Fjord Line AS signed annual report 2021

Annual report 2021 ⁄⁄ Fjord Line

ANOTHER CHALLENGING YEAR CAUSED BY THE GLOBAL PANDEMIC ANNUAL REPORT 2021

01 ⁄⁄ CEO LETTER

Another challenging year caused by the global pandemic The global pandemic continued to play a significant role and 2021 was another year of uncertainties and challenges significantly impacting Fjord Line. Despite the immense challenges, Fjord Line continued to invest in improved customer experiences and responsible maritime travel. We proudly introduced Fjord Line's brand-new catamaran HSC Fjord FSTR in service in June 2021.

The global pandemic and the strict government-imposed travel restrictions continued to be the cause of our challenges in 2021 as it has been since the outbreak of the pandemic in March 2020. The pandemic impacted all of Fjord Lines businesses and during this challenging period, our focus within the travel restrictions continued to be securing a responsible business continuity for our customers, and the health and safety of our employees and customers. The global pandemic continued to significantly impact also this year's financial result and our overall focus has been to safely navigate Fjord Line through yet another year of the global pandemic.

Our employees have throughout the pandemic shown continued efforts, commitment and loyalty. We have made changes to the way we operate, and our employees have adapted to these changes, always with a strong focus on securing the health and safety of our customers and employees. Your ability to continuously being innovative and develop our business in a fast changing and challenging business environment is crucial for Fjord Line navigating through the global pandemic and at the same time securing our development.

Fjord Line has throughout the pandemic contributed to society by a maintained and crucial emergency ferry operation, primarily for cargo, between Denmark and Norway - securing goods flowing despite very challenging conditions.

As of April 30th 2021, Fjord Line returned to normal route schedule between Denmark and Norway (Hirtshals to Stavanger/Bergen/Langesund), followed by the introduction of Fjord Line's brand-new catamaran HSC Fjord FSTR on June 25th 2021 between Hirtshals and Kristiansand. On July 2nd 2021 Fjord Line also returned to normal schedule between Norway and Sweden (Sandefjord to Strömstad) and was hereby able to resume close to normal operations on all routes, but still affected by several COVID-19 restrictions. New COVID-19 government restrictions were imposed towards the end of 2021 and most of Fjord Line's routes and sailings were again discontinued. As of December 31st 2021, only the emer-

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gency ferry operation between Denmark and Norway was in operation. This continued until March 2022, when the government-imposed travel restrictions were lifted in Scandinavia and Fjord Line could resume to ordinaire operation again.

Fjord Line is committed to utilize advantages of new technologies to improve customer experiences and ensuring responsible maritime travel. During 2021, we have continued to invest in our digital platforms to improve the customer journey by offering improved customer online booking, marketing automation and self-checkin and boarding. We proudly introduced Fjord Line’s brand-new catamaran HSC Fjord FSTR in service in June 2021. HSC Fjord FSTR, replacing HSC Fjord Cat between Hirtshals and Kristiansand, operates with 32% less GHG emission per passenger and is now the fastest sea-operation between Denmark and Norway with only 2 hours and 15 minutes sailing time. Fjord Line continue to be a leading contributor towards sustainable and innovative ferry operations to the benefit of our customers, stakeholders, and our society.

On behalf of Fjord Line, I want to extend my gratitude to our stakeholders for your crucial commitment and confidence in Fjord Line - owners, long-term lenders, customers, business partners, and governments - especially through the critical COVID-19 compensation schemes.

Our stakeholders continuous support is crucial when navigating Fjord Line successfully through the global pandemic and to secure the future development of the Group. Fjord Line has shown that we are a viable and resilient ferry company and an important employer in the Nordic labour market, able to respond to changes in the greater business environment, our customers’ demands, and adapt to challenges that affect our operations.

The terrible and devastating war in Ukraine has caused new challenges for our business in 2022 due to the significant volatile and increased fuel price development since the invasion started. Fuel - and particularly natural gas - is a major cost component for Fjord Line and the recent price development is posing a consequential

Annual report 2021 ⁄⁄ Fjord Line

CONTENT 01 CEO LETTER 02 THIS IS FJORD LINE Fjord Line in brief Our vision and mission Responsible maritime travel 03 PREPARING FOR A NEW TOMORROW Introducing Fjord FSTR Connecting Norway and Continental Europe Customers experiences Digital marketing Brand identity

I want to extend my gratitude to our stakeholders for your crucial commitment and confidence in Fjord Line financial impact for the Group. Furthermore, the global pandemic and the consequences continued to play a significant role for Fjord Line in 2022. Fjord Line will continue to take necessary actions to address challenges that affect our business.

Fjord Line was well positioned before the global pandemic and so we remain. This as a consequent of strong commitment and support from our owners as well as engaged employees empowered to deliver high quality customer experiences, supported by our market leading position within environmental & sustainable solutions and strong focus on responsible business operations (ESG).

Our ambitions are clear: We want to become Scandinavia's best, most loved, and profitable ferry company.

Fjord Line aim to achieve this by providing the best experience throughout the customer journey, further strengthen our positioning & brand awareness, and finally be an industry leader within sustainable, innovative, and energy efficient ferry operations to the benefits of our stakeholders and society.

Welcome onboard!

Brian Thorsted Hansen, CEO

04 RESPONSIBLE MARITIME TRAVEL Approach to sustainability Material aspects Environmental Social Governance Metrics Sustainability risks and opportunities 05 REPORT FROM THE BOARD OF DIRECTORS 06 CONSOLIDATED FINANCIAL STATEMENTS 07 FJORD LINE AS FINANCIAL STATEMENTS 08 AUDITORS REPORT

02 ⁄⁄ THIS IS FJORD LINE

We aim to become ­Scandinavia's best, most loved and profitable ferry company

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Annual report 2021 ⁄⁄ Fjord Line

5

02 ⁄⁄ THIS IS FJORD LINE

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Annual report 2021 ⁄⁄ Fjord Line

THIS IS FJORD LINE FJORD LINE IN BRIEF Fjord Line is Norway’s second largest shipping company for international passenger traffic and freight transportation between Norway, Sweden and Denmark. The company was founded in 1993 and is a relatively young ferry company on a significant growth path with a 21% market share (2019).

The global COVID-19 pandemic affected Fjord Line significantly in 2021. The strict government-imposed travel restrictions throughout Norway, Sweden and Denmark significantly impacted our operations of passenger traffic and freight transportation. In Fjord Line, our main focus in our operations during the pandemic have been to secure the health and safety of our employees and customers, while ensuring a responsible business continuity for our customers.

We develop our business in order to remain a viable and resilient company.

During these challenging and extraordinary times, Fjord Line maintained an essential and critical ferry operation – at times only operating in freight-only mode between Kristiansand and Hirtshals. Through this important emergency operation, Fjord Line se-

cured an essential and critical supply chain and sea bridge between Norway and Continental Europe. We see this as an important part of our societal responsibility.

In a normal year (2019) our 650 employees transport over 1.4 million passengers and 65.500 freights units annually. In 2021, passenger traffic was reduced to around 511.000 passengers and freight reduced to 55.800 units.

Fjord Line operates the ferries MV Bergensfjord and MV Stavangerfjord, sailing between Bergen, Stavanger, Hirtshals and Langesund, MV Oslofjord sailing between Sandefjord and Strömstad, and the newly built HSC Fjord FSTR between Kristiansand and Hirtshals. MV Oslofjord was reflagged in spring 2021 to fly the Norwegian flag, whilst all other vessels fly the Danish flag.

Fjord Line is headquartered in Egersund with offices in Hirtshals, Bergen, Stavanger, Kristiansand, Langesund, Sandefjord and Strömstad.

OUR VISION AND MISSION Fjord Line’s vision is to become Scandinavia’s best, most loved and profitable ferry company.

Fjord Line is based on sound business values. Everything we do is with vigour, responsibility, respect, and commitment and we strive to give our customers a real sense of joy, passion, and outstanding service every time.

has been difficult during the pandemic. At the peak of the crisis, 90 percent of our business disappeared.

Throughout the pandemic Fjord Line has proven its resilience and continue to be a leading contributor towards sustainable and innovative ferry operations to the benefits of our customers, stakeholders and our society.

Fjord Line’s mission is to move people; not just physically, but also emotionally. However, moving people

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02 ⁄⁄ THIS IS FJORD LINE

Through strong efforts to develop a modern fleet, Fjord Line will continue to evolve to meet the expectations of both customers, stakeholders, and society

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Annual report 2021 ⁄⁄ Fjord Line

RESPONSIBLE MARITIME TRAVEL Fjord Line’s vision to become Scandinavia’s best, most loved and profitable ferry company includes a strong strategic focus and commitment towards responsible business operations & maritime travel.

Our focus on responsible business operations spans environmental, social, and governance (ESG) aspects.

On a global scale, shipping accounts for almost 3% of total greenhouse gas (GHG) emissions, making our contribution towards reducing climate change the most important sustainability challenge for the industry this decade. Our focus on environment and GHG emissions is clear. Since 2008 we have improved our carbon-efficiency (CO2 per transport work) by 57%. Going forward, our target is to improve energy efficiency by an additional 20% from 2019 to 2030. Our strong improvements are primarily related to our investments in the liquid natural gas (LNG) vessels MV Stavangerfjord and MV Bergensfjord. The LNG technology provides significant environmental benefits. Compared to diesel engines, CO2 emissions are up to 23% lower when using LNG-engines. The exhaust fumes from the on-board LNG-engines have virtually no sulphur and soot content and consequently emit no visible smoke, while nitrogen oxide emissions (NOx) are reduced by as much as 91%. The sister ships received the highest Environmental Ship Index (ESI) score in 2015. This was achieved in competition with approximately 3,200 other ships. Our newest vessel HSC Fjord FSTR replaced Fjord Cat on the Kristiansand-Hirtshals route in 2021 and enables a fast

and comfortable crossing, while enabling a relative carbon reduction of up to 32% CO2 per passenger compared to its predecessor Fjord Cat. Parallel to our environmental stewardship, we aim to be a positive contributor to society and are committed to conducting business with high ethical standards. Among other things, this includes a relentless focus on the health, safety and wellbeing of our employees and customers. We provide regular safety and service training to maintain and develop the skills of our workforce. We have several systems in place to support sound and ethical behavior, including a mandatory code of conduct and anonymous reporting channels for non-compliance of any kind. Lastly, we recognize that our impact extends beyond the boundaries of our own firm. Our supplier code of conduct ensures that our suppliers are familiar and adhere to our standards.

Going forward, we are strongly committed to maintain stewardship across all ESG dimensions and we will continue our investment in energy efficiency and eco-friendly services to meet the market demands and secure our market leading position within environmental, sustainable, and high-quality services.

ENVIRONMENTAL BENEFITS by choosing to travel with Fjord Line instead of by road

100% less SO2

98%

less PM

91%

less NO2

23%

less CO2

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02 ⁄⁄ THIS IS FJORD LINE

2018

2019

2020

2021

Financials MNOK

MNOK

424,9

350

1529,3

1600

400 335,5

1613,0

1400

300

1200

250

1000

231,2

800

200 144,6

150

729,0

799,0

600

100

400

78,8

200

50

14,2

0

-141,1

-209,2

⁄⁄ EBITDA

⁄⁄ REVENUE

Volumes Compared to the pre-covid year of 2019

Total

2018

2019

2020

2021

Cars

417 000

436 800

149 400

179 400

Passengers

1 386 700

1 429 900

484 500

510 500

Freight units

66 200

65 500

50 200

55 800

3 330

3 441

1 676

2 461

Crossings

100%

0

⁄⁄ EBT

100%

100%

100%

100%

75% 50% 25%

CARS

PASSENGERS

FREIGHT UNITS

CROSSINGS

Market shares 40% 35%

25%

37,2

36,8

30% 29,5

29,3

30,9

30,3

20%

27,3 21,0

21,2

23,3

23,9

31,8

30,8

24,4 21,2

22,3

15% 10% 5% 0% CARS

PASSENGERS

FREIGHT UNITS

CROSSINGS

The market is defined as all volumes on routes between Norway-Denmark and Norway-Sweden. Source: Shippax

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Annual report 2021 ⁄⁄ Fjord Line

ROUTES AND VESSELS MV Bergensfjord

MV Stavangerfjord

Bergen Oslo Sandefjord Langesund

Stavanger HSC Fjord FSTR

Kristiansand essel New v er 2021! m sum

Strømstad

Hirtshals

MV Oslofjord

2h

BERGEN–STAVANGER

……………… 5h

STAVANGER–HIRTSHALS HIRTSHALS–LANGESUND

………

SANDEFJORD–STRØMSTAD

6h

12h

30min

11h 30min

………

KRISTIANSAND–HIRTSHALS

4h

4h 30min

… …

2h 15min 2h 30min

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02 ⁄⁄ THIS IS FJORD LINE

OUR VESSELS Built

1993/2015

2021

1350

1200

Seats

214

1350

1200

Cabins

370

–

–

4

–

–

Beds Cars Loading meters car deck Crew Range – fully bunkered

1370

–

–

600

370

410

1400

1740

1818

70–100

70

22

2500 NM

2350 NM

780 NM

Length

170 m

134 m

109 m

Width

28 m

24 m

30,5 m

Height

42 m

41,2 m

29 m

Draught

6,5 m

5,7 m

3,75m

30.000 PS

15.700 PS

51.495 PS

25 knots

18 knots

40,5 knots

Horse power Maximum speed Standard speed Travel time Gross tonnage Currency

21,5 knots

16 knots

37 knots

from 4,5–18 hrs

2 hrs 30 min

2 hrs 15 min

25.000

17.851

11.888

DKK

NOK

DKK

219347000/219348000

219002929

220574000

Commander Buffet

362 seats / 620m2

130 seats / 385m2

–

Oasis Garden Café

139 seats / 178m

314 seats / 590m

–

Grieg Brasserie

62 seats / 100m

–

–

Fjord Lounge

189 seats / 390m2

–

–

Pier 42 Sportsbar

104 seats / 105m2

–

–

Fjord of Coffee

–

286 seats / 430m2

–

Fjord of Beach Bar

–

42 seats / 100m

–

Sun Bar Sky Bar

MMSI number

FACILITIES

HSC Fjord FSTR

1500

Handicap cabins

RESTAURANTS

MV Oslofjord

SF 2013/ BF2014

Guests

GENERAL

MV Stavangerfjord/ MV Bergensfjord

2

2

2

2

–

286 seats / 465m

2

–

–

120 seats / 400m2

–

Bungalow snacks and drinks

–

202 seats / 360m

Lounge

–

–

184 seats / 420 m2

Bistro

–

–

186 seats / 345 m2

Café

–

–

404 seats / 575 m2

Taxfree

500m2

1800m2

280 m2

Casino

Yes

Yes

Terrace on deck 3

–

58 seats / 170m

Conference Area

5 rooms / 56–154m

2

– 2

–

2

–

– –

4 medium / 70x100x75 4 large / 100x100x75 4 extra large / 120x100x160

4 cages / 1m3

–

Yes

Yes

Yes

Dog Hotel – cages Kids Area

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Photo: Fotografen AS.

INFORMATION

Annual report 2021 ⁄⁄ Fjord Line

WE

ARE

GREEN

OVERNIGHT CRUISE MV STAVANGERFJORD

DECK 7 – SKY BAR

Deck 7 Deck 6

Deck 10

DECK 9 – SUN DECK & CABINS

DECK 5 – KIDS ZONE, BUNGALOW & TAXFREE SHOPPING

Deck 5

Deck 9

DECK 8 – CABINS

DECK 4 – SUN BAR, OUTSIDE AREA & TAXFREE SHOPPING

Deck 4

Deck 8

Deck 3

Deck 7

Deck 2

Deck 6

Deck P

Deck 5

Deck 1

Deck 4

DECK 10 – OUTSIDE AREA, BAR & CABINS

DECK 7 – RESTAURANTS, CASINO, KIDS ZONE, RECEPTION RECEPTION,&BARS AND ENTERTAINMENT DECK 3 – KIDS ZONE, BAR, CASINO, RESTAURANTS DECK 6 – TAXFREE SHOPPING DECK 5 to 3 – CAR DECK DECK 2 to 1 – CAR DECK

Deck 3 Deck 2 Deck 1

WE

ARE

GREEN

OVERNIGHT CRUISE MV BERGENSFJORD

DECK 3 – RESTAURANT, KIOSK

Deck 3

DECK 2 – TAXFREE SHOPPING, CAFÉ

DECK 10 – OUTSIDE AREA, BAR & CABINS

Deck 2

Deck 10

Deck 1

DECK 1 – CAR DECK DECK 9 – SUN DECK & CABINS

Deck 9

DECK 8 – CABINS

Deck 8

DECK 7 – RESTAURANTS, CASINO, KIDS ZONE, RECEPTION, BARS AND ENTERTAINMENT

Deck 7

DECK 6 – TAXFREE SHOPPING

Deck 6

DECK 5 to 3 – CAR DECK

Deck 5 Deck 4 Deck 3 Deck 2 Deck 1

DAY CRUISE MV OSLOFJORD

DECK 7 – SKY BAR DECK 3 – RESTAURANT, KIOSK DECK 2 – TAXFREE SHOPPING, CAFÉ

Deck 7

DECK 5 – KIDS ZONE, BUNGALOW & TAXFREE SHOPPING DECK 4 – SUN BAR, OUTSIDE AREA & TAXFREE SHOPPING

DECK 1 – CAR DECK DECK 3 – KIDS ZONE, BAR, CASINO, RECEPTION & RESTAURANTS

Deck 6 Deck 3 Deck 5 Deck 2 Deck 4 Deck 1 Deck 3 Deck 2

DECK 2 to 1 – CAR DECK

Deck P Deck 1

DAY CRUISE HSC FJORD FSTR

GREEN

WE

ARE

BRIDGE DECK UPPER DECK DECK 10 – OUTSIDE AREA, BAR & CABINS

MEZZANINE DECK MAIN DECK

DECK 9 – SUN DECK & CABINS DECK 8 – CABINS

Deck 10 Deck 9 Deck 8

DECK 7 – RESTAURANTS, CASINO, KIDS ZONE, RECEPTION, BARS AND ENTERTAINMENT

Deck 7

DECK 6 – TAXFREE SHOPPING

Deck 6

DECK 5 to 3 – CAR DECK

Deck 5 Deck 4 Deck 3 Deck 2 Deck 1

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Annual report 2021 ⁄⁄ Fjord Line

PREPARING FOR A NEW TOMORROW 15

The state-of-the-art high-tech vessel operates the route between Hirtshals and Kristiansand.

INTRODUCING FJORD FSTR Fjord Line’s brand-new catamaran HSC Fjord FSTR was delivered in February 2021. The stateof-the-art high-tech vessel operates the route between Kristiansand and Hirtshals and doubles the capacity on the fastest sea route between Norway and Denmark with its 2 hours and 15 minutes across the Skagerrak.

HSC Fjord FSTR replaces HSC Fjord Cat on the route. Compared to her predecessor, HSC Fjord FSTR offers an improved onboard experience.

Passengers can choose between three different restaurants, make use of a separate children's area and enjoy a larger duty-free shop.

The ship is built with several innovative features that improve both its seaworthiness and the guests' comfort on board. For example, HSC Fjord FSTR has a new hull shape that minimizes fuel consumption and also offers a smoother journey when sailing across the Skagerrak.

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Annual report 2021 ⁄⁄ Fjord Line

FACTS HSC FJORD FSTR Horsepower: 51.495 PS Knots: 37 Lenght: 109 meter Width: 30,5 meter Max passengers: 1 200 Maximum number of cars: 410 Transit time: 2 hours and 15 minutes

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CONNECTING NORWAY AND CONTINENTAL EUROPE Connecting Norway and Continental Europe for both passengers and freight has been important throughout Fjord Line's history.

We transport all types of freight daily - from lorries, semi-trailers, special loads as long/wide/heavy, and trailers to imported cars.

Offering efficient, flexible, and high-quality sea transport of goods is an important part of Fjord Line’s business. Our focus is to provide high-quality customer tailored services to support our customers and their business.

The importance of maintaining critical freight transportation to secure vital goods are flowing, when boarders have been closed during the global pandemic, has been reinforced.

Despite the pandemic, we have been seeing a continuous high demand for freight transportation from our

•

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customers also in 2021. Fjord Line has throughout the pandemic contributed to society by a maintained and crucial emergency ferry operation between Hirtshals in Denmark and Stavanger in Norway - securing goods flowing despite very challenging conditions.

Through this operation, we have been able to offer a reliable freight operation for our customers to keep an essential supply line between Norway and Continental Europe open even when the pandemic placed restrictions on passenger traffic.

Our customers have, despite the changes in our sailing schedules as a consequence of the strict government-imposed travel restrictions, shown us an incredible support in the challenging periods.

The pandemic has emphasised the key role Fjord Line plays in society by providing services between coastal communities and we are proud of the role we play in connecting Norway and Continental Europe, also during the global pandemic.

Annual report 2021 ⁄⁄ Fjord Line

Our focus is to provide high-quality customer tailored services to support our customers and their business.

• Machine • Vehicles • Other • Meat • Food

6% 38%

16% Bergen

2021

Oslo

505 462

Sandefjord Stavanger

13%

tons

Kristiansand

• Fish

20% • Steel • Metal

Langesund Strømstad

Hirtshals

7%

• Building materials

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We aim to give our customers a real sense of joy, passion, and outstanding service – every time

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Annual report 2021 ⁄⁄ Fjord Line

CUSTOMER EXPERIENCES The government-imposed travel restrictions put an abrupt stop to Fjord Line’s passenger traffic and operation also in 2021. The COVID-19 pandemic required us to make changes. However, we spent the heavily restricted first part of 2021 purposefully to be well-prepared for a reopening of society and our passenger travel services, and to improve the customer experience.

An important priority in 2021 was to serve our customers as well as possible. During the pandemic we continued to find and develop new ways to communicate and meet our customers, especially through our digital channels.

In general, we believe the pandemic has made customers more conscious decision makers. Even more than before, customers now prefer businesses that demonstrate responsible conduct and instil trust through their actions.

The impact of COVID-19 on customer behaviour has been immediate and public safety has become a top priority for companies and costumers alike. We believe that a good customer experience includes a continued focus on individual health and safety requirements. Additionally, the pandemic has forced our customers and the society to become digital. This gives us a challenge and opportunity to meet these expectations by excelling our own digital capabilities.

The key to be preferred – and loved – is the experiences our customers gain through the entire customer journey. The experience – from their impressions of Fjord Line online, booking, through their voyage to their destination, onboard, and even after they have returned home – must be great and unique – and create value for our customers. We work hard to continuously improve our customers’ journey and we aim to give our customers a real sense of joy, passion, and outstanding service - every time.

Our loyal customers choose to travel with us again and again which make us optimistic for the future.

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DIGITAL MARKETING In Fjord Line we believe that investing in our customer relationships in times of difficulty will be repaid with customer loyalty. Research has shown that customers are more conscious in their decision-making and increasingly pick brands they deem trustworthy.

are by far the largest group, but other nationalities are growing rapidly. With an increase in digital communication to the international market, the number of members from Continental Europe is expected to grow.

With the lack of physical interaction we have focused on further developing our digital marketing to attract new customers and increase loyalty among existing customers. We have improved our search engine optimization (SEO), search engine marketing (SEM), content marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing and display advertising.

FJORD CLUB MEMBERS APROX. 500.000 PER 31.12.2021

The Covid-19 pandemic has also amplified the need for easy access to services and information for our customers, and we have used social media and newsletters to maintain a robust communication line with them and other stakeholders during the pandemic. Making sure that all questions are responded to quickly and unambiguously has been an important priority for us this year.

