annual& ESG
report2023

Hurtigruten group

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices

Senja, Norway
Photo: Marco-Bottigelli, Getty Images

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices

Dear fellow
travellers
2023 will for aways stand for us as a transformative year for the Group. In 2023
we have continued on the journey to make sure our two operating companies,
Hurtigruten, with 130 years of operating the original Norwegian Coastal Expressand HX Hurtigruten Expeditions, the global leader in expedition cruising withthe world's first expedition cruise in 1896, reach their full potential as standalonecompanies.

For the first time we are publishing an integrated annual report, combining financial
and sustainability reporting. This reflects
the increasing importance of environmental,social and governance issues to ourpartners, employees and owners.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 02

The pandemic hit the travel industry hard,
and the industry has had challenging years
also in the wake of the pandemic. In Hurtigruten Group, we have used these years
to reshape the Group into two standalonecompanies. This process started in March
2021, when the fleet was separated into

one dedicated to Hurtigruten and one to
HX Hurtigruten Expeditions. The ongoingstrategic effort to develop Hurtigruten, with
HQ in Oslo and HX Hurtigruten Expeditions,with the HQ in London, into standalone andautonomous entities has taken significant
steps during 2023.

Rebranding to HX and Hurtigruten
During the second quarter of 2023 we
initiated the separation of group functions,with particular emphasis on outlining
the commercial and marketing teams foreach unit. In September, we announced arebranding of Hurtigruten Expeditions to
HX, and Hurtigruten Norway to continue
with its iconic name but simplifying it tojust Hurtigruten.

Daniel Skjeldam
Chief Executive Officer,

Through the second half of 2023, weshaped a blueprint for robust financial,organizational, and operational frameworks
tailored to the unique requirements ofeach business unit. The remaining workthroughout 2024 will be separating thefinance function linked to the joint capital
structure, as well as the separation ofsystems and digital/IT solutions. We believe

Hurtigruten GroupA message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendicesstrong organizational focus in each entity
and increasing brand awareness across key
markets will strengthen the positioning of
Hurtigruten and HX Hurtigruten Expeditions and drive demand for our products
and itineraries.

On the right track
Our effort for a more sustainable travelindustry stands out as a core value forus, and we continue to push boundaries
as leaders in our industry. Among theachievements this year was transforming
Hurtigruten's MS Kong Harald to a battery
hybrid ship, as part of the environmental
upgrade program of the fleet. This will cut
CO2 emissions by 25%, and NOx emissions
by 80% – setting in motion one of Europe's
most ambitious environmental fleet
upgrades.
It is great to see that we are on the righttrack when it comes to emissions in 2023.
With 10% reduction in CO2 per guest in
Hurtigruten and 17% reduction in CO2 per
guest in HX Hurtigruten Expeditions.
Our efforts are also recognized externally.
In 2023, we received #1 ESG Ranking
of a Cruise Company from Morningstar
Sustainalytics, and Hurtigruten Group is the
only cruise company to be awarded a Low
ESG Risk Rating. In Germany, we are #1 in
NABUs Cruise Ranking for 2023, Germany's
oldest environmental association.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 03130 years with Hurtigruten
In 2023 we celebrated our 130th anniversary with Hurtigruten sailing the iconic
route along the Norwegian coast. This wasmarked by the introduction of two new
successful Signature routes; The Svalbard
express between Bergen and Svalbard;
and The North Cape express between
Bergen, the North Cape and Oslo. In July
2023 the Group decided to strengthen thissuccess even more with moving MS Otto
Sverdrup from HX Hurtigruten Expeditions
to Hurtigruten to expand the offer under
Hurtigruten's Signature category.
I firmly believe that the actions we havetaken in 2023, along with our plans going
forward, have made us a more resilientGroup. I want to thank our employees,
our partners and all our stakeholders
for believing in us and supporting thistransformation.
I am immensely proud of all we haveachieved despite operating in a complex
environment over the last years. We willcontinue to lean into the legacy that wehave created over 130 years and challenge
ourselves every day to have a more profound
impact on the communities where we live,
operate and visit. Our guests are readyto travel again, and we are excited to seethem eagerly returning to take on their next
adventure together with us.

Snowshoeing provides a fantastic
opportunity to experience places suchas Damoy Point, Antartica.
Photo: Camille Seaman

All the best,

Daniel Skjeldam
Chief Executive Officer, Hurtigruten GroupA message from the CEO

THE SPLIT

About the GroupESG Reporting
Report of the Boardof Directors
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2025

On our journey from a group
to independent companies

2022

2023

The startof the split

Full
operation

Dedication ofgroup services

Hurtigruten& ­HX Hurtigruten­Expeditions­established as
separate business

Both fleetsback in fulloperations

Functions starting
move from Groupto Hurtigruten &HX Hurtigruten
Expeditions

units with separate
fleets2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 04

Hurtigruten Norway
becomes Hurtigruten &Hurtigruten Expeditions
becomes HX in Global
Rebranding

Enables path
towards full
separation of
the Group

2024

2021

ESG Appendices

Rebranding
announced

Announced ­transaction

Full
separation

Blueprint

Developing of
blueprint to finalize
the split of sharedfunctions

Roadmap for the final
steps on fully independent Hurtigrutenand HX Hurtigruten
Expeditions

Full separationof Hurtigruten &HX Hurtigruten
Expeditions from2025

A message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

HurtigrutenGroup

ESG Reporting
Report of the Boardof Directors
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ESG AppendicesGetting that close tonature experience kayaking
in Leith Cove, Antarctica.
Photo: Yuri Choufour

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 05

A message from the CEO
About the Group
Hurtigruten Group

Hurtigruten group

Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors

Hurtigruten

HX hurtigruten ­expeditions

The operator of the Norwegian Coastal
Express has been sailing the Norwegiancoastline since 1893 on what is considered
the world's most beautiful sea voyage.
Today, Hurtigruten's eight ships areconnecting communities, delivering freight,
and showcasing the Norwegian coast totravellers from around the world.

The world's largest and leading
expedition cruise company. The
company has been taking adventure
travellers to unique and inspirational
destinations off the beaten pathsince founding expedition cruisingin 1896. HX Hurtigruten Expeditions
currently offers over 150 itineraries
across five continents aboard sevencustom-built 100 to 500 berth
expedition cruise ships.

founded1893 34

ports

8

cruiseships

Financial Statements
ESG Appendicesfounded1896 150

itineraries

7

projects

10.5

custom-built
cruise ships

Hurtigruten ­Destinations
The indisputable main adventure tour
operator for the Svalbard archipelago brings
people closer to the vastness of the Arctic's
nature all year round. Hurtigruten Svalbard
is the longest-running tour operator in
Svalbard (est. 1989), offering land-basedadventures, accommodation and dining inthis spectacular wilderness destination.

founded1989 3

Hotels200

land-basedadventures

Hurtigruten ­foundation

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 06

Our non-profit foundation was establishedin late 2015 as a collaboration between the
Hurtigruten Group and our guests, partners
and suppliers.

The aim was to create a ­positive impact forthe oceans, wildlife and local communities,
and since its inception it has supported oversixty projects worldwide.

founded2015 140NOKMILLA message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
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Hurtigruten group
Hurtigruten Group is a truly global
company with strong Norwegian
heritage. The Group has the ambition to attract adventure travelers
from all over the world and introduce them to unique and inspirational destinations through its two
distinct businesses: Hurtigrutenand HX Hurtigruten Expeditions.
The two businesses are frontrunners inadventure travel and expedition cruising,a niche with substantial global growthpotential.
The Group has two distinct businesssegments:
Hurtigruten (formerly known as Hurtigruten
Norway) – branded as Hurtigruten in
Scandinavia and Hurtigruten – Norwegian
Coastal Express in other markets, and from2023 including the unit of Hurtigruten
Destinations.
HX Hurtigruten Expeditions (formerly
known as Hurtigruten Expeditions) branded
as HX Hurtigruten Expeditions in all markets.

Started back in 2021

PAGE 07

To further develop and clarify the distinction
between the brands a rebranding of Hurti-

MS Kong Harald
passes beautiful
Skjervøy in themidnight sun, Norway.
Photo: Hurtigruten,
photo comepetiton

HX Hurtigruten Expeditions is the world's
largest expedition cruise company, in 2023
operating seven expedition vessels, three of
which are battery powered hybrid-electric
cruise vessels. Hurtigruten operating eightvessels, two of which are battery powered
hybrid-electric cruise vessels.
The ongoing strategic effort to develop­Hurtigruten and HX Hurtigruten Expeditions into distinct and autonomous companies has taken significant steps during2023. This strategic division is imperative tofacilitate the individual growth trajectories
and objectives of both Hurtigruten and HX
Hurtigruten Expeditions.

Bringing out the split
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

gruten Norway and Hurtigruten Expeditions
was announced and carried out in 2023.
Hurtigruten Expeditions will transform
into HX, and Hurtigruten Norway willcontinue with the iconic name, simplified
to just Hurtigruten. ­Hurtigruten and HX
Hurtigruten Expeditions have a high levelof recognition in key travel markets, such as
Germany, UK, the Nordic countries and wehave seen a significant increase in the US
and Australian markets as well. This showsthat we have a position in all four large
cruise markets.

The division started with the separation of
our fleet in 2021, marking the initial step
towards independent operations. In 2023,
the Group continued this journey and took
significant steps that reinforced the devel-

opment of Hurtigruten and HX Hurtigruten
Expeditions as independent companies. In
2023 we initiated the separation of groupfunctions, with particular emphasis on
outlining the commercial teams for eachcompany.
Through the second half of 2023, weshaped a blueprint for robust financial,organizational, and operational frameworks
tailored to the unique requirements of eachbusiness unit. Remaining work throughout
2024 will be dividing of the finance function
linked to the joint capital structure, as wellas the separation of systems and digital/IT
solutions.

With this process, the two businesses
are positioning in line with their long andproud legacy and building world leading
brands though organizations with global
capabilities.
The Group and HX Hurtigruten Expeditions
are headquartered in London, while Hurtigruten is headquartered in Oslo. In addition
to the headquarters, the businesses haveoffices and operations in Hamburg, Tromsø,
London, Paris, Seattle, Melbourne, Tallinn,
Hong Kong, Shanghai, Longyearbyen and
Kirkenes (where Hurtigruten's crew centeris situated) serving the most important andemerging markets.

A message from the CEO
About the Group
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Closer to nature with minimal
environmental footprint
Hurtigruten and HX Hurtigruten Expeditions differs significantly from the offeringof other expedition cruise and adventure
travel operators, with a customer offering
designed to reach a wide range of customer
segments, giving the guests the opportunity
to get closer to nature in beautiful areas off
the beaten path to experience local wildlife,
culture and activities – with a minimal
environmental footprint.
Operating smaller, custom-built vessels,
Hurtigruten and HX Hurtigruten Expedition
can go where others cannot and their crew
and staff are very familiar with the waters
they sail in, which are among the mostchallenging in the world.
In HX Hurtigruten Expeditions, the day-today itineraries and programs are adjusted
based on weather and local conditions,ensuring optimal sightings of nature andwildlife, cultural events in several ports ofcall and other experiences.
Hurtigruten's voyages lets the guest
immerse in the everyday life along therugged Norwegian coasts visiting small
villages, admiring beautiful landscapes andexperiencing the Norwegian culture andwildlife through a wide range of excursions,

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 08

including the northernmost settlement in
the world on the Archipelago of Svalbard to
experience the Arctic frontier like no otherplace on earth.

MS Fram, a custombuilt expedition ship from
HX Hurtigruten Expeditions,pictured here in Greenland.
Photo: Hurtigruten

Unique destinations around the world
Hurtigruten Group's brands offers a uniquegateway to the Norwegian coast, Greenland,
Svalbard, Iceland, British Isles, Alaska,
South America, Arctic, Antarctica, Galapagos and to other unique destinations totravelers from all over the world. HurtigrutenGroup's operation builds on a rich and proud
Norwegian Expedition Cruises heritage
having offered scheduled voyages along the
Norwegian coast since 1893 and offering
the first Expedition cruises to Svalbard as
early as 1896. Today, this combines a deeply
rooted desire to offer genuine experiences,the best local food and beverages, all whileleaving a minimal environmental footprint
as it shapes the future of the growing
adventure travel and expedition cruise
market in a sustainable way.

Our commitment to ESG
All operations are done with our ESG ethos
in mind. We want to champion responsible
and sustainable travel and are constantly
striving to leave a positive impact acrossthe value chain, from vendors to thedestinations where we operate. Our ESG
ambition is to be the most sustainable

travel operator in the world, and to keep
pushing the industry's boundaries for ESG.
To achieve this, we will continue to work
towards having the greenest fleet in theworld, educating our guests on climatechange and the ecosystems we visit,
pushing for local value creation and helping
sustain coastal communities, and – last but
not least – being a great place to work.
This commitment to ESG is demonstrated
through our hybridization investments inwhich we are converting 3 Hurtigruten
ships to battery-powered hybrid propulsion
with the aim of reducing CO2 emissions byaround 25% and NOx emissions by morethan 80%.

WORLD'S BEST ESG RANKEDCRUISE COMPANY
In 2023 Hurtigruten Group received
best ESG ranking for a global cruiseline on ESG rating from Morningstar
Sustainalytics and only one with a“low ESG risk”. Read more here.

A message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors
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ESG Appendices

Hurtigruten
Hurtigruten sails the ­legendaryroute, often referred to as “themost beautiful voyage in theworld”, which operates Norwegian Coastal Express, and Signature routes along the ­Norwegiancoastline to The North Cape andSvalbard. Hurtigruten is offeringa unique combination of transport for local travelers, freight,
and international tourists, as done
since the very first departure morethan 130 years ago.

Norway is the best place toexperience the Northern Lights,
Hurtigruten the best way to2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 09

experience it.
Photo: Hurtigruten

A message from the CEO
About the Group
Hurtigruten Group

Highlights 2023

Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors
Financial Statements

Total Revenues

334.9
1 380 employees
mill
eURO

770 000 cruise nights

ESG Appendices“We've been caring for our coastfor 130 years and will be continuing
to do so for the next 130 years andmore. We're shaping sustainable
travel experiences, striving to keep
our footprint small and our impact
lasting.”
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 10

Hedda Felin, CEO
Hurtigruten

Hurtigruten's eight ships bring guests closer
to nature and local communities. They connect the international traveler with everyday
life along the rugged Norwegian coast. The
voyage forms part of the country's cultural
heritage and is an important link between
coastal communities, strengthening thebrand's legitimacy with international
travelers seeking authentic Norwegianexperiences.

MS Nordkapp in the
narrow and distinctive
fjord Trollfjorden.
Photo: Trym Ivar Bergsmo

Introduced Signature sailings
Hurtigruten expanded the offer beyond
the original coastal express in 2023 with
the Signature products Svalbard Line andNorth Cape Line, a more premium productbuilt to showcase the best Norway has tooffer while preserving our historical heritage
along the coast with experiences close tonature, local communities, and Norwegianculinary kitchen. In 2023 Hurtigruten
started preparing for an additional Signature product with MS Otto Sverdrup sailingdirectly from Hamburg along the Norwegian
Coast under Hurtigruten fleet from January
2024.

Norway's Coastal Kitchen
Hurtigruten has integrated the Norwegian
food culture in the onboard culinary
concept Norway's Coastal Kitchen. In thepeak seasons, 80% of the ingredients in
the restaurants come from more than 50
local suppliers along the coast. Sourcing
food locally is not just about fresh, farm-and-fjord-to-table flavors. It is also about
achieving the lowest footprint possible andmaking sure there is minimal food waste.

Unique activities and experiences
Excursions and authentic experiences havebeen a prioritized area for Hurtigruten formany years. By collaborating with around 30
excursion providers the company is offering
guests more than 70 unique and seasonallyadapted activities and experiences. With
the Norwegian Coastal Express being oneof Norway's foremost tourist products, thisis a driving force for the development of
Norwegian tourism industry and marketingof the country internationally.

In 2023, Hurtigruten entered into a partnership agreement with Arctic Umiaq Line,the official Greenland coastal passenger
ship service since 1774, with the aim of
expanding their offer globally in connection
with the expansion of airports in Greenland.
With the year of our 130th anniversary
behind us in 2023, Hurtigruten aims to further develop and strengthen the Hurtigruten
brand with the ambition to be the iconic
travel operator for the Norwegian coastand Arctic region, continuously shaping
sustainable travel experiences.

A message from the CEO
About the Group
Hurtigruten Group

Milestones 2023

Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors
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ESG Appendices

7 ships operated under state contract
Hurtigruten operates seven ships under the state
contract valid from 2021 to 2030. In 2023 all ships
were fully operational throughout the whole year.
Photo: Hurtigruten

MS Kong Harald upgraded to hybrid
In 2023, MS Kong Harald was upgraded toa hybrid ship as part of one of the largest
environmental upgrades in the history ofEuropean shipping. In 2022 the company
initiated this program with large-scale
investments in batteries and state-ofthe-art technology that will reduce CO2
emissions by 25% and NOx emissions by
80%. By 2025 three out of seven ships inthe coastal fleet will be converted to hybrid
ships and 7 out of 7 ships will be fitted with
SCR systems (cutting NOx).
Foto: Nature Picture Library / Alamy Stock Photo

Sea Zero kicked off
In 2023 Hurtigruten presented renderingsof the future ship in the Sea Zero project
together with our 13 industry partners.
Together, we explore how state-of-the-art
energy efficiency and carbon-neutral
technologies can take us to our ambition
to sail emission-free along the Norwegiancoast by 2030.
Photo: Hurtigruten

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 11

A message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
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HX Hurtigruten
Expeditions

ESG Reporting
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HX Hurtigruten Expeditions is
the world's ­largest and leading
expedition cruise line, with sustainability and ­exploration at its
core, building on the experience
dating back to its first ­expedition
cruising in 1896.

MS Roald Amundsen,
the world's first hybrid cruise
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 12

ship. Here in Antarctica.
Photo: Dan AvilaA message from the CEO
About the Group
Hurtigruten Group

Highlights 2023

Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors
Financial Statements

Total Revenues

287.3
1 155 employees
mill
eURO

481 000 cruisenights

ESG Appendices

PAGE 132023 was a year of full-fleet operations for
HX Hurtigruten Expeditions, with sevenships operating under the HX Hurtigruten
Expeditions umbrella: Battery-hybrid
powered MS Roald Amundsen, MS Fridtjof
Nansen and MS Otto Sverdrup, as well as
MS Fram, MS Maud, MS Spitsbergen and
MS Santa Cruz II.

On the right track"Sustainability for both people andthe planet is at the heart of everything
we do. We want to ensure that the
explorers of tomorrow have the sameunique experiences as our guests oftoday.”
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

HX Hurtigruten Expedition offers big
adventures on small, custom-built ships at
hundreds of destinations in more than 40
countries across four continents – including
Galapagos, Antarctica, South America,
Alaska, Iceland, Greenland, Svalbard, British
Isles, the spectacular Norwegian Coastline,
and a variety of other destinations.

Daniel Skjeldam, CEO
HX Hurtigruten Expeditions

Pioneering new standards in emission
reductions, HX Hurtigruten Expeditions'
fleet has been fitted with shore power connectivity since 2021, and in June 2023 thecompany became the first to establish shore
power connection in Iceland with MS Maud.
HX Hurtigruten Expeditions continues topursue its position as the sustainability
leader in expedition cruising and since 2022
the company has reduced scope 1 emissions
by 18% and reduced waste per guest of
more than 30%.

Scientific and research programs
HX Hurtigruten Expeditions offers an
outstanding scientific program in the
expedition segment, 2023 being a record
year for our scientific and research

Out on an excursion with

programs. With more than 1 880 cruisenights donated, supporting over 30 projects
and facilitating in excess of 8 000 citizen
science data submissions HX Hurtigruten
Expeditions is consistently increasing
the positive impact of the sailings andbroadening its guest experience through the
Science and E­ ducation programme.

Unique destinations worldwide
The 2022/23 Antarctica season marked the20th anniversary for Antarctic explorationfor HX Hurtigruten Expeditions and its mostsuccessful Antarctic season to date. Additionally, the offering in the Arctic continues
to go from strength to strength, we haveincreased capacity in the Galapagos, andsnowshoes in Loen, Norway.
Photo: Tommy SimonsenA message from the CEO
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we have learned from the first season inWest Africa.
HX Hurtigruten Expeditions continues apathway for global growth. This includes
streamlining the organization, with further
emphasis on London as the main hub for
HX Hurtigruten Expeditions and Hamburg
for operations, alongside other locations
for support functions.

A strong foundation
Looking forward, 2023 has created thestrongest possible foundation for HX­Hurtigruten Expeditions and is well
positioned for 2024 with the launch of thehighly competitive all-inclusive adventuresoffer, in addition to deepening of the guest
experience, broadening the choice of activities and remaining focused on innovationsin the expedition offering.

The Galapagos is one of theworld's best-preserved archipelagos
and offers a rich wildlife.
Photo: Andres Mesias

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 14

A message from the CEO
About the Group
Hurtigruten Group

Milestones 2023

Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors

Science and Education Programme
HX Hurtigruten Expeditions' Science and
Education programme donating more than1880 cruise nights, supporting over 30
projects and facilitating in excess of 8 000
citizen science data submissions.

Financial Statements

A meeting of hybrid sister-ships

ESG Appendices

The world's two first battery-hybrid cruise
ships – MS Fridtjof Nansen and MS Roald
Amundsen – met for the first time in the
Northwest Passage
Photo: Hurtigruten

Shore Power Connection
Photo: Espen Mills

HX Hurtigruten Expeditions becomes first cruise company toestablish shore power connection in Iceland
Photo: Hurtigruten

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 15

A message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
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2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 16

Hurtigruten Destinations' main
operations are through Hurtigruten Svalbard which operates
the Radisson Blu Polar Hotel,
Funken Lodge and the Coal
Miners' ­Cabins, as well as arctic
adventure tourism on Svalbard.
The archipelago of Svalbard is thenorthernmost settlement in theworld and one of the most remoteand unique destinations in theworld.

Svalbard
Photo: ShutterstockA message from the CEO
About the Group
Hurtigruten Group

Highlights 2023

Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors
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Total Revenues

34.0
235 employees
mill
eURO

71 612 guest nights

ESG Appendices

From a base in Longyearbyen, Hurtigruten
Destinations offers active arctic experienceson snow-covered and snow-free terrain
with an extensive portfolio of activities andexcursions. These include day trips on skis,
dog sledding, snowmobile trips, boat or
hiking excursions and longer expeditions in
the archipelago. Hurtigruten Destinations'operations – originating back in 1896 – arethe largest and most diversified on Svalbard.

Top modern hotel experience
Over the period 2017–2020 Hurtigruten
Destinations invested heavily in the
product and the hotels. In February 2018,
Funken Lodge was re-opened with 88
brand-new rooms, new bar and lounge
areas, a new reception and a refurbishedFunktionærmessen gourmet restaurant. In
February 2019 the Radisson Blu opened
after a full refurbishment of the publicareas including a new restaurant and pub
concept, and in January 2020 the new wingwith 33 new superior rooms was opened forcustomers.

Lease agreement with SNSK
“Being situated at the northernmost
city in the world and close to thewildlife, we see the impact of climatechange first-hand. Our powerful
yet fragile home gives us a unique
opportunity to inspire people andharness the power of nature.”2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 17

Ingeborg Flønes, CEO
Hurtigruten Destinations

In March 2021 Hurtigruten Group enteredinto an agreement with Store Norske
Spitsbergen Kullkompani AS (“SNSK”) tosell the real-estate portfolio. At closing of
the transaction Hurtigruten Svalbard AS
entered into a 30-year lease agreement withSNSK for the real estate and will continue
to operate them and further develop the
product offering on Svalbard. In 2022 theoperating company of Huset was acquired.

Experience the fantastic wilderness of
Svalbard at Hurtigruten Svalbard's Camp Barentz.

With Huset's spacious building, Hurtigruten
Svalbard gains an ideal venue for hostinglarger groups, meetings and gatherings aswell as a fine dining restaurant.

MS Nordstjernen – 80 degrees northIn 2023, Hurtigruten Svalbard hasembarked on an exciting venture with theintroduction of MS Nordstjernen cruises,
charting a course from Longyearbyen to theremarkable 80 degrees north. This addition
has proven to be a splendid enhancement
to the already impressive array of offerings
by Hurtigruten Svalbard, enriching the
expedition experience for travelers seeking
unparalleled adventures in the Arctic. Moreover, in a dedication to ensuring excellence
for both the guests and the local communityof Longyearbyen, Hurtigruten Svalbard has

Photo: Arild Danielsen

meticulously curated a bakery that not only
serves delectable treats but also upholds
the highest standards of quality.

Initiative for a lower footprint
Hurtigruten Svalbard has implemented aseries of green initiatives that underscorethe company's responsibility to the environment. This includes the installation of solar
panels atop the Radisson's roof, a significant
step towards harnessing renewable energy
sources and reducing the carbon footprint
by incorporation of two hybrid boats, as wellas eco-friendly modes of transportationsuch as electric snowmobiles and e-bikes.

A message from the CEO
About the Group
Hurtigruten Group

Milestones 2023

Hurtigruten
HX Hurtigruten Expeditions

installation of solar panels

Hurtigruten Destinations
Hurtigruten Foundation

ESG Reporting
Report of the Boardof Directors

The installation of solar panels atop theRadisson's roof is a significant step towards
harnessing renewable energy sources andreducing our carbon footprint.

From Longyearbyen to 80 degrees northIntroduction of MS Nordstjernen cruises,
charting a course from Longyearbyen to theremarkable 80 degrees north.

Photo: Hurtigruten

Photo: Halvor Mykleby

Financial Statements
ESG Appendices

reduced footprint
Expanding our more environmentally friendly offers, which reduce
our footprint, including two
hybrid boats, as well as electricsnowmobiles and e-bikes.
Photo: Hurtigruten

2023
ANNUAL & ESG REPORT
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PAGE 18

A message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

Hurtigruten
Foundation

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ESG Appendices

Hurtigruten Foundation is a­non-profit foundation founded by
the Hurtigruten Group in 2015. It
was established as a cooperative
venture with our guests to create
a positive impact on the ocean,wildlife and local communities.
The Hurtigruten Group covers
the administrative costs of the­Foundation so that all the donations go directly to the projects
and organizations the foundation
supports.
The rescue dogs in Svalbard
are an important partner for the2023
ANNUAL & ESG REPORT
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PAGE 19

Hurtigruten Foundation.
Photo: Hurtigruten

A message from the CEO
About the Group
Hurtigruten Group
Hurtigruten
HX Hurtigruten Expeditions
Hurtigruten Destinations
Hurtigruten Foundation

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Financial Statements

Highlights 2023

140ew
12 nprojects
supporting
25 partners
100% dtoirectly
projects
ongoing
projects

ESG Appendices“We are delighted that our guests are
so eager to give back to the uniqueplaces they have visited, resulting inrecord donations to the Hurtigruten
Foundation. It makes a real difference
to the local communities we support.”
Henrik Lunde, Managing Director
2023
ANNUAL & ESG REPORT
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PAGE 20

Hurtigruten Foundation

As a Group and as a Foundation, we care,and we want to make sure that every
place we operate is a little bit better off
because we are there. Since the foundation
was launched, it has supported over 150
projects in 23 countries, creating a positive
impact for more than 250 000 people from
Svalbard in the high north to Antarctica inthe south and everywhere in between.

Record-breaking contribution fromthe guests
In the foundation we focus on preserving
endangered wildlife, battling plastic waste
and marine litter and supporting local
communities in the areas where we operate.
A few highlights that our grants havecontributed to are the protection over 1 000
sea turtle nests from poachers on Boa Vista,
restoring an area of more than 2 000 m2 ofkelp forest in Northern Norway, collecting
more than 10 tons of plastic waste andmarine litter on Svalbard, releasing almost
4 000 endangered hawksbill sea turtle
hatchlings in Panama, creating a reserve forthe critically endangered Galapagos Petrel,scientific research measuring the impacts ofclimate change on Antarctic baleen whales,
and the construction of the North Cape
Steps in Honningsvåg.

Beach cleaning at Kap Bruun,

As a result, our guests have truly embraced
the work and impact of the foundation,
donating over EUR 830 000 to the foundation through various fundraising initiatives
in 2023. That is an increase in donationsof 127% compared to 2022, which allowed
us to support 71 projects in 16 different
countries in 2023, more than twice as many
projects as in 2022.

Svalbard, Norway.
Photo: Stefan Dall

A message from the CEO
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Emissions
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2023

Community
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ANNUAL & ESG REPORT
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PAGE 21

Experience whales
in fantastic Antarctica.
Photo: Karsten Bidstrup

A message from the CEO
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ANNUAL & ESG REPORT
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PAGE 22OUR APPROACH TO ESG
As a company operating in the travel sector,
we go to many parts of our planet, both nearand far. This gives us a front row seat whenit comes to seeing the urgency of protecting
its most fragile regions. It is why we haveadopted the highest ESG standards andaim to be transparent in all that we do. We
are proud to say that our company was lastyear given the highest ESG ranking of any
cruise company by the sustainability ratings
agency Morningstar Sustainalytics.
ESG principles guide us across all areasof our operations and throughout ourvalue chain, creating benefits for guests,
employees and wider stakeholders. We havechosen to focus on four main pillars whenit comes to defining our material topics andreporting structure. At present, our ESG
strategy, data collecting, and targets are
executed at Group level. However, in linewith the ongoing separation of companies
within the Group this will in future be
carried out at the individual company level.

This is Hurtigruten Group's integrated ESG report. The
report has been prepared in accordance with the Global
Reporting Initiative (GRI) Standards. The GRI Standards
are the world's most widely used sustainability reporting
standard. The report presents the environmental, socialand governance (ESG) performance of Hurtigruten GroupOur four pillars are:Emissions: As we aim to minimise our
impact on the planet, we invest heavily in
reducing our emissions.
Nature: Using science and education
we protect the oceans, landscapes and thedelicate ecosystems to which we venture.
People: We celebrate differences andaim to be the most inclusive travel company
in the world.
Community: We aim to maximise ourpositive impact and create value for local
communities.
We are pushing for firmer global regulations
to ensure all travel operators abide by rules
designed to protect the special places
where we all operate. We were involvedin establishing the Association of Arctic
Expedition Cruise Operators (AECO) andchair the executive committees for both
AECO and the International Association of
Antarctica Tour Operators (IAATO). We arefor the 2023 financial year. In the ESG Appendix all performance data, materiality assessment and more is located.
For feedback, questions or comments on thisreport contact: Rikke Jørgensen, VP Sustainability,rikke.joergensen@hurtigruten.com

also a member of the UN Global Compact
Norway, meaning we collaborate with abroader group of stakeholders on issues
surrounding sustainable development,
and work with global research institutes
and universities as part of our Science &Education Program.
Concrete, science- and engineering-backed
solutions that have a tangible effect in
the real world are our preferred methods,
and we are investing heavily in technology
to reduce emissions in our fleet. By way
of example, we have committed to the
Science Based Targets initiative (SBTi),and our guiding belief is that transparency,
education and concrete action is the mosteffective strategy, which is why we took thedecision to not follow the path of carbon
offsetting. Instead of counterbalancing ouremissions by purchasing offsetting credits,
we believe the right approach is to focus
investments on driving in-sector emissions
reductions.

When we talk about­‘sustainability'
what do we mean?
For us, it is a belief that international travel can be a force forgood … when it is done right.
By building networks of local suppliers and rejecting mass tourism,
our global operations create value
for the communities and ecosystems we visit. We expand ourguests' horizons, creating ambassadors for nature and connecting
them with diverse cultures.
Our commitment to being the mostsustainable adventure travel company means defining metrics andtransparently reporting them – forexample in this report – to ensureinternal progress and inspire othersin our industry to follow suit.

A message from the CEO
About the GroupESG Reporting
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Emissions
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Targets &Ambitions
Our ESG targets are approved by the
Board of Directors, with the Executive
Management Team being responsiblefor implementing targets and strategy.
Targets relate to our material topics andrepresent the areas where we believe we
can make the biggest contribution. The
following table provides an overview of
our ESG targets.

Emissions

PeopleAs we aim to minimise our impact on theplanet, we invest heavily in reducing ouremissions.

We celebrate d­ ifferences and aim tobe the most inclusive travel company
in the world.

Net 0 emissions
Scope 1, 2 and 3 byor before 2050

Carbon ­neutral
Scope 1 o
­ perations
by 2040First zero e­ mission
ship sailing on the­Norwegian coastby 2030

Employee Net ­Promoter
Score above 30 by 2025

40% women in senior­leadership by 2026

0 marine casualties

35% female officers
by 2030

Lost time incident­frequency rate below
0.5 by 2030

Financial Statements
ESG Appendices

NatureCommunitY

Using science and education we protect
the oceans, landscapes and the delicate
ecosystems to which we venture.

We aim to maximise our ­positive impact
and create value for local communities.

100% reuse and recyclingof all waste streams by 2030

2023
ANNUAL & ESG REPORT
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PAGE 23

From 2024­

Maximise
the number of people­positively impacted­ aximiseM
the number of­endangered ­species­supported in the­communities we visitA message from the CEO
About the GroupESG Reporting
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Performance
Highlights
Here we present the 2023 ESG performance highlights for Hurtigruten Group.
The indicators are selected from ourPillars and should give a good pictureof our current status. You can find moredetails about each company in the Business Performance chapters, and there
is a full overview of ESG performancedata in the Appendices at the end of thisreport.

Emissions
12% reduced
Scope 1 emissions
per guest vs 2022
+1 ship runningon hybrid power,
now total of 5PeopleIncreased solar
capacity by 446%

40% women in seniorleadership shoreside

Cadets increased by 15%
to 154 across the group

49% reduction
NOx emissions
vs 202213% women in seniorleadership seaside

Health and Safety­training has been boosted

Financial Statements
ESG AppendicesWORLD'S BEST ESG RANKEDCRUISE COMPANY
In 2023 Hurtigruten Group received
best ESG ranking for a global cruiseline on ESG rating from Morningstar
Sustainalytics and only one with a“low ESG risk”. Read more here.

Nature12,8% reduction in
total waste produced
9.3% reduced water
consumption per­passenger

2023
ANNUAL & ESG REPORT
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PAGE 24More than 3 tonnes
marine litter cleaned
from beaches

CommunitY
More than 1 800
cruise nights donatedto researchers
51% reduction inedible food waste
per ­passenger­

57% spending fromlocal suppliers­

Record contributions
to the F­ oundation, with
EUR 830 682. 127%
increase on 2022.

­­The foundation­supported 71 projects
across 16 different­countries.

­

More than 100 000
local passengers­

46 000 tonnes of cargoon the Norwegian coastA message from the CEO
About the GroupMS Nordnorge in Hjørundfjorden,
Norway, one of the most beautiful

ESG Reporting
Introduction

fjords in the world.
Photo: Fabrice Milochau

EMISSIONS

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ANNUAL & ESG REPORT
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PAGE 25

Curbing greenhouse gas (GHG)
emissions is crucial in reducing
the extent of – and therefore theinevitable impacts of – global
warming. We know that the travelindustry has work to do reducing
its impact on the climate, so wehave set out ways we can makea real difference by focusing on
concrete, measurable solutions.

