EUROPEAN
GREEN
WINDOW
Luka Koper Group
and Luka Koper, d. d.
Annual Report 2023
The report does not meet the requirements of the transparency directive and is not considered compliant with the ESEF regulation
Statement of Management's Responsibility1
Gorazd Jamnik | Nevenka Kržan | Gregor Belič | Vojko Rotar |
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 2023 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 2023 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.
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 or illegal acts.
Members of the Management Board:
1 | Business performance highlights of the Luka Koper Group in 2023 | Gorazd Jamnik | Vojko Rotar | ||
Nevenka Kržan | Gregor Belič | ||||
President of the | Member of the | Member of the | Member of the | ||
Management | Management | Management | Management Board - | ||
Board | Board | Board | Worker Director | ||
Koper, 9 April 2024 | |||||
1 | GRI 2-12,2-14 |
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TABLE OF CONTENTS
Statement of Management's Responsibility | 3 |
BUSINESS REPORT | 5 |
1 Business performance highlights of the Luka Koper Group in 2023 | 6 |
2 Letter of the President of the Management Board | 16 |
3 Report of the Supervisory Board for 2023 | 19 |
4 Corporate Governance Statement | 25 |
5 Survey of relevant events, novelties and achievements in 2023 | 42 |
6 Relevant events after the end of the financial year | 46 |
7 Presentation of the Luka Koper Group and a description of the business model | 47 |
8 Business development strategy | 51 |
9 Economic environment and market position | 54 |
10 Performance of the Luka Koper Group in 2023 | 56 |
11 Investments in non-financial assets | 63 |
12 European projects | 65 |
13 A look ahead | 67 |
14 Managing risks and opportunities | 69 |
15 The LKPG Share | 75 |
SUSTAINABILITY REPORT | 79 |
16 On the Sustainability Report | 81 |
17 Process to determine material topics | 84 |
18 Luka Koper Group and sustainable development guidelines | 91 |
Managing the Environmental Impacts of Sustainable Development | 95 |
19 Long-term sustainability of the natural environment | 97 |
Managing Social Impacts of Sustainable Development | 174 |
20 Safe and healthy port environment | 176 |
21 Care for employees | 183 |
22 Social responsibility | 197 |
23 Sustainable relationship with customers | 199 |
24 Digital transformation | 201 |
Managing Governance Impacts of Sustainable Development | 202 |
25 Stability and business performance | 203 |
26 Sustainable relationship with suppliers | 209 |
27 Corporate Integrity and Compliance, Protection of Personal Data and Human Rights | 212 |
28 Information Systems Security | 221 |
29 GRI content index (according to 2021 standards) | 223 |
FINANCIAL STATEMENT | 231 |
30 Financial statements of Luka Koper, d. d. and Luka Koper Group | 232 |
31 Notes to Financial Statements | 238 |
32 Summary of significant information on accounting policies | 241 |
33 Additional Notes to the Income Statement | 252 |
34 Additional Notes to the Statement of Financial Position | 259 |
35 Statement of Accumulated Profit | 309 |
36 Relevant events after the end of the financial year | 310 |
37 Independent Auditor's Report | 311 |
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BUSINESS REPORT
1 Business performance highlights of the Luka Koper Group in 2023
The Luka Koper Group concluded another very successful year. Business results exceeded expectations, with new milestones reached in cargo throughput and records set in several segments.
Net sales in 2023 amounted to EUR 312.8 million, which was on a par with the level of revenue achieved in 2022. Within net sales, revenue increased by EUR 20 million due to greater container and car transhipment, greater volume of loading and unloading of containers, greater volume of other additional services on goods and higher service prices. Compared to the previous year, due to the normalisation of the situation on the global logistics market and the shortening of the storage time of containers in the storage facility, revenues from storage fees decreased by EUR 21 million.
In 2023, earnings before interest and taxes (EBIT) amounted to EUR 60.9 million, which was a decrease of 27 percent or EUR 22.2 million when compared to 2022. The main contributor to the lower earnings before interest and taxes (EBIT) in 2023 was lower storage fees, while higher operating costs of EUR 23.3 million, which were due to inflationary pressures and higher number of employees and agency
workers, were mostly offset by the Luka Koper Group with revenues from other services.
Record throughput volumes were achieved in 2023 in both strategic commodity groups, containers and cars, as well as in the passenger terminal, the reefer terminal and the liquid cargo terminal. In the container segment, 1,066,093 container TEUs were handled in 2023, an increase of 5 percent compared to 2022. Car transhipment in 2023 amounted to 916,728 cars (in pieces), an increase of 14 percent compared to 2022. Luka Koper, d. d., has thus consolidated its position and confirmed its primacy among ports in the northern Adriatic (containers) and the Mediterranean (cars). The passenger terminal welcomed 120,553 passengers to the port in 2023, surpassing the 2019 figure of 115,581. The total maritime throughput, measured in tons, was 4 percent lower than that achieved in 2022, mainly due to a 15 percent lower throughput of general cargo and a 15 percent lower throughput of the dry bulk and bulk cargoes commodity group. In the general cargo group, there was lower throughput of steel products and rubber, and in the dry bulk and bulk cargoes group, lower throughput of soya beans,
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alumina, phosphates, coal and iron ore. In 2023, 48 percent of freight was transported by road, and 52 percent by rail. In 2023, the ratio changed by 2 percentage points compared to 2022, with an increase in road transport.
