustainability matters was conducted by the stakeholder who identified it. Scoring includes a description of rationality for each IRO. Scoring was based on ESRS guidelines with a consistent application of methods due to the usage of an IRO workbook. ERM system of MPCC has been utilized to the extent possible Final workshop and placement of sustainability matters. Senior management and reporting specialists took The workshop focused on sustainability matters where scoring was close to the threshold to ensure correct materiality decision for borderline cases and sustainability matters where participants were unsure of preliminary placement based on their experience and knowledge of MPCC. Evaluation of scoring was done based on 3 criteria: Does the scoring of financial materiality match MPCC’s business model? Does the scoring on impact material ring true relative to MPCC’s effect on others? Does the existing scoring make sense? Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 132 132 Sustainability Report | General Information Sustainability Report | General Information Process integration, input parameters and revisions Currently, the process to identify, assess, and manage impacts, risks and opportunities is not integrated into MPCC’s ERM system. No formalized process exists to incorporate DMA results into the overall risk management framework. The assessment utilized internal documents and representative internal and external resources. Data points were triangulated across multiple sources to ensure reliability, with a representative overseeing comprehensive coverage of sustainability matters. Future revisions will follow an established review schedule to maintain accuracy and relevance. E1 disclosure requirement related to ESRS 2 IRO-1 MPCC’s climate-related impacts, risks and opportunities were identified and assessed during the DMA, which was followed by a resilience analysis outlined in SBM-3. The process evaluated the Company’s GHG emissions and their impacts on climate change, particularly emissions from vessel operations, which account for the majority of Scope 1 emissions. Physical risks were assessed based on how MPCC’s assets and operations may be exposed to climate-related hazards such as extreme weather events. This assessment included upstream risks, such as those arising from ship recycling activities, and risks to core fleet operations, including potential damage to vessels and disruptions to port accessibility due to severe weather conditions. Transition risks and opportunities were identified through the examination of regulatory developments. the DMA process did not apply a formal 1.5°C scenario model to evaluate transition events. MPCC has aligned its climate ambition with the IMO’s 2023 GHG Strategy, which was developed based on scientific findings, climate scenario models, and impact assessments with global consensus. While formal climate scenarios were not directly used in MPCC’s assessment, the evaluation of climate-related risks and opportunities was informed by regulatory trends, technological advancements and stakeholder input across short-, medium-, and long-term time horizons. The materiality of climate-related risks and opportunities was evaluated through insights provided by internal and external stakeholders. E2, E3, E4, and E5 disclosure requirement related to ESRS 2 IRO-1 During the DMA process, interviews were conducted with both internal and external stakeholders to identify and evaluate actual and potential IROs related to pollution, water, biodiversity and resource use. Stakeholders were selected based on their expertise in MPCC’s operations, value chain, and regulatory obligations to provide comprehensive insights into the Company’s sustainability context. MPCC has not conducted formal screening of site locations and business activities nor engaged in consultations with affected communities to identify and assess material pollution-related IROs in its operations or value chain. Systemic risks associated with biodiversity and ecosystem dependencies were not part of scope for the DMA assessment. 2025 Update MPCC periodically reviews its DMA to evaluate its continued relevance and robustness. These reviews consider evolving trends, key assumptions, contextual factors, and changes in the regulatory landscape. The last review was conducted in February 2025 with a focus on ensuring the results were robust and reflective of industry developments. The main change was caused by MPCC’s decision to categorize the offshore workforce as workers in the value chain rather than its own workforce. This decision was backed by the comprehensive value-chain analysis and mapping as shown on page 120 . Moving the IROs related to this group of workers from S1 – Own workforce to S2 – Workers in the value chain resulted in some changes in the material sustainability matters. After this change, Health & safety and other work-related rights for own workforce were no longer material sustainability matters, while the materiality of working conditions and other work-related rights were solidified for S2 – Workers in the value chain. The outcome of the DMA can be found below. SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model The material impacts, risks, and opportunities identified through the materiality assessment are summarized below and described in detail in the topical chapters. Unless stated otherwise, all identified impacts, risks, and opportunities are fully addressed within the ESRS disclosure requirements. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 133 133 Sustainability Report | General Information Sustainability Report | General Information Table 2: MPCC’s material impacts, risks and opportunities E1 Climate Change Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Climate change mitigation – Scopes 1, 2 and 3 GHG emissions contribute to climate change Actual negative impact     Energy – Energy-intensive operations contribute to climate change Actual negative impact    Climate change mitigation – Positive impact of methanol-fueled vessels Actual positive impact   Climate change mitigation – Increased costs from GHG pricing Risk   Climate change mitigation – Transitional risk of increasing regulatory demand for decarbonization Risk   Climate change mitigation – Competitive advantage through early positioning Opportunity   Climate change mitigation – Competitive advantage from lower-emissions services Opportunity   Climate change mitigation – Methanol vessels as an advantage in FuelEU maritime regulations Opportunity   Climate change mitigation – Reduction in GHG emissions through investment in newbuilt vessels Opportunity   Climate change mitigation – Increased revenues through maintaining a CII above average Opportunity   E2 Pollution Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Air pollutants from own operations Actual negative impact   Pollution from antifouling measures Actual negative impact Improperly managed hazardous waste from ship recycling Actual negative impact   Increasing regulatory pressure to reduce air pollutant emissions Risk   Whistleblower case for deliberate pollution of water in US territory Risk   Non-compliance with EU ship recycling rules on inventories of hazardous substances Risk   Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 134 134 Sustainability Report | General Information Sustainability Report | General Information E4 Biodiversity and ecosystems Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Biofouling on the hull of vessels Actual negative impact   GHG emissions driving biodiversity loss Actual negative impact E5 Resource use and circular economy Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Resource inflows – high intensity resource consumption Actual negative impact   Resource inflows – paints used for hull Actual negative impact   S1 Own Workforce Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Recurring Working conditions Potential case of high levels of stress and long working hours for own employees Potential negative impact   Potential challenges with employee retention and turnover Potential negative impact   Risk of employee stress and burnout Risk   S2 Workers in the value chain Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Recurring Working conditions Decreased lifespan of ship recycling workers Actual negative impact   Accidents and fatalities in ship recycling yards Potential negative impact   Fatalities of workers in the value chain Potential negative impact   Suboptimal working conditions for supply chain workers Potential negative impact   Stress in the workforce (seafarers) Potential negative impact   High retention of staff contracts of crew onboard vessels Actual positive impact   Overtime seafarers Actual positive impact   Major health and safety issues (seafarers) Potential negative impact   Non-compliance with Hong Kong convention on working conditions of workers in ship recycling Risk   Societal development leads to people losing interest in jobs with hard-working conditions Risk   Recording of LTIF and “Lessons Learned” Opportunity   Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 135 135 Sustainability Report | General Information Sustainability Report | General Information S2 Workers in the value chain Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Recurring Other work-related rights Human rights abuses of smaller suppliers down the value chain Potential negative impact   Limited freedom of ship recycling yard workers Potential negative impact   Minors working in shop recycling yards Potential negative impact   Single rooms onboard of vessels (Seafarers) Actual positive impact   Availability of internet connection (seafarers) Actual positive impact   G1 Business Conduct Location in the value chain Time horizon Material impacts, risks and opportunities Upstream Own operations Down- stream Short- term Medium- term Long- term Corporate culture – Openness and values of trust and collaboration Positive actual impact   Payment practices – Payment of suppliers on time Positive actual impact   Management of relationships with suppliers – Engagement with ship recycling yards Positive potential impact   Payment practices – Technical manager needs to stop management of an MPCC vessel due to lack of funding Risk   Corruption and bribery – Money laundering risk due to the nature of the business Risk   Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 136 136 Sustainability Report | General Information Sustainability Report | General Information Resilience assessment In 2024, MPCC conducted a resilience assessment to evaluate its capacity to address material environmental impacts, risks, and opportunities. The assessment aligned with MPCC’s DMA, incorporating key risks across fleet operations and downstream activities such as shipbuilding and technical management. Downstream logistics operations were reviewed but excluded from detailed analysis due to lower material significance. The analysis, completed in Q4 2024, employed scenario-based modeling to assess MPCC’s exposure to climate transition risks, pollution mitigation, resource circularity, and regulatory shifts affecting its business model. The assessment assumes ongoing uncertainties in alternative fuel availability, infrastructure development, and regulatory changes, necessitating continuous monitoring and strategic flexibility. While emission-reducing technologies and port-based renewable energy infrastructure are expected to expand, the scale and timing of these developments remain uncertain. Climate resilience MPCC’s climate resilience assessment evaluated its ability to manage transition risks and market uncertainties over short (1–5 years), medium (5–10 years), and long-term (10–30 years) horizons: In the short term, the Company focuses on regulatory compliance, particularly Ship Energy Efficiency Management Plans (SEEMP) and FuelEU Maritime, while maintaining a competitive CII rating. Medium-term resilience is supported by investments in dual-fuel methanol vessels and securing synthetic marine diesel volumes, including co-investing in INERATEC, a company producing sustainable synthetic fuels. Long-term resilience depends on scalable renewable fuel and green technologies availability, with MPCC’s fleet renewal strategy and participation in green shipping corridors reinforcing adaptability. The assessment found MPCC to be highly resilient in the mid-term, given its proactive investment strategy and fleet renewal efforts. However, long-term resilience remains contingent on technological advancements, infrastructure readiness, and regulatory alignment. Continued investment in alternative fuels and strategic partnerships will be key to maintaining a competitive position. Assessment of resilience related to E2 Pollution MPCC identified air and water pollution risks from vessel operations and hazardous material management in ship recycling. Use of exhaust gas treatment systems and technical manager oversight supports strong mid-term resilience. However, the assessment identified rising regulatory pressures on ship recycling and stricter EU water pollution controls, which may drive compliance costs. To sustain long-term resilience, MPCC will need to strengthen mitigation measures, particularly in hazardous waste management and sustainable ship decommissioning. Assessment of resilience related to E5 Resource use and circular economy MPCC’s operations involve significant use of steel, particularly for vessel construction and maintenance. The Company’s Ship Recycling Policy adheres to international conventions to manage recyclable materials responsibly, reducing waste. Efforts to enhance circular resource use include waste reduction and material recycling initiatives. MPCC monitors resource inflows and outflows, exploring opportunities for resource efficiency improvements through partnerships and best practices in resource management. The assessment found MPCC to be resilient in the mid-term, with regulatory compliance and ongoing efficiency measures securing stability. Under increasing regulatory demands from the EU Circular Economy Action Plan and stricter material traceability requirements, maintaining compliance with the highest ship recycling standards and ensuring sustainable material sourcing will remain key to reinforcing long-term resilience. MPCC’s resilience strategy is built on regulatory compliance, fleet modernization, and strategic investments in alternative fuels. Through ongoing assessments, scenario analysis, and adaptation measures, the Company strengthens its ability to navigate environmental challenges and seize opportunities within the global low-carbon transition. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 137 137 Sustainability Report | General Information Sustainability Report | General Information Environmental Information E1 Climate Change 139 E1 Accounting principles 149 E2 Pollution 151 E2 Accounting principles 157 E4 Biodiversity and ecosystems 158 E5 Resource use and circular economy 161 E5 Accounting principles 166 Annual and Sustainability Report 2024 138 Sustainability Report | Environmental Information E1 Climate Change MPCC acknowledges the crucial role of maritime transportation in global trade while recognizing the environmental impact of shipping operations. MPCC is committed to responsible business practices, striving to minimize its climate footprint and manage related risks. Addressing climate change requires reducing emissions, optimizing energy use, and adapting to evolving environmental conditions across the value chain, including its own operations. MPCC’s climate strategy prioritizes emissions reduction through targeted initiatives such as enhancing fuel efficiency, modernizing the fleets, and improving operations. The Company actively collaborates with industry stakeholders and explore innovative technologies to drive decarbonization throughout the value chain. KPIs Reduce MPCC Well-to-Wake GHG emissions intensity (By 45% by 2030 compared to 2008) Relevant Policies Sustainability policy Environmental policy Reporting Standards Used ESRS E1 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 139 139 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E1-1 Transition Plan for climate change mitigation MPCC has several activities in place to achieve its defined decarbonization targets. While these activities do not constitute a formal climate transition plan at the time of this report, the Company is actively working on its development. The transition plan is scheduled for final approval by the Risk, Audit, Sustainability Committee and the Board in 2025. MPCC remains fully committed to managing its climate priorities and has already implemented a comprehensive sustainability strategy with defined targets. The timeline for the implementation of the transition plan reflects the Company’s dedication to ensuring a robust, effective approach aligned with both regulatory requirements and its broader sustainability objectives. Material Impacts, Risks and Opportunities Impact IRO Type Location in Value Chain Time Horizon Climate change mitigation – Scopes 1, 2 and 3 GHG emissions contribute to climate change Actual negative impact Own operations, upstream, downstream Short-term Energy – Energy-intensive operations contribute to climate change Actual negative impact Own operations Short-term Climate change mitigation – Positive impact of methanol-fueled vessels Actual positive impact Upstream Medium-term Climate change mitigation – Increased costs from GHG pricing Risk Own operations Medium-term Climate change mitigation – Transitional risk of increasing regulatory demand for decarbonization Risk Own operations Long-term Climate change mitigation – Competitive advantage through early positioning Opportunity Own operations Medium-term Climate change mitigation – Competitive advantage from lower-emissions services Opportunity Own operations Long-term Climate change mitigation – Methanol vessels as an advantage in FuelEU maritime regulations Opportunity Own operations Short-term Climate change mitigation – Reduction in GHG emissions through investment in newbuilt vessels Opportunity Own operations Medium-term Climate change mitigation – Increased revenues through maintaining a CII above average Opportunity Own operations Short-term The DMA determined the following impacts, risks and opportunities related to climate change. See page 137 in ESRS 2 for a description of the resilience assessment of MPCC’s strategy and business model in relation to climate change. Material impacts Climate change mitigation – Scopes 1, 2 and 3 GHG emissions contribute to climate change MPCC emits GHG emissions from its own operations (scope 1 and 2) and throughout its value chain (scope 3). These emissions have an actual negative impact on climate change over the short term. GHG emissions from the Company’s own operations (Scopes 1 and 2) are primarily driven by fuel consumption in its fleet, which Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 140 140 Sustainability Report | Environmental Information Sustainability Report | Environmental Information constitutes a significant portion of its climate-related impact. The Company’s Scope 3 emissions are generated throughout both the upstream and downstream supply chain. To mitigate these impacts, MPCC is investing in renewable fuel vessels, which offer a lower-carbon alternative to conventional marine fuels. This forms part of MPCC’s broader decarbonization strategy, with further actions detailed in E1-2. Energy – Energy-intensive operations contribute to climate change Operating in an energy-intensive industry, MPCC has a direct negative impact on climate change through energy consumption in its own operations. Fuel consumption for vessel propulsion is a major source of GHG emissions, which drive global warming and contribute to climate change. MPCC enhances energy-efficient vessel operations by equipping crews with advanced training and competencies to optimize fuel use. In parallel, the Company drives emissions reduction through fleet renewal, vessel retrofitting, and investments in renewable fuel-ready ships, making energy efficiency a core pillar of its decarbonization strategy. Climate change mitigation – Positive impact of renewable-fueled vessels MPCC has an actual positive impact on climate change through its investment in methanol-fueled vessels. Operationally, these vessels, equipped with dual-fuel engines, will partially run on methanol, reducing the Company’s reliance on high-intensity fossil fuels. Once in operation, these vessels will also contribute to the reduction of emissions from vessel operations, which are a key source of shipping-related climate impacts. The primary positive impact lies in the upstream supply chain. If methanol is sourced from renewable feedstocks (such as biomass), it can significantly reduce upstream (Scope 3) emissions associated with fuel production. Methanol is commonly produced from natural gas, which results in substantial carbon emissions during production. The methanol derived from renewable sources has a much lower carbon footprint, contributing to greater overall reductions in GHG emissions across the value chain. At an industry level, integrating these vessels into the global fleet helps drive demand for renewable methanol, which in turn supports the transition to cleaner fuels and strengthens supply availability. MPCC is committed to investing in renewable-fueled vessels to reduce upstream Scope 3 emissions in the well-to-tank phase, as part of its decarbonization strategy. Material risks Climate change mitigation – Increased costs from GHG pricing MPCC is exposed to regulatory and financial risks from GHG pricing mechanisms, such as the EU Emissions Trading Scheme (EU ETS) and fuel standards, which are expected to increase the cost of emissions and operational expenses. The distribution of these additional costs remains uncertain, with ongoing discussions on whether MPCC, its customers, or end-users will ultimately bear the financial burden. The risk is located within MPCC’s own operations and is expected to materialize in the medium-term. In response, the Company is actively monitoring regulatory developments and integrating GHG pricing mechanisms alongside potential fines into its strategy, including revising contractual terms to allocate GHG-related costs effectively across the value chain. MPCC invests in low-carbon technologies, retrofits and alternative fuels to limit its GHG cost exposure. The potential increase in costs from GHG pricing mechanisms can have a cascading impact on the business model, driving higher operational expenses and the need for increased investments to mitigate exposure to GHG-related costs. MPCC has not experienced financial effects from this risk so far. Climate change mitigation – Transitional risk of increasing regulatory demand for decarbonization MPCC faces a long-term transitional risk driven by the rapid increase in regulatory demands for decarbonization. Regulatory bodies, including the International Maritime Organization (IMO), have recently implemented mandatory decarbonization targets that align with the 1.5°C temperature goal of the Paris Agreement. These developments may necessitate significant retrofits, technological investments, and further upgrades, placing shipowners, including MPCC, in a position of having to make large-scale capital expenditures amidst regulatory uncertainty. The risk originates in the Company’s own operations and is expected to materialize in the medium-term. MPCC is actively monitoring regulatory developments and collaborating with stakeholders to Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 141 141 Sustainability Report | Environmental Information Sustainability Report | Environmental Information assess and implement retrofitting and upgrade measures to mitigate compliance risks while enhancing fleet efficiency. Stricter decarbonization regulations could have substantial effects on MPCC’s strategy and business model by causing increased capital expenditure for fleet upgrades and higher operating costs. MPCC has not experienced financial effects from this risk so far. Material opportunities Climate change mitigation – Competitive advantage through early positioning MPCC has identified an opportunity to gain a competitive advantage by being an early adopter of decarbonization measures in the shipping industry. By proactively positioning itself ahead of regulatory requirements, MPCC can strengthen its market position, particularly as regulations become more stringent and long asset lifespans in the shipping sector require forward-thinking strategies. Early investments in alternative fuels and low-carbon technologies are expected to strengthen MPCC’s capacity to offer sustainable shipping solutions and generate long-term commercial value. The opportunity is situated within MPCC’s own operations and is projected to unfold over the medium term. The current financial effects involve ongoing investments in fleet retrofits and eco-design vessels aimed at improving fleet efficiency and compliance. MPCC has already taken steps to reinforce this position by establishing a dedicated task force tasked with evaluating and implementing alternative fuel technologies and exploring innovative business models, including carbon capture opportunities. Climate change mitigation – Competitive advantage from lower-emissions services The transition towards lower-emissions services in the shipping industry presents MPCC with another opportunity to gain a competitive advantage against its peers. Clients increasingly prefer service providers capable of delivering lower-emissions solutions, driven by regulatory changes and rising costs for fuel-intensive industries. The trend is expected to strengthen MPCC’s market position, as its energy-efficient fleet offers a competitive advantage over peers with less efficient assets. This opportunity is situated within the Company’s own operations and is expected to unfold in the long-term. The current financial effects include investments in new technologies and energy efficiency measures to enhance marketability of MPCC’s fleet. These investments make the vessels more attractive to charterers, allowing for higher utilization rates even during weak charter markets. MPCC’s low leverage enables it to maintain these strategic investments without overextending its financial position. The Sustainability and Regulatory Affairs and the Technical Department are leading MPCC´s efforts to assess and implement low-carbon and alternative fuel technologies, such as dual-fuel and energy-efficient vessels. It is key to the Company’s long-term strategy and business model through providing the opportunity to embed sustainability as a core operational priority while leveraging low-carbon innovations to secure a competitive advantage. Climate change mitigation – Methanol vessels an advantage in FuelEU maritime regulatory setting The growing focus on emissions reduction in the shipping sector presents MPCC with an opportunity to gain a competitive edge. The FuelEU Maritime initiative aims to drive demand for renewable and low-carbon fuels, incentivizing the adoption of cleaner technologies across the industry. MPCC’s investment in methanol-fueled vessels positions it to capitalize on these developments. As regulations take effect, having low-emissions vessels in its fleet will strengthen MPCC’s market position by ensuring compliance and attracting sustainability-focused clients. This opportunity arises in MPCC’s own operations and is expected to materialize in the short-term. MPCC has already taken proactive steps by investing in dual-fuel methanol vessels as part of its fleet renewal and decarbonization strategy. This is part of its long-term strategy to strengthen its position in sustainability-driven shipping markets. Climate change mitigation – Reduction in GHG emissions through investment in newbuilt vessels Investing in newbuild vessels presents MPCC with an opportunity to achieve regulatory compliance and market differentiation. As environmental regulations become increasingly stringent, eco-friendlier vessels can provide a long-term competitive edge by meeting sustainability requirements. These newbuilds offer operational benefits, including reduced GHG emissions, improved fuel efficiency, and lower maintenance costs. Such investments are expected to strengthen MPCC’s market position by enhancing its reputation as a socially responsible and forward-thinking shipping provider. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 142 142 Sustainability Report | Environmental Information Sustainability Report | Environmental Information This opportunity is located within MPCC’s own operations and is expected to materialize in the medium-term. MPCC is actively assessing newbuilding investments and business models to replicate early successes in environmentally compliant operations with other customers. These steps are designed to maximize financial returns while ensuring long-term adaptability to climate-related and regulatory risks. Climate change mitigation – Increased revenues through maintaining a CII above average MPCC has a material opportunity to enhance its reputation and market position by maintaining a Carbon Intensity Indicator (CII) rating of C or better. While there are no current regulatory penalties for failing to meet the threshold, stakeholders, financiers, and customers pay increasing attention to the carbon intensity of vessels in their operations and portfolios. MPCC is positioned to enhance its access to business opportunities and maintain long-term customer relationships through ensuring a consistent CII rating. This opportunity occurs in the short-term where it primarily affects the Company’s own operations. MPCC is currently taking steps to maintain a favorable CII rating through investing in decarbonization measures and fleet optimization strategies. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 143 143 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Impacts, Risk & Opportunity Management E1-2 Policies related to climate change mitigation and adaptation Environmental Policy The Environmental Policy defines MPCC’s objectives, principles and commitments to protect the environment by minimizing its carbon footprint, managing climate-related risks, and seizing opportunities for sustainable improvements. It drives the management of climate-related IROs by setting out strategic goals and principles that guide MPCC’s environmental management and investments in energy-efficient measures, and fleet renewal activities. The policy addresses these as follows: To address climate change mitigation, the policy outlines the Company’s overall direction to reduce GHG emissions through fleet optimization and emission mitigation strategies. These include a commitment to invest in energy-efficient technologies and adopt measures to reduce fuel consumption and GHG emissions. The policy promotes fleet upgrades and renewals if economically feasible and encourages the development and diffusion of environmentally friendly technologies. In the context of energy efficiency, the Policy sets out the Company’s goals to continuously optimize vessel performance through the implementation of improved SEEMP across all vessels. The policy supports operational efficiency through vessel retrofits, fuel consumption reduction measures, and continuous monitoring of key performance indicators (KPIs) such as Energy Efficiency Operational Indicator (EEOI) and CII. MPCC’s Compliance Officer holds the overall accountability for implementing the Environmental Policy. It applies to all employees, subsidiaries, contractors, and supply chain partners, requiring these stakeholders to be informed of and comply with the outlined environmental responsibilities. The policy also seeks to ensure that stakeholders in the upstream and downstream activities contribute to maintaining its environmental goals and regulatory compliance. Sustainability Policy The Sustainability Policy defines MPCC’s objectives, principles, and commitments to integrate sustainability across its operations and business activities. The policy aims to mitigate negative impacts on the environment, society, and governance, while contributing positively to the Company’s long-term financial resilience and growth. It guides the management of material IROs through strategic goals that address both regulatory compliance and stakeholder expectations. The Sustainability Policy supports sustainable operational practices and investments in new technologies, including the use of methanol-fueled vessels. It emphasizes compliance with decarbonization regulations, such as GHG pricing mechanisms and emission reduction targets. The policy also seeks to enhance MPCC’s competitive advantage by providing lower-emissions services and maintaining an above-average Carbon Intensity Indicator (CII). Related to sustainable business practices, the Policy outlines the Company’s commitment to balance ecological and economic considerations in decision-making processes. This includes managing both the risks and opportunities associated with climate change, regulatory shifts, and technological developments. It promotes supplier and stakeholder partnerships that align with MPCC’s sustainability principles, particularly regarding sustainable sourcing, ship recycling, and emission controls. Sustainability activities are managed and monitored through defined mechanisms. The policy includes commitments to train employees and collaborate with contractors and suppliers to meet sustainability objectives. Active dialogue with stakeholders supports transparency and accountability. The Compliance Officer is responsible for implementing the Sustainability Policy. The policy applies to all employees, subsidiaries, contractors, and supply chain partners. It is reviewed annually to maintain alignment with sustainability objectives and regulatory requirements. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 144 144 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E1-3 Actions related to climate change mitigation and adaptation Most of the Company’s GHG emissions are linked to vessel operations, primarily due to fuel consumption associated with shipping activities. Although a formal action plan has not been adopted, the following steps have been taken to prevent and address MPCCs’ material IROs related to climate change mitigation and energy efficiency. These actions are structured around four key areas: Fleet renewal, the uptake of renewable energy, energy efficiency improvements and collaboration on innovation and technology development. Transition to low-carbon fuels As part of its decarbonization strategy, MPCC is preparing for the integration of renewable fuels. The Company has ordered three dual-fuel methanol vessels, with one delivered in January 2025, the second scheduled for delivery in Q2 2025, and the third in 2026. Additionally, the Company is exploring other renewable fuel and energy alternatives to reduce reliance on conventional fossil fuels. These initiatives could reduce GHG reductions by 40–50% for specific vessels, depending on fuel availability and scalability. While initial steps have been taken, widespread adoption over the next 5–10 years will depend on factors such as technological advancements, fuel market availability, charterers’ willingness to absorb cost premiums, and the development of global renewable fuel production and bunkering infrastructure. Competing demand from other industries may also impact the pace of transition. Energy efficiency improvements In 2023, MPCC assessed its fleet’s overall weighted average CII, achieving an average C rating. This rating was sustained in 2024 through retrofitting and operational efficiency measures, reducing carbon intensity. The CII framework mandates ongoing reductions of 2% every year after –5% until 2025 in operational carbon intensity to maintain or improve a ship’s rating from ‘A’ (major superior) to ‘E’ (inferior). MPCC’s recalculated 2024 rating remains at “C,” reaffirming its commitment to fleet efficiency and industry sustainability objectives. A core element of MPCC’s decarbonization strategy is the implementation of fleet-wide energy efficiency initiatives. In 2024, the Company completed multiple retrofitting projects, including propeller optimization, installation of boss cap fins and pre-swirl devices, and hull modifications to reduce drag and enhance hydrodynamics. Additional energy-saving technologies installed include waste heat recovery systems, CJC filters, pre-heating systems for main and auxiliary engines, variable frequency drives for pumps, LED lighting, upgraded autopilots, and low-friction silicon paints. These measures have directly reduced fuel consumption and emissions. MPCC has strengthened its SEEMP across the fleet to document, monitor, and optimize these improvements. Looking ahead, further fleet-wide retrofitting projects are planned over the next 3–5 years to improve fuel efficiency and emissions performance, ensuring regulatory compliance and supporting long-term decarbonization objectives. As part of its fleet renewal strategy, MPCC sold five vessels in 2024, averaging 17 years in age and 2,300 TEU in size, and acquired seven vessels averaging 10 years and a capacity of 3,400 TEU. The Company also took delivery of two 5,500 TEU eco-design vessels. Innovation and collaboration MPCC is engaged in research and collaboration to address scope 3 emissions and accelerate decarbonization in the shipping sector. Partnering with key stakeholders, including the Maersk McKinney Moller Centre for Zero Carbon Shipping, the Company is aiming to drive innovation in emission reduction technologies. Key research and development activities include the development of eco-ship designs and engine retrofitting for renewable fuel use the development of “Katalyst,” a non-profit ‘book and claim’ registry and the establishment of green shipping corridors. These efforts are expected to contribute to long-term decarbonization, with successful implementation dependent on ongoing technological advancements and external research progress. Financial resources and dependencies MPCC has allocated capital and operating expenditures to support its decarbonization actions and initiatives, as reflected in the financial statements. While internal investment is a key driver, market dynamics—such as fuel availability, regulatory developments, and charterer demand—will play a critical role in shaping the transition. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 145 145 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E1-4 Targets related to climate change mitigation and adaptation In line with its environmental policy and commitment to reducing GHG emissions, MPCC has established a decarbonization pathway that exceeds the ambition of the IMO 2023 GHG Strategy. While not aligned with the Science-Based Targets initiative (SBTi), MPCC’s targets are informed by scientific research and sector-specific emission reduction scenarios. These targets are consistent with the Paris Agreement’s ambition to hold global temperature increase to well below 2°C above pre-industrial levels. Well-to-wake GHG Emission Intensity (AER) based on GleC V.3 2030 target MPCC aims to reduce its Scope 1 and Scope 3 GHG emissions intensity by 45% by 2030, calculated on a well-to-wake basis using a 2008 baseline. Scope 1 emissions include direct emissions from vessel operations and fuel consumption, while Scope 3 emissions relate to upstream and downstream activities within the shipping value chain The target covers CO 2 , CH 4 , and N 2 O reductions and is consistent with MPCC’s GHG inventory boundaries, incorporating both direct and lifecycle emissions. These are gross targets, achieved without dependence on GHG removals, carbon credits, or accounting for avoided emissions. The 45% reduction target for 2030 surpasses the IMO interim reduction milestone of -40% by 2030. With the focus on setting targets for Scope 1 and Scope 3 emissions, MPCC has not established reduction targets for its Scope 2 emissions. 2050 target MPCC has set an ambitious target to achieve net-zero emissions by 2050, in line with the ambition levels established of the IMO 2023 GHG Strategy. The IMO’s pathway targets a 40% reduction in carbon intensity by 2030 and a 20% cut in total GHG emissions from 2008 levels, with net-zero emissions by 2050. MPCC’s approach surpasses these objectives by committing to a higher 2030 reduction threshold. Baseline and measurement approach MPCC’s targets follow a sectoral decarbonization pathway in line with the IMO 2023 GHG Strategy. The 2008 baseline, which serves as the benchmark for emissions reduction targets, was independently calculated, certified, and verified using operational data from 2018 to 2024. The baseline GHG intensity target is 24.3 grams CO 2 e per ton-mile, consistent with industry standards for emissions measurement. The Global Logistics Emissions Council (GLEC) Framework (Version 3) was applied to develop the targets and baseline. The targets are subject to external influences, including technological advancements and market dynamics, both of which will shape the feasibility of further emissions reductions. MPCC has identified key decarbonization levers to achieve its GHG reduction targets. These include: Energy efficiency measures: Retrofitting and operational improvements (e.g., propeller optimization, energy-saving decides, SEEMP improvements) contribute approximately 15–25% of total GHG reduction. Renewable fuel adoption: Depending on the share and blending of renewable fuels (e.g., biofuels, renewable methanol, ammonia), this lever can contribute 20–80% of reductions Fleet modernization: Newbuild orders and eco-friendly vessel acquisitions are expected to achieve an additional 10–15% reduction Renewable energy integration: Adoption of alternative maritime power (AMP) (onshore power supply) is expected to add 5–10% in GHG reduction. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 146 146 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E1-5 Energy Consumption and mix MPCC’s energy consumption derives from fossil forces, primarily crude oil and petroleum products. In 2024, total energy consumption amounted to 5,398,050.93 MWh, representing a 10.98% reduction compared to 2023. A detailed breakdown is disclosed in Table I: Energy Consumption and Mix, while Page 150 outlines the methodologies and key assumptions used to calculate E1-5. MPCC operates in the maritime transport and shipping industry, a high-impact sector classified under the broader "transportation" category. The sector is highly energy-intensive, with consumption typically measured by the energy required per ton-mile of transport work. Table 2 provides the energy intensity associated with the sector. Refer to page 50 in the financial statements for the net revenue figure used in the energy intensity calculation. Table I: Energy consumption and mix Energy Consumption and Mix 2024 2023 2022 1. Fuel consumption from coal and coal products (MWh) - - - 2. Fuel consumption from crude oil and petroleum products (MWh) 5,397,974.42 6,064,065.98 6,579,334.30 3. Fuel consumption from natural gas (MWh) - - - 4. Fuel consumption from other fossil sources (MWh) - - - 5. Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 71.39 55.27 22.46 6. Total fossil energy consumption (MWh) 5,398,045.81 6,064,121.25 6,579,356.86 Share of fossil sources in total energy consumption (%) 100.00 100.00 100.00 7. Consumption from nuclear sources (MWh) 2.93 2.98 0.44 Share of consumption from nuclear sources (%) - - - 8. Fuel consumption from renewable sources (MWh) - - - 9. Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 2.18 1.50 1.76 10. Consumption of self-generated non-fuel renewable energy (MWh) - - - 11. Total renewable energy consumption (MWh) 2.18 1.50 1.76 Share of renewable sources in total energy consumption (%) - - - Total energy consumption (MWh) 5,398,050.93 6,064,125.73 6,579,359.06 Total energy consumption from activities in high climate impact sectors (MWh) 5,398,050.93 6,064,125.73 6,579,359.06 Table II Energy intensity per net revenue 2024 2023 2022 % Change Between 2023/2024 Total energy consumption from activities in high climate impact sectors per net revenue (MWh/monetary unit) 9.98 8.53 10.67 17.06 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 147 147 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E1-6 Gross Scopes 1, 2 and 3 and Total GHG emissions MPCC’s total GHG emissions have decreased since last year, owing to a reduction in fuel consumption, fleet optimization measures, and increased energy efficiency initiatives. The decrease in total GHG emissions amounted to 10.02% compared to 2023, demonstrating MPCC’s ongoing efforts to decarbonize its operations. MPCC’s GHG emissions intensity decreased by 18.33%, reflecting improved energy efficiency measures and lower emissions per unit of output. Details regarding the methodologies, key assumptions, and emissions factors applied in calculating or measuring GHG emissions are outlined in E1 accounting principles. See page 50 in the financial statements for the net revenue figure used for the above calculation. Table III: Gross scopes 1, 2 and 3 and total GHG emissions MPCC’s GHG Emissions Footprint in 2024 2024 2023 2022 % N / N-1 Well-to-Wake GHG emissions intensity 14.60 15.18 17.43 (3.82%) SCOPE 1 GHG EMISSIONS Gross Scope 1 GHG emissions (tCO 2 eq) 1,508,009.7 1,700,026.7 1,845,726.6 (11.29%) % of Scope 1 GHG emissions from regulated emission trading schemes - - - - SCOPE 2 GHG EMISSIONS Gross location-based Scope 2 GHG emissions (tCO 2 eq) 27.3 26.4 5.89 3.41% Gross market-based Scope 2 GHG emissions (tCO 2 eq) 12.3 11.71 4.59 5.04% SIGNIFICANT SCOPE 3 GHG EMISSIONS Scope 3 Cat 1 – Purchased G&S 22,661.5 11,104.5 52,686.4 104.07% Scope 3 Cat 2 – Capital Goods 45,576.3 43,163.3 99,877.8 5.59% Scope 3 Cat 3 – Fuel & Energy 325,612.4 358,609.0 559,197.0 (10.2%) Scope 3 Cat 4 – Upstream trans & dis 498.0 1,591.6 5,231.8 (68.71%) Scope 3 Cat 5 – Waste generated in operations 263.5 296.1 326.4 (11.01%) Scope 3 Cat 6 – Business Travel 763.1 630.4 9,158.0 21.05% Scope 3 Cat 7 – Employee Commuting - - 11.4 N/A Total Gross indirect (scope 3) GHG emissions (tCO 2 eq) 395,374.8 415,395.0 726,488.8 (5.68%) TOTAL GHG EMISSIONS Total GHG emissions (location-based) (tCO 2 eq) 1,903,397.4 2,115,433.4 2,572,222.0 (10.02%) Total GHG emissions (market-based) (tCO 2 eq) 1,903,411.8 2,115,448.1 2,572,221.3 Table IV: GHG intensity based on net revenue GHG intensity per net revenue Comparative (N) % N / N-1 Total GHG emissions per net revenue (tCO 2 eq/USD) Total GHG emissions (location-based) per net revenue (tCO 2 eq/Monetary unit) 3.519232 18.33% 2.974038 Total GHG emissions (market-based) per net revenue (tCO 2 eq/Monetary unit) 3.519232 18.33% 2.974038 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 148 148 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E1 Accounting principles ESRS DR Paragraph(s) Datapoint / metric Accounting principle All All metrics cover the reporting period 1. January 2024–31. December 2024. E1-3 Actions related to climate change mitigation E1-4 AR 25a Targets related to climate change mitigation – Representativeness of baseline value In September 2024, MPCC appointed the American Bureau of Shipping (ABS) to independently calculate and certify the company’s 2008 GHG Emission baseline. The selection of 2008 as the baseline year aligns with the International Maritime Organization's (IMO) revised 2023 GHG Strategy, which uses this year as a reference point for all sectoral climate mitigation targets and efforts. The calculation of the 2008 baseline followed the Global Logistics Emission Council (GLEC) Framework, version 3. ABS used operational data from 2018 to 2024 to extrapolate the fleet’s carbon intensity for 2008. This ensures the baseline accurately reflects MPC Container Ships' historical activities, independently verified and certified by a third-party expert. Both the Company’s 2030 and 2050 emission reduction targets, along with the baseline, are calculated on a well-to-wake basis, reinforcing a comprehensive approach to emissions accountability E1-4 81b Targets related to climate change mitigation – effectiveness of policies and actions MPCC tracks the effectiveness of its policies and actions through a comprehensive monitoring, reporting, and verification (MRV) system. This process complies with regulatory frameworks such as the EU-MRV and IMO DCS while enabling continuous performance tracking to meet the company’s 2030 and 2050 GHG intensity targets. Key indicators, including the Annual Efficiency Ratio (AER) and fuel consumption metrics, are monitored daily to assess fleet-wide GHG intensity. Progress is measured against the baseline fleet average GHG intensity from 2008. This system ensures ongoing evaluation and optimization to support long-term climate objectives. ESRS DR Paragraph(s) Datapoint / metric Accounting principle E1-4 80i Targets related to climate change mitigation – changes in targets MPCC has revised its 2030 GHG intensity target, aiming for a 45% reduction by 2030 from a 2008 baseline and net zero by 2050. This surpasses the IMO's carbon intensity trajectory. The update involves shifting from an industry average to an individual baseline developed with ABS, better reflecting company performance. It also aligns with the Global Logistics Emission Council (GLEC) Framework Version 3 and incorporates new assessments of renewable fuel availability, retrofit potential, and market trends. Key metrics include the Fleet-wide Annual Efficiency Ratio (AER), monitored via a system compliant with EU MRV and IMO DCS standards. Assumptions focus on greater renewable fuel adoption and market support, while external factors like technological advancements and market conditions are acknowledged. Enhanced monitoring ensures precise tracking of energy efficiency and GHG intensity E1-4 AR 26 & 27 Targets related to climate change mitigation – reference to sector-specific pathways MPCC has revised its 2030 GHG intensity target to achieve a 45% reduction from a 2008 baseline, on a well-to-wake basis, exceeding the ambition level of the International Maritime Organization's (IMO) 2023 GHG Strategy. The adjustment aligns with the Paris Agreement’s 1.5°C target, as the IMO’s 2023 GHG Strategy itself is designed to support global temperature goals. The IMO's 2023 GHG Strategy supports net-zero emissions by around 2050, with milestones to reduce carbon intensity by at least 45% by 2030 and total GHG emissions by at least 20% relative to 2008 levels. By 2040, it targets a 70% reduction in total GHG emissions and aspires to reach 80%. These efforts focus on transitioning to low- and zero-carbon fuels, enhancing energy efficiency, and fostering technological innovation to ensure international shipping contributes to