Årsrapport33771231PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabStrandvejen 442900 Hellerup2021-01-012020-01-012021-12-312020-12-3120758287Baltic Coaster Chartering ApSVed Isefjorden243390HundestedHalsnæsPricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab33771231Strandvejen442900HellerupDanmark2022-03-24Karina Uldahl KielRegnskabsklasse B1RevisionspåtegningThe Executive Board and Board of Directors have today considered and adopted the Annual Report of Baltic Coaster Chartering ApS for the financial year 1 January - 31 December 2021.The Annual Report is prepared in accordance with the Danish Financial Statements Act.In our opinion the Financial Statements give a true and fair view of the financial position at 31 December 2021 of the Company and of the results of the Company operations for 2021.In our opinion, Management's Review includes a true and fair account of the matters addressed in the Review.We recommend that the Annual Report be adopted at the Annual General Meeting.Hundested2022-03-24Peter Ronnie HulstrømExecutive OfficerPeter Ronnie HulstrømMikkel SchmidtThomas Holst OlsenFrederik Christian LytzenTo the Shareholder of Baltic Coaster Chartering ApSOpinionIn our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2021 and of the results of the Company’s operations for the financial year 1 January - 31 December 2021 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Baltic Coaster Chartering ApS for the financial year 1 January - 31 December 2021, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (”the Financial Statements”). Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the ”Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review. Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financials Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Hellerup2022-03-24Hellerup2022-03-24PricewaterhouseCoopers Statsautoriseret RevisionspartnerselskabSøren AlexanderState Authorised Public Accountantmne42824The principal activities of the company Baltic Coaster Chartering ApS is a wholly owned subsidiary of Baltic Shipping Company A/S. The company was established in 1998 and has since been transporting bulk and project cargo primarily in the Baltic Sea, Northern Europe to south of Spain We are specialized in Competitive Chartering. At the end of 2021 we have 14 vessels on time charter. Market overview and expected development 2021 marked a very strong year for the shipping industry general and the same applies for Baltic Coaster Chartering. In a strong competitive market, the revenue has increased, and we were able to optimize our fleet and expand our geographical scope and hence provide the best possible results for both vessel and freight owners. 2022 has started on a strong note and we are expecting the market and development of Baltic Coaster Chartering to continue the positive development. We have added 1 additional vessel to our fleet on time charter in the beginning of 2022. The current crisis in Ukraine has the outmost attention from the management. Every angle from sanctions to consequential market development are constantly vetted, and we are in very close dialogue with all our business partners and advisors. We do however, despite the opaque situation and the seriousness of the crisis, not foresee any reason to adjust our expectations to the development or our forecast for 2022. Development in activities and financial matters In 2021 Baltic Coaster Chartering had a total turnover of DKK 229.7 mill which is an increase of 72.8% compared to 2020. The result before tax is DKK 44.4 mill compared to DKK 4.0 mill in 2020. The Management consider the result very satisfactory. Our fleet on time charter has grown from an average of 11 vessels in 2020 to 14 vessels in 2021. 2022 has started on a strong note and we are expecting the market to continue the strong performance and expect an increase in the net result in 2022. Subsequent events The Russian military invaded Ukraine in February 2022. Management considers the implications of the invasion a non-adjusting subsequent event. Management pays close attention to the impact of the invasion in Ukraine and the implications this may have on the Group's operations. Management is constantly assessing sanctions and market developments. As part of this, Management is in close dialogue with the Group's business partners and other stakeholders about the current situation. Despite the crisis Management do not foresee any material implications on their operations in 2022. However, this assessment is attached with considerable uncertainty. No other events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.444278494190383293283210322228856313879444922764086826131828685064436044840183204430000040000006044818320261686696588816124482747317610922690010175692992890845649324353605738412498603225458566730446122010614137535612201061413753512500012500012500012500012833767889443000004000000445533374192889134644616656976210181219058913182868506049552860299102362016666769994464616666769994464661220106141375351250006788940000000-4000000604484430000012500012833744300000The Russian military invaded Ukraine in February 2022. Management considers the implications of the invasion a non-adjusting subsequent event. Management pays close attention to the impact of the invasion in Ukraine and the implications this may have on the Group's operations. Management is constantly assessing sanctions and market developments. As part of