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Lauritzen A/S for the financial year 1 January – 31 December 2023. The Annual Report has been prepared in accordance with the Danish Financial Statements Act. It is our opinion that the Consolidated Financial Statements and the Parent Company’s Financial Statements give a true and fair view of the Group's and the Parent Company’s financial position at 31 December 2023 and of the results of the Group's and the Parent Company’s operations and consolidated cash flows for the financial year 1 January – 31 December 2023. Further, in our opinion, the Management's Review gives a fair view of the development in the Group's and the Parent Company’s operations and financial matters and the results of the Group's and the Parent Company’s operations and the financial position. We recommend that the Annual Report be adopted at the Annual General Meeting. Copenhagen Kristian Verner Mørch Inge Grønvold Erik Bierre Tommy Thomsen Chairman Independent auditor’s report To the Shareholders of J. Lauritzen A/S Opinion In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2023, and of the results of the Group’s and the Parent Company’s operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act. We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of J. Lauritzen A/S for the financial year 1 January - 31 December 2023, which comprise income statement,balance sheet, statement of changes in equity and notes, including a summary of significant accountingpolicies, for both the Group and the Parent Company, as well as consolidated statement of cash flows (“thefinancial statements”). Basis for Opinion We 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 Group 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. Statement on Management’s Review 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 Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement in Management’s Review. Management’s Responsibilities for the Financial Statements Management is responsible for the preparation of Consolidated Financial Statements and Parent Company 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 Group’s and the Parent 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 Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements 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 judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence thatis sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraud may involvecollusion, 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 thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Group’s and the Parent Company’s internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by Management.• Conclude on the appropriateness of Management’s use of the going concern basis of accounting inpreparing the financial statements and, based on the audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast significant doubt on the Group’s and theParent Company’s ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause the Group and the Parent Company to cease to continue as a going concern.• Evaluate the overall presentation, structure and contents of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events ina manner that gives a true and fair view.• Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the Consolidated Financial Statements.We are responsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.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. Copenhagen PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Rasmus Friis Jørgensen State Authorised Public Accountant mne28705 Bo Schou-Jacobsen State Authorised Public Accountant mne28703 J. Lauritzen A/S Tranegårdsvej 20 2900 Hellerup PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup 637714000 951299000 841274000 Operating income before depreciation (EBITDA) Operating income before depreciation (EBITDA) Operating income before depreciation (EBITDA) 35718000 118523000 115300000 21534000 102476000 122215000 18662000 50410000 -6124000 64153000 184414000 160089000 58970000 181986000 97277000 668400000 632398000 380754000 478873000 434073000 232023000 178201000 184577000 22117000 109 95 93 Total number of ship days Total number of ship days Total number of ship days 29829000 27232000 29178000 DKK exchange rate year end DKK exchange rate year end DKK exchange rate year end 674000 697000 656000 Average DKK exchange rate Average DKK exchange rate Average DKK exchange rate 689000 708000 629000 Profit margin Profit margin Profit margin 0.034 0.108 0.145 0.716 0.686 0.6100 Profit margin Solvency ratioOperating incomeEquity incl. non controlling interestNet turnoverTotal assetsJ. Lauritzen A/S was established in June 2020 thus, no group key figures (Consolidated financial statements) exist for and before 2020. Management’s review Statement from Chairman and CEO 2023 was an active year for J. Lauritzen comprising new investments, delisting, upping of existing investments, divestments, and ordering of innovative dry cargo newbuildings. Our goal is to grow the J. Lauritzen platform through investment activities within the entire maritime value chain to ensure that the well reputed Lauritzen brand remains a substantial factor in the maritime industry. J. Lauritzen has more than a century-long history as an accountable and trustworthy business partnerdriven by entrepreneurship, adaptability, and resoluteness and we are proud to say that properness remainsa vital part of our DNA.As active managers of the Lauritzen Foundation’s portfolio of maritime and maritime related investments, we are conscious about the environmental, social and governance performance (ESG) of the companies we either own or invest in. As such, responsible investment is a core element of our investment strategy. Tommy Thomsen Chairman of the Board of Directors Kristian Mørch CEO Result and highlights The consolidated net result of J. Lauritzen amounted to USDm 59.0 in 2023 compared to USDm 182.0 in 2022. Shareholders’ equity was USDm 478.9 at year-end 2023 compared to USDm 434.1 in 2022. Proposed dividend for 2023 amounts to USDm 28.9 (DKKm 200) compared to USDm 14.3 (DKKm 100) for 2022. The consolidated net result is composed of results from the individual investments that comprise J. Lauritzen’s portfolio, cf. “Business model” below. Lauritzen Bulkers A/S Lauritzen Bulkers' net result for 2023 was a profit of USDm 3.3 and the result before unrealised hedging and tax was USDm 14.4. In 2022, Lauritzen Bulkers' result from its core dry bulk business before unrealised hedging and tax amounted to USDm 91.0 and the company's net result for 2022, including the impact from a merger with group companies, was a profit of USDm 77.3. Profit from sales of vessels contributed USDm 20.4 to the net result in 2023 (in 2022, profit from sales of vessels contributed USDm 20.8 to the net result). The net result includes result of freight derivatives and fuel hedging instruments, recognised in the revenue and the running costs, respectively. The unrealised result of these derivative instruments amounted to USDm (10.6) in 2023 (USDm (12.4) in 2022). Dan Swift (Singapore) Pte. Ltd. Dan Swift had a net result in 2023 of USDm 14.0, up from USDm 3.5 in 2022, reflecting more on-hire days in 2023 compared to 2022 for the vessel it owns and operates. Associated investment in BW Epic Kosan Ltd. The net result of the investment in BW Epic Kosan amounted to USDm 21.2 in 2023 compared to USDm 25.9 in 2022. Listed equities and fund investments The net result from listed equities and fund investments amounted to USDm 27.1 in 2023 compared to USDm 59.9 in 2022. Business model J. Lauritzen is an investment vehicle under the Lauritzen Foundation and the value creating owner of the Foundation’s portfolio of maritime and maritime related investments except for the Foundation’s shareholding in DFDS. We are a specialist, focused and knowledgeable investment partner with an extensive network and long-term experience from C-suite and board positions in the maritime industry. We pursue active ownership of our investments and seek to add value where possible, e.g., through board representation. At year-end 2023, our portfolio comprised private investments in wholly owned operational subsidiaries Lauritzen Bulkers A/S and Dan Swift (Singapore) Pte. Ltd., the associated investment in BW Epic Kosan Ltd. as well as listed equities and fund investments. Business performance The consolidated net result of the J. Lauritzen group amounted to USDm 59.0 in 2023 compared to USDm 182 in 2022. In 2023, contributions to the result were more diversified than in 2022. 