Fjord Club is our way of appreciating those who like to travel with Fjord Line. The number of members in Fjord Club has increased during the pandemic. Our Fjord Club members are our most loyal customers, and we constantly strive to improve our offerings to these customers with the best products at the best terms. Norwegians

70%

NORWAY

11%

DENMARK

11%

GERMANY

4%

NETHERLANDS

In Fjord Line we believe that investing in our customer relationships in times of difficulty will be repaid with customer loyalty.

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4%

OTHERS

Annual report 2021 ⁄⁄ Fjord Line

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Annual report 2021 ⁄⁄ Fjord Line

BRAND IDENTITY The further development of a strong brand is a central part of our strategy. We aim to be the preferred choice for our customers..

For Fjord Line, a strong brand identity means that we: • Communicate our business personality and shape our customers’ perceptions of who we are.

• Project the expectations and promises we extend to our customers in terms of quality, service, reliability, and trustworthiness.

• Create trust and loyalty from those who do business with us.

• Help the audience differentiate us from our competitors.

• Positively influence our customers’ purchasing decisions.

During the pandemic we have had less physical contact with our customers than before and consequently, we have strengthened the digital dialogue with our customers and partners, for instance by involving our customers via social media and newsletters.

We aim to be the preferred choice for our customers.

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04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

We are committed to do our part in curbing global temperature increase to 1.5 degrees and to be a partner to society.

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Annual report 2021 ⁄⁄ Fjord Line

RESPONSIBLE MARITIME TRAVEL

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04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

APPROACH TO SUSTAINABILITY Fjord Line’s vision to become Scandinavia’s best, most loved and profitable ferry company includes a commitment to sustainability leadership. One of the most important sustainability challenges affecting maritime transport today is decarbonization. With the investment in our Liquid Natural Gas (LNG) ships, Stavangerfjord and Bergensfjord in 2013/14, Fjord Line were pioneers in carbon-efficient marine transport. Since 2008 we have improved our carbon efficiency by almost 50% and established a clear environmental leadership within our peer group. We do not rest on our laurels, however, and will continue to improve to further strengthen our sustainability

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leadership going forward. Our goal is to increase our energy efficiency by an additional 20% from 2019 to 2030.

Our sustainability perspective includes not only environmental but also social and governance aspects.

We aim to be a responsible contributor to society and recognize that our impact extends beyond our own operations. Improving the ESG performance of the company is a continuous effort and although 2021 was an abnormal year due to Covid-19 we used the period to make significant contributions to improve our operations and ESG impact throughout the year.

Annual report 2021 ⁄⁄ Fjord Line

MATERIAL ASPECTS

HIGH

We focus on what matters the most. We engage in stakeholder dialogue to evaluate which topics are most important to our stakeholders. We also identify topics which can have a material economic, environmental, or societal impact. Fjord Line’s primary stakeholders include customers, employees, lenders, and owners.

Climate change

Stakeholder importance

Material and waste management

Human rights and labor rights

Health, safety and wellbeing

Business ethics and anti-corruption

Learning and development

Air quality Diversity Pollution to sea

MODERATE

Responsible procurement

HIGH

Significance to economic, environmetal or societal impact

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04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

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Material aspect

Description

SDG

Climate change

Global warming remains one of humanity's biggest challenges to sustainable development.

Shipping contributes to ca. 3% of global GHG emissions. The global shipping regulator IMO has defined a GHG strategy to cut GHG emissions by 50% from 2008 to 2050. EU is pursuing a similar path to cut CO2 emissions in EU by 55% by 2030.

7, 13

Air quality

In addition to greenhouse gases, combustion of fuel causes air emissions such as NOx, SOx and particulate matter (PM), which can cause negative environment and health impact.

3

Pollution to sea

Potential pollution to sea from shipping operations include ballast water, black and grey water, waste, plastics, toxins and risk for oil spills. While several of these pollution sources are strictly controlled in maritime regulation, Fjord Line is committed to preventing and reducing pollution as much as possible

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Materials and waste management

Materials use in our operations include both goods for sale to our guests (e.g. food and tax free goods) and hardware for use in our operations (e.g. from ship investment and maintenance).

Impact from materials use can be improved by reducing overall materials consumption, increasing share of recycling and adapting a circular perspective on material use.

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Human rights and labor rights

Human rights and labor rights are gaining increasing stakeholder attention. Fjord Line exclusively employ people in the Nordics, subject to strong regulation and reporting obligations.

Hence, our compliance with such regulation ensures a good baseline performance on human and labor rights. However, we indirectly employ people through our suppliers and we have the power to influence how rights are upheld among our suppliers in other parts of the world.

3

Diversity

Diversity includes ensuring equal opportunity for people with various background (gender, age, culture, etc.). Stakeholder engagement for diversity, as well as reporting requirements, are increasing.

5

Health, safety and wellbeing

A safe and healthy environment at sea and on shore for our employees and customers is a fundamental requirement for a sustainable business. We are committed to maintaining high health, safety and wellbeing and to prevent accidents and hazards.

3

Learning & development

Employee training and opportunities for personal and career development are important to maintain high employee motivation, to contribute to the development of maritime competence and to enable good customer experiences. Training is also an integral part in ensuring safe, efficient and sustainable operations.

Business ethics and anti-corruption

Business ethics include management of risks related to anti-competitive practices, accounting, taxation, bribery, corruption, money laundering, IP rights and sanctions.

Responsible procurement

We recognize that our responsibility extends to our suppliers and that we can influence sustainable operations through our procurement. This includes ensuring our suppliers are familiar with our standards and that adherence to those standards are made effective through our procurement operations.

Annual report 2021 ⁄⁄ Fjord Line

ENVIRONMENTAL Shipping is the most environmentally friendly mode of transport over long distances. Nevertheless, shipping accounts for almost 3% of global greenhouse gas (GHG) emissions. Regulatory bodies, such as the International Maritime Organization (IMO) and the EU, recognize the need for decarbonization of shipping to support the Paris agreement. At Fjord Line we are committed to do our part in curbing global temperature increase to 1.5 degrees and to be a partner to society.

Our main goal is to improve our carbon efficiency, defined as average efficiency ratio (AER)*, by 56% in 2030 compared to 2008 levels. This is more ambitious than IMO’s target of 40% in the same period. We have already made significant investments into technology and operations to improve our energy efficiency since 2019. Going forward, our goal is to improve AER with an additional 20% from 2019 to 2030.

Fjord Line fleet AER (gCO2/gt*nm)

35 30 25 20 15 10 5

20 0

8 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 20 26 20 27 20 28 20 29 20 30

0

Benchmark Poseidon Principles

[Insert definition of AER]: The following formula is used to calculate AER: AER =

∑i Ci ∑i gt Di

Where: Ci is the carbon emissions for voyage i, using the fuel consumption and carbon factor of each type of fuel used. gt is the gross tonne of the vessel.

Di is the distance travelled on voyage i.

Fjord Line historical AER

Fjord Line target AER

What Is the International Maritime Organization (IMO) The IMO is a specialized agency of the United Nations that is responsible for measures to improve the safety and security of international shipping and to prevent marine pollution from ships. The IMO sets standards for the safety and security of international shipping. It oversees every aspect of worldwide shipping regulations, including legal issues and shipping efficiency.

In their GHG strategy, the IMO has formulated a goal to cut annual absolute GHG emissions from international shipping by at least half from 2008 to 2050. The strategy requires a reduction in carbon intensity emissions (i.e. CO2 emissions per transport work) by an average of 40% by 2030 and 70% by 2050, both compared to the 2008 baseline.

What Is the International Maritime Organization («IMO») 31

04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

MV Oslofjord run on Marine Gasoil (MGO) which emits considerably less Sulphur emissions than traditional marine fuels.

PIONEERS IN SUSTAINABLE SHIPPING Our fleet has class-leading sustainability profile.

MV Bergensfjord and MV Stavangerfjord run on LNG which produces up to 23% lower carbon emissions compared to diesel engines. Nitrogen oxide emissions (NOx) from these vessels are as much as 91% lower and emissions from Sulphur (SOx) and soot (PM) are virtually eliminated. In 2015 this led to the sister ships receiving the highest Environmental Ship Index (ESI) score in 2015, in competition with approximately 3,200 other ships. Electricity for use onboard is produced by converting waste heat from the exhaust gas into steam-generated energy. Thus, MV Bergensfjord and MV Stavangerfjord cover their electricity needs for cabins and public spaces.

HSC Fjord FSTR and MV Oslofjord run on Marine Gasoil (MGO) which emits considerably less Sulphur emissions than traditional marine fuels such as Heavy Fuel Oil (HFO). The catamaran HSC Fjord FSTR, is a new-build to replace HSC Fjord Cat and operates with an estimated 32% less GHG emissions per passenger compared to its predecessor.

MV Oslofjord relies on land-based power when in harbor in Sandefjord. MV Bergensfjord and MV Stavangerfjord are not applicable for land-based power as they are in continuous operation. HSC Fjord FSTR connects to land-based power in Kristiansand.

In 2019, we started implementing AI-assisted tools onboard to provide the captains and officers with decision support regarding the most optimal energy efficiency voyage operation of the vessel, this system has shown a 5% fuel reduction and is now being rolled out on all of Fjord Lines fleet.

32

Fjord Line contributes towards Sustainable Development Goal number 7, “Affordable and Clean Energy” and number 13” Climate action” by using cleaner fuels, investing in new types of fuel, and reducing energy consumption in our operations. Moving towards a world that relies mostly on renewable energy is essential to protect human wellbeing and ensure sustainable lives for all. At Fjord Line we are proud to say we are pioneers in this field.

Fjord Line contributes towards Sustainable Development Goal number 3, “Good Health and Well-Being”, by reducing the amount of air pollutants from our ships.

In 2020, an additional and immediate focus became to help stop the spread of the COVID-19 disease. Good health is fundamental to good lives: our employees, customers, and humans in general. It is in our best interest to do our part to contribute towards the well-being for all.

Annual report 2021 ⁄⁄ Fjord Line

IMPROVE CO2 EFFICIENCY BY 20% FROM 2019 TO 2030 Roing forward, we will continue to improve operating and technical aspects to our fleet and operations, to continue our positive momentum of increasing energy efficiency.

To meet our target of a 56% reduction in GHG emissions by 2030 compared to 2008 levels we will need even greener fuels than LNG. Fjord Line is now evaluating next generation fuels with zero or limited CO2 footprint. One of the alternatives we are looking into is biogas. In 2020 we entered a joint venture to produce liquid biogas (LBG) in Denmark, right next to our harbor in Hirtshals. The facility would be able to serve both trucks and ships with liquid biogas and be a critical enabler for the transition to renewable fuels for the transport sector. During 2021 we have advanced the project which, if successful, enables significant reduction of net CO2 for our own operations as well as other transport operators.

Relying on the right type of fuel is of course the most important factor in drastically reducing emissions of both GHGs and air pollutants. However, we must also ensure energy efficient operations through good technical and operational solutions.

In 2020, we invested in a new antifouling system on MV Stavangerfjord which has produced an additional estimated 5% energy savings. We will continue to roll-out low-friction, environmentally friendly antifouling on our fleet, to reduce fuel consumption.

We are continuously trimming operational improvement for check-in, bunkering, loading and unloading of vessels, to reduce turnaround times. Time saved in port can

Fjord Line contributes towards Sustainable Development Goal number 14, “Life Below Water”, by reducing emissions to the ocean, reducing the amount of solid waste we produce, recycle what we can and process what remains on land. Debris and pollutants at and under the ocean’s surface are detrimental to life in the sea.

be used to reduce sailing speed and save fuel. We are also evaluating technical improvement, such as new propeller and rudder designs, to reduce drag and improve efficiency.

Our current fleet is modern with an average age of 13 years. Our oldest vessel MS Oslofjord was built in 1993 and has an estimated service life until 2035. For new builds, we will strive to design vessels based on renewable and carbon neutral fuels. Such fuels could include e.g. ammonia, e-methanol, hydrogen, or battery. We acknowledge that such technologies and infrastructure are not readily available today and there is considerable development of both technology and infrastructure remaining. However, we anticipate they will be available by 2030. We will partner with ship builders, engine manufacturers and classification societies to identify our preferred path to future fleet carbon neutrality.

HSC Fjord FSTR has an innovative hull design that reduces drag and fuel consumption.

33

04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

PROTECTING THE OCEANS AND REDUCE WASTE Protecting the oceans is a primary concern for Fjord Line. All wastewater and sewage is handled according to the most rigorous standards. Fjord Line is complying with the International Convention for the Prevention of Pollution from Ships (MARPOL). With MV Bergensfjord and MV Stavangerfjord we have gone beyond the MARPOL convention and make sure that all wastewater and sewage goes through an approved treatment system before being released. With MV Oslofjord all wastewater and sewage is collected and handled on shore.

We have a continuous focus on reducing the food waste in our onboard restaurants. For example, we have brought down the volume of uneaten food by encouraging our travelers to only help themselves with what they can eat in a nice and friendly manner.

Food waste is being reduced in the galleys as well.

Other waste, such as single use plastics and packaging is also being scrutinized.

We collect, sort, separate and take all solid waste to shore for adequate handling after arrival. In general, we are recycling approximately 25-30% of all our solid waste. Solid waste includes everything from steel to food to packaging and cardboard.

Fjord Line contributes towards Sustainable Development Goal number 12, «Responsible consumption and production», by …

SOCIAL The year 2021 was another year influenced by Covid-19 since the outbreak in early 2020. After temporary recovery periods in the summers of 2020 and 2021 we were once again forced to scale down operations in the fall of 2021. Despite our efforts to retain staff as long as possible we were eventually forced to lay off some personnel.

Sea- and land-based employees regularly conduct safety and emergency drills including lifeboat drills and evacuation exercises. Functional tests of rescue equipment are regularly carried out onboard the ships. We continuously work to reduce the level of work accidents through training and continuous evaluation of our policies and performance.

SAFETY CULTURE Fjord Line is running a program called «No-blame open minded safety culture» and employs a very low threshold for registering accidents. In 2020, 27 work accidents were registered. The majority of accidents were on car deck and in the galley. Of these accidents, zero accidents were considered as serious. These numbers are significantly lower this year compared to last year’s (43 incidents) and reflect reduced operational activity due to the pandemic.

34

HEALTH AND WELLBEING Throughout the year we maintained our high focus on preventing and controlling spread of the Covid-19 virus for passengers and employees. Fjord Line’s ships and terminals were MyCare-approved by DNV-GL in 2020. The framework has been developed to «support companies in assessing, managing and mitigating infection risk in their management systems, business processes and operations». The framework serves as an independent

Annual report 2021 ⁄⁄ Fjord Line

655 EMPLOYEES

MALES

63%

410 MALES ⁄⁄ 245 FEMALES

FEMALES

37%

222 SHORE BASED • 433 SEA GOING STAFF

assurance that our routines for infection control are solid and provides confidence for customers and other stakeholders that we take infection risk seriously.

We monitor sick leave to prevent and reduce absence due to illness. Overall sick leave in the Group was 2.9% in 2021, split on 3.9% for seagoing employees and 1,3% for shore employees. This equals a reduction of 0.7 per cent points compared with 2020 (3.6%). While there is continuous focus on reducing absence rates, overall absence rates are well within targets.

Our bi-annual employee satisfaction survey (MTU) was conducted in 2021 and showed overall good scores on employee satisfaction. Focus areas for improvement

are, among others, trust and friendly work environment. Despite having a zero tolerance for harassment, there is still some prevalence of harassment in the workplace. All focus areas from the MTU are subject to action and follow-up by management.

DIVERSITY AND INCLUSION Fjord Line is continuously working to avoid any form of discrimination based on gender, age, ethnicity etc., and has a zero tolerance for harassment of any kind. As per 31 December 2021, the Group had 655 employees, represented by 410 (63%) male and 245 (37%) female employees. Of the Group’s top management comprising nine directors, two are women.

Fjord Line contributes towards Sustainable Development Goal number 5, “Gender Equality”, by ensuring equal pay for equal work, work actively against any form of discrimination on the basis of gender, work to balance the workforce with regards to gender, encourage women to take leadership positions and include provisions against harassment in our code of conduct.

35

04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

GOVERNANCE At Fjord Line, governance of sustainability topics is integrated with overall corporate governance. The Board of Directors has ultimate responsibility for sustainability and monitors ESG, compliance and HSEQ regularly. Group management is responsible for carrying our operations and development in line with the standards and goals set by the Board of Directors. A separate compliance function is responsible for follow up of compliance and ethics. To ensure independence, the Compliance function reports to the CFO with double line reporting directly to Board of Directors. Fjord Line has several mechanisms in place to manage and monitor compliance with external and internal policies and standards.

MANAGEMENT SYSTEMS The company has a groupwide Safety Management System (SMS) in place. The system is developed in accordance with the international “ISM-code”, to ensure safe management and operation of ships and for pollution prevention. In addition, Fjord Line complies with a number of international regulations aimed at ensuring safe and secure maritime passenger transport.

During 2021, we have worked to prepare implementation of the ISO 14001 standard for Environmental management systems. The process and certification are expected to be completed in 2022.

CODE OF CONDUCT Our code of conduct is founded in human rights as well as the value of diversity and inclusion. It sets out the standards defining how we operate every day and everywhere. The code of conduct governs our relationships with clients, suppliers, stakeholders and each other. It requires all employees to adhere to the highest levels of professional conduct and underpins the reputation and trust Fjord Line commands.

Routines for reporting any breach of our codes of conduct are in place and available for all employees.

Whistleblowers are protected through these routines to ensure that there are no hindrances or risks to file a report.

RESPONSIBLE PROCUREMENT We recognize that our impact extends beyond our own company and that we can impact sustainability topics through our supplier selection and management. Therefore, in 2021 we launched our supplier

36

Annual report 2021 ⁄⁄ Fjord Line

code of conduct. All new suppliers will be subject to compliance with the policy and existing suppliers will gradually be incorporated under the new policy.

RESPONSIBLE CONSTRUCTION AND SCRAPPING OF VESSELS Ethical and sustainable reuse of our vessels is of importance to us. In 2020 HSC Fjord Cat was sold to German shipping company FRS for continued use on the route Sassnitz-Ystad.

When we ordered HSC Fjord FSTR we made sure that it was built according to the Hong Kong international convention for the safe and environmentally sound recycling of ships. This ensures that the ship will not pose any unnecessary risk to human health, safety and to the environment when it reaches end of life.

ANTI-CORRUPTION Fjord Line has working procedures to reduce the risk of corruption. Corruption is a risk especially related to large procurements. We reduce this risk through our procurement policy that calls for tender processes for large purchases and an approval processes that ensures that all such purchases are evaluated objectively and by several people. The whistleblower function is open for reports on suspected corruption related to procurement or otherwise.

37

04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

METRICS Area

Topic

Metric / KPI

General

Number of passengers Number of freight units Total distance traveled by vessels

GHG emissions

Gross emissions GHG per Nm GHG per transport work

Air quality

NOX emissions SOX emissions

Ecological impacts

Number of spills Volume of spills

Water management

Solid waste % recycled

SOCIAL

Employee health, safety and wellbeing

Lost time accidents >24 h (LTA) Sick-leave Average number of employees Diversity (gender distribution)

GOVERNANCE

Oversight and compliance

Number of ordinary board meetings Number of port state control deficiencies

ACTIVITY

ENVIRONMENT

CO2 emissions include scope 1 emissions from ships according to MRV. This includes journeys between EU/EES ports but excludes trips outside EU, e.g. Fjord FSTR delivery voyage.

38

Annual report 2021 ⁄⁄ Fjord Line

Unit Number 12m equivalents Nm CO2-equivalents (metric tons) CO2-equivalents (Kg) AER Metric tons Metric tons Number Cubic meters Metric tons % Number % Number % women / % men

Number Number

2019

2020

2021

1 430 133 65 523 358 534

484 914 50 176 214 626

510 500 55 800 268 435

119 500 333 12,4

71 976 335 10,7

92 693 345 9,9

887 14

318 6

547 12

0 0

0 0

0 0

770 24%

356 28%

446,3 31%

14 3,3% 637 36% / 64%

10 3,6% 474 27% / 73%

11 2,9% 456 37% / 63%

7 13

7 4

7 2

39

04 ⁄⁄ RESPONSIBLE MARITIME TRAVEL

We have a continuous focus on reducing the food waste in our onboard restaurants.

40

Annual report 2021 ⁄⁄ Fjord Line

SUSTAINABILITY RISKS AND OPPORTUNITIES Risk

Increased pricing of GHG emissions

High costs to comply with new environmental regulation

Reduced demand for tourism travel services due to shift in consumer mindset

Opportunity

Modal shift from road/ air to sea transport

Renewable fuels and infrastructure

Type

Policy

Term

Description and mitigation

Short

We have invested heavily in a young fleet with industry-leading sustainability profile. Regulation regarding direct pricing of GHG emissions can potentially change. Such regulation could be quota-based (e.g. EU ETS) or fee-based (e.g.

CO2 fee). Fjord Line follows developments in national and international policy discussions closely.

Medium

Including regulation supporting IMO's GHG strategy, such as EEDI, EEXI and CII, or with EUs climate strategy (e.g. EU taxonomy). Our fleet has passed the EEXI requirements with good margin. With regard to CII, we consider Fjord Line's current fleet well positioned to comply with such regulation in the medium term without need for costly modifications.

Market

Medium

Increasing awareness of environmental footprint may impact tourism-related travel negatively. We believe transparency is critical to maintain credibility in the marketplace and aim to provide good transparency of our environmental footprint and ESG performance.

Type

Term

Mitigation / response

Product & service

Short

Sea transport often provides a relative advantage over road/air transportation in terms of environmental footprint. Increasing awareness of CO2 emissions and the energy efficiency of Fjord Line's fleet may positively impact Fjord Line freight volumes.

Operational

Long

Fjord Line has positive experience from LNG. We now invest in renewable fuels (LBG) and evaluate other alternative fuels from a holistic perspective, including safety, performance, and infrastructure.

Policy

*Term. Short = 1-4 years ⁄⁄ Medium = 5-15 years ⁄⁄ Long = 15 + years

41

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

REPORT FROM THE BOARD OF DIRECTORS

42

Annual report 2021 ⁄⁄ Fjord Line

FJORD LINE AS GROUP THE GROUP Fjord Line AS is the parent company in the Fjord Line Group. The Group is Norway’s second largest shipping company in international passenger traffic and freight transportation between Norway and EU. The Group has one of the youngest and most modern and eco-friendly fleets in the cruise ferry segment in Europe. In 2021 the fleet consisted of four vessels whereof three are flying the Danish flag and one is flying the Norwegian. Two of the Group’s cruise ferries are propelled by liquid natural gas (LNG) which significantly reduces their CO2 emissions relative to diesel. The other two vessels use MGO (marine gasoil). The Group operates three routes between Norway and Denmark, one route between Norway and Sweden, and a domestic route between Bergen and Stavanger.

Fjord Line is headquartered in Egersund with operative offices in Hirtshals, Bergen, Stavanger, Kristiansand, Langesund, Sandefjord and Strömstad.

Average number of employees (FTE) in the Group during 2021 has been 456 (474 in 2020).

With regular and daily departures between seven ports in Norway, Denmark and Sweden, the Group recognizes its important role in the transportation of passengers and goods within Scandinavia and between Norway and the European continent.

The global Covid-19 pandemic has had material negative effect on overall Scandinavian travel activity and Fjord Line’s operations. Fjord Line transported 510,500 passengers and 55,800 freight units in 2021 – a significant reduction compared to a normal year.

The Groups vision is to be the best, most loved and profitable ferry company in Scandinavia. Fjord Line aim to achieve this by providing the best experience throughout customer journey, further strengthen our positioning and brand awareness and, finally, be a leader within sustainable, cost and energy efficient operations. Everything we do is with vigor, responsibility, respect and commitment.

43

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

With Fjord FSTR, Fjord Line doubled the capacity on the crossing between Kristiansand and Hirtshals.

