EUROKAI GmbH : Non-Financial Group Declaration 2022

DRAFT EUROKAI Non-Financial Group Report for 2022

Introduction

This non-financial Group report is produced pursuant to Sections 315b and 315c in conjunction with Sections 289c to 289e of the German Commercial Code (HGB) and relates to the EUROKAI Group for the financial year 2022.

In the 2022 financial year, the EUROKAI Group reports for the first time in full on key performance indicators that are required to be disclosed on the basis of Regulation (EU) 2020/852 of the European Parliament and the Council of 18 June 2020 (EU Taxonomy Regulation) and the associated published Delegated Acts (see section EU Taxonomy).

The non-financial Group report is available publicly on our website at:

http://www.eurokai.de/eurokai_en/Investor-Relations/Corporate-Governance

Group entity and business model

The focus of the business activities of the companies consolidated in the EUROKAI Group is on container handling in continental Europe. These companies operate container terminals, in some cases with partners, in La Spezia, Ravenna and Salerno (Italy), in Hamburg, Bremerhaven and Wilhelmshaven (Germany), as well as in Tangier (Morocco), in Limassol (Cyprus) and in Ust-Luga (Russia). In Russia, the EUROKAI Group holds a 20% stake in JSC Ust-Luga Container Terminal via the EUROGATE Segment. Due to the geopolitical situation and the resulting sanctions in place, the indirect investment was written off in the reporting year, as the long-term assumption is that handling volumes are not expected to stabilise. Furthermore, in the current environment, cash recoveries from Russia can be ruled out. Under the currently prevailing conditions, a disposal of the investment is also unlikely to be realisable. The EUROKAI Group also has shareholdings in a number of inland terminals and railway operating companies.

Secondary services are also provided in the form of intermodal services (carriage of sea containers to and from terminals), repairs, depot storage and trading of containers as well as cargomodal services and technical services.

Control of the EUROKAI Group is vested in three business segments, "CONTSHIP Italia" "EUROGATE" and "EUROKAI", with the EUROGATE joint venture being included in the consolidated EUROKAI financial statements using the equity method of accounting in line with the provisions of IFRS 11. EUROKAI is a financial holding company.

About this report

All information refers to the parent company, including those domestic and foreign companies which EUROKAI incorporates into its consolidated financial statements or which are classified as associated companies.

This report covers the operating companies active in the core business of the Group. It does not report on minority interests that are not directly involved in the core business, or on companies in which the Group has a stake through minority interests outside Germany, as these are not classified as material in relation to the non-financial impact of their activities and the potential for exerting influence.1

This report focuses on topics that are necessary for an understanding of the business development, the performance of the business and the position of the Group, as well as the impact of its business activities on non-financial aspects. It follows the Sustainability Reporting Standards published by the Global Reporting Initiative (GRI). The description of the concepts presented here was also prepared in accordance with the GRI Standards. Management of non-financial aspects does not follow a Group-wide approach. Instead, the topics are managed decentrally within each of the corporate groups. Accordingly, the following pages set out both the concept for CONTSHIP Italia and the concept for EUROGATE. For the disclosure of the aspects, non-financial key performance indicators are reported on that are selected according to the thematically related GRI Standard. As part of the reporting process, EUROKAI examined whether risks exist that are linked to the company's own business activities, business relationships, or products and services and that have or can have a serious negative impact on the non-financial aspects defined by law and have a high likelihood of occurrence. On balance, there are no reportable net risks as defined in the German CSR Implementation Act (CSR-RUG).

Importance of sustainability

For EUROKAI, sustainability means, above all, ensuring the future viability of the corporate Group. Within the scope of its business activities and on the basis of internal processes, EUROKAI gives equal consideration to economic efficiency, environmental protection and social responsibility. Compliance with laws and internal policies and guidelines forms the natural basic prerequisite for day-to-day business operations. Container terminals are hubs of international trade; therefore efficient seaport operations are key to enabling EUROKAI to ensure that its customers benefit from reliable goods transport. At the same time, EUROKAI strengthens the local economy and provides jobs. Its business activities impact on both people and the environment, for instance through the Group's consumption of resources.