global climate objectives equitably. MPCC’s update involves using an individual baseline developed and verified by ABS, improving accuracy in tracking progress. It aligns with the Global Logistics Emission Council (GLEC) Framework Version 3 and considers renewable fuel availability, retrofit potential, and industry trends. The Company’s Annual Efficiency Ratio (AER) metric is monitored under a system compliant with EU MRV and IMO DCS standards, supported by assumptions on the growing adoption of renewable fuels Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 149 149 Sustainability Report | Environmental Information Sustainability Report | Environmental Information ESRS DR Paragraph(s) Datapoint / metric Accounting principle E1-5 37-43 Total energy consumption in own operations Data regarding energy consumption is generated from the Blue Tracker reporting software. Data is registered daily in the system and transferred and processed within the system, for calculation and verification. MPCC calculates its total energy consumption by aggregating data from two primary sources: offshore energy consumption from vessel operations and onshore energy consumption from office activities. The sum of these two sources provides total energy consumption for the Company. MPCC’s Scope 3 emissions include indirect emissions from the supply chain and other business activities, specifically: Fuel- and energy-related activities (extraction, refining, and transport of fuels used in vessel operations). Business travel and employee commuting, though minimal compared to operational emission MPCC’s fuel consumption data primarily relates to fossil energy sources, with crude oil and petroleum products forming the dominant share of its energy mix. Conversion Methodology: To ensure consistency and comparability across reporting periods, MPCC converts energy consumption data from gigajoules (GJ) to megawatt-hours (MWh) using the standard conversion factor: 1 GJ = 0.277778 MWh. Energy consumption data for 2023 and 2022 were originally recorded in GJ and converted to MWh using this factor to align with the reporting format adopted for 2024. This conversion ensures that all reporting years are presented in the same unit of measure. MPCC calculates energy intensity per net revenue in accordance with ESRS E1-5 AR36, which requires the ratio to be determined by dividing total energy consumption (in MWh) by net revenue (in USD). Total Energy Consumption is measured in megawatt- hours (MWh) and derived from MPCC’s vessel operations and office activities. The purchased electricity, heat, steam and cooling energy has been split into multiple energy sources (Renewable, fossil-fuel and nuclear) depending on the country grid where MPCC operates offices (Germany, Norway and Netherlands) using AIB residual mixes % split. The energy consumption and mix data is not validated by an external body other than the assurance provider. The methodology used for data conversion follows widely recognized energy measurement standards. ESRS DR Paragraph(s) Datapoint / metric Accounting principle E1-6 Gross scopes 1, 2, 3 and total GJG emissions MPCC reports gross scope 1, scope 2 and scope 3 GHG emissions to assess its carbon footprint from direct and indirect sources. Scope 1 emissions are calculated based on fuel consumption data from vessel operations, applying emission factors in accordance with IMO and EU ETS guidelines. Scope 2 emissions are derived from electricity and heating consumption in MPCC’s onshore operations, using location-based emission factors. Scope 3 emissions cover indirect emissions from upstream and downstream activities, including purchased goods and services, capital goods, and fuel and energy-related activities. For the years reported in the table, Scope 3 emissions were calculated using a spend-based approach, utilizing supplier-specific data and recognized industry benchmarks. MPCC does not report emissions from employee commuting (Scope 3, Category 7) as an assessment in 2022 determined they were negligible. This approach is in accordance with the GHG protocol, and the category is excluded from MPCC's emissions inventory. MPCC calculates GHG intensity per net revenue in line with ESRS E1-5 AR36, dividing total GHG emissions (tCO 2 eq) by net revenue (USD) to assess emissions efficiency relative to financial performance. There were no changes in the calculation methodology during the reporting year. This metric is not validated by an external body, but the methodology aligns with recognized emissions reporting frameworks Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 150 150 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E2 Pollution MPCC is committed to managing pollution responsibly and aligning its operations with internationally recognized environmental standards. The Company’s approach prioritizes compliance with frameworks such as MARPOL Annex VI and the IMO Ballast Water Management Guideline, supported by ISO-certified environmental management practices. Targeted measures are implemented to mitigate risks connected to air and water pollution, including emission control systems, hazardous material inventories, and ongoing performance monitoring. These efforts reflect broader commitments to sustainable shipping practices while maintaining compliance with evolving regulatory requirements. KPIs Establish Baseline and Action Plan for Pollution Mitigation Relevant Policies Sustainability policy Environmental policy Reporting Standards Used ESRS E2 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 151 151 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Material Impacts, Risks and Opportunities See ESRS 2, page 137 , for a description of the resilience assessment of MPCC’s strategy and business model in relation to pollution. Impact IRO Type Location in Value Chain Time Horizon Air pollutants from own operations Actual negative impact Own operations Short-term Pollution from antifouling measures Actual negative impact Own operations Short-term Improperly managed hazardous waste from ship recycling Actual negative impact Downstream Medium-term Increasing regulatory pressure to reduce air pollutant emissions Risk Own operations Medium-term Whistleblower case for deliberate pollution of water in US territory Risk Own operations Medium-term Non-compliance with EU ship recycling rules on inventories of hazardous substances Risk Downstream Medium-term The double materiality assessment identified the following material impacts and risks related to pollution. No material opportunities were identified in the assessment. Material impacts Air pollutants from own operations MPCC has identified an actual negative impact on the environment stemming from various air pollutants emitted during its operations. These pollutants include nitrogen oxides (NO x ), sulfur oxides (SO x ), particulate matter (PM), and volatile organic compounds (VOCs). Emissions of these substances contribute to air pollution, smog formation, and acid rain, which could damage ecosystems, reduce air quality, and pose health risks to crew members and nearby communities. Particulate matter can contaminate marine ecosystems through deposition and causing bioaccumulation of toxins. Collectively, these pollutants affect ecosystem balance, aquatic life, vegetation, and human health. As part of its efforts to mitigate the impact, MPCC monitors NO x and SO x emissions in compliance with MARPOL Annex VI. Key mitigation measures include the use of exhaust gas cleaning systems (EGCS) on vessels to reduce SO x emissions. MPCC complies with Emission Control Area (ECA) regulations by using low-sulphur marine diesel oil. Pollution from antifouling MPCC uses antifouling in its operations to deter the growth of marine organisms on the hull of the vessels. The antifouling paint currently in use contains substances that can leach into the marine environment over time, potentially contaminating sediments and aquatic life. This could impact the health of marine organisms and the local water quality. To mitigate this impact, MPCC adheres to the IMO Antifouling Systems (AFS) Convention, which prohibits harmful substances like tribyltin (TBT). The Company takes part in industry initiatives like Eyesea, which focuses on pollution tracking and reduction, to have a positive impact on the environment and manage related risks. The vessels utilize low-friction silicon-based coatings to reduce fuel consumption, enhancing overall efficiency while lowering emissions but especially to minimize the impact of the coating on the marine environment. These efforts are reflected in MPCC’s long-term strategy focused on pollution control, as described in E2-2 below. Improperly managed hazardous waste from ship recycling Improperly managed hazardous waste from ship recycling, including materials like asbestos, heavy metals, and toxic chemicals, poses risks to both the environment and public health. If not properly handled, these hazardous substances can contaminate soil, water, and air. Furthermore, when materials containing toxins, such as lead and mercury are sold for reuse or upcycling without adequate safeguards, they can cause long-term harm to ecosystems and human well-being. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 152 152 Sustainability Report | Environmental Information Sustainability Report | Environmental Information While MPCC has not yet recycled a vessel, this impact is concentrated in its downstream value chain, during the end-of-life phase of vessels when they are dismantled. The risk is expected to materialize in the medium term if not managed effectively. MPCC addresses these risks through the implementation of policies and the maintenance of detailed inventories of hazardous materials for every vessel. This approach ensures greater control over the handling, disposal, and potential recycling of hazardous substances. These measures form a core part of MPCC’s strategic approach to control and reduce its pollution-related impacts. Material risks Increasing regulatory pressure to reduce air pollutant emissions MPCC faces a material risk associated with increasingly stringent regulations targeting air pollutants, particularly NO x and SO x emissions. Compliance requirements for SO x include the installation of exhaust gas cleaning systems (EGCS) or the use of low-sulfur marine diesel oil. NO x regulations primarily affect newbuilds by mandating advanced engine technologies. These regulations, driving higher operating costs across the shipping industry, pose a direct risk to MPCC’s own operations, with potential costs related to fleet retrofitting, compliance monitoring and operational adjustments in the medium term. Stringent regulations could have substantial effects on the Company’s business model by driving investments in fleet retrofitting, fuel transitions and advanced compliance measures. MPCC actively monitors regulatory developments and leverages its sustainability and regulatory affairs functions. To date, MPCC has not experienced financial effects from this risk. Case of a whistleblower showing deliberate pollution of water in U.S. territory MPCC faces a material risk associated with deliberate water pollution occurring on one of its vessels in U.S. territory, particularly if reported through a whistleblower. In such a case, the Company would be subject to financial penalties, including fines related to the whistleblower incident and potential probation in U.S. waters. This poses a direct threat to MPCC’s own operations and could result in operational disruptions and reputational damage in the medium- term. Currently, no specific mitigating actions or strategies have been put in place to address the risk. Pollution of water is managed through compliance with and implementation of MARPOL, and its associated international rules and regulations as a key component of the Company’s sustainability strategy. To date, MPCC’s financial metrics remain unaffected by this risk. Non-compliance with EU Ship recycling rules on inventories of hazardous substances Non-compliance with the EU Ship Recycling Regulation regarding inventories of hazardous substances could pose a financial risk for MPCC in the medium term. These repercussions may include fines, penalties, costs associated with corrective actions, potential legal fees, and damage to the Company's reputation. In addition, failure to comply could lead to the inability to operate within EU waters, affecting both business opportunities and revenue streams. The risk is concentrated in MPCC's downstream value chain, particularly during the end-of-life phase. MPCC mitigates risks related to ship dismantling and hazardous waste through compliance with international regulatory frameworks such as the Hong Kong Convention, as well as maintaining inventories of hazardous materials (IHM) in line with EU Ship Recycling Regulations. Non-compliance with EU Ship Recycling Regulation could have substantial effects on MPCC’s business model by causing operational restrictions within the EU. There has been no material financial impact on MPCC from this risk to this date. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 153 153 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Impacts, Risk & Opportunity Management E2-1 Policies related to pollution MPCC’s Environmental Policy The Environmental Policy sets out MPCC’s commitment to prevent and control pollution, driving its approach to manage impacts and risks associated with air and water pollution. The policy emphasizes the optimization of vessel energy efficiency performance, to reduce GHG emissions as well as NO x and SO x emissions, alongside the continuous exploration of viable technologies to minimize air pollution. Additionally, the policy involves key initiatives to promote the use of environmentally friendly technologies aimed at mitigating marine pollution, such as advanced antifouling measures and the proper handling of harmful discharges such as ballast water. The policy enforces a zero-discharge objective to prevent water contamination and requires strict management of hazardous materials, including those generated during ship recycling, Compliance with international environmental standards is a core principle, mandating that technical managers operate under ISO 14001-certified environmental management systems. Furthermore, MPCC adopts a proactive stance towards incident prevention and risk mitigation by identifying, minimizing, and monitoring environmental risks to limit potential adverse impacts on people and ecosystems in the event of incidents. Currently, the policy does not include provisions for the substitution or minimization of substances of concern, nor the phasing out of substances classified as very high concern. Despite this, MPCC maintains compliance with international frameworks such as the IMO’s MARPOL Convention, which regulates key pollutants including sulfur, nitrogen oxides, and oil discharges. Through its technical managers, the Company ensures full adherence to these requirements, supporting its ongoing commitment to pollution prevention and the responsible management of hazardous substances throughout its operations. See E1-2 for more information on the Environmental Policy. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 154 154 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Metrics and Targets E2-2 Actions and resources related to pollution MPCC has not yet formalized an action plan relating to pollution, as foundational assessments are still underway. Establishing an action plan requires a comprehensive baseline analysis of pollution sources, emissions, and associated risks. As regulatory expectations become clearer and a unified methodology for data collection advances, MPCC will be better positioned to develop a robust baseline and implement targeted measures to address its pollution impact. Please refer to IRO-1 above for disclosure of the Company’s actions to prevent and mitigate its pollution-related material impacts and risks. E2-3 Targets related to pollution MPCC has not set targets for pollution. This is due to constraints in a unified methodology for data collection and availability as well as standardized monitoring protocols, which have hindered the development of reliable and measurable targets. In 2024, MPCC has focused its efforts on pollutants subject to established regulatory frameworks, including NO x , and SO x . Research on other air pollutants remains underdeveloped at this point, with thresholds for many substances yet to be defined under regulatory frameworks such as the EU’s REACH and IMO conventions. As monitoring capabilities and regulatory standards evolve, MPCC intends to set data-driven, quantitative targets for a broader range of air pollutants. To facilitate future target development, MPCC intends to establish a workgroup over the next year to collaborate with industry peers and technical managers. This initiative will prioritize the identification of relevant pollutants, compilation of scientific research, and evaluation of monitoring systems to enhance data collection and compliance capabilities. E2-4 Pollution of air, water and soil Table I records relevant pollutants disaggregated by pollution to air, water and soil. The pollutants reported are those that meet or exceed the threshold values outlined in Annex II of Regulation (EC) No 166/2006. Table I: Pollution to air, water, and soil Releases to Air Pollutant 2024 2023 2022 % Change (2024 vs. 2023) Sulfur oxides (SO x ) 3,997.50 4,586.37 4,837.24 (-12.84%) Nitrogen oxides (NO x ) 38,002.26 44,799.83 47,924.00 (-15.17%) Particulate matter (PM) 1,716.00 1,971.07 2,115.55 (-12.94%) For disclosure on the methodologies and key assumptions related to E2 metrics, see page 157 in the E2 accounting policies. Emissions of SO x and PM have been reported since 2022, while NO x reporting commenced in 2021. From 2023 to 2024, SO x emissions decreased by approximately 13%, NO x emissions declined by 15.17%, and PM emissions were reduced by 12.94%. period. MPCC refrains from using microplastics in its operations and does not generate them. Any incidental presence is considered negligible and not currently measurable. Pollution of water MPCC does not currently measure or track pollutants emitted to water. However, emissions from scrubber EGCS wash water and ballast water are regulated under MARPOL and the IMO Ballast Water Management Convention. EGCS discharges comply with IMO Resolution MEPC.259(68), which sets limits for pH, PAHs, nitrates, and turbidity. While compliance is ensured through onboard systems, data accessibility for reporting remains limited. MPCC monitors its pollution-related policies through established compliance processes, including MARPOL Annex VI, the EU Ship Recycling Regulation, and fuel consumption monitoring under IMO DCS and EU MRV. SO x and NO x emissions are estimated based on fuel and energy consumption data, while NO x levels are also verified through machinery certificates. Compliance is validated through audits, and pollution incidents are recorded and analyzed for continuous improvement. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 155 155 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E2-5 Substances of concern and substances of very high concern MPCC does not currently possess data related to the production, use, distribution, or emissions of substances of concern or substances of very high concern. E2-6 Anticipated financial effects from pollution-related IROs MPCC has chosen to apply the phase-in option to omit the financial effects of material pollution-related risks and opportunities. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 156 156 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E2 Accounting principles ESRS DR Paragraph(s) Datapoint / metric Accounting principle All All metrics cover the reporting period 1. January 2024–31. December 2024. E2-4 30b Pollution to air, water and soil – measurement methodology Under the EU MRV and IMO DCS frameworks, emissions of sulfur oxides (SO x ) and nitrogen oxides (NO x ) are not directly measured but are calculated based on fuel consumption. The calculations use sulfur and nitrogen oxide factors, which are derived from the type and quantity of fuel consumed. The engine's design characteristics play a critical role in determining NO x emissions, with operational changes having limited impact on the final NO x output. MPCC ensures compliance by maintaining accurate fuel records, engine certifications, and operational logs, which collectively demonstrate adherence to SO x and NO x emissions regulations. The pollution-related data is not validated by an external body. E2-4 30c Pollution to air, water and soil – data collection for pollution- related reporting The collection of data for pollution-related accounting and reporting, particularly for SO x , NO x , and particulate matter (PM), involves several key sources and processes. Data is gathered from onboard monitoring systems, engine manufacturers, and fuel records, such as bunker delivery notes (BDNs), which provide details on fuel type, quantity, and sulfur content. Operational parameters, including distance travelled, engine load, and speed, are logged alongside engine-specific emission factors for each pollutant. Fuel consumption is reported daily and aggregated annually. This data undergoes verification by Recognized Organizations before being submitted to the relevant flag state. SO x emissions are calculated using fuel sulfur content and consumption data, while NO x is determined through engine-specific technical information. 2023 and 2024 SO x , NO x and PM emissions generated by LFO have been estimated based on the HFO and MDO fuel consumption. 