BUSINESS SEGMENTS The Groups revenues arises from three main business areas. All ticket revenues within the Group are generated in business area Travel and consists of transport-, cruise-, group-, package-, and conference ticket revenue streams.

All onboard revenues are generated within business area Onboard Services and includes revenue streams mainly from the retail and food & beverage operations.

Business area Freight generates its revenues from sales and transportation of trucks, trailers, articulated vehicles, specialized or out-sized cargo and on-deck shipments, and from forwarding services.

TONNAGE The cruise ferries MV Stavangerfjord (launched in 2013) and MV Bergensfjord (2014) operate the routes between Bergen – Stavanger – Hirtshals and Hirtshals – Langesund. The cruise ferries are both equipped with fuel efficient LNG-engines, which reduce CO2 emissions and drastically reduce pollutant emissions compared to traditional marine fuels. Since 2019 the Group has operated an energy saving program (ESP) on these two vessels helping reduce emissions even further – by 8% compared to prior to the program’s launch.

The Group has used the shutdown during the pandemic to perform maintenance on the vessels related both to machinery and operation, upgrades of cabins, rebuilding of common areas, painting, replacement of electrical parts such as lights and pumps. The maintenance is well visible to Fjord Line's customers and will improve the customer experience.

44

The day ferry MV Oslofjord (launched in 1993, rebuilt in 2014) is customized for the route Sandefjord – Strömstad and was put into operation as the company’s first vessel on the route on 20 June 2014. The ship was reflagged to fly the Norwegian flag during the spring of 2021. In January 2018 the tax-free shopping area of the vessel was expanded and improved and today MS Oslofjord has one of the largest tax-free shops on a day route worldwide.

The new high-speed catamaran HSC Fjord FSTR was delivered in February 2021 and replaced the HSC Fjord Cat (1998) on the route Kristiansand – Hirtshals. HSC Fjord FSTR serves to meet increased customer demand for higher capacity and comfort,

Annual report 2021 ⁄⁄ Fjord Line

enabling more departures and longer sailing season, while improving environmental efficiency. With HSC Fjord FSTR, Fjord Line doubled its capacity on the crossing between Kristiansand and Hirtshals, both in terms of passenger and car capacity as well as increased capability for freight and heavy transport.

Representing a new technological standard, HSC Fjord FSTR is equipped with 16 electric vehicle charging stations and is the first passenger ferry in Norway to offer this.

HIGHLIGHTS FROM 2021 The global Covid-19 pandemic has had significant impact on Fjord Line’s business operations

since the Covid-19 outbreak in March 2020, and the Group has experienced increasingly adverse effects of the pandemic. The number of travelers has fluctuated in line with government-imposed travel restrictions and border controls.

The management team has throughout the pandemic designed and implemented several extensive measures to adjust the cost base in order to protect the Group’s cash-flow and to secure sustainable operations. These actions consist among others of temporary changes in Fjord Line’s route network and deployment of vessels, as well as layoff of personnel and other robust cost reductions in order to adjust the cost base to the present market demand.

45

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

OUR OPERATIONS IN 2021 The pandemic broke out in March 2020, Fjord Line experienced material adverse effects. As of 17th of March, The Group had cancelled all ordinary passenger sailings as a direct consequence of the pandemic and restrictions imposed by national authorities. The operation has not returned to a normal state since the outbreak, and 2019 is the last year of normal operation.

The operation going in to 2021 consisted of a one ship operation with MV Stavangerfjord. To ensure the flow of goods between Norway and EU, the Group established the emergency route in 2020, primarily for cargo, with two daily departures in each direction between Kristiansand and Hirtshals. In addition, the Group sailed two weekly round trips to Stavanger to serve the west coast market in Norway and to bunker fuel from the LNG plant in Risavika.

MV Stavangerfjord and MV Bergensfjord returned to a normal route schedule from 30th of April, followed by HSC Fjord FSTR on the 25th of June, and MV Oslofjord on the 2nd of July. By the second half of 2021 the Group was able to resume close to normal operations. However, with several covid-19 restrictions in place to enable infection prevention and control and to comply with Scandinavian authorities’ guidelines and regulations.

As new restrictions were imposed towards the end of the year, several of Fjord Line’s routes and sailings were again

655 EMPLOYEES

discontinued at the end of the year. As of 31.12.2021 only the emergency cargo route was in operation. All of Fjord Line’s vessels besides MV Stavangerfjord have had longer or shorter periods in hot-lay up during 2021. In 2021 the Group transported 510,500 passengers, compared to 1.4 million passengers in 2019; a reduction of 64 percent. The number of passenger vehicles decreased in the same period to 179,400 from 436,800. The Group transported 55,800 freight units compared to 65,500 freight units in 2019; a reduction of approximately 15 percent.

SIGNIFICANT REDUCTION IN REVENUES AND ACTIVITY While 2019 entered the books as the record year in line with the positive and steady development of Fjord Line, 2021 has together with 2020 proved to be the most challenging years in the history of the Group. The financial consequences caused by the pandemic have been significant and are evident in the financial reporting after 2019.

The Group has experienced a 50 percent revenue reduction to MNOK 799 compared to 2019, and in certain periods with very limited travel activity the Group’s revenues have been reduced by as much as 90 percent.

Despite extensive cost cut and operational efficiency measures and governmental aid packages, the Group experienced a negative result before tax for MNOK 219 in 2021, compared to a profit of MNOK 79 in 2019.

OUR TRAVELLERS

510 500

280

PASSENGERS

COACHES

This year in numbers

2021

4

1626TRIPS

SHIPS

22.3% FREIGHT UNIT MARKET SHARE

46

27.7% PASSENGER MARKET SHARE

179 400

55 800

CARS

FREIGHT UNITS

36.8%

PASSENGER VECICHLE MARKET SHARE

Annual report 2021 ⁄⁄ Fjord Line

47

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

FINANCIAL PERFORMANCE IN 2021 The Group’s operating income was MNOK 799 in 2021, compared to MNOK 729 in 2020. The Group’s operating expenses ex. depreciation were MNOK 655 in 2021, compared to MNOK 497 in 2020.

The Group’s operating result (EBIT) in 2021 shows a loss of MNOK 115, compared to a loss of MNOK 46 in 2020.

Further on, the Group’s net financial expenses are MNOK 105 in 2021, compared to corresponding expenses of MNOK 95 in 2020.

Result before tax for the Group was a loss of MNOK 219 in 2021, compared to a loss of MNOK 141 in 2020.

Result after tax was a loss of MNOK 157 in 2021, compared to a loss of MNOK 92 in 2020.

48

The parent company Fjord Line AS` result before tax was a loss of MNOK 275 in 2021, compared to a loss of MNOK 223 in 2020. Fjord Line’s loss of MNOK 213 after tax is proposed transferred to uncovered loss.

Subsequently the book equity of the parent company amounts to MNOK 592.

Fjord Line AS has accumulated basis for deferred tax asset of MNOK 1 599, which implies a deferred tax asset (22 per cent) of MNOK 352 at full capitalization.

Based on the positive development of the company pre Covid-19 and the long-term future prospects, the Board of Directors has recognized the full capitalized deferred tax asset in the balance sheet in 2021.

The Board of Directors finds the profit development pre Covid-19 satisfactory, and that the results in 2020

Annual report 2021 ⁄⁄ Fjord Line

31 December 2020. Fjord Line AS’ total balance sheet is, however, MNOK 4,060 per 31 December 2021 compared to MNOK 3,618 per 31 December 2020. Interest bearing debt made MNOK 2,901 per 31 December 2021 compared to MNOK 2,533 per 31 December 2020.

The group’s equity is MNOK 1,079 per 31 December 2021, compared to an equity of MNOK 1,212 per 31 December 2020.

The Group’s liquid funds made MNOK 236 per 31 December 2021, including unused credit facilities of MNOK 39.

FINANCIAL AND OPERATIONAL RISKS Exchange rate and interest rates Per December 31.12.2021 the Group has interest bearing debt of MNOK 2,901, including loan in EUR/ DKK, constituting in total MNOK 2,601. The Group is exposed to interest risk and currency risk on these loans. The risks are, however, partly eliminated through the fact that parts of the liabilities are hedged through fixed interest rate agreement, and that parts of the revenues and expenses are denominated in both EUR/DKK, as well as NOK. The Group is also exposed to fluctuations in the exchange rate of USD through purchase of fuel.

Price variations of bunker The Group is exposed to fluctuations in bunkers- and LNG prices, and the risk is not mitigated through hedging contracts for LNG and MGO at year end 2021.

and 2021 is significantly affected by the ongoing Covid-19 situation.

CASH FLOW AND FINANCIAL STRUCTURE The Group’s liquid funds have increased by MNOK 44 in 2021 compared to an increase of liquid funds of MNOK 27 in 2020.

The increase consists of the following main elements: • Cash flow from operational activities: MNOK 308 (MNOK -15 in 2020).

• Cash flow from investing activities: MNOK -663 (MNOK -50 in 2020).

• Cash flow from financing activities: MNOK 398 (MNOK 92 in 2020).

The Group’s total balance sheet value is MNOK 4,303 per 31 December 2021, compared to MNOK 4,035 per

Covenants Per 31.12.21 the Group had financial debt covenants connected to EBITDA, liquidity and booked and value adjusted equity. Several financial covenants are waived due to the ongoing Covid-19 pandemic. The company’s Board of Directors and management are continuously monitoring the financial debt covenants, and per 31 December 2021 the company is compliant with all active covenants.

Market The ongoing Covid-19 pandemic has significant implications for the ferry business, and the market has been heavily affected by government-imposed travel restrictions. Fjord Line’s customer base comprises a diversified mix of customer segment, which reduces risk related to individual markets.

49

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

SHAREHOLDERS

MAJOR OWNERS PER 31.12.2021

50

The Group’s major owners per 31.12.2021 were as follows: Ferd AS 44,7%, Kontrari AS 36,7 %, Kontrazi AS 15,8 % Other 2,8 %.

Annual report 2021 ⁄⁄ Fjord Line

SUSTAINABILITY AND CORPORATE RESPONSIBILITY Fjord Line recognizes the need to conduct business in line with high standards for environmental, social and governance (ESG) concerns.

tle-blowers are protected through these routines to ensure that there are no hindrances or risks to file a report.

GOVERNANCE

Fjord Line has working procedures to reduce the risk of corruption. Corruption is a risk especially related to large procurements. We reduce this risk through our procurement policy that calls for tender processes for large purchases and an approval process that ensures that all such purchases are

Our code of conduct is founded in human rights as well as the value of diversity and inclusion. We have a zero tolerance of harassment of any kind. Routines for reporting any breach of our codes of conduct are in place and available for all employees. Whis-

51

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

evaluated objectively and by several people is in place. The whistle-blower function is open for reports on suspected corruption.

Fjord Line’s single most important contribution to society in 2021, as in 2020, was to take part in stopping the pandemic while continuing the most essential of the Group’s activities. Fjord Line has throughout the pandemic been working with the government and health authorities.

The pandemic resulted in travel restrictions and complications in bringing essential goods in and out of the country. With strict infection control measures Fjord Line were able to operate a transportation route to and from continental Europe through Hirtshals in Denmark and Kristiansand in Norway.

DIRECTOR AND OFFICERS’ INSURANCE The directors and officers of Fjord Line AS are covered by a D&O Liability Insurance. The insurance covers personal legal liabilities including defense and legal costs. The officers and directors of the parent company and all subsidiaries (owned more than 50 percent) are covered by the insurance. The cover also includes employees in managerial positions or employees who become named in a claim or investigation.

ENVIRONMENT Fjord Line operates a business which causes pollution of the external environment. The Group complies with applicable laws and regulations in the area and wishes to minimalize the pollution for instance through measures that reduce the emission of NOx. While Fjord Line’s ferries were sailing a lot less this year, the Group did not halt its focus on the environment. In 2021 the Group continued implementation of the energy saving program (ESP) on MV Stavangerfjord and MV Bergensfjord which reduced relative emissions by 8% compared to prior to the program’s launch.

The Group sold HSC Fjord Cat in 2020 and the new catamaran that replaced it, Fjord FSTR, operate with 32% less GHG emissions per passenger/freight unit.

SOCIAL The COVID-19 pandemic implications starting in 2021 continued to have significant implications in 2021, also for the Fjord Line staff. The pandemic and the government-imposed travel restrictions called for a need for extensive furloughs and permanent layoffs, of the workforce. The Fjord Line crew and staff have continuously shown tremendous dedication and willingness to keep Fjord Line afloat.

52

The Covid-19 wave during the winter of 2020/2021 caused the need for extensive furloughs and layoffs resulting in a significantly reduced workforce. MV Oslofjord was reflagged to fly the Norwegian flag, and this together with expectations of a strong high season created a strong demand for Fjord Line employees ready to service our guests. Together with our employees we successfully conducted safety and service training of both our Danish crew members, and for all our new Norwegian crew members on Oslofjord.

Employee satisfaction in Fjord Line is measured biannually rather than on a yearly basis. By doing so the Group makes sure to have enough time spans between measurements to focus on effective, long term action plans. Initiatives to reduce the level of sick leave and increased engagement are among the continuous focus areas of our employee satisfaction strategy. Our employees’ feedback from the survey in October show a continued strong employee satisfaction on par with pre-covid levels.

Fjord Line is running a “No Blame Open Minded Safety Culture Program” to make the organization resilient and sustainable. The company has therefore focused on vigilance and that every incident must be reported, regardless of severity. In 2021 19 work accidents were registered. The majority of accidents were on car deck and in the kitchen. Of these accidents, 3 accidents were considered as serious. The number of work accidents is significantly reduced compared to a normal year (43 incidents in 2019), but at the same time the company has had

Annual report 2021 ⁄⁄ Fjord Line

a reduced operation due to the pandemic. Fjord Line continuously work to reduce the level of work accidents through several initiatives. Sea- and land-based employees regularly conduct safety and emergency drills including lifeboat drills and evacuation exercises, and functional tests of rescue equipment are regularly carried out onboard the ships.

with respect to gender equality. The Group will, however, continuously focus on this topic.

A guideline for systematic follow-up on sick leave was introduced in 2017. The absence due to illness in the Group was 2,9 per cent in 2021 split on 3,9 per cent for seagoing employees and 1,3 per cent for shore employees. This equals a decrease in total absence due to illness of 0,7 per cent compared with 2020 (3,6). While there is continuous focus on reducing absence rates, overall absence rates are considered within targets.

OUTLOOK

GENDER EQUALITY As per 31.12.2021, the Group had 222 shore-based and 433 seagoing staff, representing a total of 410 males and 245 females. In Fjord Line AS the equivalent number of employees was 132, consisting of 70 women and 62 men.

The company is continuously working to avoid discrimination based on gender, age, ethnicity etc. both with respect to existing and new employments.

The Group’s top management comprising at year end of 9 employees, 2 employees are women. The Board of Directors in Fjord Line are composed of 4 men and 1 woman. Based on an assessment of number of employees and job category the Board of Directors have not found it necessary to implement special measures

The requirements of the Norwegian Accounting Act § 3-3c has been covered in a separate section of the annual report. The annual report is available at Fjordline.com.

The Group has since March 2020 experienced increasingly adverse effects of the Covid-19 outbreak. The outbreak developed rapidly, and the situation affects Fjord Lines business significantly as the number of travelers decreased in line with the respective Governments closing of borders as well as implementation of other travel restrictions in order to reduce the spread of the virus. This situation has had a high priority in the Group and the management team has designed and implemented several extensive measures in order to immediately adjust the cost base in order to protect the Groups cash-flow, by eliminating cash-negative operations this extraordinary situation has brought about.

These actions consist among others of temporary changes in our route network and deployment of vessels, as well as layoff of personnel and other robust cost reductions in order to adjust the cost base to the present market demand. The Group established an emergency route, primarily for cargo, to ensure the flow of goods between Norway and the EU with two daily departures in each direction between Kristiansand and Hirtshals.

The market started its recovery in Q1 2022 to pre-covid

53

05 ⁄⁄ REPORT FROM THE BOARD OF DIRECTORS

levels as a direct consequence of most covid-19 restrictions being lifted in Norway, Denmark and Sweden, and the Group has a booking pace for the high-season rivalling the strong year of 2019.

The Group has secured a sustainable financial restructuring through negotiations with senior lenders 30.04.2020, 17.02.2021 and 30.06.2022 that will provide the Group with a reliable financial runway.

The financial restructuring consists of owner contributions as well as 75% postponement of instalments for twelve months. The Group also renegotiated its financial covenants.

Fjord Line has during the pandemic slimmed its organization and have a very effective operation focused on the EBITDA driving routes. The business as of April 2022 is strong and resembling pre-Covid levels in bookings. The Board of Directors are confident that measures taken by the management throughout these challenging years will contribute to the positive underlying development that the Group experienced pre-pandemic. The Board of Directors also concurs with the management team on the positive outlook hereunder expectations that the Group will further improve on the pre Covid-19 results in the years to come.

with several sanctions against Russia. Russia is one of the top three crude producers and the second largest producer of natural gas in the world, and energy markets has had a drastic and volatile development since the invasion started. Fuel, and particularly natural gas, is a major costs component for Fjord Line and the recent price development is posing a significant burden for the Group. The Management team is following the development closely and are taking actions to mitigate its effect and associated risk towards the Group, hereunder the Group has hedged about 40% of its LNG consumption for Q3 2023 and about 16% for Q3 2024.

The Group is not involved in any litigations.

GOING CONCERN Based on the information above and in accordance with the Accounting Act § 3-3a it is confirmed that the financial statements for 2021 have been prepared under the assumption of going concern.

In February 2022, Russian armed forces invaded Ukraine. The international community has responded

Egersund 04.07.2022

54

Peter Frølich Chairman of the Board

Kristian Eikre Board Member

Christian Fredrik Grønli Board Member

Heidi Nag Flikka Board Member

Frode Teigen Board Member

Brian Thorsted Hansen Managing Director

Annual report 2021 ⁄⁄ Fjord Line

Fjord Line is well positioned and has a positive outlook.

55

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

CONSOLIDATED FINANCIAL STATEMENTS • Income statement • Statement of comprehensive incom • Balance sheet • Cash flow statement • Accounting policies • Notes

56

Annual report 2021 ⁄⁄ Fjord Line

Fjord Line AS - Group Fjord Line AS - Group

Annual accounts Consolidated income statment (1,000 NOK) income statment Consolidated

FJORD LINE AS – GROUP (1,000 NOK)

CONSOLIDATED INCOME STATEMENT Income/net (1,000 NOK)gains Sales revenues Income/net gains Other operating income Sales revenues Other gains/losses (net) Other operating income Total Other gains/losses (net) Total Operating expenses: Cost of goods Operating expenses: Wage costs Cost of goods Depreciation of property, plant and equipment and intangible assets Wage costs Other operating expenses Depreciation of property, plant and equipment and intangible assets Write-downs of tangible and intangible assets Other operating expenses Total operating expenses Write-downs of tangible and intangible assets Total operating expenses Operating result

Note

Note Note

13, 16 13 13, 16 13 13 13

Group Group 2021 2020 Group Group Simplified IFRS Simplified IFRS Group 2021 Group 2021 2020 2020 Simplified IFRS Simplified IFRS Simplified IFRS Simplified IFRS 772 230 675 031 21 025 29 807 772 230 675 031 6 568 23 734 21 025 29 807 799 823 728 572 6 568 23 734 799 823 728 572 143 496 300 520 143 496 259 254 300 520 211 208 259 254 0 211 208 914 479 0 914 479 -114 656

121 073 309 003 121 073 262 029 309 003 67 308 262 029 14 724 67 308 774 138 14 724 774 138 -45 566

-114 656

-45 566

3 3 3 12 3 3 12 3

0 21 487 0 0 21 487 -126 114 0 0 -126 114 -104 627 0 -104 627 -219 283

2 861 2 011 2 861 0 2 011 -100 357 0 0 -100 357 -95 486 0 -95 486 -141 052

Ordinary result before tax Tax expense on ordinary result

11

-219 283 -61 805

-141 052 -48 991

Tax expense on ordinary result Ordinary result after tax

11

-61 805 -157 477

-48 991 -92 061

Ordinary result after tax Result for the year

-157 477 -157 477

-92 061 -92 061

Result for the year Distribution of result group: Majority's share of result Distribution of result group: Non-controlling interests' share of result Majority's share of result Total Non-controlling interests' share of result Total

-157 477

-92 061

-157 477 0 -157 477 -157 477 0 -157 477

-92 061 0 -92 061 -92 061 0 -92 061

-157 477

-92 061

-157 477

-92 061

37 730 -63 027 37 730 -25 296 -63 027 -25 296 -25 296

-7 822 72 168 -7 822 64 346 72 168 64 346 64 346

Comprehensive income for the year, net of tax Total comprehensive income for the year

-25 296 -182 774

64 346 -27 716

Total comprehensive income for the year

-182 774

-27 716

Operating result Financial items: Interest income Financial items: Other financial income Interest income Income from investment in associated company Other financial income Interest expenses Income from investment in associated company Other financial expenses Interest expenses Net financial items Other financial expenses Net financial items Ordinary result before tax

14 1, 2 14 5, 6, 14 1, 2 2 5, 6, 14 2

Consolidated statement of comprehensive income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (1,000 NOK) statement Consolidated of comprehensive income (1,000 NOK)

(1,000 NOK) Result for the year, cf. above

Result for the year, cf. above Items that may be subsequently reclassified to profit or loss Change in value of financial instruments used as hedges Items that may be subsequently reclassified to profit or loss Currency translation differences Change in value of financial instruments used as hedges Total Currency translation differences Total Comprehensive income for the year, net of tax

17 17

57

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

Fjord Line AS - Group

FJORD LINE AS – GROUP CONSOLIDATED BALANCE SHEET Consolidated balance sheet (1,000 NOK) (1,000 NOK)

ASSETS

Assets Fixed assets Intangible assets Deferred tax asset Other intangible asset Total intangible assets Property, plant and equipment Ships Prepayment ships Buildings, plants etc.

Right of use assets Total property, plant and equipment Financial fixed assets Investment in associated company Other investments Total financial fixed assets

Note Note

11 1

380 391 103 610 484 002

327 236 90 653 417 889

2, 18 2 2 2 2

3 334 963 0 76 565 86 872 3 498 400

2 851 183 263 467 75 489 77 563 3 267 702

0 80 80

0 80 80

4 4

3 982 481

3 685 671

5

28 785

21 409

6 7, 16 17

33 862 60 854 0 94 716

15 573 155 073 4 500 175 146

196 561

152 606

320 062

349 160

4 302 543

4 034 831

Total fixed assets Current assets Inventories Receivables and derivatives Trade receivables Other current receivables Derivatives Total receivables and derivatives Bank deposit, cash etc.

Total current assets Total assets

58

Group 2021 Group 2020 Group Group Simplified IFRS Simplified IFRS 31.12.2021 31.12.2020 Simplified IFRS Simplified IFRS

8

(1,000 NOK) Consolidated balance sheet (1,000 NOK) EQUITY AND LIABILITIES

Note

Equity EQUITY AND LIABILITIES

Note Note

EQUITY Paid-in equity EQUITY Share capital Paid-in equity Own shares Share capital premium account Own Totalshares paid-in equity Share premium account Total paid-in equity Other equity controlling interests Other equity Other Total equity controlling interests Other equity Total equity controlling interests

9, 10 9 9,910 9 9 9 9 9

Group Group Annual report 2021 ⁄⁄ Fjord Line Group 2021 Group 2020 31.12.2021 31.12.2020 Simplified Simplified IFRS Group Group IFRS Simplified IFRSIFRS Simplified 31.12.2021 31.12.2020 Simplified IFRS Simplified IFRS 569 312 544 312 -66 -109 569 544 228 312 432 203 312 432 -66 797 678 747-109 634 228 432 203 432 797 678 747 634 281 422 464 197 281 422 464 197 281 422 464 197 281 100 422 464 831 197 1 079 1 211

Total equity controlling Non-controlling interests interests

9

1 079 1000

1 211 8310

Non-controlling Total equity interests

99

1 079 1000

1 211 8310

LIABILITIES Total equity Liabilities Non-current liabilities/non-current provisions

9

1 079 100

1 211 831

2, 12 12 2,14 12 12 17 14 12 17 12

0 1 508 62 7110 508 2 5171 724 621 711 333 2 517 47 724 921 333 111 108 47 921 2 642 306 11 108

751 0 751 65 232 2 446 3620 653 232 283 2 446 60 362 416 283 133 796 60 416 2 589 840 13 796

296 973 11 227 2968 973 681 11 696 227 80 8 6810 80 11 696 174 172 3860 11137 174 581 172 386

7 989 0 989 387 418 32 2590 38 4180 324 259 391 150 1020 391 2334160 150 102

LIABILITIES Deferred tax Non-current liabilities/non-current provisions Non-current provisions Deferredliability tax Leasing provisions Non-current debt to credit institutions etc.

