Waberer International : 2023 FOURTH QUARTER AND ANNUAL FINANCIAL REPORT

2023 FOURTH QUARTER AND ANNUAL FINANCIAL REPORT

Another record annual and solid quarterly EBIT performance at consolidated level

Executive summary:

• On a consolidated basis, the Group achieved a record annual EBIT performance of EUR 42.8 million (+17%), driven by the improved and also record performance of the higher margin Contract Logistics and Insurance segments, each in line with their strategic objectives, while the ITS segment approached the previous year's EBIT performance.
• Group revenue reached EUR 711 million, up 4.6% year-on-year, also driven by the higher profitability contract logistics (+5.2%) and insurance (+17.7%) segments.
• EBIT for the last quarter of 2023 amounted to EUR 9.3 million, a decrease of EUR 2.7 million due to positive one-off effects totaling EUR 8 million in the base period (Q4 2022).
• The annual EBIT performance of the International Transportation and Freight Forwarding segment (ITS) amounted to EUR 8.9 million. Although the economic stagnation at European level has generated strong price pressure in the spot freight market, the impact of shorter-term price fluctuations on earnings is more limited due to the high share of key account customers. Conversely, the key account customer portfolio provided stable volume demand during the financial year, resulting in an annual performance for the segment of only EUR 1 million below the 2022 figure. The segment was also able to increase the efficiency of its freight forwarding activities, i.e. those carried out by subcontractors, in line with the objectives set out in the segment strategy. The segment's quarterly EBIT was EUR 3.7 million.
• The contract logistics segment (RCL) achieved an EBIT of EUR 15.3 million in 2023, the segment's highest ever EBIT result and an annual growth of EUR 4.2 million (+37.3%). The largest contributors to the growth in EBIT were the automotive logistics business and the petrochemical production support logistics business, which is new to our portfolio. From 2024, our services will be complemented by logistics activities supporting waste management, further diversifying the segment's performance.
• The Insurance segment achieved an annual EBIT result of EUR 18.6 million (+19%), the highest EBIT result in the segment's history, similarly to RCL. The segment was able to grow its contract portfolio by 22% during the financial year, while the increasing EBIT performance was mainly driven by an outstanding investment performance in a high interest rate environment. The segment's quarterly result was EUR 4.4 million. The insurer has recently prepared and implemented the change of the company's name to Gránit Biztosító and has also entered into strategic agreements with Gránit Bank, MOL and Vodafone to expand its distribution channels, thus providing the basis for further successful diversification of the business.
• In the Q4 quarter, the company adopted and published the Group's strategy up to 2027 and also adopted the Group's new ESG strategy, which forms an integral part of the Waberer's Group's ability to meet the needs of our customers with a zero or near-zero environmental footprint for all types of logistics services.
• For 2024, management expects consolidated revenue of close to EUR 800 million and an EBIT performance of over EUR 40 million, similarly to 2023.

Quarterly and cumulative consolidated revenue and EBIT (EUR million):

Zsolt Barna, Chairman & CEO of WABERER'S INTERNATIONAL Nyrt. commented on the 2023 fourth quarter and annual results: "The year 2023 has been a very eventful one for the Waberer's Group. Industrial production and consumption data in Western Europe and Hungary, our main markets, remained stagnant or even slightly declined throughout the year, directly affecting demand for logistics services, while the Hungarian insurance market had to deal with the challenges of the additional insurance tax. In terms of operations management, the main challenge for us throughout the year has therefore been to identify those segments and customers in the market that are less affected by the general negative economic environment, based on our diversified customer and service portfolio, and to allocate our logistics infrastructure towards these customers with the appropriate efficiency. As a result of our work, we were able to increase Group sales by almost 5% in 2023 and our annual EBIT generation capacity increased to €42.8 million, the highest in the history of the Waberer's Group, which I am particularly proud of. The continuous improvement in our income generation capacity has enabled us to distribute our results to our shareholders in the form of dividends for the first time in 2023, since our listing on the stock exchange and we plan to continue this in 2024, as proposed by the Board of Directors.

In 2023, we updated the Waberer's Group's medium-term business and ESG strategy, which will guide our activities in the coming years. Based on the strategy, we aim to grow the Waberer's Group into the leading complex logistics provider in the Central and Eastern European region, which we expect to deliver significant income growth. We have already taken significant steps to implement the strategy in 2023 with the development of the largest warehouse in Waberer's' history on the outskirts of Budapest and the purchase of land in Debrecen to develop a new logistics centre. In addition, a sale and purchase agreement was signed for the acquisition of a majority stake in PSP (Petrolsped) Group, a major player in rail logistics, and the Serbian distribution company MDI. The first results of these actions will be visible as early as 2024. We plan to continue on the path we have started in 2024, and I am confident that our investors will appreciate the results we have achieved, so that Waberer's shares can remain an attractive investment opportunity in 2024."