2023 was a particular profitable year for our investments exposed to product tankers, smaller gas carriers and offshore wind services. Our operational subsidiaries, Lauritzen Bulkers and Dan Swift (Singapore) Pte. Ltd., also contributed positively to the result in 2023. The consolidated result for 2023 thus exceeded the expected result for 2023 of USDm 25-50 and is considered satisfactory. Uncertainty relating to recognition and measurement Please see note 1 to the Consolidated Financial Statements regarding uncertainty relating to recognition and measurement and note 4 to the Consolidated Financial Statements regarding Special Items. Events after the balance sheet date Reference is made to note 21 to the Consolidated Financial Statements. Outlook for 2024 Despite the fact that the geopolitical and macroeconomic environments remain unstable, J. Lauritzen expects a positive result for 2024 with a consolidated net profit of USDm 15-40. Risk management As an investor within the maritime value chain and with a portfolio allocated across different asset classes, including private investments, listed equities, and fund investments, risks present themselves in many shapes and forms. For the operational subsidiaries, commercial risk is the primary risk, and volatility in market levels for freight and vessel values in their business segment, as well as geographical imbalances in demand and supply, are the underlying factors of the commercial risk. This also applies to our listed investments and fund investments. Our result and the value of our investments are thus exposed indirectly to the inherent underlying risks of the individual investments. However, as our portfolio of investments is diverse, the consolidated impact on JL is not systematically caused by the same factors or investments. Risk management is an integral part of how we operate our business. From an operational risk perspective, we have a deliberate focus on risk perspectives during due diligence and investment decisions as well as through our asset management, including thorough performance monitoring. A consolidated overview of risks is presented to the Board for approval once a year. Human rights In line with two of our core values, accountability and empathy, we prioritise human rights throughout our operations and along the value chain. Fostering a conducive work environment for our employees is paramount for us. Our Human Rights Policy Statement, aligned with the principles of the UN Global Compact, underscores our adherence to internationally recognised human rights that are relevant to our business. We strive to uphold human rights not only in our own operations but also along the value chain. Furthermore, we strive to cultivate a work environment in which every individual is treated with respect and dignity. A such, we have a zero tolerance for any kinds of discrimination and harassment. This is further reinforced through our Anti-Harassment Policy. Throughout 2023, zero human rights or discrimination incidents were reported, and we are committed to maintaining this standard going forward. Whistle-blower system Throughout 2023, J. Lauritzen aimed at broadening awareness about its whistle-blower system both to employees at sea and onshore. The system allows both internal and external stakeholders to anonymously report concerns about potential violations regarding, among others, human and labour rights, harassment, corruption and bribery. Zero incidents have been reported through the system so far. Management’s incentives programme Warrants are granted to members of the Board of Directors, Executive Management, and key personnel for the purpose of motivating and retaining a qualified management group and key personnel and in order to align their interests with those of the shareholders. The warrants are issued on the following general terms: Warrants are awarded as retention as the continued vesting of warrants are contingent on the participants being engaged at the time of vesting, ie. on the date of the Annual General Meeting’s approval of the Company’s Annual Report for the financial year 2026 or earlier if the Board of Directors decide that the vesting of warrants shall be accelerated. The exercise deadline is i) a period of 3 years following the vesting date, or ii) in case of a liquidation of the company. The Board of Directors are authorized to increase the Company’s nominal share capital up to a total of DKK 40.000 upon exercise of warrants. In 2022, 30,787 warrants were issued to the Board of Directors and Executive Management. Each warrant gives the right - but not an obligation - to subscribe for one share with a nominal value of DKK 1 at an exercise price of DKK 3,654.68 for each share. In 2023, a further 4,731 warrants were issued to key personnel. Each warrant gives the right – but not an obligation – to subscribe for one share with a nominal value of DKK 1 at an exercise price of DKK 6,896.31 for each share. The number of warrants to be vested is depending on the average increase in the market value of the Company on the basis of a five year period starting 1 January 2022 and 1 January 2023, respectively, and ending 31 December 2026 and 31 December 2027, respectively. The warrant program includes terms about reduction of the numbers of shares to be issued if the market value exceeds a certain caption and time frame regarding vesting of warrants. Key developments During 2023, we decided to invest in Eneti Inc., up of our initial investment in Cadeler A/S, sell our shareholding in Hafnia, up and participate in the delisting of BW Epic Kosan Ltd. from the Oslo Stock Exchange, order three dual-fuel Kamsarmax dry bulk carriers and invest in NRP Premium Maritime Fund. Responsibility Responsibility is essential for us and during 2023 we confirmed our commitment to the green transition of the shipping industry by ordering three newbuildings of which the two first will be delivered in 2026-27 and be among the very first zero emission capable dry bulk carriers in the world, cf. paragraph on “Key developments” on page 10. J. Lauritzen policies on corporate responsibility, environment and climate, diversity, and anti-corruptionapply to companies wholly owned by J. Lauritzen. In companies where we hold minority positions, we actively seek to promote our corporate responsibility agenda through Board positions and active ownership engagement. Business model As an investment company with different types of investments our largest impact on ESG matters is linked to our wholly owned operational subsidiaries, cf. paragraph on “Business model” on page 10. Environment An integrated part of our purpose is to contribute to the green transition of the shipping industry. We constantly seek to minimise the climatic and environmental impact of our wholly owned investments through our policies, procedures, and monitoring of relevant data. Our environmental and climate policy is reviewed annually by the Board of Directors. People The importance of people has been recognised by J. Lauritzen group for decades, and it goes without saying that our people ashore and at sea are fundamental for the way we run our business and ultimately to our success. Diversity is important to us and the Board of Directors of J. Lauritzen currently consists of one female and two men. It is our target to always have minimum 33% female in our Board. For other management levels, the target of 33% female (underrepresented gender) has also been met. 2023Supreme governing bodyTotal