Annual Report 2020 Business Performance Highlights of the Luka Koper Group in 2020 Annual Report 2020 1
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1 Annual report 2020 Business performance highlights of the Luka Koper Group in 2020 Annual report 2020 1 Annual report 2020 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 2020 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 2020 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 and/or illegal acts. Members of the Management Board: Dimitrij Zadel Metod Podkrižnik President of the Management Board Member of the Management Board Irma Gubanec Vojko Rotar Member of the Management Board Member of the Management Board - Worker Director Koper, 16 March 2020 Business performance highlights of the Luka Koper Group in 2020 Annual report 2020 3 Table of Contents BUSINESS REPORT ................................................................................................................................................. 4 1 Business performance highlights of the Luka Koper Group in 2020 ............................................................. 5 2 Presentation of the Luka Koper Group and description of the business model........................................... 15 3 Business development strategy ..................................................................................................................... 23 4 Interview with the President of the Management Board ............................................................................... 40 5 Report of the Supervisory Board for 2020 ...................................................................................................... 42 6 Corporate Governance Statement .................................................................................................................. 48 7 Survey of relevant events, novelties and achievements in 2020 ................................................................... 69 8 Relevant events after the end of the financial year........................................................................................ 73 9 Performance analysis ..................................................................................................................................... 74 10 Marketing and sales ........................................................................................................................................ 80 11 Investments in non-financial assets............................................................................................................... 84 12 Managing risks and opportunities.................................................................................................................. 87 13 European projects ........................................................................................................................................... 93 14 Information technology ................................................................................................................................... 95 15 The LKPG Share ............................................................................................................................................... 96 16 Management system ..................................................................................................................................... 100 SUSTAINABILITY REPORT .................................................................................................................................... 102 17 On the Sustainability Report .......................................................................................................................... 103 18 Luka Koper and sustainable development guidelines ................................................................................. 108 19 Stakeholders of Luka Koper ......................................................................................................................... 115 20 Materiality matrix .......................................................................................................................................... 120 21 Corporate integrity, human rights, prevention of corruption and compliance .......................................... 123 22 Safe and healthy port environment .............................................................................................................. 130 23 Care for employees ....................................................................................................................................... 141 24 Long-term sustainability of the natural environment ................................................................................ 152 25 Social environment ........................................................................................................................................ 217 26 Sustainable relationship with suppliers ....................................................................................................... 219 27 Sustainable relationship with customers ..................................................................................................... 222 28 GRI content index (according to 2016 standards) ........................................................................................ 223 FINANCIAL STATEMENTS .................................................................................................................................... 236 29 Financial statements of Luka Koper, d. d. and Luka Koper Group ............................................................ 237 30 Notes to Financial Statements ...................................................................................................................... 243 31 Summary of significant accounting policies and disclosures...................................................................... 246 32 Additional Notes to the Income Statement .................................................................................................. 258 33 Additional Notes to the Statement of Financial Position ............................................................................. 264 34 Statement of Accumulated Profit ................................................................................................................. 311 35 Relevant events after the end of the financial year...................................................................................... 312 36 Independent Auditor’s Report ....................................................................................................................... 313 BUSINESS REPORT Business performance highlights of the Luka Koper Group in 2020 Annual report 2020 5 1 Business performance highlights of the Luka Koper Group in 2020 The year 2020 was marked by the emergence of the SARS-CoV-2 coronavirus and the consequent outbreak of the COVID-19 pandemic, which significantly changed operating conditions and aggravated the situation. The pandemic has affected the economy around the world. It has also severely shaken global trade flows and logistics routes. All this affected the operations of the Luka Koper Group, which otherwise managed the consequences of the pandemic well from both a health and business point of view. Being considered strategic infrastructure, the Port of Koper has been fully functioning all the time and providing all services to its customers. Transhipment of two strategic commodity groups, containers and cars, remained stable, especially container throughput, which in 2020 was only 1 percent (in TEU) behind the throughput achieved in 2019 and just a bit below its planned volume. In the field of vehicles, the Luka Koper Group recorded a smaller drop in throughput than comparable Mediterranean ports, the gap with 2019 gradually decreasing in the second half of the year. The decline in transhipment of dry bulk and bulk cargoes was additionally