HÖEGH AUTOLINERS ASA

“Material impacts, risks and opportunities and their interaction with strategy and business model Overview of material impact, risks and opportunities 6XEWRSLF 6XEVXEWRSLF ,PSDFW /RFDWLRQLQWKHYDOXHFKDLQ 7LPHKRUL]RQ ,PSDFWULVNDQGRSSRUWXQLWLHV Working conditions Working time and work-life balance (-) Own operations Short-term to long-term The maritime industry presents unique challenges to both seafarers and landbased employees impacting their wellbeing and work-life balance. For seafarers, working at sea can be both physically and mentally demanding by nature and increase the likelihood of health and safety incidents at sea. The 24/7 global nature of shipping creates challenges for land-based employees, including constant availability across time zones, extended working hours, disrupted personal time, and difficulties in maintaining a healthy work-life balance.”

Annual report 2024A · The company itself

“Secure employment (-) Own operations Medium-term to long-term The cyclical nature of the shipping industry can cause job insecurity and organizational restructuring, although the current operations reflect stability.”

Annual report 2024A · The company itself

“information / S1 Own workforce 6XEWRSLF 6XEVXEWRSLF ,PSDFW /RFDWLRQLQWKHYDOXHFKDLQ 7LPHKRUL]RQ ,PSDFWULVNDQGRSSRUWXQLWLHV Health & Safety Severe incidents in vessel operations onboard (-) Own operations Short-term to long-term Seafarers face potential negative impacts related to health and safety due to the nature of daily vessel operations exposing them to controllable, uncontrollable, and potentially severe incidents, impacting their wellbeing and the company's operational integrity.”

Annual report 2024A · The company itself

“(-) Own operations Short-term to long-term Challenging living conditions aboard vessels, including prolonged periods away from home, confined spaces, and demanding work, negatively impact seafarers' physical and mental wellbeing, increasing the likelihood of incidents and accidents.”

Annual report 2024A · The company itself

“Reputational damage from severe incidents Risk Own operations Short-term to long-term Potential injuries and fatalities pose significant reputational risks, causing operational delays, work stoppages, and undermining our reputation with customers, which can impact revenue.”

Annual report 2024A · The company itself

“Equal treatment & opportunities for all Gender equality and equal pay for work of equal work (-) Own operations Short-term to long-term Achieving gender equality and equal pay in the shipping industry is challenging due to historical norms and systemic biases, impacting both seafarers and land-based employees. The underrepresentation of women onboard vessels and potential pay inequities for land-based roles pose significant barriers.”

Annual report 2024A · The company itself

“They relate to the sub-topics: working conditions, equal treatment and opportunities for all, and other work-related rights. S2 Workers in the value chain information / S2 Workers in the value chain Material Impact, Risks, and Opportunities Operations Value chain workers may face excessive working hours, forced labor, unfair wages, and lack of social insurance Potential negative impact ● ● ● ● ● Possible adverse effects on the health and safety of supply chain workers Potential negative impact ● ● ● ● ● Höegh Autoliners collaborates with its upstream and downstream value chain worldwide to support its operations.”

Annual report 2024A · The company itself

“Value chain workers may face negative impacts such as excessive working hours, forced labour, unfair wages, and lack of social insurance information / S2 Workers in the value chain Workers within Höegh Autoliners’ supply chain may face challenges such as inadequate wages, lack of social insurance, excessive working hours, and forced labour. These potential negative impacts are present in our upstream and downstream value chain, are considered systematic due to the nature of our operations, and can occur over the short, medium, and long term.”

Annual report 2024A · The company itself

“While the shipyard audit is under the responsibility of the Chief Operating Officer, we have not yet established a formal process for engaging with value chain workers beyond our shipbuilding operations and existing grievance mechanisms.”

Annual report 2024A · The company itself

“Our corporate head office is located in Oslo, Norway, but we employ 469 people from 24 nationalities who are working out of 16 offices around the globe. In addition, we employ 1 212 seafarers, through our crewing offices in the Philippines and China.”

Annual report 2024A · The company itself

“Our long standing commitment to in-house crewing and technical management has been essential to be allow us to lead the way in introducing larger, multi-fuel vessels to the global PCTC fleet.”