A message from the CEO
About the GroupESG Reporting
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13%
12%

CO2 Emissions per guest
Scope 1 measured as APCN
(available passenger cruise nights)

Emissions
NaturePeopleCommunity
Running a Responsible
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–13%

115

kg CO2
in 2023

Report of the Boardof Directors

c­ ompared
to 2022compared
to 2018

Solar panel installations in Svalbard

The fleet

139

5
13

solar
­panels
in 202217 400 kwh
2023
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PAGE 26

Why is this material?
By contributing to greenhouse gas emissions, we know we have a negative impact
on the climate. This in turn affects thedestinations we visit, and we have a duty toprotect what we value.

How is it managed?
We have set an overall target of being Net
Zero by 2050. This is governed by our Board
and Executive Management Team, and allparts of the organisation are working toenable us to reach this target.

What is our target?
Net Zero 1, 2 and 3 emissions by or
before 2050, and carbon neutral Scope 1
operations by 2040. Our first zero emission
ship will be sailing on the Norwegian coastby 2030.

Financial Statements
ESG Appendices

TOPIC GUIDE: EMissions

788

solar
­panels
in 202342 634 kwh

hybrid powered
cruise ships in 2023

of 14 Ships
with shore
power connectivity+1 inMS2023Kong Harald

32

Million euro
investment
in emission-reducing
upgrades on our fleet

How did we perform?
Scope emissions per guest* fell markedly
across the Group in 2023 compared
to 2022 and our baseline year 2018 as
efficiency measures and the deployment of
new technology took effect. For Hurtigruten,
we saw a fall of 9% in Scope 1 emissions
since 2022, while HX emissions have fallen
by 18% over the same period.
To review all our emissions data, please see
Appendix E* Calculated using Available Passenger Cruise Night dataA message from the CEO
About the Group

Progress in 2023

ESG Reporting

We recognise our ships and operations
contribute to global warming, so we haveset ambitious targets to reduce emissions.
We can already see that the measures wehave taken to meet our targets are having
an effect. Compared to 2022, our overall
GHG emissions that can be directly attributable to our operations – known as Scope 1
emissions – fell by 12% per guest (based on
available passenger cruise nights – APCN).
Compared to 2018 our absolute Scope 1CO2 emissions have been reduced by 4%.

Introduction
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PAGE 27

For Hurtigruten, Scope 1 emissions per
guest dropped by 9% in 2023 compared to
the year before, and by 10% compared with2018. The clear gains in CO2 emissions
reductions have been helped by the conversion to hybrid propulsion of an additional
ship within the fleet. There has also beena sharp reduction in NOx emissions due tothe installation of selective catalytic reduction (SCR) systems on seven ships, with a
49% fall in 2023 compared with 2022.
For HX, there was an 18% drop in Scope
1 emissions per passenger year-on-year,
which represents a 1.6% fall compared toour baseline year of 2018. These reductions
have occurred even though the number ofnautical miles increased by around 10%
between 2018 and 2023. The gains weremade possible by the ongoing optimisationof sailing routes, a focus on speed reduction,
improving the efficiency of hybrid powerpacks, and connecting to shore power on
Reykjavík sailings. NOx and SOx emissions
were both almost halved in absolute terms
since 2022.
Hurtigruten Svalbard saw a 145% increasein the amount of renewable energy generated as the investment of 650 new solar
panels took effect in 2023. In addition, four
new electric vans and one electric logistics
vehicle were added, boosting the ongoing
electrification of operations.

Key Initiatives & New Projects– 2023 Highlights
Hurtigruten's Sea Zero Project
A concept design for the world's mostenergy efficient zero-emissions cr uise ship
was launched by Hurtigruten in 2023, withthe aim of launching on the Norwegiancoastal route by 2030. Partnering with thescientific institute SINTEF, the pioneering
initiative is the most ambitious GreenTech
project in our history. Among many
cutting-edge advancements, the concept
vessel includes retractable wind and solar
sails, a large 60MWh battery bank, and AI
assisted manoeuvring. Learn more about
the Sea Zero project here.

HX emissions reduction initiatives
Cutting emissions from our ships has beena key focus for HX in 2023. Fuel economy
has been improved year-on-year, and byRenderings presented in June 2023

optimising routes and cutting sailing speeds
greater efficiencies have been achieved.
Furthermore, increased use of the diesel
additive AdBlue when sailing in certain
areas has significantly reduced nitrogenoxide emissions. Concrete results include
a 51% cut in NOx and a 47% cut in SOx
emissions.

Additional hybrid vessel for­Hurtigruten
Hurtigruten's coastal vessel MS Kong
Harald received a green upgrade in 2023,
with the installation of a hybrid propulsion
system. Along with large battery packs andnew engines, this means the ship's CO2of the Hurtigrutens Sea Zero project.
Photo: VARD Design (René Bjerregaard)

A message from the CEO
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Emissions
NaturePeopleemissions will be substantially reduced. The
vessel was also equipped with a Selective
Catalytic Reduction system (SCR), reducing
NOx emissions by more than 80%. With
MS Kong Harald's refit, this brings the total
number of hybrid ships within the fleet at
Group-level to five. The refit was financedby the company's Green Bond issued theprevious year.

HX shore power in Iceland
In September 2023, HX became the firstcruise company to establish a shore power
connection in Iceland. MS Maud connectedto Iceland's national grid at Faxagardur
terminal in Reykjavík, plugging into thecountry's 85% renewable-generated energy.
Shore power connections allow for a reduction in the use of diesel, and contribute toimproving local air quality, while reducing
CO2 emissions. The connection marks
the Group's first international shoresideconnection.

Solar power investments in Svalbard
During the summer season in 2023,
Hurtigruten Svalbard was instrumental inmounting 650 solar panels on the roof ofCommunity

the Radisson Blu hotel and Polarsenteret inLongyearbyen. These solar panels will produce approximately 140 000 kWh of clean
electricity in addition to the four solar installations already established by Hurtigruten
Svalbard which produce 43 000 kWh. For
Hurtigruten Svalbard, this will mean almost
8% of total energy consumption.

More electric vehicles for­Hurtigruten Svalbard
Hurtigruten Svalbard has acquired anelectric-powered Mercedes e-sprinter van
for logistics use between businesses in the
Longyearbyen area. This replaces similar
diesel vehicles which had been used in thepast and is charged using solar power fromthe cells installed on the Polarsenteret. In
addition, four electric minibuses are used
for guest transportation, and these arecharged using a combination of solar andwind power.

Running a Responsible
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Report of the Boardof Directors
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ESG Appendices

Shore power in Reykjavík

2023
ANNUAL & ESG REPORT
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PAGE 28

In September 2023, HX became the firstcruise company to establish a shore power
connection in Iceland when MS Maudconnected to Iceland's national grid at
Faxagardur terminal in Reykjavík.
Photo: Eivind SennesetA message from the CEO
About the GroupPuffins can be seen in
Iceland from early April until

ESG Reporting
Introductionlate August, Grimsey, Iceland.
Photo: Camille Seaman

NATURE

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ANNUAL & ESG REPORT
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PAGE 29

Each of our actions has some
impact on the natural world.
We must tip the balance infavour of those actions that
promote healthy ecosystems
and lessen the burden we allplace on nature.

A message from the CEO
About the Group

TOPIC GUIDE: NATURE

Record year for HX Science Programme

Why is this material?

ESG Reporting
Introduction
Emissions
NaturePeopleCommunity

1 887

cruise nights
donated toresearchers+101%

Tourism puts pressure on natural resources
and the ecosystems we rely on. We arecommitted to playing our part to protect theenvironment, reduce waste, and help to stop
marine pollution.

compared
to 2022

How is it managed?

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Waste and water use reduction

13%
9%
>2

Food waste down

drop in total waste ­produced
across group

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 30+43%

169 gperinrams2023guest

What is our target?
By 2030 we aim to reuse or recycle 100%of the waste we produce on board our ships
and in our land-based operations.

How did we perform?

reduced Water use
per ­passenger (APCN)

million liters of water
saved through our
Green stay p­ rogramme51%

drop in edible
food waste
per guest

Our impact on nature is not an area handled
by an individual within the company. All
parts of the organisation are responsiblefor- and are involved in- starting and driving
projects that enable us to increase ourpositive impact. Policies and guidelines set
out clear paths for how we work to ensure
we minimise our impact on nature.

More marine litter collected
from
2022

>3

metric tonnes of waste
removed from beaches

+38%

from
2022

2023 saw the implementation of new systems for measuring the waste we produce,
as well as ongoing initiatives for reducing
our impact. These yielded positive results,
with a notable reduction in overall waste,
food and freshwater bunkered.
To review all our nature data please see
Appendix E.

A message from the CEO
About the Group

progress in 2023

ESG Reporting

It is the nature of the tourism sector that
wherever tourists go there will be some
impact on the environment. Our focus is,and has always been, on maximising theactions we do in support of nature andminimising those which do harm to nature.
We believe that – done right – travel can andshould be a force for good.

Introduction
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ESG AppendicesTravel that steers clear of mass tourism
has the potential to yield many benefits.
As adventurers, we strive to ensure ourguests gain a deep appreciation of theplaces they visit, and that they return homeas passionate advocates of environmental
protection. Not only do we facilitate theiradventures, we also provide knowledge andhelp connect them with new cultures andways of living.

Science initiatives

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PAGE 31

One way we do this is through ourscience and guest learning initiatives,
which includes HX's Science & Education
Program. As part of this, guests on board
HX ships can take part in supported Citizen
Science projects, such as photographingwhales for the Happywhale conservation
database or helping botanic research byusing the iNaturalist app. The number ofdata submissions from guests engaged inthese projects rose by over 50% in 2023.
At the same time, the number of scientificcruise nights – which are the cabin nights
donated to international scientists­ onducting research – jumped by 101% tocreach a total of 1 887.

Green Stays and waste management
Meanwhile, our guests continued to show
their support for Green Stays. By foregoingroom cleaning, they contributed individually
to reducing their water, detergent andelectricity use by around 43% compared
to 2022, proving they are just as supportiveof our sustainability initiatives as we are.
Waste management is incredibly importantin adventure cruise travel from both anenvironmental and operational standpoint.
In 2023, HX cut edible food waste by 22%
per passenger while Hurtigruten achieveda notable 11% reduction from their alreadyextremely low base– bringing it down to 65
grams per guest. For the Group as a whole,
the total amount of all waste produced was
down almost 13% on the previous year – andwe aim to keep these figures moving in that
direction.

Science & Education

Collecting marine litter
We also contribute to reducing the
discarded waste of others by collecting
marine litter from beaches in the places
we sail. Led by onboard Expedition Teams,
we saw the total amount of waste removed
from beaches rise by 38% in 2023. Thistranslates to over three metric tonnesof – mostly plastic – waste being removed
from remote coastal ecosystems and safely
disposed of.

HX's Science & Education Program lets
guests on board HX ships take part insupported Citizen Science projects.
Photo: Espen MillsA message from the CEO
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Key Initiatives & New Projects– 2023 Highlights
Record year for the HX Science &Education Program
2023 saw HX make great strides with
its Science & Education Program. In thisprogramme, we support Citizen Science(guests collecting and reporting scientificdata), guest lectures with our Expedition
Teams on topics from climate change tothe great explorers, and guest scientists
from partner institutions carrying out
important research across many relevant
areas. Through a combination of onboard
lectures and educational activities, hostingof collaborating scientists form leading
research institutions and guest participationin numerous citizen science projects, HX
saw a participation rate jump. The numberof onboard Citizen Science projects rose
54% in 2023 compared with 2022 (from13 to 20), and over 50% more data wassubmitted to these programmes, aided byguests. Meanwhile, the number of scientificcollaboration cruise nights offered toresearchers from institutions such as the
University of Tasmania and the California
Ocean Alliance increased by more thandouble to 1887 nights.

Hurtigruten introduces sustainable
seaweed products

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PAGE 32

Sustainably sourced seaweed can be one of
the lowest environmental impact products.
There are extensive kelp forests along the
Norwegian coast which act as an important

carbon sink, and in 2023 Hurtigruten introduced a range of novel products using thisabundant and renewable resource. From
guest shampoo sets that use chemical-freesoap from the Lofoten Seaweed company
to “Blue Food” concepts that incorporate
seaweed into menus, Hurtigruten is also
partnering with Lyngen Seaweed to growsugar kelp for further inclusion in onboard
food offerings. By using sustainable
seaweed in this way, Hurtigruten is creating
value for local harvesting companies andcontributing to the long-term protection of
Norway's kelp forests.

Wastewater systems on all­Hurtigruten and HX ships
Across the fleet, advanced water plants
have been installed, transforming onboard
sewage into clean water that can be safely
discharged. After treatment only 2% solid
waste remains, which is landed ashore
and processed safely in environmental
waste facilities. Additionally, ballast
water – used for stabilisation at sea – istreated with ultraviolet light to neutralise
any microorganisms present and make itsafe for discharge. This method completely
eliminates both the need for the use ofchemicals in the process of purifying waterand the possibility of invasive species
transmission.

HX upcycles mooring ropes ininventive way
In an effort to reduce the environmental
impact of its operations, HX has partnered

lofoten seaweed by hurtigruten
There are extensive kelp forests along
the Norwegian coast and sustainably
sourced seaweed can be one of the lowest
environmental impact products. In 2023
Hurtigruten introduced a range of novel
products from Lofoten Seaweed.
Photo: Hurtigruten

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ESG Appendiceswith German upcycling firm Bracenet toprovide lanyards for guest and crew which
are made from used mooring ropes anddiscarded fishing nets removed during
beach cleans. Lanyards are used to attachessential cards and keys while on the ship,
and the use of recycled materials will also
initiate wider conversations about the
impact of discarded or lost fishing gear on
the environment.

HX hotel initiatives reduce onboardwaste
The impact of onboard consumables on
HX ships was in sharp focus during 2023,
with HX Hotel Operations – which covers
onboard operations relating to cabins andhospitality – running a number of initiatives
aimed at slashing waste. These included
launching initiatives aimed at reducing
the amount of paper used by both guests
and crew, as well as introducing reusable
packaging and containers for takeaway
food. Crew were trained in reducing foodwaste, and this learning was passed onto
guests. This strategy of waste reduction is acontinuous process and follows on from thepioneering ban on single use plastics on all
our ships in 2018.

Hurtigruten's Save Water campaign
Progress continued to be made on Hurtigruten's campaign to reduce the amountof fresh water used on its ships. The Save
2023
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PAGE 33

Water initiative aims to educate guests onwater usage, partly through the Green Stay
initiative. As a result, many guests reduced
the amount of water they used, and theaverage water consumption reduced by 8%
across all guests as a result.

Environmental management systems
Monitoring our impact on the environmentis fundamental to supporting our efforts to
reduce that impact. To ensure this is done inan accurate and thorough manner we havean environmental management system inplace that complies with the International
Safety Management (ISM) Code. Maritime
companies receive their Document of Compliance (DOC) after successfully completing
an audit. This evaluates the company's
adherence to the ISM Code, ensuring it
has effective safety management systems
in place for its vessels, demonstrating its
compliance with international maritime
safety regulations. This is checked byinternal and external annual audits. The
HX audit is carried out by DNV, while
Hurtigruten's audit was conducted by the
Norwegian Maritime Authority, with thelatest year covered being 2023. Additionally,
for waste handling, Hurtigruten has anationwide agreement with Retura. This
specialist company supplies waste handlingand recycling solutions; storing, sorting andrecycling all waste streams from vessels.

science sea day
HX scientist leads a citizen science session.
Showing guests how to log observations
and upload them to the iNaturalist app.
Photo: Tommy SimonsenA message from the CEO

PeopleAbout the GroupESG Reporting
Introduction
Emissions
NatureOur employees are at theheart of who we are. They
are the driving force behind
our business, the faces thatguests see on board ourships, and the advocatesfor our brand.

PeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

Expedition teammember in Antarctica.
Photo: Karste Bidstrup
2023
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HURTIGRUTEN GROUP AS
PAGE 34

A message from the CEO
About the Group

TOPIC GUIDE: People

employees

Why is this material?

ESG Reporting

People are at the heart of Hurtigruten Group. Our
employees deliver world-class travel experiences
for our guests. As a global employer plugged
into global supply chains, we have an important
responsibility to uphold human rights.

Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

TOTAL number of EMPLOYEES

3 534

62%

men

38%

Women

Employee Net Promoter Score over 30 by 2025,
40% of women in senior leadership by 2026, 35%
female officers by 2030, zero marine casualties
and a Lost Time Incident Frequency score below
0.5 by 2030.

Report of the Boardof Directors

How is it managed?

Financial Statements
ESG Appendices

What is our target?

68%
32%

of employees
are shipbasedof employees
are land
baseD

13%
40%

W omen in senior­officers/leadershiponboard71

nationalities

Our CEO has the overall responsibility for our
employees. All people and organisation topics aremanaged through the head of people and culture
in each company, who is the owner of policies,
guidelines and routines, and is tasked withensuring the job satisfaction and wellbeing of all
empl oyees.

How did we perform?

women in senior­leadership land
Average age

39

Investing in people was a prime focus in 2023,
with new surveys, performance reviews and safety
training. We are proud to see a growing percentage of females in shoreside senior leadership
positions, currently at our target of 40%.
To review all our people data, please see
Appendix E.

2023
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HURTIGRUTEN GROUP AS
PAGE 35

A message from the CEO
About the Group

Progress in 2023

ESG Reporting

People are at the heart of HurtigrutenGroup. Our employees deliver world-classtravel experiences for our guests, and asa global employer we have an important
responsibility to uphold human rights.
Within Hurtigruten Group we have over
3.5 thousand employees representing
71 different nationalities. They are the­cornerstone of our business and as such
we are committed to ensuring theiremployment is a fulfilling and rewarding
experience. Operating in the marine sector,
it is natural that the health and safety of
employees remains our foremost priority.

Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

2023
ANNUAL & ESG REPORT
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PAGE 36

People numbers
Of our people, 68% work at sea, and ofthese, 30% are female. In total, 38% of
our total workforce is female and 62% aremale – a ratio that has remained unchanged
since 2022 – and the average age is 39.
We are proud to report that the proportionof women in senior leadership roles iscurrently at target, and we are continuingalong a path towards an equal balance.
This is driven by an increase within both
Hurtigruten, HX and Hurtigruten Svalbard,
with the latter in particular seeing importantresults from dedicated work by the newCEO. Furthermore, we have recorded steadydevelopment in the sea-based gender
representation, as 30% of onboard crew
are women.

Our training programmes for sea-based
recruits remain popular and well respected
within the industry, with the total number ofmaritime apprentices and cadets reaching
154: 142 in Hurtigruten, 11 in HX and 1 in
Hurtigruten Destinations in Svalbard.

Collective barganing agreements
and parental leave
For individual employees, we can report
positive developments in the numbers covered by collective bargaining agreements
and parental leave. Additionally, in 2023, werecorded a lower number of sick leave days,
a positive trend that we aim to continue.
We are currently working on expanding thescope of countries of operation in which wemeasure sick leave.

Key Initiatives & New Projects–2023 Highlights
Health and Safety
Health and Safety is fundamental to asea-faring organisation operating in someof the most extreme environments onearth. The CEO in each company has theoverall responsibility for the safety in all ouroperations, and we are committed to theprevention of injury and illness for our seabased employees, as well as the continuous
improvement of our Health and Safety management systems and performance. HX and
Hurtigruten have externally audited safety
management systems in compliance with

People are at thethe ISM code. The latest external audits for
HX were in 2023, and for Hurtigruten in
2021. This covers operational guidelines to
employees on board and on shore, safety
training procedures, emergency preparedness programmes, and environmental
management systems as explained in the
Nature chapter. Our safety policies fostera safety culture built around stop work
authority and a no-blame attitude toward
reporting deficiencies, and these safety
policies cover all employees. Accidents andserious incidents are not tolerated – including serious personal injuries and the loss ofhuman life – and everyone's contributions
count toward the company target.

heart of all our operations.
Photo: Chelsea ClausA message from the CEO
About the GroupESG Reporting
Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG AppendicesIn 2023 HX launched a Global Safety
Excellence (GSE) initiative. Expedition
cruising can involve significant risks to crew
and guests, and this initiative is aimed at
identifying and preparing for those risks.
From being aware of trip hazards and safely
operating Zodiac boats, to ensuring shore
excursions are safe and monitoring geopolitical risk in the regions where we operate,
GSE is focused on analysing areas of risk
and mitigating them. The initiative features
lectures, training and presentations, andis aimed at maintaining a culture of safety
across all operations both at sea and on
shore.

• Performance Reviews. Another important development of the year was thelaunch of our new performance review
mechanism in Hurtigruten and HX. Thisis a tool to help us invest in human capitaldevelopment, giving our employees astructured way of giving and receiving
feedback, as well as setting targets forgoals and development.

Continued investment in our people

Tools for employee engagement

When people choose to work within
Hurtigruten Group, we want to make surethey continue to develop by investing inthem. Over the past year we have launchedseveral initiatives to invest in employee
engagement and development, including:

HX uses Employee Net Promoter score(eNPS) to measure the satisfaction of ouremployees. In 2023 the eNPS score for HX
employees remained broadly within thesame range, showing a slight drop from theprevious year. While we would like to haveseen this figure rise, we acknowledge thebroad organisational change that is taking
place may have had an impact. Hurtigruten
uses different metrics for measuring job
satisfaction in the form of Culture andPeople surveys (see above) which allow for
greater levels of feedback.

• HX Explorer Workshops. Almost 50% of
all HX employees have attended the HX
Explorer Workshops, in which the values,
spirit and history of the company arepresented, as well as learnings about our
products.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 37• Hurtigruten Culture Survey andextended People Survey. This is adetailed, annual employee survey used asa mechanism to get employee feedback
and understand satisfaction levels. 70%
responded to the 2023 survey, which isa great result. In addition, Hurtigruten
conducted a Culture Survey as a people
engagement mechanism to understandwhat the most material topics are for
employees.

Maritime apprentices at Hurtigrutenand HX
Investing in future generations to work for
us at sea is important to both Hurtigrutenand HX. There is a strong maritime apprenticeship programme at Hurtigruten, which

Fresh, locally sourced

trains people across a range of areas fromelectrical engineering to cheffing, and it is
one of the largest apprentice programmesin Norway. In 2023, 142 positions were
held, and we were proud to be awarded“Apprentice Company of the Year” by theeducation office in North of Norway. The
HX Cadet Programme has 11 recruits
coming from as far afield as Croatia and
New Zealand, training in operational areas
such as engines and advanced technology.
HX is recruiting for the 2024 intake, and in
the UK we are already a sought-after brandwith a high volume of queries.

ingredients are delivered directly
to the Hurtigruten ships when
they are in port.
Photo: René Bjerregaard

A message from the CEO
About the Group

Protecting Human Rights

ESG Reporting

Being a global employer comes with great
responsibility. With offices in nine different
countries and operations on multiple
continents, we acknowledge that we havea huge responsibility for the promotion andprotection of human rights regardless of
where we are. We want to provide leading
global working conditions to secure highemployee satisfaction. Our commitment
and framework for working with Human
Rights Due Diligence is presented in our
Human Rights Policy.

Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

2023
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PAGE 38

All employees working at sea in HX and
Hurtigruten are covered by union andshipowner negotiated wages and are covered by collective bargaining agreements.
We believe it is our duty to secure all ourworkers' rights, and that all seafarers shouldhave contracts with high standards that
secure their labour and human rights.
Within HX, the majority of our crew ishired through a third party. Nevertheless,we have a solid agreement to secure andprotect their labour and human rights. The
Collective Bargaining Agreement, whichcame into effect on January 1st 2022, is
set in place to secure the rights of all crew
working on our ships and prohibits all
discrimination and harassment based on
race, colour, sex, religion, political opinion,
national extraction or social origin. We areproud we have a high retention rate among
our expedition crew, and one of the positive

guest excursions
Our experienced expedition staff takeguests on excursions, contributing expertiseon the natural environments and history of
the places we visit.
Photo: STEFANDALL

A message from the CEO
About the GroupESG Reporting
Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendicesthings they have highlighted is an onboard
culture that emphasises open dialogue andtrust more than formal hierarchy.
In addition, we have pledged not to violate
any provisions contained within the following ILO conventions: 29, 87, 98, 100, 105,
111, 138, 182, 190 and the Maritime Labour
Convention. Norwegian crew members
are hired under the Norwegian Working
Environment Act as described below.
Our operations in Norway (Hurtigrutenand Hurtigruten Svalbard) fall under the
Norwegian Working Environment Act which
covers the working environment, working
hours and employment protection. The law
ensures all employees have rights to parental leave, protection against discriminationand several other labour rights.

Diversity and Inclusion (D&I)
Hurtigruten Group believes that an inclusive
workplace is fundamental in securing
the engagement and wellbeing of ouremployees. We aspire to be an employer of2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 39

choice for people from diverse backgrounds,
regardless of ethnicity, gender, religion,
sexual orientation, disability or age. Diversity
and Inclusion is a desired and positive partof the corporate culture, strengthening ourability to operate under varying conditions
and operating parameters as well as giving
our guests a unique experience. We aim toincrease diversity in all areas of our businessand have set clear ambitions for an inclusive
workplace.
There is a policy of zero tolerance for discrimination of employees within HurtigrutenGroup, and we continuously work with astructured improvement agenda to secure
the wellbeing of our workforce. In 2022
we implemented D&I policies, processes,
leadership training and continuous development as well as compliance related todiscrimination. This effort has been applied
to all aspects of the employee journey andsets clear requirements regarding how werecruit, develop, compensate, and present
career opportunities.

We want Diversity and Inclusion to become
an integral part of who we are and how
we work globally. Our global footprint isrepresented by employees from 71 different
nationalities.

Whistleblower policy and channel
To foster a culture of openness, wherereports of possible misconduct are dealt
with in a professional way, external software
allows employees to make an anonymous
report at any time of the day and week. A
channel is also available to external parties,
such as customers, partners, or others,
and as part of our business reviews an
account is produced on a quarterly basisthat includes any reported incidents. All
employees, hires and partners have theright and duty to report misconduct within
the company. We report on whistleblower
numbers in our internal quarterly business
reviews.
To visit our whistleblower channel,
click here.

A message from the CEO
About the GroupESG Reporting
Introduction

Community

Emissions
NatureLocal communities stand to
gain from travel and tourism
if it is done right. By fosteringstrong links with the places
we visit, and a mutual respect,
we can help empower people,
strengthen local economies andprotect the environment.

PeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

In small boats, guests get close
2023
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to nature and all that it can offer.
Photo: Andrea Klaussner

A message from the CEO
About the GroupESG Reporting
Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors

830 682

Why is this material?

EUR
donated tothe ­Foundation

We are privileged to access the uniquedestinations we visit, so it is our responsibility to have a positive impact on thecommunities that live there.

+127%

compared
to 2022PROJECTS
The foundation
has supported

Hurtigruten – Lifeline on the Norwegian coast

71

projects+137% compared
to 2022
16 different
countries

of freight
46 392 tonnes
transported
local
105 775 ­passengers

local suppliers

57%
2023
ANNUAL & ESG REPORT
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PAGE 41

What is our target?
To maximise the number of people
positively impacted and endangered species
supported.

How is it managed?

Financial Statements
ESG Appendices

TOPIC GUIDE: COMMUNITY

Record contribution from our guests
to support local communities

spending from local suppliersin the food & beverage category

Our impact on the communities we visit isvery important to us and it is deeply rooted
in all parts of the organisation. In addition,
the Hurtigruten Foundation works to ensure
the guests of tomorrow can enjoy the same
experiences as the guests of today.

How did we perform?
Our network of local food suppliers
continues to grow, with 71% of food andbeverage menu items being sourced locallyby Hurtigruten in 2023. Direct and holistic
engagement with local communities hasgone from strength to strength, and guests
have contributed a record amount toHurtigruten Foundation, with over 830 000
euros for local communities.
To review all our community data please
see Appendix E.

A message from the CEO
About the Group

Progress in 2023

ESG Reporting

Mass tourism is unsustainable and canbe destructive for local communities.
Our model demonstrates a better way
to travel, one that positively contributes
to the communities we visit and builds
long-term sustainable relationships. As acruise business, we empower local people
without exploitation. We do this by working
in partnership with them, supporting themsocially and adding value economically tocreate positive ripple effects that endure.

Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

Our community work is focused on two
main areas: local value creation and the
direct positive impact made by the operations of Hurtigruten, HX and Hurtigruten
Svalbard, including supporting projects incommunities with Hurtigruten Foundation.

Increasing local value creation via
our operations
We strive to support communities over thelong term by creating social and economic
value. Our choice of limited sized 500-passenger ships enables access to remotelocations without having a negative impact
on the destination by overwhelming it withpeople. At the same time our operations
are an important and sustainable source ofincome in otherwise small and/or isolated
communities.

2023
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PAGE 42

Additionally, we source food and beverages
locally, employ local guides and build
partnerships. By creating a local networkof food and beverage suppliers, we are able
to have a direct impact wherever we sail. In
Norway, we are a lifeline for many coastal
communities, delivering freight, transporting passengers and connecting regions.
In 2023, 80% of the food served on
Hurtigruten ships was sourced locally,and 46 000 tonnes of freight was shipped
within Norway using our vessels. We define‘local' as being produced in the same
country in which it is delivered on board.
With a long heritage of sailing the Norwegian coast, Hurtigruten continues to be an
important local recruiter in the region. Many
captains, crew members and apprentices
grew up watching Hurtigruten ships pass by
and have gone onto work for the company
in adulthood. Advocating for Norwegiansalaries and terms for ships sailing in
Norwegian waters is an important principle
for Hurtigruten.

Increasing our positive impact
through Hurtigruten Foundation
Hurtigruten Foundation is a collaboration
between Hurtigruten Group, guests,
partners and private donors, with an aim
to strengthen local communities, protect
endangered species, and back environmental initiatives. Last year was the most successful yet for the Foundation, with a record
830 000 euros raised from our guests. This
money is given to projects around the world,with 71 grants in 16 countries being issued
in 2023.

Greenland's next generation
Hurtigruten Foundation cemented its
investment in Greenland's next generation
by awarding grants to the Associationof Greenlandic Children, Sisimiut Youth
Center Nutaraq, and the Oxen Expedition
Engagement Network.
Photo: Camille SeamanA message from the CEO
About the GroupESG Reporting
Introduction
Emissions
NaturePeopleCommunity

Key Initiatives & New Projects– 2023 Highlights
Hurtigruten – a lifeline on the­Norwegian coast
Hurtigruten has been an integral part ofcoastal life for over 130 years. Operating
between 34 ports along the rugged coastline, our ships have been a lifeline for many
communities for well over a century. In

2023, Hurtigruten transported over 46 000
tonnes of goods and more than 105 000
local passengers along the coast, proving
the service is part of Norway's infrastructure
and offering a more sustainable alternative
to road transport.

Launch of the Svalbard Express
Marking 130 years of coastal sailing,
Hurtigruten in 2023 launched the Svalbard

Express. Connecting the mainland to theSvalbard Arctic Archipelago, this was a
return to service for the iconic route, which
had last been sailed in 1982. Far more thana celebration of maritime heritage, theSvalbard Express, and its sister service theNorth Cape Express, transports cargo andpassengers between these far-flung destinations, delivering local value, connecting
communities and providing jobs.

Running a Responsible
Business

Report of the Boardof Directors
Financial Statements

Record HX Green Stay translates
to more Hurtigruten Foundation
community grants
2023 saw an increase in the share of
guests opting to take part in the Green
Stay initiative. More than 1 in 4 passenger
nights on HX ships opted into green stay,which translated to record donations to
Hurtigruten Foundation thereby contributing to social and environmental projects
around the world. New projects supported
in 2023 included grants for Kommuneqarfik
Sermersook (Greenland) to refurbish
Ittoqqortoormiit Museum, Mariuxi Prieto
Pino (Ecuador) to supply needed uniforms
and supplies to two schools, and the Oxen
Expedition Engagement Network, whichhelps local Arctic communities engage withsustainable tourism.

ESG Appendiceslocal producers

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PAGE 43

Hurtigruten saw 80% of its onboard foodand beverages sourced from local producers
in peak season, and this included Norwegianbeers, ciders and spirits. 99% of local­beverage suppliers are family-owned.
Photo: Hurtigruten

A message from the CEO
About the Group

Investing in Greenland's next
generation

ESG Reporting

Hurtigruten Group continued to collaborate
on a number of projects and initiatives inGreenland. These include Hurtigruten's
partnering with Greenland's Arctic Umiaq
Line, providing a passenger service thatconnects remote coastal communities. HX,
meanwhile, hosted AECO and Visit Greenland representatives aboard MS Maud, andran a small-scale community feedback trial.
Lastly, Hurtigruten Foundation cemented its
investment in Greenland's next generation
by awarding grants to the Associationof Greenlandic Children, Sisimiut Youth
Center Nutaraq, and the Oxen Expedition
Engagement Network.

Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

Local food and beverages helping
local businesses
Across the Group, 2023 saw a concerted
push towards serving more locally sourced
food and beverages on board ships. Driven
by a strategy of offering unique experienceswith authentic local flavours for our guests,
an added plus is that local beverages also
have a smaller environmental footprint
and benefit the places where we sail.

­ urtigruten saw 71% of its onboard foodHand beverages sourced from local producers, and this included Norwegian beers,ciders and spirits. 99% of local beverage
suppliers are family-owned. Similarly, HX
has expanded its worldwide network of local
wine suppliers, with wines from Germany,
Argentina and Chile – selected for theirorganic certification – offered to guests.

Community engagementin West Africa
2023 marked our first sailing to West Africa,
primarily the Bissagos Islands in Guinea
Bissau. During 29 sailings we were welcomed into five different local communities,
procuring services for our guests such as
cultural performances and guiding. In one
village, Ampincha, Hurtigruten Foundation
supported the building of lodgings forschoolteachers. In two of the communities,
villagers set up interactive workshops
for guests, such as making palm oil andlearning musical instruments, which wereappreciated by all parties. This approachof constructive engagement is key to our
engagement strategy in West Africa andbeyond.

west africa
2023 marked HX's first sailings to West Africa– primarily the Bissagos Islands and Guinea
Bissau. Alongside these sailings, funds from the
Hurtigruten Foundation were deployed to build
accommodation for local school teachers.
Photo: Credit: Nature Picture Library / Alamy Stock Photo

2023
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PAGE 44

A message from the CEO
About the GroupESG Reporting
Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

Running a
Responsible
Business
Transparency and accountability are the cornerstones of our ESG reporting. We believe an important mechanism for pushing the industry in theright direction is to disclose ESG performance data and to be open about
what we need to improve. We also believe that strengthening our policies
and ESG governance are important stepping stones for building a robust
company where ESG runs through everything we do. We call it running a
responsible business.
MS Roald Amundsen is as pioneering as

2023
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PAGE 45

Hurtigruten Group's progressive andongoing split into divergent companies
has had no effect on our commitment
to protecting human rights, avoiding
malpractice relating to corruption exposure,or respecting the data of our employees,
customers and suppliers. In 2023, 35% of
employees conducted Code of Conduct
training – up from 6% the previous year. We
are continuing to implement robust staff

training programmes relating to codes ofconduct and GDPR, ensuring due diligence
checks are carried out on our value chain
and that our business is run responsibly.
We are proud to see a strong increase in theshare of local suppliers in the food and beverage category, with Hurtigruten sourcing
almost half of all supplies locally in 2023.
This is in line with our strategy of local value

creation and working closely with local
communities to ensure more sustainable
tourism for future generations.

the man it is named after, the state-of-the-art
ship features new and environmentally hybrid
technology that reduces fuel consumption andshows the world that hybrid propulsion on large

In 2023 Hurtigruten Expedition Cruises
AS accepted a fine of EUR 8 495 bySysselmesteren (Governor of Svalbard)
for conducting zodiac cruising in a bird
protection zone. This was a result of losing
situational awareness of the exclusion zone.

ships is possible.
Photo: Karsten Bidstrup

A message from the CEO
About the GroupESG Reporting
Introduction
Emissions
NaturePeopleCommunity
Running a Responsible
Business

Report of the Boardof Directors
Financial Statements
ESG Appendices

The fleet implemented a refresh for relevantcrew of established operating protocols.
In line with running a responsible business,
we have implemented a whistleblower
channel that is also available to external
parties, such as customers, partners, or others. We report on Whistleblower numbers in
our internal quarterly business reviews. To
visit our whistleblower channel, click here.