I Key figures1, 3 (EUR mn unless otherwise stated)

Q4 2023	Q4 2022	Better
(worse)

Revenue	183.7	172.7		6.4%
EBITDA	23.1	24.3		(5.0%)
EBIT	9.3	12.1		(22.6%)
Net income	3.7	11.0		(66.3%)
EBITDA margin	12.6%	14.1%		(1.5 pp)
EBIT margin	5.1%	7.0%		(1.9 pp)
Net income margin	2.0%	6.3%		(4.3 pp)
Net financial indebtedness2	214.2	150.0		43%
Net leverage ratio2
2.2	1.8		24%

12M 2023	12M 2022		Better
	(worse)
710.9	679.4		4.6%
95.6	83.3		14.8%
42.8	36.6		17.0%
29.7	19.3		53.6%
13.4%	12.3%		1.2 pp
6.0%	5.4%		0.6 pp
4.2%	2.8%		1.3 pp

1 For the definitions of non-IFRS measures, please refer to the Glossary on page 14. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

2 As of end of the period

3This report may contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, the Annual Report 2022 dated 18 April 2023, which is available on our website for investors at https://waberers.com/files/document/document/1761/WI_2023_eves_jelentes.pdf

Summary of major financials:

Revenue in 2023 was EUR 710.9 million, an increase of 4.6% compared to 2022. The RCL segment's revenue was EUR 209.8 million, up 5.2%, the insurance segment's revenue increased to EUR 82.4 million (+17.7%), while our International Transportation and Freight Forwarding segment managed to increase its revenue by 2.8% to EUR 437.3 million, despite falling fuel prices and pressure on the spot market. In order, the segments' quarterly revenues were ITS: EUR 113.6 million (+1.6%), RCL: EUR 55.4 million (+13%) and Insurance: EUR 21.9 million (+30.8%)

Consolidated EBIT in 2023 reached a record EUR 42.8 million, an increase of 17% compared to 2022. The RCL segment, which provides complex logistics services, contributed EUR 4.2 million and the Insurance segment EUR 3 million to the improved EBIT performance, which offset a slight decrease of EUR 1 million in the EBIT of the International Transportation and Freight Forwarding segment (ITS). Consolidated quarterly EBIT amounted to EUR 9.3 million. Segment EBIT figures at quarterly level were as follows: ITS segment EUR 3.7 million, RCL segment EUR 1.3 million, Insurance segment EUR 4.4 million, corresponding to year-on-year changes of EUR -3 million, EUR +1.3 million and EUR -1.1 million respectively. The change in the quarterly results compared to the last quarter of the previous year was influenced by positive one-off effects supporting 2022 as the base period for a total amount of EUR 8 million, which improved the results of the ITS and Insurance segments in Q4 2022.

The Group's annual net income was EUR 29.7 million, an increase of EUR 10.4 million. The increase is due to the improved profitability of the core business and the favourable trend in foreign exchange rates, which offset higher interest costs and an increase in tax liabilities, some of which include one-off negative effects. The Group's net income for the last quarter was EUR 3.7 million.

Net debt reached EUR 214.2 million at 31 December 2023, an increase of EUR 64.2 million compared to the end of 2022. The increase in net debt is mainly due to the increase in lease liabilities (EUR +43 million) for fleet renewal and fleet replacement (with a slight increase in fleet size) and the Group's investments of EUR 38 million, mainly related to the development of the Ecser warehouse, partly offset by the Group's cash generating capacity. The Group's net leverage ratio remained stable at 2.2 times 12-month EBITDA.

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

2

Management Report

Group result

|Income Statement1 (EUR mn)

Q4 2023

Q4 2022

Better (worse)

12M 2023 12M 2022

Better (worse)

Revenue		183.7	172.7		6.4%				710.9	679.4		4.6%
Gross profit	21.1	20.8		1.6%			89.7	85.6		4.8%
of which: excluding Gross profit before
34.8	33.0		5.6%		142.5	132.3		7.7%
depreciation and amortisation
Operating Income		9.3	12.1		(22.6%)			42.8	36.6		17.0%
Financial result		(0.2)	0.5		(136.2%)			(4.0)	(11.4)		64.7%
of which: non-cash FX effect	3.1	2.5		24.8%			6.5	(4.0)		264.6%
Taxes		(5.5)	(1.6)		(239.4%)			(9.1)	(5.8)		(55.5%)
Net income		3.7	11.0		(66.3%)			29.7	19.3		53.6%
Net income excluding non-cash FX effect		0.6	8.5		(92.7%)				23.1	23.3		(0.7%)
Non-recurring items		-	-						-	-
EBITDA		23.1	24.3		(5.0%)				95.6	83.3		14.8%
EBIT	9.3	12.1		(22.6%)		42.8	36.6		17.0%
Gross margin	19.0%	19.1%		(0.1 pp)			20.0%	19.5%		0.6 pp
EBITDA margin	12.6%	14.1%		(1.5 pp)			13.4%	12.3%		1.2 pp
EBIT margin	5.1%	7.0%		(1.9 pp)			6.0%	5.4%		0.6 pp
Net income margin	2.0%	6.3%		(4.3 pp)			4.2%	2.8%		1.3 pp
Average number of trucks	2 941	2 772		6.1%			2 891	2 775		4.2%
Average number of employees	6 084	5 915		2.9%			6 044	5 816		3.9%
Average number of truck drivers	3 694	3 554		3.9%			3 681	3 464		6.3%

1 Figures adjusted for better comparability, re-categorising the effect of insurance-related provisions, an OPEX item, as Direct Costs. EBITDA is not affected. For exact figures on the effect on the re-categorisation, please refer to page 10.