1Companies not classified as material are: boxXpress.de GmbH, "Brückenhaus" Grundstücksgesellschaft m.b.H., DHU Gesellschaft Datenverarbeitung Hamburger Umschlagsbetriebe mbH, EUROGATE Beteiligungs-GmbH, EUROGATE City Terminal GmbH, EUROGATE Container Terminal Wilhelmshaven Beteiligungsgesellschaft mbH, EUROGATE Geschäftsführungs-GmbH & Co. KGaA, EUROGATE International GmbH, EUROGATE KV-Anlage Wilhelmshaven GmbH, EuroXpress HGF GmbH, HVCC Hamburg Vessel Coordination Center GmbH, IPN Inland Port Network GmbH & Co. KG, IPN Inland Port Network Verwaltungsgesellschaft mbH, J.F. Müller & Sohn AG, MSC Gate Bremerhaven Verwaltungsgesellschaft mbH, North Sea Terminal Bremerhaven Verwaltungsgesellschaft mbH, PCO Stauereibetrieb PAETZ & Co. Nfl. GmbH, TRIMODAL LOGISTIK GmbH, Contrepair S.r.L., Immobiliare Rubiera S.r.l., La Spezia Shunting Railways S.p.A., Spedemar S.r.l., Terminal Container Ravenna S.p.A., boxXagency Kereskedelmi és Szolgáltató Kft, CONTRAIL Logistics S.A., EUROGATE Container Terminal Limassol Ltd., EUROGATE Tanger S.A., TangerMedGate Management S.a.r.l., JSC Ust-Luga Container Terminal and EUROGATE Rail Hungary Zrt.

Process for determining materiality

The decentralised structure of the Group essentially governs the process of assessing materiality for identifying, prioritising and validating the contents of this report. In a first step, relevant topics are identified at the level of CONTSHIP Italia and at the level of EUROGATE based on the GRI Standards. If a topic is deemed to be fundamentally relevant for one of the segments, a materiality analysis is carried out from the perspective of the EUROKAI Group as a whole based on the materiality threshold in accordance with Section 289c (3) of the German Commercial Code (HGB). Accordingly, the Group reports on the one hand on topics that are of high relevance for gaining an understanding of the development, performance and position of EUROKAI and on the other hand where EUROKAI exerts material influence through its business activities. The materiality analysis is reviewed annually through a survey of internal experts and decision-makers who are able both to assess the non-financial aspects from an internal standpoint and from the perspective of external stakeholders.

Within the scope of this review, the four previously identified material non-financial aspects remained unchanged for the 2022 financial year. These were: energy consumption and CO2 emissions (environmental matters), occupational health and safety (employee dimension), anti-corruption and anti-bribery, and IT security.

External audit

The contents of this non-financial report were audited in accordance with ISAE 3000 (revised) to obtain limited assurance. The scope of the audit and the auditor's assessment can be found in the Auditor's Limited Assurance Report on page 27-30.

Environmental matters - energy consumption and CO₂ emissions

The Group's business activities consume large amounts of energy. Energy consumption is a key performance indicator for the management of resources and has a direct impact on incurred costs, and hence on financial performance. Most of this energy consumption is due to the use of diesel fuel, mainly for the operation of straddle carriers and tractor units used for container transport at the terminals. Other energy consumers are container gantries, buildings and area lighting. Electricity and gas are used as energy sources in these areas.

At the same time, energy consumption substantially impacts on the environment, because it uses natural resources and produces greenhouse gas emissions. Together with the cost aspect associated with energy consumption, efforts to limit climate change and minimise the Group's own carbon footprint are a socially significant issue that also drives EUROKAI's energy management activities.

The strategic orientation of the two segments that characterise the EUROKAI Group, CONTSHIP Italia and EUROGATE, differs as regards energy consumption and CO2 emissions both from a conceptual perspective and in terms of progress.

CONTSHIP Italia: Apart from the purchase of energy, CONTSHIP Italia manages its concept for energy reduction decentrally. All companies in the CONTSHIP Italia Group have a code of conduct which defines Group values and policies. This also covers the reduction of energy consumption. Each employee is required to declare their adherence to this principle. A quality,

health and safety as well as environmental policy at the maritime terminal in La Spezia governs compliance with statutory regulations and helps to raise awareness of the importance of a sustainable business development. The policy further comprises principles governing the avoidance of accidents and contamination, the monitoring and control of environmental impacts and an efficient use of resources, with the aim of continually improving processes and performance. Line managers and management bodies are expected to encourage and promote a resource-saving attitude. The Group intends to steadily reduce the CO2 footprint resulting from the consumption of energy by investing in high-quality transport equipment and technologies.

