EXMAR report 2025

4.2 Internal control and risk management systems – assessment 161 DESCRIPTION OF RISK POTENTIAL IMPACT LIMITING FACTORS AND CONTROL EMPLOYMENT Vessels or other floating assets remain off-hire for a substantial period, or charters are not renewed or terminated early. In case we cannot sign profitable long-term charters for our existing fleet or our assets under construction our result, cash flows and financial position might be substantially affected. We would be subject to a short- term or spot market or charters based on changing market prices. In addition, it might be more difficult to obtain financing for such assets at reasonable terms. In absence of long-term employment of our main assets, our EBITDA and covenants might be substantially affected. Our management team and our commercial team have many years of experience and have an extensive network in the market. Our charter portfolio is very diversified. The commercial strategy is to remain flexible in the market by having a good balance between long-term and short-term charters. A sizable fleet in especially Midsize (MGC LPG carriers) has been able to mitigate this risk almost in full. For the Infrastructure assets, proper termination clauses are negotiated and included in long-term charter agreements so that in case of early termination, the legal and commercial teams have sufficient time to find a new charterer at decent rates. REGULATIONS New or updated regulations (potentially) impact operations, including: - The risk of a reversal of existing favourable tax regimes (such as the Belgian tonnage tax regime). - Current regulatory changes (Both environmental and ESG) impose additional taxation, including emissions trading schemes (e.g. ETS), carbon tax, or Fuel EU Maritime penalties. Regulatory changes are resulting in increases in expenditure to comply with new or changed (mor stringent) requirements and may adversely impact our ability to charter our vessels or floating assets. Maintaining compliance with changed laws, regulations and obligations increases our costs related to operating and maintaining our vessels and require us to install new emission controls, acquire allowances or pay taxes. Continuous monitoring and anticipation of changes in legislation and applicable requirements. Our in-house ship manager as well as our fleet management teammonitor ongoing trends and changes in regulations Moreover, we provide our input via different organisations (e.g. RBSA). The investment in new build vessels powered by alternative fuels places the Company in a favourable position to benefit from changes in environmental requirements. Often, regulations have long lead times for implementation offering us ample time to anticipate and amend such changes within the charter parties. Where possible penalties related to regulations are passed on to charterers limiting Owners’ risk. CLIMATE CHANGE GHG Emissions from own operations (Scope 1-2). The distribution of the scope1-2 GHG can be seen in the Sustainability report. As described in the Sustainability report, this entails only a small portion (<1%) of our total GHG emissions. For further actions, see above. Indirect contribution to GHG emissions (Scope 3) Investment portfolio: Vessel sail on fossil fuels and infrastructure units uses fossil fuels and/or shore power, leading to the emission of greenhouse gasses. Moreover, we an indirect effect by transporting hydrocarbons (incl. shale gasses) and ammonia. The extraction process of these gasses leads to a lot of GHG emissions. As described in the Sustainability report, this entails a significant portion of our total GHG emissions. For further actions, see above. GHG Emission from our suppliers (Scope 3) Production of spare parts, transport, production of fuels, business travel, public transport commute, etc. emitting GHG As described in the Sustainability report, this is part of our scope 3 emissions. For further actions, please refer to the detail in the report. INFORMATION TECHNOLOGY SYSTEMS Information technology systems change rapidly and are fundamental for the day-to-day operations. The failure of key information technology systems or processes could adversely affect the operations or lead to data breaches. Cyber- attacks, ransomware or other security breaches could make information technology systems unavailable, interrupt our vessel operations and result in a loss of hire. A dedicated IT teammonitors continuously the information technology changes and exposures. Several measures such as firewalls, anti-virus software and separated networks etc. are in place. An information technology risk assessment is performed on a regular basis. Policies and procedures are in place and include a disaster recovery plan, an incident response plan and a business continuity plan.