Economic environment2

In the fourth quarter of 2023, industrial production in the Western European countries relevant for Waberer's declined by an average of 1.3% year-on-year, mainly due to declines in Germany and Italy, where the decline was 4.1% and 2.0% respectively. This was partially offset by increases in France and the United Kingdom, which reached 1.2% and 0.1% respectively. In the Eastern European countries of relevance to Waberer's, the average decline was 1.9%, with Hungary contributing 5.6% and Poland 0.9%.

The change in the retail sales of non-food products in the relevant Western and Eastern European countries shows a slight decline compared to industrial production. The average decline in Western Europe is 0.5%, largely offset by the positive performance of Spain, which reached 5.4% over the period, while Germany, France, Italy and UK recorded declines of 1.0%, 0.7%, 2.7% and 1.5% respectively. In Eastern Europe, the average decrease was 0.3%, of which Poland recorded an increase of 0.6% and Hungary a decrease of 4.0%.

| Revenue (top) and recurring EBIT (bottom) split by segments in Q4 2023 (EUR mn)

ITS RCL Other

21.9

55.4

113.6

3.7

4.4

1.3

2 Source: Eurostat &UK Office for National Statistics seasonally and calendar day adjusted data for the Eurozone, UK and Hungary. Percentage figures denote the change compared to the same period in the previous year. Figured for March 2023 was not available at the time of the publication of current report.

Notes: Revenue not filtered for inter-segment

eliminations. ITS: International Transportation

Segment; RCL: Regional Contract Logistics segment;

Other: All other activities including mainly 3rd party insurance services.

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

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Revenue

The Group's revenue in the fourth quarter of 2023 reached EUR 183.7 million, 6.4% higher than the consolidated revenue in the same period of the previous year. Consolidated revenue for the full financial year was EUR 710.9 million, an increase of 4.6% compared to the previous year.

Compared to the fourth quarter of the previous year, the International Transportation and Freight Forwarding (ITS) segment revenue increased by 1.6% to EUR 113.6 million, while full-year segment revenue was EUR 437.3 million, an increase of 2.8%. Contract Logistics (RCL) segment revenue reached EUR 55.4 million in the last quarter of 2023, up 13.0%, while the segment's 2023 annual revenue was EUR 209.8 million, up 5.2%. Finally, the Insurance segment's fourth quarter 2023 revenue increased by 30.8% on a year-on-year basis, corresponding to segment revenue of EUR 21.9 million, while total annual segment revenue reached EUR 82.4 million, with a 17.7% increase.

The ITS segment's revenue growth was mainly driven by an increase in revenue from freight forwarding activities, i.e. activities performed by subcontractors, while revenue from own fleet transport activities remained the same as in the previous year. The automatic downward impact on revenue of lower fuel prices was offset by a slight increase in fleet size and an improvement in net price levels, excluding the impact of fuel and tolls. The RCL segment's revenue growth was mainly due to the expansion of automotive and chemical manufacturing support logistics activities and the impact of successful customer acquisitions, with domestic distribution revenue matching the previous year's revenue and warehousing slightly increasing in 2023. The Insurance segment's quarterly revenue in HUF, which is the base currency for settlements with customers, increased by 21.4%, while revenue for the full year 2023 increased by 14.9%, corresponding to an annual growth of 30.8% and 17.7% in EUR terms, due to the appreciation of HUF against EUR, mainly driven by the growth in the contract portfolio.

Headcount

The average number of employees in 2023 was 6 044, an increase of 228 compared to 2022. On a quarterly basis, the average number of employees increased by 169 compared to the same period last year and by 7 compared to the previous quarter. The increase in the number of employees is mainly due to the higher number of drivers (+217). In the fourth quarter of 2023, the average number of employees at Group level was 6 084, of which the Group employed 3 694 drivers. The increase in the number of drivers compared to Q4 2022 is mainly due to the higher number of drivers in the ITS segment (+153 drivers). The number of drivers required for stable operations is currently available to the Company and the efficient utilisation of the fleet is not affected by a shortage of drivers.