The container terminals are certified in accordance with the DIN EN ISO 14001 environmental management system standard. Local management is involved in this process and within the context of the management system. Energy consumption and the financial impact of achieved savings are analysed at the level of the individual companies. No formal, quantitative reduction targets are set; however, the Group pursues the qualitative goal to reduce energy and CO2 emissions in absolute terms compared with the respective previous year. Energy audits pursuant to EU Resolution 2012/27 are performed at least every four years; the first audit took place in 2015; a second followed in 2019. These audits deliver proposals on further possible measures to reduce energy consumption.

EUROGATE: In the 2022 financial year, a more efficient central energy management system was established on the basis of DIN EN 50001 aimed at achieving a structured improvement in energy efficiency. In parallel, an energy audit pursuant to DIN EN 16247 is carried out on a rotating basis across the various sites, which identifies efficiency potential. In 2022, the Hamburg Container Terminal site was considered in detail and the findings were incorporated into central energy management.

The energy audit is conducted every four years, and in addition the individual energy management system comprising key performance indicators, targets, regular energy efficiency assessments, a list of technical measures, technical inspections, process audits and management reviews is further enhanced. In this context, EUROGATE is investing in renewable energy sources to enable it to meet its own energy needs. Energy efficiency is a decision criterion when making capital expenditure and purchasing decisions.

Various large and smaller measures aim to achieve improvements by tackling the energy efficiency of the major energy consumers. Measures and projects are regularly implemented that focus on utilising savings potential, for example with in-depth capture and analysis of straddle carrier consumption data. Especially important here is achieving a continuous reduction in the consumption of fossil fuels. Energy efficiency measures have both a technical and an operational focus. EUROGATE remains committed to appealing to its employees' sense of responsibility with regard to saving resources and involves them in driving to cut energy consumption. EUROGATE regularly examines options for using more energy-efficient technologies. Thus the 2022 financial year again saw investments made in more energy- efficient equipment (hybrid straddle carriers). The Group-wide transformation process launched in the 2020 financial year continued in 2022 with the goal to improve operational workflows and potentially have a positive impact on energy efficiency in subsequent years.

Moreover, EUROGATE generates its own renewable energy from two wind turbines, three photovoltaic plants, and one wood-chip power station. It also runs three combined heat and power plants for energy generation.

The most important key performance indicator at CONTSHIP Italia and EUROGATE in the area of energy consumption is consumption in total megawatt hours.

Energy consumption is regularly monitored. The following table shows the current status of target attainment:

	CONTSHIP Italia*			EUROGATE**
Target	Lower energy consumption
Status	50,339*** MWh (of which 2,579		435,999 MWh (of which 12,376
2021	MWh renewables)			MWh renewables)
Status	49,621 MWh (of which 6,924 MWh	412,587 MWh (of which 13,358
2022	renewables)				MWh renewables)
Comment	The increase in the share of	In view of the increasing importance
	renewables is attributable to the	of the carbon footprint, the goal is to
	change of supplier and the resulting	further	expand renewables and
	change in the energy mix. There was	further reduce energy consumption.
	a slight decrease in energy	Energy consumption was down in
	consumption	due	to	the	the 2022 financial year. At the same
	development in handling volumes.	time, favourable wind conditions led
					to increased utilisation of wind
					energy.	Container	throughput
					decreased slightly on the back of
					global economic events leading to a
					corresponding reduction	in energy
					consumption.

*Excluding fuel volumes from purchased intermodal services and excluding heating energy consumption in office buildings in La Spezia.

**When calculating the key performance indicator MWh, the consumption figures for the principal companies (the German EUROGATE terminal operations in Hamburg, Bremerhaven and Wilhelmshaven and the respective service companies at each location, as well as the EUROGATE holding company) were taken into consideration.

***In the non-financial Group report for the 2021 financial year, energy consumption for CONTSHIP Italia was recognised with 49,183 MWh. By contrast in the present version, the previous year's figure has been adjusted to reflect the correct amount of 50,339 MWh.

The most important key performance indicator at CONTSHIP Italia and EUROGATE in the area of emissions is total CO2 emissions in tonnes (t CO2).