Leasing liability (net) Pension Non-current Derivatives debt to credit institutions etc.

Pension liability (net) Other non-current debt Derivatives Total non-current liabilities/non-current provisions Other non-current debt Total non-current Current liabilities liabilities/non-current provisions Current portion of non-current liabilities to credit institutions Current liabilities Current portion of leasing debt Current portion of non-current liabilities to credit institutions Derivatives Current portion of leasing debt Trade payables Derivatives Tax payable Trade payables Public duties owing Tax payable Other current liabilities Public duties owing Total current liabilities Other current liabilities Total current liabilitiesliabilities

12 2, 12 12 17 2, 12 17 12 12 15 15

2 642 306

2 589 840

581 443 137 3 223

233 000 160 2 823

Total liabilities equity and liabilities

3 4 223 302 443 543

2 4 823 034 000 831

Total equity and liabilities

4 302 543

4 034 831

Egersund 04.07.2022

Peter Frølich Chairman of the Board

Kristian Eikre Board Member

Christian Fredrik Grønli Board Member

Heidi Nag Flikka Board Member

Frode Teigen Board Member

Brian Thorsted Hansen Managing Director

59

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

FJORD LINE AS – GROUP CASH FLOW STATEMENT (1,000 NOK)

Cash flow statement - group (TNOK) Cash flows from operational activities Operating result Taxes paid in the period Depreciation Write-down Gain/loss from sale of property, plant and equipment/intangible assets Change in inventories Change in trade receivables Change in trade payables Change in financial assets at fair value over profit or loss Change in other accruals Net cash flows from operational activities

2021 2021

2020 2020

-114 656 0 259 254 0 0 -7 376 -18 289 48 437 0 140 853 308 223

-45 566 -714 256 230 14 724 -23 734 12 125 -99 894 -97 238 0 -30 459 -14 526

Cash flows from investing activities Proceeds from sale of property, plant and equipment and received grants Purchase/manufacturing of property, plant and equipment/intangible assets Prepayment assets Interest received Sale of subsidiary (less cash in subsidiary) Net cash flows from investing activities

0 -662 722 0 0 0 -662 722

103 187 -130 907 -10 271 -12 500 0 -50 491

Cash flows from financing activities Raising of interest bearing debt Repayment of non-current interest bearing debt Payment of interest Cash contribution share issue (net) Net cash flows from financing activities

569 466 -1 844 -219 167 50 000 398 455

168 500 -96 758 -30 542 50 409 91 610

43 956

26 593

152 606

126 013

0

0

Cash and cash equivalents at the end of the period

196 561

152 606

Specification of cash reserves at the end of the period Bank deposit and cash

196 561

152 606

Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the period Currency translation cash and cash equivalents

60

Annual report 2021 ⁄⁄ Fjord Line

61

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

Accounting policies FJORD LINE AS – GROUP

Below are stated significant Accounting Policies used in the preparation of the consolidated financial statements. The consolidated financial statements have been prepared in accordance with simplified IFRS (International Financial Reporting Standards).

Consolidation and investment in associated companies The consolidated financial statements comprise the parent company Fjord Line AS and the subsidiaries, Fjord Line Crewing AS (Norway), Fjord Line GmbH (Germany), Next Green Energy AS, Hirtshals LNG AS, Fjord Line Danmark A/S, Fjord Skibsholding I A/S, Fjord Skibsholding II A/S, Fjord Skibsholding III A/S, Fjord Skibsholding IV A/S and Fjord Skibsholding V A/S. The seven last mentioned companies are domiciled in Denmark and are 100% owned subsidiaries.

Subsidiaries are entities where the group has the power to govern the entity’s financial and operational policies (control).

When the group disposes of a subsidiary/ ceases to have control, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset.

Intercompany transactions, balances etc. have been eliminated in the consolidated financial statements.

For consolidation purposes the Danish companies are considered to have functional currency in DKK and German subsidiaries EUR.

62

Annual report 2021 ⁄⁄ Fjord Line

Estimates

Government grants

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the group's accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are deferred tax assets, residual value of ships, useful life of ships, capitalization and depreciation of periodic maintenance and provision for incurred costs.

Government grants related to Covid-19 is recorded as reduction of other operating expenses. All periods applied for government grant in 2021 is included in the financial statement.

Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue is presented net of returns, trade allowances, rebates and amounts collected on behalf of third parties.

The specific accounting policies for the group’s main revenue generating activities are as follows: Transportation/ticket: Ticket revenue is recognized over time when the actual transport is executed.

The route and crossing from start point to the end destination is fairly short and within 24 hours.

The portion of the sales income, which relates to future service is reflected in the balance sheet as unearned income from the sale and is then recognised in line with the service work performed.

This prepayment is normally not discounted because of a short period from pre-payment to executing of the transport.

Tax-free sale: Tax-free sale is recognized at point in time of sale.

Food and beverage sale: Food and beverage sale are recognized at point in time of sale.

Classification and valuation of balance sheet items Assets intended for long term ownership or use have been classified as fixed assets. Assets relating to the trading cycle have been classified as current assets. Receivables are classified as current assets if they are to be repaid within one year after the transaction date. Similar criteria apply to liabilities.

First year’s installment has been classified as current liabilities.

Intangible assets Expenses for intangible assets are reflected in the balance sheet when it is considered likely that the future financial benefits relating to the asset will be received by the company and the acquisition cost of the asset can be reliably measured.

Property, plant and equipment Property, plant and equipment are reflected in the balance sheet and depreciated over the assets’ expected useful life on a straight-line basis.

Direct maintenance of an asset is expensed under operating expenses as and when it is incurred. Additions or improvements are added to the asset's cost price and depreciated together with the asset.

The group's ships with associated additions etc. are owned by the Danish subsidiaries. The book value of ships is calculated based on acquisition cost, less depreciation and impairment, if any. Facilities under construction are capitalized in line with assumed progress.

Investments/expenses that are not

included in the contract, as inspection costs, costs connected to project organisation, legal costs, financing costs and other related costs are considered as part of the acquisition cost and recorded in the balance sheet.

Grants from the NOx-fund related to investments are recorded/accrued in line with the depreciation profile of the assets that the grants relate to. The accrual is classified as reduction of depreciation cost in the income statement. NOx-grants not recognised over profit or loss are classified as reduction of ship values in the balance sheet.

The book values of the group's ships and other operating assets are individually tested for impairment when events or changes in circumstances indicate that the book value is no longer present. If such indications occur and book value exceeds recoverable amount, then the asset is impaired to recoverable amount.

Periodical maintenance of ships The ships are decomposed into ship/ ship furnishing and periodical maintenance for depreciation purposes They are depreciated straight-line over a defined useful life. An assumed residual value of the ships at the expiry of the useful life is taken into consideration. The ships must continuously be presented for control, which implies regular docking and classification.

Periodical maintenance is recognised in the balance sheet in connection with docking and depreciated till next assumed docking.

Leases Lease contracts where the group is a lessee are capitalized. Upon commencement of the lease the right-touse asset is recognized at cost being the present value of the lease payments in the contract as defined by IFRS 16 in addition to initial direct costs. The corresponding lease liability is recognized

63

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

in the balance sheet at present value using the interest rate implicit in the lease, if that rate can be readily determined, or else the lessee’s incremental borrowing rate. The lease liability is subsequently increased by the effective interest in the lease and reduced by payments made. The lease liability is also reassessed subsequently if the payments or the interest rate changes.

The change in liability is added to or deducted from the right-of-use asset.

The right-of-use asset acquired under leases is depreciated over the asset’s useful life or the lease term, if shorter, if the lease does not transfer ownership at the end of the lease term, or there is no purchase option that is in the money. The right-of-use asset is tested for impairment for similar assets owned by the entity.

Inventories Inventories of purchased goods are valued at the lower of acquisition cost according to the FIFO-principle and net realisable value. Net realisable value is the estimated selling price in ordinary activities deducted estimated sales expenses.

Receivables, financial assets and financial liabilities Financial assets At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Dividends on financial assets at fair value through profit or loss and fair value through other comprehensive income are recognized in profit or loss as part of revenue when the group’s right to receive payments is established.

Interest income from financial assets at fair value through profit or loss is included in the net gains/(losses).

Interest on other financial assets are

64

calculated using the effective interest method and recognized in profit or loss as revenue.

Impairment For accounts receivables, the lifetime credit loss is recognized upon initial recognition of the asset. For other debt instruments, twelve months estimated credit loss is recognized upon initial recognition. When a significant increase in the expected credit loss is observed, lifetime credit losses is estimated and recognized.

Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

The group documents at the inception of the hedging transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

Trading derivatives are classified as a current asset or liability.

Cash flow hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges

is recognized in other comprehensive income and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss within other income or other expense.

Amounts accumulated in equity are reclassified to profit or loss through other comprehensive income in the periods when the hedged item affects profit or loss (for instance when the hedged interest rate payment that is hedged takes place). The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is recognized in profit or loss within ‘finance costs’.

When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to profit or loss.

Derivatives that do not qualify for hedge accounting Certain derivative instruments may not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss and are included in net other financial income and expenses.

Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is

Annual report 2021 ⁄⁄ Fjord Line

deferred until the draw down occurs.

To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognized in profit or loss as other income or finance costs.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Other borrowing costs are expensed in the period in which they are incurred.

Foreign currency translation Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates («the functional currency»). The consolidated financial statements are presented in NOK, which is the functional currency of the parent company and the group’s presentation currency.

The results and financial position of all the group entities (none of which has the currency of a hyper-inflationary

economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. (ii) The income statement shall be converted at the exchange rate at the time of the transaction. As an approach to this, average rates are used for the accounting period unless it is large single transactions or the exchange rate have varied so much that the approach does not give a true picture. (iii) All resulting exchange differences are recognised in other comprehensive income and specified separately.

Transactions in foreign currency are translated to the functional currency at the current exchange rate at the transaction date.

Taxes The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the de-

ferred income tax liability is settled.

Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

The Danish ship owning companies are subject to the Danish tonnage tax regime.

Pensions A defined contribution plan is a pension plan under which the group pays fixed contributions to an insurance company. The group has no legal or constructive obligations once the contributions have been paid. The contributions are recognised as wage costs. A defined benefit plan is a pension plan that is not a defined contribution plan.

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the balance sheet date.

Cash-flow statement The cash-flow statement is prepared in accordance with the indirect method.

65

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

Notes

FJORD LINE AS – GROUP Note 1 Intangible assets - group

Note 1 ⁄⁄ Intangible assets – Group

(Figures in the table in TNOK) (Figures in TNOK)

Intangible assets in progress

WEB-project

Other intangible assets

TOTAL (exclusive of deferred tax asset)

Acquisition cost 31.12.2020 Completed projects 2021 Addition 2021 Disposal 2021 Acquisition cost 31.12.2021

8 451 23 643 -1 467 0 30 627

104 108 2 701 1 167 0 107 976

1 951 208 0 0 2 159

114 511 26 551 -300 0 140 762

Accumulated write-down 31.12.2020 Accumulated depreciation 31.12.2020 Book value 31.12.2020 Accumulated write-down 31.12.2021 Accumulated depreciation 31.12.2021 Book value 31.12.2021

4 824 0 3 627 4 824 0 25 803

0 18 267 85 842 0 31 420 76 556

0 765 1 186 0 908 1 251

4 824 19 032 90 655 4 824 32 328 103 610

0 0 0

0 13 154 13 154

0 142 142

0 13 296 13 296

Write-down in the year Depreciation intangible assets in the year Total depreciation and write-down 2021

Completed projects in 2021 are projects related to development of websites and moving WEB platform, with a depreciatcion period of 5 years.

The remaining projects relates to development of ERP system in general, group booking, development of Carres, on board portal and BI. The depreciation period is 5 years.

66

Annual report 2021 ⁄⁄ Fjord Line

Note 2 Property, plant and equipment - group (Figures table in TNOK)plant and equipment Note in2the ⁄⁄ Property,

– group

Figures for 2021 below (Figures in TNOK)

Property, plant and equipment (figures in TNOK) Acquisition cost 31.12.2020 Addition 2021 Transfer Disposal 2021 Translation differences Acquisition cost 31.12.2021 Accumulated write-down 31.12.2020 Accumulated depreciation 31.12.2020 Book value 31.12.2020 Accumulated write-down 31.12.2021 Accumulated depreciation 31.12.2021 Book value 31.12.2021 Depreciation property, plant and equipment in the year Write-down property, plant and equipent in the year Depreciation period (completed operating assets) Depreciation plan

Prepaid ships

Buildings, plant etc.

Spare parts, operating movables, reconstruction premises etc.

263 467 0 -263 467 0 0 0

113 950 10 850 0 0 -2 228 122 571

337 0 0 0 0 337

107 661 23 535 0 0 -17 151 114 045

4 274 264 586 374 263 467 0 -136 664 4 987 441

4 759 679 620 758 0 0 -156 043 5 224 394

0 0 263 467

0 38 574 75 376

0 224 113

0 18 158 77 563

0 1 423 081 2 851 183

0 1 480 037 3 267 702

0 0

46 052 76 520

291 46

27 174 86 872

1 652 478 3 334 963

1 725 995 3 498 400

0 0

7 478 0

67 0

9 016 0

229 397 0

245 958 0

5 - 20 years Linear

3 - 5 years Linear

Right of use assets

Ships, incl. periodical maintenance, furnishing etc.

Total property, plant and equipment

5 - 25 years Linear

See description below Linear

Grant not recognised through profit or loss per 31.12.2021 is TNOK 124.530 (TNOK 129.319 per 31.12.2020).

Grant not recognised through profit or loss is recognised as a reduction of the acquisition cost per 31.12.

The grant is accrued/recognised in line with the depreciation profiles of the related ships and classified as reduction of depreciations.

Depreciation and book value of the ships per 31.12.2021 The Fjord Line group has 3 ships in the business at the reporting date; 1) "MS Oslofjord" (formerly MS Bergensfjord). This ship was under reconstruction in 2014 and has sailed in the route Sandefjord-Strømstad since 20 June 2014 .

2) "MS Stavangerfjord". This ship was delivered in July 2013.

3) "MS Bergensfjord". This ship was delivered in February 2014.

4) "Fjord FSTR". This ship was delivered in February 2021.

MS Oslofjord: In connection with Fjord Line starting up the sailing of a new route between Sandefjord and Strømstad in June 2014 MS Oslofjord was subject to a comprehensive reconstruction at the yard STX Raumo (Finland) in 2013/2014. Approx. 300 mill NOK was invested in the reconstruction of the ship.

Carrying value for the ship including periodical maintenance is TNOK 335.739 pr 31.12.2021.

Both the ship and ship furnishing are depreciated linearly over 15 years, with estimated salvage value 20 MNOK per June 2029.

Ship furnishing is depreciated over 1 - 5 years. Periodical maintenance /docking is depreciated over 1 - 10 years.

MS Stavangerfjord MS Stavangerfjord is depreciated linearly over 35 years, with salvage value 50 MNOK. Remaining depreciation period per 31.12.2021 is 26,5 years.

Carrying value for the ship including periodical maintenance is TNOK 1.164.134 pr 31.12.2021.

Ship furnishing is depreciated over 5 - 20 years. Periodical maintenance/docking is depreciated linearly over 1 - 10 years.

MS Bergensfjord The ship itself is depreciated linearly over 35 years, with salvage value 50 MNOK. Remaining depreciation period per 31.12.2021 is approx. 27 years.

Carrying value for the ship including periodical maintenance is TNOK 1.058.018 pr 31.12.2021.

Periodical maintenance/docking and furnishing are depreciated linearly over 5 - 15 years.

Fjord FSTR The ship itself is depreciated linearly over 25 years, with salvage value 50 MNOK. Remaining depreciation period per 31.12.2021 is 34,5 years.

Carrying value for the ship including periodical maintenance is TNOK 776.969 pr 31.12.2021.

Ship furnishing is depreciated over 1 - 5 years. Periodical maintenance/docking is depreciated linearly over 1 - 10 years.

67

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

Note 3 ⁄⁄ Financial items – group Note 3 Financial items - group (Figures in in TNOK) TNOK) (Figures

Other financial income and other financial expenses comprise the following: Other financial income Foreign exchange gains, intergroup receivables Foreign exchange gains, loan in Euro/DKK Other foreign exchange gains Other financial income Total

2021 39 060 0 20 538 2 553 62 152

2020 22 23 831 22 182 6 417 52 452

Other financial expenses Foreign exchange loss, including loan in Euro/DKK Foreign exchange loss, intergroup receivables Derivatives not included in hedge accounting Other financial expenses Total

2021 22 867 14 699 0 3 100 40 665

2020 0 25 956 22 664 1 821 50 441

Foreign exchange gains/foreign exchange loss intergroup receivables Fjord Line AS has non-current interest bearing receivables on the Danish subsidiaries amounting to a total of TNOK 2.423.976 per 31.12.2021 (TNOK 2.005.886 per 31.12.2020) This has been eliminated in the consolidated financial statements.

The receivables are denominated in DKK. Foreign exchange loss on these receivables was TNOK 122.398 in 2021 (Foreign exchange gain TNOK 108.498 in 2020).

A specific installment plan for the loans the subsidiaries have to their parent company has not been established, however, the subsidiaries will use free liquidity for repayment.

Note 4 ⁄⁄ Investments in associated companies and other investments – group

Note 4 Investments in associated companies and other investments - group

Visit Sørlandet AS In 2010 Fjord Line AS acquired shares amounting to TNOK 50 in Visit Sørlandet AS. After 2010 there has been neither additions nor disposals.

The investment is recognised in accordance with the cost method. There has not been any write-down of the holding of shares neither in 2021 nor in 2020.

Visit Telemark AS Fjord Line AS invested TNOK 30 in Visit Telemark AS in 2016. The investment is recognised in accordance with the cost method. No write-down has been made.

Note 4LNG Investments in associated companies and other investments - group Green A/S In 2020 Fjord Line group acquired additional shares in Next Green Energy A/S, total amount invested is TDKK 932.

Visit Sørlandet Green LNG A/S isAS consolidated from the acquisition date in 2020. No write-down has been made.

In 2010 Fjord Line AS acquired shares amounting to TNOK 50 in Visit Sørlandet AS. After 2010 there has been neither additions nor disposals.

The investment is recognised in accordance with the cost method. There has not been any write-down of the holding of shares neither in 2021 nor in 2020.

Note Inventories Visit5Telemark ASand fuel expenses - group Fjord Line AS invested TNOK 30 in Visit Telemark AS in 2016. The investment is recognised in accordance with the cost method. No write-down has been made.

(Figures in TNOK) Green LNG A/S 2021 2020 In 2020 Fjord Line group acquired additional shares in Next Green Energy A/S, total amount invested is TDKK 932.

Fuel 8 286 2 365 Green LNG A/S is consolidated from the acquisition date in 2020. No write-down has been made.

Goods for resale 20 566 19 936 Other items, including key-cards etc.

1 807 1 608 Total inventories at acquisition cost 31.12.

30 659 23 909 Write-down 31.12.

1 874 2 500 Note 5 ⁄⁄ Inventories and- fuel Note 5 Inventories and fuel expenses groupexpenses – group Total book value of inventories 31.12.

28 785 21 409

(Figures in TNOK) (Figures in of TNOK) Write-down TNOK 1,9 has been made of the inventory per year-end.

2021 8 286 20 566 1 807 30 659 1 874 28 785

Expenses related to fuel are classified as other operating expenses in the income statement.

Fuelamounts to TNOK 179.090 in 2021 (TNOK 139.607 for 2020).

This Goods for resale Other items, including key-cards etc.

Total inventories at acquisition cost 31.12.

Note 6 Trade31.12. receivables - group Write-down Total book value of inventories 31.12.

(Figures in TNOK)

Write-down of TNOK 1,9 has been made of the inventory per year-end.

Trade receivables 31.12.as other operating expenses in the income statement.

Expenses relatedattonominal fuel arevalue classified Provisions for bad debts 31.12.

This amounts to TNOK 179.090 in 2021 (TNOK 139.607 for 2020).

Trade receivables 31.12.

Change provisions for bad debts in the year Actual debtsreceivables in the year - group Note 6bad Trade Received on receivables previously written off Loss on bad debts (Figures in TNOK) Bad debts are included in the item "other operating expenses" in the income statement.

68

Trade receivables at nominal value 31.12.

2020 2 365 19 936 1 608 23 909 2 500 21 409

2021 37 059 -3 197 33 862

2020 18 770 -3 197 15 573

0 274 0 274

1 000 2 497 0 3 497

2021 37 059

2020 18 770

(Figures in TNOK) 2021 2020 8 286 2 365 Annual20report 202119⁄⁄936 Fjord Line 566 1 807 1 608 30 659 23 909 1 874 2 500 28 785 21 409

Fuel Goods for resale Other items, including key-cards etc.

Total inventories at acquisition cost 31.12.

Write-down 31.12.

Total book value of inventories 31.12.

Write-down of TNOK 1,9 has been made of the inventory per year-end.

Expenses related to fuel are classified as other operating expenses in the income statement.

This amounts to TNOK 179.090 in 2021 (TNOK 139.607 for 2020).

Note 6 Trade receivables - group

Note 6 ⁄⁄ Trade receivables – group

(Figures in TNOK) (Figures in TNOK) Trade receivables at nominal value 31.12.

Provisions for bad debts 31.12.

Trade receivables 31.12.

Change provisions for bad debts in the year Actual bad debts in the year Received on receivables previously written off Loss on bad debts

2021 37 059 -3 197 33 862

2020 18 770 -3 197 15 573

0 274 0 274

1 000 2 497 0 3 497

Bad debts are included in the item "other operating expenses" in the income statement.

Note 7 ⁄⁄ current Otherreceivables current- receivables – group Note 7 Other group (Figures (Figures in in TNOK) TNOK) Other receivables Refund from the Norwegian government in regard to The Business Compensation Scheme* Refund from public authorities, including VAT receivable Prepaid expenses, incl. insurance ships Other receivables Other current receivables 31.12.

2021 0 3 725 26 727 30 401 60 854

2020 121 442 3 744 20 799 9 088 155 072

*Receivable is for The Business Compensation Scheme is part of the Norwegian government's measures to mitigate the financial effects of the coronavirus situation and the infection control measures for enterprises with a significant loss of turnover due to the cronavirus situation. Fjord Line AS has no receivable for The Business Compensation Scheme per 31.12.2021.

Note 8 ⁄⁄ Restricted Note 8 Restricted funds - groupfunds – group (Figures (Figures in in TNOK) TNOK)

2021 3 494

Restricted tax deduction funds per 31.12.: The tax deduction funds are deposited on separate bank accounts.