2023 values have been amended to reflect this methodological change. PM emissions are estimated using emission factors related to both fuel type and engine characteristics. Compliance is monitored using IMO DCS-compliant software. Additionally, vessels submit regular reports on voyage details (arrival, departure, and noon reports), as well as the mass and specification of fuels bunkered and consumed, via ship- to-shore reporting systems. Data is reviewed by the technical managers’ performance departments and classification societies to ensure accuracy and regulatory compliance. ESRS DR Paragraph(s) Datapoint / metric Accounting principle E2-4 31 Pollution to air, water and soil – use of estimated emissions methodology MPCC measures its reported emissions using estimates based on emission factors rather than direct measurement technologies. The approach is driven by several key considerations. First, emission factors are a more cost-effective solution compared to the installation and maintenance of Continuous Emission Monitoring Systems (CEMS) or other direct measurement methods. This allows the Company to meet regulatory requirements without incurring significant financial burdens. Second, emission factors are straightforward to apply, enabling shipowners to calculate emissions using well-established formulas that correlate fuel consumption with engine characteristics. Regulatory bodies, such as the IMO and EU, have standardized these emission factors, promoting consistency in emissions reporting across the shipping industry. Lastly, the methodology aligns with international and regional regulatory frameworks, including MARPOL Annex VI, IMO DCS and EU MRV, which recognize and accept emission factor-based calculations for compliance purposes. This alignment makes the use of estimates a practical and compliant option for MPCC. The pollution-related data is currently validated internally without additional verification from an external body beyond the assurance provider. E1-4 AR 26 & 27 Targets related to climate change mitigation – reference to sector-specific pathways MPCC has revised its 2030 GHG intensity target to achieve a 45% reduction from a 2008 baseline, on a well-to-wake basis, exceeding the ambition level of the International Maritime Organization's (IMO) 2023 GHG Strategy. The adjustment aligns with the Paris Agreement’s 1.5°C target, as the IMO’s 2023 GHG Strategy itself is designed to support global temperature goals. The IMO's 2023 GHG Strategy supports net-zero emissions by around 2050, with milestones to reduce carbon intensity by at least 45% by 2030 and total GHG emissions by at least 20% relative to 2008 levels. By 2040, it targets a 70% reduction in total GHG emissions and aspires to reach 80%. These efforts focus on transitioning to low- and zero-carbon fuels, enhancing energy efficiency, and fostering technological innovation to ensure international shipping contributes to global climate objectives equitably. MPCC’s update involves using an individual baseline developed and verified by ABS, improving accuracy in tracking progress. It aligns with the Global Logistics Emission Council (GLEC) Framework Version 3 and considers renewable fuel availability, retrofit potential, and industry trends. The Company’s Annual Efficiency Ratio (AER) metric is monitored under a system compliant with EU MRV and IMO DCS standards, supported by assumptions on the growing adoption of renewable fuels Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 157 157 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E4 Biodiversity and ecosystems The shipping industry has a broad ecological footprint and involves multiple interactions and impacts on marine biodiversity. As part of the green transition, MPCC strive to achieve a balance between climate action and nature conservation, both of which are fundamental to a sustainable future. As a container shipping company managing a substantial portfolio of physical assets and relying on the marine environment for transportation, MPCC recognizes its responsibility to mitigate its ecological impact. The marine ecosystem is highly sensitive, and preserving its delicate balance is a key priority for us. To achieve this, MPCC has implemented robust policies across all operations and the value chain to address material biodiversity impacts. The sustainability policy emphasizes the importance of integrating long-term ecological considerations into business decisions, ensuring that its activities align with environmental stewardship. Additionally, the environmental policy commits us to identifying, avoiding, minimizing, managing, and monitoring environmental impacts. Through these measures, the Company strives to reduce its footprint and contribute to the protection of marine biodiversity. KPIs Formulate target for MPCC connected to biodiversity impact. Relevant Policies Sustainability policy Environmental policy Reporting Standards Used ESRS E4 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 158 158 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Material Impacts, Risks and Opportunities See ESRS 2, page 137 , for a description of the resilience assessment of MPCC’s strategy and business model in relation to pollution. Impact IRO Type Location in Value Chain Time Horizon Biofouling on the hull of vessel Actual negative impact Own operations Short-term GHG emissions driving biodiversity loss Actual negative impact Own operations Long-term The DMA identified the following climate-related impacts related to biodiversity and ecosystems: Direct impact drivers of biodiversity loss – Biofouling on the side of the vessel Biofouling can introduce invasive species into new ecosystems, potentially disrupting biodiversity. Non-native species transported in this manner can outcompete native species, destabilize local ecosystems, and cause long-term damage to marine biodiversity. Tied to the Company’s own operations, the impact presents a risk in both the short and mid-term, with regulatory scrutiny expected to intensify over time. MPCC mitigates this risk through strategic responses embedded in its business model. Key measures include: Use of antifouling technologies: Application of silicon-based or other protective coatings to vessel hulls to prevent organism accumulation. Regular hull maintenance: Ensuring vessel surfaces are cleaned and maintained to optimize performance and prevent biofouling. GHG emissions driving biodiversity loss MPCC’s operations, including fuel consumption across its fleet, contribute to GHG emissions, which are a major driver of climate change. This, in turn, leads to biodiversity loss by altering climate patterns, increasing extreme weather events, and disrupting ecosystems. The impact manifests through habitat destruction, decreased food availability, and heightened stress on species, ultimately threatening the survival of many forms of biodiversity. This actual impact is closely tied to MPCC’s business model due to the energy-intensive nature of container shipping. It is considered both a mid-term and long-term risk, especially as international environmental standards and GHG pricing mechanisms become stricter. MPCC addresses this challenge through the following strategies: Fleet energy efficiency upgrades: Implementing Energy Saving Technology (EST) and reviewing SEEMP to continually monitor and optimize vessel performance. Adoption of alternative fuels: Investing in dual-fuel vessels capable of operating on low-carbon fuels such as green methanol, which aligns with upcoming regulations like the FuelEU Maritime Directive. Decarbonization strategy: Reducing overall emissions through continuous technological improvements, contributing to MPCC’s efforts to maintain compliance and enhance sustainability credentials. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 159 159 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Impacts, Risk & Opportunity Management E4-2 Policies related to biodiversity and ecosystems Biodiversity and ecosystem considerations are integrated into MPCC’s Environmental Policy and Sustainability Policy. The Environmental Policy outlines MPCC’s approach to biofouling management, including the use of anti-fouling coatings and regular hull cleaning to reduce biofouling and limit the spread of invasive species. Pollution control measures align with MARPOL requirements to minimize waterborne contaminants. The Sustainability Policy embeds ecosystem protection into decision-making, promoting vessel efficiency improvements and compliance with environmental regulations. Metrics and Targets E4-3 Actions and resources related to biodiversity and ecosystems MPCC has implemented several actions to mitigate biodiversity risks related to biofouling. Biofouling management includes the application of anti-fouling coatings and regular hull cleanings to prevent the accumulation of marine organisms on vessel hulls, thereby reducing the unintentional transfer of invasive species. Additionally, MPCC's energy efficiency initiatives, as outlined in E1-2, contribute to lowering GHG emissions and reducing underwater radiated noise, aligning with IMO guidelines aimed at minimizing disturbances to marine life. These measures are embedded into broader operational practices, with dedicated resources allocated to anti-fouling maintenance and ballast water treatment system (BWTS) implementation. E4-4 Targets and E4-5 Impact metrics related to biodiversity and ecosystems MPCC has not yet established formal, science-based targets or metrics for biodiversity and ecosystems, due to the lack of standardized benchmarks and methodologies for monitoring, reporting, and verification (MRV). However, biodiversity protection is embedded in its broader environmental commitments: MPCC’s GHG emissions intensity target indirectly supports biodiversity by mitigating climate-related habitat degradation. MARPOL-compliant waste management practices, including strict controls on garbage and sewage discharge, contribute to pollution reduction in marine ecosystems Biofouling management measures help prevent the unintentional transport of invasive species across regions. MPCC continues to enhance its internal monitoring and reporting practices to better assess biodiversity impacts and comply with regulatory expectations. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 160 160 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E5 Resource use and circular economy MPCC is dedicated to optimizing resource utilization to minimize environmental impact and promote circular economy principles throughout its operations. The Company depends on essential resources such as marine fuel oil, steel, and protective coatings to maintain and operate its fleet. To ensure continuous improvements in resource efficiency and responsible management, MPCC has implemented targeted policies and strategies aimed at enhancing fuel efficiency, extending the lifespan of critical materials, and minimizing waste. KPIs Track and optimize fuel consumption through IMO DCS and EU-MRV Relevant Policies Sustainability policy Environmental policy Reporting Standards Used ESRS E5 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 161 161 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Material Impacts, Risks and Opportunities See ESRS 2, page 137 , for a description of the resilience assessment of MPCC’s strategy and business model in relation to climate change. Impact IRO Type Location in Value Chain Time Horizon Resource inflows – high intensity resource consumption Actual negative impact Upstream Short-term Resource inflows – paints used for hull Actual negative impact Own operations Medium-term The DMA identified two impacts connected to its resource use and circular economy. No material risks and opportunities were identified through the assessment. Resource inflows – High-intensity resource consumption MPCC relies heavily on fossil fuels and steel to sustain its operations. Fossil fuels are critical for vessel propulsion, while steel is essential for the construction, maintenance, and retrofitting of ships. These impacts originate primarily in the raw material extraction and production stages of the upstream supply chain and causing negative environmental impacts. Fossil fuel extraction and consumption deplete non-renewable sources and contribute to GHG emissions. Steel production is energy and water-intensive, generating air and water pollution through mining and processing activities. These impacts are closely tied to MPCC’s business model and long-term operational needs. Fossil fuels will remain necessary for vessel operations in the foreseeable future due to the lack of viable large-scale availability of renewable fuels. Similarly, steel demand will persist as it is fundamental to maintaining fleet performance and safety. MPCC integrates efficiency measures to optimize fuel use and maintain vessels effectively. Responsible sourcing principles are embedded in the Business Partner Guidelines, while sourcing decisions are largely managed by its charterers and technical managers. Resource inflows – Paints used for hull MPCC relies on protective hull coatings to prevent corrosion and maintain the long-term usability of its vessels. Without these coatings, ships would rapidly deteriorate due to constant exposure to harsh marine conditions, making the application of paints essential for maintaining operational efficiency. This impact is concentrated within MPCC’s own operations and is directly tied to vessel maintenance activities. The use of paints has potential negative impacts on the environment, particularly through water pollution caused by chemical substances in the paint. These impacts arise from the potential leaching of harmful materials into the marine environment if not carefully managed. Although MPCC is unable to eliminate the use of paints due to operational needs, the Company seeks to reduce the impact by partnering with key suppliers which developed and offer environmentally preferable paints. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 162 162 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Impact, Risk and Opportunity Management E5-1 Policies related to resource use and circular economy The following policies outline the Company’s approach to managing resource use and circular economy. Together, the policies lay the foundation for circular economy practices by focusing on resource optimization, waste reduction, and supplier engagement to foster sustainability throughout MPCC’s maritime operations. The Compliance Officer holds the highest responsibility for overseeing and ensuring the implementation of these policies. Sustainability Policy The Sustainability Policy addresses resource use and circular economy by embedding principles aimed at minimizing resource consumption and promoting sustainable practices across MPCC’s operations and value chain. The Sustainability Policy, fully outlined in E1-2, includes commitments to balance economic and ecological factors in decision-making and promote responsible sourcing. These measures are particularly relevant for mitigating the high-intensity consumption of raw materials such as steel and fossil fuels, which drive both resource depletion and pollution. The Environmental Policy The Environmental Policy outlines measures to mitigate resource- intensive practices by setting clear objectives for environmental performance. This includes technological upgrades, energy efficiency measures, and the enhancement of Ship Energy Efficiency Management Plans. Through these measures, the policy relates to the impact of high fossil fuel use by improving fuel efficiency and reducing emissions and operational pollutants. Regarding circular economy, the policy encourages the adoption and diffusion of environmentally friendly technologies, which is essential for minimizing waste and pollution related to steel and hull paints. The Business Partner Guideline The guideline defines clear expectations for suppliers and business partners to adopt environmentally friendly practices, including pollution control and the management of hazardous substances. Partners are required to comply with relevant environmental and safety laws and take measures to minimize pollution risks. In relation to paints used for hull protection, the guideline mandates that partners manage hazardous and dangerous substances responsibly and implement measures to minimize and prevent pollution risk. The Business Partner Guideline applies to all business partners within MPCC's operations, including suppliers, contractors, and other stakeholders engaged in any business dealings with the company. It covers activities across both upstream and downstream aspects of the value chain. The Sustainable Procurement Policy The policy reflects the Company’s commitment to collaborating with suppliers that adopt sustainable practices, prioritizing those utilizing recycled materials to reduce the Company’s dependence on virgin resources. By doing so, the policy addresses the impact of high- intensity raw material consumption within the supply chain. The policy governs all procurement activities across MPCC and its subsidiaries, encompassing employees, suppliers, and other stakeholders involved in the procurement of goods and services. Compliance is enforced through adherence to the Business Partner Guidelines, which outline corrective measures for non-compliance, including the potential termination of contracts for serious breaches. The Ship Recycling Policy The Ship Recycling Policy mandates full compliance with international conventions, including the Hong Kong Convention and the EU Ship Recycling Regulation for environmentally sound vessel dismantling. Through responsible recycling practices that promote the recovery and reuse of materials like steel, the policy addresses the impact of high-intensity raw material consumption by decreasing reliance on virgin resources and thereby lowering the burden of resource extraction. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 163 163 Sustainability Report | Environmental Information Sustainability Report | Environmental Information The policy applies to all MPCC employees, subsidiaries, contractors, temporary personnel, and ship managers engaged in recycling activities. Compliance is upheld through buyer and third-party commitments. E5-2 Actions related to resource use and circular economy MPCC has not adopted a formal action plan specifically addressing resource use and circular economy. However, the management of its resource use – including fuel, steel, spare parts, paints and coatings – is embedded into MPCC’s broader sustainability framework, guided by the policies described above. Several actions have been implemented to strengthen the management of resource inflows. These include retrofitting vessels to improve resource efficiency, promoting responsible sourcing practices through the Business Partner Guideline, and encouraging suppliers to adopt environmentally friendly practices. Waste management forms an integral part of MPCC’s resource efficiency approach. Waste disposal and recycling processes are governed by the MARPOL convention, with strict record-keeping in the Garbage Record Book. Monitoring these waste streams provides insights into consumption patterns and opportunities to minimize excess material use. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 164 164 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Metrics and Targets E5-3 Targets related to resource use and circular economy In addition to adherence to the above policies, MPCC has not established a formal target connected to resource use and circular economy. However, commitments to sustainable resource management, circularity and waste generation are integrated into the Company’s broader sustainability framework. As part of its forward-looking strategy, MPCC aims to define formal targets under its transition plan to address all areas of material importance. MPCC is actively working to better understand and quantify the material impacts of resource inflows and waste generation. As data collection and impact assessments improve, MPCC will move towards setting formalized targets related to resource efficiency, sustainable procurement, and waste reduction. MPCC tracks the effectiveness of its policies and actions via monitoring practices. Through adherence to the EU Monitoring, Reporting and Verification (EU-MRV) and IMO Data Collection System (DCS) framework, MPCC maintains precise oversight of fuel and energy consumption across its fleet. Waste management is handled through mandatory record-keeping in the garbage record book, as required by the MARPOL convention. E5-4 Resource inflows MPCC’s material inflows include marine fuel oil, steel, and protective coatings that are essential to its fleet. Marine fuel oil, including low-sulfur variants, is the primary energy source required for propulsion and operational efficiency. Freshwater is used onboard for domestic purposes, either sourced from shore or produced through desalination. Chemicals, such as lubricants and cleaning agents, support maintenance activities and operational processes. Additionally, steel remains a vital resource for the construction, repair, and retrofitting of vessels. Based on data collected through the IMO Data Collection System (DCS), the total mass of fuel oil consumption for 2024 accounted for 456,157.08 tons. This includes various fuel types such as High Sulphur Heavy Fuel Oil, Low Sulphur Heavy Fuel Oil, Marine Diesel Oil (MDO) / Marine Gas Oil (MGO), and Ultra Low Sulphur Fuel Oil. These fuels are entirely derived from non-biological sources. No biological materials or secondary materials, including reused, recycled, or intermediary components, are present in the Company’s fuel inflows. Table I provides a breakdown of fuel oil categories and their respective weights: Fuel Type Mass (tons) Material Type High Sulphur Heavy Fuel Oil 96,570.38 Technical (non-biological) Low Sulphur Heavy Fuel Oil 276,228.52 Technical (non-biological) Marine Diesel Oil / Marine Gas Oil (MDO/MGO) 37,892.28 Technical (non-biological) Ultra Low Sulphur Fuel Oil 45,465.89 Technical (non-biological) Total 456,157.08 Technical (non-biological) See the E5 accounting principles for a description of the methodologies and key assumptions used to calculate the E1-5 disclosure. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 165 165 Sustainability Report | Environmental Information Sustainability Report | Environmental Information E5 Accounting principles ESRS DR Paragraph(s) Datapoint / metric Accounting principle All All metrics cover the reporting period 1. January 2024–31. December 2024. E5-4 32 Resource inflows – measurement methodology and assumptions Fuel consumption is measured according to international regulations under the IMO Data Collection System (DCS). Data is collected from onboard fuel monitoring systems, such as flow meters on fuel lines, or through manual or automated tank soundings and verified bunker delivery notes (BDNs). Consumption is recorded for each voyage, including navigation, port stays, and cargo operations. Different fuel types—Very Low Sulphur Fuel Oil (VLSFO), Marine Gas Oil (MGO), and Ultra Low Sulphur Fuel Oil (ULSFO)—are tracked separately. Annual fuel reports are compiled and independently verified by accredited organizations before submission to the IMO through the vessel's flag state. The key assumptions include the use of consistent calorific values and the assumption that minor deviations in measurement devices (e.g., flow meters and tank soundings) remain within acceptable tolerances. These verified data points provide a reliable basis for reporting fuel inflows. The data on resource inflows is validated by an external body. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 166 166 Sustainability Report | Environmental Information Sustainability Report | Environmental Information Social Information S1 Own workforce 168 S1 Accounting principles 173 S2 Workers in the value chain 174 S2 Accounting principles 183 Entity Specific — Search And Rescue 184 Annual and Sustainability Report 2024 167 Sustainability Report | Social Information S1 Own workforce MPCC recognizes its workforce's well-being, retention, and engagement as essential to maintaining efficient and sustainable operations. The Company has identified two material impacts, and one risk related to high stress levels, long working hours and employee retention within its own workforce. Addressing these challenges is a priority to ensure workforce resilience and long-term sustainability. Through its Human Capital, Health & Safety, and Human Rights Policies, MPCC fosters a supportive work environment, promotes fair working conditions, and upholds high safety standards. The Company implements regular employee feedback surveys, engagement initiatives, flexible working arrangements, and professional development opportunities to mitigate workforce-related risks and enhance job satisfaction. These commitments reflect MPCC’s broader social sustainability objectives, ensuring its employees have a safe, secure and inclusive. KPIs Maintain an annual onshore employee retention rate above 90%. We achieved 89.4% Relevant Policies Human Rights Policy Human Capital Policy Health and Safety Policy Sustainability Policy Reporting Standards Used ESRS 2, ESRS S1 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 168 168 Sustainability Report | Social Information Sustainability Report | Social Information Material Impacts, Risks and Opportunities ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impact IRO Type Location in Value Chain Time Horizon Potential case of high levels of stress and long working hours for own employees Potential negative impact Own operations Medium-term Potential challenges with employee retention and turnover Potential negative impact Own operations Short-term Risk of employee stress and burnout Risk Own operations Medium-term Material impacts, risks and opportunities within MPCC’s business model and strategy MPCC integrates workforce well-being and employee retention into its business strategy, continuously assessing how its activities and workforce dynamics contribute to stress and burnout. It refines its approach to better support employees while ensuring operational efficiency and long-term sustainability. The Company has identified key challenges such as high stress levels, long working hours, and workforce turnover, which impact employee well-being and contribute to absenteeism and operational inefficiencies, particularly among its onshore workforce. To address these risks, MPCC has implemented measures to improve work-life balance, reduce excessive workloads, and enhance job stability, fostering a healthier, lower-stress work environment. Given the short- to medium-term nature of these challenges, the Company remains committed to monitoring and improving workforce policies to build a resilient and sustainable work culture. The DMA identified the following material impacts and risks related to MPCC’s own workforce: Material Impacts Potential case of high levels of stress and long working hours for employees High stress levels and long working hours among its employees pose potential negative impacts across the Company’s onshore operations. Employees with demanding roles and responsibilities may face additional challenges such as reduced sleep, deteriorated well-being, long-term health issues, and, in severe cases, burnout, potentially impacting the employee’s mental and physical health. Potential challenges with employee retention and turnover Employee retention and turnover present a potential short-term challenge for all onshore workers. High turnover rates negatively affect operational efficiency in securing workforce stability and career advancement opportunities, reducing stress and upholding employee morale. As such, the Company focuses on initiatives to improve career development routes, increase employee engagement, and strengthen workplace stability. Its strategy considers diverse workforce segments that may be more vulnerable to turnover- related stress, ensuring that interventions target those most affected. Additionally, MPCC assesses how certain roles or working conditions may elevate the risk of employee departure, helping to refine retention strategies. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 169 169 Sustainability Report | Social Information Sustainability Report | Social Information Material Risks Potential case of high levels of stress and long working hours for employees MPCC recognizes employee stress and burnout as challenges within its operations. High workloads and extended working hours can negatively impact mental and physical well-being, resulting in financial risks such as operational inefficiencies, elevated turnover rates, increased recruitment expenses, productivity losses, and rising insurance premiums. Proactively addressing these risks mitigates financial implications and prevents operational disruptions. Acknowledging the strategic importance of its onshore workforce, MPCC prioritizes mitigating stress-related risks to ensure organizational stability and sustained performance. Furthermore, the company assesses how specific workforce segments may be more susceptible to stress and burnout, informing the development of targeted interventions to minimize associated financial and operational risks. Impact, Risk and Opportunities Management S1-1 Policies related to own workforce MPCC’s social policies establish key principles for managing material topics related to working conditions and work-related rights across its operations. These policies integrate stakeholder interests, including employee representatives, to prioritize critical social issues within the business, which is key to MPCC’s broader workforce strategy. They also address concerns identified through the DMA process, ensuring alignment with its stakeholder’s expectations and a sustainable business model. MPCC ensures policy transparency, making these policies accessible to all relevant stakeholders, particularly its onshore employees. Each policy applies to onshore workers and has been approved by the Compliance Officer, who is responsible for implementation, integration into corporate governance and decision-making, and conducting an annual review to drive continuous improvement. Human Rights Policy MPCC is committed to upholding human rights across its operations, ensuring fair working conditions, ethical labor practices, and respect for individual dignity. The Human Rights Policy aligns with international labor standards, reinforcing compliance with recognized frameworks and ethical guidelines. It sets clear expectations for responsible labor practices for its onshore workers. The policy helps mitigate workforce-related impacts by outlining key principles such as workplace fairness, non-discrimination, and the right to safe and decent working conditions. Human Capital Policy The Human Capital Policy focuses on creating a supportive work environment that promotes employee engagement, development, and retention for onshore employees. Through regular assessments, training programs, and feedback mechanisms, MPCC identifies and mitigates issues specific to its material impacts, such as workforce stress and burnout, ensuring long-term employee well-being and job satisfaction. As part of its commitment to being an employer of choice, MPCC invests in its workforce by fostering an inclusive workplace, ensuring equal pay for equal work, and providing equal access to career development opportunities. The policy aligns with international labor standards and ethical principles, reinforcing MPCC’s dedication to fair employment practices. Health and Safety Policy MPCC’s Health & Safety Policy ensures that operations are conducted with a strong focus on employee well-being and in full compliance with relevant health and safety regulations. The Company is committed to fostering a safe workplace and implementing strict safety protocols, promoting adequate rest Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 170 170 Sustainability Report | Social Information Sustainability Report | Social Information periods for stress reduction, periodic risk assessments, and training to safeguard employee safety. MPCC also ensures that safety principles are effectively communicated across the organization, with management leading by example to uphold high standards to facilitate a business culture that values employee’s health. Sustainability Policy MPCC’s Sustainability Policy integrates social sustainability principles and initiatives, ensuring its approach to onshore worker’s well-being is embedded within business strategy and long-term value creation for the workforce. Actions MPCC recognizes that proactive measures are essential for maintaining a resilient and engaged workforce while mitigating material impacts such as stress, employee retention, and workplace well-being. Through targeted initiatives—including flexible work arrangements, professional development, diversity and inclusion efforts, and human rights training—the Company aim to prevent, monitor, and reduce workforce-related risks, supporting its social sustainability strategy. The Company’s approach prioritizes all employees, particularly the onshore workforce, ensuring inclusivity and effectiveness in addressing workforce challenges. Each initiative is an ongoing effort requiring continuous implementation to enhance employee satisfaction, retention, and operational stability while mitigating financial risks related to absenteeism and turnover in the demanding maritime sector. These actions are integrated into MPCC’s operational budget without requiring external funding, sustainable finance instruments, or significant capital expenditures. Future allocations will remain proportionate to ongoing engagement efforts, ensuring social sustainability without substantial financial impact. Employee feedback survey and engagement initiatives to address workplace stress MPCC proactively addresses workplace stress, recognizing its impact on employee well-being amid demanding BAU operations. The Company conducts regular employee feedback surveys and engagement initiatives, such as off-site events, town halls, and internal gatherings, to foster informal exchanges across all levels. These efforts help us understand and mitigate workplace stressors, particularly for its onshore workforce, and address work-related impacts identified in the materiality assessment. This ongoing commitment will continue in 2025, reinforcing its dedication to a supportive work environment. Inclusive and diverse workplace Diversity and inclusion are part of its efforts to build a positive and cohesive work culture. To achieve this, MPCC have implemented focused policies and workplace culture that promote equal opportunities, diversity, and inclusive hiring practices, ensuring that all employees benefit from a fair and supportive work environment. These principles are designed to strengthen employee engagement, improve collaboration, and contribute to long-term workforce stability. Flexible working arrangements and professional growth opportunities Flexible working arrangements and professional individual growth opportunities are essential to supporting long-term employee engagement and reducing workplace stress for its onshore employees. Initiatives such as career development programs and training opportunities are key to enhancing employee skills and career progression. These efforts are designed to improve job satisfaction, reduce burnout, and strengthen workforce retention. Execution of e-learning courses on human rights MPCC is committed to enhancing awareness and understanding of human rights among its employees through the execution of e-learning courses on human rights. These courses are designed to educate employees on the material impacts linked to key human rights principles, ethical labor practices, and workplace rights, ensuring alignment with international human rights and MPCC’s Human Rights, Human Capital and Sustainability policies. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 171 171 Sustainability Report | Social Information Sustainability Report | Social Information Metrics Characteristics of MPCC’s employees Employee headcount by gender at the end of 2024 Gender Number of employees (annual average) Male 27 Female 11 Other - Not reported - Total Employees 38 Employee TURNOVER Employee Turnover Employee turnover rate (%) 11.16 Employees who left the company during the reporting period 5 Employee Headcount by Location Country Number of employees (head count) Norway 6 Germany 29 Netherlands 3 Total 38 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Annual Onshore Employee Retention Rate Above 90% MPCC has set a target to maintain an annual onshore employee retention rate above 90% within its own operations. This target aligns with the Human Capital Policy, which commits to implementing a professional development program to secure employee retention. The Company aims to sustain a retention rate above 90%, measured as a percentage of employees retained annually. In 2024, the Company achieved a retention rate of 88,8%, indicating that we are close to our target. The Company has been tracking the progress of this action to date, and it will continue to be monitored annually through 2025. To support this goal, MPCC has implemented key initiatives such as performance reviews, enhanced employee engagement strategies, employer branding and flexible working arrangements. This target is based on internal workforce data, employee feedback, and industry standards, ensuring a data-driven approach to measuring and improving retention. To track progress, MPCC utilizes employee surveys and retention tracking, allowing for further assessments and refinement of workforce strategies. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 172 172 Sustainability Report | Social Information Sustainability Report | Social Information S1 Accounting principles ESRS DR Paragraph(s) Datapoint / metric Accounting principle MDR-M 77, 77a Description of metric used to evaluate performance and effectiveness, in relation to material impact, risk or opportunity, Disclosure of methodologies and significant assumptions behind metric The annual employee retention rate is calculated by dividing the number of employees who leave during a specific period by the average number of employees in the Company during that same time and multiplying by 100, ensuring retention is expressed as a percentage. S1-6 AR 59 For the own employee turnover calculation, the undertaking shall calculate the aggregate of the number of employees who leave voluntarily or due to dismissal, retirement, or death in service. The undertaking shall use this number for the numerator of the employee turnover rate and may determine the denominator used to calculate this rate and describe its methodology. The employee turnover rate is calculated by comparing the number of employees on the reporting date (December 31) with the number at the start of the 2024 reporting period. The turnover rate is determined by dividing the number of employees who left during the year (5) by the total employees at the beginning of the period. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 173 173 Sustainability Report | Social Information Sustainability Report | Social Information S2 Workers in the value chain MPCC recognizes the importance of safeguarding workers' well-being, safety, and rights across its value chain, including seafarers, ship recycling workers, and other supply chain workers. While seafarers fall into its value chain, they are a distinct group central to MPCC's operations, crucial in ensuring business continuity and operational success. The Company has identified thirteen material impacts, two risks, and one opportunity, reinforcing its commitment to addressing critical challenges such as health and safety risks, working conditions, and human rights protections. Through its Human Rights, Health & Safety, Sustainability, and Human Capital Policies, MPCC promotes fair labor practices, safe working environments, and ethical supply chain management. Key initiatives include training programs for seafarers, enhanced ship recycling standards, human rights education for stakeholders, and workplace well-being initiatives. These efforts align with international labor laws and industry best practices to mitigate risks and ensure compliance. The Company continuously monitors safety performance, conducts audits, and implements proactive measures to uphold standards and drive positive change within its value chain. KPIs Lost Time Injury Rate (LTIR) Zero Serious Injuries Relevant Policies Human Rights Policy Health and Safety Policy Sustainability Policy Human Capital Policy Business Partner Guidance Ship Recycling Policy Reporting Standards Used ESRS 2, ESRS S2 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 174 174 Sustainability Report | Social Information Sustainability Report | Social Information Material Impacts, Risks And Opportunities ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impact IRO Type Location in Value Chain Time Horizon Working conditions Decreased lifespan of ship recycling workers Actual negative impact Downstream Recurring Accidents and fatalities in ship recycling yards Potential negative impact Downstream Short term Fatalities of workers in the value chain Potential negative impact Upstream Short term Suboptimal working conditions for supply chain workers Potential negative impact Upstream Medium-term Stress in the workforce (Seafarers) Potential negative impact Downstream Short term High retention of staff contracts of crew on board the vessels Actual positive impact Downstream Recurring Overtime seafarers Actual negative impact Downstream Recurring Major health and safety issues (Seafarers) Potential negative impact Downstream Short term Non-compliance with Hong Kong convention on working conditions of workers in ship recycling Risk Downstream Short term Societal development leads to people losing interest in jobs with hard working conditions Risk Downstream Medium-term Recording of LTIF and "Lessons Learned" Opportunity Downstream Short term Other work-related rights Human rights abuses of smaller suppliers down the value chain Potential negative impact Upstream Medium-term Limited freedom of ship recycling yard workers Potential negative impact Downstream Short term Minors working in ship recycling yards Potential negative impact Downstream Short term Single rooms onboard of vessels (Seafarers) Actual positive impact Downstream Recurring Availability of internet connection (Seafarers) Actual positive impact Downstream Recurring Material impacts, risks and opportunities within MPCC’s business model and strategy MPCC integrates workforce well-being, safety, and human rights into its business model and strategy, ensuring that material impacts, risks, and opportunities across its upstream and downstream value chain are assessed and addressed in alignment with the Company’s policies. This approach establishes a business framework that prioritizes social sustainability in the supply chain. While MPCC’s workforce includes ship recycling workers and other value chain employees who face various transnational impacts its crew members hold a distinct position within the value chain. As a central part of MPCC’s operations, crew members are essential to ensuring business continuity and the successful execution of maritime activities, making their safety and well-being a core focus of the Company’s commitment to responsible labor practices. The maritime industry presents inherent risks that can impact workers across MPCC’s value chain. These include potential exposure to hazardous substances and workplace accidents, which may result in physical injuries, psychological distress, or, in severe cases, fatalities. MPCC remains committed to mitigating these risks and prioritizing worker safety and well-being throughout its operations and partnerships. Building on this commitment, MPCC recognizes the material significance of these impacts, risks and opportunities, MPCC evaluates how its business relationships, operational structures, Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 175 175 Sustainability Report | Social Information Sustainability Report | Social Information and contractual agreements may contribute to or mitigate these challenges. This includes monitoring supplier compliance, implementing safety measures, and improving working conditions for both offshore and supply chain workers. Given the short- to medium-term nature of many of these risks, MPCC remains committed to proactively addressing these issues through continuous engagement, responsible business practices, and alignment with evolving industry standards. The DMA identified the following impacts, risks and opportunities relating to workers in MPCC’s value chain to be material. Material impacts – Working Conditions Major health and safety issues (Seafarers) Health and safety incidents offshore have long been a critical focus in the maritime industry, given their potential for severe and lasting consequences. For MPCC, such incidents can have negative impacts on its downstream value chain, particularly in distribution for crew members onboard MPCC’s vessels. While fatalities at sea are rare, they carry profound and irreversible consequences—resulting in loss of life, emotional distress, and financial instability for affected families. Recognizing the historical significance of offshore safety risks, MPCC remains committed to protecting its workforce and upholding the highest safety standards across its operations. Decreased lifespan of ship recycling workers The decreased lifespan of ship recycling workers is a recurring, actual negative impact within MPCC’s downstream value chain, affecting those exposed to harsh working conditions and toxic substances in end-of-life operations. These workers face severe health risks, including long-term illnesses that reduce life expectancy. Understanding workers' risks in fleet operations is essential to addressing harmful industry practices and advocating for higher safety standards. Accidents and fatalities in ship recycling yards Accidents and fatalities in ship recycling yards represent a short- term potential negative impact within MPCC’s downstream value chain, posing risks to workers at the end-of-life stage, including physical injuries and loss of life. These incidents create an unsafe and unstable work environment, affecting workers' physical and mental well-being, highlighting the need for ongoing risk evaluation and management oversight. Fatalities of workers in the value chain The shipbuilding and ship-repair sector faces significant risks related to worker fatalities, making it a major concern in the global industry. As MPCC's operations include ship newbuilding and ship- repair in its upstream and downstream value chain, there is an inherent risk of such incidents affecting workers. Fatalities due to unsafe working environments are the primary concern, posing a serious threat to worker safety. Furthermore, unsafe working conditions in shipyards contribute to additional insecurities among workers, potentially leading to higher turnover rates. Recognizing the high-risk nature of shipbuilding, MPCC is committed to identifying and assessing workplace hazards, addressing unsafe practices, and ensuring worker protection. The company prioritizes providing all materially impacted workers with a safe and secure working environment. Suboptimal working conditions for supply chain workers MPCC recognizes suboptimal working conditions as a medium-term potential negative impact affecting all workers across both the upstream and downstream value chain including ship repair and ship recycling which occur at both stages of the supply chain. Some workers in MPCC’s supply chain, operating in high-risk jurisdictions, face inconsistent compliance with labor standards, wage disparities, and unequal access to social protections and health and safety measures. Given the complexity of the global supply chain, MPCC acknowledges the vulnerability of supply chain workers. These challenges stem from varying local regulations, limited traceability, and visibility into supplier practices, making it difficult to enforce consistent labor and safety standards across diverse regions. As a result, workers may face heightened risks to their health, safety, and job security. Stress and overtime for Seafarers Stress and overtime are common challenges for seafarers within distribution, representing a negative impact in MPCC's downstream value chain. Overtime is a recurring actual impact, while workforce stress is a short-term potential impact. The demanding nature of offshore work for crew members and extended working hours contribute to mental health challenges, reduced productivity, and increased absenteeism, while excessive overtime leads to fatigue and burnout. MPCC ensures compliance with international regulations related to working hours and manages stress and overtime risks through the technical managers system, which monitors employee working hours. Additionally, the Company Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 176 176 Sustainability Report | Social Information Sustainability Report | Social Information is committed to reducing these risks by strategically improving stress-related impacts due to overtime. At the same time, variations in crew size and commercial terms may result in instances of overtime, particularly in offshore operations where extended work periods are common. Given the long-term effects of excessive working hours, MPCC continues to evaluate working conditions and implement measures to mitigate stress-related risks, ensuring that its seafarers are protected from prolonged working hours. High retention of staff contracts of crew on board the vessels High retention of crew members and recurring contracts with already familiarized crew on board the vessels have a positive impact on the workforce's financial and professional stability. While MPCC is not the direct employer of offshore workforce and crews, its collaboration with crewing agencies highlights the happiness with MPCC as a contractor. This is supported by efforts to provide favorable contractual terms and ongoing skills development, ultimately benefiting both the workforce and operational performance. Material impacts – Other work-related rights Human rights abuses of smaller suppliers down the value chain Human rights abuses by smaller suppliers present a short-term potential negative impact on MPCC’s upstream and downstream value chain. These abuses may include forced labor, wage exploitation, and inadequate working conditions. This issue is prevalent across the maritime and shipbuilding industries due to the complexity of global supply chains, the lack of unified labor standards, and historical cases of unethical labor practices. MPCC recognizes the challenge of ensuring ethical labor practices across all supplier tiers and is committed to strengthening oversight mechanisms to prevent such violations, aligning with best practices to promote fair and responsible sourcing. Limited freedom of ship recycling yard workers Limited freedom of ship recycling yard workers represents a recurring potential negative impact on MPCC’s downstream value chain. In some regions, workers may face restricted movement, lack of collective bargaining rights, and inadequate representation in workplace decisions. MPCC acknowledges these risks and evaluates ways to enhance worker protection within the ship recycling industry. Minors working in ship recycling yards The presence of minors in ship recycling yards is a short-term potential negative impact on MPCC’s downstream value chain. Child labor remains a concern in certain shipbreaking regions, where economic pressures force underage workers into hazardous environments. MPCC strictly prohibits child labor within its value chain and works to ensure that all contracted recycling facilities comply with International Labor standards. Single rooms onboard vessels Providing single rooms onboard vessels presents a recurring actual positive impact in MPCC’s downstream value chain for distribution workers. Access to private accommodation improves crew well- being, offering personal space for rest and recovery during long voyages. This contributes to better mental health, higher job satisfaction, and improved working conditions for seafarers. Availability of internet connection The availability of internet connection onboard vessels is a recurring actual positive impact in MPCC’s downstream value chain. Reliable internet access allows seafarers to stay connected with family and access digital entertainment, reducing feelings of isolation and improving overall mental well-being. MPCC has rolled out Starlink connectivity across its fleet, ensuring that crew members benefit from enhanced communication and access to online resources. Material risks and opportunities Non-compliance with the Hong Kong Convention on working conditions in ship recycling MPCC recognizes non-compliance with the Hong Kong Convention on ship recycling in its downstream operations as a short-term material risk. The convention sets international standards for safe and environmentally sound ship recycling, ensuring the health, safety, and welfare of vulnerable workers in recycling yards. Failure to comply with these standards, particularly regarding labor rights and workplace safety, may lead to legal liabilities, financial penalties, reputational damage, and restricted access to capital due to increased financing requirements from banks. Societal development leading to Declining Interest in physically demanding jobs The declining interest in physically demanding jobs presents a medium-term material risk within MPCC’s downstream value chain in distribution. A growing trend in Western and industrialized nations Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 177 177 Sustainability Report | Social Information Sustainability Report | Social Information shows a reduced willingness to perform physically intensive labor, leading to a shrinking talent pool for seafarers. This shift presents recruitment challenges, increased competition for talent, and rising labor costs. Recording of Lost Time Injury Frequency (LTIF) and "lessons learned" MPCC identified the recording of LTIF and "Lessons Learned" as a short-term financial opportunity within its downstream value chain. Through the technical managers monitoring, all accidents and near misses are documented and analyzed to develop preventive safety