Corruption Risk Index

Key happenings and new projects
Best ESG ranking for a cruise­company in 2023
In 2023 Hurtigruten Group received recognition in the form of Best ESG ranking for a
Cruise Company from leading rating agency
Morningstar Sustainalytics. The rating
was a reflection of our ethos of putting
sustainability and governance front andcentre, just as much as it was the result ofa cross-­departmental effort to gather data,
set targets and formulate policies for action.
Our top ranking acts as a benchmark forsuccess, and we are committed to remaining focused on retaining the highest of
standards when it comes to ESG reporting.

Hurtigruten Svalbard earns environmental certification

2023
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PAGE 46

an important milestone in the company's
mission to deliver unique and high-quality
experiences. The certifications demonstratethat Hurtigruten Svalbard operates in a safeand predictable way, with focus on improvement measures that reduce the impact
on the environment. The certifications arealso forward-looking, ensuring continuous
quality improvement for the organisation's
processes and routines.

Hurtigruten Svalbard has been ISO certified
in accordance with the standards ISO
9001:2015 and ISO 14001:2015. This is

Operating globally naturally increases thelikelihood of encountering corrupt practices,and being aware of the risks of exposure
to corruption is part of our due diligenceprocedures. As such, we are monitoring
the Corruption Perceptions Index (CPI) for
changes in current itineraries and risks
for potential itineraries. Our group-wide
anti-corruption policy sets out the limits ofacceptable gifts and the ramifications forviolations of said policy. The policy can befound here: Report and Policies HurtigrutenGroup. This policy was successfully put into
practice for the launch of our West Africa
Itineraries, and we ensured that all officers
and crew were aware of and acted upon it
at all times.

Executive compensation frameworkand ESGWe have made the important decision
to include ESG in our compensation
framework for our executives. This decision
is a milestone for our company, reflecting

our owners' dedication to ESG and our
Executive Team's motivation. It is also an
important mechanism for securing thestrategic focus of our company regarding
ESG-related topics.

Procurement as a strategic enabler
for ESGWe believe procurement has a strategicrole to play in our ESG work. As a global
company, we can have an impact on local
businesses, and we can use our purchasing
rights to support environmental and social
development. In our 2021 ESG report we
communicated some key ambitions, and weare proud to have come a long way. We still
have work to do, but recent developments
are enabling us to progress in line with
our aims. These are, firstly, the adoptionof a digital contracting and procurement
analytics tool which allows systematic
follow-ups of our suppliers. Another useful
digital tool has been employed which helps
us estimate our Scope 3 emissions. And
finally, we have an updated Supplier Code of
Conduct covering environmental and social
requirements which works in connection
with our set of policies.

Proactive Human Rights Due­Diligence in the value chain
As a leading cruise company we recognise
our responsibility to ensure that ouroperations, both at sea and on land, respect
and promote human rights. From 2022
and into 2023 we have intensified ourwork with human rights due diligence inthe supply chain. We have established arisk-based framework for assessing the riskof human rights and decent working conditions breaches in our direct and indirect
operations. In 2023 our Board of Directors
approved a new governance structure forthis area of operations. In addition, we
launched a Human Rights Committee for
Hurtigruten and HX to monitor and oversee
the important work done by procurement.
To learn more about our work in the past
two years, please see our account of due
diligence here. By June 30th 2024 we will
publish our updated report covering thelatter part of 2023 and first part of 2024.

Data & Privacy
Guests and employees trust us with theirpersonal data, and we take our responsibility to protect it seriously. In January2022 we launched a revised mandatory
GDPR staff awareness training course.
We continue to actively push this course
to all employees which is reflected in thelarge increase in time spent on data privacy
training compared to 2021 and prior years.
At the end of 2023, 54% of employees hadcompleted the course, which is a doublingfrom the previous year. Of our land-side
employees, almost three quarters hadcompleted the training by end of 2023.
As we continue to promote this training,in particular to our sea-side organisation,
we expect this number to continue risingin 2024.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

report of theboard of directors

ESG Appendices

The destinations we visit are rich in wildlife
Photo: Bertolazzi-Monica, Getty Images

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 47

A message from the CEO
About the Group

Market development

ESG Reporting

Hurtigruten Group's consolidated
revenues mainly derive frominternational guests seeking
unique nature-based and active
experiences around the world. The
global cruise and travel industry
have substantial exposure tofluctuations in the world economy,
which also applies to HurtigrutenGroup.

Report of the Boardof Directors
Financial Statements
ESG Appendices

Hurtigruten Group experienced in 2023 asignificant growth compared to 2022 as thetravel industry was emerging from the pandemic. This growth is expected to continue
in 2024 supported by a strong booking
momentum. Hurtigruten Group is of theopinion that the demand trend will continue
to be strong driven by the attractiveness of
the remote and off the beaten track destinations, which is a trend that is increasing
globally, and which meets our offers well.
Even with the Russians invasion of Ukraine
continued to influence Europe the bookingsfor 2024 are strong.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 48

The Hurtigruten Group has carried out
several strategic measures in the splitof the companies Hurtigruten and HX
Hurtigruten Expeditions through 2023 toensure that they will better achieve theirgoals and develop in their unique direction
and offer. This will position the businessand shape them to continue its efforts tomake real, active and nature-based travel
products more easily accessible and build
sales channels better customized to theirproducts and customer segments. Clearly
differentiating their unique and authentic
product in the global cruise and tourism
market will be essential.
With a high focus on building out the B2B
collaboration, rebranding to more distinct
names and dedicated market departments
the Group are already experiencing resultsfrom these efforts through strong growthin brand recognition and future bookingsin UK, US and Australia which are markets
where the brands have historically had
lower relative market penetration comparedto the Nordics and Germany.
Underlying booking patterns for 2024
and beyond show that the underlying
travel industry trends continue to show
growth in demand for unique destinations
and an increasing interest in adventure
travel and expedition cruising. With
its strong history and clear positioning
Hurtigruten, HX ­Hurtigruten Expeditionsand Hurtigruten Destinations, is the leadingin this segment. With its strong focus onsustainability and the environment, Hurtigruten Group introduced in 2019 the world's
first hybrid expedition cruise ship, MS Roald
Amundsen, powered by hybrid battery
technology. Her sister ship, MS Fridtjof
Nansen, was delivered in the fourth quarter2019. In 2023, Hurtigruten finished theupgrade of the second of its battery-hybrid

power ships in the coastal fleet, continuingwith its third ship in 2024.

DigitalIn order to succeed with the­implementation of the Group's
growth strategy, Digital has
become an essential part of­Hurtigruten Group's businessmodel, across sales, marketingand operations in all business
units.

developed and is being rolled out in all
markets.
The Hurtigruten Guest App is rolled out on
all own-operated Expeditions vessels andmost of the Hurtigruten fleet, simplifying
the experience for both guests and crew
onboard the vessels. The app supports
guests with details about the ship and theirjourney, managing the daily schedule ofthe expeditions and providing self-service
opportunities for the guests.

Financial review
Consolidated statement of income

All our digital solutions are built based onmodern agile principles, with integrated
technical and business teams, automatedquality controls, frequent user testing andshort development cycles.
Through 2022, the development of a new
digital front-end platform was executedfor the Expeditions business. The platform
shows increased conversion and engagement. Rollout took place through 2022
and finished in Q1 2023. Through 2023,
the Group has finalized the rollout of athe new web solution for HX Hurtigruten
Expeditions, with enhanced self service
capabilities for our guests, as well as being
the focal point for the new HX brand.
A Hurtigruten website based on the same
technology architecture has also been

The Group's activity continued to increase
through 2023 as the global Covid-19
pandemic subsided. In June the entire
Hurtigruten fleet was back in operation andthere was a positive development in both
future bookings and travel patterns.
Operating revenue increased by 15% fromEUR 567.9 million in 2022 to EUR 655.6
million in 2023. The increase in revenue
is primarily driven by higher passenger
volume.
From the agreement with the Norwegian
Government through the Ministry of Transport and Communications, HurtigrutenGroup has received contractual revenuesof EUR 62.0 million in 2023 compared to
EUR 59.4 million in 2022. The increase isdue to a cost index adjustment for 2023 of

A message from the CEO
About the GroupESG Reporting
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ESG Appendices17.2%. The agreement applies to 7 ships on
the Bergen–Kirkenes route for the period
1 January 2021 through 31 December 2030.
Direct cost of goods and services increasedby 27.1% from EUR 136.9 million in 2022 to
EUR 174.0 million in 2023. The increase isrelated to the increase in passenger volume
combined with higher cost for flights,
hotel and transportation services that arepart of the pre- and post-cruise activities.
Total salaries and personnel costs were
EUR 191.8 million in 2023 which is 8.5%
up from EUR 176.8 million in 2022. Other
operating expenses decreased from EUR
305.7 million in 2022 to EUR 288.1 million
in 2023. The decrease in other operating
expenses is mainly driven by a reduction infuel expenses.
Depreciation, amortisation and impairment
expenses increased from EUR 73.4 million
in 2022 to EUR 74.7 million in 2023.
Net other gains were EUR 3.2 million in
2023, compared to a gain of EUR 7.7 million
in 2022. Whereof net foreign exchange gain
on balance sheet items was 2.7 million in
2023 while forward bunker fuel contracts
gain (net realised and unrealised) was EUR
0.4 million.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 49

The Group's operating loss was EUR 69.8
million in 2023 up from a loss of EUR 108.6
million in 2022, an improvement of EUR
38.7 million driven by increase in revenues.
The Group's net loss before taxes was EUR
284.1 million in 2023, an increase of EUR

64.3 million from the loss of EUR 219.8
million in 2022. This increase is due to anincrease in financial expenses. The increaseis driven by increased interest-bearing
liabilities, higher effective interest rate andaccelerated amortization of loans that were
re-financed in February 2024. Of the EUR
222.4 million in net financial expenses, EUR
63.8 million is payment-in-kind non-cash
interest related to subordinated debt andoperating facility provided by the ultimate
shareholders and the EUR 200 million
Notes Facility.

Consolidated statement of financial
position
Non-current assets were EUR 1 237.2
million on 31 December 2022, compared to
EUR 1 235.7 million at the start of the year.
The increase was mainly due to investmentsin the fleet.
Current asset amounted to EUR 179.7
million, compared to EUR 136.4 million lastyear. The net increase of EUR 43.4 million
was due to increase in trade and other current receivables of EUR 20.3 million as wellas an increase in cash and cash equivalentsof EUR 20.4 million.
Total non-current liabilities amounted to
EUR 1 664.2 million as of 31 December
2023, an increase of EUR 288.1 million from
EUR 1 376.0 million at year-end 2022. The
increase is mainly due to the completed
refinancing in April 2023 of the EUR 176.5
million June 2023 maturities and the 2-year
extension of the TLB and RCF, which wereto mature in 2025 and 2024 respectively.
Total shareholder funding increased with
EUR 182.5 million in 2023.

operating Revenue (Eur mill)Current liabilities for the Group ended
at EUR 612.7 million in 2023 compared
to EUR 557.9 million in 2022. The mainchange is a net increase in interest-bearing
debt classified as current.

600

The reported equity at 31 December 2023
was negative EUR 859.9 million comparedto negative EUR 561.9 million at year-end
2022. The change is due to the net loss in
2023. The equity ratio was negative 60.7%
at the end of 2023 compared to negative
41.0% at the end of 2022.
See note 30 for information about events
after the reporting period.

800

400

200

0

2020

2021

2022

2023

operating profit (Eur mill)
0Consolidated statement of cash flows
Available cash and cash equivalents inthe cash flow statement totaled EUR 50.3
million on 31 December 2023, compared
to EUR 30.0 million on 31 December 2022.
Restricted cash constituted EUR 2.4 million
in 2023 and EUR 2.7 million in 2021 of thetotal cash and cash equivalents.
The net cash inflow from operating activities
was EUR 21.6 million in 2023, compared to
net outflow of EUR 10.1 million in 2022. The
improvement in cash flow from operating
activities is explained by an improved
EBITDA in 2023 compared to 2022.

-50

-100

-150

-200

2020

2021

2022

2023

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG AppendicesNet cash used for investment activities in2023 was EUR 72.5 million, compared to
EUR 89.9 million in 2021. The decrease in
the outflow of EUR 17.3 million is caused
by lower capital expenditures from theongoing environmental ship upgrades inthe Hurtigruten fleet.
Net cash inflow from financing activities
was EUR 73.5 million compared to EUR 77.1
million in 2021. The net inflow in 2023 ismainly net proceeds from the new borrowings and shareholder loans.

Parent company financial statements
The parent company, Hurtigruten Group AS
reported a net loss of EUR 169.5 million in
2023 compared to a net loss of EUR 63.1
million in 2022. The increased loss was
mainly due to increased interest expenses
and loan expenses from interest-bearing
liabilities.
In the statement of financial position theparent company reported a net increasein cash and cash equivalents of EUR 18.0
million. Of which a net cash outflow of
EUR 14.9 million from operating activities,
outflow of EUR 184.4 million from investing
activities and an inflow of EUR 217.2 million
from financing activities. The outflow fromthe investing activities is explained by an
outflow to loans to subsidiaries, and the
inflow from the financing activities is mainly
explained by proceeds from new financing.
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 50

The equity ratio for the parent company
was negative 16.4% on 31 December 2023,

compared to negative 4.3% at 31 December
2022. The negative equity ratio for 2023
is mainly explained by the net loss of EUR
169.5 million for the year. The net loss forthe parent company is proposed to betransferred to uncovered loss in the equity.

Risk management
Hurtigruten Group is committed
to proactive and effective risk
management to mitigate adverse
effects on our operations andto identify and explore business
opportunities. Ultimately, risk management contributes to achieving
our short-term targets and longterm strategic objectives.
The Group has implemented an enterpriserisk framework with policies, guidelines andtools to facilitate risk management acrossthe organization. Our framework is inspiredby the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
ERM framework and the ISO 31000 risk
management guideline. The Group risk
management function is reporting to theChief Financial Officer. The Group CFO
function is responsible, in consultation with
the Group CEO, for conducting ongoingtactical risk management in line with theapproved strategy, including exposure
analyses and reporting. Hurtigruten Group

is currently in the process of separating its
two business areas Hurtigruten and HX
Hurtigruten Expeditions. As of 1 February
2024, the Group risk management functionis split in two. VP Legal & Risk Managementin HX is reporting to the CFO of HX while
VP Risk Management in Hurtigruten isreporting to VP Legal with a dotted line to
the CFO of Hurtigruten. The Board of Directors has approved the risk management
framework and periodically reviews thecompany's key risks.
The Group has defined overarching principles for risk management. Risk appetite
is broadly defined as the level of risk anentity deems acceptable in the pursuit ofoverall goals. The Group Leadership Teamin Hurtigruten Group has evaluated anddefined risk appetite across key operational,
strategic and financial dimensions, arriving
at a set of practical guidance statements
to regulate risk exposure. These risk
appetite statements provide guidance forstrategic initiatives, resource allocation anddecision-making within the company.

Net cash flow from operational
activities (Eur mill)
40
20
0
-20
-40
-60

2020

2021

2022

2023

2022

2023

Equity (Eur mill)
0

-250

-500

-750

Strategic risk
Hurtigruten Group's aims to be theundisputed global leader in sustainable,
inspirational adventure travel – a catalyst forchange towards a greener travel industry.
Our main strategic risks are risks that could
prevent us from achieving this ambition.
This may include regulatory and politicalrisk, sustainability risks, or other risks which
may impact our reputation, the demand for

-1000

2020

2021

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ESG Appendices

our services or our ability to deliver on our
key ambitions.

Regulatory and political risks
Due to our global footprint, HurtigrutenGroup is subject to complex laws and regulations in various jurisdictions, including
environmental, health and safety laws andregulations. Changes in current laws andregulations could lead to increased costs
or decreased revenue. Further, the costs ofcompliance associated with environmental
and safety regulations and changes tothese regulations could require significant
expenditures. Failure to comply with such
regulations could result in harm to people,
the environment or the Group's reputation,legal proceedings, material fines and penalties, or temporary or permanent suspensionof operations.

Reputational risk

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 51

The success of Hurtigruten Group depends
on our reputation and the continued
strength of our brand. A loss of reputation
may lead to decreased demand for our services. Delays or cancellation of our services
or re-routing of customers to other portsof call may adversely affect our reputationand customer loyalty. An incident involving
environmental contamination could also
harm Hurtigruten Group's reputation andbusiness. Allegations of improper payments
made to authorities at state-controlled
enterprises or others in the jurisdictions
we operate, whether or not substantiated,
could harm the Group's reputation. This
also includes funds that are received to or

donated from Hurtigruten Foundations. Anysuch allegation, were it to be substantiated,
may give rise to penalties, fines or contract
disputes, any of which could adversely
affect our business, financial condition
and results of operations.

Sustainability risk
Our industry primarily impacts climatechange through emissions from vessels,
especially CO2, SOx and NOx. In addition,other pollutants such as particulate matterand black carbon may contribute to global
warming. The effects of climate change on
wildlife habitats, especially in the Arctic
and Antarctic regions, pose a considerable
long-term risk to the environment. For
further details about our ESG risk exposure,please see the ESG section of this report.
Hurtigruten Group is also exposed tosustainability risk in the supply chain. In
the past few years, working conditions at
shipyards have received increased attention.
The Norwegian Transparency Act implemented in July 2022 requires companies tocarry out due diligence activities to identify
risks, negative consequences and ensure
they are operating responsibly, respecting
both human rights and decent working
conditions. The Group's account of due
diligence in accordance with the NorwegianTransparency Act is available on our
websites.

Operational risk
Hurtigruten Group is naturally exposed tooperational risk. This includes risks that
could impact our operations directly suchas the impact of severe weather conditions,major ship incidents, virus outbreak or
cyber-attack, but also risks associatedwith our administrative operations such as
incompliance with regulatory requirements,
breach of data privacy regulations or­inability to recruit and retain qualified
personnel.

Onboard health risk
Hurtigruten Group is exposed tohealth-related risks onboard our ships
such as outbreaks of norovirus, legionella
or other infectious deceases. Such incidents
may be caused by insufficient food safety,
or breach of preventive procedures fortesting and isolation of crew and guests.
In addition to illness among guests andcrew, ­consequences could also include
reputational damage, adverse financial
impact or disruption to our operations.

Cyber security risk
Cyber-crime is increasing globally, exposing
Hurtigruten Group to a range of threats tothe integrity, availability and confidentialityof our systems. Cyber risk may include
attempts to access information, ransomware attacks, installation of destructive
viruses, denial of service and other digital
security breaches. A major cyber-attack
could result in a broad range of impacts
including HSE events, operational
disruptions and leakage or loss of private
or business sensitive data.

Data privacy risk
Failure to comply with data privacy
laws could damage Hurtigruten Group's
customer relationships and increase risk oflitigation and potential fines. Data privacy
is subject to frequently changing rules andregulations not necessarily aligned between
the various jurisdictions and countries inwhich we operate. Evolving technologies,
such as AI, may also have implications onthese regulations and increase risk exposure. The Group's failure to adhere to or successfully implement processes in responseto changing regulatory requirements could
result in legal liability or impairment of
the Group's reputation in the marketplace,which could have material adverse effects
on the Group's business, financial robustness and results of operations.

Competence risk
Hurtigruten Group is dependent on its
key personnel. Inability to recruit or retain­qualified personnel both on sea and land
could adversely affect results of operations
and our ability to deliver on strategic ambitions. Navigating along the Norwegian coast
without using pilotage services requires a
Pilotage Exemption Certificate (PEC). Hurtigruten Group is dependent on recruiting
and retaining experienced crew with PEC
as well as other skilled personnel onboard
our ships. The Group is also dependenton skilled employees for running our hotel
operations on Svalbard and other support
functions of the landside organization.

A message from the CEO
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ESG Appendices

Supply and demand risk
Hurtigruten Group faces competition fromcruise companies as well as other holiday
alternatives. To compete effectively wedepend on our ability to anticipate future
market changes and trends, and to rapidly
react on such changes. Inability to meetcompetition from new and existing companies, or failure to react to market changes
or trends, may have adverse effects on ourbusiness, earnings and financial position.
As a consequence of our global presence,and the nature of our operations as a
cruise and adventure travel company,
Hurtigruten Group has been significantly
affected by the Covid-19 pandemic bycustomers cancelling or rescheduling theirbookings or by changes in travel regulations
leading to changes in or cancellation ofitineraries. We believe we are now at theend of the impact from Covid-19 on ourbusiness as restrictions have been lifted inmost ­countries and booking numbers are
increasing. However, the risk of new virus
mutations, infection waves and subsequent
travel restrictions cannot completely beruled out.

Financial and macroeconomic risk

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 52

Hurtigruten Group is exposed to a variety
of financial risks, including market risk (e.g.
fuel, currency, price, fair-value interest rate
and variable interest rate risks), tax risk,
credit risk, liquidity risk and refinancing risk.
Interest rate movements and the overall
condition of the credit market play a role in

Hurtigruten Group's ability to refinance its
debt obligations. It is an overarching goal
to increase predictability for our operations
and to minimize the impact of fluctuations
in macro conditions on our results andfinancial position. For further assessmentsof financial risks, see note 4 – Financial risk.
The risk of a continued cost-of-living crisis
remains for 2024. The World Economic
Forum highlights inflation and economic
downturn amongst their top 10 short-term
global risks. Continued high inflation,and thereby falling levels of real income
could reduce the demand for cruises andadventure travel. Although a “softer landing”
appears to be prevailing for now, the nearterm outlook remains highly uncertain. A
broad and sustained downturn in demand,
combined with interest rates remaining
at relatively high levels for a longer period
may impact both consumers and indebted
enterprises and could lead to a recession in
the global economy. The Russian invasion of
Ukraine in late February 2022 has brought
increased geopolitical risks to global markets and business operations. The conflict
has adversely affected global and regional
economic conditions and triggered volatility
in energy prices. Escalation of this conflictor other events and conditions around theworld may impact the ability or desire ofpeople to travel. Despite the impact on
global demand, there are indications that
Hurtigruten Group's customer base may beless adversely affected by a recession thanother segments of the population.

ENVIRONMENT

Organisation

Working toward a more sustainable
travel industry is a core value for
Hurtigruten.

For Hurtigruten Group 2023 hasbeen a year of significant organizational change. In June the Group
completed the landside reorganization of Hurtigruten and HX Hurtigruten Expeditions – across eachfunction and country – to be able toserve separate businesses.

Already in 2018 Hurtigruten Group was thefirst cruise company in the world to launchhybrid powered ships; MS Roald Amundsen
and MS Fridtjof Nansen. An on-going program is to convert 3 of 7 ships in the coastal
fleet to battery hybrid ships. This will cut
CO2 emissions by 25% and NOx emissions
by 80% which is one of the most ambitious
fleet upgrades in Europe. MS Richard With
and MS Kong Harald has been upgraded
and the third ship will be upgraded by early2025. Further, a large number of projects
and initiatives are in progress related toemission reductions, waste and water
treatment and nature preservation.
Hurtigruten Group's efforts are recognizedexternally. In 2023 Hurtigruten Group
received #1 ESG Ranking of a Cruise
Company from Morningstar ­Sustainalytics.
Hurtigruten Group is the only cruise
company to be awarded a Low ESG Risk
Rating. In Germany, we are #1 in NABUs
Cruise Ranking for 2023, Germany's oldest
environmental association.
With reference to the full ESG report frompage 21 which is an integrated part of thisAnnual report

Hurtigruten Destinations has already been
operating as an independent organization,with from 2023 being included as a unit
under Hurtigruten.
The drivers for the change of the Groupfunctions into the business Hurtigruten and
HX Hurtigruten Expeditions been improved
business efficiency, the need to be more
focused and prioritize more efficiently. By
evolving the organization, building on theseparation of the fleet, and removing Group
as a cross functional team and integratingthese roles into the businesses units theGroup were able to build capability inthe expedition space at the same time
as increasing the success and autonomyof the business in Norway by also having
them take supporting function roles inhouse, which increased their efficiency andevolving to two fully separate organizations,
Hurtigruten and HX Hurtigruten Expeditions.

A message from the CEO
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As of June 15th, the Group establisheda new HX Hurtigruten Expeditions
Executive Leadership team, basedout of HQ in London, to deliver on the
Hurtigruten Expedition strategy, and with
the Hurtigruten Executive Leadership Teambased out of HQ in Oslo, delivering on the
Hurtigruten strategy. At the same time thebusiness executed on the separation of theCommercial functions, across the majorityof our markets. Followed up by developing
a blueprint for the final steps of separationsof the organizations during the fall of 2023.
This separation enabled both organizations
to move forward at pace and operate as
independent businesses.
In December, the London based HQ relocated to new office at 210 Pentonville Road.
Over 100 employees are based out of thisnew facility with 10 000 sq ft of floorspace
optimized to provide a collaborative andflexible workspace.
For Hurtigruten Group the education ofseafarers is seen as a vital component ofbusiness continuity. Maintaining a strong
maritime community is important for our
global industry. As one of Norway's largest
maritime employers and apprenticeshipcompanies, Hurtigruten is proud to create
jobs and maritime competence for the
future. Our crew members in Hurtigruten
are mainly recruited from along the2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 53

Norwegian coast and the various ports at
which our ships call. Hurtigruten had 142
apprentices on its ships in 2023.
The HX Hurtigruten Expedition vessels MS
Fram, MS Fridtjof Nansen, MS Maud, MS
Spitsbergen, MS Roald Amundsen and MS
Otto Sverdrup offer trainee positions in their
expedition teams to newly qualified nature
guides from selected institutions. As a truly
global company with 71 nationalities, westrongly emphasize world class professional
expertise but also local knowledge in our
recruitment processes.
HX Hurtigruten Expedition operates acrewing model where agreements withthird party manning agencies ensure thatinternational crewing and operational
requirements are fulfilled. Through this,
Hurtigruten and HX Hurtigruten Expedition
contribute to maintaining local and regional
employment, a growing international
workforce combined with objectives suchas ensuring knowledge, local expertise, andflexible shift arrangements for its employees.

Directors and Officers Liability
Insurance
Directors and Officers Liability Insurance
Hurtigruten Group AS (through Silk Holdings S.a.r.l.) has purchased and maintains
a Directors and Officers Liability Insurance
on behalf of the members of the Board of

Directors and the CEO. The insurance also
covers managing directors and directors ofcontrolled subsidiaries. The insurance policy
is issued by reputable insurers with anappropriate rating.

Working environment
Being a global employer with
offices in 8 different countries andoperations on multiple continents
comes with great responsibility toensure human rights regardless of
where we operate.
Hurtigruten Group employs 3 534 persons
with 901 beeing persons via third party
partnership, representing 71 nationalities at
year-end 2023.
All employees working at sea are coveredby collective bargaining agreements andwe have prepared our internal processes tocomply with the Norwegian Transparency
Act to ensure that we protect the humanrights of all men and women working in our
entire value chain.
We work diligently to proactively reduce thetotal sick leave throughout the organization.
Our rolling turnover numbers for 2023 is

5%, which is a reduction since last year.
Overall Group level total sick leave ended
on 7,5% (only Norway) at the end of 2023.
Hurtigruten Group will continue to work
diligently on retention and attraction
strategies to maintain our position as apreferred employer. We already see great
results from the ongoing initiatives on
Diversity & Inclusion and our new Employer
Value Proposition in both Norway andinternationally.
The Board of Directors considers the working environment in the Group to be goodand will continue to maintain a sharp focus
on working conditions and safety culture.
The Group executes quarterly employee
surveys to monitor changes in employee
engagement. Employee engagement isfollowed up through structured processes
that is reflected in concrete actions in ourquarterly Objectives and Key Results on
both Group and Business unit level. In
Hurtigruten Group we believe in a flexible
workspace and have implemented a Group
Hybrid Office policy enabling employees
to continue to utilize the digital tools andopportunities that we learned to appreciateduring the pandemic. The increased use ofdigital tools for information and document
sharing has had a positive effect on theworking environment in the company.

A message from the CEO
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Going concern

ESG Reporting

As of 31 December 2023, theGroup had successfully returned tonormal operations bringing the fullfleet of vessels back online during
the first half of 2023.

Report of the Boardof Directors
Financial Statements
ESG Appendices

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 54In the opinion of the Board of Directors, theunderlying fair value of Hurtigruten Group’s
vessels and brands is significantly higher
than the book value and the recapitalizationtransaction completed in February 2024
has improved the fair value equity position
by a conversion of EUR 70 million and asubordination of loan of EUR 720 million(book equity as of 31 December 2023
amounted to EUR 859 million negative). As
of 31 December 2023, Hurtigruten Group
had an available free liquidity position of
EUR 48 million. On 23 February 2024,
the Company successfully implemented acomprehensive recapitalisation transaction
with its senior lenders, its shareholders,and senior unsecured note holders. Thistransaction support a positive movement inequity value of EUR 70 million via novationand equitization of select interest and debt
facilities. In addition, the outstanding loans
to parent entity, Hurtigruten Newco AS,
amounting to a total of EUR 720 million
will be subordinated to any other loans in
Hurtigruten Group. Therefore, the amountof EUR 720 million should also be included
as equity when determining the actual valueof group equity before future cash flow
potential is taken into consideration.
The recapitalisation transaction involved:
1. injection of liquidity of EUR 185 million(on a net basis) through a combinationof near-term interest waivers and a newsuper senior secured opco facility in a
principal amount of EUR 205 million,
part of which was used to repay in full
the interim financing provided to theCompany in a principal amount of EUR
74 million in December 2023;
2. restructuring of the Group’s existingsenior facilities into a new senior secured
opco facility of EUR 345 million (the“New Senior Facility”) and a new secured
PIK holdco facility of around EUR 670
million (the “New Holdco Facility”);
3. restructuring of the existing seniorunsecured bonds in a principal amountof EUR 50 million originally issued by
the Company such that these wereconverted into senior secured bonds
issued by Hurtigruten Newco AS, theparent company of the Company (the“Reinstated SUNs”). The repaymentof the Reinstated SUNs is subject to apayment waterfall such that 60% of theReinstated SUNs rank pari passu with
the New Holdco Facility and certain
other restructured shareholder facilities,
while the remaining 40% are subordinated to them; and4. shareholder facilities of about EUR 150
million were restructured, all of which aresubordinated to the New Senior Facility
and approximately EUR 55 million ofwhich are subordinated to the New
Holdco Facility and Reinstated SUNs.
The maturity profile of these facilities
was extended to provide additional
support for the business.
This recapitalisation transaction will enable
the Hurtigruten Group to implement
the separation of the business into our
expeditions business, which would have thelargest expeditions fleet in the world, andour prestigious Norwegian cruise business,and this separation is permitted under
the terms of the New Senior Facility, New
Holdco Facility and Reinstated SUNs.
As at the date of this report, the Group is
actively looking to refinance the EUR 300
million Explorer II bond which will mature in
February 2025. Current bond outstanding is
EUR 271 million as at April 2024 following
amortization which began in early 2024.
Based on the Group’s outlook and plans forthe next 12 months (in particular given thecompletion of the recapitalisation transaction outlined above), the Board of Directors,
on the assumption that the Group is able tosuccessfully refinance the EUR 300 million
Explorer II bond, have a reasonable expectation that the Group has adequate liquidity
for the 12-month period from the date ofthis report, and (ii) given the benefits of therecaptalisation transaction and the supportof its lenders and shareholders thereunder,
resources to continue operations for theforeseeable future. The Board of Directors
also believe there are strategic options
available, if required, to ensure the going
concern of the Hurtigruten Group in theforeseeable future.
As a result, and in accordance with the Norwegian Accounting Act, the Board of Directors confirms that the financial statements
have been prepared in accordance with thegoing concern assumption, and that it isappropriate to make this assumption.

OutlookAt the date of this report, thecompany and the broader cruiseindustry are facing fairly normal
operating conditions following
years of turmoil. Operationally, thepandemic is largely behind us, andthe industry have taken the necessary precautions related to Russia's
war of aggression on Ukraine.
The probability of a “soft landing” in the
global economy has greatly improved, andglobal inflation has come down significantly
over the past 18 months. This in turn have
led to improved consumer confidenceA message from the CEO
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2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 55

and a more positive outlook for the global
economy.

development reflecting the resurgence of
desire and demand for travel.

Nevertheless, there are factors that may
provide headwinds in 2024 and beyond.
Although energy costs have come down
since 2023, the current situation in the
Middle East may lead to further geopoliticalunrest and may trigger a jump in oil prices.
Across the world, there are also other geopolitical risks in both the western and theeastern hemisphere that my affect global
travel patterns and consumer spending
in the future. Climate change will also
continue to be a significant source of risk
for any travel company, both for regulations,taxations and fees, and the status of theecosystems where we operate. HurtigrutenGroup has taken several steps to mitigate
such risks, steps that has been recognizedby rating agencies. Still, climate change willcontinue to be on top of the global agenda
for many years and will unfortunately
continue to affect all global businesses
going forward.

The strong bookings for 2024 driven by thehigher yields across all business units, will
support a financial recovery.

As of 31.03.24 we had booked EUR
495 million for 2024 compared to EUR
470 million for 2023 as of 31.03.23 whichindicates a 5.2% increase. For 2025, we see
a further boost in bookings. As at 31.03.24
we had booked EUR 81.7 million for 2025
compared to EUR 64.6 million for 2024 as
at 31.03.23, which is a 26.5% increase. The
Board of Directors expects the financial
performance of the Company to continue toimprove supported by the strong booking

The Company emphasizes that the information included in this annual report contains
certain forward-looking statements that
address activities or developments that theCompany anticipates will or may occur inthe future. The statements are based onassumptions and estimates, and some ofthem are beyond the Company's control andtherefore subject to risks and uncertainties.