2020 2 141

Note 9 Changes in equity - group (Figures Note in9TNOK) ⁄⁄ Changes in equity – group Note 9 Changes in equity - group

Share premium account

q y, not recognised in income statement

(Figures in TNOK) (Figures in TNOK)

Share capital

Own Shares

Equity 01.01.2020

107 Share519 capital

-109 Own Shares

519,107

-109

178,227

64 346 180,166

25 205 544 312

-109

25 205 203 432

244 512 64,346

25,205 544,312

-109 44

25,205 203,432

25 000

44

25 000

569 312 25,000

-66

228 432 25,000

569,312

-66

228,432

Net income 2020 Other Equitycomprehensive 01.01.2020 income 2020 Sale of own shares Increase of capital Net income 2020 Other comprehensive income 2020 Sale of own shares Net income 2021 Increase of capital Purchase of own shares Other comprehensive income 2021 Sale of own2021 shares Net income Increase Purchaseof of capital own shares Other comprehensive income 2021 Sale of own shares Equity 31.12.2021 Increase of capital Equity 31.12.2021 Note 10 Share capital and shareholders' information - group

Share premium Other equity, 178 227 not recognised 180 166 account in income statement

244,512 -25 296

Retained earnings

Non-controlling Total equity interests

Retained 311 649 Non-controlling0 Total 1 189 137 earnings equity interests -92 061 -92 061 64 346 311,649 0 1,189,137 -92,061 219 588

0

-157 477 219,588

0

-157,477

-25,296 219 215

62 111

0

219,215

62,111

0

50 409 -92,061 1 211 831 64,346 -157 477 50,409 1,211,831 44 -25 296 -157,4770 50 000 44 -25,296 0 1 079 100 50,000 1,079,100

The share capital is NOK 569.311.962,50 per 31.12.2021, and consists of 227.724.785 shares each NOK 2,50. All shares have equal rights.

The major shareholders per 31.12.2021 Ferd AS Kontrari AS

Owner share 44,7 % 36,7 %

69

544 312 Net income 2021

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT Purchase of own shares Other comprehensive income 2021 Sale of own shares Increase of capital Equity 31.12.2021

-109

203 432

569 312

219 588

25 000 -66

228 432

219 215

62 111

The share capital is NOK 569.311.962,50 per 31.12.2021, and consists of 227.724.785 shares each NOK 2,50. All shares have equal rights.

Ferd AS Kontrari AS Kontrazi AS Others, including own shares *) Total

Owner share 44,7 % 36,7 % 15,8 % 2,8 % 100,0 %

*) Fjord Line AS has a total of 2.118 own shares per 31.12.2021.

The major shareholders per 31.12.2020 Ferd AS Kontrari AS Kontrazi AS Others, including own shares *) Total *) Fjord Line AS had a total of 10.764 own shares per 31.12.2020.

70

Owner share 44,6 % 35,6 % 16,6 % 3,2 % 100,0 %

1 211 831 -157 477 44 -25 296 0 50 000

-25 296

Note 10 ⁄⁄capital Share andinformation shareholders' Note 10 Share andcapital shareholders' - group information – group

The major shareholders per 31.12.2021

0

-157 477

44 25 000

244 512

0

1 079 100

Annual report 2021 ⁄⁄ Fjord Line

Note 11 ⁄⁄ Taxes – group

Note 11 Taxes - group

(FiguresininTNOK) TNOK) (Figures Calculation of deferred tax/deferred tax asset allocated to the Norwegian activity Temporary differences Fixed assets Receivables OCI hedging account Gain/loss account Inventory Other differences, including accounting accruals Applied loss carried-forward Carry-forward interest deduction Total Carry forward loss Basis for deferred tax (-deferred tax asset) 22% of the basis Deferred tax (-deferred tax asset) recognised in the balance sheet Deferred tax asset not recognised in the balance sheet

31.12.2021 11 832 -13 097 -56 364 5 520 -1 900 -152 080 22 -40 135 -246 202 -1 482 850 -1 729 052 -380 391 -380 391 0

31.12.2020 8 961 -3 197 -94 332 6 900 -2 500 -80 707 0 0 -164 875 -1 243 185 -1 408 060 -309 773 -309 773 0

Change -2 871 9 900 -37 968 1 380 -600 71 373 -22 40 135 81 327 239 665 320 992 70 618 70 618 0

Payable tax recognised in the balance sheet per 31.12.2021 connected to the Norwegian activity makes TNOK 0 (TNOK 0 per 31.12.2020).

Foreign subsidiaries The Danish shipowning companies are under Danish law connected to a tonnage tax system and have calculated taxable income based on these conditions.

Further on, the Danish subsidiaries are jointly taxed. Tax 2021 for the Danish subsidiaries is TNOK 0 after utilization of tax losses carried forward (TNOK 0 in 2020).

The Danish subsidiaries received taxable grants in 2015. This was reflected in payable tax recognised in the balance sheet, TNOK 17.480 per 31.12.2015 which was allocated to the Danish subsidiaries.

As the grants are recognised as a reduction of the ships' acquisition cost, the grant is recognised through gains/losses in line with the depreciation of the ships.

The grant is considered not to be comprised by IAS 12. Therefore a deferred tax asset corresponding to payable tax connected to the grant was recognised in the balance sheet upon receipt of the grant in 2015. This deferred tax asset is being reversed over the depreciation period of the ships.

Net book value of deferred tax asset per 31.12.2021 and 31.12.2020 relating to foreign subsidiary is listed below.

The main element of this net amount (TNOK 16.275 per 31.12.2021) is thus connected to the mentioned grants.

Specification of tax expense Change in deferred tax asset connected to the Norwegian activity Payable tax connected to the Norwegian activity (partially owned subsidiary) Payable tax connected to foreign subsidiaries Change in deferred tax asset connected to foreign subsidiaries OCI hedging account Other adjustments, including foreign exchange translation differences Tax expense

2021 -53 155 0 0 -686 -8 301 337 -61 805

2020 -51 994 0 0 -188 3 304 -113 -48 991

2021 0 0 0 0

2020 0 0 0 0

Specification of deferred tax asset Deferred tax asset connected to parent company*) Deferred tax asset connected to partly owned Norwegian subsidiary Deferred tax asset connected to OCI hedging account Deferred tax asset connected to foreign subsidiaries (net) Deferred tax asset recognised in the balance sheet 31.12.

2021 351 717 0 12 400 16 275 380 391

2020 289 020 0 20 753 17 463 327 236

Reconciliation of tax expense for the group 22% of result before tax Change of deferred tax asset not recognised in the balance sheet connected to the Norwegian activity Tax recognized through other comprehensive income 25% (27%) of not taxable income foreign subsidiaries etc.

Impact of changed tax rate in Norway Other permanent differences (net) including different tax rate between the countries Tax expense

2021 -48 242 0 -8 301 -7 809 0 2 547 -61 805

2020 -31 031 0 -15 018 0 0 -2 941 -48 990

Specification of payable tax Payable tax connected to the parent company Payable tax connected to partially owned Norwegian subsidiary Payable tax connected to foreign subsidiaries Payable tax recognised in the balance sheet 31.12.

*) Fjord Line AS has accumulated basis for deferred tax asset of TNOK 1.598.712 per 31.12.2021.

This implies a deferred tax asset (22 %) of TNOK 351.717 at full capitalisation.

The Board of Directors following a concrete assessment of the future prospects of Fjord Line AS (Group), under the basis of the net income from the two years prior to Covid19, found that it has convincing evidence that future earnings will justify capitalization of the deferred tax asset in full. The argument is sustained by the positive operating results in the recent years. This combined with the current plans in long term business plans indicates that we have convincing evidence that we can at least have equivalent earnings in the years to come post Covid-19 as shown in 2019 and this has been taken into account in the assessment.

71

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

Note 12 ⁄⁄ Liabilities – group Note 12 Liabilities - group (Figures TNOK) (Figuresin intable tableinTNOK) Non-current interest bearing debt per 31.12.

Debt to credit institutions etc.

Debt connected to leasing contracts recognised in the balance sheet Other non-current interest bearing debt Total non-current interest bearing debt 31.12. excl. of first year's installment

Current interest bearing debt per 31.12.

Debt to credit institutions (overdraft facilities) Current portion of debt to credit institutions Current portion of leasing debt Other current interest bearing debt Total current interest bearing debt 31.12.

Total book value of interest bearing debt 31.12.

2021 2 517 724 62 711 11 108 2 591 543

2020 2 446 362 65 232 13 796 2 525 390

2021 0 296 973 11 227 1 487 309 686

2020 0 7 989 0 0 7 989

2 901 229

2 533 379

Fjord Line AS had an unused overdraft facility of MNOK 35 per 31.12.2021 (unused overdraft facility of MNOK 35 MNOK per 31.12.2020).

Per 31.12.2021 the company has a positive balance on the overdraft facility account of 235,8 MNOK (191,8 MNOK per 31.12.2020).

The subsidiary Fjord Line DK A/S has an unused overdraft facility of 3 MDKK per 31.12.2021 (3 MDKK per 31.12.2020).

Interest bearing debt to credit institutions (incl. leasing) - distributed on currency per 31.12.2021 (figures in 1,000) Currency NOK DKK Euro TOTAL

Nominal currency 300 218 433 817 202 057

Exchange rate 1,000 1,343 9,989

Book value in NOK 31.12.2021 300 218 582 703 2 018 308 2 901 229 incl. first year's installment

Interest bearing debt to credit institutions (incl. leasing) - distributed on currency per 31.12.2020 (figures in 1,000) Currency NOK DKK Euro TOTAL

Nominal currency 299 777 468 498 150 366

Exchange rate 1,000 1,407 10,470

Book value in NOK 31.12.2020 299 777 659 223 1 574 379 2 533 379 incl. first year's installment

Borrowing in Euro and DKK Borrowing in Euro and DKK is recognised in the balance sheet at current exchange rate per 31.12.2021 and 31.12.2020, cf. the table above.

Foreign exchange loss/gain in 2021 related to non-current borrowing in Euro and DKK is -22,8 MNOK. Foreign exchange loss/gain in 2020 related to non-current borrowing in Euro and DKK is 23,8 MNOK. Book value per 31.12. for the Euro-borrowings and DKK is as follows in NOK (figures in TNOK): Principal amount: Amortization effect of the borrowings, incl. guarantee commission Book value per 31.12.

2021 2 608 078 -7 067 2 601 011

2020 2 245 565 -11 963 2 233 602

2023 797 850 1 794 123

2024 260 570 1 533 553

Borrowing in DKK Borrowing in DKK 31.12.2021 consists of a non-current loan to Danica Pension of TNOK 537.280. Total available loan facility is MDKK 400.

The loan facility is issued in its entirity in 2018 and the debt in DKK to Danica Pension amounts to MDKK 400.

Installment plan non-current interest-bearing debt to credit institutions/mortgage loan, leasing debt and bond loan (Figures in TNOK) 2021 Annual installments 7 500 Remaining loan per 31.12.

2 897 938

2022 305 965 2 591 973

2025 494 780 1 038 773

The Group has secured a sustainable financial restructuring through negotiations with senior lenders and guarantors 30.06.2022 that will provide the Group with a robust financial runway, an updated installment plan reflecting the updated terms is presented below: (Figures in TNOK) Annual installments Remaining loan per 31.12.

Book value of mortgaged assets 31.12.2021: Ships 3 334 963 Prepaid ships 0 Receivables 35 459 Inventories 28 785 Total 3 399 207

72

2021 7 500 2 897 938

2022 57 457 2 840 480

2023 336 577 2 503 903

2024 797 850 1 706 053

2025 539 820 1 166 233

Annual report 2021 ⁄⁄ Fjord Line

Note 13 Operating income and income other gains/losses - group gains/losses – group Note 13 ⁄⁄ Operating and other Note 13 Operating income and other gains/losses - group (Figures (Figures in in TNOK) TNOK) (Figures in TNOK) Sales revenues Ticket income revenues Sales income etc. onboard Ticket income income Cargo Sales income etc. onboard Other Cargo sales income Total revenues Other Total sales revenues Other operating income

2021

2020

2962021 397 278 069 296 522 397 194 2783 069 243 194 772 522 230 3 243 772 21 230 025

2802020 242 215 300 280 618 242 171 2157 300 871 171 675 618 031 7 871 675 29 031 807

operating income Other gains/losses (net) Gain on sale of fixed assets* Otherbygains/losses (net) Gain transfer of subsidiary to associated company Gain from on sale ofsubsidiary fixed assets* Loss exit Gain by transfer of subsidiary to associated company in income statement), cf. note 20 Unrealized gain derivatives (value change recognised Loss subsidiary(net) Totalfrom otherexit gains/losses Unrealized gain derivatives (value change recognised in income statement), cf. note 20 other gains/losses (net)other gains/losses (net) Total operating income and

21 025 6 568 0 6 5680 0 6 5680 0 568 7996 823

29 807 23 734 0 23 7340 0 23 7340 0 23 572 734 728

C A+B+C

Total operating income and other gains/losses (net)

799 823

728 572

A+B+C

A A B B

C

Note 14 Wage costs, number of employees, remunerations, loans to employees etc. - group

Note 14 ⁄⁄ Wage costs, number of employees, remunerations, loans to emloyees etc. – group

Note 14 Wage of employees, remunerations, loans to employees etc. - group (Figures in tablecosts, belownumber in TNOK)

(Figures in table Wage costs (Figures in table below below in in TNOK) TNOK) Wages, incl. feeding crew, social costs etc.

Wage costs Payroll tax and other public duties related to wages Wages, Pension incl. costsfeeding etc. crew, social costs etc.

Payroll tax and other public duties related to wages Other remunerations Pension Total costs etc.

Other remunerations Total Average number of man-labour years in the group during the accounting year 2021 has been 456 (474 in 2020) .

2021 239 795 222021 891 239 14 795 478 22 23 891 357 14 520 478 300 23 357 300 520

2020 256 858 172020 796 256 17 858 155 17 796 194 17 003 155 309 17 194 309 003

Average number of man-labour years in the group during the accounting year 2021 has been 456 (474 in 2020) .

Remunerations for CEO and the Board of Directors (figures in TNOK) 2021 2020 Wages CEO incl. Bonus 1 875 3 200 Remunerations for CEO 2021 2020 Other remuneration CEO and the Board of Directors (figures in TNOK) 298 571 Wages CEO incl. Bonus 1 875 3 200 Board of Directors' fee 033 950 Other remuneration CEO 298 571 Board of Directors' fee 1 033 950 No loan or gurarantee has been provided for CEO or any of the members of the Board of Directors.

The CEO is included in the company's pension agreement, cf mentioned below.

No loan or to gurarantee has been provided CEOisorallocated any of the members theliability Board of Directors.

According the agreement, 20% of grossfor salary annually andofthe amounts to per 31.12.2021 TNOK 483 (TNOK 2.272 per 31.12.2020).

The CEO is included in the company's pension agreement, cf mentioned below.

According to the agreement, of gross salary is allocated andtothe to per the 31.12.2021 TNOK 483 2.272 per 31.12.2020).

The chief executive officer is20% entitled to a severance paymentannually equivalent 12 liability months’amounts salary without right to holiday pay (TNOK and pension rights, commencing at the time of expiry of notice period, when the resignation is at the request from the company.

The chief executive officer is entitled to a severance payment equivalent to 12 months’ salary without the right to holiday pay and pension rights, commencing at the time of expiry of notice period, when the resignation is at the request from the company.

Pensions The company has taken on a pension savings agreement on behalf of the present CEO and another two individuals.

Pensions The market value of the contributions/assets was TNOK 5.543 per 31.12.2021 (TNOK 3.101 per 31.12.2020).

The company on a pension savings on behalf present CEO and another two31.12.2020). individuals.

Gross liabilityhas per taken 31.12.2021 is calculated to agreement TNOK 6.876 relatedof tothe these persons (TNOK 6.384 per The market value the contributions/assets was (TNOK TNOK 5.543 (TNOK per 31.12.2020).

Net liability is thusofTNOK 1.333 per 31.12.2021 3.283per per31.12.2021 31.12.2020), and is 3.101 classified as pension liability in the balance sheet.

Gross liability per 31.12.2021 is calculated to TNOK 6.876 related to these persons (TNOK 6.384 per 31.12.2020).

Net liabilitythe is thus TNOK per 31.12.2021 3.283 pension per 31.12.2020), anditsisemployees. classified as pension liability in the balance sheet.

In addition company has1.333 established a defined(TNOK contribution scheme for The company pays fixed contributions to an insurance company. The company has no further obligations to pay once the contributions have been paid.

In the company has from established defined pension scheme for its employees.

Theaddition contribution constitutes 2% to a4% of the contribution employees' salary.

The company pays fixed contributions to an insurance company. The company has no further obligations to pay once the contributions have been paid.

The contribution constitutes from 2% to 4% of the employees' salary.

Auditor Auditor's fee relates to the following services (exclusive of vat): Auditor (Figures in TNOK) Auditor's fee relates to the following services (exclusive of vat): 2021 2020 (Figures in TNOK) Audit services - group auditor 690 633 2021 2020 Audit services other auditors 536 864 Audit services auditor 690 633 Accounting and- group tax related consultancy group auditors 118 75 Audit services auditorsconsultancy other auditors 536 864 Accounting andother tax related 394 436 Accounting tax related consultancy group auditorsgroup auditor 118 75 Certificationand services/agreed-upon control procedures 307 11 Accounting tax related consultancy other auditors other auditors 3940 436 Certificationand services/agreed-upon control procedures 200 Certification 307 11 Other servicesservices/agreed-upon control procedures group auditor 512 193 Certification services/agreed-upon control procedures other auditors 200 Total auditor's fee 2 5580 2 412 Other services 512 193 Total auditor's fee 2 558 2 412

73

06 ⁄⁄ CONSOLIDATED FINANCIAL STATEMENT

Note 15 ⁄⁄ Other – group Note 15 Other current current liabilities - liabilities group (Figures in TNOK) (Figures in table TNOK)

Other current liabilities per 31.12: Incurred costs regarding wages/pay etc. (Denmark) Note 15 Other current liabilities - group Prepayment from customers Incurred interests and guarantee commission (Figures infor TNOK) Provision other incurred costs Other current liabilities 31.12.

Other current liabilities per 31.12: Incurred costs regarding wages/pay etc. (Denmark) Prepayment from customers Note 15 Other current liabilities - group Incurred interests and -guarantee Note 16 NOx-grants group commission Provision for other incurred costs (Figures in TNOK) Other current liabilities 31.12.

2021 25 836 91 437 19 754 33 872 170 899 2021 25 836 91 437 19 754 33 872 170 899

2020 29 308 75 106 18 958 26 730 150 102 2020 29 308 75 106 18 958 26 730 150 102

The ship "MS Stavangerfjord" was delivered in July 2013, and the ship "MS Bergensfjord" was delivered in January 2014.

Other current liabilities per 31.12: 2021 Because the ships are gaswages/pay powered (LNG), with related low emission, Fjord Line AS was granted a contribution from the NOx-fund.

Incurred costs regarding etc. (Denmark) 25 836 Note 16 ⁄⁄ NOx-grants – group Per 31.12.2014 contributions of MNOK 147,2 in total were paid to Fjord Line AS connected to these projects.

Prepayment from customers 91 437 Note 16 NOx-grants - group As a condition for and the grant Fjordcommission Line AS has been obliged to use "MS Stavangerfjord" and "MS Bergensfjord" in NOx-liable waters for at least 2 years 19 754 Incurred interests guarantee from time for of delivery.

Provision other incurred costs 33 872

2020 29 308 75 106 18 958 26 730 150 102

Other current liabilities 31.12.was delivered in July 2013, and the ship "MS Bergensfjord" was delivered in January 2014.

170 899 The ship "MS Stavangerfjord" Fjord Line AS received 0 MNOK in NOx-grants in 2021 (0 MNOK in 2020).

Because the ships are gas powered (LNG), with related low emission, Fjord Line AS was granted a contribution from the NOx-fund.

Per 31.12.2014 contributions of MNOK 147,2 in total were paid to Fjord Line AS connected to these projects.

In the 2021-accounts MNOK 4,8 of the grants have been recorded (4,8 MNOK in 2020). The amount is classified as reduction of depreciation in the income statement.

As a condition for the grant Fjord Line AS has been obliged to use "MS Stavangerfjord" and "MS Bergensfjord" in NOx-liable waters for at least 2 years The of the NOx-grants Noterecording 16 NOx-grants - group through profit or loss is accrued in line with the depreciation profile of the operating assets that the grants relate to. from time of delivery.

Below is a list of accounting values (figures in TNOK) Fjord Line AS received 0 MNOK in NOx-grants in 2021 (0 MNOK in 2020).

The ship "MS Stavangerfjord" was delivered in July 2013, and the ship "MS Bergensfjord" was delivered in January 2014.

Grants received 2020 0 Because the ships are gas powered (LNG), with related low emission, Fjord Line AS was granted a contribution from the NOx-fund.

In the 2021-accounts MNOK 4,8 of the grants have been recorded (4,8 MNOK in 2020). The amount is classified as reduction of depreciation in the income statement.

Total received grant 31.12.2020 Per 31.12.2014 contributions of MNOK 147,2 in total were paid to Fjord Line AS connected to 166 these809 projects.

The recording of the NOx-grants through profit or loss is accrued in line with the depreciation profile of the operating assets that the grants relate to.

Grants recognised loss 790 As a condition for through the grantprofit Fjordand Line AS2020 has been obliged to use "MS Stavangerfjord" and "MS-4Bergensfjord" in NOx-liable waters for at least 2 years Accumulated grants recognised through profit and loss 31.12.2020 -37 490 from time of delivery.

Below is a list of accounting values (figures in TNOK) Grants received, not recognised through profit and loss 31.12.2020 129 319 Fjord Line AS received Grants received 2021 0 MNOK in NOx-grants in 2021 (0 MNOK in 2020).

0 Grants received 2020 0 Total received grant 31.12.2021 166 809 Total received grant 31.12.2020 166 809 In the 2021-accounts MNOK 4,8 of the grants have been recorded (4,8 MNOK in 2020).

The amount is Grants recognised through profit and loss 2021 -4 790 classified as reduction of depreciation in the income statement.

Grants recognised through profit and loss 2020 -4 790 The recordinggrants of therecognised NOx-grantsthrough throughprofit profitand or loss 31.12.2021 is accrued in line with the depreciation profile of the operating assets that the grants relate to.

Accumulated -42 280 Accumulated grants recognised through profit and loss 31.12.2020 -37 490 Grants received, not recognised through profit and loss 31.12.2021 124 529 Grants received, not recognised through profit and loss 31.12.2020 129 319 Below is a list of accounting values (figures in TNOK) Grants received 2021 0 Total received grant 31.12.2021 166 809 Grants 2020 - group 0 Note 17received Derivatives Grants recognised through profit and loss 2021 -4 790 Total received grant 31.12.2020 166 809 Accumulated grants recognised through profit and loss 31.12.2021 -42 280 GrantsLine recognised through profit and connected loss 2020 to fuel per 31.12.2021: -4 790 Fjord has no financial contracts Grants received, not recognised through profit and loss 31.12.2021 124 529 Accumulated -37 490 (Marine Gas grants recognised through profit and loss 31.12.2020 Grants recognised through profit and loss 31.12.2020 129 319 ii) LNG received, (the ships not Bergensfjord and Stavangerfjord) Grants received 2021 0 Note 17 Derivatives - group Total received grant 31.12.2021 166 809 and then continuously at fair value.

The derivatives are recognised in the balance sheet at fair value at the time of entering into the contracts Grants recognised lossincluded 2021 as part of the recognised hedge and the value change -4 790is recognised through profit and loss as "other financial expences").

Derivatives enteredthrough prior toprofit 2018 and are not Fjord Line has no financial contracts connected to fuel per 31.12.2021: Accumulated grants recognised through profit and loss 31.12.2021 -42 280 (Marine Gas Grants received, not recognised through profit 31.12.2021 124 529 Fjord Line has no significant derivatives related to and LNGloss pr 31.12.2021. ii) LNG (the ships Bergensfjord and Stavangerfjord) Fair value of these derivatives per 31.12.2021 is TNOK 0 (TNOK 2 per 31.12.2020).