this, Management is in close dialogue with the Group's business partners and other stakeholders about the current situation. Despite the crisis Management do not foresee any material implications on their operations in 2022. However, this assessment is attached with considerable uncertainty.2932832103220556639725239825131604218391228856313879Rental and lease obligations Lease obligations relate to chartering of vessels. Total future lease payments: Within 1 year 113,942,410 61,557,232 Between 1 and 5 years 57,595,409 59,344,800 After 5 years 0 0 171,537,819 120,902,032 Other contingent liabilities The company is part of the national joint taxation with Baltic Holding Hundested ApS, as a management company and unlimited and jointly and severally liable with the other jointly taxed companies for total corporation tax.The Company is a part of the Consolidated Financial Statements of the ultimate parent company Name Place of registered office Baltic Holding Hundested ApS HundestedThe Annual Report of Baltic Coaster Chartering ApS for 2021 has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to enterprises of reporting class B as well as selected rules applying to reporting class C. The accounting policies applied remain unchanged from last year. The Financial Statements for 2021 are presented in DKK.Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised cost are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, amortisation, impairment losses and provisions as well as reversals due to changed accounting estimates of amounts that have previously been recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below.Leases in terms of which the Company assumes substantially all the risks and rewards of ownership (finance leases) are recognised in the balance sheet at the lower of the fair value of the leased asset and the net present value of the lease payments computed by applying the interest rate implicit in the lease or an alternative borrowing rate as the discount rate. Assets acquired under finance leases are depreciated and written down for impairment under the same policy as determined for the other fixed assets of the Company. The remaining lease obligation is capitalised and recognised in the balance sheet under debt, and the interest element on the lease payments is charged over the lease term to the income statement. All other leases are considered operating leases. Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease term.Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Exchange differences arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Where foreign exchange transactions are considered hedging of future cash flows, the value adjustments are recognised directly in equity. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the rates at the time when the receivable or the debt arose are recognised in financial income and expenses in the income statement.Expenses for raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year.Other external expenses comprise indirect production costs and expenses for premises, sales and distribution as well as office expenses, etc.With reference to section 32 of the Danish Financial Statements Act, gross profit/loss is calculated as a summary of revenue, expenses for raw materials and consumables and other external expenses.Financial income and expenses are recognised in the income statement at the amounts relating to the financial year.Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is comprised by the tonnage tax regime. No provision is made for deferred tax since no deferred tax is expected to arise under the tonnage tax regime. The Company is jointly taxed with Danish Group Companies. The tax effect of the joint taxation is allocated to Danish enterprises in proportion to their taxable incomes.Inventories consist of bunker oil and are measured at the lower of cost under the FIFO method and net realisable value.Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts.Prepayments comprise prepaid expenses concerning rent, insurance premiums, subscriptions and interest.Dividend distribution proposed by Management for the year is disclosed as a separate equity item.Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and repayment under the on-account taxation scheme are recognised in the income statement in financial income and expenses.Debts are measured at amortised cost, substantially corresponding to nominal value.Deferred income comprises payments received in respect of income in subsequent years.207582872021-01-01e:ContributedCapitalMember207582872021-12-31e:ContributedCapitalMember207582872021-01-01e:RetainedEarningsMember207582872021-01-012021-12-31e:RetainedEarningsMember207582872021-12-31e:RetainedEarningsMember207582872021-01-01e:ProposedDividendRecognisedInEquityMember207582872021-01-012021-12-31e:ProposedDividendRecognisedInEquityMember207582872021-12-31e:ProposedDividendRecognisedInEquityMember207582872021-01-012021-12-31207582872021-01-012021-12-311207582872021-01-012021-12-311207582872021-01-012021-12-312207582872021-01-012021-12-313207582872021-01-012021-12-314207582872021-01-012021-12-311207582872020-01-012020-12-31207582872021-01-012021-12-31e:ProposedDividendRecognisedInEquityMember207582872020-01-012020-12-31e:ProposedDividendRecognisedInEquityMember207582872021-01-012021-12-31e:RetainedEarningsMember207582872020-01-012020-12-31e:RetainedEarningsMember207582872020-12-31207582872021-12-31iso4217:DKK