number 3Underrepresented gender (%) 33%Target (%) 33%Time for meeting target (year-end) 2024Other management levelsTotal number 3Underrepresented gender (%) 33%Above figures are covering J. Lauritzen (the Parent Company). Information related to the Danish subsidiary, Lauritzen Bulkers A/S, is available in the Annual Report 2023 of Lauritzen Bulkers A/S. Diversity holds significant importance for Lauritzen Bulkers, believing that a diverse workforce is essential to fostering a resilient and healthy company culture. Despite efforts taken, the share of female employees in Lauritzen Bulkers decreased from 40% at year-end 2022 to 38% at year-end 2023. Lauritzen Bulkers will review its actions, aiming for a 42% share at year-end 2024. Lauritzen Bulkers aims to achieve a 20% share of the underrepresented gender among managers by year-end 2026. In parallel to the overall share of female employees, Lauritzen Bulkers experienced a decline in female representation in managerial positions, down to 16% at year-end 2023 from 20% at year-end 2022. The diversity of Lauritzen Bulkers’ workforce increased as the company welcomed employees from a range of additional nationalities in 2023. At year-end 2023, the workforce onshore consisted of 20 different nationalities. Health and safety Safety is a constant top priority for us, first and foremost because of the human consequences of injuries or casualties. Regardless of whether we are vessel owners or operators, we have a strong focus on safety surrounding the carriage of cargoes. Proper carriage is important to ensure the safety of crews, vessels and cargoes. Ensuring the safety and health of every employee, both at sea and onshore, lies at the core of both our wholly owned operating entities, Lauritzen Bulkers and Dan Swift (Singapore) Pte. Ltd., aiming to not only meet but also surpass legislative requirements. To achieve this, each company maintains close collaboration with its external technical vessel manager to ensure that standards are upheld. Governance Corruption and bribery Operating in the global shipping industry, we acknowledge and manage the potential risk of corruption. We remain steadfast in our commitment to prevent any form of corrupt practices, including demands for facilitations payments. This commitment is outlined in our Anti-Corruption Policy, where we firmly state our zero tolerance towards corruption. Both our Anti-Corruption and Gift and Hospitality Policy undergo an annual review by the Board of Directors. Compliance training was provided to Lauritzen Bulkers’ sea-based staff through its technical managers in 2023. Research and development J. Lauritzen and its subsidiaries are not involved in research and development activities. Data ethics To date, J. Lauritzen has not adopted a policy specifically addressing data ethics. The reasons for this decision are as follows:  Services provided by our subsidiaries are targeted towards business clients instead of individualconsumers, eliminating the need for data utilisation for personalisation or segmentation. Our subsidiaries’ offerings entail transportation services, where terms are negotiated on a case-by-case basis, predominantly in person. Data collection by our subsidiaries primarily entails macro-level data on e.g. commodities, regionaleconomic activity, trade statistics, local vessel supply and demand and vessel tracking data. Datais obtained from public sources and is used for analytical purposes. It informs our commercialdecisions on assessing risk tolerance and determining service pricing. 1006000 2041000 565823000 797519000 10200000 10480000 62697000 145341000 26979000 26818000 20144000 20119000 34328000 36166000 21079000 28168000 2878000 3360000 32954000 56083000 14292000 5673000 5183000 2428000 179173000 124323000 45969000 86962000 225142000 211285000 191067000 159355000 18568000 6325000 400000 355000 210035000 166035000 435177000 377320000 15757000 11829000 15757000 11829000 14293000 3493000 27332000 15864000 1580000 1455000 7116000 8529000 285000 6592000 50606000 35933000 90030000 60242000 76830000 147074000 233223000 255078000 60000 60000 449401000 419670000 29412000 14343000 92771000 63759000 14353000 7621000 107124000 71380000 7620000 3646000 31665000 80289000 12934000 13666000 6431000 11161000 3747000 12354000 11342000 3388000 8664000 2441000 82403000 126945000 189527000 198325000 668400000 632398000 60000 419670000 14343000 0 0 14170000 14170000 0 173000 -173000 0 0 29558000 29412000 60000 449401000 29412000 Operating income (EBIT) Operating income (EBIT) 21535000 102476000 34328000 36166000 (Profit)/loss on sale of vessels and other assets (Profit)/loss on sale of vessels and other assets -20144000 -20803000 3928000 5947000 9392000 7893000 -1775000 -372000 42958000 120157000 9843000 6975000 10788000 5357000 42013000 121775000 10067000 -66000 31946000 121841000 Investments in vessels Investments in vessels -117332000 -114436000 Payments on vessels under construction Payments on vessels under construction -12990000 0 Investments in associates and other investments Investments in associates and other investments -27334000 -19700000 Sale of vessels Sale of vessels 87764000 65540000 Dividend received from associates and other investments Dividend received from associates and other investments 7336000 7921000 7662000 336000 Collateral pledged as security for derivatives debt Collateral pledged as security for derivatives debt -18145000 -2573000 -88363000 -63584000 Financial receivables Financial receivables -31000 2920000 53283000 24756000 85971000 77328000 Installment on lease debt (IFRS 16) Installment on lease debt (IFRS 16) -26546000 -29147000 Changes in payables to group entities Changes in payables to group entities 0 -32424000 Group contributions Group contributions 0 34896000 14170000 14782000 -10105000 14035000 -66522000 72291000 73283000 68830000 142074000 1 Uncertainty in recognition and measurement In the preparation of the Financial Statements, Management undertakes several accounting estimates and judgments and makes assumptions which provide the basis for recognition and measurement of the assets, liabilities, revenues and expenses. These assumptions are based on historical experience and other factors which the Management considers reasonable under the circumstances, but which by their nature are uncertain and unpredictable. The assumptions may be incomplete or inaccurate and unanticipated events or circumstances may occur, for which reason the actual results may deviate from the applied estimates, assessments, and assumptions. In the opinion of Management, significant accounting estimates and judgments in the preparation of the Financial Statements Report relate to the following:  Impairment testing of property, plant and equipment, and fixed asset investments, if indicationsexists Assessment of useful life and scrap values Deferred taxes Leasing arrangements Purchase price allocation 2 Revenue The revenue reported represents revenue from customers. USD '000 20232022Freight revenue 443,792 719,524 COA revenue 57,937 42,530 Time charter revenue 135,985 189,245 Total 637,714 951,299 Revenue per business unitLauritzen Bulkers A/S 601,895 929,952 Dan Swift (Singapore) Pte. Ltd. 35,819 21,347 Total 637,714 951,299 3 Staff expenses USD '00020232022Salaries 24,965 25,176 Pensions (defined contribution plan) 1,328 1,065 Social security 672 567 Contract labour 14 10 Total 26,979 26,818 Remuneration to Executive Management and Board of Directors*Salaries 1,046 532 Pensions (defined contribution plan) 109 55 Social security 0 1 Total 1,155 588 *With reference to ÅRL §98b (3) of the Danish Financial Statements Act.In 2022 and 2023, the Parent Company issued warrants to the Board of Directors, Executive Management, and key personnel in J. Lauritzen A/S. The programme is an equity programme - see Statement of changes in Equity. 