Note 17 ⁄⁄ Derivatives – the group The derivatives are recognised in balance sheet at fair value at the time of entering into the contracts and then continuously at fair value.

The entered during 2018 and 2020 are entirely considered as hedges and are recognised as follows.

Notecontract 17 Derivatives - group Derivatives entered prior to 2018 are not included as part of the recognised hedge and the value change is recognised through profit and loss as "other financial expences").

Fjord derivatives related to fuel MGO 31.12.2021.

Fjord Line Line has has no no significant financial contracts connected perpr31.12.2021: Fjord Line has no significant derivatives related to LNG pr 31.12.2021.

(Marine Fair valueGas of these derivatives per 31.12.2021 is TNOK 0 (TNOK - 13.257 per 31.12.2020) Fair value of these derivatives per 31.12.2021 is TNOK 0 (TNOK 2 per 31.12.2020). ii) LNG (the ships Bergensfjord and Stavangerfjord) Fjord Line has no significant derivatives related to MGO pr 31.12.2021.

The contract entered during 2018 and 2020 are entirely considered as hedges and are recognised as follows.

Fair of these 31.12.2021 TNOK 0 (TNOK per of 31.12.2020) The value derivatives arederivatives recognisedper in the balance is sheet at fair value at4.498 the time entering into the contracts and then continuously at fair value.

Derivatives entered prior to 2018 are not included as part of the recognised hedge and the value change is recognised through profit and loss as "other financial expences").

Fjord Line has no significant derivatives related to MGO pr 31.12.2021.

The group has also entered into a interest rate hedge agreement related to its external financing. As described in the accounting principle note, the group follows Fair value of these derivatives per 31.12.2021 is TNOK 0 (TNOK - 13.257 per 31.12.2020) hegde accounting to these contracts.

At thetobalance date, the net value of future contracts amounts to TNOK - 56.603 (TNOK -85.577 per 2020) Fjord Line has no linked significant derivatives related LNG prsheet 31.12.2021. and classified as long-term Fairisvalue of these derivativesdebt. per 31.12.2021 is TNOK 0 (TNOK 2 per 31.12.2020).

Fjord Line has no significant derivatives related to MGO pr 31.12.2021.

Fair value of these derivatives per 31.12.2021 is TNOK 0 (TNOK 4.498 per 31.12.2020) The contract entered during 2018 and 2020 are entirely considered as hedges and are recognised as follows.

The group has also entered into a interest rate hedge agreement related to its external financing. As described in the accounting principle note, the group follows Fjord Line has no significant derivatives related to MGO pr 31.12.2021. hegde accounting linked to these contracts. At the balance sheet date, the net value of future contracts amounts to TNOK - 56.603 (TNOK -85.577 per 2020) Fair value of these derivatives per 31.12.2021 is TNOK 0 (TNOK - 13.257 per 31.12.2020) and is classified as long-term debt.

Fjord Line has no significant derivatives related to MGO pr 31.12.2021.

Fair value of these derivatives per 31.12.2021 is TNOK 0 (TNOK 4.498 per 31.12.2020) The group has also entered into a interest rate hedge agreement related to its external financing. As described in the accounting principle note, the group follows hegde accounting linked to these contracts. At the balance sheet date, the net value of future contracts amounts to TNOK - 56.603 (TNOK -85.577 per 2020) and is classified as long-term debt.

74

Annual report 2021 ⁄⁄ Fjord Line

Note 18 ⁄⁄ Subsequent Event

Note 18 Subsequent events – group

The Group has since March 2020 experienced increasingly adverse effects of the Covid-19 outbreak. The outbreak developed rapidly, and the situation affects Fjord Lines business significantly as the number of travelers decreased in line with the respective Governments closing of borders as well as implementation of other travel restrictions in order to reduce the spread of the virus. This situation has had a high priority in the Group and the management team has designed and implemented several extensive measures in order to immediately adjust the cost base in order to protect the Groups cash-flow, by eliminating cash-negative operations this extraordinary situation has brought about.

These actions consist among others of temporary changes in our route network and deployment of vessels, as well as layoff of personnel and other robust cost reductions in order to adjust the cost base to the present market demand. The Group established an emergency route, primarily for cargo, to ensure the flow of goods between Norway and the EU with two daily departures in each direction between Kristiansand and Hirtshals.

The market started its recovery in Q1 2022 to pre-covid levels as a direct consequence of most covid-19 restrictions being lifted in Norway, Denmark and Sweden, and the Group has a booking pace for the high-season rivalling the strong year of 2019.

The Group has secured a sustainable financial restructuring through negotiations with senior lenders 30.04.2021, 17.02.2021 and 30.06.2022 that will provide the Group with a reliable financial runway. The financial restructuring consists of owner contributions as well as 75% postponement of instalments for twelve months. The Group also renegotiated its financial covenants.

Fjord Line has during the pandemic slimmed its organization and have a very effective operation focused on the EBITDA driving routes. The business as of April 2022 is strong and resembling pre-Covid levels in bookings. The Board of Directors are confident that measures taken by the management throughout these challenging years will contribute to the positive underlying development that the Group experienced pre-pandemic. The Board of Directors also concurs with the management team on the positive outlook hereunder expectations that the Group will further improve on the pre Covid-19 results in the years to come.

In February 2022, Russian armed forces invaded Ukraine. The international community has responded with several sanctions against Russia. Russia is one of the top three crude producers and the second largest producer of natural gas in the world, and energy markets has had a drastic and volatile development since the invasion started. Fuel, and particularly natural gas, is a major costs component for Fjord Line and the recent price development is posing a significant burden for the Group. The Management team is following the development closely and are taking actions to mitigate its effect and associated risk towards the Group, hereunder the Group has hedged about 40% of its LNG consumption for Q3 2023 and about 16% for Q3 2024.

The Group is not involved in any litigations.

75

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

• Income statement • Balance sheet • Cash flow statement • Accounting policies • Notes

76

Annual report 2021 ⁄⁄ Fjord Line

Annual accounts FJORD LINE AS – PARENT COMPANY

Fjord Line AS - Income statement

Income statement

(1,000 NOK) (1,000 NOK)

Note Note

Operating income: Sales revenues Other operating income Total operating income

Parent company

Parent company 2020 2020 NGAAP NGAAP

770 039 25 711 795 751

672 565 34 819 707 384

143 496 75 785 18 310 0 838 739 1 076 330

123 186 80 701 12 827 14 724 659 036 890 473

-280 579

-183 089

742 131 073 44 746 -26 108 -145 100 -18 5 335

0 107 742 0 -22 590 -97 039 -27 537 -39 425

-275 245

-222 514

-62 696

-48 690

Ordinary result after tax

-212 548

-173 824

Result for the year

-212 548

-173 824

Allocation of the result Transferred to other equity/uncovered loss Total

-212 548 -212 548

-173 824 -173 824

Operating expenses: Cost of goods Wage costs Depreciation of property, plant and equipment and intangible assets Write-downs of tangible and intangible assets Other operating expenses Total operating expenses

1 1, 2 1

Parent company

Parent company 2021 2021 NGAAP NGAAP

3 9, 10 9 3, 4, 5, 14

Operating result Financial items: Income from subsidiaries Interest income Other financial income Intergroup guarantee expense Interest expenses Other financial expenses Net financial items

8 6, 13 7 6 6, 19 7, 19

Ordinary result before tax Tax expense on ordinary result

8

77

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

Balance sheet FJORD LINE AS – PARENT COMPANY per 31 December 2021 Fjord Fjord Fjord Line Line Line AS ASAS - -Balance Balance - Balance sheet sheet sheet per per per 3131December 31 December December

(1,000 NOK) (1,000 (1,000 (1,000 NOK) NOK) NOK)

ASSETS ASSETS ASSETS

Assets

Fixed Fixed Fixed assets assets assets Intangible Intangible Intangible assets assets assets WEB-project, WEB-project, WEB-project, concept concept concept development development development etc.etc. etc.

Intangible Intangible Financial Financial lease lease asset assetasset Intangible Financial lease Deferred Deferred taxtax asset asset Deferred tax asset Total Total intangible intangible assets assets Total intangible assets Property, Property, plant plant and and equipment equipment Property, plant and equipment Land Land plots plotsplots Land Buildings Buildings andand plants plants Buildings and plants Buildings Buildings Financial Financial lease lease asset assetasset Buildings Financial lease Movables, Movables, equipment, equipment, improvements improvements ships ships etc. etc. etc.

Movables, equipment, improvements ships Total Total property, property, plant plant and and equipment equipment Total property, plant and equipment Financial Financial fixed fixed assets assets Financial fixed assets Investment Investment in in subsidiary subsidiary Investment in subsidiary Financial Financial receivables receivables Financial receivables Other Other investments, investments, incl. incl. shares shares in in associate associate Other investments, incl. shares in associate Total Total financial financial fixed fixed assets assets Total financial fixed assets

Parent company

9 9 9 9 8 8

9 9 8

103 103 302 103 302 302 7 928 7 928 7 928 351 351 717 717 717 351 462 462 946 946 946 462

9090 653 653 90 653 1010 289 289 10 289 289 289 020 020 020 289 389 389 962 962 962 389

1010 1010 1010 1010 1010

10 10 10 10 10

835 835 835 1616 794 794 16 794 1616 789 789 16 789 4545 45 3434 464 464 34 464

835 835 835 9 234 9 234 9 234 8 214 8 214 8 214 112 112 112 1818 396 396 18 396

993 993 441 441 441 993 2 442 2 442 481 481 481 2 442 8080 80 3 436 3 436 001 001 001 3 436

992 992 441 441 441 992 2 024 2 024 844 844 844 2 024 8080 80 3 017 3 017 364 364 364 3 017

3 933 3 933 411 411 411 3 933

3 425 3 425 723 723 723 3 425

1111 11 6, 6, 13136, 13 1212 12

Total Total fixed fixed assets assets Total fixed assets Current Current assests assests Current assests Inventory Inventory Inventory Total Total Inventory Inventory Total Inventory

5 5

5

2727 386 386 27 386 2727 386 386 27 386

2020 697 697 20 697 2020 697 697 20 697

Receivables Receivables Receivables Trade Trade receivables receivables Trade receivables Intergroup Intergroup balances balances Intergroup balances Other Other current current receivables receivables Other current receivables Total Total receivables receivables Total receivables

1414 14 1313 13 1515 15

3535 459 459 35 459 1212 525 525 12 525 4545 450 450 45 450 9393 434 434 93 434

1515 440 440 15 440 7 970 7 970 7 970 145 145 738 738 738 145 169 169 148 148 148 169

Bank Bank deposit, deposit, cash cash etc. etc. etc.

Bank deposit, cash Bank Bank deposit, deposit, cash cash etc. etc. etc.

Bank deposit, cash Total Total Bank Bank deposit, deposit, cash cash etc. etc. etc.

Total Bank deposit, cash

1616 16

6 431 6 431 6 431 6 431 6 431 6 431

2 709 2 709 2 709 2 709 2 709 2 709

127 127 251 251 251 127

192 192 555 555 555 192

4 060 4 060 664 664 664 4 060

3 618 3 618 277 277 277 3 618

Total Total current current assets assets Total current assets Total Total assets assets Total assets

78

Parent company

2021 2020 Note NoteNoteParent Parent Parent company company company Parent Parent Parent company company company Note NGAAP NGAAP 31.12.2021 31.12.2021 31.12.2021 31.12.2020 31.12.2020 31.12.2020 NGAAP NGAAP NGAAP NGAAP NGAAP NGAAP

Annual report 2021 ⁄⁄ Fjord Line

Fjord Line - Balance sheet per 31 December (1,000 FjordNOK) Line - Balance sheet per 31 December

(1,000 NOK) EQUITY AND LIABILITIES

Note

Equity EQUITY AND LIABILITIES

Note Note

EQUITY Paid-in equity EQUITY Share capital Paid-in equity Own shares Share capital premium account Own Totalshares paid-in equity Share premium account Total paid-in equity Retained earnings Other equity/Uncovered loss Retained earnings Total retained earnings Other equity/Uncovered loss Total retained equity earnings Total equity

17, 18 18 17,1818 18 18 18 18 18 18

ParentParent company company 2021 31.12.2021 NGAAP Parent company NGAAP 31.12.2021 NGAAP 569 312 -66 569 228 312 432 -66 797 678 228 432 797 678 -205 459 -205 459 -205 459 -205 592 459 219

Parent company Parent company 31.12.20202020 NGAAP Parent company NGAAP 31.12.2020 NGAAP 544 312 -109 544 203 312 432 747-109 634 203 432 747 634 7 089 7 089 7 089 089 7547 724

592 219

754 724

LIABILITIES Non-current debt to credit institutions etc.

19 Non-current Received, not liabilities/non-current recognised contributionprovisions 2 Non-current debt to credit institutions etc.

19 Financial leasing Received, not recognised contribution Pension liability 32 Financial leasing debt 19 Other non-current Pension liability liabilities/non-current provisions 3 Total non-current Other non-current debt 19 Total non-current Current liabilities liabilities/non-current provisions Current debt to credit institutions 19 Current liabilities Trade payables Current debt to credit institutions 19 Tax payable 8 Trade Publicpayables duties owing Tax payablebalances Intergroup 13,819 Public duties owing Other current liabilities 19 Intergroup balances 13, 19 Total current liabilities Other current liabilities 19 Total Total current liabilitiesliabilities

2 799 800 78 378 2 799 13 800 400 781 378 333 13 11 400 108 333 2 9041 018 11 108 2 904 018 333 072 66 283 333 0720 666 283 415 19 7540 415 1386 903 19 426 754 564 138 903 564 444 426 3 468

2 418 256 83 064 2 418 11 256 074 833 064 283 11 13 074 796 283 2 5293 473 13 796 2 529 473 71 705 21 059 71 7050 214 059 391 134 8640 391 1024 062 134 334 864 081 102 062 334 554 081 2 863

Total liabilities equity and liabilities

34 468 060 444 664

23 863 618 554 277

Total equity and liabilities Egersund 04.07.2022

4 060 664

3 618 277

LIABILITIES Liabilities Non-current liabilities/non-current provisions

18

Egersund 04.07.2022 Peter Frølich Chairman of the Board Peter Frølich Egersund Chairman04.07.2022 of the Board Heidi Nag Flikka Board Member Heidi Nag Flikka Board Member Peter Frølich Chairman of the Board Frode Teigen

Kristian Eikre Board Member Kristian Eikre Board Member

Kristian Eikre Board Member

Board Member Frode Teigen Board Member

Heidi Nag Flikka Board Member

Christian Fredrik Grønli Board Member Christian Fredrik Grønli Board Member Christian Fredrik Grønli BoardThorsted MemberHansen Brian Managing Director Brian Thorsted Hansen Managing Director

Frode Teigen Board Member

Brian Thorsted Hansen Managing Director

79

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

Fjord Line’s brand-new catamaran HSC Fjord FSTR was delivered in February 2021.

80

Annual report 2021 ⁄⁄ Fjord Line

Cash flow statement FJORD LINE AS – PARENT COMPANY per 31 December 2021 (1,000 NOK)

Cash flow statement - parent company (TNOK) Cash flows from operational activities Result before tax expense Taxes paid in the period Depreciation Write-downs Gain/loss from sale of property, plant and equipment/intangible assets Change in inventories Change in trade receivables Change in trade payables Gain/loss from sale of operating assets/intangible assets Change in other accurals, incl. net agio and non-current balances Net cash flows from operational activities

2021 2021

2020 2020

-275 245 0 18 310 0 0 -6 689 -20 019 45 224 0 40 267 -198 152

-222 514 0 12 827 14 724 0 11 999 17 655 -137 811 0 180 228 -122 892

Cash flows from investing activities Proceeds from sale of property, plant and equipment Purchase/manufacturing of property, plant and equipment/intangible assets Prepayment assets Interest received Loan to subsidiary Investment in subsidiary Net cash flows from investing activities

0 -44 664 0 0 -417 637 -1 000 -463 301

0 -46 530 0 0 -21 987 0 -68 517

Cash flows from financing activities Raising of interest bearing debt (net) Repayment of non-current interest bearing debt Change in current debt to credit institutions Group contribution received Payment of interest Cash contribution share issue (net) Net cash flows from financing activities

569 466 0 259 134 742 -214 167 50 000 665 175

157 042 0 0 0 -96 758 50 409 110 693

Net change in cash and cash equivalents

3 722

-80 716

Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

2 709 6 431

83 425 2 709

Specification of cash reserves at the end of the period Bank deposit and cash

6 431

2 709

81

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

Accounting policies FJORD LINE AS – PARENT COMPANY

The financial statements have been prepared in accordance with the Accounting Act and generally accepted accounting principles in Norway.

Sales revenues Sale of goods is recognised in the income statement at the time of delivery. Time of delivery means the time of transfer of risk and control connected to the delivered goods. Services, including sale of travels and freight, are recognised as executed.

The portion of the sales income, which relates to future service work is reflected in the balance sheet as unearned income from the sale and is then recognised in line with the service work performed.

Classification and valuation of balance sheet items Assets intended for long term ownership or use have been classified as fixed assets.

Assets relating to the trading cycle have been classified as current assets. Receivables are classified as current assets if they are to be repaid within one year after the transaction date. Similar criteria apply to liabilities.

Current assets are valued at the lower of acquisition cost and net realizable value.

Current liabilities are reflected in the balance sheet at nominal value on the establishment date.

Fixed assets are valued at acquisition cost. Property, plant and equipment whose value will deteriorate are depreciated on a straight line basis over the asset's estimated useful life. The fixed assets are subject to impairment to net realizable value if a value reduction occurs which is not believed to be temporary.

The impairment is reversed to the extent that the reason for the impairment is no longer present. Non-current liabilities are reflected in the balance sheet at nominal value at the establishment date.

Intangible assets Expenses for intangible assets are reflected in the balance sheet when it is considered likely that the future financial benefits relating to the asset will be received by the company and the acquisition cost of the asset can be reliably measured.

82

Annual report 2021 ⁄⁄ Fjord Line

Property, plant and equipment Property, plant and equipment are reflected in the balance sheet and depreciated over the assets’ expected useful life on a straight-line basis provided they have an expected useful life of more than 3 years and a cost price exceeding NOK 15,000. Direct maintenance of an asset is recognised under operating expenses as and when it is incurred. Additions or improvements are added to the asset's cost price and depreciated together with the asset. The split between maintenance and additions/improvements are determined based on the asset’s condition at the acquisition date.

Leasing A leasing agreement is classified as financial or operational lease in accordance with the contents of the individual agreement. The agreement is classified as financial lease if the major part of financial risk and control connected to the underlying lease object has been transferred to the lessee.

Other leasing agreements are classified as operational.

Operational assets in leasing agreements assessed as financial lease are activated in the balance sheet at the value of the compensation in the leasing agreement and depreciated as property, plant and equipment. The principal portion of the leasing liability is recorded as non-current liabilities.

The liability is reduced with lease paid less deduction for calculated interest expense. The lease payments are treated as an operating expense which is distributed over the total leasing period for agreements that are classified as operational.

Subsidiaries, associated companies and joint ventures Subsidiaries, associated companies and joint ventures are assessed in accordance with the cost method in the company accounts. The investment is valued at acquisition cost for the shares, unless impairment has been necessary.

Dividend from the subsidiaries is recognised as income to the extent accumulated dividend exceeds accumulated result in the owner period.

Inventories Inventories of purchased goods are valued at the lower of acquisition cost according to the FIFO-principle and fair value. A write-down is made for any foreseeable obsoleteness.

Trade receivables Trade receivables and other receivables are reflected in the balance sheet at nominal value after deduction of provision for bad debts. Provision for bad debts is made based on individual assessment of each receivable.

Current investments Current investments (including shares and derivatives valued as current assets) are considered to be trading portfolio and are valued at fair value at the balance sheet date. Unrealized gain/ loss is recognised in the income statement under financial items. Dividend and other contributions are recognised as other financial income

Hedging Derivatives valued as hedging are recognised in the balance sheet at acquisition cost. This corresponds to fair value at the time of entering into the derivative contracts. The derivatives are recognised through profit or loss when delivered and classified in the income statement on the same line as the underling hedging object.

Monetary items in foreign currency Monetary items in foreign exchange are valued at the exchange rate at the end of the accounting year. Hedge accounting is not used. Transactions in foreign currency are converted into the functional currency (NOK) at the current exchange rate at the transaction date.

Further information is disclosed in notes to the financial statement

Tax The tax expense in the income statement comprises both payable taxes for the period and changes in deferred tax/ deferred tax asset. Maximum deferred tax asset is calculated based on 23% of total basis for the temporary differences existing between accounting and tax values at the end of the accounting year and carry forward loss for tax purposes. Deferred tax asset is recognised in

the balance sheet to the extent that carry forward loss for tax purposes and other positions are expected to be used against future earnings. Further information is disclosed in notes.

NOx-fund grants Grants from the NOx-fund related to investments are recognised in the income statement/accrued in line with the depreciation profile of the operating assets that the grants relate to. Grants not recognised in the income statement have been recognised as non-current liabilities/allocation. Further information about accounting treatment and numerical effects is disclosed in notes to the financial statements.

Government grants Government grants related to Covid-19 is recorded as reduction of other operating expenses. All periods applied for government grant in 2021 is included in the financial statement.

Pensions A defined contribution plan is a pension plan under which the group pays fixed contributions to an insurance company. The group has no legal or constructive obligations once the contributions have been paid. The contributions are recognised as wage costs.

A defined benefit plan is a pension plan that is not a defined contribution plan.

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the balance sheet date.

Cash flow statement The cash flow statements are reported gross from investing and financing activities, whereas the accounting result is reconciled against net cash flow from operational activities. Cash and cash equivalents include cash and bank deposits.

83

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

Notes

FJORD LINE AS – PARENT COMPANY Note 1 ⁄⁄ Operating income – parent company Note 1 Operating income - parent company (Figures in in TNOK) TNOK) (Figures Operating income distributed on income area Ticket income Note 1income Operating income - parent company Sales etc. onboard (Figures in TNOK) Cargo income Recognised/accrued grant from the NOx-fund - see also note 19 Operating income distributed on income area Other Ticket Total income Sales income etc. onboard Cargo income Recognised/accrued from the NOx-fund - see also note 19 Note 2 NOx-grant - grant parent company Other Total The ship "MS Stavangerfjord" was delivered in July 2013, and the ship "MS Bergensfjord" was delivered in January 2014.

Notethe 2 ⁄⁄ NOx-grant – parent company Because ships are gas powered (LNG), with related low emission, Fjord Line AS was granted a contribution from the NOx-fund.

Per 31.12.2014 contributions of MNOK 147.2 in total had been paid to Fjord Line AS connected to these projects.

(Figures in TNOK) Note 2 NOx-grant - parent company As a condition for the grant Fjord Line AS was obliged to use "MS Stavangerfjord" and "MS Bergensfjord" in NOx-liable waters for at least 2 years from time of delivery.

The ship "MS Stavangerfjord" was delivered in July 2013, and the ship "MS Bergensfjord" was delivered in January 2014.

Because the ships powered (LNG),in with related low In 2021 Fjord Lineare ASgas received 0 MNOK NOx-grants (0 emission, MNOK in Fjord 2020).Line AS was granted a contribution from the NOx-fund.

Per 31.12.2014 contributions of MNOK 147.2 was in total had beenaspaid to Fjord ASin connected to these projects.

In the 2021 accounts MNOK 4,7 of the grants recognised income (4,2 Line MNOK 2020). The amount was classified as other operating income As a condition for the grant Line was to obliged to in useline "MS Stavangerfjord" andprofile "MS Bergensfjord" in assets NOx-liable waters for at least 2 years in the income statement.