Gross profit, EBITDA and EBIT

Gross profit for 2023 reached EUR 142.5 million, an increase of 7.7%, while in the fourth quarter, gross profit excluding depreciation and amortisation increased by EUR 1.8 million year-on-year to EUR 34.8 million. The annual gross profit margin reached 20%, while for the quarter it was 19.0%, in line with the same period of the previous year. In Q4 2023, the ITS segment gross profit, excluding depreciation, reached EUR 22.1 million, an improvement of EUR 9.2 million, with a gross profit margin of 19.4%, while the full year gross profit was EUR 78.4 million, an increase of 21.3%. The RCL segment gross profit was EUR 11.7 million in Q4 2023, and EUR 54.2 million on a yearly basis, as a result of a quarterly decrease of EUR 4.0 million and an annual increase of EUR 0.8 million, while the segment's gross profit margin for the quarter was 21.1%. The Insurance segment's quarterly gross profit was EUR 5.8 million, while its annual gross profit was EUR 17.4 million, corresponding to a quarterly gross profit margin of 26.4%.

The Group's annual EBITDA for the period reached €95.6 million, up 14.8%, while the fourth quarter figure was €23.1 million, down 5% compared to the same period in 2022. The EBITDA margin for the quarter was 12.6%, while the Company achieved an EBITDA margin of 13.4% on an annual basis. On a consolidated basis, direct costs increased by 6.6% in the quarter, to EUR 9.2 million, compared to Q4 last year, excluding depreciation and amortization expenses. The increase was mainly due to a 15% increase in direct labour costs (i.e. driver and warehouse staff costs) and a 20% increase in transit related costs, while fuel costs decreased by 9% on a year/year basis. The decrease in fuel costs was due to the impact of the change in fuel prices, while the increase in toll-related costs was partly the result of a slight increase in the ITS fleet and thus in kilometres covered, as well as the impact of higher tolls in Hungary and Germany during the quarter and the change in route portfolio in early autumn. The Group's indirect cost level in Q4 was EUR 3.1 million higher than in the same period of the previous year. 2022 Q4 as a base period was supported by the following one-off positive items totalling EUR 8 million: (I) the part of the government subsidy awarded in 2020 booked at year-end (ITS segment), (II) the sale of the energy savings quota available through fleet consumption savings in the EEO1 scheme (ITS and RCL segments), (III) the restatement of the 2022 result of the Insurance segment due to IFRS17.

The ITS segment generated an EBITDA of EUR 13.3 million in Q4 2023, a decrease of EUR 1.5 million compared to the same period last year, while the segment's annual EBITDA was EUR 45.9 million, an increase of EUR 4.3 million on a year-on-year basis. Quarterly EBITDA for the RCL segment was EUR 5.4 million (an increase of EUR 1.4 million), while segment 2023 EBITDA was EUR 30.8 million (an increase of EUR 5.0 million), while the Insurance segment generated EUR 4.4 million EBITDA on a quarterly basis as a result of a EUR 1.1 million decrease, while for the full financial year the segment generated EUR 18.9 million, an increase of EUR 3.0 million.

Recurring EBIT for the full 2023 financial year was EUR 42.8 million, an increase of EUR 6.2 million on a year-on-year basis. EBIT for the fourth quarter of 2023 was EUR 9.3 million, a decrease of EUR 2.7 million compared to the same period in 2022, due to one-off positive items supporting the base period. The full year EBIT margin is 6%, while the quarterly EBIT margin is 5.1%. The Group's depreciation expense increased by 12.3% in the last quarter and by 13.1% for the full year compared to the same period last year, mainly due to the 2% increase in fleet size and higher depreciation expense on a pro-rata basis for higher value assets added to the fleet during the fleet replacement. In the fourth quarter of 2023, the ITS segment's EBIT was EUR 3.7 million, while in 2023 the segment generated EBIT of EUR 8.9 million, down by EUR 3.0 million and EUR 1.0 million respectively compared to the same period last year. The RCL segment generated an EBIT of EUR 1.3 million on a quarterly basis, while for the full financial year the segment EBIT was EUR 15.3 million, as a result of an increase of EUR 1.3 million and EUR 4.2 million respectively. The Insurance segment generated an EBIT of EUR 4.4 million for the quarter and EUR 18.6 million for the year, a decrease of EUR 1.1 million for the quarter and an increase of EUR 3.0 million for the year compared to the previous year.

1 Energy Efficiency Obligation Scheme

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

4

Net income

The financial result showed a loss of EUR 0.2 million in the fourth quarter of 2023, an increase of EUR 0.7 million compared to the same period last year. The financial result for the full year 2023 was EUR -4.0 million, an improvement of EUR 7.4 million compared to 2022. The financial result mainly includes interest costs related to fleet leasing and the bond issued in April 2022, interest income on financial investments not related to insurance activities and other financial impacts, mainly non-realised non- cash effects from exchange rate movements. The year-on-year improvement in the financial result is mainly due to the non- realised non-cash impact of the strengthening of the HUF against the EUR (2023: EUR 6.5 million, 2022: EUR -4.0 million result). As a result of the change in the financing environment, interest costs related to fleet financing increased by EUR 1.0 million in the fourth quarter of 2023 and by EUR 4.7 million on an annual basis.