4 Special items Badwill gain on BW Epic Kosan Ltd. (Income/loss from investments in associates) 7,507 13,229 Gain on sale of vessels (other operating income) 20,144 20,803 Total 27,651 34,032 5 Financial income USD '00020232022Interest income, bank deposits 5,696 1,993 Other financial income 34 130 Currency exchange gains and losses, net - 1,360Current asset investments and derivative financial instruments 23,112 47,747 Dividends received 4,112 4,853 Financial income 32,954 56,083 6 Financial expenses Interest expenses on loans 7,062 1,554 Interest expenses on lease liabilities 2,147 3,618 Other financial expenses 951 501 Currency exchange gains and losses, net 4,132 - Financial expenses 14,292 5,673 7 Tax on profit/loss for the year Current tax for the year (6,815) (11,550) Deferred tax for the year 2,133 7,795 Adjustment of tax concerning previous years (501) 1,327Tax on profit/loss for the year (5,183) (2,428) of which:Tax for the current year (5,183) (2,428) Total (5,183) (2,428) 8 Vessels, property & equipment Assets Machinery, USD '000under tools & 2023constructionequipmentTotalVesselsCost as at 1 January 128,506 - 10,128 138,634 Additions 117,332 12,990 - 130,322 Disposals (68,800) - - (68,800) Cost as at 31 December 177,038 12,990 10,128 200,156 Depreciation and impairmentlosses as at 1 January (5,567) - (8,744) (14,311) Depreciation (8,087) - - (8,087) Disposals 1,415 - - 1,415 Depreciation and impairmentlosses as at 31 December (12,239) - (8,744) (20,983) Balance as at 31 December 164,799 12,990 1,384 179,173 9 Right-of-use assets USD '000Land & 2023VesselsBuildings TotalCost as at 1 January 167,088 2,056 169,144 Additions 47,879 - 47,879 Disposals (106,255) - (106,255) Cost as at 31 December 108,712 2,056 110,768 Depreciation and impairment (80,996) (1,186) (82,182) Depreciation (25,932) (309) (26,241) Disposals 43,624 - 43,624 Depreciation and impairmentlosses as at 31 December (63,304) (1,495) (64,799) Balance as at 31 December 45,408 561 45,969 10 Investments in associates USD '00020232022Cost as at 1 January 89,834 70,719 Additions during the year 16,071 19,115 Cost as at 31 December 105,905 89,834 Revaluation as at 1 January 69,521 43,030 Dividend received (5,438) (1,677) Profit for the year 13,572 14,939 Badwill gain 7,507 13,229 Revaluation as at 31 December 85,162 69,521 Balance as at 31 December 191,067 159,355 Investments in associates are specified as follows:Place of registered Votes and Nameoffice Share capitalownershipAdmiral Logistics Corporation Panama 10,000 tUSD 50%DeaL Energy A/S Denmark 500 tDKK 50%Web Holding Ltd. Bermuda 159,558 tUSD 36%11 Other investments USD '0002023 2022Cost as at 1 January 8,117 7,532 Additions during the year 11,263 585 Cost as at 31 December 19,380 8,117 Revaluation as at 1 January (1,792) 1,091 Dividends received (1,898) (6,243) Revaluations during the year 2,878 3,360 Revaluation as at 31 December (812) (1,792) Balance as at 31 December 18,568 6,325 12 Other receivables Cost as at 1 January 355 387 Additions 45 - Disposals - (32) Balance as at 31 December 400 355 13 Deferred tax Deferred tax at 1 January 1,455 (6,342) Amounts recognised in the income statement for the year 125 7,797 Deferred tax at 31 December 1,580 1,455 Deferred tax consists of:Tax value of taxable losses carried forward 1,580 1,455 The recognized tax asset comprises tax loss carry-forwards expected to be utilised within the next one to three years. However, due to the length of the period, recognition and measurement of the tax asset are subject to uncertainty In 2005 the Danish based companies of the J. Lauritzen Group, including Lauritzen Bulkers A/S, entered the Danish tonnage taxation system, the adoption of which is binding until at least 2024. Lauritzen Bulkers A/S does not expect to exit the tonnage taxation and thus no deferred tax provision has been made on the assets or liabilities effected by the Danish tonnage taxation system. If, however, Lauritzen Bulkers A/S were to leave the Danish tonnage taxation system there could be a deferred tax liability of up to a maximum of USDm 8.5. 14 Derivative financial instruments 20232022Nominal,Duration,Fair Nominal,Duration,Fair USDm monthvalue USDm monthvalueHedge accounting not applied:Currency: USD/EUR 1.9 0-1 (0.1) 12.9 0-13 (0.1) Currency: USD/DKK 11.6 0-12 0.1 11.6 0-12 0.2 Currency: USD/JPY - - - 37.0 0-3 4.2 Interest rate swaps 34.4 45 0.2 15.2 6.0 0.2 EUA, FFA's and oil contracts N/A 0-48 (11.2) N/A 0-24 (1.3) Total (11.0) 3.2 Total derivative financial instruments (11.0) 3.2 Presented in the financial statement as:Derivative financial instruments, assets 0.3 6.6 Derivative financial instruments, liabilities (11.3) (3.4) 15 Current asset investments USD '0002023 2022Listed shares 43,230 60,242 Shares in mutual funds (fixed income) 31,716 - Investments in managed funds (fixed income) 15,084 - Balance as at 31 December 90,030 60,242 16 Long-term debt Lease obligations<1 year 31,665 80,289 1-5 years 14,353 7,621 > 5 years - - 46,018 87,910 Credit institutions<1 year 7,620 3,646 1-5 years 92,771 63,759 > 5 years - - 100,391 67,405 17 Investments at fair value USD '000Value Fair value adjustment - at 31 income December 2023statement2023Other investments 2,879 18,568 Current asset investments 15,505 90,030 Balance as at 31 December 18,384 108,598 USD '000Value Fair value adjustment - at 31 income December 2022statement2022Other investments 3,360 6,325 Current asset investments 30,720 60,242 Balance as at 31 December 34,080 66,567 19 Related parties Controlling interests Lauritzen Fonden Ultimate parent Lauritzen Fonden Holding ApS Parent company Transactions The Group’s intercompany transactions has during the year been entered into at arm’s length. Consolidated Financial Statements Group companies are included in the Group Annual Report of the Parent Company. Name Place of registered office Lauritzen Fonden Holding ApS Tranegårdsvej 20, DK-2900 Hellerup The Group Annual Report of Lauritzen Fonden Holding ApS may be obtained at the following address: https://datacvr.virk.dk/ 29558000 167643000 20 Contingent assets, liabilities and financial obligations Contingent liabilities The J. Lauritzen Group is subject to Danish tax regulations, which means that by law it is taxed jointly, with respect to corporate tax, with all Danish subsidiaries of Lauritzen Fonden (the Group and Group Companies). The Group Companies are jointly and severally liable for tax on the jointly taxed incomes etc. of the Group. Moreover, the Group Companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Contingent financial obligations Lauritzen Bulkers A/S has exercised a purchase option attached to one existing time-chartered vessel and agreed to sell the same vessel. Delivery of the vessel to new owners in March 2024 is expected to occur on same time as delivery to the Lauritzen Bulkers A/S. The cost of the vessel is USDm 19.7. The sales price exceeds the purchase cost. Buyers of the vessel have placed a deposit with Lauritzen Bulkers covering 20 per cent of the sales price. Lauritzen Bulkers A/S has agreed to charter-in six newbuild vessels on five-year time-charter. The lease obligations for the six vessels will be a total USDm 136 for the minimum duration of the leases. Purchase options are included on the six vessels. The vessels are planned to deliver during 2024-2026, with one vessel in 2024, four vessels in 2025, and one in 2026. JL Shipping Invest A/S has in relation to its participation in investment funds the following remaining obligations:  Maritime Investment Fund II K/S: Nil investment commitment remaining. USDm 1.1 previouslydistributed capital can be recalled. The company remains committed under the existing LPA. Dee4 Capital Fund I K/S: Nil. The company remains committed under the existing LPA. Dee4 Capital Fund II K/S: USDm 10 commitment contingent on Dee4 Capital Fund II K/Scompleting first close. The Company has expressed a soft commitment to participate in Maritime Investment Fund III K/Swith up to USDm 20. The commitment is not yet formalised in an LPA or similar. The Company has committed to participate as co-investor in two container vessels via two jointventures. The commitment amounts to USDm 4.6 in total.Lauritzen NexGen Shipping A/S has entered into agreements for three new build Kamsarmax type dry bulk vessels with expected delivery in 2026 and 2027. The remaining commitment under the building contracts amounts to USDm 116.9 subject to the shipyard meeting specific construction milestones. A commitment for the refinancing of up to USDm 79.5 of the value the vessels has been obtained, and these funds will, subject to satisfaction of customary conditions precedent for secured ship financing transactions, be available at delivery of each of the vessels. In relation to the newbuilding agreement, J. Lauritzen A/S has issued a guarantee for the performance by Lauritzen NexGen Shipping A/S amounting to USDm 116.9 corresponding to the remaining commitment under the building contracts. J. Lauritzen A/S has in relation to its participation in Premium Maritime Fund 2022 AS a USDm 6.4commitment remaining.Credit institutions: USD '00020232022Debt for a total of 100,391 67,405 is secured by mortgages on assets at the following book values:Vessels 164,799 122,939 The Group has no other contingent assets or contingent liabilities. 