TheFjord grants areAS subject accrual with the depreciation of the operating to which from time relate. of delivery. the grants

2021 296 397 277 510 194 522 4 687 222021 635 296 795 397 751 277 510 194 522 4 687 22 635 795 751

2020 280 242 213 702 171 618 4 217 372020 605 280 707 242 384 213 702 171 618 4 217 37 605 707 384

2021 64 093 10 342 1 203 147 752021 785 64 093 10 342 1 203 147 75 785

2020 66 112 9 818 1 438 3 333 802020 701 66 112 9 818 1 438 3 333 80 701

In 2021isFjord Line AS 0 MNOK in NOx-grants (0 MNOK in 2020).

Below a summary of received accounting values (figures in TNOK) In the 2021 accounts MNOK 4,7 of the grants was recognised as income (4,2 MNOK in 2020). The amount was classified as other operating income in the income statement.

Grants received 2020 The grants are subject to accrual in line with the depreciation profile of the operating assets to which 0 the grants relate.grants 31.12.2020 Total received 166 809 Grants recognised as income 2020 -4 217 Below is a summary of accounting values (figures in TNOK) Accumulated grants recognised as income 31.12.2020 -83 665 Grants received, not recognised in the income statement 31.12.2020 83 144 Grants received 2020 0 Total 166 8090 Grantsreceived receivedgrants 2021 31.12.2020 Grants recognised as income 2020 -4 809 217 Total received grants 31.12.2021 166 Accumulated grants as income 31.12.2020 -83 Grants recognised asrecognised income 2021 -4 665 687 Grants received, notrecognised recognised the income statement 31.12.2020 83 144 Accumulated grants as in income 31.12.2021 -88 352 Grants received, not recognised in the income statement 31.12.2021 78 457 Grants received 2021 0 Total received grants 31.12.2021 166 809 Grants income 2021 -4 687 Note 3 recognised Wage costs,asnumber of employees, remunerations, pension etc. - parent company Accumulated grants recognised as income 31.12.2021 -88 352 Grants not recognised 78 457 (Figuresreceived, in table below in TNOK) in the income statement 31.12.2021

84

Wage costs Note 3 Wage costs, number Wages, incl. feeding crew etc.of employees, remunerations, pension etc. - parent company Payroll tax (Figures costs in table below in TNOK) Pension Other remunerations Wage costs Total Wages, incl. feeding crew etc.

Payroll Averagetax number of man-labour years during the accounting year has been 84 in 2021 consisting of 45 women and 39 men (72 in 2020).

Pension costs Other remunerations NORWAY Total Description Female % Male % Total % Temporary 4 29 % 10 71 % 14 100 %

Grants received 2021 Total received grants 31.12.2021 Grants recognised as income 2021 Accumulated grants recognised as income 31.12.2021 Grants received, not recognised in the income statement 31.12.2021

0 166 809 -4 687 -88 352 78 457

Annual report 2021 ⁄⁄ Fjord Line

Note 3 Wage costs, number of employees, pension etc. - parent company Note 3 ⁄⁄ Wage costs, numberremunerations, of employees, remunerations, pension etc. – parent company (Figures in table below in TNOK) Wage costs Wages, incl. feeding crew etc.

Payroll tax Pension costs Other remunerations Total

2021 64 093 10 342 1 203 147 75 785

2020 66 112 9 818 1 438 3 333 80 701

2021 1 875 298 1 033

2020 3 200 571 950

Average number of man-labour years during the accounting year has been 84 in 2021 consisting of 45 women and 39 men (72 in 2020).

NORWAY Description Temporary Part-time Description (Figures in TNOK) Maternity leave Total days Days pr. person

Female 4 23

% 29 % 59 %

Male 10 16

% 71 % 41 %

Total 14 39

% 100 % 100 %

Female 7 742 106

% 58 % 73 % 65 %

Male 5 280 56

% 42 % 27 % 35 %

Total 12 1 022 162

% 100 % 100 % 100 %

Remunerations for CEO and the Board of Directors (figures in TNOK) Wages CEO incl bonus Other remuneration CEO Board of Directors' fee No loan or guarantee have been provided for CEO or any of the members of the Board of Directors.

The CEO is included in the company's pension agreement, cf mentioned below. According to the agreement, 20 % of gross salary is allocated annually and the liability amounts to per 31.12.2021 TNOK 483 (TNOK 2.272 as at 31.12.20).

The chief executive officer is entitled to a severance payment equivalent to 12 months’ salary without the right to holiday pay and pension rights, commencing at the time of expiry of notice period, when the resignation is at the request from the company.

Pensions The company has taken on a pension savings agreement on behalf of the present CEO and another two individuals.

The market value of the contributions/assets was TNOK 5.543 per 31.12.2021 (TNOK 3.101 per 31.12.2020).

Gross liability per 31.12.2021 is calculated to TNOK 6.876 related to these persons (TNOK 6.384 per 31.12.2020).

Net liability is thus TNOK 1.333 per 31.12.2021 (TNOK 3.283 per 31.12.2020), and is classified as pension liability in the balance sheet.

In addition the company has established a defined contribution pension scheme for its employees.

The company pays fixed contributions to an insurance company. The company has no further obligations to pay once the contributions have been paid.

The contribution constitutes from 2% to 4% of the employees' salary.

Auditor Expensed fee to auditor relates to the following services (exclusive of vat), figures in TNOK:

2021 690 307 88 2021 482 690 1 567 307 88 482 1 567

Audit services Auditor Certification services/Agreed-upon control procedures Expensed fee to auditor relates to the following services (exclusive of vat), figures in TNOK: Accounting and tax related/duty related technical assistance Other services Audit services Total auditor's fee Certification services/Agreed-upon control procedures Accounting and tax related/duty related technical assistance Other services Note 4 Leasing expenses and transactions with related parties - parent company Total auditor's fee Expensed lease of operating assets not recognised in the balance sheet for 2021 and 2020 (operational lease) (Figures in TNOK) Note 4 ⁄⁄ Leasing expenses and withcompany related parties – parent company Note 4 Leasing expenses and transactions withtransactions related parties - parent

2020 674 297 49 2020 186 674 1 205 297 49 186 1 205

Expensed lease Expensed lease 2021 2020 18 603 19 550 580 618 583 135 Expensed lease Expensed lease 29 766 24 872 2021 2020 18 603 19 550 580 618 583 135 29 766 24 872

Operating assets Expensed lease of operating assets not recognised in the balance sheet for 2021 and 2020 (operational lease) Lease of premises and similar *) (Figures in TNOK) Lease of ships, including crew Other leasing cost Operating assets Lease of premises and similar *) *) Leasing expenses and similar: For 2021 leasing expenses of TNOK 1.676 to company controlled by owners.

Lease of ships, including crew (TNOK 1.821 in 2020). The leasing conditions are market conditions.

Other leasing cost *) Leasing expenses and similar: For 2021 leasing expenses of TNOK 1.676 to company controlled by owners.

Note 5 Inventories and fuel expenses - parent company (TNOK 1.821 in 2020). The leasing conditions are market conditions.

(Figures in TNOK) Note 5 Inventories and fuel expenses - parent company Inventories Fuel (Figures in TNOK) Goods for resale Other items, including key-cards etc.

Inventories Total inventories at acquisition cost 31.12.

Fuel Write-down 31.12.

Goods for resale Total book value of inventories 31.12.

Other items, including key-cards etc.

Total inventories at acquisition cost 31.12.

Write-down 31.12.

Write-down of TNOK 1,9 has been made of the inventory by year end.

Total book value of inventories 31.12.

2021 8 286 20 566 408 2021 29 260 8 286 1 874 20 566 27 386 408 29 260 1 874 27 386

2020 2 365 19 936 896 2020 23 197 2 365 2 500 19 936 20 697 896 23 197 2 500 20 697

85

Note 4 Leasing expenses and transactions with related parties - parent company Expensed lease of operating assets not recognised in the balance sheet for 2021 and 2020 (operational lease) Note 4 Leasing expenses andassets transactions with related - parent company (Figures inlease TNOK) Expensed of operating not recognised in theparties balance sheet for 2021 and 2020 (operational lease)

Expensed lease Expensed lease 2021 Expensed lease 2020 Expensed lease 182021 603 192020 550 Expensed lease Expensed lease 580 583 18 618 603 19 135 550 292021 766 242020 872 580 618 583 135 18 19 29 603 766 24 550 872 580 618 583 135 29 766 24 872

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS (Figures in TNOK)

Expensed Operatinglease assetsof operating assets not recognised in the balance sheet for 2021 and 2020 (operational lease) (Figures TNOK) Lease of in premises Operating assets and similar *) Lease of of premises ships, including crew*) Lease and similar Operating assets Other leasing cost Lease of ships, including crew Lease of premises Other leasing cost and similar *) Lease of ships, including crew For 2021 leasing expenses of TNOK 1.676 to company controlled by owners. *) Leasing expenses and similar: Other leasing cost (TNOK 1.821 in 2020). leasing areexpenses market conditions. *) Leasing expenses and The similar: For conditions 2021 leasing of TNOK 1.676 to company controlled by owners.

(TNOK 1.821 in 2020). The leasing conditions are market conditions. *) Leasing expenses and similar: For 2021 leasing expenses of TNOK 1.676 to company controlled by owners.

(TNOK 1.821 2020).

The leasing conditions are market conditions.

Note 5 Inventories and fuel expenses -fuel parent company Note 5 ⁄⁄ inInventories and expenses – parent company

Note 5 Inventories and fuel expenses - parent company (Figures in TNOK) (Figures in TNOK) Note 5 Inventories (Figures in TNOK) and fuel expenses - parent company Inventories (Figures in TNOK) Fuel Inventories Goods for resale Fuel Inventories Other items, including key-cards etc.

Goods for resale Fuel Total items, inventories at acquisition cost 31.12.

Other including key-cards etc.

Goods for resale Write-down 31.12.at acquisition cost 31.12.

Total inventories Other including key-cards etc.

Total items, book value of inventories 31.12.

Write-down 31.12.

Total at inventories acquisition 31.12. cost 31.12.

Total inventories book value of Write-down 31.12.

Total book value of inventories 31.12.

Write-down of TNOK 1,9 has been made of the inventory by year end.

2021 82021 286 208 566 286 408 202021 566 286 298 260 408 20 874 291 566 260 408 271 386 874 29 27 260 386 1 874 27 386

2020 22020 365 192 936 365 896 192020 936 365 232 197 896 19 500 232 936 197 896 202 697 500 23 20 197 697 2 500 20 697

Write-down of TNOK 1,9 has been made of the inventory by year end.

Expenses related to fuel are classified as other operating expenses in the income statement.

Write-down ofamounts TNOK has been made of theoperating inventory by year in end.

For 2021 this toare TNOK 179.090 (TNOK 139.607 in 2020).

Expenses related to fuel1,9 classified as other expenses the income statement.

For 2021 this amounts to TNOK 179.090 (TNOK 139.607 in 2020).

Expenses related to fuel are classified as other operating expenses in the income statement.

For this amounts to TNOK 179.090 139.607 inguarantee 2020). commission - parent company Note2021 6 Interest income/interest expenses(TNOK and intergroup

Note 6 ⁄⁄ Interest income/interest expenses and intergroup commission – parent company Note 6 Interest income/interest expenses and intergroup guarantee commission - parentguarantee company (Figures in TNOK) Note 6 Interest income/interest expenses and intergroup guarantee commission - parent company (Figures in (Figures in TNOK) TNOK) Interest income comprises: (Figures in TNOK) Interest income comprises: 2021 2020 Interest incomeon comprises: Interest income loan to subsidiary (intergroup interests) 1202021 490 1032020 570 Externalincome intereston income 10 490 583 172 Interest loan to subsidiary (intergroup interests) 120 1034 570 Total interest income 131 073 10742020 742 External 102021 583 172 Interest income on loan to subsidiary (intergroup interests) 120 073 490 103 742 570 Total 131 107 External interest income 10 583 4 172 Total 131 073 107 742 Interest expenses comprises: Interest expenses comprises:

2021 Interest expenseson comprises: Interest expenses loan to subsidiary (intergroup interests) 935 2021 Externalexpenses interest expenses 143 261 Interest on loan to subsidiary (intergroup interests) 935 Other Interest expense 904 External interest expenses 1432021 261 Interest expenses on loan to subsidiary (intergroup interests) 935 Total Interest 145 100 Other expense 904 External interest expenses 143 100 261 Total 145 Other Interestintergroup expense loans are subject to interest calculation in accordance with market conditions. Further information about intergroup 904 Non-current Total 145 100 loans/balances is disclosed in are notesubject 11. to interest calculation in accordance with market conditions. Further information about Non-current intergroup loans intergroup loans/balances is disclosed in note 11.

Non-current loans are subject to interest guarantee calculationcost in accordance with market conditions.

In 2021 Fjordintergroup Line AS has expensed an intergroup of TNOK 26.108 (TNOK 22.590 inFurther 2020). information about intergroup loans/balances is disclosed in note 11.ancontracts Fjord Line ASLine has entered several onguarantee loan financing of TNOK the group's ships.

The shipowning In 2021 Fjord AS has into expensed intergroup cost of 26.108 (TNOK 22.590 in 2020). subsidiaries Fjord I, Fjordcontracts Skibsholding II, financing Fjord Skibsholding III, Fjord IV and Fjord Skibsholding V Fjord Line AS hasSkibsholding entered into several on loan of the group's ships.Skibsholding The shipowning In 2021 Lineprovided AS has expensed an Fjord intergroup guarantee of TNOK 26.108 (TNOK 22.590 in have on Fjord theirFjord part security for Line AS' related to the loan contracts. subsidiaries Skibsholding I, Fjord Skibsholding II,liabilities Fjordcost Skibsholding III, Fjord Skibsholding IV2020). and Fjord Skibsholding V Fjord Line ASpart hasprovided entered into several onAS' loan financing of theto group's ships.

Theon shipowning As a compensation the shipowning subsidiaries have received guarantee commission based market conditions. have on their security forcontracts Fjord Line liabilities related the loan contracts. subsidiaries Fjord Skibsholding I, Fjord Skibsholding II, Fjord Skibsholding III, Fjord Skibsholding IV and Fjord Skibsholding V As a compensation the shipowning subsidiaries have received guarantee commission based on market conditions. have on their part provided security for Fjord Line AS' liabilities related to the loan contracts.

As a compensation the shipowning have received commission based on market conditions.

Note 7 Other financial income andsubsidiaries other financial expensesguarantee - parent company Note 7 Other financial income and other financial expenses - parent company (Figures in TNOK) Note 7 Other and other financial expenses - parent company Note 7 TNOK) ⁄⁄ financial Other income financial income and other financial expenses – parent company (Figures in Other financial income and other financial expenses comprise the following: (Figures in (Figures in TNOK) TNOK) Other financial income and other financial expenses comprise the following: Other financial income Other financial income and other financial expenses comprise the following: Group received Other contribution financial income Foreign exchange gain related to non-current foreign exchange loan Group contribution received Otherforeign financial income Other exchange gain to non-current foreign exchange loan Foreign exchange gain related Groupfinancial contribution received Other income Other foreign exchange gain Foreign exchange gain related to non-current foreign exchange loan Total financial Other income Other foreign exchange gain Total Other Otherfinancial financialincome expenses Total Foreign exchangeexpenses loss, intergroup receivables, cf. note 13 Other financial Foreign in Euro Foreign exchange exchange loss, loss, including intergroupnon-current receivables,loan cf. note 13 and DKK Other financial expenses Other financial expenses Foreign exchange loss, including non-current loan in Euro and DKK Foreign exchange loss, intergroup receivables, cf. note 13 Total financial Other expenses Foreign Total exchange loss, including non-current loan in Euro and DKK Other financial expenses Total

86

2021 742 2021 37 795 742 20 538 372021 795 742 129 20 538 37 205 795 59 129 20 59 538 205 129 2021 59 205 122021 806 12 8060 2021 180 806 12 824 18 12 8240 18 12 824

2020 976 2020 94 741 976 321 9412020 741 976 971 039 321 94 039 741 97 1 321 97 039

2020 20200 00 192020 6660 790 19 666 19 745 790 19 19 666 745 79 2020 19 745 232020 697 22 23 664 697 921 222020 664 23 282 697 47 921 22 282 664 47 921 47 282

Annual report 2021 ⁄⁄ Fjord Line

Note 8 ⁄⁄ Taxes – parent company (Figures in TNOK)

Note 8 Taxes - parent company (Figures (Figures in inTNOK) TNOK) Specification of deferred tax asset 31.12.2020 8 961 -3 197 6 900 -2 500 -3 283 -76 461 0 -69 580 -1 244 148 -1 313 728 -289 020 -289 020 0

Temporary differences Fixed assets Receivables Gain/loss account Inventory Pension liabilities Other differences including accounting accruals Carry-forward interest deduction Total Carry-forward loss Basis for deferred tax (-deferred tax asset) 22% of basis Deferred tax (deferred tax asset) recognised in the balance sheet Deferred tax asset not recognised in the balance sheet

31.12.2021 12 343 -13 097 5 520 -1 900 -1 333 -76 671 -40 135 -115 273 -1 483 439 -1 598 712 -351 717 -351 717 0

Change -3 382 9 900 1 380 -600 -1 950 210 40 135 45 693 239 291 284 984 62 696 62 696 0

Per 31.12.2021 Fjord Line AS has accumulated basis for deferred tax asset of TNOK 1,598,712.

This implies deferred tax asset (22%) of TNOK 351,717 when recognised in total in the balance sheet.

The Board of Directors following a concrete assessment of the future prospects of Fjord Line AS, under the basis of the net income from the two years prior to Covid-19, found that it has convincing evidence that future earnings will justify capitalization of the deferred tax asset in full. The argument is sustained by the positive operating results in the recent years. This combined with the current plans in long term business plans indicates that we have convincing evidence that we can at least have equivalent earnings in the years to come post Covid-19 as shown in 2019 and this has been taken into account in the assessment.

Specification of taxable result and tax expense: Taxable result Result before tax Dividends from subsidiaries, not taxable Group contribution received Write-down of shares Other permanent differences Employee options recognised as expense Change in temporary differences Issue expenses, offset against eqiuity Application of carry forward loss Carry-forward interest deduction Taxable result

2021 -275 245 0 742 0 -582 0 -4 342 0 0 40 135 -239 291

2020 -222 514 0 0 0 1 195 0 -620 0 0 0 -221 939

Reconciliation of tax expense 22% of financial result 22% of permanent differences Impact of change tax rate Change of deferred tax asset not recognised in the balance sheet Other changes Tax expense

2021 -60 554 35 0 0 -2 178 -62 696

2020 -48 953 263 0 0 0 -48 690

Specification of tax expense Change in deferred tax asset Payable tax Tax expense

2021 -62 696 0 -62 696

2020 -48 690 0 -48 690

Note 9 Intangible assets - parent company (Figures in TNOK) Intangible assets in development

Intangible WEB-projects Financial lease assets etc.

Other intangible Total intangible assets assets

Acquisition cost 31.12.2020 Additions 2021 Completed projects 2021 Disposal 2021 Acquisition cost 31.12.2021

8 451 23 643 -1 467 0 30 627

104 108 2 374 1 167 0 107 650

12 164 0 0 0 12 164

1 951 208 0 0 2 159

126 675 26 225 -300 0 152 600

Accumulated write-down 31.12.2020 Accumulated depreciation 31.12.2020 Book value 31.12.2020 Accumulated write-down 31.12.2021 Accumulated depreciation 31.12.2021 Book value 31.12.2021

4 824 0 3 627 4 824 0 25 803

0 18 267 85 842 0 31 401 76 248

0 1 876 10 288 0 4 237 7 928

0 765 1 186 0 908 1 251

4 824 20 908 100 943 4 824 36 546 111 231

0 0

0 13 135

0 2 360

0 142

0 15 637

Write-down in the year Depreciation in the year

87

Impact of change tax rate Change of deferred tax asset not recognised in the balance sheet Other changes Tax expense

0 0 -2 178 -62 696

0 0 0 -48 690

Specification of tax expense Change in deferred tax asset Payable tax Tax expense

2021 -62 696 0 -62 696

2020 -48 690 0 -48 690

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

Note 9 Intangible assets - parent company– parent company Note 9 ⁄⁄ Intangible assets (Figures (Figures in inTNOK) TNOK) Intangible assets in development

Intangible WEB-projects Financial lease assets etc.

Other intangible Total intangible assets assets

Acquisition cost 31.12.2020 Additions 2021 Completed projects 2021 Disposal 2021 Acquisition cost 31.12.2021

8 451 23 643 -1 467 0 30 627

104 108 2 374 1 167 0 107 650

12 164 0 0 0 12 164

1 951 208 0 0 2 159

126 675 26 225 -300 0 152 600

Accumulated write-down 31.12.2020 Accumulated depreciation 31.12.2020 Book value 31.12.2020 Accumulated write-down 31.12.2021 Accumulated depreciation 31.12.2021 Book value 31.12.2021

4 824 0 3 627 4 824 0 25 803

0 18 267 85 842 0 31 401 76 248

0 1 876 10 288 0 4 237 7 928

0 765 1 186 0 908 1 251

4 824 20 908 100 943 4 824 36 546 111 231

0 0 0

0 13 135 13 135

0 2 360 2 360

0 142 142

0 15 637 15 637

Write-down in the year Depreciation in the year Total depreciation and write-down 2021

Completed projects in 2021 are projects relates to development of websites and moving WEB platform, with a depreciatcion period of 5 years.

The remaining projects relates to development of ERP system in general, group booking, development of Carres, on board portal and BI. The depreciation period is 5 years.

Note 10 ⁄⁄ Property, plant and equipment – parent company Note 10 Property, plant and equipment - parent company (Figures in TNOK)

(Figures in TNOK)

Land plots

Property, plant and equipment (figures in TNOK)

Terminal, buildings Terminal, buildings Financial lease

12 537 3 203 0 15 740

337 0 0 337

33 293 18 739 0 52 032

0 0 8 214 0 141 16 789

0 5 310 7 227

0 224 113

6 918 8 821

291 46

0 13 064 18 396 0 17 568 34 465

854 0

141 0

1 608 0

67 0

2 671 0

5 - 10 years Linear

20 years Linear

3 - 5 years Linear

5 years Linear

Cost price 31.12.2021 13 753 268 986 150 362 310 368 332 843 642 1 000 201 1 078 155

Book value 31.12.2021 13 753 224 987 109 849 310 368 332 842 642 1 000 0 993 441

Book value 31.12.2020 13 753 224 987 109 849 310 368 332 842 642 0 0 992 441

Acquisition cost 31.12.2020 Addition 2021 Disposal 2021 Acquisition cost 31.12.2021

835 0 0 835

11 370 6 819 0 18 189

16 930

Accumulated write-down 31.12.2020 Accumulated depreciation 31.12.2020 Book value 31.12.2020 Accumulated write-down 31.12.2021 Accumulated depreciation 31.12.2021 Book value 31.12.2021

0 0 835 0 0 835

0 9 363 2 007 0 10 217 7 973

0 0 N/A Does not depreciate

Depreciation in the year Write-down in the year Depreciation period (completed operating assets) Depreciation plan

Equipment, Total property, machinery plant and equipment onshore etc. Means of transport

8 214 8 716

Note 11 Investments in subsidiaries - parent company (Figures in TNOK) The investments in subsidiaries are accounted for in accordance with the cost method.

Accounting values are presented below (figures in TNOK).