Tax-relatedexpenditure, which includes corporate income tax, revenue-based local taxes and non-cash deferred taxes, amounted to EUR 5.5 million in the quarter (a deterioration of EUR 3.9 million compared to the previous year) and EUR 9.1 million for the full financial year (a deterioration of EUR 3.2 million compared to the same period last year). The year-on-year increase is mainly due to the increase in the tax base due to improved profit generation, the change in deferred tax and the one-off corporate tax, local business tax and innovation contribution payment liability resulting from the transition to IFRS17, which were mainly booked in the last quarter (+3.3 million EUR).

The recurring net income in 2023 at Group level was EUR 29.7 million, an improvement of EUR 10.4 million on a year-on-year basis, while at quarterly level it reached EUR 3.7 million, EUR 7.3 million lower than in the same period of 2022. The unrealised non-cash impact of the change in the EUR/HUF exchange rate, i.e. from the revaluation of liabilities, was EUR 3.1 million at quarterly level (+EUR 0.6 million on a year-on-year basis), while for the full year this impact was EUR 6.5 million (+EUR 10.5 million). Earnings per share for the quarter were EUR 0.19, while for the full year they were EUR 1.69 in 2023.

Group cash flow, debt, equity

Cash flow

| Cash flow statement (EUR mn)

				Q4 2023			Q4 2022		12M 2023			12M 2022
Net cash flows from operations			31.4		17.5				99.9			26.8
of which: change in working capital		6.4		(16.7)				45.2			(55.1)
Net cash flows from investing and financing activities		(23.3)			(32.4)					(123.0)			5.0
Change in cash and cash equivalents		8.1		(14.9)				(23.1)			31.8
Free cash flow			8.0		9.1				16.9			32.1
CAPEX			(2.8)
	(12.3)					(38.4)			(19.4)

During the fourth quarter of 2023, cash flows from operating activities amounted to EUR 31.4 million, of which EUR 6.4 million was due to a decrease in working capital financing needs, while for the year the cash flows from operating activities amounted to EUR 99.9 million, of which EUR 45.2 million was due to a change in working capital. The change in working capital is mainly due to the change in insurance technical liabilities of EUR 40.5 million.

Cash flow from investing and financing activities in Q4 2023 amounted to EUR 23.3 million, while the net outflow for the year was EUR 123 million. The cash flow from investing activities was EUR -8.6 million in the quarter, while it was EUR -60.4 million on an annual basis. The cash flow related to investing activities consisted mainly of cash outflows related to investments (mainly the development of the warehouse in Ecser) (-EUR 12.3 m quarterly and EUR 38.4 million year on year) and investments of financial reserves in savings assets related to insurance activities (-EUR 0.1 m quarterly and EUR -35.2 million year on year). The financing cash flow in 2023 Q4 was EUR 14.7 m and EUR 62.6 m in annual terms, of which EUR 12.8 m in quarterly terms and EUR 44.3 m in annual terms related to the payment of vehicle leases and, in the case of vehicle replacement, to the buy-out of the lease contract, while EUR 4.7 m related to the payment of dividends, which took place in the second quarter of 2023. Interest related to the bond issued during 2022 and the lease contracts was EUR 2.1 million in the last quarter of 2023 and EUR 11.8 million for the year.

Free cash flow, which includes cash flow from operations, investments and the elements of fleet lease financing, amounted to EUR 8.0 million in the last quarter of 2023 and EUR 16.9 million on an annual basis.

Debt

Net financial indebtedness

Net leverage ratio (recurring EBITDA multiple)

31 December 2023 31 December 2022

214.2150.0

2.21.8

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

5

The Group's net financial indebtedness position at 31 December 2023 amounted to EUR 214.2 million, an increase of EUR 64 million compared to the end of the previous financial year. The increase in indebtedness, in line with previously communicated plans, is mainly due to the increase in lease liabilities (EUR +43 million) for fleet renewal and fleet replacement (with a slight increase in fleet size) and the value of the Group's investments of EUR 38 million, the majority of which was related to the development of the warehouse in Ecser.

The Group's net leverage, expressed as a multiple of the previous 12 months' recurring EBITDA, increased to 2.2x, compared to the previous year's value of 1.8x.

Equity

Shareholder's Equity

31 December 2023 31 December 2022

151.3113.1

The Group's consolidated equity at 31 December 2023 was EUR 151.3 million, an increase of EUR 38.2 million compared to the end of 2022. The increase in consolidated equity was mainly due to the net income for the year of EUR 29.7 m and the effect of the change in foreign exchange rates and the result of hedge positions recognised in other comprehensive income (EUR 14.6 m), while the dividend paid in 2023 reduced the Company's equity by EUR 4.8 m.

ESG

In the fourth quarter of 2023, we added 6 LNG vehicles to our fleet, bringing the total number of alternative powertrain vehicles to 18 by the end of the year. A further 1 electric tractor was ordered and arrived in our fleet in early 2024.