Oslo, 30 April 2024
The Board of Directors of
Hurtigruten Group AS

Trygve Hegnar /s
ChairmanPetter Anker Stordalen /s
Board member
Kennet Jarl Andersen /s
Board member
Daniel Skjeldam /s
CEO 023 was a transformative year for the Group2and with the successful completion of ourcomprehensive recapitalisation transaction, we
have significantly strengthened our balance sheet.
This positions us well to deliver on our strategic
objectives, which include dividing our operations
into Hurtigruten, our legendary business on the
Norwegian coast, and HX Hurtigruten Expeditions,
the world's largest specialist expeditions fleet, andI would like to extend my deepest gratitude to our
dedicated team, loyal customers, and steadfast
investors who continue to believe in and support
our journey.
Trygve Hegnar
ChairmanA message from the CEO
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Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesFinancial
Statements 2023
Penguins are one of
Antarctica's more iconic residents,
with around 12 million of themliving on this frozen continent.
Photo: David-Merron, Getty Images

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 56

A message from the CEO
About the GroupESG Reporting

Consolidated financial statements 2023
Statement of income

Report of the Boardof Directors(EUR 1 000)

note

Financial Statements

Operating revenue
Other operating income

Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

2023

2022

6

655 579567 908

6

-

8 610

Direct cost of goods and services
Salaries and personnel expenses
Depreciation, amortisation and impairment expenses
Other operating expenses
Net other gains/(losses)
Operating profit/(loss)

7(173 994)(136 919)

8, 9, 24

(191 797)(176 801)

14, 15, 16(74 716)(73 357)10(288 094)(305 679)

Financial income
Financial expenses
Net foreign exchange gains/(losses)
Net financial items

12

3 782

1 696

12

(222 401)(113 766)

Share of net income from associated companies
Net income before tax

17

Income taxes
Net income

13

Net income attributable to
Owners of the parent
Non-controlling interests

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 57

11

12

3 212

7 689

(69 810)(108 550)

2 014

152

(216 605)(111 918)

2 327

650

(284 088)(219 819)(14 316)

10 407(298 404)(209 412)(298 469)(209 414)

65

2

A message from the CEO
About the GroupCONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

ESG Reporting(EUR 1 000)

Report of the Boardof Directors

Net income

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 58

2023

2022

(298 404)(209 412)

303

351

303

351

25

(844)

25

(844)

Total comprehensive income(298 076)(209 905)

Total comprehensive income for the year attributable to
Owners of the parent
Non-controlling interests(298 141)(209 907)

65

2

Items that will not be reclassified to income statement
Remeasurement postemployment benefits, net of tax
Total
Items that may be reclassified to income statement
Currency translation differences, net of tax
Total

note

25

A message from the CEO
About the GroupCONSOLIDATED STATEMENT OF FINANCIAL POSITIONESG Reporting(EUR 1 000)

Report of the Boardof Directors

AssetsProperty, ship and equipment
Right-of-use assets
Intangible assets
Investments in associates
Deferred income tax asset
Investments in other companies
Other non-current financial assets
Total non-current assets

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Inventories
Trade receivables
Other current receivables
Prepayments
Current derivative financial instruments
Cash and cash equivalents
Total current assets

note

31.12.2023

31.12.2022

14

910 641900 462(EUR 1 000)

14, 1641 63643 96615257 822264 43917

23 81421 715

13

603

817

17

206

2 539

18

2 497

1 728

1 237 219

1 235 665

19

17 27118 18920

28 900

19 99520

45 66634 23220

36 85631 207

18

678

2 773

21

50 32729 958179 699

136 355

1 416 918

1 372 020

EquityShare capital
Additional paid-in capital
Other equity
Retained earnings
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Liabilities
Non-current interest-bearing liabilities
Non-current lease liabilities
Deferred income tax liabilities
Retirement benefit obligations
Provisions for other liabilities and charges
Other non-current liabilities
Total non-current liabilities
Trade and other payables
Deposits from customers
Current income tax liabilities
Current interest-bearing liabilities
Current lease liabilities
Provision for other liabilities and charges
Total current liabilities
Total equity and liabilities

Oslo, 30 April 2024
The Board of Directors of Hurtigruten Group AS

PAGE 59

Trygve Hegnar /s
Chairman

31.12.2023

31.12.2022

Equity and liabilities

Total assets

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

note

Petter Anker Stordalen /s
Board member

Kennet Jarl Andersen /s
Board member

Daniel Skjeldam /s
CEO

22

9

9

22

185 196

185 196

23, 18(4 495)(4 922)(1 040 743)

(742 175)(860 032)(561 892)

95

30(859 937)(561 861)

1 595 675

1 315 231

16

55 38958 79713

11 213

21

25

1 653

1 827

0

91

26

222

49

1 664 152

1 376 01526

151 584

131 0986

170 808

158 866

13

3 351

428

23

269 628

251 471

16

11 83211 992

26

5 500

4 012

612 703557 866

1 416 918

1 372 020

A message from the CEO
About the GroupCONSOLIDATED STATEMENT OF CHANGES IN EQUITYESG Reporting
Report of the Boardof Directors
Financial Statements

Attributable to owners of the parent(EUR 1 000)

1 January 2022

Other comprehensive income
31 December 2022

Parent company
financial statements

Net income

ESG Appendices

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 60

Other

Retained

to owners ofNon-­controlling

Share capital

paid-in capitalreserves

earnings

the parent

interests

Total Equity

9

185 196(5 397)(531 793)(351 985)

29(351 957)

2(209 412)

Net income

Consolidated
financial ­statements

Other comprehensive income
31 December 2023

Equity attributable

Additional

9

185 196(209 414)(209 414)

475

(968)

(493)

(4 922)(742 175)(561 892)

30(561 861)

65(298 404)

95(859 937)9

185 196(298 469)(298 469)

427

(99)

328

(4 495)(1 040 743)

(860 032)

(493)

328

A message from the CEO
About the GroupCONSOLIDATED STATEMENT OF CASH FLOWESG Reporting(EUR 1 000)

Report of the Boardof Directors

Cash flows from operating activities
Net income before tax
Income tax paid

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Adjustments for
Depreciation, amortisation and impairment losses
Other gains/(losses) net
Net foreign exchange gains/(losses)
Net gains/(losses) derivatives
Net financial expenses
Share of net income from associated companies
Difference between expensed pension and payments

note

13

14, 15, 16
11

12

Change in working capital
Inventories
Trade and other receivables
Trade and other payables
Change in deposits from customers and deferred
revenue
Change related to travel guarantees
Net cash inflow from operational activities
Cash flows from investing activities
Payments for property, ship and equipment
Payments for intangible assets
Proceeds from sale of tangible assets
Proceeds from sale of financial assets
Dividends received
Net cash (outflow) from investing activities

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 61

2023

2022

(284 087)(219 819)(864)(1 427)74 71673 357

(82)

5 268

(4 749)(2 686)2 097(2 774)218 619

112 083(2 327)

(650)

(478)

(623)

677

813

(24 187)(14 158)

34 41657 358

11 870(11 884)(4 008)(4 925)

21 612(10 068)14(73 661)(83 167)15(1 606)(6 807)

148

114

1 843

-

746

-

(72 529)(89 860)(EUR 1 000)

Cash flows from financing activities
Proceeds from borrowings
Proceeds from shareholder loan
Repayment of borrowings
Payment of principal portion of lease liabilities
Interest, placement fee and other financial
expenses paid
Net cash inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of
the financial year
Effects of exchange rate changes on cash andcash equivalents
Cash and cash equivalents at the end of year
Of which restricted cash

2023

2022

23

252 93075 00023

182 500

95 00023(241 026)(14 258)16(9 064)(9 711)(111 809)(68 917)73 53177 11422 614(22 814)29 95857 115note

12, 2321

21(2 245)(4 344)50 32729 958

2 362

2 785

A message from the CEO
About the Group

Notes to the consolidated financial statements

ESG Reporting

Note 1

General information...................................................................................................................... 63

Note 16

Leases................................................................................................................................................. 88

Note 2Basis of preparation and material accounting policies.................................................. 63

Note 17

Investments in associates.......................................................................................................... 90

Note 3

Critical accounting estimates and judgements................................................................ 64

Note 18

Financial instruments................................................................................................................... 91

Note 4

Financial risk management........................................................................................................ 66

Note 19

Inventories......................................................................................................................................... 95

Note 5

Segment information.................................................................................................................... 69

Note 20

Trade receivables, other receivables and prepayments................................................. 95

Note 6

Operating revenue and other income.................................................................................... 71

Note 21

Cash and cash equivalents........................................................................................................ 97

Note 7

Direct costs of goods and services......................................................................................... 74

Note 22

Share capital.................................................................................................................................... 97

Note 8

Salaries and personnel expenses............................................................................................ 74

Note 23

Interest-bearing liabilities........................................................................................................... 99

Note 9Management and auditors' remuneration........................................................................... 75

Note 24

Share-based payment................................................................................................................103

Note 10

Other operating expenses.......................................................................................................... 77

Note 25

Employee retirement benefit plans......................................................................................104

Note 11

Net other gains and losses......................................................................................................... 77

Note 26

Trade payables, other current liabilities and provisions ..............................................107

Note 12

Net financial items......................................................................................................................... 77

Note 27

Related party transactions.......................................................................................................108

Note 13

Income taxes.................................................................................................................................... 78

Note 28

Investment in subsidiaries........................................................................................................110

Note 14

Property, ship and equipment................................................................................................... 81

Note 29

Contingent liabilities and other commitments................................................................111

Note 15

Intangible assets............................................................................................................................. 84

Note 30

Subsequent events......................................................................................................................112

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 62

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Consolidated
financial ­statements
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Note 1
General Information
Hurtigruten Group (the Group) consists of Hurtigruten Group AS and its subsidiaries.
Hurtigruten Group AS is a limited company incorporated and domiciled in Norway.
Hurtigruten Group AS is a private company, but several of its bonds were listed on the
Oslo Stock Exchange as of 31 December 2023 and were thus publicly traded. The addressof the r­ egistered office and principal place of business is Langkaia 1, 0150 Oslo Norway.
The Group is ultimately owned 100% by Silk Topco AS, which is owned by TDR Capital (80.8%)
through a Luxembourg intermediate company, Strawberry Equities AS (11.55%), Periscopus AS(4.89%), and other minor investors (2.76%).
With a fleet of 15 custom-built cruise vessels Hurtigruten Group is the world's largest­expedition travel company focusing on sustainable expedition cruises for the global traveller.
The consolidated financial statements for 2023 were approved by the company's Boardof Directors on 29 April 2024.

solidated financial statements are denominated in EUR 1 000. The subtotals and the totals insome of the tables in the notes may not equal to the sum of the amounts shown in the primaryfinancial statements due to rounding. Certain amounts in the comparable years have been
reclassified to conform to current year presentation.

Consolidation
The consolidated financial statements include the accounts of Hurtigruten Group AS andits subsidiaries as well as Hurtigruten Group's interest in equity accounted investments. Allintercompany balances and transactions, including unrealised profits and losses arising from
Hurtigruten Group's internal transactions, have been eliminated.
Subsidiary undertakings are entities over which the Group has control. Control is defined as
the power to direct an entity's relevant activities, the ability to use that power to affect theentity's returns, and exposure to, or rights to, variable returns from involvement with the entity.
Subsidiary undertakings are fully consolidated from the date on which control is transferredto the Group until the date control ceases. The list of subsidiaries is included in the Financial
statements, note 28 Investment in subsidiaries.
Non-controlling interests are presented separately as part of the equity in the consolidatedbalance sheet.

Note 2Basis of preparation and material accounting policies
Basis of preparation
The consolidated financial statements of Hurtigruten Group AS and its subsidiaries are­prepared in accordance with the IFRS® Accounting Standards as adopted by the European
Union (EU) and additional requirements of the Norwegian Accounting Act (Regnskapsloven),
effective on 31 December 2023.
The consolidated financial statements have been prepared on a going concern basis under thehistorical cost convention, except for derivative financial instruments and other financial assets
measured at fair value. Accounting policies relating to specific areas of the financial statements
are shown in the corresponding note.
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 63

The presentation currency of Hurtigruten Group is Euro, which is the functional currency ofthe parent company Hurtigruten Group AS. Unless otherwise noted, all amounts in the con-

Foreign currency translation
The functional currency of each entity in the Group is determined by the economic environment in which it operates, and transactions included in the financial statements of each entity
are measured in that functional currency.
Transactions in foreign currencies are recorded using the currency exchange rate of thetransaction date.
Monetary assets or liabilities denominated in foreign currencies are translated into each entity'sfunctional currency using the closing rate at the end of the reporting period, and any gains(losses) are reported in the income statement. Non-monetary items measured at fair value aretranslated using the exchange rate at the measurement date.
Currency gains (losses) related to operating activities, i.e. receivables, payables, bank accounts
for operating purposes including current intragroup balances, are recognised as part of net
other gains/(losses).

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Currency effects recognised in finance income and expenses are only related to financing
activities such as loans, lease liabilities, long-term placements and dividends.

• Deferred Tax related to Assets and Liabilities arising from a Single Transaction –­amendments to IAS 12

For consolidation purposes, the financial statements of subsidiaries with a functional currency
other than Euro (EUR) are translated into EUR. Assets and liabilities, including investments
in associates, joint ventures and goodwill, are translated using the exchange rate as at thebalance sheet date.

The amendments listed above did not have any impact on the amounts recognised in priorperiods and are not expected to significantly affect the current or future periods.

Income, expenses and cash flows are translated using the average exchange rate for thereported period. Goodwill is recognised in the functional currency of the acquired business.
Translation adjustments are recognised in other comprehensive income and accumulated incurrency translation differences in other components of equity. On disposal of a subsidiary,
joint venture or associate, the cumulative translation adjustment of the disposed entity isrecognised in the income statement as part of the gain or loss on disposal.

Changes in accounting policies and disclosures
Hurtigruten Group has implemented the amendment to IAS 1 and Practice Statement 2 issued
by IASB. Under the amendment, companies are required to disclose their material accounting
information rather than their significant accounting policies.
The Group's disclosures focus on only those policies and policy choices that are considerednecessary to understand other material information.
The Group has also applied the following standards and amendments for the first time for its
annual reporting period commencing 1 January 2023:

PAGE 64• Amendments to IAS 1 – Classification of Liabilities as Current or Non-current and Amendments to IAS 1 – Non-current Liabilities with Covenants.
The Group has not adopted any optional new/amended accounting standards for the 31
December 2023 reporting period. These amendments are not expected to have a material
impact on the entity in the current or future reporting periods and on foreseeable futuretransactions.

Statement of cash flows
In the statement of cash flows, operating activities are presented using the indirect method
where profit/(loss) before taxes is adjusted for changes in working capital, the effects of noncash items, or effects from investing or financing activities. Interest paid and other financial
costs paid are reported as part of cash flow from financing. Dividends received from joint
ventures and associates are included in investing activities.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

New standards and interpretations not yet adopted• IFRS 17 Insurance Contracts• Definition of Accounting Estimates – amendments to IAS 8• International Tax Reform – Pillar Two Model Rules – amendments to IAS 12.

Note 3
Critical accounting estimates and judgements
The preparation of consolidated financial statements that comply with IFRS requires the use ofaccounting estimates which, by definition, will seldom equal the actual results. Management isrequired to exercise judgement in applying Hurtigruten Group's accounting policies. Management's assumptions and judgement can have a significant impact on the carrying amounts ofassets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on market conditions, historical data,
management's experience, and other relevant factors. Actual results may differ from estimates.
All estimates and related underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised if therevision affects only that period, or in the period of the revision and future periods if the revisionaffects both current and future periods.
The following represents a summary of the critical accounting judgements management has
made in the process of applying the Group's accounting policies.

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Estimated impairment of goodwill and trademark
The Group assesses goodwill and trademarks for impairment annually. The estimatedrecoverable amount is determined using the present value of budgeted cash flows for the
cash-generating units. These calculations require the use of estimates (refere to note 15 formore details) for the required rate of return for the period, cash flows and the growth factor of
the cash flows.
The Group does not apply a general growth factor beyond expected inflation for cash flows
when testing goodwill for impairment. The total required rate of return used to discount cash
flows is calculated as a weighted average return on equity and the required rate of return oninterest-bearing debt. This calculation utilises an estimate of the risk-free interest rate, risk
premium, industry beta and the liquidity premium. Refer to note 15 for more details.

Ships

The useful economic life of an asset determines the amount of annual depreciation. The
estimated useful life is based on the individual vessel's history and management s experience
with the Group's other vessels. The estimates are reviewed at regular intervals. A change in theestimate will affect depreciation in future periods.

The book value of the ships is reviewed for impairment annually or in cases where there areclear indicators of impairment, e.g. an incident at sea. Refer to note 14 for more details.

Environmental upgrade to the fleet
In 2018 the first hybrid powered ships MS Roald Amundsen and MS Fridtjof Nansen werelaunched. By the end of 2023 two ships in the coastal fleet were upgraded to hybrid power. The
third ship in this program will be upgraded by early 2025. The upgrades will cut CO2 emissions by 25% and NOx emissions by 80% which is one of the most ambitious fleet upgradesin Europe. Being in the forefront of the cruise industry with completing environmental
investments support the value of the fleet and confirms the commitment to a more sustainable
travel industry.

Deferred income tax assets

PAGE 65

Uncertain tax positions, legal proceedings, claims and regulatory enquiries
The Group may become party to legal proceedings, disputes or claims including regulatory
enquiries. These may be related to the Group's business, value added tax (VAT) filings, or tax
position, for instance. Any of these processes have uncertain outcomes. Management evaluates a variety of factors, including the likelihood of an unfavourable outcome and the ability tomake a reasonable estimate of the amount of loss.

Useful economic lifetime

Estimated impairment of ships

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

carry forwards against future taxable income in the Group. The assessment is made based on
management's estimates of future taxable profits in the Group and includes an assessmentof the Group's future strategy, economic developments in the markets in which the Group
operates and tax planning strategies. In preparing the financial statements, management has
found the future taxable income to be sufficient to utilise the recognised deferred income tax
assets. Please refer to note 13 for more information on deferred income tax assets recognisedin the balance sheet.

Deferred tax assets are recognised to the extent that it is probable that the tax assets will be
realised. Significant judgement is required to determine the amount that can be recognised.
The recognition of deferred income tax assets depends mainly on the utilisation of tax loss

Where a reasonable estimate can be made, management accrues for costs related to probableunfavourable outcomes and adds a financial statement disclosure for unfavourable outcomesthat are possible, but unlikely. Unanticipated events or changes in these factors may require
the Group to accrue for a matter that has not been previously accrued for because it was notconsidered probable, or a reasonable estimate could not be made or increase or decrease
an amount accrued for a matter in previous reporting periods. Details regarding ongoing tax
disputes are described in note 4 and 13.

LeasesWhen determining lease terms, the Group's management assesses extension options andtermination rights. Only if there is reasonable certainty that these rights will be used, does
the Group amend its lease accounting. Guidelines for this assessment have been set at Grouplevel to ensure consistency of assumptions across different markets. To estimate right-of-use
assets and liabilities, the Group uses the incremental borrowing rate (IBR) following a defined
methodology to determine the discount rate used for calculating the present value of the futurelease obligations. Refer to notes 14, 16 and 23 for more details.

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Note 4
Financial risk management
4.1 Financial risk factors
The Group's overarching risk management goal is to increase predictability for the Group's
operations and to minimise the impact of fluctuations in macro conditions on the Group's
results and financial position.

(EUR million)

The Group has defined overarching principles for risk management which encompass
guidelines for specific areas such as currency, interest rate, bunker price, credit risk and the useof financial derivatives. The Board of Directors approves the Group's risk management strategy
and reviews it annually as part of the budget process. The CFO is responsible, in consultation
with the CEO, for conducting ongoing tactical risk management in line with the approved
strategy, including exposure analyses and reporting.
The Group has exposure to the following risks from its use of financial instruments: market
risk (including currency, bunker price, interest rate risk), credit risk and liquidity risk.

Currency risk
The Group's presentation currency and main functional currency is EUR. However, the Group
operates internationally and is exposed to currency risk in multiple foreign currencies, inparticular USD, GBP, and NOK. Currency risk arises from revenues, operational and capital
expenditures as well as recognised assets and liabilities in foreign currency. The Group also
has some investments in foreign subsidiaries whose net assets are exposed to currencytranslation risk.
The Group seeks to minimise currency risk by matching foreign currency inflows with outflows.
The Group aims to achieve natural hedges where possible from contracts with suppliers. Thereis no financial hedging in place for any underlying cash flow in foreign currency, but foreign
currencies are exchanged regularly to minimize the currency risk exposure.
The table below shows the translation effects to the Group's consolidated net profit before
taxes and equity from simulated changes in the exchange rates against EUR (presentation
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 66

currency for the Group). The calculation assumes that the EUR depreciates by 5% against
the relevant currencies based on the exchange rates as of 31 December 2023. With a similarappreciation of the EUR, the impact would be opposite.

Change NOK/EUR 5%
Change USD/EUR 5%
Change GBP/EUR 5%
Change CAD/EUR 5%
Change CHF/EUR 5%
Change AUD/EUR 5%
Total impact

Impact on net profit/loss

Impact on equity

after tax 2023

2023

5.8

5.8

4.0

4.0

(1.4)

(1.4)

0.1

0.1

(0.7)

(0.7)

(1.1)

(1.1)

6.7

6.7

Price risk
In 2023 the Group's total bunker cost was EUR 76.7 million which is 11.7% of Group total
operating revenues, and the Group is therefore exposed to fluctuations in the price of bunker
fuel. To reduce the risk related to fluctuations in the fuel price the Group has implemented afuel hedging policy where the key principle is to obtain visibility on profit.
In January 2022 the Group entered derivative contracts to hedge a portion of the forecasted
total fuel consumption, for 2022 and 2023. In March 2023 the Group entered further derivative
contracts to hedge a portion of the forecasted total fuel consumption for the remainder of2023. Through 2023 the Group hedged approximately 45% of the forecasted fuel consumption.
The bunker derivatives are recognised as held for trading and are accounted for at fair value
through profit or loss in 2022. The different derivatives are presented as current assets or
liabilities to the extent they are expected to be settled within 12 months after the reporting
date. There were no active derivate contracts as of 31 December 2023.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesInterest rate risk
The Group's interest rate risk is primarily associated with current and non-current borrowings.
A portion of the Group's borrowings are subject to a variable interest rate which presents a risk
to the Group's overall cash flow. The Group is exposed to EURIBOR through its floating rate
EUR borrowings with a zero EURIBOR floor and exposed to NIBOR through its term loans in
NOK. The Group has no specific hedging strategy to reduce variable interest rate risk, but therisk is monitored and evaluated on a regular basis. The following table shows the split between
fixed interest borrowings and floating rate borrowings:(EUR 1 000)

Fixed interest rate
Bonds
Sale leaseback liabilities
Shareholder loan
Lease liabilities
Total
Floating interest rate
Term loans
Revolving credit facilities
Other borrowings
Accrued interest external financing
Total

The following table shows the impact on profit or loss and equity in 2023 of an interest rateincrease of 100bp, considering the zero-floor for EUR borrowings:(EUR million)

Change in interest rate level with+100 basis points – NOK loans

Impact on net profit/loss

Impact on

after tax 2023

equity 2023

0.0

0.0

Impact on net profit/loss

Impact on

after tax 2023

equity 2023

2023

2022

335 000

350 000

30 77175 009395 585

180 477

Credit Risk

119 142123 182

880 498

728 668946 133655 000

The Group has no significant concentration of credit risk. Sales to end users are settled in cash
or with recognised credit cards. Sales to external agents are made either through prepayment/
credit cards or through invoicing. The Group has processes in place that ensure that credit
is only extended to agents with a satisfactory credit rating. Individual risk exposure limits are
considered and set based on internal and external assessments of credit ratings.

-

85 000

3 119

6 452

74 468-

1 023 720

746 452

In the table above, prior year comparators comparators do not agree to the published 2022
financial statements as all values are now shown as nominal outstanding borrowings. This isbecause the financial risk is related to the amount of money owed. This has a particularly large
impact on lease liabilities shown.

(EUR million)

Change in interest rate level with+100 basis points – EUR loans

10.1

10.1

The Group uses measures like prepayment guarantees to reduce the credit risk on large capital
investments.
The counterparties to the derivative contracts and cash transactions are limited to financial
institutions with high credit ratings. The Group has procedures in place that limit exposure tocredit risk relating to individual financial institutions.

Liquidity risk
Liquidity risk management includes maintaining a sufficient level of liquid assets geared tooperational and investment plans and ensuring the availability of sufficient funding from committed credit facilities. The Group's finance function has overall responsibility for managing
the Group's liquidity risk. Rolling liquidity forecasts are prepared to ensure that the Group has
sufficient liquidity reserves to satisfy the Group's obligations and financial loan covenants.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 67

A message from the CEO
About the Group

4.2 Capital management

ESG Reporting

The Group's objective for management of capital is to ensure the ability to continue as a going
concern to grow the business, provide returns for shareholders and to maintain an optimal
capital structure to reduce the cost of capital, including compliance with covenants in the loan
agreements. In 2023 the Group started several capital management initiatives and secured
additional loan facilities to make sure that the Group is well funded and has enough liquidity
to continue as a going concern. See 4.1 in this note, note 23 Interest-bearing liabilities fordetails concerning amounts, terms, and conditions. See also note 29 Subsequent events for
information concerning the Group's refinancing in February 2024.

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

The maturity of the Group's liabilities is shown below.

(EUR million)

Trade and other payables
Interest-bearing liabilities
Lease liabilities
Other liabilities
Total impact on liquidity

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 68

2024

2024

2025–2026

2027–2028

2029–>

0–6 months

7–12 months

Year two and threeYear four and fiveMore than five years

157 109

0

0

0

0

194 719

162 556607 896

1 587 192

9 218

6 200

6 200

16 00213 02977 712

623

1 775

152

152

418

358 651

170 531624 049

1 600 373

87 348

A message from the CEO
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Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 5
Segment information
ACCOUNTING POLICYThe Group's reportable segments are in accordance with how the corporate management makes,­follows up and evaluates its decisions. The operating segments have been identified based on­internal management information that is periodically reviewed by the corporate management andused as a basis for resource allocation and key performance review.
The Group has three operating segments: Hurtigruten (former Hurtigruten Norway), HX H
­ urtigruten
Expeditions (former Hurtigruten Expeditions) and Hurtigruten Destinations. Activities that do notnaturally fall within these segments are reported in Group functions, other and eliminations.
Group functions,
01.01–31.12 2023

HX Hurtigruten

Hurtigruten

other and

Total

Hurtigruten

Expeditions

Destinations­eliminations

Hurtigruten GroupOperating revenue
Revenue from government contract
Other operating income
Total revenue and other income

272 870

287 31033 958(552)

593 586

61 993---61 993

-

-

-

-

-

334 863287 31033 958(552)

655 579

Direct cost of goods and services
Salaries and personnel costs
Sales and marketing costs
Other operating costs
Net other gains/(losses)
EBITDA(73 590)(87 866)(11 267)(1 271)(173 994)(91 714)(90 861)(9 217)(6)(191 797)(19 435)(27 169)(1 099)10(47 693)(107 027)(129 515)(3 670)(189)(240 400)(EUR 1 000)2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 69

1 860

964

73

315

3 212

44 956(47 137)

8 780(1 693)

4 906

(73)

(315)

- Net other gains/(losses)- Net non-recurring expenses
Normalised adjusted EBITDA(1 860)(964)

14 170

16 83657 266(31 265)

EBITDA
Depreciation, amortisation and impairment losses
Operating profit/(loss) (EBIT)

44 956(47 137)

8 780(1 693)4 906(37 486)(17 004)(6 537)(13 689)(74 716)7 470(64 142)2 243(15 382)(69 810)(3 212)31 0068 707(2 008)32 700A message from the CEO
About the Group

Group functions,
01.01–31.12 2022

HX Hurtigruten

Hurtigruten

other and

Total

Hurtigruten

Expeditions

Destinations­eliminations

Hurtigruten GroupESG Reporting(EUR 1 000)

Report of the Boardof Directors

Operating revenue
Revenue from government contract
Other operating income
Total revenue and other income

219 622256 376

30 606

1 925

508 530

59 378---59 378

-

7 655

9

946

8 610

279 000

264 031

30 6162 871

576 518

Direct cost of goods and services
Salaries and personnel costs
Sales and marketing costs
Other operating costs
Net other gains/(losses)
EBITDA(58 298)(68 238)(9 919)(464)(136 919)(84 082)(83 965)(8 755)(0)(176 801)(20 332)(30 918)

(777)

(0)

(52 028)(109 877)(140 287)(3 328)(159)(253 652)

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

PAGE 70

6 611

65(3 776)7 689(52 765)

7 901(1 529)(35 194)

(65)

3 776

- Net other gains/(losses)- Net non-recurring expenses
Normalised adjusted EBITDA(4 789)(6 611)34 03155 06740 442(4 309)

EBITDA
Depreciation, amortisation and impairment losses
Operating profit/(loss) (EBIT)

11 200(36 100)(24 900)

The reporting of segment assets and liabilities is not part of the internal management reportingin the Group. Material assets and liabilities are monitored at Group level and individual key
figures (e.g. trade receivables) are valued in the individual legal companies. Segment assets
and liabilities are therefore not presented.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

4 789
11 200(7 689)89 098

7 836

2 247

46 216(52 765)

7 901(1 529)(35 194)(22 722)(4 849)(9 686)(73 357)(75 487)

3 052(11 215)(108 550)

A message from the CEO
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Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 6
Operating revenue and other income
ACCOUNTING POLICY

Cost of sales

Hurtigruten Group presents revenue from contracts with customers and other revenue in a single

Cost of sales are the costs incurred to obtain a contract with a customer such as for example a sales

caption, Operating revenues in the consolidated statement of income.

commission. The Group pays commissions to agents that sell tickets to on behalf of the Group. Whensales agencts are invoiced the commission costs are recognised in the income statement at the time

Revenue from voyage tickets, flights, hotels, transportation and presold itemsof the related cruise. In some instances the Group makes a provision for prepaid or accrued commis-

Sale of services is recognised in the accounting period when the service is rendered and/or deliveredsion. The cost of sales is presented as direct cost of goods and services in the Income Statement.

to the customer. For ship voyages, revenue is recognised over the days the passenger is on board. For
voyages currently en route on the reporting date, revenues are accrued based on the number of days

Guarantees

the voyage lasts before the end of the accounting period. Tickets, meals and excursions are primarily

Hurtigruten Global Sales AS has, as a provider of package travels, the same responsibilities as otherpre-sold before the journey commences. For travellers along the Norwegian coast, it is also possible

actors in the business, following the EU Directive 2015/2302 on Package Travel, as set forth into purchase tickets in the port right before the ship sails. Travellers pay their journey up-front, andour terms and conditions for travellers: “Subject to these booking conditions, if we or our suppliers

these payments are accounted for as deposits from customers (liabilities).

perform or arrange your contracted holiday arrangements negligently, taking into consideration all
relevant factors, we will pay you reasonable compensation”.

Revenue from freight of cargo along the Norwegian coast is recognised based on monthly invoicing ofcargo space. The customers rent a specified cargo space and pays a daily rate regardless of whether

No provisions for guarantees were accounted for in the statement of financial position as of 31

the space is used or not.

December 2023 and 2022.

Revenue from onboard sales

Government grants

The Group's sale of goods primarily relate to sale of food, souvenirs and other kiosk products onboard

Government grants are recognised when there is reasonable certainty that the grant will be given.

the ships. Sale of goods is recognised as income when the customer has received and paid for the

When the grant is related to an expense item, it is recognised as income over the periods that the

goods. Payment for retail transactions is usually made in the form of cash or by credit card. The

related costs are expensed.

revenue is recognised in the income statement less the credit card fees incurred for the transaction.
The fees are recorded as cost of sales.

When the Group receives grants related to tangible or intangible assets, the grant is initially recognised in the balance sheet at nominal value. In later periods it is allocated to profit or loss over theContractual revenue

expected useful life of the underlying asset.

Hurtigruten Costal AS has a State Service Obligation with the Ministry of Transport and Communications to operate the Bergen–Kirkenes coastal route.

The Group has received government grants related to Covid-19 relief packages in 2021 and 2022.
The grants were recognized as other operating income over the periods the reduction in operating

Revenue received from public procurement is recognised in the income statement on a continuous

revenue occurred.

basis over the year based on existing contracts. These contracts are primarily based on a public

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 71

tender, where the company earns a contracted amount for planned (annual) production. There is an

The Group receives grants related to trainee schemes consisting of net salary subsidies. These grants

annual index adjustment of the contract amount. Any changes beyond the planned production are

are recognised as reduction of the personnel expenses.

compensated/deducted utilising agreed-upon rates set out in the agreements which are recognisedin the periods in which they occur.

A message from the CEO
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Revenue by Category

ESG Reporting(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Reconciliation of movement in deposits from customers
2023

2022

Ticket revenue
Revenue from flights, hotels & transportation
Presold food, beverages and excursions
Onboard sales of food, beverages, shop and excursions
Other passenger revenue
Cargo-freight revenue
Other operating revenue
Total operating revenue

333 132

287 872

73 04551 210116 483

90 22139 61834 72414 43812 685

2 628

2 996

14 24328 821

593 586

508 530

Revenue from government contract
Total contractual revenue

61 99359 37861 99359 378Government grant compensation scheme (Covid-19)
Insurance settlements
Total other operating income
Total operating revenue and other income

-

946

-

7 664

-

8 610

655 579576 518

Contractual revenue relating to the Bergen–Kirkenes coastal service is based on the current
agreement with the Norwegian government through the Ministry of Transport and Communications. The agreement applies to the Bergen–Kirkenes route for the period 1 January 2021
through 31 December 2030 and applies to 7 ships.
Other operating income relate to insurance claims related to the MS Fridtjof Nansen incident
in 2022. The amount of the Covid-19 compensation scheme received for 2022 from theNorwegian Government was EUR 1.0 million.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 72(EUR 1 000)

Deposits from customers, opening balance
Net new sales
Recognised in revenue
Currency translation effects
Other deferred revenue
Deposits from customers, closing balance

2023

2022

158 866

172 299555 657

298 175(544 620)(309 891)

40(2 436)865

718

170 808

158 866

Deposits from customers are expected to be recognised in income as follows(EUR 1 000)

During the first twelve months
During the second year
Total deposits from customers

2023

2022

136 809

130 793

33 99928 073170 808

158 866

In the table above, deferred revenue have been reclassified from other current liabilities todeposits from ­customers.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Revenue by category and geographical segments
Operating revenue have been separated into geographical areas based on the market where
the sales office is located. Some markets serve customers in other countries. In the table below,
onboard sales, cargo freight revenue, contractual revenue and revenue from the Hurtigruten
Destinations segment have all been allocated to the Nordic market.
Presold food,
2023(EUR 1 000)

Nordic market/Onboard sales/Destination segment
Germany
FranceUnited Kingdom
Rest of Europe
United States and Canada
Asia/PacificTotal operating revenue

Flights, hotels andbeverages, shop andContractual

Other operating

Total operating

Ticket revenue

transportation

excursions

revenuerevenuerevenue

31 111(10 134)

23 66661 99357 492164 128

119 883

45 88531 898-5 891

203 557

19 956

5 408

7 163

-

1 802

34 32949 97913 96518 584-1 778

84 30629 854

4 490

9 397

-

445

44 18649 0768 994

15 089-3 100

76 26033 2734 435

10 601-505

48 814333 132

73 045

116 397

61 99371 012655 579

Flights, hotels andbeverages, shop andContractual

Other operating

Total operatingtransportation

excursions

revenuerevenuerevenue

Presold food,
2022(EUR 1 000)

Nordic market/Onboard sales/Destination segment
Germany
FranceUnited Kingdom
Rest of Europe
United States and Canada
Asia/PacificTotal operating revenue

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 73

Ticket revenue

28 262

2 204

8 510

59 37857 045155 399

118 265

24 97940 329-6 151

189 724

14 619

3 733

3 367

-

2 903

24 62147 107

10 79414 374-5 581

77 85726 324

2 035

8 298

-

3 306

39 96241 821

6 396

11 727-1 737

61 681

11 474

1 069

3 617

-

2 504

18 664287 872

51 21090 22159 37879 227567 908

A message from the CEO
About the GroupESG Reporting

Note 7
Direct costs of goods and services(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesCommisions
Flights, hotels and transportation costs
Food, beverages, shops and excursion costs
Other direct costs of goods and services
Total direct costs of goods and services

Note 8
Salaries and personnel expenses
2023

2022

43 04035 53565 57446 58854 65346 06210 7278 735

173 994

136 919(EUR 1 000)

Wages and salaries
Payroll tax
Pension costs (note 25)
Other benefits
Total salaries and personnel costs
Average number of full-time equivalents

2023

2022

157 824

142 814

11 34210 200

11 2099 188

11 42314 600191 797

176 801

2 089

1 904

Seamen hired by Hurtigruten Group are included in the “Net Wages” – scheme, where theNorwegian government reimburses to shipping companies an amount corresponding to thesum of the income tax paid, social security contributions and employer's national insurance
contributions (payroll tax) for crew within the scheme. The government grant is recorded as a
reduction in payroll costs. In 2022, the Group recognised EUR 10.9 million (NOK 110.0 million)in government grants through this arrangement (EUR 10.6 million or NOK 107.2 million in2022).
The Norwegian government reimburses parts of the salary to new seamen apprentices. The
government grant is recognised as a reduction in payroll costs. During 2023 the Group recognised EUR 0.9 million (NOK 8.8 million) in government grants through this arrangement (EUR
0.8 million or NOK 8.0 million in 2022). In 2023, the Group did not receive any extra grants ascompensation for not furloughing employees at sea (EUR 4.0 million or NOK 41.9 million in2022).