Annual report 2024A · The company itself

“Competency training and skills development related to safety for seafarers (+) Own operations Short-term to long-term Höegh Autoliners' integrated business strategy positively impacts the health and safety of seafarers by providing continuous career opportunities, enabling long-term skills development, and ensuring comprehensive training and certifications for safe operations. Regular evaluations and upskilling based on international regulations, along with training in incident prevention, further enhance the safety and preparedness of the crew.”

Annual report 2024A · The company itself

“Learning and Skill development – increase formal learning hours to an average of 2 hours per month globally (24 hours per year), to build relevant skills to adapt to evolving industry demands in 2025.”

Annual report 2024A · The company itself

“Working time and living conditions - Achieve zero incidents, findings, or deficiencies from Port State Controls related to crew welfare and living conditions in 2025.”

Annual report 2024A · The company itself

“LTIF - We aim for zero harm to people, and we use our target of < 0.7 LTIF to support our safety culture.”

Annual report 2024A · The company itself

“Leadership & Talent Development - Achieve a gender balance in promotions for those who have been on the programs into broader or higher-level roles within 12 months of completion of the program.”

Annual report 2024A · The company itself

“Fair hiring practices – Achieve at least 70% retention of diverse candidates from the first interview to the final interview stage while maintaining a skills-first selection approach. information / S1 Own workforce Engaging with our Workforce Processes for engaging with own workers and workers’ representatives about impacts S1-2 We engage with our workforce and their representatives in various ways.”

Annual report 2024A · The company itself

“Our commitment to secure employment is reinforced through the following policies: Code of Conduct – reflects our commitment to respecting fundamental labour rights by ensuring employees receive fair wages, stable employment, a healthy work-life balance, and robust protection of their workplace rights. Compensation Policy – ensures fairness, competitiveness, and transparency while upholding our commitment to equal pay for work of equal value and supporting job security.”

Annual report 2024A · The company itself

“Learning and Development Policy – supports employees in building the skills and competencies needed for career progression and adaptability to industry changes.”

Annual report 2024A · The company itself

“Our priority is to maintain secure employment, providing both stability and growth opportunities.”

Annual report 2024A · The company itself

“month globally (24 hours per year), to build relevant skills to adapt to evolving industry demands in 2025. As seen in the table in S1-13 below, this is a stretch target as we have an average of 13.1 hours per employee in 2024.”

Annual report 2024A · The company itself

“Internal mobility – Strive for a 15% internal mobility rate which will reinforce job security and2. long-term growth within the organisation over the next three years. In 2024 we had 12% internal mobility which was slightly lower than previous years.”

Annual report 2024A · The company itself

“Internal mobility – 55 people (12% of our land-based population) moved internally, were promoted or had a global mobility assignment during 2024.”

Annual report 2024A · The company itself

“Competency training and skills development related to safety Through Höegh Autoliners’ integrated business strategy, many seafarers spend their entire careers with the company, providing continuity in their work and enabling Höegh Autoliners to implement longlasting and essential skills development. This includes comprehensive training, skills assessments, and certifications for safe operations onboard.”

Annual report 2024A · The company itself

“All external parties, including our value chain workers, can raise concerns about any suspected legal or financial misconduct through our independent whistleblowing mechanism, available on our website. Our supplier code of conduct includes a dedicated section outlining the availability of the whistleblowing hotline for value chain workers, allowing them to report issues either openly or confidentially.”

Annual report 2024A · The company itself

“An internal risk assessment of existing suppliers is conducted at each functional level within the company to identify those with a higher risk of human rights breaches. To streamline this process and enhance the efficiency of our due diligence, we implemented a third-party tool in late 2024. This tool aims to improve due diligence procedures by mapping supplier risks based on external factors such as geographical location and industry presence.”

Annual report 2024A · The company itself

“China Merchant Heavy Industry is Höegh Autoliners’ largest supplier, and we are conduct regular ESG audits of the yard. These audits, conducted by DNV on our behalf, include a comprehensive review process encompassing a desktop review of public information, internal policies, onsite visits, and interviews with management and randomly selected workers. The audits cover various aspects of social management, including working hours, wages, social insurance, environmental protection, and health and safety.”

