Luka Koper d d : Annual and sustainability report 2021 (the file does not meet the requirements of the transparency directive and is not considered compliant with the ESEF regulation)

Annual report 2021

Luka Koper Group and Luka Koper, d. d.

Statement of Management's Responsibility

The Management Board of Luka Koper, d. d., is responsible for the preparation of the Annual Report hereof, including the financial statements and notes thereto, that give a true and fair view of the financial position of Luka Koper, d. d. and the Luka Koper Group as of 31 December 2021 and of their financial performance for the year then ended.

The Management Board confirms that the Annual Report for the Luka Koper Group and Luka Koper, d. d. for 2021 with all its component parts: Management Report, Sustainability Report, Accounting Report, including the Corporate Governance Statement, has been devised and published pursuant to the legislation in force and International Financial Reporting Standards.

The Management Board confirms that accounting policies were consistently applied and that the accounting judgements were made under the principle of prudence and due diligence of a good manager.

Members of the Management Board:

The Management Board further confirms that the financial statements of the Company and the Group have been compiled under the assumption of a going concern of the parent and its subsidiaries and in accordance with the applicable legislation and International Financial Reporting Standards as adopted by the EU.

The Tax Authorities may, at any time within a period of 5 years after the end of the year for which tax assessment was due, carry out an audit of the Company operations, which may lead to assessment of additional tax liabilities, default interest, and penalties with regards to corporate income tax or other taxes and duties. The Management Board is not aware of any circumstances that could give rise to any significant liability on this account.

The Management Board is responsible for adopting measures to secure the assets of Luka Koper, d. d. and the Luka Koper Group, and to prevent and detect fraud and other irregularities and/or illegal acts.

Boštjan Napast	Robert Rožac	Vojko Rotar
President of the Management Board	Member of the Management Board	Member of the Management Board -
		Worker Director

Koper, 31 March 2022

Contents

BUSINESS REPORT	4
1 Business performance highlights of the Luka Koper Group in 2021	5
2 Letter of the President of the Management Board	12
3 Report of the Supervisory Board for 2021	14
4 Corporate Governance Statement	19
5 Survey of relevant events, novelties and achievements in 2021	38
6 Relevant events after the end of the financial year	39
7 Presentation of the Luka Koper Group and a description of the business model	40
8 Business development strategy	44
9 Economic environment and market position	48
10 Performance of the Luka Koper Group in 2021	49
11	Investments in non-financial assets	55
12 European projects	57
13 A look ahead	58
14 Managing risks and opportunities	63
15 The LKPG Share	68
SUSTAINABILITY REPORT	73
16 On the Sustainability Report	74
17 Luka Koper and sustainable development guidelines	80
18 Stakeholders of Luka Koper	83
19	Materiality matrix	87
20	Corporate integrity, human rights, prevention of corruption and compliance	90
21 Safe and healthy port environment	97
22 Care for employees	106
23	Long-term sustainability of the natural environment	116
24 Social environment	163
25	Sustainable relationship with suppliers	165
26 Sustainable relationship with customers	167
27 GRI content index (according to 2016 standards)	168
FINANCIAL STATEMENTS	180
28 Financial statements of Luka Koper, d. d. and Luka Koper Group	181
29 Notes to Financial Statements	187
30	Summary of significant accounting policies and disclosures	189
31 Additional Notes to the Income Statement	200
32	Additional Notes to the Statement of Financial Position	206
33 Statement of Accumulated Profit	252
34	Relevant events after the end of the financial year	253
35 Independent Auditor's Report	254

BUSINESS REPORT

Business performance highlights of the Luka Koper Group in 2021 | 5

1 Business performance highlights of the Luka Koper Group in 20211

The COVID-19 pandemic hit the world economy hard in

2020 and 2021. In 2021, there was a gradual recovery and strengthening of economic activity in the international environment, which also affected the good business results of the Luka Koper Group, although the emergence of a new version of the virus in the late 2021 increased financial market volatility and halted wider recovery. The financial indicators of the Luka Koper Group achieved in 2021 are better than planned, but compared to those achieved in 2020, they

are slightly lower due to one-off events recognised among other revenues that positively affected the business results in 2020. At the same time, maritime throughput in 2021 exceeded the planned 2021 volumes by one percent, and the 2020 throughput by seven percent. The company exceeded or reached the planned quantities or the 2020 throughput in

almost all commodity groups. At the end of 2021, the container terminal set a new annual historical record in container throughput of 997,574 container units (TEUs), thus exceeding the previous record value from 2018, which was 988,501 container units (TEUs). Car throughput exceeded both the plan for 2021 and the volume achieved in 2020, despite instabilities in the automotive market due to the pandemic and the lack of automotive semiconductors and other components, leading to occasional production downtime. The throughput of dry bulk and bulk cargoes was also higher, particularly due to increased throughput of common table salt and iron ore. Compared to the plan, only the throughput of liquid cargo decreased in 2021, mainly due to lower air passenger traffic and lower volume of throughput of petroleum products due to the effects of the COVID-19 pandemic.

1 GRI GS 102-7