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 74

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 9Management and auditors' remuneration
Total compensation year 2023
Board of directors

The Board of Directors have waved their annual compensation for 2023.

Executive management
Hurtigruten underwent substantial reorganisation at every level, including executive­management, in 2023.
The disclosure's composition has been updated to reflect the new, leaner management
structure.
Total(EUR 1 000)

Position

Daniel Skjeldam
Torleif Ernstsen
James McArthur
Asta Lassesen
Hedda Felin
Total

Group Chief Executive Officer
Group Chief Financial Officer 2)Group Chief Financial Officer 3)
Chief Executive Officer HRX
Chief Executive Officer HRN

SalaryPension cost

Other 1)

­remuneration

753

179

766

1 698

178

1

525

704

282

19

70

371

210

28

175

413

257

19

135

412

1 681

246

1 672

3 598

1)

Other costs include bonus for 2022 paid in 2023, housing allowance, relocation costs (Daniel Skjeldam moved to the UK) and severance benefits for outgoing managers.

2)

Left the post in June 2023.

3)

In post from May 2023.

The CEO has an annual bonus plan in place which is based on company performance linked
to EBITDA achievement and key project milestones. This bonus is ultimately paid at thediscretion of the board. EBITDA performance was not achieved in 2023 and hence will not be
paid out.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 75

The CEO and the Norwegian management team members are included in the company's
ordinary defined contribution pension scheme in Norway and in a defined contribution schemethat provides a pension basis for salaries over 12k. The UK management team members areincluded the company's ordinary defined contribution pension scheme in the UK. The pension
costs for the executive management have been included in pension costs above.

A performance-based bonus scheme was introduced for the Group's management from 2013.
The bonus payments are established applying pre-determined targets/parameters, someof which relate to the Group's overall performance and others to results within managers'
individual spheres of responsibility. The maximum bonus for an individual manager is NOK
4.5 million. The bonus scheme covers certain members of the Group management. The bonus
criteria for FY 2023 were not fulfilled. The CEO has a separate performance-related bonus
scheme as described above.

A message from the CEO
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Total compensation year 2022
Board of directors

ESG Reporting

The Board of Directors have waved their annual compensation for 2022.

Report of the Boardof Directors

Executive management (restated)

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Total(EUR 1 000)

Position

SalaryPension cost

Other 1)

­remuneration

Daniel Skjeldam
Torleif Ernstsen
Asta Lassesen
Hedda Felin
Ole-Marius Moe-Helgesen
Steven Taylor 2)
Simon Little 3)
Total

Group Chief Executive Officer
Chief Financial Officer
Chief Executive Officer HRX
Chief Executive Officer HRN
Chief Digital Officer

711

98

1 185

1 994

291

41

280

612

200

41

340

581

230

32

67

329

218

27

118

363

Chief Commercial Officer

347

24

1

373

Chief People Officer

63

4

1

68

2 060

267

1 992

4 319

1)

Other costs include bonus for 2022 paid in 2023, housing allowance, relocation costs (Daniel Skjeldam moved to the UK) and severance benefits for outgoing managers.

2)

Joined 10 January 2022.

3)

Joined 1 October 2022.

Auditor remuneration(EUR 1 000)

2023

2022

Statutory audit
Other assurance services
Other non-assurance services
Tax consultant services
Total

714

565

37

54

-

-

VAT is not included in the fees specified above.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 76

11

-

762

619

A message from the CEO
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Note 10
Other operating expenses(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Sales and administrative expenses
Operating expenes (excl. energy)
Energy expenses 1)
Total other operating expenses

Note 12
Net financial items
2023

2022

95 67993 488113 167

118 661

79 24893 530288 094

305 679

Operating expenses include all other cruise operating costs such as harbour costs, bareboat
lease costs, repair and maintenance costs.

Note 11
Net other gains and losses

PAGE 77

2023

2022

Interest income
Dividends
Other financial income
Financial income

1 363

1 505

Interest on debt and borrowings
Interest on lease liabilities
Other financial expenses
Financial expenses
Net foreign exchange gains/(losses)
Net financial items(EUR 1 000)

2023

2022

Net foreign currency gains/(losses) on balance sheet items
Net gains/(losses) on forward bunker contracts
Net gains/(losses) other
Total

2 735

2 533

395

10 35882(5 203)

3 212

7 689

Net other gains and losses consist of gains and losses that result from translation of operational balance sheet items denominated in foreign currencies to Group functional currency atbalance sheet date, realised gains and losses on forward bunker fuel contracts and other net
gains and losses. The net loss of EUR 5.2 million in 2022 was related to a settlement of a legal
dispute with an LNG supplier.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS(EUR 1 000)

563

45

1 855

145

3 782

1 696

(214 940)(104 173)(3 683)(4 063)(3 778)(5 530)(222 401)(113 766)

2 014

152

(216 605)(111 918)

The interest expenses increased as a consequence of higher net debt as well as higher interest
rates. In addition, the initial loan expenses for the financing in April 2023 which were initially
recorded in the statement of financial position according to the amortised cost method were
mostly expensed as part of the interest expense in 2023 because of the re-financing in February 2024. The part of interest expenses related to amortised loan expenses were EUR 44.6
million in 2023 and EUR 9.0 million in 2022. With reference to note 23 Net interest-bearing
liabilities.
The table has been restated from the 2022 annual report as follows: Expenses related toamortisation of initial loan expenses for the interest-bearing liabilities have been reclassified
from other financial expenses to interest expenses

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Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 13
Income taxes
ACCOUNTING POLICY

not exempt from taxation. Under the tonnage tax regime, taxable profit is calculated on the basis of

Income tax expense comprises income taxes payable and deferred income tax. Tax is recognised infinancial income after deduction of a portion of financial expenses. The portion deducted is calculated

the income statement, except to the extent that it relates to items recognised in other comprehensive

as financial assets in percent of total assets. The tax regime allows for financial losses to be carriedincome or directly in equity. In such case, the tax is also recognised in other comprehensive income or

forward against positive financial income in later years. Tonnage tax is payable based on the net

directly in equity respectively.

tonnage of vessels and classified as an operating expense.

Current tax is calculated in accordance with the tax laws and regulations enacted or substantively

Taxation under the Tax tonnage regime requires compliance with strict requirements. Voluntary orenacted at the balance sheet date in the countries in which the Group's subsidiaries and associatescompulsory exit from the regime will result in ordinary taxation of the operating results.

operate and generate taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax laws are subject to interpretation. Based onDeferred income tax assets and deferred income tax liabilities are recognised net to the extent thatmanagement's assessment, a provision is made for expected tax payments when necessary.

they relate to income taxes levied by the same taxation authority, and there is a desire and ability torealise the assets and settle the liabilities simultaneously.

Deferred tax is calculated on all temporary differences between the tax values and financial valuesof assets and liabilities. Deferred income tax is determined using tax rates and tax laws which havebeen enacted or substantially enacted by the balance sheet date and which are expected to apply
when the deferred income tax asset is realised, or the deferred income tax liability is settled.

Income tax recognised in profit and loss

Deferred income tax assets are recognised only to the extent that it is probable that future taxable(EUR 1 000)

2023

2022

profit will be available against which the tax-reducing temporary differences can be utilised. Deferredincome tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary differences is controlled by the Group,
and it is probable that the temporary difference will not reverse in the foreseeable future.
Several of the Group's subsidiaries are vessel owning companies, which are subject to taxation under
the Norwegian tonnage tax regime pursuant to chapter 8 of the Taxation Act. Under the tonnage
tax regime, profits from qualifying operations are exempt from taxes, whilst financial results are

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 78

Current taxes
Deferred taxes
Total income taxes(3 262)(1 580)(11 054)

11 987(14 316)

10 407

Tonnage tax is calculated based on the ship's tonnage and not income and is therefore classified as an operating expense.

A message from the CEO
About the Group

Reconciliation of income tax (expense)/benefit

ESG Reporting(EUR 1 000)

Report of the Boardof Directors

Net income before tax

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Expected income taxes 22% of profit before tax
Tax effect on taxable income within the tonnage tax schemein Norway
Tax effect non-deductable expenses and non-taxable income
and translation differences 1)
Effect from difference in tax rate from nominal tax rate in
NorwayEffect from change in tax rate and tax provisions fromprevious years
Tax effects of changes in unrecognised deferred tax assets
Tax effects share of profit (loss) from equity accounted
companies
Total income (taxes) benefit
Effective tax rate
1)

Deferred tax assets and deferred tax liabilities
Deferred income tax assets and liabilities are recognised on a net basis if the differencesthat are reversible can be offset. The deferred income tax assets relating to tax losses carriedforward are recognised in the statement of financial position to the extent that the Group canutilise the taxes losses carried forward against expected future taxable income.

2023

2022

(284 088)(219 819)

62 54048 374(EUR 1 000)

(14 613)(30 631)Retirement benefit obligations
Other current and non-current items
Tax loss carry forward
Deferred tax asset
Unrecognised deferred tax for tax loss carried forward
Unrecognised deferred tax interest cost subjected to limitatinos
Deferred tax assets recognised
Netting
Net deferred tax assets recognised(27 205)(5 604)

(52)

(111)

122

7

(35 635)(1 770)527

143(14 316)

10 407

-5.0%

4.7%

Most of the borrowings in the Group are denominated in EUR. This will not have any translation effects
in the reported accounts in the specific subsidiaries. However, the Norwegian tax papers are filed in
NOK and will show revaluation effects in the taxable profit and loss statement in NOK in the specificsubsidiaries. This creates a translation difference in profit/(loss) before taxes in EUR compared to NOK

Property, ship and equipment and intangible asses
Taxable gain and loss account (Norway only)
Other current and non-current items
Derivatives
Deferred tax liabilities
Netting
Net deferred tax liabilities

31.12.2023

31.12.2022

720

896

1 077

496

70 38771 45483 92485 901(47 739)(10 789)(11 740)(13 055)

24 44562 058(23 842)(61 241)

603

817

826

313

31 86758 748

2 213

1 592

149

609

35 05561 262(23 842)(61 241)

11 213

21

603

817

in the consolidated accounts.

Carrying value of defered tax asset
Carrying value of deferred tax liability
Net deferred tax asset/(liability)

Income taxes for items recognised in other comprehensive income (OCI)2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 79(EUR 1 000)

2023

2022

Remeasurement of defined benefit pension plans
Total tax charged to OCI

158

167

158

167

11 21321(10 610)796

A message from the CEO
About the Group

Movements in net deferred tax assets and deferred tax liabilities

ESG Reporting(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Opening balance
Recognised in profit and loss
Recognised in other comprehensive income
Currency translation differences
Net deferred tax asset/(liability)

31.12.2023

Tax losses carried forward
31.12.2022

796(10 206)(11 054)

11 987

(158)

(167)

(194)

(817)

(10 610)796

There is a pending tax issue with the Norwegian tax authorities dating back to 2017 related
to determination of taxable income when entering into the tax tonnage scheme. The tax
authorities decided to increase Explorer I AS' taxable income by MNOK 87.5 which is taxablewith 20% annually from 2017. Hurtigruten is of the of the opinion that the decision of the theNorwegian Tax Office is unfounded and has filed an appeal. Based on legal advice Hurtigruten
assess that the appeal will be successful. Therefore, the increase in tax was not recognizedin the statement of income. The tax claims have been paid annually and a corresponding
receivable for the paid income tax has been recognized. As of December 2023, the receivableamounts to EUR 596.511.

Gross tax

Net tax

Unrecog-loss carriedloss carried

nised tax

Recognised(EUR 1 000)

forwardforwardlossesdeferred tax

NorwayUK
FranceEstonia
US
Total tax losses carried forward

309 265

68 038(45 545)

22 493

48

9

-

9

582

145

-

145
-

2023

336

67

(67)

10 1282 127(2 127)-320 359

70 387(47 739)

22 648Gross tax

Net tax

Unrecog-loss carriedloss carried

nised tax

Recognised(EUR 1 000)

forwardforwardlossesdeferred tax

NorwayUK
FranceEstonia
US
Total tax losses carried forward

313 997

69 079(8 568)60 511

47

9

-

9

582

145

-

145
-

2022

(336)

(67)

67

10 8952 288(2 288)-325 185

71 454(10 789)

60 666The majority of tax losses can be carried forward indefinitely.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 80

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 14
Property, ship and equipment
ACCOUNTING POLICY

maintenance. Ongoing maintenance for all ship types is expensed in the P&L continuously during theProperty, ship and equipment consist primarily of ships and buildings (office buildings and ware-period in which the work is performed.

houses). Property, ship and equipment are recognised at cost less depreciation and any impairments.
Assets are reflected at cost less accumulated depreciation and accumulated impairment losses. See

Expected useful life is determined based on historical data, as well as the standard useful economic

note 3 for critical judgements on the impairment of nonfinancial assets.

lifetimes in the industry. Residual value is calculated based on estimated sales values for operating
assets at the end of their expected useful life.

Cost includes costs directly associated with the acquisition of the asset. The cost of ships underconstruction includes progress payments for the construction of new ships, capitalised interest,

The useful life and residual value of operating assets are assessed on every balance sheet date andconstruction oversight costs and various owner supplied items. The cost of prepayments ships andamended as necessary. When material components of operating assets have different useful lives,

assets under construction include design and engineering fees, capitalised interests, construction

these operating assets are recognised as their various components. These components are depre-

oversight costs and various owner supplied items. The Group accounts for ship improvement costs

ciated separately over each component's useful life. At the end of each accounting period operatingby capitalising those costs believed to add value to its ships and which have a useful life greater thanassets are assessed for indications of lasting impairment and, in the event of such impairment, theone year and depreciates those improvements over its estimated useful life.

asset's recoverable amount is estimated. When the book value of an operating asset is higher thanthe estimated recoverable amount, it is written down to the recoverable amount.

Property, ship and equipment, other than land and properties under construction, are depreciatedover their estimated useful lives, using the straight-line method and taking into consideration any

Gains and losses on disposals are recognised on a net basis, as the difference between the sales

residual values. Depreciation commences when the assets are ready for their intended use. Depreci-

price and the book value.

ation ceases when property, ship and equipment are classified as held for sale. Periodic maintenanceof ships is recognised in the balance sheet and depreciated over its useful life until the next periodic

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 81A message from the CEO
About the Group

Movements in property, ship and equipment 2023
Prepayments ships

ESG Reporting(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesAcquisition cost
As at 1 January 2023
Additions
Additions through investments in subsidiaries
Transfers and reclassifications
Remeasurement right of use assets
Disposals
Currency translation differences
As at 31 December 2023
Accumulated depreciation and impairment
As at 1 January 2023
Additions through investments in subsidiaries
Depreciation
Disposals
Impairment losses
Transfers and reclassifications
Currency translation differences
As at 31 December 2023
Book value 31 December 2023
Useful economic lifetime

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 82

Other property,

and assets underplant andLand and buildings

Ships

construction­equipment

Right of use asset

Total

3 534

1 323 221

49 11924 22984 435

1 484 53838

49 41016 287

2 727

8 328

76 790

-

-

-

-

-

-

3

27 197(28 601)

1 400

-

-

-

-

-

-

1 564

1 564

(50)

-

(180)

(632)

-

(861)

(83)

-

(48)

(757)

(2 844)(3 732)3 444

1 399 827

36 57826 96791 483

1 558 300

(1 201)(483 796)-(14 645)(40 469)(540 111)

-

-

-

-

-

-

(198)

(53 731)-(2 657)(8 915)(65 501)

-

-

-

804

-

804

(494)

-

(708)

-

(1 159)(2 361)

25

-

-

(25)

-

-

(109)

-

(16)

575

696

1 146

(1 977)(537 528)(724)(15 947)(49 847)(606 023)

1 467

862 300

35 854

11 02041 636952 277

25–40 years

20–40 years

N/A

5–10 years

A message from the CEO
About the Group

Movements in property, ship and equipment 2022
Prepayments ships

ESG Reporting(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Ships

construction­equipment

Right of use asset

Total

3 360

1 255 381

39 805

21 41177 182

1 397 139

13

38 67245 575

2 420

3 064

89 744

-

-

-

-

6 731

6 731

346

29 167(36 240)

1 164-(5 563)Acquisition cost
As at 1 January 2022
AdditionsRemeasurement right of use assets
Disposals
Currency translation differences
As at 31 December 2022
Accumulated depreciation and impairment
As at 1 January 2022
Additions through investments in subsidiaries
Depreciation
Disposals
Currency translation differences
As at 31 December 2022

Useful economic lifetime

(185)

(0)

(20)

(765)

(2 543)(3 513)3 534

1 323 221

49 11924 22984 435

1 484 538

(1 636)(433 897)-(12 948)(31 593)(480 074)

-

-

-

-

-

-

(197)

(54 845)-(2 275)(9 520)(66 837)

572

4 946

-

-

-

5 518

60

(0)

-

578

644

1 283

(1 201)(483 796)-(14 645)(40 469)(540 111)

2 333

839 424

49 1199 585

43 966944 427

25–40 years

20–40 years

N/A

5–10 years

Land has indefinite useful economic lifetime; hence it is not subject to depreciations.

Impairment

PAGE 83

plant andLand and buildingsBook value 31 December 2022

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Other property,

and Assets under

In 2023 the Group operated 15 cruise ships. As of 31 December 2023, the Group has assessed
the carrying values of the ships against the recoverable amount. The recoverable amount is
the higher of an asset's fair value less cost of disposal and value in use. The value in use has
been estimated for the ships on a cash generating unit level and has been calculated basedon the present value of estimated future projected cash flows that represents management's
best estimate. As of year-end the estimated value in use is higher than the carrying value of theassets, and no impairment has been recognised in the financial statements as of 31 December
2023.
Reference to note 16 regarding impairment of right-of-use assets in 2023

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

Note 15
Intangible assets
ACCOUNTING POLICY

development is complete and the asset is available for use. It is amortised over the period of expected

Goodwill

future benefit. Other development expenditures that do not meet the criteria for recognition in the

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's sharebalance sheet are expensed as they are incurred.

of the net identifiable assets in the acquired subsidiary at the date of acquisition. Goodwill arising on
the acquisition of subsidiaries is classified as an intangible asset.

Software-as-a-Service (SaaS) arrangements
SaaS arrangements are service contracts providing the Group with the right to access the cloud

Consolidated
financial ­statements

Goodwill is allocated to the cash-generating units or groups of cash-generating units that areprovider's application software over the contract period. Costs incurred to configure or customise,

Parent company
financial statements

expected to benefit from the acquisition at the time of acquisition.

and the ongoing fees to obtain access to the cloud provider's application software, are recognised

Goodwill is not amortised but is tested annually for impairment.

ESG Appendicesas operating expenses when the services are received.
Some of these costs incurred are for the development of software code that enhances, modifies orTrademarks

creates additional capability to existing systems and meets the definition of and recognition criteria

Trademarks acquired in a business combination are recognised at fair value at the acquisition date.

for an intangible asset. These costs are recognised as intangible software assets and amortised over

The trademark recognised in the balance sheet is assessed to have an indefinite useful life and is

the useful life of the software on a straight-line basis. The useful lives of these assets are reviewed attherefore tested annually for impairment.

least at the end of each financial year.

Other intangible assets

Impairment of non-financial assets excluding goodwill

Intangible assets consist mainly of development costs for computer systems recognised in the bal-

At each reporting date, the company reviews the carrying amounts of its non-financial assets toance sheet at cost if the criteria for recognition in the balance sheet are met. Costs related to assets

determine whether there is any indication of impairment. If any such indication exists, the recoverable

recognised in the balance sheet as custom developed computer systems largely comprise of payroll

amount of the asset is estimated to determine the extent of the impairment loss, if any. Where it iscosts and external consultants in connection with the development.

not possible to estimate the recoverable amount of an individual asset, the company estimates therecoverable amount of the cash-generating unit to which the asset belongs.

The criteria for recognising custom developed intangible assets in the balance sheet are:
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing• It is technically feasible to complete the development of the software so that it will be available foruse.
• Management intends to complete the development of the software and use it.

value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.

• It is probable that the intangible asset will create future economic benefits.
• Adequate technical, financial, and other resources are available for the Group to be able tocomplete the development and to use the completed intangible asset.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 84

If the recoverable amount of an asset (cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.

• Development costs for the asset can be reliably measured.

An impairment loss is recognised immediately in profit or loss.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating

less any accumulated amortisation and impairment losses. Amortisation of the asset begins whenunit) is increased to the revised estimate of its recoverable amount. The increased carrying amountA message from the CEO
About the Group

does not exceed the carrying amount that would have been determined had no impairment loss been

whenever events or changes in circumstances indicate that the carrying amount may exceed therecognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss isrecoverable amount. An impairment loss is recognised as the amount by which the asset's carrying

ESG Reporting

recognised immediately in profit or loss.

amount exceeds its ­recoverable amount. The recoverable amount is the higher of an asset's fair

Report of the Boardof Directors

Impairment of goodwill and trademarks

assets are grouped at the lowest levels for which there are separately identifiable cash inflows which

Goodwill and intangible assets that have an indefinite useful life such as trademarks are not subject

are largely independent of the cash inflows from other assets or groups of assets (cash-generating

to amortisation and are tested annually for impairment, or more frequently if events or changes inunits). Non-financial assets, other than goodwill, that have historically been impaired are reviewed forcircumstances are evaluated to be impairment indicators. Other assets are tested for impairment

possible reversal of the impairment at the end of each reporting period.

value less costs of disposal, and value in use. For the purposes of assessing assets for impairment,

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesMovements in intangible assets 2023
Intangible assets

Other intangible

Goodwill

Trademarkunder construction

assetsTotal

199 035

45 6213 000

72 289319 945

-

-

241

1 458

1 699

-

-

(2 681)

2 681

-

(116)

-

(285)

(3 725)(4 126)

198 91945 621274

72 704317 519(1 365)--(54 141)(55 506)---(5 896)(5 896)

-

-

-

(957)

(957)

88

-

-

2 575

2 663

(1 277)--(58 420)(59 696)

Book value 31 December 2023

197 643

45 621274

14 284257 822

Useful economic lifetime

Indefinite

Indefinite

N/A

3–10 years(EUR 1 000)

Acquisition cost
As at 1 January 2023
Additions
Transfer from assets under construction
Currency translation differences
As at 31 December 2023
Accumulated depreciation and impairment
As at 1 January 2023
Amortisation
Impairment losses
Currency translation differences
As at 31 December 2023

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 85

A message from the CEO
About the Group

Movements in intangible assets 2022

ESG Reporting(EUR 1 000)

Report of the Boardof Directors

Acquisition cost
As at 1 January 2022
Additions
Disposals
Currency translation differences
As at 31 December 2022

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Accumulated depreciation and impairment
As at 1 January 2022
Amortisation
Depreciation disposals
Impairment losses
Currency translation differences
As at 31 December 2022

Intangible assets

Other intangible

Goodwill

Trademarkunder construction

assetsTotal

198 679

45 621

6 483

66 413317 197

448

-

208

6 150

6 806

-

-

(3 180)

2 457

(723)

(91)

-

(512)

(2 731)(3 335)

199 035

45 6213 000

72 289319 945(1 437)--(50 456)(51 893)---(5 814)(5 814)

-

-

-

706

706

-

-

-

(706)

(706)

72

-

-

2 129

2 201

(1 365)--(54 141)(55 506)

Book value 31 December 2022

197 670

45 6213 000

18 148264 439

Useful economic lifetime

Indefinite

Indefinite

N/A

3–10 years

Hurtigruten Group AS acquired 100% of the outstanding shares in Hurtigruten Global Sales
AS in 2014. As a result of the acquisition, a goodwill of EUR 194.6 million and an excess value
on trademarks of EUR 45.6 million were recognised.
In 2023 the Group recognised an impairment of EUR 1.0 million related to IT-systems.
Other intangible assets primarily comprise of capitalised development expenses related to ICT
systems (booking, inventories and similar) with a limited lifespan. The assets are amortised
on a straight-line basis over 3–10 years. Amortisation is presented under amortisation in theincome statement.
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 86

A message from the CEO
About the Group

Annual impairment tests

ESG Reporting

Goodwill acquired through business combinations has been allocated to individual­cash-­generating units as presented below:

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

2023

2022

126 483

97 67564 66893 477(EUR 1 000)

Hurtigruten Norway
Hurtigruten Expeditions
Hurtigruten Destinations
Total

6 491

6 519

197 643

197 670

The change between the Hurtigruten and HX Hurtigruten Expeditions segments is due toa transfer of the ship MS Otto Sverdrup from HX Hurtigruten Expeditions to Hurtigruten in
2023. The change in the Hurtigruten Destinations segment is related to the restaurant “Huset”
on Svalbard.
The recoverable amount of a cash-generating unit is calculated based on forecasted results
and liquidity for the units, approved by Management and the Board of Directors.
Assumptions applied when calculating
the recoverable amountGrowth rate
Discount rate after tax

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 87

HX Hurtigruten

Hurtigruten

Hurtigruten

Expeditions

Destinations

2.0%

2.0%

2.0%

14.5%

14.5%

14.5%

The recoverable amount has been calculated based on the latest updated forecast for discounted cash flow for a forecasted period of five years, and an extrapolation period of 10 years.
The forecast represents management's best estimate for the range of economic conditions
that will exist over the period, including expectations regarding occupancy rate, fuel prices andsalary development. Expected future cash flows are based on forecasted EBITDA deducted
for capex, depreciation, changes in net working capital (NWC) and other non-cash items.
Subsequently the terminal value is used. For the period beyond 2038, cash flow is estimatedby extrapolating the projections based on the forecasts, using a perpetuity growth rate 2 % forsubsequent years, equal to assumptions in inflation.
The Group does not apply a general growth factor beyond expected inflation for cash flows
when testing goodwill for impairment. The total required rate of return used to discount cash
flows is calculated as a weighted average return on equity and the required rate of return oninterest-bearing debt. This calculation utilises an estimate of the risk-free interest rate, risk
premium, beta, and the liquidity premium.

Sensitivities
The value in use calculation is mainly affected and sensitive to 1) changes in EBITDA driven bychanges in occupancy rate and ticket price (Yield) assumptions and 2) discount rate. Management has tested the value in use calculation to changes for these key assumptions with 5 %increase or decrease in both occupancy and yield, and an increase or decrease of 1 percentage
point for the discount rate. None of these scenarios alter the outcome of the impairment test.

Impairment in 2023 and 2022
Based on this analysis, the Group has not recognised any impairment of the carrying value of
goodwill and trademarks in 2023 or 2022.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 16
LeasesACCOUNTING POLICY

Right-of-use assets

The Group has rental agreements related to properties, ships, and equipment, representing future

Office-obligations for the Group.

and other(EUR 1 000)

Ships

Buildings

machineryTotal

12 5433 362

30 293

1 130

43 966

3 880

1 086

8 328

(2 893)

4 150

308

1 564

(2 970)(4 585)(1 361)(8 915)(1 159)The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The

lease term. The estimated useful lives of the right-of-use assets are determined on the same basis

2023
Balance at 1 January
New contracts
Remeasurement or amendments
Depreciation
Impairment
Currency translation differences

as property and equipment, and is periodically reduced by impairment losses, if any, and adjusted forBalance at 31 December

right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments before commencement date, initial direct costs incurred and, if
applicable, an estimate of costs to dismantle the underlying asset.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the-(1 159)-(483)(1 658)(7)(2 148)9 559

30 921

1 156

41 636

10 91931 9772 694

45 589

-

2 847

217

3 064

5 443

1 262

26

6 731

(3 340)(4 376)(1 804)(9 520)(479)
12 543(1 416)30 293(3)
1 130(1 898)43 966remeasurements of the lease liability.

The lease liability is remeasured when there is a change in the terms of the lease such as index

2022
Balance at 1 January
New contracts
Remeasurement or amendments
Depreciation
Currency translation differences

adjustments of lease payments, lease duration or scope changes. A corresponding adjustment is

Balance at 31 December

The lease liability is initially measured at the present value of the lease payments, discounted
using the interest rate implicit in the lease or, if the rate cannot be readily determined, the Group's
incremental borrowing rate.

made to the right-of-use asset.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases

Impairment of right-of-use assets in 2023 is related to vacated office space in US, UK and
Norway.

that have a lease term of 12 months or less, and leases of low-value assets. The Group recognises thelease payments associated with these leases as an expense.
The largest impact for the Group leases related to rental of buildings, ships, machinery, and equipment.
For a any sale and leaseback transaction, the requirements in IFRS 15 for determining when a2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 88­performance obligation is satisfied is first assessed before applying the required accounting­treatment in IFRS 16 for a sale and leaseback transaction.

Reference to note 14 for movements in right-of-use assets.

A message from the CEO
About the Group

Lease liabilities

ESG Reporting(EUR 1 000)

Report of the Boardof Directors

Maturity analysis – Contractual undiscounted cash flows
Short-term liabilityLess than one year

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesLong-term liability
One to five years
More than five years
Total undiscounted lease liability at 31 December
Lease liabilities in the statement of financial position at
31 December
Current
Non-current
Total lease liabilities at 31 December
Reference to note 23 for movements in the lease liabilities.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 89

Amounts recognised in the consolidated statement of income
2023

2022

(EUR 1 000)

12 400

12 205

Depreciation right-of-use assets
Interest on lease liabilities
Total

29 03129 517

Amounts recognised in the consolidated statement of cash flows

77 71281 460119 142123 182(EUR 1 000)

Net cash outflow for leases
11 83211 99255 38958 79767 22170 7892023

2022(8 915)(9 520)(3 683)(4 063)(12 598)(13 583)

2023

2022

(9 064)(9 711)

Lease contracts of low value and lease contracts with duration less than 12 months are exempt
from the IFRS 16 lease accounting.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 17
Investments in associates
ACCOUNTING POLICY

Associates are all entities over which the Group has significant influence but not control or joint

This table presents the associates and joint ventures of the Group as of 31 December 2023 and2022. Associates are accounted for using the equity method.

control. This is generally the case where the Group holds between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method of accounting, after initiallybeing recognised at cost.

(EUR 1 000)

Green Dog

Empresa ­Turistica

Svalbard AS­Internacional C.A.

Total

Longyearbyen,
Under the equity method of accounting, the investments are initially recognised at cost and adjusted

Registered office

Svalbard

Ecuador

50.0%

24.9%

580

20 536

-

33

33

296

353

650

thereafter to recognise the Group's share of the post-acquisition net income of the investee in profit
or loss, and the Group's share of movements in other comprehensive income of the investee in other

Shareholding

comprehensive income. Dividends received or receivable from associates and joint ventures arerecognised as a reduction in the carrying amount of the investment.
Where the Group's share of losses in an equity-accounted investment equals or exceeds its interest in
the entity, including any other unsecured long-term receivables, the Group does not recognise further
losses, unless it has incurred obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates and joint ventures are
eliminated to the extent of the Group's interest in these entities. Unrealised losses are also eliminatedunless the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of equity-accounted investees have been changed where necessary to ensure consistency

Net investments at 1 January 2022
AdditionsShare of net income
Translation differences
Carrying value, 31 December 2022
AdditionsShare of net income
Dividends
Translation differences
Carrying value, 31 December 2023

21 116

(83)

-

(83)

793

20 92321 715

-

-

-

258

2 069

2 327

(183)

-

(183)

132

(178)

(46)

1 001

22 81423 814

with the policies adopted by the Group.

Green Dog Svalbard AS offers dog-related activities on Svalbard. These include dog sledding,overnight trips with teams of dogs and similar. The Group has a 50% shareholding in Green
Dog Svalbard AS.
Empresa Turistica Internacional C.A. operates under the brand Metropolitan Touring and offers
a wide range of travel products in Ecuador, including three ships used for sailings in the Galapagos and the luxury resort Finch Bay in the Galapagos. The Group has a 24.9% shareholding in
Empresa Turistica Internacional C.A

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 90

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 18
Financial instruments
ACCOUNTING POLICY

All financial assets that are not recognised at fair value through profit or loss are initially recognised

Classification of financial assets

at fair value plus transaction costs. Financial assets recognised at fair value through profit or loss
are initially recognised at fair value and transaction costs are expensed in the income statement.

The Group classifies financial assets in the following three categories, depending on management's

Subsequent measurement depends on the classification of the asset.

objective when acquiring the asset and the characteristics of the asset:
Financial assets are derecognised when the rights to receive cash flows from the investment expire
1) Financial assets measured at amortised costPrimarily loans and receivables with fixed payments of principal and interest, where the financial

or when these rights have been transferred and the Group has substantially transferred all risks andrewards of ownership.

instrument is not traded, but held to collect the contractual cashflow. Loans and receivables arecarried in successive periods at amortised cost, using the effective interest method. Loans andGains or losses from changes in fair value of assets classified as “financial assets at fair value throughreceivables with maturities less than 12 months are classified as current assets and with more thanprofit or loss”, including interest income and dividends, are presented on a net basis in the income

12 months maturity as non-current assets.

statement in the period in which they arise. Dividends from financial assets at fair value through profit
or loss are recognised when the Group's right to receive payments is established.

2) Financial assets measured at fair value through other comprehensive income
Investments in equity instruments, not held for trading, where management has made an irrevoca-

Offsetting of financial assets and liabilities

ble election to present subsequent changes in the fair value as other comprehensive income, areFinancial assets and liabilities are only offset, and the net amount reported in the balance sheet, whenclassified into this group.

there is a legally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis or realise the asset and settle the liability simultaneously.