88

Subsidiary Fjord Line Danmark A/S Fjord Skibsholding I A/S Fjord Skibsholding II A/S Fjord Skibsholding III A/S Fjord Skibsholding IV A/S Fjord Skibsholding V A/S Fjord Line Crewing AS Fjord Line GmbH TOTAL

Time of acquisition 2006 2007 2008 2010 2010 2017 2021 2008

Business address Danmark Danmark Danmark Danmark Danmark Danmark Norge Tyskland

Owner share/voting share 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 %

Accumulated 31.12.2021 Accumulated depreciation write-down 31.12.2020 Book value 31.12.2021 Accumulated depreciation 31.12.2020 Book value 31.12.2020 Depreciation the year 31.12.2021 Accumulated in write-down Write-down the year 31.12.2021 Accumulatedindepreciation Book value 31.12.2021 Depreciation period (completed operating assets) Depreciation Depreciation plan in the year Write-down in the year

00 8350 835 00 00 835 N/A Does not depreciate0 0

Note 11 Investments in subsidiaries - parent company – parent company N/A Note 11 period ⁄⁄ Investments in subsidiaries Depreciation (completed operating assets) Depreciation plan Does not depreciate (Figures (FiguresininTNOK) TNOK)

10 2170 79 973 363

6 9180 2910 17 5680 85 821 46 34 310 224 13 465 064 7 227 113 18 396 Annual ⁄⁄ Fjord Line 1 608 report 202167 2 6710 6 9180 2910 17 5680 8 821 46 34 465 3 - 5 years 5 years Linear Linear 1 608 67 2 671 0 0 0

1410 16 7890

2 007 8540 10 2170 7 973 5 - 10 years Linear 854

8 214 1410 1410 16 789 20 years Linear 141

5 - 10 years Linear

20 years Linear

3 - 5 years Linear

5 years Linear

Cost price 31.12.2021 13 753 268 986 150 362 Cost price 310 368 31.12.2021 332 13 843 753 642 268 986 000 1501 362 201 310 368 1 078 332 155 843

Book value 31.12.2021 13 753 224 987 849 Book 109 value 310 368 31.12.2021 332 13 842 753 642 224 987 000 1091 849 310 3680 993 842 441 332

Book value 31.12.2020 13 753 224 987 109 849 Book value 310 368 31.12.2020 332 13 842 753 642 224 987 109 8490 310 3680 992 842 441 332

0

0

The investments in subsidiaries are accounted in accordance with the cost method.

Note 11 Investments in subsidiaries - parentfor company Accounting values are presented below (figures in TNOK).

(Figures in TNOK) Timewith of the cost method.

The investments in subsidiaries are accounted for in accordance Business address Subsidiary values are presented below (figures in TNOK).acquisition Accounting Danmark Fjord Line Danmark A/S 2006 Danmark Fjord Skibsholding I A/S 2007 Danmark Fjord Skibsholding II A/S 2008of Time Danmark Fjord Skibsholding III A/S 2010 acquisition Business address Subsidiary Danmark Fjord Line Skibsholding A/S 2010 Danmark Fjord DanmarkIV A/S 2006 Danmark Fjord A/S 2017 Danmark Fjord Skibsholding Skibsholding V I A/S 2007 Norge Fjord CrewingIIAS 2021 Danmark Fjord Line Skibsholding A/S 2008 Tyskland Fjord Skibsholding Line GmbH III A/S 2008 Danmark Fjord 2010 TOTAL Danmark Fjord Skibsholding IV A/S 2010

Fjord Skibsholding V A/S FjordLine LineCrewing GmbH was Fjord AS discontinued in 2019

2017 2021 Fjord Line GmbH 2008 Income from investment in subsidiaries and write-down 2021 TOTAL No dividend has been approved from Fjord Line AS' subsidiaries in 2021.

Danmark Norge Tyskland

Owner share/voting share 100 % 100 % Owner 100 % share/voting 100 % share 100 100 % % 100 100 % % 100 100 % % 100 % % 100 100 % 100 % 100 % 100 %

642 1 000 201 1 078 155

642 1 000 0 993 441

642 0 0 992 441

Fjord Line GmbH was discontinued in 2019 Income from from investment investment in in subsidiaries subsidiaries and and write-down write-down 2021 2020 Income No dividend dividend has has been been approved approved from from Fjord Fjord Line Line AS' AS' subsidiaries subsidiaries in in 2021.

2020.

No Background difference cost and pricewrite-down and carrying value of the shares in FSH I and FSH II: Income fromfor investment in between subsidiaries 2020 In 2008 the shares in FSH II were written 20 291.in 2020.

No dividend has been approved from Fjorddown Lineby AS'TNOK subsidiaries In 2009 the shares in FSH I were written down by TNOK 39 246 and the shares in FSH II were written down by TNOK 8 000 In 2009 also TNOK 4.754 in dividend from FSH I and TNOK 12 222 in dividend from fra FSH II were recognised as reduction of carrying valuefor of difference shares.

Background between cost price and carrying value of the shares in FSH I and FSH II:

In 2008 the shares in FSH II were written down by TNOK 20 291.

In 2009 the shares in FSH I were written down by TNOK 39 246 and the shares in FSH II were written down by TNOK 8 000 Note 12 also Investments in other shares/parts -parent In 2009 TNOK 4.754 in dividend from FSH I andcompany TNOK 12 222 in dividend from fra FSH II were recognised as reduction of carrying value ofInvestments shares.

Note 12 ⁄⁄ in other shares/parts – parent company In 2010 Fjord Line AS acquired shares amounting to TNOK 50 in Visit Sørlandet AS. After 2010 there has been neither additions nor disposals.

The investment is recognised in accordance with the cost method. There has been no write-down in 2021 or 2020.

(Figures TNOK) in other shares/parts -parent company Note 12 in Investments In addition Fjord Line AS invested TNOK 30 in Visit Telemark AS in 2016. The investment is recognised in accordance with the cost method. Nor has write-down been made on this investment.

In 2010 Fjord Line AS acquired shares amounting to TNOK 50 in Visit Sørlandet AS. After 2010 there has been neither additions nor disposals.

The investment is recognised in accordance with the cost method. There has been no write-down in 2021 or 2020.

In addition Fjord Line AS invested TNOK 30 in Visit Telemark AS in 2016. The investment is recognised in accordance with the cost method. Nor has write-down been made on this investment.

Note 13 Intercompany balance - parent company– parent company Note 13 ⁄⁄ Intercompany balance (Figuresin inTNOK) TNOK) (Figures Assets - current items: Receivables on subsidiary related to operation etc.*) Other receivables from subsidiaries Total Liabilities - current items: Net debt to subsidiary related to operation Total Net current intercompany balance per 31.12 for Fjord Line AS

2021 11 783 742 12 525

2020 7 970 0 7 970

1 249 1 249

115 906 115 906

11 276

-107 936

Assets - non-current items Fjord Line AS has non-current receivables on the Danish subsidiaries of in total TNOK 2.423.976 per 31.12.2021 (TNOK 2.005.886 per 31.12.2020).

The amount is classified as financial fixed assets. The loans are in DKK and are subject to interest calculation (cf. note 6).

Foreign exchange gain on these loans was TNOK 122.398 in 2021 (foreign exchange loss of TNOK 108.498 in 2020), cf. note 7.

No specific installment plan has been determined for the loans, but the subsidiaries will use free liquidity for repayment. *) Allocation for dividends in the subsidiaries The subsidiaries FSH I, FSH III and FSH IV had per 31.12.2021 allocated in total TNOK 0 in dividend for Fjord Line AS, cf note 11.

Note 14 Trade receivables and bad debts - parent company (Figures in TNOK)

2021

2020

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07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS

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Total 1 249 115 906 Net current intercompany balance per 31.12 for Fjord Line AS 11 276 -107 936 Assets - non-current items balance per 31.12 for Fjord Line AS Net current intercompany 11 276 -107 936 Fjord Line AS has non-current receivables on the Danish subsidiaries of in total TNOK 2.423.976 per 31.12.2021 (TNOK 2.005.886 per 31.12.2020).

Annual report 2021 ⁄⁄ Fjord Line Assets - non-current items The amount is classified as financial fixed assets. The loans are in DKK and are subject to interest calculation (cf. note 6).

Fjord Line AS hasgain non-current on the Danish of in total TNOK 2.423.976 per108.498 31.12.2021 (TNOK 2.005.886 per 31.12.2020).

Foreign on thesereceivables loans was TNOK 122.398subsidiaries in 2021 (foreign exchange loss of TNOK in 2020), cf. note 7.

Assets - exchange non-current items The amount is classified as financial assets.

The loans are but in DKK and are TNOK subject to interest calculation (cf. (TNOK note 6). 2.005.886 per 31.12.2020).

No specific installment plan hasreceivables beenfixed determined the loans, theofsubsidiaries will 2.423.976 use free liquidity for repayment.

Fjord Line AS has non-current on the for Danish subsidiaries in total per 31.12.2021 Foreign exchange gain onasthese loansfixed was TNOK 122.398 2021 (foreign loss TNOK 108.498 in(cf.

2020), The amount is classified financial assets. The loansinare in DKK andexchange are subject to of interest calculation note cf.

6). note 7.

No specific installment plan has loans been determined the loans, but (foreign the subsidiaries will useoffree liquidity for repayment.

Foreign exchange gain on these was TNOK for 122.398 in 2021 exchange loss TNOK 108.498 in 2020), cf. note 7. *) Allocation for dividends in the subsidiaries No specific installment plan has been determined for the loans, but the subsidiaries will use free liquidity for repayment.

The subsidiaries FSH I, FSH III and FSH IV had per 31.12.2021 allocated in total TNOK 0 in dividend for Fjord Line AS, cf note 11. *) Allocation for dividends in the subsidiaries The subsidiaries I, FSH in IIIthe andsubsidiaries FSH IV had per 31.12.2021 allocated in total TNOK 0 in dividend for Fjord Line AS, cf note 11. *) Allocation forFSH dividends

The subsidiaries FSH I, FSH III and FSH IV and had per 31.12.2021 in totalcompany TNOK 0 in dividend for Fjord Line AS, cf note 11.

Note 14 ⁄⁄ Trade receivables bad debtsallocated – parent Note 14 Trade receivables and bad debts - parent company (Figures in TNOK) TNOK) Note 14 Trade receivables and bad debts - parent company (Figures in Note 14 Trade receivables and bad debts - parent company (Figures in TNOK) Trade receivables (Figures in TNOK)at nominal value 31.12.

Provisions for bad debts 31.12.

Trade receivables nominal value 31.12.

Book value trade at receivables 31.12.

Provisions for badatdebts 31.12.

Trade receivables nominal value 31.12.

Book value trade 31.12.

Change in provisions for31.12. bad debts in the year Provisions for bad receivables debts Actualvalue bad debts the year 31.12.

Book tradeinreceivables Change provisions for previously bad debts in the year Receivedinon receivables written off Actual bad debts thefor year Expensed loss oninbad debts Change in provisions bad debts in the year Received receivables previously written off Actual badondebts in the year Expensed loss on bad debts Bad debtson are included inpreviously the item "other expenses" in the income statement.

Received receivables writtenoperating off Expensed loss on bad debts Bad debts are included in the item "other operating expenses" in the income statement.

Notedebts 15 Other receivables company Bad are included in the- parent item "other operating expenses" in the income statement.

2021

2020

382021 656 -32021 197 38 35 656 459 -3 656 197 38 35 -3 459 1970 274 35 459 0 2740 2740 2740

182020 637 -32020 197 18 15 637 440 -3 637 197 18 15 1 440 000 -3 197 497 152 440 1 0000 497 123 000 2 4970 3 4970

274

3 497

Note 15 ⁄⁄ receivables Other receivables – parent company Note 15 Other - parent company (Figures in TNOK) Note 15 Other receivables - parent company (Figures ininTNOK) (Figures TNOK) Other receivables 2021 2020 Refund from public authorities, including vat owing.* 2 728 2 114 (Figures in TNOK) Other Prepaidreceivables expenses etc.

422021 722 222020 126 Refundreceivables from public authorities, includinginvat owing.* 22021 7280 114 the Norwegian government regard to The Business Compensation Scheme** 12122020 498 Other Prepaid expenses etc.

42 222 738 126 Other receivables 31.12.

452 722 450 145 Refund from public authorities, including vat owing.* 728 114 Refund from the Norwegian government in regard to The Business Compensation Scheme** 121 Prepaid expenses etc.

42 7220 22 498 126 Other receivables 31.12.

4500 1.679 145 738 *) Per 31.12.2021 the company has recognised TNOK 1.976 in the balance sheet relating to VAT due to the company in Norway45(TNOK per 31.12.2020).

Refund from the Norwegian government in regard to The Business Compensation Scheme** 121 498 Other 31.12.

450 145 738 **) Thereceivables Business Compensation Scheme is part of the Norwegian government's measures to mitigate the financial effects of the45 coronavirus situation and the *) Per 31.12.2021 the company has recognised TNOK 1.976 in the balance sheet relating to VAT due to the company in Norway (TNOK 1.679 per 31.12.2020). infection control measures for enterprises with a significant loss of turnover due to the coronavirus situation. Fjord Line AS har no receivable for The *) Per the company 1.976 in thegovernment's balance sheetmeasures relating to due the to the company in Norway (TNOK 1.679 per 31.12.2020). **) The31.12.2021 Business Compensation Scheme is partTNOK of the Norwegian toVAT mitigate financial effects of the coronavirus situation and the Business Compensation Schemehas perrecognised 31.12.2021. infection control measures for enterprises significant loss ofgovernment's turnover due measures to the coronavirus situation.

Fjord effects Line AS receivablesituation for The and the **) The Business Compensation Scheme iswith parta of the Norwegian to mitigate the financial ofhar the no coronavirus Business control Compensation Scheme per 31.12.2021. infection measures for enterprises with a significant loss of turnover due to the coronavirus situation. Fjord Line AS har no receivable for The Business Compensation Scheme per 31.12.2021.

Note 16 Restricted funds - parent company

Note 16 Restricted funds - parent company (Figures in16 TNOK) Note ⁄⁄ Restricted funds – parent company Note 16 Restricted funds - parent company (Figures in TNOK) Restricted tax deduction funds per 31.12.: (Figures in TNOK) The tax deduction (Figures in TNOK)funds are deposited on separate bank accounts.

Restricted tax deduction funds per 31.12.: The tax deduction funds are deposited on separate bank accounts.

Restricted tax deduction funds per 31.12.: The tax deduction funds are deposited on separate bank accounts.

2021 3 494 2021 32021 494

2020 2 141 2020 22020 141

3 494

2 141

Note 17 Share andcapital shareholders' - parent company Note 17 ⁄⁄capital Share andinformation shareholders' information – parent company The share capital is NOK 569.311.962,50 per 31.12.2021, and consists of 227.724.785 shares each NOK 2,50. All shares have equal rights.

The major shareholders per 31.12.2021 Ferd AS Kontrari AS Kontrazi AS Others, including own shares*) Total

Owner share 44,7 % 36,7 % 15,8 % 2,8 % 100,0 %

*) Fjord Line AS has a total of 2.118 own shares per 31.12.2021.

The major shareholders per 31.12.2020 Ferd AS Kontrari AS Kontrazi AS Others, including own shares*) Total

Owner share 44,6 % 35,6 % 16,6 % 3,2 % 100,0 %

*) Fjord Line AS had a total of 10.674 own shares per 31.12.2020.

Note 18 Equity - parent company (Figures in TNOK)

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*) Fjord Line AS had a total of 10.674 own shares per 31.12.2020.

07 ⁄⁄ FJORD LINE AS FINANCIAL STATEMENTS Note 18 Equity - parent company

Note 18 ⁄⁄ Equity – parent company

(Figures in TNOK)

(Figures in TNOK)

Share capital

Changes in equity for 2021

Own shares

544 312 0 25 000 0 569 312

Equity 31.12.2020 Sale of own shares Increase of capital Net income 2021 Equity 31.12.2021

Other Share premium equity/uncovered loss account

-109 44 0 0 -66

203 432 0 25 000 0 228 431

7 089 0 -212 548 -205 459

Total 754 722 44 50 000 -212 548 592 218

*) Net income 2021 contains a negative tax expense of TNOK 62.860 as a result of the changes in deferred tax asset.

Share capital

Changes in equity for 2020 Equity 31.12.2020 Purchase of own shares Increase of capital Net income 2020 Equity 31.12.2020

Own shares

519 107 0 25 205 0 544 312

Other Share premium equity/uncovered loss account

-109 0 0 -109

178 227 0 25 205 0 203 432

180 913 0 -173 824 7 089

*) Net income 2019 contains a negative tax expense of TNOK 62.330 as a result of the changes in deferred tax asset.

Note 19 ⁄⁄ Liabilities – parent company

Note 19 Liabilities - parent company

(Thefigures figuresininthethe table below in TNOK) (The table below is inisTNOK) Non-current interest bearing debt per 31.12.

Debt to credit institutions etc.

Other non-current interest bearing debt Total non-current interest bearing debt 31.12.

Current interest bearing debt per 31.12.

Debt to credit institutions (overdraft facilities) Other current interest bearing debt, including debt to owners of the parent company Total current interest bearing debt 31.12.

Total book value of interest bearing debt 31.12.

2021 2 813 200 11 108 2 824 308

2020 2 429 330 13 796 2 443 126

2021 333 072 1 487 334 558

2020 71 705 0 71 705

3 158 866

2 514 831

Fjord Line AS had an unused overdraft facility of MNOK 35 per 31.12.2021 (35 MNOK per 31.12.2020).

Per 31.12.2021 the company has a negative balance on the overdraft facility account of -295,6 MNOK (negative balance of -36,7 MNOK per 31.12.2020).

Non-current interest bearing debt (incl. leasing) - distributed on currency per 31.12.2021 (figures in 1.000) Currency Nominal currency NOK 268 720 Euro 202 057 DKK 400 000 Total non-current interest bearing debt 31.12.

Exchange rate 1,000 9,989 1,343

Book value in NOK 31.12.2021 268 720 2 018 308 537 280 2 824 308

Non-current interest bearing debt (incl. leasing) - distributed on currency per 31.12.2020 (figures in 1.000) Currency Nominal currency NOK 275 093 Euro 150 366 DKK 421 899 Total non-current interest bearing debt 31.12.

Exchange rate 1,000 10,470 1,407

Book value in NOK 31.12.2020 275 093 1 574 379 593 653 2 443 126

Borrowing in Euro and Danish kroner Borrowing in Euro and DKK is recognised in the balance sheet at current exchange rate per 31.12.2021 and 31.12.2020, cf. the table above.

Foreign exchange loss/gain in 2021 related to non-current borrowing in Euro and DKK is 122,4 MNOK. Foreign exchange loss/gain in 2020 related to non-current borrowing in Euro and DKK is 124,5 MNOK. Book value per 31.12. for the Euro-borrowings and Danish kroner-borrowings as follows in NOK (figures in TNOK): Principal amount: Amortization effect of the borrowings, incl. guarantee commission Book value per 31.12.

2021 2 555 588 -7 067 2 548 521

2020 2 168 033 -11 963 2 156 069

2023 787 850 1 744 213

2024 250 570 1 493 643

2025 484 780 1 008 863

2024 787 850 1 666 144

2025 529 820 1 136 324

Installment plan non-current interest-bearing debt to credit institutions (mortgage loan) Annual installments* Remaining loan per 31.12.

2021 0 2 828 028

2022 295 965 2 532 063

* Refer to Fjord Line Group accounts (cf. note 12) for specification of book value of mortgaged assets per 31.12.2021 on non-current interest-bearing debt to credit institutions/mortgage loan.

The Group has secured a sustainable financial restructuring through negotiations with senior lenders and guarantors 30.06.2022 that will provide the Group with a robust financial runway, an updated installment plan reflecting the updated terms is presented below.

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Annual installments Remaining loan per 31.12.

2021 0 2 828 028

2022 47 458 2 780 570

2023 326 577 2 453 994

Total 878 137 0 50 409 -173 824 754 722

Annual installments* Remaining loan per 31.12.

2021 0 2 828 028

2022 295 965 2 532 063

2023 787 850 1 744 213

2024 250 570 1 493 643

2025 484 780 1 008 863

Annual report 2021 ⁄⁄ Fjord Line

* Refer to Fjord Line Group accounts (cf. note 12) for specification of book value of mortgaged assets per 31.12.2021 on non-current interest-bearing debt to credit institutions/mortgage loan.

The Group has secured a sustainable financial restructuring through negotiations with senior lenders and guarantors 30.06.2022 that will provide the Group with a robust financial runway, an updated installment plan reflecting the updated terms is presented below.

Annual installments Remaining loan per 31.12.

Other current liabilities per 31.12 (figures in TNOK): Prepayment from customers Incurred interests and guarantee commission Provision for other incurred costs etc.

Other current liabilities 31.12.

2021 0 2 828 028

2022 47 458 2 780 570

2023 326 577 2 453 994

2024 787 850 1 666 144

2025 529 820 1 136 324

2021 91 437 18 505 45 979 155 921

2020 75 106 18 958 26 955 121 020

Note 20 ⁄⁄ Subsequent events – parent company Note 20 Subsequent events - parent company The Group has since March 2020 experienced increasingly adverse effects of the Covid-19 outbreak. The outbreak developed rapidly, and the situation affects Fjord Lines business significantly as the number of travelers decreased in line with the respective Governments closing of borders as well as implementation of other travel restrictions in order to reduce the spread of the virus. This situation has had a high priority in the Group and the management team has designed and implemented several extensive measures in order to immediately adjust the cost base in order to protect the Groups cash-flow, by eliminating cash-negative operations this extraordinary situation has brought about.

These actions consist among others of temporary changes in our route network and deployment of vessels, as well as layoff of personnel and other robust cost reductions in order to adjust the cost base to the present market demand. The Group established an emergency route, primarily for cargo, to ensure the flow of goods between Norway and the EU with two daily departures in each direction between Kristiansand and Hirtshals.

The market started its recovery in Q1 2022 to pre-covid levels as a direct consequence of most covid-19 restrictions being lifted in Norway, Denmark and Sweden, and the Group has a booking pace for the high-season rivalling the strong year of 2019.

The Group has secured a sustainable financial restructuring through negotiations with senior lenders 30.04.2021, 17.02.2021 and 30.06.2022 that will provide the Group with a reliable financial runway. The financial restructuring consists of owner contributions as well as 75% postponement of instalments for twelve months. The Group also renegotiated its financial covenants.

Fjord Line has during the pandemic slimmed its organization and have a very effective operation focused on the EBITDA driving routes. The business as of April 2022 is strong and resembling pre-Covid levels in bookings. The Board of Directors are confident that measures taken by the management throughout these challenging years will contribute to the positive underlying development that the Group experienced pre-pandemic. The Board of Directors also concurs with the management team on the positive outlook hereunder expectations that the Group will further improve on the pre Covid-19 results in the years to come.

In February 2022, Russian armed forces invaded Ukraine. The international community has responded with several sanctions against Russia. Russia is one of the top three crude producers and the second largest producer of natural gas in the world, and energy markets has had a drastic and volatile development since the invasion started. Fuel, and particularly natural gas, is a major costs component for Fjord Line and the recent price development is posing a significant burden for the Group. The Management team is following the development closely and are taking actions to mitigate its effect and associated risk towards the Group, hereunder the Group has hedged about 40% of its LNG consumption for Q3 2023 and about 16% for Q3 2024.

The Group is not involved in any litigations.

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AUDITORS REPORT

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Annual report 2021 ⁄⁄ Fjord Line

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Annual report 2021 ⁄⁄ Fjord Line

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We move people – sustainably

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Annual report 2021 ⁄⁄ Fjord Line

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02 ⁄⁄ THIS IS FJORD LINE

Annual report 2020 ⁄⁄ Layout: Fjord Line ⁄⁄ Printed editions: 300 ex ⁄⁄ Printed by: BK Grafisk AS Foto: Fjord Line, Kenneth Hansen, Morten Wanvik, Jon-Inge Nordnes, Erik Ask, Thomas Østberg Jacobsen, Geir Einarsen, Getty images.no

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