21 Events after the balance sheet date No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 22 Accounting policies The Annual Report of J. Lauritzen A/S for 2023 has been prepared in accordance with the provisions applying to reporting class C large enterprises under the Danish Financial Statements Act. The Financial Statements are presented in thousand USD. Applied USD/DKK exchange rate on the 31 December 2023: 674.47 (2022: 697.22). With reference to section 96(3) of the Danish Financial Statements Act, the fee to the auditors appointed at the general meeting has not been disclosed. Recognition and measurement 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. Basis of consolidationThe Consolidated Financial Statements comprise the Parent Company, J. Lauritzen A/S, and subsidiaries in which the Group directly or indirectly holds more than 50% of the voting rights or which it, in some other way, controls. Enterprises, which are not subsidiaries, over which the Group exercises significant influence, but which it does not control, are considered associates. Significant influence is generally obtained by direct or indirect ownership or control of more than 20% of the voting rights but less than 50% or by, according to agreement, jointly controlling the enterprise together with one or more other companies (joint venture). The Consolidated Financial Statements are prepared as a consolidation of the audited financial statements of the Parent Company and the individual subsidiaries prepared in accordance with the Danish Financial Statements Act. On consolidation, intra-group income and expenses, shareholdings, intra-group balances and dividends, and realized and unrealized gains and losses on intra-group transactions are eliminated. Investments in subsidiaries are set off against the proportionate share of the subsidiaries' net asset value at the acquisition date. Newly acquired or newly established companies are recognized in the consolidated financial statements from the acquisition date, whereas divested or discontinued companies are included until the date of disposal; see description below regarding consolidation of divested business areas. Comparative figures are not restated for companies acquired by purchase or merger or for divested companies. Acquisitions of enterprises are accounted for using the purchase method, according to which the identifiable assets and liabilities of the acquired enterprises are measured at fair value at the acquisition date. A positive difference between the consideration and ownership share of the acquired net assets (goodwill) is amortised over the expected useful life and included in the carrying amount of the investment. A negative difference (badwill) is recognised immediately as a gain in the income statement. Gains or losses on disposal or liquidation of subsidiaries and associates/joint ventures are stated as the difference between the sales amount or liquidating price and the carrying amount of net assets at the date of disposal plus non-amortized goodwill and anticipated disposal or liquidation costs. Foreign currency translation USD is used as the presentation currency. All other currencies are regarded as foreign currencies. Transactions denominated in foreign currencies are translated on an ongoing basis at the exchange rates at the transaction date. Receivables and payables denominated in foreign currencies are translated at the exchange rates at the transaction date. Gains and losses arising between the exchange rates at the transaction date and the settlement date are recognized in the income statement under financial income or expenses. On recognition of foreign subsidiaries and associates/joint ventures and Danish companies that are separate entities reporting in currencies other than USD, the income statement is translated at the exchange rate at the transaction date (average rate), and the balance sheet is translated at the exchange rates at the balance sheet date. Exchange rate differences arisen when translating foreign subsidiaries' equity at the beginning of the year using the exchange rate at the balance sheet date and when translating income statements from the exchange rate at the transaction date (average exchange rate) to the exchange rate at the balance sheet date are recognized directly in equity under translation reserve. Exchange rate adjustments of intra-group balances with independent foreign subsidiaries which are considered part of the total investment in the subsidiary are recognized directly in equity. Exchange rate adjustments on loans and derivative financial instruments designated as hedges of foreign subsidiaries are also recognized directly in equity. Derivative financial instrumentsDerivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as ”Derivative financial instruments” (under “Receivables”) and ”Derivative financial instruments” (under “Short-term debt”), respectively. Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualify as hedge accounting. Warrants Warrants are granted to the executive management and board of directors. The warrant schemes are equity-settled schemes. INCOME STATEMENTRevenue The Group has chosen IFRS 15 as interpretation for revenue recognition. Revenue consist of three types of contracts with customers; spot contracts with carriage of a specific quantity of cargo in a single voyage, Contract of Affreightment (COA) with carriage of a certain quantity of cargo with multiple voyages over a specified period of time (together freight income), and time-charter contracts of vessels. Each voyage is recognized as a performance obligation no matter if it is part of a spot contract or a COA. Revenue comprises the present value of services rendered and net of discounts. Revenue is recognised in the income statement for the financial year as earned. All freight income and voyage costs are recognised as the freight services are rendered (percentage of completion). The percentage of completion is determined using the load-to-discharge method based on the percentage of the estimated duration of the voyage completed at the reporting date. According to this method, freight income and related costs are recognised in the income statement according to the entered charter parties from the vessel’s load date to the delivery of the cargo (discharge). The voyage begins on the date when the cargo is loaded, and the voyage ends at the date of the discharge (load to discharge). This applies to all spot transports and transports under Contracts of Affreightment (COAs). Costs directly attributable to relocating the vessel to the load port under the contract are capitalised to the extent that they are recoverable. Demurrage is recognised if the claim is considered probable. Other operating income Other operating income includes administration services, commercial and technical management fee. Vessels running costs Vessels running costs include hire of chartered vessels under 12 months, bunker oil, port costs, agent’s commissions