3) Financial assets measured at fair value through profit or loss
All other financial assets are measured at fair value through profit or loss. For the Group, thisImpairment of financial assets

primarily consists of derivatives that are not designated as hedges. Assets in this category are

At the end of each reporting period, for all financial assets measured at amortised cost except

classified as current assets or liabilities.

customer receivables, the Group assesses whether the credit risk on the financial instruments
has increased significantly since initial recognition, using available reasonable and supportable

Recognition and measurement

forward-looking information. If and when contractual payments are more than 30 days past due,

Regular purchases and sales of financial assets are recognised and derecognised using trade datethe credit risk is considered to have increased. For financial instruments where the credit risk isaccounting, which means using the date the Group commits itself to purchase or sell the asset.

considered to have increased significantly, an amount equal to the lifetime expected credit losses

Unconditional receivables and payables are recognised as assets or liabilities when the entity

is recognised for loss allowance. For financial instruments where the credit risk has not increased

becomes a party to the contract and has a legal right to receive or a legal obligation to pay cash.

since initial recognition, an amount equal to 12-months expected credit losses is recognised for loss

Assets to be acquired and liabilities to be incurred as a result of a firm commitment to purchase or

allowance. The change in recognised impairment losses since the last reporting period is recognised

sell goods or services are generally not recognised until at least one of the parties has performed

in profit or loss.

under the agreement. Planned future transactions, no matter how likely, are not assets and liabilities
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 91

because the entity has not become a party to a contract.

Impairment testing of customer receivables is described under trade receivables below.

A message from the CEO
About the Group

Derivatives and hedging
The Group uses derivatives to hedge exposure against bunker oil price risk. Some of these derivatives

ESG Reportingmight be designated as hedging instruments by management. Derivatives are initially recognised
at fair value on the date a derivative contract is entered into and are subsequently re-measured atReport of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendicesfair value on an ongoing basis. The changes are generally recognised in profit or loss. However, themethod of recognising the resulting gain or loss depends on whether the derivative is designatedas a hedging instrument, and if so, the nature of the item being hedged.
The Group has not had derivatives designated as hedging instruments in 2023 or 2022.

Carrying amount of financial assets and liabilities 2023
Financial­instruments at
As of 31 December 2023
(EUR 1 000)

Non-current assets
Other non-current financial assets
Investments accounted for using equity method
Investments in other companies
Current assets
Trade receivables
Other receivables and prepaid expenses
Derivatives
Cash and cash equivalents
Non-current liabilities
Interest-bearing liabilities

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 92

Current liabilities
Interest-bearing liabilities
Trade payables
Other payables and provisions
Accrued revenue and deposit from customers
Net financial assets and liabilities

Financial l­ iabilities

fair value throughDerivatives

Non-financial

note

at amortised costprofit and loss

used for hedging

assets and liabilities

20

899

17

1 598

2 497

23 81423 814206

20

28 9002045 666206

28 90036 856678

21

50 21023

1 651 06423

281 46026

48 08526

71 737

6

82 522678

117

50 32713 088

1 664 152

281 460
48 085865(1 927 535)

Total

324

678

40 614112 350

169 943

170 808

A message from the CEO
About the Group

Carrying amount of financial assets and liabilities 2022
Financial

ESG Reporting­instruments at

Financial

Financial l­ iabilities

fair value through­instruments at fair

Derivatives

Non-financial

note

at amortised costprofit and loss

value through OCI

used for hedging

assets and liabilities

20

919

As of 31 December 2022

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices(EUR 1 000)

Non-current assets
Other non-current financial assets
Investments accounted for using equity method
Investments in other companies
Current assets
Trade receivables
Other receivables and prepaid expenses
Derivatives
Cash and cash equivalents
Non-current liabilities
Interest-bearing liabilities
Current liabilities
Interest-bearing liabilities
Trade payables
Other payables and provisions
Accrued revenue and deposit from customers
Net financial assets and liabilities

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 93

17
309

20

19 99520

34 232

Total

808

1 728

21 71521 715

2 230

2 539

19 99531 2072 773

65 4402 773

2129 84123

1 374 02823

263 46326

61 10426

50 17224 26174 4336

5 872

152 994

158 866(1 669 651)

117

29 9581 987

1 376 015

263 463
61 104

426

2 230

2 773

A message from the CEO
About the GroupClassification by IFRS fair value hierarchySpecification of investments in other companies

ESG Reporting

The Group uses the following hierarchy to classify assets and liabilities, based on the valuation
methods used to measure and disclose their fair value:(EUR 1 000)

Ownership share

Myklebust Verft Invest AS
Other minor investments
Total

15.9%

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices• Level 1: Quoted (unadjusted) prices in active markets for identical assets and liabilities.
• Level 2: Other techniques in which all the parameters that have a significant impact on
measuring fair value are either directly or indirectly observable. This is primarily relevant forour derivatives, where the price normally is set by the counterpart (a financial institution).
• Level 3: Valuation techniques that use parameters that significantly affect the valuation,
but which are not observable.

AssetsInvestments in other companies
Derivatives
Market based investments
Total

note

Level 1

206

206
678

117

(EUR 1 000)

note

Counterparties without external credit ratings:
Total trade receivables and other receivables

20

Money market fund (SICAV-France)
Total market based investments

note

Level 1

678

Level 2

206

Level 3

2 539
2 773
22

There were no transfers between levels 1, 2 or 3 in 2022.

1 002

Total

2023

2022

74 56555 78374 56555 78349 33629 000

117
2 773

2 539

Classification of derivatives – Assets
Rating A (S&P)
Total derivative assets

21

18

874

841

50 21029 841

117

117

117

117

678

2 773

678

2 773

2 539
2 773

117
117

2 539

117

Assets and liabilities measured at fair value as per 31 December 2022

117

309

206

Total

There were no transfers between levels 1, 2 or 3 in 2023.

AssetsInvestments in other companies
Derivatives
Market based investments
Total

PAGE 94

Level 3

678
22

2 230
206

Credit quality of financial assets

Bank deposit – Rating AA (S&P)
Cash on hand
Total cash and short-term bank deposits(EUR 1 000)2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Level 22022

The credit quality of financial assets that are neither past due nor impaired can be assessed byreference to external credit ratings (if available) or to historical information about counterparty
default rates.

Assets and liabilities measured at fair value as per 31 December 2023
(EUR 1 000)

2023

5 430

A hedging instrument is classified as non-current if the majority of the instrument is settled at
a date later than 12 months from the balance sheet date.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 19
Inventories

Note 20
Trade receivables, prepayments and other current receivables

ACCOUNTING POLICYACCOUNTING POLICY

Inventories have been measured at cost and in accordance with the FIFO principle.

Trade receivables are amounts due from customers for merchandise or services sold in the ordinary
course of business. If settlement is expected in one year or less (or in the normal operating cycle ofthe business if longer), they are classified as current assets. If not, they are classified as non-current

The inventories comprise the following types of goods:(EUR 1 000)

assets.
2023

2022

11 48911 454

Trade receivables are measured at the invoiced amount unless there is a significant financing
component.

Goods purchased for resale
Spare parts
Bunkers and lubrication oil
Total inventories

2 577

408

Trade receivables are adjusted for provision for impairment in accordance with the expected credit

3 206

6 327

loss model. The Group applies the simplified approach for trade receivables, measuring the loss

17 27118 189allowance at an amount equal to lifetime expected credit losses. Impairment for expected credit
losses is recognised in the income statement and updated at each reporting date. The impairment
is calculated by considering the historic evidence of the level of bad debt experienced for customer
types and the ageing of the receivable balance.
All other short-term receivables are measured at nominal values.
For any current financial assets, please refer to the Financial Instruments note.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 95

A message from the CEO
About the Group

Carrying value of trade receivables, prepayments and other current receivables

ESG Reporting(EUR 1 000)

Report of the Boardof Directors

Trade receivables
Less provision for impairment of trade receivables
Trade receivables

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Prepaid expenses
Prepaid income tax
Total prepayments

Current receivables related to travel bonds
Other miscellaneous receivables
Other current receivables, group companies
Net wages claims
Public duties receivable
Total other receivables

PAGE 962022

31 35420 563(2 454)(568)

28 900

19 995(EUR 1 000)

Up to three months
Three to six months
Over six months
Total ageing of overdue trade receivables

2023

2022

19 081

9 402

621

481

884

320

20 58610 20434 76729 6512 089
36 856

1 556
31 207

Movements in the provision for impairment of trade receivables

18 50214 202(EUR 1 000)

15 93011 412

6 600

1 678

3 742

5 809

891

1 131

45 66634 232

Total current trade and other receivables

111 422

Non-current receivables, group companies
Other non-current financial assets
Total other non-current financial assets

119

116

2 378

1 612

2 497

1 728

For specification of receivables from related parties, please see note 27.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

2023

Ageing of overdue trade receivables

85 435

Provision for impairment of receivables, opening balance
Provision for impairment of receivables during the year
Receivables written off during the year
Reversal of unused amounts
Currency translation effects
Provision for impairment of receivables, closing balance

2023

2022

568

638

2 437

471

(34)

(135)

(509)

(399)

(7)

(6)

2 454

568

The Group has no significant concentration of credit risk. Sales to end users are settled in cash
or with recognised credit cards and are paid in full prior to the travel date.
Trade receivables primarily comprise sales to external agents through invoicing. The Group has
routines to ensure that trade credit and prepayment of expenses are only extended to agentsand vendors that have a satisfactory credit rating. Individual risk exposure limits are set basedon internal and external assessments of credit ratings.

A message from the CEO
About the GroupESG Reporting

Note 21
Cash and cash equivalents

Note 22
Share capital
Share capital

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Cash and cash equivalents comprise cash in hand, bank deposits and other short-term liquid investments with maturity of three months or less. Bank overdrafts are included in current interest-bearing(EUR 1 000)

Cash at bank and on handMarket-based investments 1)
Cash and cash equivalents in the balance sheet

note

2023

2022

18

50 21029 841

18

117

117

50 32729 958

2 362

2 785

1)

Funds owned by a foreign subsidiary.

2)

Restricted bank deposits primarily comprise deposits for guarantees, pledged bank deposits and tax
withholding funds.

PAGE 972022

Total number of shares as of 01.01
Total number of shares as of 31.12

30

30

30

30

3 001

3 001

liabilities.

Of which restricted bank deposits 2)

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

2023

ACCOUNTING POLICY

Nominal value as of 31.12 (NOK)
Share capital (total number of shares at nominal value)in EUR million
Other paid in capital (EUR million)

99185 196

185 196

Total paid in equity (EUR million)

185 205

185 205

All ordinary shares have equal rights.

A message from the CEO
About the Group

Shareholder information as at 31 December 2023

Shareholder information as at 31 December 2022
Number of Shareholding

ESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicessharesSilk Midco AS
Shares in the ultimate parent Silk Topco AS held by elected
officers in Hurtigruten as of 31 December 2023
Board of Directors
Trygve Hegnar, Chair, through Persicopus AS
Petter Anker Stordalen, Director, through Strawberry Equities AS
Jonathan Barlow Rosen, Director
Linda Zhang, Director
Dean Merritt, Director
Management
Daniel A. Skjeldam, CEO, through Hornsund Invest AS
Asta Lassesen, CEO Hurtigruten Expeditions,through A. Y. Invest AS
Torleif Ernstsen, CFO 1), through Rypestrand Sjøbad AS
Ole-Marius Moe-Helgesen, CDO, through HMH Consulting AS
Hedda Felin, CEO Hurtigruten Norway, through Felinvest AS
1)

Left the position in June 2023

The company's auditor does not own any shares in Silk Topco AS.

Dividend per share
No dividend was proposed for the fiscal years 2023 and 2022.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 9830

Number of Shareholding(%)

100.0%

4.9%
11.6%
0.0%
0.0%
0.0%

0.9%
0.4%
0.1%
0.04%
0.04%

sharesSilk Midco AS
Shares in the ultimate parent Silk Topco AS held by elected
officers in Hurtigruten of 31 December 2022
Board of Directors
Trygve Hegnar, Chair, through Persicopus AS
Petter Anker Stordalen, Director, through Strawberry Equities AS
Jonathan Barlow, Director
Matthew Lenczner, Director
Dean Merritt, Director
Management
Daniel A. Skjeldam, CEO, through Hornsund Invest AS
Asta Lassesen, CEO Hurtigruten Expeditions, through A. Y. Invest
AS
Torleif Ernstsen, CFO, through Rypestrand Sjøbad AS
Ole-Marius Moe-Helgesen, CDO, through HMH Consulting AS
Hedda Felin, CEO Hurtigruten Norway, through Felinvest AS

30

(%)

100.0%

4.9%
11.6%
0.0%
0.0%
0.0%

0.9%
0.4%
0.1%
0.04%
0.04%

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Note 23
Interest-bearing liabilities
ACCOUNTING POLICYInterest-bearing liabilities are recognised initially at fair value, net of transaction costs incurred.
Subsequently, interest-bearing liabilities are recognised at amortised cost using the effective interest
method. The difference between the proceeds (net of transaction costs) and the redemption value isrecognised in the income statement over the period of the interest-bearing liabilities as part of theeffective interest.
Interest-bearing liabilities are classified as current liabilities unless there is an unconditional right todefer payment of the liability for at least 12 months after the reporting date. Repayments due within
one year are therefore classified as current liabilities.
Borrowing costs directly attributable to the acquisition of operating assets are recognised in thestatement of financial position until the asset is ready for its intended use. Other borrowing costs are
expensed on an ongoing basis. In the cash flow statement, interest paid is classified as part of thefinancing activities.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 99

A message from the CEO
About the GroupClassification of interest-bearing liabilities(EUR 1 000)ESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Secured
Bonds
Term loans
Sale leaseback debt facilities
Revolving credit facilities
Other non-current interest-bearing liabilities
Transaction cost at amortised cost – (secured)
Total non-current interest-bearing secured liabilities
Unsecured
Bonds
Transaction cost at amortised cost
Shareholder loan, non-current
Other interest-bearing liabilities
Total non-current interest-bearing unsecured liabilities
Non-current lease liabilities
Total non-current interest-bearing liabilities

31.12.2023

31.12.2022

253 839285 000

946 133655 000

26 74267 233-85 000834

1 518(7 423)(7 529)1 220 125

1 086 222

50 00050 000(790)(1 518)324 899

180 4771 440

50

375 550229 00955 38958 797

1 651 064

1 374 028

(EUR 1 000)

Secured
Bonds
Term loans
Sale leaseback debt facilities
Other interest-bearing liabilities
Other current interest-bearing liabilities
Transaction cost at amortised cost – (secured)
Accrued interest external financing
Total secured current interest-bearing liabilities

PAGE 10031.12.2022

30 000

15 000-176 500

4 029

7 776

845

4 884

74 468-(2 979)(2 090)41 62720 438147 990

222 508

Unsecured
Shareholder loan, current
Accrued interest shareolder loan
Total unsecured current interest-bearing liabilities

50 95128 963

121 637

28 963

Total current interest-bearing liabilities

269 628

251 471

Current lease liabilities

11 83211 992

1 932 524

1 637 491

Total outstanding interest-bearing liabilities including leaseliabilities

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

31.12.2023

70 686

A message from the CEO
About the Group

Listed bonds

Movements in interest-bearing liabilities
2023

2022

Total interest-bearing liabilities

1 637 491

1 443 724

Cash flows
New financing
Repayments
Lease payments
Interest and financial cost paid

435 430

170 000(241 026)(14 259)(EUR 1 000)ESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices(9 064(9 711)(111 809)(68 917)

216 516110 589

9 866

9 823

Senior secured bond
The EUR 300 million Explorer II bond was listed on the Oslo Stock Exchange with ISIN: NO
0010874548 on 10 July 2020. The senior secured listed bonds hold mortgage over the vessels
MS Roald Amundsen and MS Fridtjof Nansen, bear a fixed coupon of 3.375% and mature in
February 2025. From and including August 2023 the bonds have semi-annual amortisation of
EUR 15 million (EUR 30 million per annum).
The fair value for the bond is gathered from Bloomberg, which showed a value of 91.73% as of
31 December 2023, compared to an issue price of 87.15%.

Green bondNon-cash flows
Financial expenses recognised in profit or loss
New lease contracts or modified/remeasured contracts
Currency translation effects
Total(4 881)(3 758)1 932 524

1 637 491

The EUR 50 million green bond was listed on the Oslo Stock Exchange with ISIN: NO
0012436270 on 18 July 2022. The listed bonds are unsecured and bear a fixed coupon of 11%
and mature in February 2025. Net proceeds from the bond were used to finance the upgradeof 3 ships in the Hurtigruten fleet to battery-hybrid power. Certain amendments were made to
the bond terms as part of the recapitalisation transaction announced in December 2023. See
separate note on subsequent events for further details.

Maturity of interest-bearing liabilities as of 31 December 2023
(EUR 1 000)Interest-bearing liabilities
Lease liability (nominal value)
Total

Between
0–1 year

Between
2–3 years

Between
4–5 years

More than
5 years

357 275

607 896

1 587 192

9 218

12 400

16 00213 02977 710369 675

623 897

1 600 221

86 928(EUR 1 000)Interest-bearing liabilities
Lease liability (nominal value)
Total
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 101

Between
2–3 years

For the remainder of the interest-bearing labilities, the Group considers the fair value toapproximate their carrying value. The main difference between carrying value and fair value isthe capitalised expenses recognised and amortised in accordance with the effective interest
method.

Other interest-bearing liabilities

Maturity of interest-bearing liabilities as of 31 December 2022
Between
0–1 year

The fair value of the bond is gathered from Bloomberg, which showed a value of 57.54% as of
31 December 2023, compared to an issue price of 87.15%.

Between
4–5 years

More than
5 years

266 061

1 336 929

150 169

12 20518 116

11 40131 67381 460278 266

1 355 045

161 570

113 133

The maturity table above have been restated from the 2022 report by adding maturity ofinterests to the maturity of the nominal balances of the interest-bearing liabilities.

Term Loan B (TLB), and Revolving Credit Facility (TLB1)
On 13 April 23 the Group completed certain amendments to the terms of the Term loan B(TLB) EUR 655 million and the EUR 85 million Revolving Credit Facility (RCF) under thesenior facilities agreement originally dated 9 February 2018 (the “SFA”). The maturities under
the RCF and TLB were extended from February 2024 and February 2025 to February 2026
and February 2027 respectively. The margin under the TLB was increased to 6.50% withadditional 100bps annual margin step-ups from November 2024 (and in certain circumstances
step-downs). The margin under the RCF was increased to 6.25% with additional 100bps
annual margin step-ups from November 2024 (and in certain circumstances step-downs).

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In addition the RCF was converted into a separate term loan (TLB1). As part of the transaction
the ultimate shareholders of the Group provided an additional EUR 80 million of funding. The
TLB and TLB1 loans hold the same security package including mortgage over 9 vessels andrank pari-passu.

Lease liabilities

Term Loan C, Term Loan D refinanced with Senior secured Notes Facility

The security packages under the Senior Secured Facility Agreement (SFA: TLB and TLB1) andthe Senior Notes Facility Agreement (NFA) include mortgage over 9 owned vessels, pledge ofshares in subsidiaries and assignment of intercompany loans and insurances.

On 4 April 2023 the Group completed the issuance of a new EUR 200 million 5-year notes
facility agreement (the “NFA”) maturing in February 2028. The net proceeds were applied
towards refinancing in full the EUR 176.5 million existing term loans (TLC and TLD) maturingin June 2023. The notes facility was priced at E+600bps cash coupon and 600bps PIK coupon,holds the same security package and ranks pari passu with the TLB and TLB1 under the SFA.
In connection with the new notes facility, a synthetic warrant instrument was issued by Silk
Topco AS in respect of a small minority of its fully diluted equity for cash consideration of EUR
17.5 million (cash proceeds from which were made available in full to the Group).

The Interim Facility holds mortgage over the vessels MS Richard With and MS Nordlys.
The senior secured bond holds mortgage over the vessels MS Roald Amundsen and MS
Fridtjof Nansen.
The vessel MS Spitsbergen is pledged under the sale and leaseback debt facility.

Interim Facility
As part of the recapitalisation transaction announced in December 2023 the Group secured a
EUR 74 million interim facility in December 2023. The facility provided net liquidity proceedsof EUR 33 million after repayment of the sale and leaseback facilities for MS Nordlys and MS
Richard With and transaction fees. The facility holds security over MS Nordlys and MS Richard
With. Reference to note 30 Subsequent events for further details.

Other interest-bearing liabilities
During 2023 the Group received additional EUR 182.5 million in loans from its ultimate shareholders. The State guaranteed bank loans of NOK 150 million were repaid in July 2023.

PAGE 102

Pledges

Sale and leaseback debt facilities
The Group has sale and leaseback facility in place for the vessel MS Spitsbergen with monthly
charter hire maturing in June 2028. The sale and leaseback facilities for MS Nordlys andMS Richard With were repaid in December 2023 as part of the recapitalisation transaction
announced in December 2023. See Interim Facility below and separate note on subsequent
events.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

The lease liabilities mainly consist of the real estate leases in Hurtigruten Svalbard, following
the 30-year sale leaseback agreement in 2021, office leases and lease of MS Bard.

The real estate in Sollia Gjestegård Holding AS and Sollia Gjestegård AS are pledged under
the term loan to Sollia Holding Gjestegård AS.
(EUR 1 000)Interest-bearing liabilities secured by mortgage
Senior secured Bond
Term loans
Sale leaseback debt facilities
Revolving credit facilities
Total interest-bearing liabilities secured by mortgage
Book value of assets pledge as security
Total assets pledged as security

2023

2022

285 000

300 000

946 133

831 500

30 77175 009-85 000

1 261 904

1 291 509

898 857

889 051898 857

889 051

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Covenants

Senior secured bond

ESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Minimum Free Liquidity covenantHurtigruten Group AS must maintain a Minimum Free Liquidity above EUR 15 million and theissuer Explorer II AS must maintain a minimum free liquidity above 50% of the next interest
and amortisation instalment.

employees as consideration for a share-based payment. The fair value of the amount payable toemployees in respect of the bonus shares, which is settled in cash or shares through a private

Minimum Free Liquidity covenantHurtigruten Group AS must maintain a Minimum Free Liquidity above EUR 15 million.

placement of shares, is recognised as an expense with a corresponding increase in liabilities overthe period during which the employees become unconditionally entitled to the shares. The liability isremeasured at each reporting date and at settlement date based on the fair value of the bonus shares.

Term Loan B, Term Loan B1 and Notes Facility
Minimum Available Liquidity covenantHurtigruten Group AS must maintain a Minimum Free Liquidity above EUR 25 million, tested
monthly and on a 13 week forward looking basis.

Consolidated Net Leverage Ratio
On or after 31 March 2025 the Company shall ensure that the Consolidated Net Leverage Ratio
is not greater than 6.85:1, tested quarterly.
Reference to note 30 Subsequent events.

PAGE 103

ACCOUNTING POLICYThe Group has share-based remuneration schemes in which the company receives services fromGreen bond

In December 2023 the Group announced that it had obtained a waiver of the minimum
liquidity covenant under its senior facilities and senior notes facilities for the month ending
November 2023.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Note 24
Share-based payment

Any changes in the liability are recognised in profit or loss.

In 2015, the executive management of Hurtigruten Group entered into an agreement with theultimate parent company, Silk Topco AS. Given the indebtedness of the Group as at 31 December 2023, management have written down the obligation under this incentive agreement to nil.
A new incentive plan will likely be implemented in 2024.

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Note 25
Employee retirement benefit plans
ACCOUNTING POLICY

Defined benefit schemes
The liability recognised in the balance sheet connected with the defined benefit schemes is the present value of the defined benefits at the balance sheet date less the fair value of the pension assets.

The Group operates both defined contribution and defined benefit pension schemes as well as
mandatory occupational pension plans in the companies where this is required. These plansfor Norwegian companies satisfy the requirements stipulated in the Norwegian Mandatory
Occupational Pension Act.

The pension liability is calculated annually by an independent actuary using the projected unit credit
method. The gross liability is discounted to present value applying the interest rate on high-quality
corporate bonds issued in the currency in which the liability will be paid, and with approximately thesame terms as the payment horizon of the liability.
The cost of pension entitlements for the period are recognised as personnel expenses. These
expenses include an increase in the pension liability due to earnings from previous years, changes,
curtailments, and settlements.

The Group has defined benefit plans in Norway and Germany. In the Norwegian defined benefit
plan, there are three former employees included in the scheme. During 2022 the arrangement
was adjusted to be an unfunded plan with future payments to be made on an ongoing basis.
The assets in the scheme were released. The German defined benefit plan is organised as a
CTA (contractual trust arrangement), in which the plan assets are earmarked for the pension
fund, while the company's management determines how the assets are to be invested. An
agreed fixed amount per month is paid to the pension plan where most beneficiaries receive
the same agreed amount, while two former directors receive a considerably higher part.

Past service costs arising from the amendments of plan benefits are immediately recognised in theincome statement.

The geographical allocation of the obligations and plan assets for the defined benefit plans is:

The net interest expense is calculated by applying the discount rate to the net pension liability

2023

and the fair value of the pension assets. This cost is also recognised in payroll costs in the income(EUR 1 000)

NorwayGermany

Total

1 653

3 703

5 356

-

5 300

5 300

1 653

(1 598)55

NorwayGermany

Total

1 827

4 166

5 992

(0)

4 974

4 974

1 827

(808)

1 018

statement.
Remeasurement gains or losses arising from changes in actuarial assumptions are recognised inequity through other comprehensive income in the period in which they arise and will not be reclassi-

Present value of obligations
Fair value of plan assets
Net pension obligations/(assets)

fied to profit or loss in subsequent periods.

2022
Defined contribution schemes(EUR 1 000)

For defined contribution plans, the Group pays contributions to publicly or privately administeredpension insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further
payment obligations once the contributions have been paid. The contributions are recognised as
personnel expenses in the same period as the employees have rendered services entitling them to

Present value of obligations
Fair value of plan assets
Net pension obligations/(assets)

the contributions. Prepaid contributions are recognised as a financial asset to the extent that a cash
refund or a reduction in the future payments are available. Future pensions are dependent on the size
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 104of the contributions and the return on the pension plans.

The Contractual Early Retirement (AFP) Scheme Act adopted by the Norwegian Parliament in2010 entailed the derecognition and recognition in the income statement of provisions related
to the old contractual early retirement scheme. Provisions were set aside to cover the assumed

A message from the CEO
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ESG Appendicesunderfunding of the old contractual early retirement scheme. The new AFP early retirement
scheme is based on a tri-parties collaboration between employer, employee organisations
and the government. The government covers one-third of the pension expenses for the early
retirement scheme, while affiliated enterprises cover the remaining two-thirds. The scheme
is recognised as a defined benefit multi-entity plan in the financial statements. This meansthat each individual company shall account for its proportional share of the scheme's pension
obligations, plan assets and pension costs. Until reliable and consistent information is available
for allocation, the new contractual early retirement scheme will be accounted for as a defined
contribution plan. This is consistent with the Ministry of Finance's conclusion concerning the
new AFP early retirement plan published in connection with the presentation of the NorwegianState Budget on 14 October 2013.

at least equal to the guaranteed interest rate. The plan assets in the German plan are currently
invested in a listed fund that is managed by a professional asset manager. The fund follows amulti-asset strategy with a conservative risk profile. The composition of the fund is regularlychanged to accommodate optimal returns and risk management. Consequently, theseinvestments are exposed to market risk. While the company management cannot influence
the fund's investments, it may at any time elect to exit fund investments.

The pension costs recognised in the income statement are:Financial assumptions(EUR 1 000)

Present value of accrued pension entitlements for the year
Defined contribution planInterest expenses (income)Payroll tax
Total pension costs included in payroll costs (note 8)

2023

2022

15

15

11 180

9 176

8

(9)

6

6

11 2099 188

Risks, asset management and sensitivity
The Group is exposed to several risks through the defined benefit pension schemes. The mostsignificant are potential changes in discount rates, bond interest rates, inflation, life expectancy
and expected return on funds.
The pension obligations are calculated using a discount rate based on the interest rate on
bonds. If the investment in the pension fund assets provides a lower return than the bond interest rate, this gives rise to a deficit. An increase in inflation could result in a higher obligation.
A rise in life expectancy could also result in a higher obligation. These assumptions are appliedin the pension reports from actuaries.

The pension obligation is most sensitive to changes in the applied discount rates. It is­estimated that a change of one percentage point will increase/decrease the pension obligation
by approximately EUR 0.4 million.

(EUR 1 000)

NorwayDiscount rate
Expected annual wage adjustment
Expected annual pension adjustment
Expected annual National Insurance basic amount (G)adjustment
Table book used for estimating liabilities
Table book used for estimating disabilities
Germany
Discount rate
Expected annual wage adjustment
Expected annual pension adjustment
Expected annual National Insurance basic amount (G)adjustment
Average expected years of service until retirement age

A basic intention of asset management of plans organised through pension insurancecompanies is to secure the non-current obligations by delivering a competitive annual return
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 105

2023

2022

3.10%

1.90%

3.50%

2.75%

1.80%

0.00%

3.25%

2.50%

K2013 BE

K2013 BE

IR02

IR02

3.20%

3.60%

N/A

N/A

2.25%

2.25%

N/A

N/A

10.6 Years

10.1 Years

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Change in the defined benefit pension obligations during the year

ESG Reporting(EUR 1 000)

2023

2022

Report of the Boardof Directors

Pension obligations as of 1 January
Present value of accrued pension entitlements for the year
Interest expenses
Effect of recalculation:
Changes in financial assumptions
Changes in demographic assumptions
Estimate deviations
Currency translation differences – obligations
Discontinuation of pension plans (plan changes)
Pension benefits paid
Change in payroll tax on net pension obligations
Pension obligations as of 31 December

5 993

10 408

8

15

192

92

(316)

(4 785)

-

232

-

384

(119)

(237)

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesSpecification of net plan assets/obligations

-

387

(402)

(495)

-

(8)

5 356

5 993

PAGE 106

2023

2022

Present value of funded pension obligation
Present value of unfunded pension obligations
Total pension obligation at 31 December

3 703

4 166

1 653

1 827

5 356

5 992

Estimated fair value of plan assets at 31 December
Net pension obligations at 31 December

5 300

4 974

55

1 018

Expected maturity date of pension schemes as of 31 December 2023
(EUR 1 000)

Defined benefit
pensionChange in the fair value of the plan assets

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS(EUR 1 000)

(EUR 1 000)

2023

2022

Fair value as of 1 January
Return on plan assets
actual return on assets (incl. interest income) recognised
in income statement
Paid-up policies and disbursements due to discontinuationof plans (plan changes)
Employer contributions
Currency translation differences – assets
Pension benefits paid
Fair value as of 31 December

4 973

8 272

179

46

147

(3 630)

-

435

-

53

-

(131)

-

(72)

5 300

4 973

< 1 year

1–2 years

2–5 years>5 years

Total

639

1 028

1 883

6 683

10 233

Table of the historical present values of pension obligations and assets as of
31 ­December(EUR 1 000)

2023

2022

Present value of defined benefit pension obligations
Fair value of plan assets
Deficit/(surplus)

5 356

5 992

5 300

4 974

55

1 018

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Note 26
Trade payables, other current liabilities and provisions(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

Trade payables
Trade payables related parties 1)
Public duties payable
Other current liabilities
Current payables to related parties 1)
Accrued expenses
Total other current liabilities 2)

2023

2022

47 96961 086

116

19

8 551

6 156

43 44821 214

2 256

(114)

49 24542 736151 584

131 0981)

See note 27 for information on trade payables and other current payables due to related parties.

2)

Deferred revenue have been reclassified from other current liabilities to deposits from customers. The total amount has not changed.

ESG AppendicesManagement
incentive(EUR 1 000)

Provision book value as of 1 January 2022
Provisions for the year
Utilisation/reversal of provisions from prior year
Currency translation effects
Provision book value as of 31 December 2022
Provisions for the year
Utilisation/reversal of provisions from prior year
Currency translation effects
Provision book value as of 31 December
1)

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 107

Bonusesplan

MS Maud 1)

Other

Total

2 070

718

-

658

3 446

3 200

69

-

13

3 282

(2 070)

-

-

(459)

(2 529)

(96)

-

-

(0)

(96)

3 104

787

-

212

4 103

-

-

5 500

-

5 500

(2 982)

(787)

-

(212)

(3 980)

(122)

-

-

-

(122)

-

-

5 500

-

5 500

The provision relates to the repairs required to MS Maud following a severe weather incident. An i­nsurance receivable related to this incident has been recognised as part of other receivables.

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Provision classification in the balance sheet as of 31 December

ESG Reporting(EUR 1 000)

Report of the Boardof Directors

Non-current liabilities
Current liabilities

Financial Statements

Bonuses

Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

2023

2022

-

91

5 500

4 012

The Group has certain bonus schemes for the CEO, Group management and other key personnel. As the performance indicators required to receive a bonus were not achieved, no bonus
provision was required in 2023 (EUR 3.1 million in 2022).

Management incentive plans
The management in Hurtigruten Group has entered an incentive plan to purchase shares in theparent company, Silk Topco AS. For further information regarding the Management incentive
plan, see note 24.

Note 27
Related party transactions
Transactions with related parties are carried out with terms and conditions that are no morefavourable than those available, or which might reasonably be expected to be available, insimilar transactions between independent parties. Related parties are defined as the key­management personnel in the company, shareholders, and associates. Associates in 2023
include Green Dog Svalbard AS, and Empresa Turistica Internacional C.A. (see note 17).
The Group conducted the following transactions with related parties:
Transactions with associates(EUR 1 000)

Operating revenues
Sale of services to Green Dog Svalbard
Operating costs
Purchase of services from Green Dog Svalbard AS
Purchase of services from Empresa Turistica International C.A.
Balances with Green Dog Svalbard AS at year-end
Current receivables
Non-current receivables
Current liabilities
Net balances with related parties as of 31 December

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 108

2023

2022

32

45

763

802

21 227

9 631

818

6 028

8 001

-

(6 732)(1 063)

2 087

4 966

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Current receivables from other group companies at year-end
2023

2022

(EUR 1 000)

Silk Topco AS
Silk Midco AS
KVE Holding AS
Kirberg Shipping AS
Namdalen Wilderness Lodge
Kleven Prosjekt 401 AS
HRG NewCo Holding
Total

6 554

1 653

7

4

Silk Topco AS
Silk Midco AS
KVE Holding AS
Kirberg Shipping AS
Namdalen Wilderness Lodge
Total

PAGE 109

1

6

4

12

-

4

19

21

15

15

6 600

1 716

2023

2022

2 519

336

16 794

8 138

1

1

1

1

(2)

(2)

19 312

8 474

2023

2022

Non-current payables to other group companies at year-end(EUR 1 000)
Non-current receivables from other group companies at year-end(EUR 1 000)

Silk Topco AS
Silk Midco AS
KVE Holding AS
Kirberg Shipping AS
Total

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Current payables to other group companies at year-end(EUR 1 000)

2023

2022

13

14

28

26

78

76

119

116

-

Silk Topco AS
Silk Midco AS
Totals

50 68620 000324 899

160 477375 585

180 477

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Note 28
Investment in subsidiaries
Ownership/

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Registered office

Owned directly by Hurtigruten Group AS
Hurtigruten Expeditions AS
Hurtigruten Expeditions Group Ltd
Hurtigruten Norway AS
Hurtigruten Global Sales AS
Hurtigruten Global Services AS
Hurtigruten Destinations AS
Hurtigruten Investments AS
Hurtigruten AS
Owned by subsidiaries of Hurtigruten Group AS
Hurtigruten Offshore Excursions AS
Hurtigruten Expedition Fleet AS
Hurtigruten Explorer AS
Explorer I AS
Explorer II AS
Hurtigruten Expedition Crew AS
Hurtigruten Expedition Cruises AS
Hurtigruten Expedition Technical Services GmbH
Hurtigruten Expeditions Hotel Support GmbH
Hurtigruten Expeditions Ltd

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 110

Oslo, Norway
London, UK
Tromsø, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway

Oslo, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway
Oslo, Norway
Hamburg, Germany
Hamburg, Germany
London, UK

Ownership/voting share

100%
100%
100%
100%
100%
100%
100%
100%

100%
100%
100%
100%
100%

Registered office

Hurtigruten Expeditions Cruises Ltd
Hurtigruten Expeditions Global Sales Ltd
Hurtigruten Coastal AS
Hurtigruten Sjø AS
Hurtigruten Coastal Fleet AS
MS Richard With AS
MS Nordlys AS
Hurtigruten Estonia OÜ
Hurtigruten GmbH
Hurtigruten Americas Inc.
Norwegian Coastal Voyage Ltd
Hurtigruten France SAS
Hurtigruten Australia Pty Ltd
Hurtigruten Ltd
Hurtigruten Asia Pacific
Hurtigruten Barents AS

100%
100%
50%
100%
100%

Hurtigruten Svalbard AS
Sollia Gjestegård Holding AS
Sollia Gjestegård AS

London, UK
London, UK
Tromsø, Norway
Tromsø, Norway
Tromsø, Norway
Tromsø, Norway
Tromsø, Norway
Tallinn, Estonia
Hamburg, Germany
Seattle, USA
London, UK
Paris, France
Melbourne, Australia
London, UK
Hong Kong
Kirkenes, Norway
Longyearbyen, Svalbard,
NorwayKirkenes, Norway
Jarfjord, Norway

voting share

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

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financial ­statements
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Note 29
Contingent liabilities and other commitments
As of 31 December 2023, no significant liabilities are expected to arise from contingent
liabilities that have not already been provided for in the financial statements. With reference
to note 26.

