Ernst Russ : Half-Year Report 2021 (druckoptimierter Halbjahresbericht 2021 in engl. Sprache)

ERNST RUSS AG

2021 HALF-YEAR REPORT

TABLE OF CONTENTS

Ernst Russ AG  |  Half-Year Report 2021

CONTENTS

Introduction by the Executive Board	4
Share and Investor Relations	6
1.	INTERIM GROUP MANAGEMENT REPORT	10
1.1.	Foundations of the Group	11
I.	Business Operations	11
II.	Economic Report	13
1.2.	Assets, Financial Position and Earnings of the ER Group	15
I.	Assets	15
II.	Financial Position	18
III.	Earnings	19
1.3.	Opportunities and Risks	22
I.	Opportunities	22
II.	Risks	22
1.4.	Forecast	22
2.	INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF ERNST RUSS AG	24
3.	CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF ERNST RUSS AG	30

Half-Year Report 2021 | Ernst Russ AG

KEY FIGURES

KEY FIGURES

EARNINGS	UNIT			1/1 - 30/6/2021		1/1 - 30/6/2020		CHANGE IN %
Revenue	EUR million		39.6		28.9	37.0
Operating earnings*	EUR million		8.6		1.8	> 100.0
Earnings before taxes (EBT)	EUR million		7.1		1.9	> 100.0
Consolidated net income after	EUR million			4.4		1.8	> 100.0
non-controlling interests
* Determined in accordance with economic criteria
BALANCE SHEET	UNIT		30/6/2021		31/12/2020		CHANGE IN %
Total equity and liabilities	EUR million		173.7		163.4	6.3
Ship assets shown on the balance sheet**	EUR million		128.0		119.7	6.9
Equity	EUR million		89.2		80.1	11.4
Equity ratio	%		51.3		49.0		2.3 percentage points
Cash at hand and bank balances	EUR million		19.5		9.2	> 100.0
** Including down payments made and assets in the course of construction
EMPLOYEES	UNIT			1/1 - 30/6/2021		1/1 - 30/6/2020		CHANGE IN %
Average employee capacity	Full-time equivalent		46		66	-30.3
Personnel expenses	EUR million		2.7		3.8	-28.9
Personnel expense ratio	%		6.8		13.1		6.3 percentage points

KEY FIGURES SPECIFIC TO VESSELS				UNIT		30/6/2021		31/12/2020		CHANGE
Number of fully consolidated vessels						18		16		+ 2 vessels
Capacity				TEU		37,173		37,173	-
Capacity				DWT		553,813		528,813		+ 25,000 DWT
				UNIT			1/1 - 30/6/2021		1/1 - 30/6/2020		CHANGE IN %
Average charter rate				USD/day		12,930		8,643	49.6
Technical availability	%		98.00%		97.80%		0.2 percentage points
Employment ratio	%		98.00%		95.10%		2.9 percentage points

SHARE		UNIT			1/1 - 30/6/2021		1/1 - 30/6/2020		CHANGE IN EUR
Earnings per share (undiluted)		EUR		0.14		0.05	0.09
Earnings per share (diluted)		EUR		0.14		0.05	0.09

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INTRODUCTION BY THE EXECUTIVE BOARD

Ernst Russ AG  | Half-Year Report 2021

INTRODUCTION BY THE

EXECUTIVE BOARD

Dear shareholders and

business partners of Ernst Russ AG,

The last year and a half has been characterised across the world by the spread of the COVID-19 pandemic and its socio-political and economic consequences. The outlook is now more positive as vaccination rates progress, but the spread of the Delta variant and the long-term consequences of the pandemic will have a lasting impact on both life and the economy.

There have been clear positive trends in the inter­ national shipping markets since the end of 2020, from which we, as an internationally operating ship-owner, have benefited directly. The change in consumer behaviour in response to the COVID-19 pandemic, significant congestion, especially off US ports as well as the closure of Asian terminals, and not least the incident involving the 'Ever Given' in the Suez Canal have driven up charter rates. We do not expect this market environment to change in the short term.

In the first six months of the year, the Ernst Russ Group expanded its fully consolidated fleet by two multi-purpose vessels. 18 vessels are now included in the Group's scope of consolidation. The ER Group also holds significant interests in twelve other vessels.

The employment concept for the Ernst Russ Group fleet is geared to the sustainable securing of income in the long term. In the very positive economic environment, we were able to secure new charters for eight vessels in our fleet in the first six months of 2021 at very attractive rates and terms. Revenue averaged USD 12,930/day over the first six months of the year. This corresponds to an increase of 49.6% year-on-year. The charter agreements for a further four vessels are due to expire in Q4 2021 and therefore in the current financial year, and consequently we are expecting charter agreements to be reached for these vessels at the currently historically high market level as well.

The rise in charter rates is also reflected in the business figures for the first half of 2021: An increase in revenue

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Half-Year Report 2021 | Ernst Russ AG

INTRODUCTION BY THE EXECUTIVE BOARD

of 37% from EUR 28.9 million to EUR 39.6 million, alongside a reduction in personnel expenses, has led to EBT rising from EUR 1.9 million to EUR 7.1 million. Cash and cash equivalents more than doubled to EUR 19.5 million compared with 31 December 2020. Ship assets were up EUR 8.3 million to EUR 128.0 million due to the acquisition of the two multi-purpose vessels. The equity ratio was 51.3% (31 December 2020: 49.0%).

In light of the ongoing positive trends in the shipping markets and the largely secure employment situation of our fleet for the 2021 financial year, we have also been able to firm up our forecast to the effect that we expect revenue for the whole year 2021 ranging between EUR 85.0 and EUR 90.0 million and an operating result (EBIT) between EUR 24.0 and 26.0 million (EUR 2.3 million in 2020 financial year).

The performance of our share price was also very encouraging at the end of 2020. Our aim is still to increase the value of the share on a permanent basis and thus boost your investment in Ernst Russ AG.

I would like to thank all the employees of the Ernst Russ Group for their commitment. I would also like to thank the Supervisory Board for its close and constructive co- operation.

With very best wishes - stay healthy!

Robert Gärtner

CEO of Ernst Russ AG

Hamburg, 23 August 2021

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