and other voyage related costs. Furthermore, vessels running costs include fair value changes on financial bunkers contracts used to hedge future bunkers purchases. Hedge accounting is not applied for these transactions. Vessels running costs also includes maintenance and repairs, insurance of hulls and machinery, consumption of lubricants and supplies etc. Furthermore, a part of the lease payments on time charters is considered a service element and recognised as OPEX in accordance with IFRS 16 Leases. Other external costs Other external costs include sales costs and administrative expenses include land-based activities, and maintenance of equipment. Furthermore, sales costs, marketing costs and administrative expenses are included. Staff costs Staff costs include salaries and wages, pension and social security costs relating to the Group's employees. Profit/Loss on sale of vessels and other assets Profit/loss from sale of vessels etc. is stated as the difference between the sales price less selling costs and the carrying amount of the vessel etc. in question at the time of delivery. Depreciation Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of property, plant and equipment. Financial income and expenses Financial income and expenses include interest income and expense, interests on lease liablities, gains and losses on securities, payables and transactions denominated in foreign currencies, calculated interest expenses in respect of lease liabilities and amortization of financial assets and liabilities. Financial income and expenses are recognized at the amounts relating to the financial year. Profit/loss in associates The income statement includes the proportionate share of the associates’ profit/loss after tax after elimination of intra-group profits/losses and amortization of goodwill. In the income statement, the proportionate share of associates’ profit/loss after tax after elimination of the proportionate share of profits/losses and amortization of goodwill is included. Tax on profit/loss Tax for the year comprises income tax, tonnage tax and changes in deferred tax for the year. The tax expense relating to the profit/loss for the year is recognized in the income statement, and the tax expense relating to income and expenses recognized in equity is recognized directly in equity. The Group is subject to the Danish rules on compulsory joint taxation, and is jointly taxed with subsidiaries of the Lauritzen Fonden. Shipping activities in Denmark are taxed according to the Danish Tonnage Tax Scheme on the basis of the net tonnage (vessels), which the Danish group entities in question have at their disposal, and according to general tax regulations for net financial income and other activities. BALANCE SHEET Vessels Vessels are measured at cost less accumulated depreciation and accumulated impairment losses. Cost comprises the acquisition price and costs directly related to the acquisition up until the time when the asset is ready for use. Borrowing costs concerning either specific or general borrowing directly related to assets with an extended construction period are included in cost over the period of construction. Vessels are depreciated on a straight-line basis to an estimated scrap value. The expected useful life of vessels is 25 years. Rebuilding of vessels is capitalised if the rebuilding is intended to extend the service life and/or improve the earning potential. Rebuilding is depreciated over the expected service life of the investment. Costs relating to dry dockings are capitalised and depreciated on a straight-line basis. The expected useful life of dry dockings ranges from 30 to 60 months. Vessels under construction are measured at cost incurred until the time the vessel is taken into service less accumulated impairment losses. Machinery, tools and equipment Machinery, tools and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Machinery, tools and equipment are depreciated on a straight-line basis. Expected useful life of machinery, tools and equipment is 5-10 years. Right-of-use Assets The Company uses IFRS 16 when measuring and recognizing leases. Right of use assets are arising from lease agreements with a duration of more than 12 months. Lauritzen Bulkers have lease contracts on vessels and an office building. The lease contracts are recognised as right-of-use assets and lease liabilities measured as the present value of lease payments at initial recognition (when the asset is available for use for the Group). A service element corresponding to OPEX on a similar vessel is excluded from the lease at recognition. The lease expenses are recognised as OPEX, depreciation of the right of use asset and interest expenses. The right-of-use assets are depreciated on a straight-line basis over the lease term. The cash flow related to repayment of the lease obligation is classified as cash flow from financing activities and interest expenses are classified as cash flow from operating activities. Definitions: Leases: A firm period above 12 months, with no redelivery options prior to the firm period and withfull control of the asset. All leases have been assessed, and low value leased are excluded.Discount rates: The discount rate is calculated as a weighted average of the secured andunsecured borrowing rate for a like to like asset. The discount rate is calculated in nominal termsas the cash flows are also in nominal terms based on a 60/40 loan ratio.Service elements: The lease commitment is reduced by the service element that has beenestimated as the average vessel operating cost of a like to like asset on market terms.Time charter agreements are typically made for fixed periods but may include extension- and purchase options. Options are included in the recognition if the Company is reasonably certain to exercise the option. If the Company exercises an option which was not previously included, the lease liability is reassessed and adjusted against the right-of-use asset. Investments in associates Investments in associates are recognised and measured under the equity method. The items “Investments in associates” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises. On acquisition of associates, fair value of the net assets is determined, and a positive difference between the consideration and the Company’s ownership share of the net assets (goodwill) is amortised over the expected useful life and included in the carrying amount of the investment. A negative difference (badwill) is recognized immediately as a gain in the income statement. Indirect decreases in the ownership of associates through their sale of own shares are treated as sales, and the difference between the Group share of the consideration for the shares and the proportionate share of equity is recognised in the income statement. The total net revaluation of investments in associates is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries and the associates. Associates with a negative net asset value are recognised at USD 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions The investments are assessed for impairment indicators annually. If such indicators exist, an impairment test is performed. Impairment Management monitors continuously, on a portfolio basis, the carrying value of tangible non-current assets (owned vessels and right-of-use vessels) in order to determine, whether there are any indications of impairment in excess of the amount provided for by normal depreciations and whether previous impairments should be reversed. An impairment test is conducted if there is an indication that the carrying amount of an asset or a cash-generating unit (CGU) exceeds the expected future cash flows from the asset. If the carrying amount exceeds the recoverable amount, the asset is written down to the lower recoverable amount. The recoverable amount of the asset is determined as the higher of the net selling price and the value-in-use. If a recoverable amount for the individual assets cannot be determined, the smallest group of assets for which it is possible to