Guarantees
As of 31 December 2023 Hurtigruten Group had guarantees and letter of credit capacity of
EUR 136 million (of which EUR 9.4 million undrawn), including EUR 73 million of letter ofcredit facilities provided by banks which are credit supported by the ultimate shareholders of
the Group. Guarantees and letter of credit issued are mainly in connection to travel guarantee
schemes, tax bonds and other guarantees related to operations and payment collection.

Membership of the NOx Fund
Hurtigruten Coastal AS and Hurtigruten Expedition Cruises AS are members of the Confederation of Norwegian Enterprise's (NHO) NOx Fund. The main objective of the Environmental
Agreement concerning reductions of NOx and the NHO's NOx Fund is to reduce emissions of
nitrogen oxide. The Fund is a joint venture to which affiliated businesses can apply for support
for emission-reducing measures. Payment to the Fund replaces the nitrogen oxide tax for
affiliated businesses.
The Environmental Agreement for 2011–2017 was signed on 14 December 2010 by 15 industry
organisations and the Ministry of the Environment and was approved by EFTA's Monitoring
Body (ESA) on 19 May 2011. The Fund has reported that the targets for 2011–2016 were2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 111

met. On 24 May 2017, an extension to the NOx Agreement for the period 2018–2025 wassigned between the business organisations and the Norwegian Authorities. The extension
was approved by ESA on 2 February 2018. A second extension for the years 2026 and 2027
was signed in May 2022. This agreement is not yet approved by ESA.

Coastal service agreement with the ministry of transportation regarding CO2
emissions
As part of the requirements in the Norwegian coastal contract with the Norwegian Ministry ofTransport and Communications, the maximum level of CO2 emission is set to a total averageof 103 000 tonnes CO2 equivalents per year during the contract period from January 2021
to December 2030. To meet this requirement three vessels in the coastal fleet was planned
upgraded with new low emission engines and battery-hybrid power solutions. The Group
upgraded one ship in 2022, one in 2023, and will complete the upgrade programme with thelast ship in Q1 2025. This will significantly reduce the emission of CO2 equivalents throughout
the contract period.

Legal items
While acknowledging the uncertainties related to disputes and claims, the management is of
the opinion that based on the information currently available, these matters will be resolved
without any material adverse effects individually or in the aggregate on the Group's financial
position.

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financial ­statements
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financial statements

ESG Appendices

Note 30
Subsequent events
On 23 February 2024, the Company successfully completed a comprehensive recapitalisationtransaction, which involved:
1. injection of liquidity of EUR 185 million (on a net basis) through a combination of near-term
interest waivers and a new super senior secured opco facility in a principal amount of EUR
205 million, part of which was used to repay in full the interim financing provided to theCompany in a principal amount of EUR 74 million in December 2023;
2. restructuring of the Group's existing senior facilities into a new senior secured opco facilityof EUR 345 million (the “New Senior Facility”) and a new secured PIK holdco facility ofaround EUR 670 million (the “New Holdco Facility”);
3. restructuring of the existing senior unsecured bonds in a principal amount of EUR 50 million
originally issued by the Company such that these were converted into senior secured bonds
issued by Hurtigruten Newco AS, the parent company of the Company (the “Reinstated
SUNs”). The repayment of the Reinstated SUNs is subject to a payment waterfall such that
60% of the Reinstated SUNs rank pari passu with the New Holdco Facility and certain otherrestructured shareholder facilities, while the remaining 40% are subordinated to them; and4. shareholder facilities of about EUR 150 million were restructured, all of which aresubordinated to the New Senior Facility and approximately EUR 55 million of which aresubordinated to the New Holdco Facility and Reinstated SUNs. The maturity profile of thesefacilities was extended to provide additional support for the business.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 112

Responsibility statement
We confirm that, to the best of our knowledge, the consolidated financial statements for theyear ended 31 December 2023 have been prepared in accordance with IFRS as adopted by
the EU, that the financial statements for the parent company for the year ended 31 December
2023 have been prepared in accordance with the Norwegian Accounting Act, that they give atrue and fair view of the Company's and Group's assets, liabilities, financial position and resultsof operations, and that the Report of the Board of Directors gives a true and fair review of thedevelopment, performance and financial position of the Company and the Group and includes
a description of the principle risks and uncertainties that they face.
Oslo, 30 April 2024
The Board of Directors of Hurtigruten Group AS
Trygve Hegnar /s
ChairmanPetter Anker Stordalen /s
Board member
Kennet Jarl Andersen /s
Board member
Daniel Skjeldam /sCEOA message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendicesparent company financial statements 2023
STATEMENT OF income(EUR 1 000)

note

2023

2022

Salaries and personnel expenses
Other operating expenses
Net other gains/(losses)
Operating profit/(loss)

11(1 288)(2 344)3(9 166)

(551)

600

10 281(9 853)

7 386

Financial income
Financial expenses
Net foreign exchange gains/(losses)
Net financial items

4

42 63912 0614(189 686)(88 603)

4

Net income before tax
Income taxes
Net income

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 1135(12 582)(5 343)(159 629)(81 885)(169 482)(74 499)(0)

11 407(169 482)(63 092)

A message from the CEO
About the GroupSTATEMENT OF FINANCIAL POSITIONESG Reporting(EUR 1 000)

Report of the Boardof Directors

AssetsFinancial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendicesnote

31.12.2023

31.12.2022(EUR 1 000)

Non-current assets
Deferred income tax asset
Investments in subsidiaries
Other non-current receivables, related parties
Investments in other companies
Total non-current assets
Current assets
Other current receivables
Current receivables, related parties cash pool
Other current receivables, related parties
Current derivative financial instruments
Cash and cash equivalents
Total current assets

5

38 86338 9076841 283841 2837

540 270499 283-

2 230

1 420 416

1 381 703

38

(2)

8

179 268

43 886

7

14 499

5 485

678

2 773

35 606

17 621230 089

69 762

1 650 505

1 451 465

8Equity attribute to owners of the parent
Share capital
Additional paid-in capital
Other equity
Retained earnings
Total equity
Liabilities
Non-current liabilities
Non-current interest-bearing liabilities
Non-current interest-bearing liabilities, related parties
Total non-current liabilities
Current liabilities
Trade and other payables
Trade and other payables, related parties
Current liabilities related parties, Cash pool
Current interest-bearing liabilities
Current interest-bearing, related parties
Total current liabilities
Total equity and liabilities

Oslo, 30 April 2024
The Board of Directors of Hurtigruten Group AS

PAGE 114

Trygve Hegnar /s
Chairman

31.12.2023

31.12.2022

Equity and liabilities

Total assets

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

note

Petter Anker Stordalen /s
Board member

Kennet Jarl Andersen /s
Board member

Daniel Skjeldam /s
CEO

9

9

185 196

185 196(3 076)(3 076)(411 516)(241 990)

9(229 386)(59 861)10

987 921783 8457, 10

324 899

160 477

1 312 820

944 322

3 837

1 397

7

2 358

8

8

399 451345 83810

36 101

191 1167

125 325

28 644567 071567 004

1 650 505

1 451 465

A message from the CEO
About the GroupSTATEMENT OF CASH FLOWESG Reporting(EUR 1 000)

Report of the Boardof Directors

Cash flows from operating activities
Net income before tax
Income tax paid
Interest paid

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Adjustments for
Net foreign exchange gains/(losses)
Net gains/(losses) derivatives
Net financial expenses

Cash flows from financing activities
Proceeds from shareholder loan
Net change in cash pool liabilities
Placement fee and other financial expenses paid
Net cash inflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the year

PAGE 115

10

4

Change in working capital
Trade and other receivables
Trade and other payables
Net cash (outflow) from operational activities
Cash flows from investing activities
Change in net lendings to related parties
Net change in cash pool receivable
Proceeds from sale of financial assets
Net cash (outflow) from investing activities

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

note

Of which restricted cash

2023

2022

(169 482)(74 499)140-(73 612)(34 785)

12 376

5 420

2 098

(2 773)147 047

76 60056(2 477)(7 086)(4 632)(14 851)(2 362)7(50 684)(428 590)

8(135 382)

132 158

1 669-(184 396)(296 432)

7, 10

258 989

150 000

8

53 611

169 79610(21 756)(3 659)217 232

281 352

17 985(17 442)

17 62035 06335 60517 621--

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesNotes to the parent company financial statements
Note 1
GENERAL INFORMATION AND ACCOUNTING PRINCIPLES
Hurtigruten Group AS is owned by Silk Midco AS and the ultimate Norwegian parent company
Silk Topco AS, headquartered at Langkaia 1 in Oslo. Hurtigruten Group AS is the parent of
Hurtigruten Group. The consolidated Group financial statements can be downloaded from thefollowing website: hurtigruten.no. The purpose of Hurtigruten Group AS is being the Group's
Treasury, and holding the direct ownership of Hurtigruten Norway AS, Hurtigruten Expeditions
AS, Hurtigruten Destinations AS and Hurtigruten Global Sales AS which operate the main
activities of the Group.
The Group's consolidated financial statements contain the description of the Group's operating
activities. The financial statements of Hurtigruten Group AS for the year ended 31 December
2023 were authorised for issue by the Board of Directors on 29 April 2024.

Basis of preparation
The financial statements of Hurtigruten Group AS have been prepared in accordance with
the Norwegian Accounting Act and Norway's generally accepted accounting principles. The
accounting principles set out below have been applied in preparing the financial statements
for the year ended 31 December 2023 and the comparative information presented in thesefinancials.
The accounting principles described in this section are applied to the company HurtigrutenGroup AS only and do not describe the principles applied to the Hurtigruten Group consolidated statements and notes.

Use of estimates
Preparation of the accounts in accordance with generally accepted accounting principles
require that management makes estimates and assumptions which have an effect on thevalue of assets and liabilities in the balance sheet and reported revenues and expenses for theaccounting year. The ultimate values realised may deviate from these estimates.
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 116

Foreign currency translation
The financial statements are presented in euro (EUR) which has been the functional currencyof the parent company since 1 January 2020. The change was made to reflect that EUR is the
predominant currency in the Company, accounting for a significant part of the cash flow andfinancing.
All foreign currency translations are converted to EUR at the transaction date. All monetary
items denominated in foreign currency are translated at the exchange rate at the balance sheet
date. Derivates designated as hedging instruments in fair values hedges are measured at fairvalue. Other non-monetary items in foreign currencies recognised in accordance with the cost
method are translated to EUR using the exchange rate applicable on the transaction date.
Gains and losses resulting frem changes to exchange rates are recognised in the statement of
profit and loss as they occur during the accounting period.

Investment in subsidiaries and associated companies
Investment in subsidiaries and associated companies are recorded in accordance with the cost
method, less any impairment losses. An impairment loss is recognised if the impairment is notconsidered temporary and reversed in later periods if the reason for the impairment loss in nolonger present.
Dividends, group contributions and other distributions from subsidiaries are recognised in thesame year as they are recognised in the financial statement of the provider. If dividends/groupcontribution exceeds withheld profits after the acquisition date, the excess amount represents
repayment of invested capital, and the distribution will be deducted from the recorded value ofthe acquisition in the balance sheet for the parent company.

Classification principles
Assets intended for permanent ownership or use and receivables that mature more than one
year after the end of the accounting year are classified as non-current assets. Other assets areclassified as current assets.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesLiabilities that fall due later than one year after the end of the accounting year are classified as
non-current liabilities. Other liabilities are classified as current liabilities.

Income taxes
The tax expense consists of incom taxes payable and deferred tax. Deferred tax is recognised
in respect of all temporary differences and accumulated tax losses carried forward at thebalance sheet date which implies increased or decreased tax payable when these differences
reverse in future periods.
Current tax is calculated in accordance with the tax laws and regulations enacted or substantively enacted at the balance sheet date. Management periodically evaluates positions taken intax returns with respect to situations in which applicable tax laws are subject to interpretation.
Based on management's assessment, a provision is made for expected tax payments whennecessary.
Deferred tax is calculated on all temporary differences between the tax values and financial
values of assets and liabilities. Temporary differences are differences between taxable profit
and results that occur in one period and reverse in future periods. Deferred tax is calculated
by applying the nominal tax rate to temporary differences and accumulated tax losses carriedforward. Deferred tax assets are recorded in the balance sheet when it is more likely than notthat the tax assets will be utilised. Taxes payable and deferred taxes are recognised directly inequity to the extent that they relate to equity transactions.
Deferred income tax assets and deferred income tax liabilities are recognised net to the extent
that there is the ability and intention to realise the assets and settle the liabilities simultaneously.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 117

Accounts receivables and other receivables
Accounts receivable and other current receivables are recorded in the balance sheet at nominal
value less provisions for doubtful accounts.

Derivatives and hedging
The Company has entered into derivative contracts for bunker oil to hedge the Group's exposure against bunker oil prices (cash flow hedge). Hedges are initially recognised at fair value on
the date a derivative contract is entered into and are subsequently re-measured at fair value on
an ongoing basis in the Statement of Financial Position. Any gains or losses on remeasurement
are recognised in the Income Statement.

Statement of cash flow
The cash flow statement is presented using the indirect method. Cash and cash equivalents
include cash and bank deposits.

Note 2
FINANCIAL RISK MANAGEMENT
The company is covered by the Group risk management strategy. Further information can befound in the Group consolidated financial statements, note 4.

A message from the CEO
About the GroupESG Reporting

Note 3OTHER OPERATING EXPENSES(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG AppendicesInsurance premiums
Legal services
Other services
Other general expenses
Total other operating costs

PAGE 118

2023

2022

242

8

5 440

325

3 243

162

1 528

2 399

10 454

2 895

Auditors' remuneration(EUR 1 000)

Statutory audit
Other assurance services
Other non-assurance services
Tax consultant services
Total
VAT is not included in the fees specified above.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

NOTE 4NET FINANCIAL ITEMS

2023

82

2022

(EUR 1 000)Interest income, related parties
Interest from cash pool
Other financal income
Financial income
Interest expenses, related parties
Interest expenses
Other financial expenses
Financial expenses

2023

2022

42 582

4 635

-

7 368

57

57

42 63912 061(33 340)(16 418)(153 858)(70 876)(2 488)(1 309)(189 686)(88 603)

57

-

-

4

2

-

-

85

60

Foreign exchange gains
Foreign exchange losses
Net foreign exchange gains/(losses)

56 15713 185(68 739)(18 528)(12 582)(5 343)

Net financial items(159 629)(81 885)

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

NOTE 5
INCOME TAXES
Income tax recognised in profit or loss
2023

Current taxes
Deferred taxes
Total income taxes

140

-

(140)

(11 407)(0)(11 407)

Consolidated
financial ­statements

Reconciliation of income tax (expense)/benefit

Parent company
financial statements

Profit/(loss) before taxes

ESG AppendicesDeferred tax assets and deferred tax liabilities(EUR 1 000)

(EUR 1 000)

Expected income taxes 22% of profit before tax
Tax effect non-deductable expenses and non-taxable income
Tax effects of changes in unrecognised deferred tax assets
Total income (taxes) benefit
Effective tax rate

2022

2023

2022

(169 482)(74 499)37 286

16 390(10 740)(6 174)(26 546)

1 191

(0)

11 407(0)0

Non-deductible expenses in 2023 are related to interest's limitation rules and currency­translation effects from EUR functional currency in financial statements to NOK tax returns.

(EUR 1 000)

Tax oss carry forward
Deferred tax asset
Unrecognised deferred tax for tax loss carried forward
Deferred tax assets recongnised
Netting
Net Deferred tax assets recognised
Group contribution
Other current and non-current items
Derivatives
Deferred tax liabilities
Netting
Net Deferred tax liabilities
Carrying value of defered tax asset
Carrying value of deferred tax liability
Net deferred tax asset/(liability)

31.12.2023

31.12.2022

57 83840 60557 83840 605(16 584)-

41 25440 605(2 391)(1 698)38 86338 907

-

140

2 242

949

149

609

2 391

1 698

(2 391)(1 698)00

38 86338 907--38 86338 907The deferred income tax assets relating to tax losses carried forward are recognised in thestatement of financial position to the extent that the Company can utilise the tax losses carriedforward against future group contributions and specific taxable profits in subsidiaries.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 119

A message from the CEO
About the Group

Movements in net deferred tax assets and deferred tax liabilities

ESG Reporting

31 December 2023

Report of the Boardof Directors

Gross tax

Net tax

Unrecon-loss carriedloss carriedgnised tax

Recognised(EUR 1 000)

forwardforwardlossesdeferred tax

NorwayTotal tax losses carried forward

262 900

57 838(16 584)

41 254262 900

57 838(16 584)

41 254

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Gross tax

Net tax

Unrecon-loss carriedloss carriedgnised tax

Recognised(EUR 1 000)

forwardforwardlossesdeferred tax

NorwayTotal tax losses carried forward

184 568

40 605-40 605

184 568

40 605-40 60531 December 2022

NOTE 6
investments in subsidiaries
Total equity

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 120

as at 31

Net result

Ownership/

Decemberfor the year

(EUR 1 000)

Registered officevoting share

2023

2023

Book value

Hurtigruten Expeditions AS
Hurtigruten Norway AS
HR Investments AS
Hurtigruten Global Sales AS
Hurtigruten Global Services
Hurtigruten AS
Hurtigruten Destinations AS
Net

Oslo, Norway

100.0%

326 593(12 102)338 351

Oslo, Norway

100.0%

154 064(23 744)176 840

Oslo, Norway

100.0%(9 711)(8 047)5

Oslo, Norway

100.0%

31 129(11 573)

312 163

Oslo, Norway

100.0%

579(1 437)

5 644

Oslo, Norway

100.0%

2 864

32

39

Oslo, Norway

100.0%

6 798

(667)

8 242
841 283

No impairment of investments in subsidiaries has been recognised in the financial statements of Hurtigruten Group AS per 31 December 2023.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

NOTE 7
RELATED PARTy transactions
Transactions with Group companies(EUR 1 000)

PAGE 121

2023

2022

Non-current receivables(EUR 1 000)

Purchase of services
Hurtigruten Global Servies AS
Purchase of services
Interest income
Hurtigruten Global Sales AS
MS Richard With AS
MS Nordlys AS
Hurtigruten Investements AS
Hurtigruten Expeditions AS
Hurtigruten Norway AS
Total interest income
Interest expenses
Hurtigruten Global AS
Silk Midco AS
Silk Topco AS
MS Richard With AS
Total interest expenses

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Balances with companies in the same group and related parties

33

35

33

35

MS Richard With AS
MS Nordlys AS
Hurtigruten Expeditions Technical Services GmbH
Hurtigruten Investements AS
Hurtigruten Expeditions AS
Hurtigruten Norway AS
Total non-current receivables

-

1 072

3 595

1 567

1 328

869

1 869

1 128

11 993-Current receivables

23 797-(EUR 1 000)

42 582

4 635

-

-

(32 072)(16 418)(1 113)

-

(155)

-

(33 340)(16 418)

Hurtigruten Coastal Crew AS
Hurtigruten Ltd
Silk Topco AS
Hurtigruten Coastal Fleet AS
Explorer 1 AS
MS Richard With AS
MS Nordlys AS
Hurtigruten Offshore Excursions AS
Hurtigruten Expeditions AS
Hurtigruten Expedition Cruises AS
Hurtigruten Expedition Crew AS
Kleven Prosjekt 401 AS
HRG NewCo Holding AS
Hurtigruten Global Sales AS
Hurtigruten Norway
Other
Total trade and other current receivables

2023

2022

43 32043 43620 13916 69650

50

23 86921 999151 763

139 770301 129277 332

540 270499 283

2023

2022

17

-

542

1

4 912

7

606

-

663

571

172

22

274

22

28

-

32

-

3 036

-

18

-

19

16

13

11

4 150

4 150

-

638

17

47

14 4995 485

A message from the CEO
About the Group

Non-current payables(EUR 1 000)ESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Silk Midco AS
Total non-current payables due to Group companies

2023

2022

324 899

160 477

324 899

160 477

NOTE 8
Cash, cash pool and cash equivalents
The company holds the following balances categorised as cash and cash equivalents(EUR 1 000)

2023

2022

Trade payables and other current payables(EUR 1 000)

Hurtigruten Coastal Crew AS
Slik Topco AS
Hurtigruten Global Services AS
Hurtigruten Global Sales AS
TDR Capital III Holdings L.P.
Total trade payables and other current
payables due to Group companies

2023

2022

Cash and bank deposits in cash pool
Adjustment to prior year reported cash 1)
Total cash and cash equivalents

35 605240 832(223 211)

35 60517 621

(1)

(1)

101

-

-

6

allocation of cash pool balances. Previously, only the bank accounts directly allocated to the Company-

4were included. The restatement reflects the Company's ownership of the entire cash pool, resulting in a

2 258

1)

The amount reported in the prior year for cash and cash equivalents is restated to correct an error in thecomprehensive depiction of the Company's liquid resources. This adjustment ensures consistency withthe current year's reporting method and aligns with best practices for financial disclosure.

2 358

8

Cash pool – receivables
Current payables(EUR 1 000)

Silk Midco AS
Silk Topco AS
MS Richard With AS
Hurtigruten Global Sales AS
TDR Capital III Holdings L.P.
Total non-current payables due to Group companies

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 122(EUR 1 000)
2023

2022

16 7938 137

52 86820 50635 663-1-

20 000-125 325

28 643

Hurtigruten Norway AS
Hurtigruten Coastal AS (H. Cruise AS)
Hurtigruten Coastal Fleet AS
Hurtigruten Expeditions AS
Hurtigruten Expedition Crew AS
Hurtigruten Expeditions Hotel Support GmbH
Hurtigruten Expedition Cruises AS
Hurtigruten Offshore Excursions AS EUR
Hurtigruten Expedition Fleet AS EUR
Hurtigruten Investments AS (EUR)
Sollia Gjesteg rd Holding AS (Arctic Secret Holding AS)
Hurtigruten Barents AS
Hurtigruten Destinations AS (Onshore Operations AS)
Sollia Gjesteg rd AS
Total receivables – cash pool

2023

2022

6 950

6 090

13 3195 982

18 446109

17 915

7 035

23 418

1 863

231

311

90 74021 418

530

1

-

868

6 410

-

449

174

39

29

711

-

110

4

179 268

43 886

A message from the CEO
About the Group

Cash pool – payables(EUR 1 000)ESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Hurtigruten Coastal Crew AS (H. SjAS)
Explorer 2 AS
Hurtigruten Expedition Fleet AS EUR
Hurtigruten Svalbard AS
Hurtigruten Global Sales AS (H. AS)
Hurtigruten GmbH
Hurtigruten Ltd
Hurtigruten France
Hurtigruten Americas, Inc
Hurtigruten Global Services AS (H. Pluss)
Hurtigruten Investments AS (EUR)
Hurtigruten AS (HRG Eiendom)
Hurtigruten Destinations AS (Onshore Operations AS)
Total receivables – cash pool

2023

2022

22 8128 601

114 973

117 845

20 844

-

7 027

7 455

94 706

106 687

1 918

9 391

64 48133 86213 7347 618

33 76114 38922 33516 934-20 089

2 860

2 954

-

15

399 451345 838

NOTE 9SHARE CAPITAL
Attributable to shareholders of Hurtigruten Group AS(EUR 1 000)

1 January 2022
Net income
Other changes
31 December 2022
Net income
Other changes
31 December 2023

Additional

Other

Retained

Share capital paid-in capitalreserves

earnings

Total Equity(3 076)(178 841)

3 289(63 092)(63 092)9

185 196-9

185 196

-

(57)

(57)

(3 076)-241 991(59 861)(169 482)(169 482)9

185 196(3 076)

(42)

(42)

(411 515)(229 386)

Number of Shareholding

Shareholders

shares(%)

Silk Midco AS

30

100

All shares carry the same rights in the Company.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 123

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

NOTE 10INTEREST-BEARING LIABILITIESClassification of interest-bearing libilities(EUR 1 000)

SecuredTerm loans
Revolving credit facilities
Transaction cost at amortised cost – (secured)
Total non-current interest-bearing secured liabilities
UnsecuredGreen Bond EUR 50 millions
Transaction cost at amortised cost – (unsecured)
Shareholder loan, non-current
Total non-current interest-bearing unsecured liabilities
Total non-current interest-bearing liabilities
SecuredTerm loans
Transaction cost at amortised cost – (secured)
Accrued interest external financing
Total secured current interest-bearing liabilities

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 124

Listed bonds
Green bond
31.12.2023

31.12.2022

946 133655 000-

85 000(7 423)(4 637)938 710735 363

50 00050 000(790)(1 518)324 899

160 477374 110

208 959

1 312 820

944 322-176 500

Other interest-bearing liabilities

Term Loan B (TLB), and Revolving Credit Facility (TLB1)(1 420)(2 090)37 521

16 70636 101

191 11640 540-On 13 April 23 the Group completed certain amendments to the terms of the Term loan B(TLB) EUR 655 million and the EUR 85 million Revolving Credit Facility (RCF) under thesenior facilities agreement originally dated 9 February 2018 (the “SFA”). The maturities under
the RCF and TLB were extended from February 2024 and February 2025 to February 2026
and February 2027 respectively. The margin under the TLB was increased to 6.50% withadditional 100bps annual margin step-ups from November 2024 (and in certain circumstances
step-downs). The margin under the RCF was increased to 6.25% with additional 100bps
annual margin step-ups from November 2024 (and in certain circumstances step-downs). In
addition, the RCF was converted into a separate term loan (TLB1). As part of the transaction
the ultimate shareholders of the Group provided an additional EUR 80 million of funding. The
TLB and TLB1 loans hold the same security package including mortgage over 9 vessels andrank pari-passu.

Term Loan C, Term Loan D refinanced with Senior secured Notes Facility

Unsecured
Shareholder loan, current
Current interst-bearing liabilities, related parties
Accrued interest shareolder loan/related parties
Total unsecured current interest-bearing liabilities

49 27728 644125 325

28 644

Total current interest-bearing liabilities

161 426

219 760

1 474 246

1 164 082

Total interest-bearing liabilities

The EUR 50 million green bond was listed on the Oslo Stock Exchange with ISIN: NO
0012436270 on 18 July 2022. The listed bonds are unsecured and bear a fixed coupon of 11%
and mature in February 2025. Net proceeds from the bond were used to finance the upgradeof 3 ships in the Hurtigruten fleet to battery-hybrid power. Certain amendments were madeto the bond terms as part of the recapitalisation transaction announced in December 2023.
Reference to note 13 Subsequent events for further details.

35 508On 4 April 2023 the Group completed the issuance of a new EUR 200 million 5-year notes
facility agreement (the “NFA”) maturing in February 2028. The net proceeds were applied
towards refinancing in full the EUR 176.5 million existing term loans (TLC and TLD) maturingin June 2023. The notes facility was priced at E+600bps cash coupon and 600bps PIK coupon,holds the same security package and ranks pari passu with the TLB and TLB1 under the SFA.
In connection with the new notes facility, a synthetic warrant instrument was issued by Silk
Topco AS in respect of a small minority of its fully diluted equity for cash consideration of EUR
17.5 million (cash proceeds from which were made available in full to the Group).

A message from the CEO
About the Group

Other interest-bearing liabilities

Employee retirement benefit plans

ESG Reporting

During 2023 the Group received additional EUR 182.5 million in loans from its ultimate
shareholders.

The company operates both defined contribution and defined benefit pension schemes as wellas mandatory occupational pension plans . These plans for Norwegian companies satisfy therequirements stipulated in the Norwegian Mandatory Occupational Pension Act.

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Pledges
The security packages under the Senior Secured Facility Agreement (SFA: TLB and TLB1) andthe Senior Notes Facility Agreement (NFA) include mortgage over 9 owned vessels, pledge ofshares in subsidiaries and assignment of intercompany loans and insurances.
(EUR 1 000)

31.12.2023

31.12.2022

Book value of assets pledged as security

1 396 052

1 345 910

Board of directors
The Board of Directors have waved their annual compensation for 2023.

NOTE 12
GOING CONCERN
As of 31 December 2023, the Group had successfully returned to normal
operations bringing the full fleet of vessels back online during the first halfof 2023.

NoTE 11
Salaries and personnel expenses(EUR 1 000)

2023

2022

Wages and salaries
Payroll tax
Pension costs
Other benefits
Total salaries and personnel expenses

427

1 381

234

301

Average number of full-time equivalents

30

10

597

651

1 288

2 344

1

1

Daniel Skjeldam served as the sole full-time employee in the parent company throughout 2022.
In August 2023, Mr. Skjeldam's employment transitioned to another entity within HurtigrutenGroup. For further information please see Hurtigruten Group Financial statements and notes;
Note 8 Salaries and personnel expenses, note 9 Management and auditor's remuneration andnote 25 Employee retirement benefit plans.

In the opinion of the Board of Directors, the underlying fair value of Hurtigruten Group’s vessels
and brands is significantly higher than the book value and the recapitalization transaction
completed in February 2024 has improved the fair value equity position by a conversion of
EUR 70 million and a subordination of loan of EUR 720 million (book equity as of 31 December
2023 amounted to EUR 859 million negative). As of 31 December 2023, Hurtigruten Group
had an available free liquidity position of EUR 48 million. On 23 February 2024, the Company
successfully implemented a comprehensive recapitalisation transaction with its senior lenders,
its shareholders, and senior unsecured note holders. This transaction support a positive movement in equity value of EUR 70 million via novation and equitization of select interest and debt
facilities. In addition, the outstanding loans to parent entity, Hurtigruten Newco AS, amounting
to a total of EUR 720 million will be subordinated to any other loans in Hurtigruten Group.
Therefore, the amount of EUR 720 million should also be included as equity when determining
the actual value of group equity before future cash flow potential is taken into consideration.
The recapitalisation transaction involved:

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 125

1. injection of liquidity of EUR 185 million (on a net basis) through a combination of near-term
interest waivers and a new super senior secured opco facility in a principal amount of EUR

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices205 million, part of which was used to repay in full the interim financing provided to theCompany in a principal amount of EUR 74 million in December 2023;
2. restructuring of the Group’s existing senior facilities into a new senior secured opco facilityof EUR 345 million (the “New Senior Facility”) and a new secured PIK holdco facility ofaround EUR 670 million (the “New Holdco Facility”);
3. restructuring of the existing senior unsecured bonds in a principal amount of EUR 50
million originally issued by the Company such that these were converted into senior secured
bonds issued by Hurtigruten Newco AS, the parent company of the Company (the “Reinstated SUNs”). The repayment of the Reinstated SUNs is subject to a payment waterfall
such that 60% of the Reinstated SUNs rank pari passu with the New Holdco Facility andcertain other restructured shareholder facilities, while the remaining 40% are subordinatedto them; and4. shareholder facilities of about EUR 150 million were restructured, all of which aresubordinated to the New Senior Facility and approximately EUR 55 million of which aresubordinated to the New Holdco Facility and Reinstated SUNs. The maturity profile of thesefacilities was extended to provide additional support for the business.
This recapitalisation transaction will enable the Hurtigruten Group to implement the separationof the business into our expeditions business, which would have the largest expeditions fleet
in the world, and our prestigious Norwegian cruise business, and this separation is permitted
under the terms of the New Senior Facility, New Holdco Facility and Reinstated SUNs.
As at the date of this report, the Group is actively looking to refinance the EUR 300 million
Explorer II bond which will mature in February 2025. Current bond outstanding is EUR 271
million as at April 2024 following amortization which began in early 2024.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 126

Based on the Group’s outlook and plans for the next 12 months (in particular given thecompletion of the recapitalisation transaction outlined above), the Board of Directors, on theassumption that the Group is able to successfully refinance the EUR 300 million Explorer II
bond, have a reasonable expectation that the Group has adequate liquidity for the 12-month
period from the date of this report, and (ii) given the benefits of the recaptalisation transaction
and the support of its lenders and shareholders thereunder, resources to continue operations
for the foreseeable future. The Board of Directors also believe there are strategic options available, if required, to ensure the going concern of the Hurtigruten Group in the foreseeable future.

As a result, and in accordance with the Norwegian Accounting Act, the Board of Directors confirms that the financial statements have been prepared in accordance with the going concern
assumption, and that it is appropriate to make this assumption.

NOTE 13SUBSEQUENT EVENTSOn 23 February 2024, the Company successfully completed a comprehensive recapitalisationtransaction, which involved:
1. injection of liquidity of EUR 185 million (on a net basis) through a combination of near-term
interest waivers and a new super senior secured opco facility in a principal amount of EUR
205 million, part of which was used to repay in full the interim financing provided to theCompany in a principal amount of EUR 74 million in December 2023;
2. restructuring of the Group's existing senior facilities into a new senior secured opco facilityof EUR 345 million (the “New Senior Facility”) and a new secured PIK holdco facility ofaround EUR 670 million (the “New Holdco Facility”);
3. restructuring of the existing senior unsecured bonds in a principal amount of EUR 50
million originally issued by the Company such that these were converted into senior secured
bonds issued by Hurtigruten Newco AS, the parent company of the Company (the “Reinstated SUNs”). The repayment of the Reinstated SUNs is subject to a payment waterfall
such that 60% of the Reinstated SUNs rank pari passu with the New Holdco Facility andcertain other restructured shareholder facilities, while the remaining 40% are subordinatedto them; and4. shareholder facilities of about EUR 150 million were restructured, all of which aresubordinated to the New Senior Facility and approximately EUR 55 million of which aresubordinated to the New Holdco Facility and Reinstated SUNs. The maturity profile of thesefacilities was extended to provide additional support for the business.