In 2023, most of the planned financial indicators were ex- ceeded. Net sales revenues were higher than planned by 8 percent, or by EUR 22.7 million. The main contributor to the higher net sales was storage fee income, which exceeded the planned figure by EUR 19 million, as the business plan had foreseen a reduction in the dwell time of containers due to the calming market conditions. Earnings before interest and taxes (EBIT) were higher than planned by 76 percent, or by EUR 26.4 million. In addition to the higher net sales revenue, the higher earnings before interest and taxes (EBIT) were positively impacted by lower material, labour and depreciation costs, while the higher cost of services was due to an increase in the cost of port services linked to the higher throughput on the car commodity group and the cost of labour placement agencies. According to the plan, the throughput of the cars commodity group (in pieces) was higher by 21 percent, while the throughput of the of containers commodity group (in TEUs) lagged behind the plan by two percent. The total maritime throughput, measured in tons, was 5 percent less than the planned quantities.
The year 2023 began optimistically, indicating the recovery of the global economy. The situation on the energy markets calmed down, energy prices fell, and global GDP growth was stronger than expected. However, global econom-
ic growth moderated later in the year. Towards the end of 2023, the impact of the tight financial situation, weak trade growth and lower business and consumer confidence was felt increasingly. Heightened geopolitical tensions have again been fuelling uncertainty about the short-term out- look.
The situation in logistics and supply chains has been further worsened with the start of the Red Sea attacks, affecting all stakeholders in logistics, including the final customers of goods in industrial production who depend on maritime transport through the Suez Canal. Due to the rerouting of ships around Africa, some of the Far Eastern shipping services of Luka Koper d. d., are experiencing delays in the arrival of ships, as transit times have been extended by an average of 10 to 14 days. Indirectly, the delay also affects ships transporting cargo across the Mediterranean via tran- shipment (hub) ports. In December 2023, there were no significant impacts on business operations. However, due to the above-mentioned uneven distribution of cargo arrivals, delays in the arrival of ships or cargo will be reflected in the realisation of monthly transhipment plans in the first three months of 2024. If the situation does not normalise in the coming months, this could also have an impact on decisions by shipowners/customers to change established transport routes from the Far East to Europe, which could be reflected in smaller volumes of transhipment on arrival.
In 2023, several major investments for the Luka Koper Group were completed, namely the redevelopment of the storage areas in the area of the 5A cassette, the construction of new plugs for reefer containers, the construction of a new external truck terminal at the Sermin entrance, the modernisation of the cooling and extinguishing system at the methanol tanks, and the construction of a transformer substation to power the new galleries. Among the most important investment projects underway are the construction of the 12th berth and the installation of solar power plants, the execution of a public contract for warehouse No 54 and the preparation of documentation and obtaining the relevant permits for the extension of the northern part of Pier I and the development of other areas for the container terminal.
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2023 in numbers
1,066,093TEU
containers unloaded from and loaded on ships
22.3million tons | 916,728cars | 20,609 trains |
unloaded from and | unloaded from and | arrived in and |
loaded on ships | loaded on ships | departed from the port |
262,583 | 422,811 | 1,642 |
wagons unloaded | trucks arrived | ships moored |
and loaded | in the port |
% | 48% |
52 | share of road |
share of railway | |
transhipment | transhipment |
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Net sales | Maritime throughput | |
EUR 312.8 million | 22.3 million TON | |
+8% 2023/plan 2023 | -5% | 2023/plan 2023 |
0% 2023/2022 | -4% | 2023/2022 |
in million EUR | 313.5 | 312.8 | |||||
350 | in million tons | ||||||
300 | 228.4 | 23.2 | 22.3 | ||||
20.8 | |||||||
250 | 25 | ||||||
200 | 20 | ||||||
150 | 15 | ||||||
100 | 10 | ||||||
50 | 5 | ||||||
0 | 0 | ||||||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 |
Container throughput | Car throughput |
1.1 million TEU | 916.7 thousand pieces |
-2% 2023/plan 2023 | +21% 2023/plan 2023 |
+5% 2023/2022 | +14% 2023/2022 |
containers in thousand TEUs and cars in thousand pieces
1,200 | 997.6 | 1017, 8. | 0661, 1. | 801.0 | 916.7 | |
1,000 | 656.5 | |||||
800 | ||||||
600 | ||||||
400 | ||||||
200 | ||||||
0 |
Containers - TEU | Cars - pieces |
2021 2022 2023
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Earnings before interest | Earnings before interest, |
and taxes (EBIT) | taxes, depreciation and |
EUR 60.9 million | amortisation (EBITDA) |
+76% 2023/plan 2023 | EUR 93.7 million |
-27% 2023/2022 | +37% 2023/plan 2023 |
-18% 2023/2022 |
Return on sales (ROS) | EBITDA margin |
19.5% | 30.0% |
+64% 2023/plan 2023 | +27% 2023/plan 2023 |
-27% 2023/2022 | -18% 2023/2022 |
in million EUR | ||||||||
100 | ||||||||
26.5 | ||||||||
80 | 13.7 | 19.5 | ||||||
60 | ||||||||
40 | ||||||||
20 | 60.9 | |||||||
31.3 | ||||||||
0 | 83.1 | |||||||
2021 | 2022 | 2023 |
Earnings before interest, taxes, depreciation and amortisation (EBIT) in million EUR
Return on sales (ROS) in %
in million EUR | % | ||||
140 | 36.6 | 40 | |||
% | 120 | 26.8 | 30.0 | 35 | |
30 | 100 | 30 | |||
35 | 80 | 35 | |||
20 | 60 | 20 | |||
15 | 40 | 15 | |||
10 | 20 | 60.2 | 83.1 | 93.7 | 10 |
0 | 0 | 0 | |||
2021 | 2022 | 2023 |
Earnings before interest, taxes, depreciation and amortisation (EBITDA) in million EUR
EBITDA margin in %
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Luka Koper dd published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 13:48:07 UTC.