determine the recoverable amount (cash-generating unit) is analysed for impairment. Management's assessment of indication of impairment on owned vessels and leased vessels is based on the that the Group has one CGU: Bulk carriers (owned and right-of-use vessels). An impairment loss is recognised whenever the carrying amount of cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. Impairment losses of assets within a CGU are allocated to the carrying amount of the assets in the CGU on a pro rata basis to the higher of fair value less cost to sell and value in use. Reversal of previous impairments is only recognised if there has been a change in the assumptions used to determine the recoverable amount since the last impairment test was carried out. Other investment Other investments comprise investments in unlisted securities in which the Company holds below 20% of the voting rights and does not exercise significant influence. Other investments are measured at fair value. The fair value is measured as the market value at the balance sheet date. If the fair value cannot be reliably measured, cost is used as an alternative. Other receivables Other fixed asset investments consist of rental deposits. Bunker Bunkers are measured at the lower of cost under the FIFO method and net realisable value. Receivables The Company has chosen IFRS 9 as interpretation for impairment of financial receivables. Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are included in Trade receivables and Other receivables in the statement of financial position. Trade receivables and Other receivables are stated at amortised cost. Trade and other receivables are measured using the Expected Credit Loss method, and expected losses are recognised in the profit and loss. Receivables with no objective indication of individual impairment are assessed for objective indication of impairment on a portfolio basis. The portfolios are primarily based on the debtors' registered offices and credit rating in accordance with the Company's and the Group's credit risk management policy. The objective indicators used in relation to portfolios are determined based on historical loss experience. Write-downs are calculated as the difference between the carrying amount of receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Prepayments Prepayments comprise prepaid expenses concerning time charter, insurance premiums, etc. Current asset investments Current asset investments, which consist of listed shares, are measured at their fair values at the balance sheet date. Equity Reserve for net revaluation according to the equity method. Net revaluation of investments in subsidiaries and associates/joint ventures is recognised in the net revaluation reserve according to the equity method. The reserve may be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount. Dividends Dividend distribution proposed by Management for the year is disclosed as a separate equity item. Provisions Provisions are recognised when - in consequence of an event occurred before or on the balance sheet date - the Group has a legal or constructive obligation and it is probable that economic benefits must be given up to settle the obligation. Liabilities other than provisions Financial liabilities are recognised at the date of borrowing at fair value corresponding the net proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Other liabilities are measured at net realisable value. Deferred tax assets and liabilities Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement or in equity if the deferred tax relates to items recognised in equity. Current tax receivables and liabilities 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 in the income statement in financial income and expenses. Deferred income Deferred income arises from prepayments for voyages and time-charter income. CASH FLOW STATEMENT The cash flow statement shows the Group's cash flows from operating, investing, and financing activities for the year, the year's changes in cash and cash equivalents as well as the Group's cash and cash equivalents at the beginning and end of the year. Cash and cash equivalents include bank deposits and short-term deposits that without restriction can be exchanged into cash funds. The cash flow effect of acquisitions and disposals of enterprises is shown separately in cash flows from investing activities. Cash flows from acquisitions of enterprises are recognised in the cash flow statement from the date of acquisition. Cash flows from disposals of enterprises are recognised up until the date of disposal. Cash flows from operating activities Cash flows from operating activities are calculated as the Group's share of the profit/loss adjusted for non-cash operating items, changes in working capital, corporation tax paid and payments of grants. Cash flows from investing activities Cash flows from investing activities comprise payments in connection with acquisitions and disposals of enterprises and activities and of intangible assets, property, plant and equipment and investments. Cash flows from financing activities Cash flows from financing activities comprise changes in the size or composition of the Group's share capital and related costs as well as the raising of loans, repayment of interest-bearing debt, payment of lease liabilities and payment of dividends to shareholders in the subsidiaries. Cash and cash equivalents Cash and cash equivalents comprise “Cash at bank”. true 23 Subsidiaries, associates etc Ownership NameCountryshare %J. Lauritzen A/S DenmarkLauritzen Bulkers A/S Denmark 100Lauritzen Reefers A/S** Denmark 100JL Shipping Invest A/S Denmark 100Lauritzen NexGen Shipping A/S Denmark 100DeaL Energy A/S* Denmark 50De Forenede Sejlskibe I/S* Denmark 55Admiral Logistics Corporation* Panama 50Web Holding Ltd. Bermuda 36BW Epic Kosan Ltd. Singapore 36J. Lauritzen Singapore Pte. Ltd. Singapore 100LKT Gas Carriers Pte. Ltd.*** Singapore 100J. Lauritzen (USA) Inc. USA 100Dan Swift (Singapore) Pte. Ltd Singapore 100Axis Offshore do Brasil Serviços Ltda. Brazil 100Dan Swift Netherlands BV Netherlands 100* Joint Venture** Dormant*** In liquidation 0 0 178000 86000 1686000 977000 -1508000 -891000 2521000 1290000 -4029000 -2181000 19377000 129985000 546000 0 21194000 12696000 30833000 52884000 3374000 320000 64547000 193064000 5577000 11078000 58970000 181986000 158907000 212061000 184030000 152203000 7818000 0 350755000 364264000 350755000 364264000 91000 0 5043000 3021000 72000 13000 5206000 3034000 90030000 60242000 39192000 17989000 134428000 81265000 485183000 445529000 60000 60000 449401000 419670000 29412000 14343000 478873000 434073000 41000 0 5748000 11149000 521000 307000 6310000 11456000 6310000 11456000 485183000 445529000 Management’s incentives programme Warrants are granted to members of the Board of Directors, Executive Management, and key personnel for the purpose of motivating and retaining a qualified management group and key personnel and in order to align their interests with those of the shareholders. The warrants are issued on the following general terms: Warrants are awarded as retention as the continued vesting of warrants are contingent on the participants being engaged at the time of vesting, ie. on the date of the Annual General Meeting’s approval of the Company’s Annual Report for the financial year 2026 or earlier if the Board of Directors decide that the vesting of warrants shall be accelerated. The exercise deadline is i) a period of 3 years following the vesting date, or ii) in case of a liquidation of the company. The Board of Directors are authorized to increase the Company’s nominal share capital up to a total of DKK 40.000 upon exercise of warrants. In 2022, 30,787 warrants were issued to the Board of Directors and Executive Management. Each warrant gives the right - but not an obligation - to subscribe for one share with a nominal value of DKK 1 at an exercise price of DKK 3,654.68 for each share. In 2023, a further 4,731 warrants were issued to key personnel. Each warrant gives the right – but not an obligation – to subscribe for one share with a nominal value of DKK 1 at an exercise price of DKK 6,896.31 for each share. The number of warrants to be vested is depending on the average increase in the market value of the Company on the basis of a five year period starting 1 January 2022 and 1 January 2023, respectively, and ending 31 December 2026 and 31 December 2027, respectively. The warrant program includes terms about reduction of the numbers of shares to be issued if the market value exceeds a certain caption and time frame regarding vesting of warrants. 