Annual report 2024A · The company itself

“Building strong customer relationships is at the core of our strategy and critical for long term success. We engage closely with our core customers to build commercial resilience, strengthen our contract backlog, and continuously evolve our service in response to the changing needs and priorities of our customers.< J+(("(+ 9(<*C(&,5(&4+(("(+&8(()G:($&*)(+$,*+&,*&:(<#+(&*#+&>#,#+( We are investing in green fleet renewal to facilitate low carbon transportation and provide our !""#$%&'()*+,&-.-/&0&!1*#,&23(45&0&Strategy and business customers with green optionality to achieve their decarbonization goals.”

Annual report 2024A · The company itself

“Aurora delivery and optimizing fleet Following the delivery of the first four Aurora Class vessels during 2024, we currently operate the largest and most carbon-efficient car carriers in our industry. The vessels reduce emissions per car transported with up to 58% compared to a conventional car carrier.”

Annual report 2024A · The company itself

“Our aspiration to take delivery of the world’s first PCTC vessel to run on ammonia in 2027 has been converted into firm contracts during 2024 and is progressing according to plan.”

Annual report 2024A · The company itself

“In April 2021, we launched the design of the world’s largest and most environmentally friendly PCTC vessels, the Aurora Class. The Aurora Class has DNV’s new “ammonia ready” notation, which makes it the first in the segment to be ready for operation on carbon neutral ammonia. Together with its capacity to carry up to 9 100 cars it will be the world’s largest and most environmentally friendly car carrier to be built.”

Annual report 2024A · The company itself

“The Logistics segment represents around 0.5% of the Group’s total revenue, profit or loss and assets. The Group has decided that the segment is not material to the Group for the periods ended 31 December 2024 and 31 December 2023, and has reported information as one combined segment.”

Annual report 2024A · The company itself

“Our global network of deep sea trades positions us as a reliable partner for both global car manufacturers and shippers of used vehicles.”

Annual report 2024A · The company itself

“Annual Report 2024 / About Höegh About Höegh in brief Höegh Autoliners is a leading global provider of ocean transportation services within the Roll-on Roll-off (RoRo) segment. We operate a global network of deep sea trades with Pure Car and Truck Carrier (PCTC) vessels.”

Annual report 2024A · The company itself

“The Group has two operating segments, Shipping services and Logistics services.”

Annual report 2024A · The company itself

“We are actively embracing advances within big data processing, computing power, cloud technology and AI. These are enabling digital transformation of our core processes in customer interactions, voyage management as well as cargo and vessel operations< < !""#$%&'()*+,&-.-/&0&!1*#,&23(45&0&Strategy and business B*+)*+$,(&)#+)*:( M%$"(, 6$;%;"4&>*+&:#:,$;"$1;%;,7H B*+)*+$,(&)#+)*:( As a shipping company operating worldwide, we need to take responsibility for the environment we operate in, and sustainability has been and is at the core of our operations.”

Annual report 2024A · The company itself

“Operational efficiency is key to delivering a competitive product to our customers. We continuously look for opportunities to reduce voyage costs and maintain a lean operating model across all areas — from optimizing our global trade network to streamlining internal processes.”

Annual report 2024A · The company itself

“We offer our customers safe and secure deep sea transportation of RoRo cargo such as cars, high and heavy machinery and breakbulk. Each year, we transport around 1.6 million car equivalent units (CEU) as well as other rolling and static cargo.”

Annual report 2024A · The company itself

“We are actively embracing advances within big data processing, computing power, cloud technology and AI. These are enabling digital transformation of our core processes in customer interactions, voyage management as well as cargo and vessel operations< < !""#$%&'()*+,&-.-/&0&!1*#,&23(45&0&Strategy and business B*+)*+$,(&)#+)*:( M%$"(, 6$;%;"4&>*+&:#:,$;"$1;%;,7H B*+)*+$,(&)#+)*:( As a shipping company operating worldwide, we need to take responsibility for the environment we operate in, and sustainability has been and is at the core of our operations.”

Annual report 2024A · The company itself

“Currently, our largest supplier is the shipyard involved in our newbuilding program.”

Annual report 2024A · The company itself

“Total light vehicle shipments in Höegh Autoliners’ relevant deep sea trade lanes increased by an estimated 9% in 2024 – a result of a solid, supply-unconstrained sales growth across all markets.”