measures. This proactive approach enhances workforce safety, operational efficiency, and risk mitigation. Fewer accidents result in fewer disruptions, minimizing the need for crew replacements and unplanned downtime, positively impacting financial performance and workforce stability. Impact, Risk and Opportunities Management S2-1 Policies related to value chain workers MPCC’s policies are fundamental to how the Company governs identified material topics. Each policy applies to all upstream and downstream value chain workers, including ship recycling and distribution workers, as well as suppliers, who are required to adhere to these principles to safeguard workforce rights. For more information on how MPCC considers stakeholders and manages these policies, please refer to S1 Policies. Human rights Policy MPCC’s Human Rights Policy reinforces its commitment to respecting human rights and addressing salient labor issues. The policy aligns with international frameworks, including the International Bill of Rights, ILO Fundamental Conventions on Labor Standards, the UN Guiding Principles on Business and Human Rights, and all applicable national laws. It establishes principles to prevent human rights abuses across the value chain, focusing on crew working conditions, ship recycling risks, non-discrimination, forced labor, child labor, human trafficking and ethical supply chain management. Health and safety Policy MPCC’s Health & Safety Policy ensures a safe working environment for offshore workers across the upstream and downstream value chain. It outlines key principles related to safe working conditions, including protection against hazardous substances, safety training, and the provision of protective equipment in the marine environment. It also mandates that offshore management comply with relevant national and international laws and industry standards to uphold workplace safety. Sustainability Policy MPCC’s Sustainability Policy focuses on the integration of social sustainability throughout its operations and value chain. The policy aligns with key international frameworks such as the Sustainable Development Goals and the Hong Kong Convention. It seeks to minimize sustainability impacts related to upstream workers, ship recycling, and distribution workers in downstream operations. Human Capital Policy MPCC’s Human Capital Policy outlines key workplace practices that prioritize the well-being of value chain workers. This includes measures to alleviate stress and enhance retention through professional development. These principles align with MPCC’s commitment to safeguarding the rights of value chain employees while ensuring compliance with international and national labor regulations. Business Partner Guidance The Business Partner Guideline sets out MPCC's expectations for suppliers and business partners, emphasizing compliance with International Labor laws, human rights standards, and Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 178 178 Sustainability Report | Social Information Sustainability Report | Social Information ethical practices. The policy addresses material impacts, risks, and opportunities, including child rights, health and safety, and injury prevention. It mandates transparency, regular monitoring, and collaboration to ensure fair working conditions and prevent exploitation, particularly in ship recycling yards and among smaller suppliers down the value chain. Ship Recycling Policy MPCC’s Ship Recycling Policy outlines the Company’s commitment to responsible and sustainable ship recycling, ensuring the protection of human rights and worker welfare for value chain workers throughout the process. The policy aligns with the Hong Kong Convention, the Basel Convention, and the EU Ship Recycling Regulation, ensuring that all recycling activities uphold safety and environmental standards. It also defines specific requirements for MPCC-owned vessels and expectations for third-party buyers when vessels are sold for potential recycling. S2-4 Taking action on material impacts on own workforce, and approaches to managing risks and pursuing opportunities related to value chain workers, and effectiveness of those actions MPCC is committed to safeguarding the rights and well-being of value chain workers while mitigating risks such as hazardous working conditions, human rights violations, excessive working hours, and workforce stress. To address these challenges, the Company has implemented key initiatives, including enhanced health and safety protocols aligned with the Hong Kong Convention and EU Ship Recycling Regulation, stricter oversight of smaller suppliers' working conditions, and improvements in internet access and single-room accommodations for offshore crew members. These initiatives cover upstream suppliers (raw materials – Tier 1, 2, and 3), ship recycling at end-of-life, and offshore distribution. To ensure accountability, MPCC provides a complaints mechanism for impacted stakeholders. For details on how MPCC facilitates remedies for stakeholders affected by adverse impacts in the value chain, refer to S1 Actions. MPCC ensures appropriate resource allocation for effective execution. For further information on resource planning and financial allocation, see S1 Actions. Training and Education Ensuring a safe and healthy work environment for seafarers in its downstream operations is a key priority in MPCC’s commitment to workforce well-being and operational safety. To achieve this, MPCC has implemented focused training and education initiatives, ensuring that all offshore workers are upskilled and possess the necessary competencies to manage the specific risks and challenges of their roles in maritime environments. Through these efforts, MPCC aims to foster a safer, more resilient workplace while contributing to long-term workforce retention and stability. MPCC Ship Recycling Policy Safe and ethical ship recycling practices are core to MPCC’s commitment to worker well-being and environmental responsibility. To achieve this, the Company has implemented focused initiatives under the Ship Recycling Policy, which mandates strict alignment to the EU Ship Recycling Regulation and other international standards such as the Hong Kong Convention to ensure safe and responsible vessel disposal for the ship recycling workers in the end-of-life downstream operations. These measures are designed to protect ship recycling workers from hazardous conditions, prevent human rights violations, and promote fair working conditions in recycling yards. Through these efforts, the Company aims to enhance industry-wide best practices and drive long-term improvements in worker protection and broader social sustainability within the ship recycling sector. E-Learning on Human Rights Ensuring awareness and adherence to human rights standards allows MPCC to align with ethical and responsible ship recycling practices. To strengthen this commitment, the Company have introduced an E-learning on Human Rights course, which provides training on globally recognized human rights principles and safety standards. Through this, workers and management can identify human rights risks at the yards, creating a culture of accountability and responsible business conduct. Well-being Survey Understanding and addressing the well-being of offshore workers is important for its operations; therefore, MPCC prioritizes offshore worker well-being to manage material impacts effectively. In 2024, MPCC launched a Well-being Survey to identify key stress factors, mental health challenges, and areas for improvement in crew welfare. Insights from the survey will inform targeted initiatives to enhance mental health support, working conditions, and overall crew satisfaction at sea. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 179 179 Sustainability Report | Social Information Sustainability Report | Social Information Promoting Healthier Lifestyles Supporting the physical and mental well-being of offshore workers is a priority in MPCC’s commitment to workforce health and safety efforts. To promote healthier lifestyles, MPCC introduced an initiative that encourages balanced diets and active living on board. This program emphasizes nutritional awareness, healthier meal options, and opportunities for physical activity, enhancing both physical fitness and mental health. Internet Access MPCC recognizes the challenges of isolation faced by offshore workers separated from their families. Therefore, enhancing onboard connectivity is a key priority, providing offshore workers with opportunities to stay connected with their families and access digital entertainment. To support this, MPCC have implemented a fleetwide rollout of Starlink that crew members can use to have reliable and secure internet access throughout their time at sea. Anti-Harassment Campaign MPCC is committed to fostering a respectful and inclusive workplace for offshore workers. MPCC´s Anti-Harassment Campaign raises awareness about harassment prevention, respectful workplace behavior, and MPCC’s zero-tolerance policy. This initiative ensures a safe, supportive environment where harassment is identified, reported, and addressed. Sports on Board Campaign Ensuring offshore workers' physical well-being and stress reduction is vital for job performance and safety. MPCC's Sports on Board campaign uses competitive gamification to promote physical fitness, teamwork, and an active lifestyle among crew members. This initiative supports stress reduction, mental well-being, and overall health, helping seafarers maintain a balanced routine at sea. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 180 180 Sustainability Report | Social Information Sustainability Report | Social Information Performance, Metrics & Targets S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Lost Time Injury Rate (LTIR) MPC Container Ships has set a target to maintain a Lost Time Injury Rate (LTIR) not exceeding 0.3 by 2030 for seafarers in our downstream value chain. This target aligns with the objectives outlined in MPCC’s Health and Safety Policy, reinforcing the Company’s commitment to ensuring a safe and secure working environment for seafarers. Tracking of this target began in 2021 starting at 1.17 and was reduced to 0.05 in 2023, providing a reference point for ongoing improvements. MPCC actively monitors LTIR through safety performance metrics, regular safety audits, emergency drills, and structured training programs, all coordinated by technical managers within the downstream value chain. The methodology for defining this target is aligned with IMO´s International Safety Management Code (ISM Code). To enhance safety culture and target-setting effectiveness, MPCC engages with industry stakeholders, safety organizations, and regulatory bodies that provide insights and recommendations for continuous improvement. For details on how MPCC aim to address changes to all targets please refer to S1 Targets. Zero Serious Injuries MPCC has set a target of zero serious injuries within its fleet operations, reinforcing its commitment to the highest safety standards for seafarers. This target aligns with MPCC’s Health and Safety Policy, which prioritizes the prevention of workplace accidents and the continuous improvement of safety measures. To achieve this, MPCC implements ongoing safety training to prevent serious injuries on board. Tracking of this target began in 2021, when one serious injury was recorded. However, MPCC has successfully maintained zero serious injuries since 2022. The target applies to the entire fleet, with progress monitored continuously through 2025 and beyond to sustain a zero-injury workplace. MPCC actively monitors safety performance through audits and drills, ensuring ongoing assessment and continuous improvement. This approach aligns with international safety standards and involves collaboration with relevant stakeholders, as outlined in MPCC’s LTIR target. AI Safety Monitoring System MPCC is piloting the ShipIn system, installing 20+ AI-powered cameras on five vessels to analyze video footage and provide feedback to ship command and shore-side personnel at WASM. This initiative aims to enhance safety, reduce accidents, and enforce compliance with regulations. The decision on a full-scale rollout is expected later this year, with progress being monitored as part of MPCC’s sustainability targets. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 181 181 Sustainability Report | Social Information Sustainability Report | Social Information Metrics Health and safety metrics – Workers in the Value Chain Metric 2024 2023 2022 Percentage of workers in headcount who are covered by the Company's health and safety management system based on legal requirements and/or recognized standards or guidelines 100 100 100 Number of fatalities as a result of work-related injuries and work-related ill health - - - Number of recordable work-related accidents (excluding fatalities) 10 3 7 Rate of recordable work-related accidents 0.36 0.05 0.14 Number of cases of recordable work-related ill health 10 n/a n/a Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health 9 7 10 Health and safety metrics – Workers in the Value Chain (Vessels) Incident Type Value Unit Total Exposure hours 11,535,489.00 Number Total Fatalities due to injuries - Number Average incident resulting in absence from work 0.15 Number Average Lost Time Incident Rate 0.36 LTIR Average Lost Time Injury Frequency Rate 1.78 LTIF Average Lost workday cases 0.13 Number Total Permanent partial disabilities 1 Number Total Permanent total disabilities 5 Number Total hours worked by employees 10,691,569.50 Number Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 182 182 Sustainability Report | Social Information Sustainability Report | Social Information S2 Accounting principles ESRS DR Paragraph(s) Datapoint / metric Accounting principle MDR-M 75, 77a Description of metric used to evaluate performance and effectiveness, in relation to material impact, risk or opportunity, Disclosure of methodologies and significant assumptions behind metric MPCC measures Lost Time Injury Rate (LTIR ) and Lost Time Injury Frequency Rate (LTIF) to track work-related injuries across its fleet. LTIR measures the frequency of work-related injuries resulting in lost workdays, standardized per 200,000 hours worked. MPCC targets an LTIR below 0.3 by 2030. LTIF measures the frequency of lost-time injuries per 1,000,000 hours worked, serving as an additional safety performance indicator. LTIR and LTIF are calculated per vessel first, and the final figures disclosed by MPCC represent the fleet-wide average of these individual vessel rates. The methodology for these calculations is as follows: LTIR = (Number of Lost Workday Cases × 200,000) / Total Hours Worked LTIF = (Number of Lost Workday Cases × 1,000,000) / Total Hours Worked The total hours worked include offshore operations, accounting for all employee and contractor work hours. Serious Injury The Serious Injury Count monitors incidents that result in severe, life- threatening, or permanently disabling injuries, with an aspirational target of zero serious injuries. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 183 183 Sustainability Report | Social Information Sustainability Report | Social Information Entity Specific — Search And Rescue MPCC recognizes its legal and humanitarian obligations in Search and Rescue (SAR) operations, ensuring compliance with the Safety of Life at Sea (SOLAS) Convention. The Company has identified three material impacts related to SAR: lives saved through sea rescue, crew safety risks during rescue operations, and the principle of non-refoulement for rescued individuals. Its commitments are embedded in Health & Safety, Human Rights, and Human Capital Policies, ensuring alignment with international safety standards, worker protection, and ethical labor practices. MPCC implements continuous mitigation measures, including operational monitoring, safety protocol implementation, and audits, which certified technical managers manage. The Company will continue refining its SAR framework, balancing its obligations to crew workers, rescued individuals, and local communities. KPIs Number of SAR operations attended Relevant Policies MPCC is in the process of developing a policy in 2025 Reporting Standards Used ESRS 2 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 184 184 Sustainability Report | Social Information Sustainability Report | Social Information Material Impacts, Risks and Opportunities ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impact IRO Type Location in Value Chain Time Horizon Lives saved through sea rescue Actual positive impact Own operations Recurring Crew safety risk due to sea rescue Potential negative impact Own operations Short-term Not meeting the principle of non-refoulment for rescued migrants and refugees Potential negative impact Own operations Short-term Material impacts, risks, and opportunities within business model and strategy A part of MPCC’s business activity might be affected by Search and Rescue (SAR) operations, fulfilling its obligation under the International Convention for the Safety of Life at Sea (SOLAS) to assist individuals in distress, regardless of nationality, status, or circumstances. In international shipping, responding to distress calls is both a legal and humanitarian duty, particularly for crew members in the downstream value chain. Given the impact of SAR operations on stakeholders, including safety and security risks, MPCC’s business model requires an effective strategic approach to manage these challenges. MPCC remains committed to balancing its legal obligations, crew safety, and community obligations, continuously adapting its strategy and operational frameworks to mitigate risks while maintaining its role in protecting lives at sea. Material impacts Lives saved through sea rescue In the event of an SAR operations MPCC’s efforts and support have a recurring positive impact by saving lives at sea, reinforcing the Company’s commitment to humanitarian responsibilities in the downstream value chain. Many migrants and refugees risk their lives in distress at sea, relying on merchant vessels such as MPCC’s for rescue. The Company has already conducted search and rescue operations, demonstrating a direct, life-saving impact. These efforts underscore the vital role of crew members in SAR missions, emphasizing the importance of seafarers in responding to distress situations. The Company recognizes that certain crew members working in maritime areas with high SAR probability may be more directly impacted, necessitating adequate training and support to ensure their safety and well-being. The positive impact of SAR operations is expected to remain a long-term and recurring aspect of MPCC’s business, as maritime migration continues to pose risks for vulnerable individuals at sea. The Company remains committed to ensuring safe, effective rescue operations while safeguarding the welfare of its crew. Crew safety risk due to sea rescue Search and rescue operations have potential short-term safety impacts for crew members in the Company´s downstream value chain. When responding to distress calls, vessels may take on 50–60 individuals in highly stressful conditions, where fear and Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 185 185 Sustainability Report | Social Information Sustainability Report | Social Information misunderstandings can escalate into conflict, leading to potential physical and psychological harm. These risks primarily impact seafarers directly involved in rescue efforts, requiring specialized de-escalation training and crisis management skills to handle high-pressure situations safely and effectively. Not meeting the principle of non-refoulement for rescued migrants and refugees MPCC recognizes that search and rescue (SAR) operations can have a potential negative impact if the principle of non-refoulement is not upheld. Under the International Convention for the Safety of Life at Sea (SOLAS), shipmasters ought to assist individuals in distress at sea. However, this obligation extends beyond rescue, requiring vessels to transport rescued individuals to a place of safety where their lives and freedoms are not at risk. These risks occur particularly in likely SAR zones maritime zones where migration routes intersect with commercial shipping lanes. Failure to uphold non-refoulement could result in rescued migrants and refugees being returned to high-risk regions, where they may potentially face persecution. This humanitarian challenge may have a negative effect on stakeholders. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 186 186 Sustainability Report | Social Information Sustainability Report | Social Information Impact, Risk and Opportunities Management Policies MPCC is committed to assisting individuals in distress at sea, recognizing the humanitarian and legal responsibilities of search and rescue (SAR) operations. While there is currently no standalone SAR policy, our commitments to safety, human rights, and worker protections are embedded in existing policies, including the Health & Safety Policy, Human Capital Policy, and Human Rights Policy with management approval. These policies address crew welfare, and guide SAR-related decision-making. For more information, please refer to the Policies section under S2. SAR-related responsibilities continue to be overseen by technical managers, ensuring regulatory alignment and the safety of both crew and rescued individuals. MPCC’s policies align with global frameworks such as IMO and MARPOL standards, ensuring ethical governance, compliance, and transparency. Actions MPCC complies with the Safety of Life at Sea (SOLAS) Convention, which mandates assisting persons in distress at sea. The Company recognizes its human rights and safety responsibilities in Search and Rescue (SAR) operations and is committed to developing a formal SAR action plan, focusing on operational readiness, legal compliance, and enhanced safety protocols. Mitigation measures are overseen by technical managers certified under quality and environmental management systems. They monitor operations, implement safety protocols, and conduct regular audits to ensure compliance with international regulations. MPCC also remains committed to providing appropriate remediation for individuals affected during SAR operations, ensuring rescued persons receive safe passage and necessary assistance. As part of the broader safety and human rights commitments, MPCC continues refining its SAR approach, balancing its obligations to offshore workers, rescued individuals, and local communities. Targets MPCC has not previously set a formal target for Search and Rescue (SAR) operations, as these activities are governed by binding legal requirements, particularly under the Safety of Life at Sea (SOLAS) Convention. Since no previous targets have been set, there are no milestones or prior performance metrics to report. The development of SAR commitments will be rooted in international legal requirements, ensuring full alignment with SOLAS and core regulatory frameworks. For details on target-setting processes and methodology updates, please refer to S1 Targets. Metrics Entity specific – SAR Operations Number of people in distress supported by MPCC 52 Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 187 187 Sustainability Report | Social Information Sustainability Report | Social Information Governance Information G1 Business Conduct 189 G1 Accounting policies 197 Annual and Sustainability Report 2024 188 Sustainability Report | Governance Information G1 Business Conduct Working on business conduct entails continually improving how MPCC shape its corporate culture, including key aspects such as whistleblowing, political engagement, supplier relationships, and the prevention of corruption and bribery. MPCC upholds these principles by operating with integrity and adhering to all applicable laws in the countries where it does business. MPCC is dedicated to fostering a strong culture of integrity, striving for full compliance with the Corporate Governance Policy and Company Code of Conduct, with zero tolerance for corruption. On the topic of business conduct MPCC has therefore identified five material impacts, risks and opportunities across the themes of corporate culture, payment practices and corruption & Bribery. This reflects a broader company focus on ethical business practices, financial responsibility in supplier relationships, and strong governance frameworks to help mitigate any corruption and compliance risks. KPIs ESG policies updated and made available on website Develop and implement ESG digital course for internal and external stakeholders Annual high quality ESG disclosures based on ESRS Identify, assess, integrate and monitor anti-corruption risks Implement annual testing and training of MPCC whistleblower system Relevant Policies Code of Conduct Corporate governance policy Anti-corruption policy Sanctions Policy Reporting Standards Used ESRS G1 Relevant SDGs Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 189 189 Sustainability Report | Governance Information Sustainability Report | Governance Information Material Impacts, Risks and Opportunities ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impact IRO Type Location in Value Chain Time Horizon Corporate culture – Openness and values of trust and collaboration Positive actual impact Own operations Short-term Payment practices – Payment of suppliers on time Positive actual impact Upstream Short-term Management of relationships with suppliers – Engagement with ship recycling yards Positive potential impact Downstream Short-term Payment practices – Technical manager needs to stop management of an MPCC vessel due to lack of funding Risk Own operations Short-term Corruption and bribery – Money laundering risk due to the nature of the business Risk Own operations Short-term The MPCC double materiality assessment identified the following material impacts, risks and opportunities relating to business conduct. Material impacts Corporate culture – Openness and values of trust and collaboration Good corporate governance is essential to maintaining the integrity and efficiency of MPCC, fostering trust, and ensuring transparency for its stakeholders. MPCC has a positive actual impact on its staff by promoting openness and values of trust and collaboration. The Company has an open and welcoming corporate culture, with a focus on integrating management as an integral part of the workforce. By fostering a collaborative and transparent environment, MPCC promotes a positive workplace where individuals feel comfortable expressing their opinions and being themselves. This, in turn, enhances employee well-being and overall job satisfaction. Payment practices – Payment of suppliers on time MPCC has an actual positive impact on direct suppliers in its upstream value chain and the technical managers in its downstream value chain, by ensuring that it pays them on time. To strengthen its positive impact on suppliers through payment practices, MPCC makes use of framework agreements that facilitate long-term payment practices. Strong supplier payment practices build trust, enhance supply chain reliability, and foster long-term partnerships, ultimately supporting business stability, sustained investment, and competitive advantage. Management of relationships with suppliers – Engagement with ship recycling yards MPCC can have a positive impact on the shipping industry as result of selecting ship recycling yards that uphold high environmental and social standards, including fair working conditions, wages, and health and safety measures. Through these audits and ongoing engagement, MPCC can contribute to improving worker conditions across the value chain, significantly enhancing their well-being. Material risks and opportunities: Payment practices – Technical manager needs to stop management of an MPCC vessel due to lack of funding As outlined under impacts above, strong supplier payment practices are essential to MPCC for ensuring supply chain reliability and maintaining business stability. Failing to pay technical managers because of lack of funding could lead to operational disruptions, including the inability of MPCC to manage Company vessels and fulfil other client contracts. Over time, this could in turn weaken cash flow and impact MPCC’s long-term financial stability and reputation. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 190 190 Sustainability Report | Governance Information Sustainability Report | Governance Information MPCC has established strong supplier payment practices, earning the technical managers' trust in its financial reliability, thereby minimizing the likelihood of this risk occurring. Additionally, implementing streamlined communication channels further helps to mitigate this risk. Corruption and bribery – Money laundering risk due to the nature of the business Due to the nature and history of the shipping industry, there is an inherent risk of money laundering in MPCC’s own operations. The complexity of cross-border transactions, the cash-based nature of certain operations, and inadequate controls can create vulnerabilities if not properly mitigated. Other cases of corruption or bribery in MPCC’s operations are also risks for the Company. For MPCC, the financial impact could include reputational damage, regulatory fines, and restricted access to capital. In severe cases, especially for a publicly listed company such as MPCC, the Company’s right to operate could be jeopardized. To mitigate and reduce this financial risk, MPCC relies on a comprehensive framework of policies, governance structures, and monitoring mechanisms, as well as employee training. Impact, Risk and Opportunity Management G1-1 Business conduct policies MPCC’s approach to business conduct is anchored in its robust governance practices, which establish clear standards for ethical operations and define expectations for employees, suppliers, business partners and stakeholders. These practices align with internationally recognized principles and frameworks to ensure transparency and accountability across all aspects of its operations. Each policy is approved by the Board of Directors, while the Chief Compliance Officer is responsible for implementation, integration into corporate governance and decision-making, and conducting an annual review to drive continuous improvement. Code of conduct MPCC’s Code of Conduct serves as a comprehensive guide to business conduct for all employees and the Company’s affiliates. It establishes that all employees are expected to observe high standards of business and personal ethics in the conduct of their duties and responsibilities, in line with MPCC governing documents. The Code of Conduct outlines key objectives the Company follows to uphold the highest ethical standards across all operations including compliance with all applicable laws and governmental rules and regulations in the countries in which it is operating. These objectives include strict adherence to health and safety, labor and human rights, prevention of corruption and money laundering, ensuring fair competition and maintaining a positive workplace with an inclusive working environment. The Code of Conduct applies to all entities controlled by the Company and all employees, directors, officers and agents of the Company. Each individual employee is ultimately responsible for their compliance with the Code of Conduct and every manager will also be responsible for administering the Code of Conduct as it applies to employees and operations within each manager’s area of supervision. When such managers in MPCC detect irregularities in relation to potential violations of laws or the regulations of the Code of Conduct, the matter is handled in accordance with the Code of Conduct’s instructions for reporting violations. To solidify the Company’s efforts to uphold the highest standards possible, the Code of Conduct aligns with internationally recognized principles like the UN Conventions on Human Rights, the ILO Conventions, and the Norwegian Working Environment Act. Several communication channels are utilized to make the Code of Conduct available to all employees and stakeholders. Employees are required to complete mandatory ethics and compliance training and refer to the Code in their day-to-day work. All employees or hired personnel who become aware of a breach of the Code are obligated to report the matter through their reporting line of choice. Breaches could be reported to immediate supervisors Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 191 191 Sustainability Report | Governance Information Sustainability Report | Governance Information or higher management, either by themselves or through an employee representative, safety representative, colleague or lawyer. Internal and external whistleblowing channels are also available, as outlined in the section below. Sustainable Procurement Policy MPCC’s Sustainability Procurement Policy outlines the Company's decision-making process when procuring for goods and services. The main objectives of the policy are to: Integrate sustainable procurement by prioritizing suppliers with strong environmental, social, and governance (ESG) practices. Identify areas of higher risk and influence within its supply chain and increasingly engage with suppliers in those areas to stimulate improving environmental performance at those points. This policy applies to everyone at MPCC and its subsidiaries and to the purchase of goods and services in general. Protection of whistleblowers The Company’s policy for whistleblower protection is outlined in MPCC’s Code of Conduct. The Company’s whistleblowing mechanism is available to all employees, hired personnel and contractors, subcontractors and board members, to ensure irregularities are reported safely and confidentially. The whistleblowing procedures adhere to the highest standards of protection for whistleblowers, including those outlined in Directive (EU) 2019/1937 and the Norwegian Working Environment Act. Anonymous reporting for employees, business partners or external stakeholders is available via the whistleblowing mechanism and accessible via the Company’s website. This platform enables anonymous reporting and provides comprehensive guidelines on how to report misconduct, as well as details on how reports are handled, including the processing of personal data. Employees have the additional option to report irregularities directly to their immediate supervisor, the Executive Management or a member of the Board, unless the Code of Conduct directs otherwise. All reports submitted through the whistleblowing mechanism are carefully examined and managed by the function best equipped to address the issue effectively. MPCC provides guidance and support to both whistleblowers and staff receiving reports to ensure their proper handling. Employees are encouraged to seek advice from their supervisor or MPCC’s general counsel for guidance on how to report and handle specific situations. Management and members of staff receiving reports are expected to familiarize themselves with the instructions for handling whistleblowing reports. Training in relation to the processing of whistleblowing reports is provided on an ongoing basis. MPCC has implemented robust measures to safeguard whistle- blowers against retaliation, ensuring they are protected from disciplinary actions, harassment, discrimination, or other adverse consequences related to their reports. Retaliation is explicitly prohibited and includes actions such as threats, demotion, dismissal, or social exclusion. The Company is committed to thoroughly investigating any claims of retaliation and taking appropriate corrective actions to address them, should they occur. Trial runs of the whistleblowing channel 1 Cases reported through the whistleblowing channel 1 Cases assessed as legitimate (according to Code of Conduct) related to corruption or bribery - Comment The anonymous whistleblower reported an incident on MV AS Angelina where cargo operations were ongoing with two crew members "on top of moving crane without proper PPE and safety harness". Case closed. Anti-Corruption Policy The policy lays down the Company's principles with regard to anti- corruption. The policy applies to everyone at the company and its subsidiaries and MPCC expects the policy to be followed by its ship managers, contractors, temporary personnel, and those who act on behalf of or represent it and third-party personnel, throughout the company's supply and value chains. MPCC enforces a zero-tolerance policy for corruption, money laundering, price-fixing, and other anti-competitive behaviors. MPCC strictly prohibits both active and passive corruption, mandates transparency in gift-giving and business expenses, rejects political contributions, and holds agents and representatives accountable for compliance with anti-corruption laws. To uphold these principles, MPCC ensures that employees, contractors, and suppliers are fully aware of its anti-corruption Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 192 192 Sustainability Report | Governance Information Sustainability Report | Governance Information policy and Code of Conduct and expects them to educate their personnel accordingly. The company provides anti-corruption training, conducts due diligence on acquisitions and investments, and complies with all relevant local, national, and international regulations, including the FCPA, UK Bribery Act, and OECD Anti-Bribery Convention. MPCC also implements risk mitigation measures to prevent business partners from engaging in corrupt activities and rejects transactions where money laundering risks cannot be excluded. Business conduct training All employees, including the Executive Management, receive regular mandatory Ethics Policy and compliance training. The training provides comprehensive coverage of critical areas, including anti- corruption, anti-bribery, fair competition, supply chain integrity and reporting mechanisms. MPCC regularly distributes training courses on key topics and critical areas such as anti-bribery, anti-money laundering, and data protection, as well as new and updated policies covering areas like Cyber Security, Antitrust, Anti-Fraud, and Sanctions Compliance. In 2024, two training courses and four new policies were published. This is an average publication frequency of two months and it is planned to maintain at least this frequency in the future. These courses and policies are made available through the online platform MetaCompliance, ensuring employees stay informed and up to date on critical compliance matters. This ongoing initiative will continue with the planned development and rollout of a human rights training course in the first half of 2025, followed by additional courses on business ethics and other essential topics. Looking ahead, in addition to introducing new courses and policies, the company intends to gradually circulate existing policies through MetaCompliance, requiring employees to confirm their understanding. While these policies are already accessible online at any time, the company also plans to develop corresponding training materials and quizzes, where relevant, to ensure employees fully comprehend and adhere to these policies. The objective of the training is threefold: to provide employees with the knowledge and tools necessary to uphold ethical business practices, to ensure they are well-versed in applying these practices in their daily work, and to foster a clear understanding of their responsibilities regarding compliance with laws, regulations, and ethical standards. G1-1 Approach to corporate culture MPCC builds and strengthens its corporate culture by continuously enhancing business conduct, governance, and ethical decision- making. The Company integrates key elements such as whistleblowing mechanisms, supplier relationships, and anti- corruption initiatives to uphold a strong ethical foundation. MPCC promotes its values through mandatory compliance training, open communication, and a zero-tolerance policy for discrimination and harassment. Management fosters a strong culture of ethical business conduct by acting as role models, encouraging transparency in ethical dilemmas, and safeguarding employees who report irregularities against retaliation. The corporate culture is also promoted through a range of policies. In addition to the Code of Conduct, a key policy in this work is the Human Capital Policy. This policy is designed to foster a professional, inclusive, and positive workplace that promotes high employee engagement and personal development, thereby supporting a positive corporate culture. Through these policies, governance frameworks, and training programs, MPCC nurtures a corporate culture rooted in integrity, compliance, and ethical decision-making at every level of the organization. The Company evaluates its corporate culture by continuously updating its policies (as referred to above in the Policies section) to reflect changes in laws and regulations, and by conducting thorough follow-up on all reported irregularities to address concerns effectively. By doing so, MPCC ensures that the Company maintains a workplace based on integrity, inclusivity and accountability. G1-2 Approach to relationship with suppliers MPCC treats all of its suppliers in accordance with the legally binding contract they have with each individual supplier and any relevant laws or regulations. To ensure continuity and quality within its supply chain the Company aims to treat all of its suppliers fairly Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 193 193 Sustainability Report | Governance Information Sustainability Report | Governance Information and transparently. The Company does not have a separate policy governing the payment of suppliers. Approach In the supply chain, the focus area for MPCC is connected to human rights. The Company follows up with suppliers to ensure that they uphold the Company’s zero-tolerance policy for human rights violations and indecent working conditions. MPCC uses the Business Partner Guideline (described in more detail in S2) as a tool to ensure the suppliers operate in accordance with fundamental human rights. MPCC monitors this zero-tolerance policy through technical managers, who conduct supplier audits in cases where there is reasonable and concrete evidence of a potential human rights violation or failure to provide adequate working conditions. If an existing supplier is found to be in violation of the Business Partner Guideline, MPCC has the right to either issue formal warnings or terminate the contract, depending on the individual case. Selection of suppliers In line with MPCC’s Sustainable Procurement Policy (detailed in the policy section above), the Company is committed to prioritizing suppliers that have integrated sustainable and ethical practices within their operations and actively promote these standards throughout their own supply chains. Additionally, the Company aims to identify high-risk areas within its supply chain and engage more closely with suppliers in those areas to drive improvements in environmental performance where they are most needed. To achieve the Company’s sustainable procurement goals, MPCC prioritizes suppliers that align with the ESG policies, ensuring responsible employment, ethical business practices, and fair trade. Suppliers are expected to respect internationally recognized human rights, adopt a precautionary approach to environmental challenges, and actively work to reduce pollutants, GHG emissions, and SO x . Additionally, the Company upholds a zero-tolerance policy for bribery, corruption, money laundering, and anti-competitive behavior, while prioritizing personnel safety over commercial interests. It should be noted that in supplier selection, technical managers typically choose suppliers essential for vessel operations, except in cases of drydocking. Technical managers are required to engage only with suppliers who confirm adherence to MPCC's Business Partner Guideline, ensuring alignment with MPCC’s corporate responsibility standards. This includes compliance with fundamental human rights, as outlined in the United Nations Universal Declaration of Human Rights and ILO standards, as well as strict adherence to MPCC’s ESG policies, which cover areas such as anti-corruption, fraud prevention, antitrust, cybersecurity, environmental protection, health and safety, human rights, ship recycling, and sustainable procurement. Looking ahead, MPCC will audit and engage ship recycling companies to ensure that standards are maintained, and trust is kept between all partners. MPCC expects governance requirements for value chain stakeholders, such as shipyards, to increase with the gradual roll out within the shipping sector of supply chain legislation such as the Norwegian Transparency Act and the Corporate Sustainability Reporting Directive. MPCC closely monitors these developments and has established robust policies and reporting frameworks in compliance with these obligations, including its Ship Recycling Policy and its annually updated Transparency Act Statement. G1- 3 Prevention and detection of corruption and bribery MPCC takes a firm position against corruption in any form, and actively works to prevent, avoid and detect all forms of corruption. The main principles related to corruption and bribery are set out in the Code of Conduct and the Anti-Corruption Policy (see G1-1 above for more information on both policies). The procedures to prevent, detect and address instances of corruption and bribery include strict prohibitions against offering, accepting or requesting improper advantages, managing conflicts of interest, and maintaining transparency in dealings related to gifts, hospitality and donations. All MPCC employees are required to adhere to the Company’s principles for ethical business practices and are not allowed to provide for, request or receive anything that can be deemed a potential bribe or defined as potentially corrupt. They are required to avoid conflicts of interest, report suspicions of corruption through established whistleblowing channels, and to comply with all internal policies governing gifts, hospitality, and donations. MPCC encourages its employees to actively question behavior or decisions that appear unethical or inconsistent with the Code of Conduct and to report any suspicions of corruption or bribery Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 194 194 Sustainability Report | Governance Information Sustainability Report | Governance Information through the established whistleblowing channels (See G1-1 above for more information on the whistleblowing channels available). In addition to its Code of Conduct and the Anti-Corruption Policy, the Company also has an Anti-Fraud Policy in place. Therein the company defines “fraud” as “dishonestly obtaining an advantage, avoiding an obligation or causing a loss to another party” and points out in the policy that the term “fraud”, among others, includes activities such as corruption and bribery. Accordingly, the relevant procedures can be found in the Anti-Fraud Policy. The key findings on procedure state that: MPCC takes all allegations of fraud seriously, regardless of the position, title, or tenure of the individuals involved. All employees are expected to remain vigilant and report any suspected fraudulent activity to management or the Compliance Department. The company will promptly investigate any suspected fraud or dishonest activities affecting MPCC or its business partners and will take appropriate disciplinary or legal action, including termination of employment, restitution, or referral to authorities for prosecution. Additionally, MPCC will record, monitor, and analyze all cases of suspected or confirmed fraud to prevent future occurrences. Employees must report any reasonable concerns regarding fraudulent or corrupt activities involving employees, board members, contractors, vendors, or other associated parties to the Compliance Department, CFO, or CEO. Upon verbal notification of a possible fraud, the Compliance Department must immediately inform the CFO, who will consult the CEO in cases of significant financial loss or potential reputational damage. The Chief Compliance Officer (CCO) maintains a fraud log, documenting all reported suspicions, actions taken, and outcomes. Major incidents are escalated to the CEO as soon as practical. For each investigation, the CEO will appoint a Head of Investigation—typically the Chief Compliance Officer—based on the severity and financial impact of the case. The Head of Investigation is responsible for developing an action plan with clear timeframes and periodic reviews, seeking support from relevant experts such as external auditors, legal advisors, and technical specialists while maintaining overall accountability. The Head of Investigation should have the necessary authority (i.e. the appropriate rank and experience) to enable him/her to properly discharge these duties and should be independent from the matter in question. Following the investigation, a summary report detailing the findings and lessons learned will be circulated to key stakeholders, ensuring that control measures and processes are improved to prevent future fraud. Where fraud has occurred, MPCC will review and strengthen its systems and procedures to minimize the risk of recurrence. The process to report outcomes to administrative, management and supervisory bodies In cases of fraud the relevant investigation process as detailed in the Anti-Fraud Policy involves the following steps: Reporting and Initial Notification: Any suspected fraud must be immediately reported to the Compliance Department. Upon receiving verbal notification, the Compliance Department must inform the CFO, who will escalate the matter to the CEO if the potential loss is significant or if the incident could lead to adverse publicity. Case Logging and Documentation: The Chief Compliance Officer (CCO) maintains a log of all reported suspicions, including minor cases or those not investigated. The log includes details of actions taken and conclusions reached. Significant cases are reported to the CEO as soon as practical. Staff Interviews and Disciplinary Procedures: If an investigation involves an employee, the investigators must consult the HR department for guidance on employment law, company policies, and disciplinary procedures. Disciplinary action will be handled consistently, regardless of the individual’s position or tenure within the company. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 195 195 Sustainability Report | Governance Information Sustainability Report | Governance Information Legal and Disciplinary Actions: Following an investigation, the Board of Directors will determine if legal or disciplinary action is necessary. If no criminal act is found, the CCO, CEO, HR Department, and relevant line manager will assess whether internal disciplinary measures are appropriate. Escalation to Authorities: If initial investigations suggest a criminal act has occurred, the CEO or CFO will immediately contact law enforcement (police or relevant federal agency). The company will follow law enforcement guidance in proceeding with the investigation. The Code of Conduct, Anti-Corruption Policy and Anti-Fraud Policy outlining the procedures for addressing corruption and bribery, is accessible to all employees via the intranet as well as through the Company's website. Employees are required to familiarize themselves with their contents. In addition, anti-corruption and anti- bribery are part of the company's online mandatory training program on business conduct. (See G1-1 for more information) At MPCC, the management team and functions within procurement and contracting are at greatest risk of being targeted for undue influence, corruption or bribery. This includes individuals acting as general managers, purchasing managers, and employees with authority to enter contracts. 100% of functions-at-risk were covered by training programs related to corruption and bribery. The training includes how to identify and act in situations involving corruption, such as being offered private services or kickbacks. Targets MPCC has not established measurable and outcome-oriented targets, but has nevertheless established five qualitative goals to guide the Company’s efforts connected to business conduct going forward: ESG policies to be updated and made available on website Develop and implement ESG digital course for internal and external stakeholders Annual high quality ESG disclosures based on European Sustainability Reporting Standards (ESRS) Identify, assess, integrate and monitor anti-corruption risks Implement annual testing and training of MPCC whistleblower system. G1- 4 Incidents of corruption and bribery There have been no reported incidents of corruption or bribery at MPCC in 2024. Consequently, no employees have been convicted, nor have any fines been levied on the company. As a result, no corrective actions have been necessary. Additionally, no public legal proceedings related to bribery or corruption have been initiated against MPCC, its subsidiaries or its employees during this period. G1-6 Payment practices Throughout 2024, the Company has taken an average of 16 days to pay an invoice from the date when the contractual or statutory term of payment begins. This adheres MPCC’s maximum agreed payment term of 60 days. Most payments are completed within 25 days and 78% of payments are aligned with these standard terms. There are currently no outstanding legal proceedings related to late payments. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 196 196 Sustainability Report | Governance Information Sustainability Report | Governance Information G1 Accounting policies ESRS DR Paragraph(s) Datapoint / metric Accounting principle G1-1 10 c How MPCC protects whistle-blowers All reports are handled following the approved guidelines for managing whistle-blower reports under the Code of Conduct. The company's Chief Compliance Officer (who is also Co-CEO and Chief Financial Officer) holds ultimate responsibility for the implementation of the Code of Conduct and the Whistleblower Hotline. G1-4 – MDR M 77 a Disclosure of methodologies and significant assumptions behind metric As long as there is no indication to the contrary or reason to conduct specific investigations, MPCC assumes that all employees comply with the provisions of its Anti- Corruption Policy and Code of Conduct, which explicitly addresses anti-corruption. The Company is committed to addressing any alleged or confirmed cases of corruption and bribery brought to its attention, regardless of the reporting channel. This includes, but is not limited to, reports received through the whistleblower channel and internal findings. However, in the absence of any indications of bribery or corruption, MPCC recognizes the practical challenges of measuring such occurrences, whether onboard its vessels or onshore. G1-4 24 a Legal action (ESRS wording= Number of convictions for violation of anti- corruption and anti-bribery laws) The number of legal actions initiated during the reporting period regarding anti-competitive behavior and violations of anti-trust and monopoly legislation. ESRS DR Paragraph(s) Datapoint / metric Accounting principle G1-4 24 a Amount of monetary losses Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations G1-4 24 a Number of confirmed incidents of corruption or bribery Determined by number within the reporting year. G1-4 25 b Number of confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery- related incidents Determined by number within the reporting year. G1-4 25 c Number of confirmed incidents relating to contracts with business partners that were terminated or not renewed due to violations related to corruption or bribery Determined by number within the reporting year. G1-6 33 a The average time the undertaking takes to pay an invoice from the date when the contractual or statutory term of payment starts to be calculated, in number of days The Company has not used representative sampling to calculate this average. The data on payment practices has not been validated by an external body other than the assurance provider. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 197 197 Sustainability Report | Governance Information Sustainability Report | Governance Information Green and Sustainable Finance Green Loan Progress Report 199 Sustainability-linked bond progress report 202 Annual and Sustainability Report 2024 198 Sustainability Report | Green and Sustainable Finance MPC Container Ship ASA is committed to shaping a greener future for global shipping. As part of our mission to drive sustainable growth within the maritime industry, we have developed a comprehensive Green- and Sustainable-Linked Finance Framework. The initiatives align with our core values of environmental responsibility and long-term resilience, addressing the urgent need to reduce the carbon footprint of international shipping. Through our Green- and Sustainable-Linked Finance Frameworks we aim to leverage green financing solutions to support eco-friendly innovations, enhance operational efficiency, and advance the decarbonization of our fleet. By investing in cleaner technologies and sustainable practices, we are not only future proofing our operations but also contributing to a more sustainable maritime sector. Green Loan Progress Report A subsidiary of MPCC has entered into a USD 54.5 million term loan facility agreement dated 19 April 2024 with Deutsche Bank covered by SINOSURE credit insurance (Agreement) for its two dual-fuel methanol new built 1,300 TEU container vessels (Project). The Agreement covers pre- and post-delivery funding. Delivery of the first vessel took place in January 2025, with the second vessel scheduled during Q2 2025. They will be employed under 15-year time charter contracts with North Sea Container Line (NCL). The Agreement matures 12 years after delivery in 2037. Notably, the two vessels incorporate dual-fuel engines and are designed to operate on green methanol. In recognition of the environmentally sustainable features of the vessels, the lender has classified this financing as Sustainable Finance, as the funds will be utilized for a project that aligns with the eligibility criteria outlined in Deutsche Bank's own Sustainable Finance Framework. The Project is going to receive significant financial support from Norwegian governmental and industry initiatives aimed at promoting sustainable practices. Specifically, it has been awarded NOK 13.7 million from ENOVA, the Electrification of Maritime Transport program under the Norwegian Ministry of Climate and Environment, subject to evidencing additional cost incurred for the sustainable features of the Project. In accordance with the Green Loan Principles (GLP) developed by the Loan Market Authority (LMA) recommending borrowers to engage external review providers to assess the alignment of their green loan or green loan program with the four core components of the GLP, MPCC has obtained a second party opinion confirming the alignment of the Agreement with the GLP by the American Bureau of Shipping (ABS). Loan overview Item Details Loan Name: Term Loan for Two Dual-Fuel Methanol Newbuildings Borrower: MPCC Greenbox AS (90% owned by MPC Container Ship ASA) Guarantor MPC Container Ships ASA Lender(s): Deutsche Bank AG Signing Date: 19 April 2024 Credit Insurance China Export & Credit Insurance Corporation (Sinosure) Maturity Date: 2037 (12 years after delivery) Total Loan Amount: USD 54.5 million Amount Drawn to Date: USD 15.6million Use of Proceeds: (Partly) fund the contract prices in the relevant building contract (Construction of two 1,300 TEU dual-fuel methanol container vessels with energy-saving and emissions-reducing technologies) Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 199 199 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance Green Loan Allocation Report In line with the GLP and the terms of the Agreement, the proceeds of the USD 54.5 million loan have been exclusively allocated to finance the acquisition costs for the construction of two state-of- the-art dual-fuel methanol feeder vessels. These 1,300 TEU vessels are a cornerstone of MPC Container Ships ASA’s decarbonization strategy and are equipped with a comprehensive suite of energy efficiency and emissions reduction technologies. This section provides a breakdown of how the loan funds have been allocated to construction of the vessels. Breakdown of how loan proceeds have been allocated: Construction milestone NCL VESTLAND NCL NORDLAND Total Description/Activities funded Keel Laying 3,890,000 3,890,000 7,780,000 Vessels are built in a series of pre-fabricated, complete hull sections. Keel laying is the first joining of these sections, or the lowering of the first section into place in the building dock. Launching 3,890,000 3,890,000 7,780,000 The process of transferring a new built vessel from the building dock onto the water. Total 7,780,000 7,780,000 15,560,000 Project Progress & Implementation Update During the reporting period, MPC Container Ships ASA advanced the implementation of the Project. The vessels are being built at Taizhou Sanfu Ship Engineering Co. Ltd. and are designed to meet and exceed stringent environmental performance standards, with state-of-the-art technologies, including methanol dual-fuel engines, battery energy storage, shore power compatibility, and a range of energy efficiency technologies. Key milestones in the construction process of NCL Vestland occurred, with the keel laying completed in January 2024 and the launching in June 2024. The keel laying of NCL Nordland took place in June 2024, with the vessel's launching completed in September 2024. As of Q4 2024, the Project is slightly delayed (first vessel has been delivered in January 2025, the second is expected to be delivered in Q2 2025), with both newbuildings in a final phase of construction. The hull fabrication and structural assembly for both ships have been completed, and core mechanical systems, such as propulsion shaft lines and rudder arrangements, are already installed. Major components of the dual-fuel propulsion system — including the MAN 6S50ME-C9.6LGIM Tier III engines — have been installed, and detailed planning for the integration of the battery packs and shore power interfaces has been finalized. Project timeline NCL Vestland NCL Nordland 2022 2023 2024 2026 milestone 6 7 8 9 10 11 12 1 … 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 Contract signing Refundment Guarantee Steel Cutting Keel laying Launching Delivery / Initial schedule / Expected Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 200 200 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance In Q4 of the reporting period 2024, the project is entering the outfitting and commissioning phase. The remaining steps until delivery include installing and testing the dual-fuel methanol engines, integrating the 250 kWh battery storage systems, connecting shore power interfaces, and completing electrical and navigation outfitting. These activities will be followed by regulatory inspections, sea trials, and the final handover to the owner. Environmental Impact Report As of the end of the reporting period, the two dual-fuel methanol feeder vessels — NCL Vestland and NCL Nordland — have not yet been delivered and are currently in their final stage of construction. Consequently, no operational environmental impact data is available at the end of the reporting period. Nevertheless, both vessels are designed with a strong environmental profile aligned with MPC Container Ships ASA’s decarbonization trajectory and the objectives of the Green Loan Principles. Once in service, the vessels are expected to deliver substantial environmental benefits across multiple impact areas, including: Greenhouse Gas Emissions Reduction: The use of renewable methanol and advanced dual-fuel engines is projected to reduce CO 2 emissions by up to 95%, depending on the feedstock and production pathway of the renewable methanol. Air Pollution Reduction: Emissions of NO x , SO x , and particulate matter (PM) are expected to decrease by up to 80%, 99%, and 95% respectively compared to conventional HFO/MGO fuels. Energy Efficiency: The vessels are designed with an Energy Efficiency Design Index (EEDI) 33.5% below the required threshold, meeting EU Taxonomy criteria and improving fuel efficiency. Port Emissions Reduction: With onboard battery packs and shore power capability, both vessels will be able to operate with zero emissions during port stays where shore power infrastructure is available. Full quantitative environmental impact reporting will commence following vessel delivery and entry into commercial operation. MPC Container Ships ASA will include relevant performance metrics and impact data in future annual green financing and ESG reports, in accordance with its reporting commitments under the Green Loan. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 201 201 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance Sustainability-linked bond progress report In September 2024, MPCC issued a senior unsecured sustainability- linked bond (SLB), reinforcing its commitment to driving sustainability in the shipping industry. This Progress Report provides an update on MPCC’s performance against the defined Sustainability Performance Target (SPT) within the SLB, demonstrating transparency and accountability in meeting its sustainability commitments. The report outlines key developments, actions taken, and the company’s progress towards achieving the environmental objectives embedded in the bond framework. MPCC´s SLB is structured with a clear SPT linked to the Company´s decarbonization strategy, incentivizing measurable progress towards reducing the fleet average greenhouse gas (GHG) intensity in alignment with industry and international regulatory climate goals by the IMO. Performance of KPI As part of MPCC’s SLB, the Company has determined the fleet average Annual Efficiency Ratio (AER) on a well-to-wake basis, as the Key Performance Indicator (KPI) to track its decarbonization progress. The KPI follows the calculation and accounting principles of the GLEC Framework for Logistics Emissions Accounting and Reporting in its 3 rd version. The AER is expressed in grams of CO 2 per deadweight ton-mile (gCO 2 /dwt-nm) and provides a standardized metric to evaluate the carbon intensity of the fleet in relation to the transport work performed. This KPI reflects MPCC’s most material sustainability objective — reducing its greenhouse gas emissions — and is aligned with global climate targets, including the 2023 IMO GHG Strategy and the Paris Agreement. The baseline year for this KPI is 2023, when MPCC recorded a fleet- wide AER of 15.18 gCO 2 /dwt-nm, as validated by the American Bureau of Shipping (ABS). The SPT set within the SLB aims for a 10% reduction in this value by the target year 2028, equating to an average annual reduction of approximately 2% over the five-year period. This chapter as well as Figure 1 highlights the 2024 KPI performance in relation to the baseline and assesses the Company’s progress to achieve the SPT as well as along its decarbonization trajectory. Figure 1: Fleet Average AER on a Well-to-Wake Basis Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 202 202 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance In the first reporting year of the SLB, MPCC has demonstrated measurable progress towards the SPT and its decarbonization target. According to the independent verification conducted by ABS, the fleet-wide Well-to-Wake AER decreased from 15.18 gCO 2 e per tonne-mile in 2023 to 14.60 gCO 2 e per tonne-mile in 2024. This reflects a 3.82% reduction in carbon intensity compared to the baseline year, thereby exceeding the indicative annual reduction trajectory of 2% set out in the SLB. ABS concluded that the KPI performance for 2024 is in alignment with the expectations and requirements of the Sustainability-Linked Finance Framework, affirming MPCC’s commitment to its climate strategy and alignment with the IMO’s decarbonization goals. Explanation of KPI Evolution The positive development of MPCC’s fleet-wide AER between 2023 and 2024 reflects the company’s strategic and ongoing investments in efficiency enhancing measures. Key drivers of the KPI improvement include the intensive retrofit and modernization program across the fleet, focusing on energy-efficiency technologies such as VFD, CJC filters, LED lights and engine upgrades as well as hydrodynamic measures like optimized propellers/boss cap fins, pre swirl devices, new bulbous bows and hull coatings. In parallel, MPCC’s fleet renewal strategy has led to the gradual integration of more modern, fuel- efficient vessels with inherently lower carbon intensity. Additionally, the increased uptake of low greenhouse gas (GHG) fuels, including the use of biofuels and the initial operation of dual-fuel methanol-ready vessels, has further contributed to reducing well-to-wake emissions. Together, these initiatives have enabled MPCC to exceed its indicative annual reduction target and strengthen its trajectory toward achieving the 2028 SPT. Verification Statement Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 203 203 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance Verification Statement Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 204 204 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance Verification Statement Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 205 205 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance Update of Sustainability Strategy MPCC´s Well-to-Wake GHG Emission Intensity Trajectory is a crucial pillar of MPCC´s Sustainability Strategy. In December 2024 MPCC strengthened the Company´s GHG Emission Intensity Trajectory and thereby exceed the ambition level of the International Maritime Organization. MPCC targets to significantly reducing our carbon footprint, with a target to reduce GHG emissions intensity by 45% by 2030 from a 2008 baseline on a well-to-wake basis and to net-zero by 2050, exceeding the IMO carbon intensity trajectory. Revised target In June 2023 the Global Logistics Emission Council (GLEC) published and updated Framework version 3.0 as a comprehensive methodology for calculating greenhouse gas (GHG) emissions across multimodal transport chains. With the updated Framework version 3.0 GLEC provides standardized guidelines to harmonize the measurement and reporting of emissions for freight and logistics activities. It aligns with international protocols, such as the Greenhouse Gas Protocol and the UNFCCC standards, and covers all transport modes, including road, rail, sea, and air. Version 3.0 enhances accuracy by incorporating recent advances in data collection, emission factors, and technological developments, such as electrification and alternative fuels. It also includes improvements to lifecycle assessments, providing a more holistic view of emissions from "well-to-wake” covering both direct and indirect emissions. In 2024 MPCC adopted the GLEC Framework version 3.0. to ensure transparency, comparability, and consistency in the company´s reporting according to the latest standards. ABS as an independent third-party verifier was mandated to recalculate MPCC´s and IMO´s Well-to-Wake GHG Emissions Intensity baseline of 2008 as well as MPCC´s 2023 Well-to-Wake AER performance. During the recalculation ABS determined that the regressed 2008 MPCC Fleet Well-to-Wake AER was 24.28 grams CO 2 e per tonne-mile. In 2024 MPCC has adopted a revised target for fleet average GHG emission intensity, aiming for a 45% reduction by 2030. This calculation aligns with the Well-to-Wake approach and the GLEC Framework version 3.0. The updated target exceeds the International Maritime Organization's (IMO) 2030 GHG emission intensity target by an additional 5%. Positive Sustainability Impacts The achieved 3.82% reduction in MPCC’s fleet average well-to-wake AER from 2023 to 2024 corresponds to a direct decrease in GHG emissions per tonne-mile of cargo transported, thereby lowering the environmental footprint of the company’s shipping operations. This reduction translates into significant amount of absolute GHG emissions avoided across the fleet on an annual basis. By investing in energy-efficiency retrofits, introducing modern low-emission vessels, and supporting the use of renewable fuels, MPCC is actively supporting the transition towards a more sustainable maritime sector. These measures contributing meaningfully to the achievement of international climate targets and Sustainable Development Goal 13. Re-assessments of KPI As part of the 2024 progress reporting process, MPCC conducted a reassessment of the defined KPI —fleet average well-to-wake AER — to ensure its continued relevance and robustness. This review confirmed that the KPI remains closely aligned with MPCC’s long- term decarbonization strategy and reflects a material, measurable, and impactful sustainability objective. The reassessment also considered regulatory developments, such as the IMO’s revised GHG Strategy and evolving market expectations around climate performance. Based on this review, MPCC concluded that no adjustments to the KPI or the Sustainability Performance Target are necessary at this time, as the metric continues to be both ambitious and achievable within the existing framework. Annual and Sustainability Report 2024 Annual and Sustainability Report 2024 206 206 Sustainability Report | Green and Sustainable Finance Sustainability Report | Green and Sustainable Finance artbo x.no MPC Container Ships ASA Ruseløkkveien 34, 0251 Oslo PO Box 1251 Vika NO-0111 Oslo, Norway Registered enterprise no. 918 494 316 www.mpc-container .com artbo x.no 213800MXS7CXYJ2Q18052024-01-012024-12-31213800MXS7CXYJ2Q18052023-01-012023-12-31213800MXS7CXYJ2Q18052024-12-31213800MXS7CXYJ2Q18052023-12-31213800MXS7CXYJ2Q18052023-12-31ifrs-full:IssuedCapitalMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:IssuedCapitalMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:IssuedCapitalMember213800MXS7CXYJ2Q18052023-12-31ifrs-full:SharePremiumMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:SharePremiumMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:SharePremiumMember213800MXS7CXYJ2Q18052023-12-31ifrs-full:AdditionalPaidinCapitalMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:AdditionalPaidinCapitalMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:AdditionalPaidinCapitalMember213800MXS7CXYJ2Q18052023-12-31ifrs-full:RetainedEarningsMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:RetainedEarningsMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:RetainedEarningsMember213800MXS7CXYJ2Q18052023-12-31ifrs-full:OtherReservesMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:OtherReservesMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:OtherReservesMember213800MXS7CXYJ2Q18052023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800MXS7CXYJ2Q18052023-12-31ifrs-full:NoncontrollingInterestsMember213800MXS7CXYJ2Q18052024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember213800MXS7CXYJ2Q18052024-12-31ifrs-full:NoncontrollingInterestsMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:IssuedCapitalMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:IssuedCapitalMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:SharePremiumMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:SharePremiumMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:AdditionalPaidinCapitalMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:AdditionalPaidinCapitalMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:RetainedEarningsMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:RetainedEarningsMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:OtherReservesMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:OtherReservesMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800MXS7CXYJ2Q18052022-12-31ifrs-full:NoncontrollingInterestsMember213800MXS7CXYJ2Q18052023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember213800MXS7CXYJ2Q18052022-12-31iso4217:USDiso4217:USDxbrli:shares

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