Board of Management’s overall assessment of the economic environment

Due to the ongoing war between Russia and Ukraine at the end of the previous year and the conflicts in the Middle East and the Red Sea, BLG LOGISTICS anticipated another challenging year in its planning for the 2025 financial year. This was further compounded by uncertainties at the beginning of 2025 due to continued subdued consumer demand, the formation of the new federal government and announced tariffs by the US administration. The global economic and geopolitical dynamic in the reporting year confirmed this projection. Multiple crises continued to dominate the global political stage in 2025.

Nevertheless, BLG LOGISTICS delivered robust results in the 2025 financial year despite a weak market environment and closed the year significantly above expectations. In particular, the focus on profitability, liquidity and equity proved beneficial.

However, economic uncertainties are expected to persist or increase. As a logistics service provider and port operator, BLG LOGISTICS feels the effects of these economic developments. With its three divisions and diversified structure, the Group forms a resilient organization that is strengthened by consistent cost management, disciplined liquidity management and a value-oriented pricing strategy. In addition, operational excellence continues to be advanced across sites, supported by centralized cash and investment management.

With its “Clearly on course” strategy, BLG LOGISTICS aims to succeed through discipline and excellence even in times of volatile markets. Digitalization and automation will continue to be a key focus – supported by the appointment of a new Chief Information Officer – and will serve as drivers of efficiency and quality.

AUTOMOBILE Division

In the AUTOMOBILE Division, volumes in vehicle handling and transport were significantly below the expected values and slightly below the previous year’s level in the 2025 financial year. This is due in particular to the economic environment, trade barriers resulting from US tariffs and the challenges facing automotive manufacturers. Nevertheless, the results achieved by the AUTOMOBILE Division once again marked an improvement compared to the previous year. There are multiple reasons for this, including:

• In the seaport terminals, we are dependent on the global market and not exclusively on developments in Germany.

• Good capacity utilization at the seaport in the inland terminals on the whole, in particular with regard to value-added services and through long-term leased space, led to improved contributions to earnings.

• There is a general trend for car makers to increasingly outsource more activities to (logistics) service providers.

• Efficient processes and improved pricing quality.

• Unplanned spot transactions and an improved mix of in-house and external services in our service portfolio resulted in road and rail transport performance that exceeded expectations.

• Despite some severe infrastructure disruptions (construction sites, closures, etc.) and the continuing shortage of truck drivers and train drivers, many cars continued to be transported by road and rail.

• Overall, significantly fewer external personnel were required than planned and maintenance expenses were not incurred in line with the forecast due to the lack of internal and external resources.

As a result, start-up costs at our new inland terminal in Ahlhorn, as well as weaker results in Southeast Europe and in the technical segment, were more than offset. With the new inland terminal in Ahlhorn for integrated vehicle logistics, the foundations were laid during the financial year for the further expansion of the site network to strengthen customer relationships and deepen value creation.

CONTRACT Division

The CONTRACT Division manages complex projects and offers its customers reliable logistics solutions. At more than 40 locations in Europe and overseas, we work in our own logistics centers and in our customers’ production facilities and warehouses. The division is divided into three core sectors: Consumer & Fashion, Industrial & Energy and Mobility. Consumer goods and e-commerce services in particular were in demand again 2025. Some sites in this segment exceeded expectations for the financial year.

On the whole, however, the CONTRACT Division was well below plan for the 2025 financial year. In the reporting year, higher volumes, increased productivity and additional business at other sites, and the focus on high-margin and future-oriented activities were unable to fully compensate for sometimes sharp declines in volumes due to reduced demand, particularly when it came to car part logistics and other parts of industrial logistics at individual locations, as well as various one-off effects. Market volatility is also reflected in fluctuations in manufacturers’ monthly forecasts. At Neustädter Hafen in Bremen, the volumes handled were also negatively affected in particular by US tariffs and the order situation in the industries concerned. At present, the market does not show any signs of rebounding.

At the overseas industrial logistics sites, the South African site in particular has once again continued on its positive trajectory. The site was able to close the year much better than originally expected. In contrast, the US business closed the 2025 financial year with a negative result, due in part to low volumes and vacancy costs.

One-off effects such as adjustments (for impairment, among other reasons) also had an impact on earnings. Despite countermeasures such as cost reductions, restructuring and process improvements, the division’s overall result failed to reach positive territory.

CONTAINER Division

The CONTAINER Division of BLG LOGISTICS is represented by half of the company shares in the joint venture EUROGATE GmbH & Co. KGaA, KG (EUROGATE). This company operates – in some cases with partners – container terminals in Bremerhaven, Hamburg and Wilhelmshaven (Germany), at the Italian locations La Spezia, Ravenna and Salerno, in Limassol (Cyprus), as well as in Tangier (Morocco). The EUROGATE Group also has holdings in several inland terminals and railroad transport companies.

In addition, EUROGATE became a shareholder in the Damietta Alliance Container Terminal S.A.E. joint venture in 2022. This new terminal at the Port of Damietta, Egypt, commenced operations in the reporting year.

The CONTAINER Division’s business mainly involves container handling. Complementary services are also provided in the form of intermodal services, such as the carriage of sea containers to and from the terminals, repairs, depot storage and trading of containers as well as cargomodal services and technical services.

The following figures correspond to the 50 percent ownership interest in EUROGATE. The prior-year result includes a one-off effect of EUR 19.2 million from TEU guarantees that were no longer required.

Despite the difficult economic situation and geopolitical crises, the CONTAINER Division was able to close the 2025 financial year with earnings significantly above expectations. The EUROGATE Group benefited not only from strategic shipping partnerships but also from additional storage and reefer revenues exceeding expectations, driven in particular by high utilization at the terminals in Bremerhaven and Hamburg as well as schedule deviations by shipping lines.

On the whole, the inland container terminals of the EUROGATE Group handled more containers in the reporting year. Compared with the previous year, the increase came to around 13 percent. The structural and lasting changes in the container industry and shipping company alliances continued in the reporting year, making it imperative to forge ahead with implementing the transformation measures aimed at stabilizing the future of the EUROGATE Group.

Group-wide

BLG LOGISTICS sees potential for growth arising from factors including:

• gains in market share among new customers, such as Chinese automotive manufacturers in Eastern Europe

• OEMs’ new sales strategies that result in new logistics requirements

• changes in the fleet and mobility market

• the strengthening of loading segments such as high & heavy, project logistics and

• in logistics for alternative energy sources (offshore wind farms) and long-term industrial goods, which require complex logistics solutions and integration into the entire supply chain from the plant to the end customer

This assessment is based on the results of the combined financial statements for 2025 and takes into account business performance up to the time the combined group management report was prepared in 2026. Business development at the beginning of 2026 is in line with expectations.