Annual report 2024A · The company itself

“Source: S&P Mobility, GTA Jan 2025 customs data 2024 !""#$%&'()*+,&-.-/&0&!1*#,&23(45&0&Strategy and business J%*1$%&MB[B&>%((, The global PCTC fleet trading in the deep-sea trades totalled 724 vessels (4.3 million CEU capacity) by 4 March 2025.”

Annual report 2024A · The company itself

“The global order book counted 200 vessels, of which 57 vessels are scheduled for delivery in 2025, 58 vessels in 2026, 47 vessels in 2027, 38 vessels in 2028-2031. The capacity on order is equal to 37% of the total fleet.”

Annual report 2024A · The company itself

“Sources: JAMA; KAMA, CAAM China continued to cement its position as the largest vehicle exporting country by volume with 2024 total exports of 5.9 million units (incl. overland and shortsea volumes), compared to 4.2 million units exported from Japan.”

Annual report 2024A · The company itself

“We employ 1,681 dedicated professionals across our global operations, including 469 land-based employees in 16 office locations and 1,212 seafarers from China and the Philippines.”

Annual report 2024A · The company itself

“In 2024, vehicle sales in Höegh Autoliners’ relevant destination markets were up 2% – marginally higher than the overall global sales growth. Vehicle electrification and EV industrial policies in Europe were a key driver behind strong European sales growth.”

Annual report 2024A · The company itself

“However, this decline was more than offset by growth in Chinese exports of hybrid vehicles – up by 127% in 2024 with most of this growth taking place in Q4.”

Annual report 2024A · The company itself

“The strong operating result is reflecting the high net rates in a strong spot market and successful repricing of contracts, although it was partially offset by lower volumes and increased costs due to the re-routing south of the Cape of Good Hope throughout the year.”

Annual report 2024A · The company itself

“The Group has Bunker Adjustment Factor (BAF) clauses in most commercial contracts, designed to adjust for changes in bunker prices. Due to time lag, the Group will not be fully compensated in periods of rapidly changing prices, but the BAF will give reasonable compensation in most periods.”

Annual report 2024A · The company itself

“Consumer demand could remain challenged by affordability issues, including higher interest rates and energy prices.”

Annual report 2024A · The company itself

“Higher interest rates have dampened global construction and resulted in an estimated 11% fall in global equipment sales (in value terms). The outlook for 2025 is somewhat flat with an expected pick up from 2026.”

Annual report 2024A · The company itself

“The light vehicle demand recovery in the U.S. may lose some momentum due to the new U.S. Administration introducing new tariffs and trade policies.”

Annual report 2024A · The company itself

“China’s 2024 BEV exports to Western and Central Europe declined by 11% y-o-y as a direct result of !""#$%&'()*+,&-.-/&0&!1*#,&23(45&0&Strategy and business EU’s import tariffs on Chinese electric cars in 2H 2024.”

Annual report 2024A · The company itself

“2024 Global auto sales reached 88.3 million units, up by 1.7% from 2023. The demand for global light vehicle demand continued its post pandemic recovery in 2024, albeit at a slowing pace.”

Annual report 2024A · The company itself

“Sources: JAMA; KAMA, CAAM China continued to cement its position as the largest vehicle exporting country by volume with 2024 total exports of 5.9 million units (incl. overland and shortsea volumes), compared to 4.2 million units exported from Japan.”

Annual report 2024A · The company itself

“Consumer demand could remain challenged by affordability issues, including higher interest rates and energy prices.”

Annual report 2024A · The company itself

“Resource use in newbuilding process Newbuilding projects require substantial sourcing of raw materials, particularly for producing the steel used in vessel construction. This process involves the extraction and processing of iron ore, among other materials, which negatively impacts the environment through waste generation, and resource depletion.”

Annual report 2024A · The company itself

“Together, we are steering Höegh Autoliners towards a sustainable future and delivering on our mission to “make the impossible possible” Looking ahead Geopolitical and macroeconomic uncertainties are on the rise at the start of 2025.”

Annual report 2024A · The company itself

“The Group reported total revenues in 2024 of USD 1 371 million (USD 1 446 million in 2023) and an operating profit (EBITDA) of USD 692 million (USD 736 million in 2023).”

Annual report 2024A · The company itself