60000 419670000 14343000 0 0 14170000 14170000 0 173000 -173000 0 0 29558000 29412000 60000 449401000 29412000 1 Staff expenses USD '00020232022Salaries 2,282 1,168 Pensions (defined contribution plan) 233 119 Social security 6 3 Total 2,521 1,290 Including remuneration to the Executive Management and Board of Directors 1,097 516 In 2022 and 2023, the Company issued warrants to the Board of Directors, Executive Management, and key personnel. The programme is an equity programme - see Statement of changes in Equity. 2 Financial income Interest income, bank deposits 2,946 376 Interest income, group companies 741 - Current asset investments and derivative financial instruments 27,146 51,970 Exchange value adjustments - 538 Financial income 30,833 52,884 3 Financial expenses Interests paid to group companies - 246 Other financial expenses 427 74 Exchange value adjustments 2,947 - Financial expenses 3,374 320 4 Tax on profit/loss for the year Current tax for the year 5,373 11,148 Adjustment of tax concerning previous years 204 (70) Tax on profit/loss for the year 5,577 11,078 7 4 5 Investments in subsidiaries USD '00020232022Cost as at 1 January 228,559 224,740 Additions during the year 25,469 3,819 Cost as at 31 December 254,028 228,559 Revaluation as at 1 January (16,498) 30,832 Profit for the year 19,377 129,985 Dividend received (98,000) (177,264) Other equity movements, net - (51) Revaluation as at 31 December (95,121) (16,498) Balance as at 31 December 158,907 212,061 Investments in subsidiaries are specified as follows:Place of registered Votes and Nameoffice Share capital ownership Lauritzen Bulkers A/S Denmark 500 tDKK 100%JL Shipping Invest A/S Denmark 500 tDKK 100%Lauritzen NexGen Shipping A/S Denmark 400 tDKK 100%Dan Swift (Singapore) Pte. Ltd. Singapore 89,063 tUSD 100%6 Investments in associates Cost as at 1 January 139,507 39 Additions during the year 16,071 139,468 Cost as at 31 December 155,578 139,507 Revaluation as at 1 January 12,696 - Badwill gain 7,507 13,228 Profit for the year 13,687 (532) Dividends received (5,438) - Revaluation as at 31 December 28,452 12,696 Balance as at 31 December 184,030 152,203 Investments in associates are specified as follows:Place of registered Votes and Nameoffice Share capital ownership DeaL Energy A/S Denmark 500 tDKK 50%Web Holding Ltd. Bermuda 159,558 tUSD 36%7 Other Investments (non-current) USD '0002023 2022Cost as at 1 January - - Additions during the year 7,272 - Cost as at 31 December 7,272 - Revaluation as at 1 January - - Revaluations during the year 546 - Revaluation as at 31 December 546 - Balance as at 31 December 7,818 - 10 Investment at fair value USD '000Value Fair value adjustment at 31 income December 2023statement2023Other investments 546 7,818 Current asset investments 15,503 90,030 Balance as at 31 December 16,049 97,848 USD '000Value Fair value adjustment at 31 income December 2022statement2022Current asset investments 30,720 60,242 Balance as at 31 December 30,720 60,242 8 Current asset investments Listed shares 43,230 60,242 Shares in mutual funds (fixed income) 31,716 - Investments in managed funds (fixed income) 15,084 - Balance as at 31 December 90,030 60,242 9 Special items Badwill gain on BW Epic Kosan Ltd. (Income/loss from investments in associates) 7,507 13,229 Total 7,507 13,229 0 -30832000 29558000 198425000 12 Contingent assets, liabilities and financial obligations Guarantee obligationsUSD '00020232022Guarantees for debt in subsidiaries 100,391 68,200 The Company guarantees for the performance by Lauritzen Bulkers A/S of its obligations under a loan facility. At year-end 2023, the loan amounted to USDm 100.4. Other contingent liabilities The Company has issued a letter of support for one of its subsidiary. The Company has issued a guarantee for the performance by Lauritzen NexGen Shipping A/S in relation to the agreement for three new build Kamsarmax type dry bulk vessels with expected delivery in 2026 and 2027. The remaining commitment under the building contracts amounts to USDm 116.9 subject to the shipyard meeting specific construction milestones. The Company has in relation to its participation in Premium Maritime Fund 2022 AS a USDm 6.4 commitment remaining. The Company is jointly taxed with the Danish subsidiaries of the Lauritzen Fonden. The group companies are jointly and severally liable for taxed incomes etc. of the Group. Moreover, the group companies are jointly and severally liable for Danish withholding taxes by way of dividend tax, tax on royalty payments and tax on unearned income. Any subsequent adjustments of corporation taxes and withholding taxes may increase the Company’s liability. 13 Related parties Controlling interests Lauritzen Fonden Ultimate parent Lauritzen Fonden Holding ApS Parent company Transactions The Company’s intercompany transactions has during the year been entered into at arm’s length. Consolidated Financial Statements The Company is included in the Group Annual Report of the Parent Company. Name Place of registered office Lauritzen Fonden Holding ApS Tranegårdsvej 20, DK-2900 Hellerup The Group Annual Report of Lauritzen Fonden Holding ApS may be obtained at the following address: https://datacvr.virk.dk/ 14 Events after the balance sheet date No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date. 15 Accounting policies The Financial Statements of the Parent Company form part of the Annual Report as required by the Danish Financial Statement Act. The Annual report of J. Lauritzen A/S for 2023 has been prepared in accordance with the provisions applying to reporting class C Large enterprises under the Danish Financial Statements Act. The accounting policies for the Financial Statements of the Parent Company are the same as for the consolidated financial statements with the following additions. For a description of the accounting policies of the Group, please refer to the notes of the consolidated financial statements. SUPPLEMENTARY ACCOUNTING POLICIES FOR THE PARENT COMPANY Investment in Subsidiaries and associates Investments in subsidiaries and associates are recognised and measured under the equity method. The items “Investments in subsidiaries” and “Investments in associates” in the balance sheet include the proportionate ownership share of the net asset value of the enterprises calculated on the basis of the fair values of identifiable net assets at the time of acquisition with deduction or addition of unrealised intercompany profits or losses and with addition of the remaining value of any increases in value and goodwill calculated at the time of acquisition of the enterprises. The total net revaluation of investments in subsidiaries and associates is transferred upon distribution of profit to “Reserve for net revaluation under the equity method“ under equity. The reserve is reduced by dividend distributed to the Parent Company and adjusted for other equity movements in the subsidiaries and the associates. Subsidiaries and associates with a negative net asset value are recognised at USD 0. Any legal or constructive obligation of the Parent Company to cover the negative balance of the enterprise is recognised in provisions. true Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-03-04 Reporting class C, large enterprise 41407360 Hellerup 2024-02-04 529900VSWLQF0O3GA946 33771231 Strandvejen 44 2900 Hellerup Opinion Basis for Opinion 2024-02-04 33771231 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Strandvejen 44 2900 Hellerup -11722000 -3501000