After several months of preparatory work, the Waberer's Group ESG strategy has been adopted and is scheduled to be published in the first half of 2024. At Planet Budapest 2023, our Green Division was represented with a stand and an electric tractor, and at the Transport 2023 conference, our sustainability efforts were recognised with a Green Logistics Award.

Outlook for the 2024 financial year

2024 result will be supported by the following effects:

• Earnings of the acquired rail subsidiary
• Assuming a successful closure, the earnings of the acquired Serbian subsidiary
• The following services won by the RCL segment in 2023 and launched at the end of last year and beginning of this year:
  o Manufacturing support in-house logistics service for a chemical client o Logistics services for a renewed national waste management system

The following positive effects in the 2023 financial year are no longer expected in 2024:

• One-offpositive impact of IFRS17 transition
• Outstanding investment performance due to high interest rate environment, especially in the insurance segment
• Positive impact of out-of-court settlement of truck manufacturer litigation

In addition, we do not expect a significant upturn in European manufacturing or Hungarian consumption trends in the first half of 2024, which will influence market price levels and volumes.

As a result of these effects, we expect revenues of around EUR 800 million in 2024 (based on revenue attributable to newly acquired subsidiaries), with growth of around 13-15%, while at EBIT level we expect a result of over EUR 40 million, broadly in line with the 2023 performance.

Subsequent events

Waberer's has successfully closed the acquisition of a 57,000 square metre building plot in the center of the industrial zone in Debrecen. The Company plans to build a logistics centre on the site, which is expected to be completed in the second half of 2025. The new logistics centre will be able to meet the logistics needs of major automotive projects under construction in the Debrecen area, as well as those of related suppliers, and will also be able to serve existing customers in the Eastern Hungary region with high quality service and greater efficiency.

Waberer's has successfully completed the acquisition of a 51% stake in Petrolsped. Through the acquisition of a majority stake in PSP (Petrolsped) Group, Waberer's has acquired a leading rail logistics company in Hungary and the region, and can build on the acquisition to significantly expand its low environmental footprint logistics services and enter logistics markets that traditionally use rail logistics (construction materials, feed, oil, etc.)

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

6

International Transportation and Freight Forwarding (ITS)

| International Transportation and Freight Forwarding Segment financial information (EUR mn)

Revenue

Gross profit

of which: GP excluding depreciation and amortisation

EBITDA

EBIT

Gross profit margin (excluding depreciation and amortisation)

EBITDA margin EBIT margin

Q4 20231	Q4 20221		Better		12M 20231	12M 20221		Better
	(worse)			(worse)
113.6	111.8		1.6%	437.3	425.5		2.8%
12.4	4.7		162.6%		41.4	32.8		26.0%
22.1	12.9		70.8%	78.4	64.6		21.3%
13.3	14.8		(10.3%)	45.9	41.6		10.3%
3.7	6.6		(44.8%)	8.9	9.8		(9.7%)
19.4%	11.6%		7.9 pp	17.9%	15.2%		2.7 pp
11.7%	13.2%		(1.5 pp)	10.5%	9.8%		0.7 pp
3.2%	5.9%		(2.7 pp)	2.0%	2.3%		(0.3 pp)

1 Figures adjusted for better comparability, re-categorising the effect of insurance-related provisions, an OPEX item, as Direct Costs. EBITDA is not affected. For exact figures on the effect on the re-categorisation, please refer to page 10.

The international Transportation and Freight Forwarding segment's annual revenue reached EUR 437.3 million, up 2.8%. Segment revenue increased by 1.6% on a quarterly basis in the fourth quarter of 2023 compared to the same period in 2022, while active fleet size averaged 2,166 units during the quarter, an increase of 157 units on a year-on-year basis. The Company's cautious expansion of fleet size was in response to the results of tenders announced by Key Account customers, which will continue to be managed on an ongoing basis depending on the outcome of annual tenders and the timing of planned fleet replacements. The contracted revenue-reducing impact of the 13% and 12% quarterly and year-over-year declines in average fuel levels was offset by a slight fleet size expansion and an 8% increase in net tariff levels, excluding the impact of fuel and tolls, which was achieved despite a stagnant market environment through the conscious development of the customer portfolio. Revenue from subcontracted transport activities grew by 4% year-on-year, in line with the strategy to increase the weight of subcontracted deliveries within the Group.

The gross profit, excluding depreciation, reached EUR 22.1 million in the fourth quarter (+70.8%), while the segment achieved a gross profit excluding depreciation of EUR 78.4.3 million, up 21.3% year-on-year. The quarterly gross profit margin was 19.4%, while the annual figure corresponded to a gross margin of 17.9%.

EBIT on an annual basis was EUR 8.9 million, a decrease of EUR 1 million on a year-on-year basis and corresponding to an EBIT margin of 2.0%. The result was close to the previous year despite the fact that spot market freight rates were under strong pressure due to stagnant industrial production volumes in Europe, but the impact on the Key Account customer service, which is aligned with Waberer's current strategy and is highly served, was minimal, while the segment's dependence on the spot market was significantly reduced compared to previous years. The segment achieved an EBIT of EUR 3.7 million in the fourth quarter of 2023, which corresponds to a year-on-year decline of EUR 3.0 million. The decrease is mainly due to one-off positive effects in the base period ( government subsidy for investments and sale of energy savings quota in the EEO2 scheme).

2 Energy Efficiency Obligation Scheme

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

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Regional Contract Logistics

| |Regional Contract Logistics financial information (EUR mn)

Revenue

Gross profit

of which: GP excluding depreciation and amortisation

EBITDA

EBIT

Gross profit margin (excluding depreciation and amortisation)

EBITDA margin EBIT margin

Q4 20231	Q4 20221		Better		12M 20231	12M 20221		Better
	(worse)			(worse)
55.4	49.0		13.0%	209.8	199.4		5.2%
7.6	11.7		(35.0%)		38.7	38.7		(0.1%)
11.7	15.7		(25.7%)	54.2	53.4		1.5%
5.4	4.0		35.3%	30.8	25.8		19.5%
1.3	(0.0)			15.3	11.1		37.3%
21.1%	32.0%		(11.0 pp)	25.8%	26.8%		(0.9 pp)
9.7%	8.1%		1.6 pp	14.7%	12.9%		1.7 pp
2.4%	(0.0%)		2.4 pp	7.3%	5.6%		1.7 pp

1 1 Figures adjusted for better comparability, re-categorising the effect of insurance-related provisions, an OPEX item, as Direct Costs. EBITDA is not affected. For exact figures on the effect on the re-categorisation, please refer to page 10.

The Contract Logistics segment's revenue in 2022 was EUR 209.8 million, an increase of 5.2%. The increase in RCL segment revenue was mainly due to the expansion of the automotive and petrochemical production support logistics activities and the impact of successful customer acquisitions, with revenue from domestic distribution activities matching the previous year's revenue, while warehousing activities expanded slightly in 2023. In the last quarter of 2023, segment revenue increased by 13% year-on-year to EUR 55.4 million.

The annual gross profit, excluding depreciation, improved by EUR 0.8 million to EUR 54.2 million. The increase in the level of direct costs was mainly driven by the 18% increase in toll fees in Hungary in October and the increase in domestic wages in line with inflation in Hungary. Gross profit in Q4 2023 was EUR 11.7 million, reaching a gross profit margin level of 21.1%.

The segment's annual EBIT was a record EUR 15.3 million, an improvement of EUR 4.2 million (+37.3%) on a year-on-year basis. The higher profitability is mainly due to expanding volumes related to in-house logistics activities supporting manufacturing and new customer acquisitions.In Q4 2023, the segment's EBIT reached EUR 1.3 million, an increase of EUR 1.3 million year-on- year, and an EBIT margin of 9.7%.

Insurance segment

|Insurance segment financial information (EUR mn)

	Better		Better
Q4 20231	Q4 20221	12M 20231	12M 20221
	(worse)		(worse)

Revenue

Gross profit

of which: GP excluding depreciation and amortisation

EBITDA

EBIT

Gross profit margin (excluding depreciation and amortisation)

EBITDA margin EBIT margin

21.9	16.7	30.8%		82.4	70.0	17.7%
5.7	5.6	1.6%		17.1	17.6	(3.2%)
5.8	5.7	1.6%	17.4	17.9	(3.2%)
4.4	5.5	(20.0%)	18.9	15.9	18.9%
4.4	5.5	(20.3%)	18.6	15.6	19.3%
26.4%	34.0%	(7.6 pp)	21.1%	25.6%	(4.5 pp)
20.3%	33.1%	(12.9 pp)	22.9%	22.7%	0.2 pp
19.9%	32.7%	(12.8 pp)	22.6%	22.3%	0.3 pp

Due to the transition of the insurance segment to IFRS17, the annual figures for 2022 have been restated. The impact of this restatement has improved the Q4 2022 segment income at EBIT level by a total of EUR 3.3 million. Details of the restatement are presented on page 11.

The Insurance segment, which comprises insurance services provided to customers outside the Group, increased its revenue in EUR by 30.8% year-on-year to EUR 21.9 million in the quarter, while on an annual basis revenues reached EUR 82.4 million, an increase of 17.7%. Revenue growth in HUF, which is the original currency of revenue from customers, was 21% quarter-on- quarter and 15% year-on-year. The revenue growth was mainly due to a 22% increase in the contract portfolio.

The Insurance segment achieved a record annual EBIT of EUR 18.6 million, an increase of EUR 3.0 million. The EBIT improvement is mainly due to higher earnings on the investment portfolio in a favourable return environment. The Insurance segment achieved an EBIT of EUR 4.4 million during the quarter, a decrease of EUR 1.1 million compared to the last quarter of 2022, due to the restatement of the 2022 result.

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

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|IFRS 17 impact

IFRS 17 Insurance Contracts sets out principles for the accounting, measurement, presentation and disclosure of insurance contracts issued and requires similar principles for reinsurance contracts and investment contracts with issuer-dependent features. The objective of the amendment is to ensure that entities disclose relevant information that fairly reflects insurance contracts so that users of financial statements can assess the effect of contracts within the scope of IFRS 17 on the financial position, financial performance and cash flows of an entity. The Group adopted this accounting standard from 1 January 2023. The application of the standard has made it necessary to restate certain parts of the 2022 financial statements, as a basis, which are presented in the tables below.

Impact of IFRS 17 on the income statement for 2022 (audited, EUR million)*

	Before applying IFRS17	IFRS17 translation difference	After applying IFRS17
	Q4 2022		Q4 2022		Q4 2022
	Insurance	Group	Insurance	Group	Insurance	Group
Direct costs	(13.8)	(13.8)	2.7	2.7	(11.1)	(11.1)
of which: depreciation and amortisation	(0.1)	(0.1)	0.0	0.0	(0.1)	(0.1)
OPEX	(0.8)	(0.8)	0.7	0.7	(0.2)	(0.2)
EBITDA	2.2	2.2	3.3	3.3	5.5	5.5
EBIT	2.1	2.1	3.3	3.3	5.5	5.5
Financial result	-	0.5	-	(0.0)	-	0.5
Taxes	-	(1.4)	-	(0.2)	-	(1.6)
Net income	-	7.8	-	3.1	-	11.0
Net income excluding non-cash FX effect	-	5.4	-	3.1	-	8.5
	Before applying IFRS17	IFRS17 translation difference	After applying IFRS17
	12M 2022	12M 2022	12M 2022
	Insurance	Group	Insurance	Group	Insurance	Group
Direct costs	(55.1)	(55.1)	2.7	2.7	(52.4)	(52.4)
of which: depreciation and amortisation	(0.3)	(0.3)	0.0	0.0	(0.3)	(0.3)
OPEX	(2.7)	(2.7)	0.7	0.7	(2.0)	(2.0)
EBITDA	12.5	12.5	3.3	3.3	15.9	15.9
EBIT	12.3	12.3	3.3	3.3	15.6	15.6
Financial result	-	(11.4)	-	(0.0)	-	(11.4)
Taxes	-	(5.6)	-	(0.2)	-	(5.8)
Net income	-	16.2	-	3.1	-	19.3
Net income excluding non-cash FX effect	-	20.2	-	3.1	-	23.3

Impact of IFRS 17 on the balance sheet and debt metrics as at 31 December 2022 (audited, in millions of euros)

	31 December	31 December
	2022	2022
	Restated	Audited
NON-CURRENT ASSETS
Total property, plant and equipment	181.8	181.8
Reinsurance amount of technical reserves	44.8	47.2
TOTAL NON-CURRENT ASSETS	336.1	338.5
CURRENT ASSETS
TOTAL CURRENT ASSETS	279.3	279.3
TOTAL ASSETS	615.4	617.8
SHAREHOLDER'S EQUITY
Retained earnings	100.6	66.9
Other reserves	(4.9)	(6.5)
Total equity attributable to the equity holders of the parent company	112.9	77.6
TOTAL SHAREHOLDERS' EQUITY	113.1	77.8
LIABILITIES
LONG-TERM LIABILITIES
Deferred tax liability	3.2	0.8
Other insurance technical provision - long term	67.4	107.5
TOTAL LONG-TERM LIABILITIES	328.3	366.0
CURRENT LIABILITIES
TOTAL CURRENT LIABILITIES	174.0	174.0
TOTAL EQUITY AND LIABILITIES	615.4	617.8
DEBT
Gross financial indebtedness	270.3	270.3
Net financial indebtedness	150.0	150.0
LTM recurring EBITDA	83.3	80.0
Net leverage ratio	1.8	1.9

*The application of IFRS17 has only caused a change in the income statement of the Insurance segment and the Group.

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

9

|IFRS 17 impact

Impact of IFRS 17 on the cash flow statement for 2022 (audited, EUR million)*

	Q4 2022	Q4 2022	12M 2022	12M 2022
	Restated	Unaudited	Restated	Audited
Profit/loss before tax	12.6	9.2	25.2	21.8
Net cash flows from operations before changes in working capital	34.1	30.8	81.9	78.5
Changes in Insurance technical liabilites	(9.7)	(6.4)	(13.5)	(10.2)
I. Net cash flows from operations	17.5	17.5	26.8	26.8
II. Net cash flows from investing activities	(22.3)	(22.3)	(8.0)	(8.0)
III. Net cash flows from financing activities	(10.1)	(10.1)	13.0	13.0

FOURTH QUARTER AND ANNUAL FINANCIAL REPORT, 21 MARCH 2024

10