A message from the CEO
About the Group

Auditors report

ESG Reporting
Report of the Boardof Directors

Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
To the General Meeting of Hurtigruten Group AS

Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

Independent Auditor’s Report
OpinionWe have audited the financial statements of Hurtigruten Group AS, which comprise:••

the financial statements of the parent company Hurtigruten Group AS (the Company), which
comprise the statement of financial position as at 31 December 2023, the statement of income andstatement of cash flow for the year then ended, and notes to the financial statements, including asummary of significant accounting policies, andthe consolidated financial statements of Hurtigruten Group AS and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at 31 December 2023, thestatement of income, consolidated statement of other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flow for the year then ended,and notes to the financial statements, including material accounting policy information.

In our opinion•••

the financial statements comply with applicable statutory requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31
December 2023, and its financial performance and its cash flows for the year then ended inaccordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, andthe consolidated financial statements give a true and fair view of the financial position of the Groupas at 31 December 2023, and its financial performance and its cash flows for the year then endedin accordance with IFRS Accounting Standards as adopted by the EU.

Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required byrelevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.

••

is consistent with the financial statements andcontains the information required by applicable statutory requirements.

Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true andfair view in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
Management is responsible for such internal control as management determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and theGroup’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is not likelythat the enterprise will cease operations. The consolidated financial statements of the Group use the going
concern basis of accounting unless management either intends to liquidate the Group 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 arefree 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 will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of thesefinancial statements.For further description of Auditor’s Responsibilities for the Audit of the Financial
Statements reference is made to: https://revisorforeningen.no/revisjonsberetninger
Oslo, 30 April 2024
PricewaterhouseCoopers AS
Stig Lund
State Authorised Public Accountant(This document is signed electronically)

Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The otherinformation comprises information in the annual report, but does not include the financial statements andour auditor’s report thereon. Our opinion on the financial statements does not cover the information in the
Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there
is material inconsistency between the Board of Directors’ report and the other information accompanying
the financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appear to be materially misstated. We are required to report if there is a material misstatement in the Boardof Directors’ report or the other information accompanying the financial statements. We have nothing toreport in this regard.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 127

PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.noStatsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap

2/2

A message from the CEO
About the GroupDefinition of Alternative Performance Measures

Reconciliation of Alternative Performance Measures (APM)

ESG Reporting

The Group prepares and reports its consolidated financial statements in accordance with
IFRS® Accounting Standards as adopted by the European Union (EU) and additional requirements of the Norwegian Accounting Act.

(EUR 1 000)

Report of the Boardof Directors
Financial Statements
Consolidated
financial ­statements
Parent company
financial statements

ESG Appendices

In addition, the Group presents some Alternative Performance Measures (APMs) to enhance
the stakeholders understanding of the Group's performance. These measures do not have any
standardised definition in the IFRS standards and are therefore not necessarily comparable tothe calculation of similar measures used by other companies.
The APMs are reported in addition to but are not substitutes for the Group's consolidated
financial statements, prepared in accordance with IFRS. The APMs also provide measurescommonly reported and widely used by investors, lenders, and other stakeholders as anindicator of the Group's performance. The APMs are used in forecasting future periods, including assessing the Group's ability to incur and service debt including covenant compliance.
APMs are defined consistently over time and are based on the Group's consolidated financial
statements (IFRS)EBITDA is a measure of earnings before interest, taxes, depreciation, amortization, impairments and share of profit or loss from associated companies. The measure is useful forevaluating operating profitability and enables comparison to competitors.
EBITDA margin is EBITDA divided by total operating revenue and other income. This measureenables comparability of profitability relative to operating revenue and other income.
Normalised adjusted EBITDA is a measure of earnings before net other gains and losses, net
financial items, income tax expenses, depreciation, amortisation, impairment and share of profit
or loss from associated companies and adjusted for items which are deemed extraordinary,unusual or non-recurring. A measure of underlying long-term operating profitability excluding
effects of volatile operating expenses related to fuel derivatives, effects of non-cash balance
sheet currency revaluation and extraordinary or non-recurring items.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 128

EBIT is a measure of earnings before net financial items, income tax expense and share of
profit or loss from associated companies. This measure enables comparability of profitability
regardless of capital structure or tax situation.

Operating profit/(loss) to EBITDA
Operating profit/(loss)
Less Depreciation, amortisation and impairment
EBITDAEBITDA to EBITDA excluding other gains/(losses)
EBITDA
Less Net other gains/(losses)
EBITDA excluding other gains/(losses)
EBITDA excluding other gains/(losses)
to normalised adjusted EBITDA
EBITDA excluding other gains/(losses)
Less Net non-recurring expenses
Normalised adjusted EBITDA

2023

2022

(69 810)(108 550)(74 716)(73 357)

4 906(35 194)

4 906(35 194)

3 212

7 689

1 693

(42 882)

1 693(42 882)(31 006)(89 098)

32 70046 216

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

ESG
APPENDICESESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 129

Photo: Genna Roland/Hurtigruten

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 130

Appendix A:
Our Reporting Approach
About this report
Practical information about thisreportThis is Hurtigruten Group's first integrated
annual report and presents the ESG
performance of Hurtigruten Group for the2023 calendar year. Transparency is oneof our ESG values. To that end, we believe
it is important to be completely open with
our stakeholders about our impacts, and
we also hope this provides opportunities forfurther inspiration and change. That's why
we go far to be one the most transparent
players in our industry, and we hope to see
more companies do the same.
The report has been prepared in accordancewith the Global Reporting Initiative (GRI)
standards. In addition, we have added
disclosures from the Task Force on Climate-Related Financial Disclosures (TCFD)
and the Sustainability Accounting Standards Board (SASB) Cruise Line Standards.
To learn more, you can find all the standards
we report against in the indexes inAppendices F1, F2 and F3. The report ispresented for Hurtigruten Group, but also
includes specific data and information for
all companies within the Group, specifically:
HX Hurtigruten Expeditions, Hurtigrutenand Hurtigruten Svalbard. In addition, youwill find data and information about our
non-profit arm, Hurtigruten Foundation.

and material topics for Hurtigruten Group'sbusiness model and should reflect what
is of the highest importance both to ourstakeholders and to us as a business.

Materiality Assessment

Our material topics:• Emissions• Impact on nature• Great place to work
• Diversity & Inclusion• Health & Safety• Community impact• Responsible business• Data Privacy & Security

CSRD Preperation
We are currently working with on our Double Materiality Assessment to prepare next's
year reporting inline with the European
Sustainability Reporting Standards (ESRS).
This Double Materiality Assessment will bepresented in the 2024 annual report.

Stakeholder Engagement
Our materiality assessment was performedin the autumn of 2021. It is based on the
GRI Standards and has been approved by
our Board of Directors. We are basing thisreport on the same material topics. To readthe full overview of how we did our materiality assessment, please view Materiality
Assessment 2021 located under Reports
and Policies on our website.

Material topics
Our materiality assessment identified eightmaterial topics, falling under the umbrellaof environment, social and governance.
These topics represent the most relevant

Our topic guide – a systematic
approach using four ESG pillars
We love structure and want all ourreaders to quickly be able to dive into theseimportant topics without being an expert
or having to read the entire report fromend to end. We have created a systematic
approach to how this information is presented, which we call our topic guide. Each
topic guide should give you the high-levelmust-knows.
Last year we used our eight material topics
as structure, and this year we have createda new framework for how we communicate
ESG. This framework is based on ourmaterial topics but strives to highlight what
is most important to us. These topics are
emissions, nature, people and community.
Each of these pillars has its own chapter
where we provide information and answer
the following questions for each topic:
1) Why is it important for us?
2) What is/are our target/s?
3) How is it managed within Hurtigruten Group?
4) How did we perform in 2023?

Got feedback? Get in touch!
We aspire to be the most sustainable travel
operator in the world, pushing the industry's
boundaries for ESG. We believe transparency and accountability are key principles
in achieving this ambition, and we strive
to continuously listen, learn, and improve.
What's more, we gladly welcome feedback
from our stakeholders on our report.
For feedback, questions or comments tothis report please contact:
Rikke H. Jørgensen
VP Sustainability, Hurtigruten
rikke.joergensen@hurtigruten.com

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 131

Appendix B:
ESG Governance in Hurtigruten GroupWe want ESG to be an integrated part ofall processes and decisions in HurtigrutenGroup. Our approach is to have group-wide
involvement and the placing of ownershipwithin each of our business units to initiate
and drive programmes supporting our ESG
targets. We believe each of our business
units is best tasked with prioritising and­executing its own ESG objectives.
Our Board of Directors is the highest
governing body for ESG. It approves our
strategy, risk model and targets, andmonitors achievement. The group Executive
Teams is accountable for implementation,and they have endowed the Strategy Teams
with the responsibility of the ESG work. We
believe this is the right home to ensure ESG
is integrated into all processes and decision
making within the Group.

Board of Directors
Approves ESG targets and monitors that they are achieved.
Approves material topics and annual ESG report.

Chair: Trygve Hegnar
Chair of the Board of Directors Hurtigruten Group AS

Executive Management Team
Accountable for implementation of the ESG strategy, targets and reporting.

Chair: Daniel Skjeldam
Chief Executive Officer Hurtigruten Group AS

ESG Committee
Review and advise on ESG strategy, targets and reporting. Appointed by EMT.
Represents all companies in group.

Representatives from all business units in HurtigrutenGroup AS

Group Strategy & Transformation
SVP Group Strategy & Transformation (Reports to Group CEO) VP ESG

Responsible for group ESG strategy, reporting, targets andcoordination.

Business Units
Business Units responsible for driving and initiating ESG objectives and initiatives.
HX Hurtigruten ExpeditionsCEO
VP Sustainability & Industry Relations

Hurtigruten
CEO
Head of Sustainability & Public Affairs

Hurtigruten Svalbard
CEO

HX Hurtigruten Expeditions
Sustainability Team
Oversee and prioritize the sustainability
efforts in HX Hurtigruten Expeditions, andreport status on a monthly basis to the
management team.

Hurtigruten
Sustainability Team
Oversee and prioritize the sustainability
efforts in Hurtigruten, and report status on amonthly basis to the management team.

In addition, we have local sustainability
Squads in selected local office(s).

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program

Appendix C:
Partnerships
We believe collaboration is the way tomove boundaries, so we are proud of thepartnerships that help us deliver new,sustainable solutions. Across operations
we work with local food suppliers, excursion
providers, agents, ports and communities.
Here you can see some highlighted selected
partnerships and memberships.

Some highlighted partners:

Norwegian Institute for Water
Research (NIVA)UN Global
Compact Norway

ORCA

Science Based ­Target ­initiative

The University Centre in Svalbard(UNIS)

International Associationof Antarctica Tour Operators(IAATO)

Fjord Phyto at Vernet Lab (Scripps
Institution of Oceanography)

Association of Arctic Expedition
Cruise Operators (AECO)

California Ocean Alliance

SINTEF

Institute for Marine and Antarctic
Studies/University of Tasmania(IMAS/UTAS)DNVInstitute of Marine Research (IMR)

Norwegian Ship Owner's
Association

Western Washington University

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Polar Collective
Hold Norge Rent
DNT
Visit Svalbard
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 132

Volvo Penta
Norsk Reiseliv
Oceanize
BRIM

EVOY
WISTA Norway

Universidad de Los Andes

Penguin Watch (Oxford University)

OceanitesA message from the CEO

Science

About the GroupESG Reporting
Report of the Boardof Directors

Support real time research andcollect data from across theplanet while on your expedition
cruise and contribute toimportant scientific research.
These are our collaborators
and are the Citizen Science
Projects we support.

Financial Statements
Aurorasaurus

Collaborators:

ESG Appendices
A: Reporting approach

Western Washington
University

B: ESG GovernanceShripps Institutionof Oceanography

C: Partnerships

Universityof Oxford

D: ESG Risk Program

The Universityof the Andes

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Cruise#Science

Submit sightings of the Northern
Lights to contribute to a visibility
map, forecast validation andscientific research.

Collect samples from the local
environment so scientists canbetter understand the ecosystem of the Svalbard Islands.

EUROPENORTHAMERICANorth
P a c i fic
Ocean

North
Atlantic
Ocean

AFRICA

Universityof California Santa Cruz

Happywhale
Use your images tohelp marine biologists identify whales
by their markings andtrack them aroundthe globe.

The University Centrein Svalbard
Instituteof Marine Research

H: EU Taxonomy

The Arctic Universityof Norway

I: Policy Index

The Norwegian Institutefor Water Research

J: Glossary

ORCA
South
P a c i fi c
Ocean

Institute for Marine andAntarctic Studies (IMAS)

Bird observations

Measure seawatertransparency using
a Secchi Disk and submit your findings to aid
scientific research into
phytoplankton.

Worldwide

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 133

Help scientists track animals
throughout their lives byphotographing their tags andlogging location, date andtime data.

Create checklists of birdsightings, include species,
locations and dates, totrack populations and aid
research.

Seabird surveys with ASI

Oceanities

Collect samples andimportant data from polar
regions to assist scientists
studying climate change
impact on phytoplankton.

PolarTagSouth
Atlantic
Ocean

Universityof Tasmania

Fjord Phyto

Capture photos of cloudformations to complement
NASA’s satellite images
and help environmental
studies.

The Secchi Disk

Study

SOUTH
AMERICA

Globe Clode
Observerer

Help count and track penguin population changes bycontributing to the Antarctic
Site Inventory.

Sea SeaLeopard
Leopard Submit your images ofProject

leopard seals to contributeto studies into their behaviour, population dynamics
and conservation.

A
DR

KE

PA

SS

AG

E

ANTARCTICPENINSULAeBird

Log details of your birdsightings to aid research,monitor biodiversity andguide conservation.

Penguin Watch
Help scientist monitor
populations by counting
penguins on the millionsof images collected.

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Appendix D:
Hurtigruten Group ESG Risk Management Programme
Risk Management in­Hurtigruten Group
Hurtigruten Group is committed toproactive and effective risk management
to mitigate any adverse effects on ouroperations and waters we sail in, and to
identify and explore business opportunities.
The Group's risk framework and the roleof the Board of Directions are explained in
more detail in the Risk Management sectionof our Annual report.

Emissions

NatureIn this section we elaborate on our ESG
Risk program, including top identified risks
and associated mitigation plans per ESG
pillar for the Group.

Top risks

Mitigation

1.

Inability to reduce emissions (both our own and in the ­supply chain) by the amountand within the timeline needed due to immature technology, new regulations or
economic factors, will have a negative impact on the environment.

Emissions reductions and continuous monitoring and reporting across business
units to track progress towards targets and mapping the effect of initiatives.
Improved tracking and stronger collaboration with our supply chain to understand,track and reduce emissions.

2.

Limited visibility of future environmental and climate regulations, with uncertain
operational and economic impact make long term planning challenging.

We believe in collaboration and dialogue with the regulators, and work withorganisations across the industry to be an active stakeholder supporting
development of the right regulations.

3.

The nature of our business represents operational risks that can result in
unplanned emissions to the environment.

We are committed to the prevention of injury and ill health and to continuous
improvement of our Health and Safety management systems and performance.

1.

More extreme weather may lead to operational disruption and changes both shortand long term.

Procedures ensuring safe operations in bad weather. We cannot directly control
long-term risk development, but our most important mitigation is our efforts toreach zero emissions.

2.

The nature of our business represents operational risks that may result in
unplanned spills to the environment.

We are committed to the prevention of negative impact to both people and theenvironment, and to continuous improvement of our HSE management systems
and performance.

3.

Limited data to support our intuition about potential impacts on nature.

We have implemented a quantitative approach to track endangered species in theareas we operate and marine protected areas.

1.

Discrimination and harassment, especially based on gender, has an unfortunate
legacy in the maritime industry. Inability to sufficiently improve gender balance insenior leadership positions at sea and on land may prevent us from succeedingwith our mission.

Our Code of Conduct and DEI policy state how we work to stop all forms of
discrimination and harassment. A whistle blower mechanism is in place to uncover
any unwarranted behaviours and breaches of our policies. Our Board approved
gender targets guide focus and prioritisation in all business units.

2.

Working at sea involves inherent operational risk which may result in incidents
impacting both guests and crew.

We are committed to the prevention of injury and ill health and to the continuous
improvement of our HSE management systems and performance.

3.

Our increasingly global footprint also increases our exposure to human rights risks
in the supply chain.

As a global company we can have a positive social and economic impact on both
local and global businesses. We see our procurement standards and policies as a
strategic enabler for this work.

1.

Our license to operate in local communities is at risk if we don't deliver on our
strategy to support social and economic value creation in the communities we visit.

Our goal is to maximise the number of people positively impacted by our business.
We track the share of local purchasing and local suppliers in different regions.

2.

The loss of local communities due to social and economic factors.

We support local projects across destinations through Hurtigruten Foundation.

3.

Corruption risk related to donated funds from Hurtigruten Foundation to grassroot
projects in local communities.

Hurtigruten Foundation has a thorough selection, evaluation and reporting process.

H: EU Taxonomy
I: Policy Index

People

J: Glossary

Community

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 134

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

Appendix E:
Performance Datahurtigruten grouphurtigruten GroupKPI

ESG Appendices

Unit

2018

2021

2022

2023

EMISSIONS

A: Reporting approach
B: ESG Governance
C: Partnerships

Fleet Scope 1,2 and 3
Scope 1 (Direct CO2 Emissions)mt

241 506

135 015232 920231 720

Scope 1 (Direct CO2 Emissions) per guest*APCN

mt

0.13

0.13

0.13

0.12

Guest is measured as APCN (available passenger cruise night).

Scope 2 (Indirect CO2 Emissions)

mt

-

4 056

3 573

3 401

Emissions factors for shore power (electricity): Ministry of Transport, for purchased electricity; Hurtigruten
Svalbard: Rasmus Bøckman Project Leader Longyearbyen, Multiconsult.

Sum of Scope 1 & 2 Emissions

mt-

139 071236 493235 121SOx Emissions

mt

-

-

43

44

NOx Emissions

mt

-

-

4 593

2 359

Scope 3 Emissions

mt

-

-

127 804

165 309

Number of ships

#

-

-

14

14

Hybrid electric ships

#

-

-

4

5

MS Fridtjof Nansen, MS Roald Amundsen, MS Otto Sverdrup, MS Richard With, MS Kong Harald

Ships with shore power connectivity

#

-

-

14

13

All our ships have shore power connectivity.

Eletric tour boats

#

-

-

2

2

Kvitbjørn, MS Bard.

Electric snowmobiles

#

-

8

8

8

Only includes snowmobiles in Svalbard.

Electric buses used for excursions

#

-

1

0

5

Solar panel installations

#

-

2

2

4

Solar panels

#

-

139

Solar panels – Energy produced by solar panels

KWh-

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 135

Comment

Emission factors used for calculation: EU MRV, Norwegian Ministry of Climate and Environment.

The Scope 3 emissions have been estimated on a spend-based approach in line with the Greenhouse Gas
Protocol. Spends have been matched with Exiobase emission factors using the Ignite Procurement platform.
Categories 1 (purchased goods and services), 2 (capital goods), 4 (upstream transportation and distribution),and 6 (business travel) were covered, while purchases of fuel and electricity, as well as taxes and internaltransactions, were all excluded.

Electricity

139

788

17 40042 634

Individual panels.

A message from the CEO
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KPI

Report of the Boardof Directors

Scope 1 Energy Consumption fleet

Unit

2018

2021

2022

2023

GJ

-

1 997 296

3 103 050

3 130 288

Scope 2 Energy Consumption fleet

GJ-

80 5013195

0

Scope 1&2 Energy Consumption fleet

GJ-

2 077 797

3 106 244

3 130 289

Energy Consumption fleet heavy fuel oil

%

-

0

0

0

Energy Consumption fleet biofuels

%

-

10

0.3

1%

Comment

Energy Consumption

Financial Statements
ESG Appendices

Conversion factor used for MGO and Biofuel GJ/MT from the Norwegian Ministry of Transportation.
Shore power numbers for 2022 are lower due to more time spent at sea after restart post-Covid.
The increase is due to more vessels in operation in 2022 post-Covid.
We banned heavy fuel oil in our fleet more than ten years ago.

NATURE

A: Reporting approach

Water Management

B: ESG Governance

Water Consumption

m3

-

-

293 642301 165

C: Partnerships

Water bunkered

m3

-

-

154 039

142 447

Water is mainly bunkered in Norway where there is an abundance of water.

Water production

m3

-

-

125 170

157 828

Our expedition vessels, plus MS Trollfjord, are equipped with desalination systems to produce fresh waterfrom seawater.

Water consumption pr guest (APCN)

m3

-

-

0.17

0.15

Total waste produced

kg

-

-

4 200 470.6

3 661 482

Total waste produced pr guest (APCN)

kg

-

-

2.4

1.8

-

0.341

0.169

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Food waste per guest – ediblekg-

H: EU Taxonomy

Spills to the environment

#

-

-

6

4

I: Policy Index

Number of ships recycled

#

-

0

0

0

J: Glossary

Litter collected shoreside during ship operation

kg

-

-

2350

3251

Guests participated in Citizen Science Projects

%

-

15

60

88

Citizen Science Projects offered to guests [# of submissions]

# (#)

-

10 (NR)

13 (>15500)

20 [23677]

Science Collaboration Projects supported

#

-

6

18

31

Scientific Collaboration Cruise Nights

#

-

-

938

1887

External scientific publication & representations

#

-

-

14

72

* per APCN/GN (available passenger cruise night/guest night). Average is calculated using the averagecruise night for HRN and HRX and the guest night for the hotels of HRS.

* Total amount of edible food waste per guest as average of HRN, HRX, HRS.
Smaller spills to sea, all reported to the autorities

Litter collected during hikes, beach clean ups by the crew and/or guests during a sailing.

Science & Education

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 136

Average percentage of guests.
NR = not reported , The number of submissions is an "at least" value
Number of science projects we have supported in a year excluding citizen science projects (reported
seperately) and excluding science projects supported by the Hurtigruten Foundation.
Actual number of nights a scientific collaborator was onboard per calendar year.
External scientific representations comprise, amongst others, i) contributions to webinars, ii) presentations,iii) posters, iv) participation in conferences and travel shows, v) interviews, vi) discussion panels. Externalscientific publications comprise, amongst others, a) public annual reports, b) peer reviewed papers, c) thesis,d) web publication.

A message from the CEO
About the Grouphurtigruten GroupESG Reporting

KPI

Report of the Boardof Directors

MPAs that vessels sailed through (RBCS classed MPAs) – Global

Financial Statements

2018

2021

2022

2023

#

-

-

19

15

MPAs that vessels sailed through (RBCS classed MPAs) – Artic

#

-

-

0

5

MPAs that vessels sailed through (RBCS classed MPAs) – Atlantic

#

-

-

7

3

MPAs that vessels sailed through (RBCS classed MPAs) – Pacific

#

-

-

11

2

MPAs that vessels sailed through (RBCS classed MPAs) – Southern

#

-

-

1

5

Supported species per assessed IUCN Red list category: Total

#

-

-

64

≥ 627

Supported species per assessed IUCN Red list category: CriticallyEndagerend

#

-

-

2

≥9

Supported species per assessed IUCN Red list category: Endagered

#

-

-

4

≥ 13

Supported species per assessed IUCN Red list category: Vulnerable

#

-

-

8

≥ 21

Supported species per assessed IUCN Red list category: Near
Threatened

#

-

-

3

≥ 24

Supported species per assessed IUCN Red list category: Least
Concern

#

-

-

43

≥ 559

Supported species per assessed IUCN Red list category: Data
Deficient

#

-

-

1

≥3

Water saved

LTR

-

-

1 480 168

2 119 637

Washing detergent saved

LTR

-

-

5 147

7 363

Electricity saved

kWh

-

-

4 634

6 618

A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Green Stay savings

Employees

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Vessels sailed through Marine Protected Area Zones based on the "Regulated Based Classification System
Marine Protection". Note that only 287 zones are assessed on RBCS while 16 330 are not yet assessed.

Biodiversity

PEOPLE

PAGE 137

Comment

MPAs

ESG Appendices

GRI SASB TCFD

Unit

Total number of employees (FTE's)

#

2 514

2 730

3 276

3 534

Total number of thrid party workers

#

-

-

-

901

Employees working on ships

#

1 717

1 810

2 195

2 392

Numbers from projects supported by HRF and/or HX in 2023. Numbers are "at least" values. Species aresupported by reporting their presence or specific projects. Duplicate species have been removed from theGroup total resulting in unique supported species reported.

A message from the CEO
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Unit

2018

Employees working at our land-based offices#

797

Report of the Boardof Directors

Ratio working sea%-

Women on ships%-

Women in Hurtigruten Group/BU

%

43

eNPS

#

0

Turnover%9.8

Maritime Apprentices/Cadet#

178

Completed online/digital training sessions#

Average online/digital training per employee

Hours

Employees entitled to parental leave

Financial Statements
ESG Appendices
A: Reporting approach

2021

2022

2023

920

1 072

1 142

66/34

67/33

68

30

30

30

39

38

38

-8

8

4

29.7

21.6

5

110

134

154

4 472 (a)

5 007

5 138

All business units; (a) numbers were updated for 2021 from 15 000 to 4 472 to ensure alignment with 2022
following a system improvement. Furthermore, the training approach has been updated towards shorter andmore concise training sessions.

4.2 (a)3.6

3

All business units; (a) numbers were updated for 2021 from 5.5 to 4.2 to ensure alignment with 2022
following a system improvement. Furthermore, the training approach has been updated towards shorter andmore concise training sessions.

%

77

76

83

For all employees entitled to parental leave, local regulations apply and determine the length of the leave.

Employees covered by a collective bargaining agreement

%

43

67

72

Ratio of our highest paid individual to average salary in company

#

9.8

11.7

13.7

B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Comment

Number of trainees represents the HRN and HX fleet.

Diversity & Inclusion
Average age (in years)

#

39

38

39

39

H: EU Taxonomy

Nationalities

#

44

61

78

71

I: Policy Index

Gender Pay Gap: Land-based employees

%

83

87

84

81

Gender Pay Gap: Seafaring employees

%

N/A

N/A

N/A

N/A

Women in Executive Ledership Team (ELT)

%

38

50

37.5

33

Group Executive Leadership Team.

Women in senior leadership level

%

34

32

35

40

Measured as women in employee category senior leadership.

Women as Captains

%

0

4

3

3

Women as senior officers/leadership onboard

%

-

12

13

13

Age Distribution: Under 30 years

%

-

24

24

26

Age Distribution: 30–50 years

%

-

54

58

58

Age Distribution: Above 50 years

%

-

15

18

16

J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 138

Measured as women's average salary as a percentage of men's, mainly ascribed to more men in senior landbased positions. Correction done for 2022 to align methodology with rest of years reported.
There is no gender pay gap for seafarers in the same role, as all salary is based on CBA.

Master, Chief Officer, Hotel Manager, Chief Engineer, 2nd Engineer, Expedition Leader NIS.

A message from the CEO
About the Grouphurtigruten GroupESG Reporting

KPI

Unit

2018

2021

2022

Age Distribution: Age note defined

Report of the Boardof Directors

Age Distribution: Youngest employee
Age Distribution: Oldest employee

2023

%

-

6.5

0.3

0

#

-

-

18

15

#

-

-

74

82

LTIF

#

2.22

1.43

2.31

3.82

Incidents reported to NMA

#

0

15

9

16

Sick leave

%

-

7.0

8.3

7.5

A: Reporting approach

Port state control dententions

#

0

0

0

B: ESG GovernancePort statecontrol deficiencies (average per inspection)

#

4.6

1.4

1.4

C: Partnerships

COMMUNITY
6 (4)16 (11)30 (12)71(16)

Comment

Health and safety

Financial Statements
ESG Appendices

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Lost Time Incident Frequency, calculated based on a 24-hour exposure period;

Sickleave is only presented based on Hurtigruten

Definition is adapted to 'average per inspection' and 2021 value reported as per adapted definition.

Support
Number of projects supported through the Hurtigruten Foundation (incountries)#

Raised funds for Hurtigruten Foundation

Euro

-

-

365 511830 682

Donations to supported projects

Euro

44 000116 000

180 000

378 085

People positively impacted

#

7 500

62 211

252 566

Number of conservation programmes supported

#

12

17

Tons of plastic litter collected by supported projects

Kg

8 845

1 160

Number of locations cleaned by supported projects

#

5

1

Number of communities supported

#

13

44

Nr of local passengers#

114 184

105 775

Nr of cargo freightmt

58 87246 392

These are projects as part of the conservation programme as well as any additional non-conservational
projects.

Contains only science/nature conservation projects.

Green stay
Green Stays percentage%

15.0 (a)18.6

22(a) Average Q4 percentage as this was not available during the pandemic and was not measured in 2018.

Percent spending from local suppliers (F&B)

%

19

41

57

Share of spending in food & beverage category (F&B) from local suppliers, local is defined as produced insame country and delivered onboard. In 2021 and 2022 we only defined small local producers as local for
Hurtigruten, this methodology is updated in 2023 hence the massive increase.

Number of ports we purchase F&B locally from

#

15

31

46

Local value creation

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 139

A message from the CEO
About the Grouphurtigruten GroupKPI

ESG Reporting

Unit

2018

2021

2022

2023

Comment

RUNNING A RESPONSIBLE BUSINESS
Report of the Boardof Directors

Responsible business
Board Diversity

%

0

0

25

20

Expressed as percent women in Board. There has been a change to the BoD after the reporting date.

Corruption risk

#

2

0

0

5

Number of calls at ports that are the 20 lowest ranking in Transparency International's Corruption Perception
Index. Increased exposure to corruption risk reflects deployment to West Africa and corresponding number ofport calls in Guinea Bissau.

Fines

#

-

-

2

1

Facilitation payments

#

-

0

0

0

Completed Code of Conduct e-learning

#

-

-

189

1 184

Completed Code of Conduct e-learning

%

-

-

6

35

Privacy related complaints from external parties sent to the Data
Protection Officer

#

-

16

4

6

Mainly cases where customers have asked to be deleted from marketing registers, but we fail to follow up
and delete.

Data breaches reported to regulatory bodies

#

-

1

2

3

(a) In 2021, only data privacy complaints from externals to regulatory bodies were included in this overview.
From 2022, we have redefined this measure to also include self-reported data privacy breaches to regulatory
bodies. The number for 2021 is therefore adjusted from 0 to 1 to include one self-reported data privacy
breach.

Internally recorded data privacy breaches

#

16

14

20

Metric includes all types of data privacy breaches related to all types of data subjects. (In 2021 this metric
was limited to leaks or loss of customer data. 2021 data is therefore adjusted to reflect the new definition.)
There is an ambition to increase the number of internally recorded breaches as we believe there is asignificant number of unreported cases.

Data privacy training

min/
empl

2

14

16

Training time spent on our online GDPR training course for employees. A revised data privacy training course
was launched in 2022, hence the increase in time spent on training in 2022 and 2023.

Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 140-

Number of incidents where bribes have been requested.

A message from the CEO
About the Group

Performance Data

ESG Reporting

hurtigruten

Report of the Boardof Directors

hurtigruten
KPI

Financial Statements

Unit

2018

2021

2022

2023

Comment

EMISSIONS
Fleet Scope 1,2, and 3

ESG Appendices

Scope 1 (Direct CO2 Emissions)mt

212 286

107 145

131 325130 302

Scope 2 (Indirect CO2 Emissions)

mt

-

286

36

55

Sum of Scope 1 & 2 Emissions

mt-

107 431

131 361130 357

C: Partnerships

SOx Emissions

mt

-

-

18

31

D: ESG Risk Program

NOx Emissions

mt

3 873

2 303

2 046

1 103

Number of ships

#

-

7

8

8

Hybrid electric ships

#

-

0

1

2

MS Fridtjof Nansen, MS Roald Amundsen, MS Otto Sverdrup, MS Richard With, MS Kong Harald

Ships with shore power connectivity

#

-

-

8

8

All our ships have shore power connectivity.

Electric buses used for excursions

#

-

1

0

1

A: Reporting approach
B: ESG Governance

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Emission factors used for calculation: EU MRV, Norwegian Ministry of Climate and Environment.
Emissions factors for shore power (electricity): Ministry of Transport, for purchased electricity; Hurtigruten
Svalbard: Rasmus Bøckman Project Leader Longyearbyen, Multiconsult.

Electricity

H: EU Taxonomy

Energy Consumption

I: Policy Index

Scope 1 Energy Consumption fleet

GJ-

1 625 889.7

1 749 084

1 791 504

J: Glossary

Scope 2 Energy Consumption fleet

GJ-

13 7392 798

0Scope 1&2 Energy Consumption fleet

GJ-

1 639 628.7

1 751 882

1 791 504

Energy Consumption fleet heavy fuel oil

%

-

0

0

0

Energy Consumption fleet biofuels

%

-

12

0

1.6%

Water Consumption

m3

-

-

133 489

133 974

Water bunkered

m3

-

-

133 489

133 956

Conversion factor used for MGO and Biofuel GJ/MT from the Norwegian Ministry of Transportation.
Shore power numbers for 2022 are lower due to more time spent at sea after restart post-Covid.
The increase is due to more vessels in operation in 2022 post-Covid.
We banned heavy fuel oil in our fleet more than ten years ago.

NATURE
Water Management

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 141

Water is only bunkered in Norway where there is an abundance of water. Only exception is when in dockoutside Norway.

A message from the CEO
About the Grouphurtigruten

ESG Reporting

KPI

Unit

2018

2021

Water production

m3-

Report of the Boardof Directors

Water consumption pr guest (APCN)

m3-

Total waste producedkg

Food waste per guest – edible
Spills to the environment
Number of ships recycled

Financial Statements
ESG Appendices

2022

2023

-

n.a.

18 508

-

0.13

0.12

-

-

990 906

1 037 256

kg

-

0.110

0.073

0.065

#

-

4

6

3

#

-

B: ESG Governance

Water saved

LTR

1 120 688

Washing detergent saved

LTR

1 678

Electricity saved

kWh

5 431

E: Performance data tables
F: Indexes:

Per available passenger cruise night

Total amount of edible food waste per guest
Smaller spills to sea, all reported to the autorities

0Green Stay savings

D: ESG Risk Program

MS Trollfjord is equipped with desalination systems to produce fresh water from seawater.

Waste Performance

A: Reporting approach

C: Partnerships

Comment

PEOPLE
Employees
Total number of employees (FTE's)#-

Total number of thrid party workers#-

G: Green bond report 2023

Employees working on ships

#

-

893

1 096

1 303

H: EU Taxonomy

Employees working at our land-based offices

#

-

58

69

77

I: Policy Index

Ratio working sea

%

-

94/6

93/6

94/6

Women on ships

%

-

36

37

36

Women in Hurtigruten

%

-

37

37

36

Maritime Apprentices / Cadet

#

-

110

133

142

Average age (in years)

#

-

-

38

38

Nationalities

#

-

-

37

40

Women in Executive Ledership Team (ELT)

%

n/a

n/a

n/a

50

Hurtigruten Executive Leadership Team

Women in senior leadership level

%

-

-

50

42

Measured as women in employee category senior leadership

Women as Captains

%

-

6

6

4

GRI SASB TCFD

UN SDG

J: Glossary

951

1 174

1 380
21

Number of trainees / maritime apprentices represents the HRN fleet.

Diversity & Inclusion

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 142

A message from the CEO
About the Grouphurtigruten

ESG Reporting

KPI

Unit

2018

2021

2022

2023

Women as senior officers/leadership onboard%

Report of the Boardof Directors

Age Distribution: Youngest employee#-

Age Distribution: Oldest employee#

LTIF
Incidents reported to NMA

Comment

6

6

11

-

-

18

-

-

-

74

#

-

1.74

2.38

5

Lost Time Incident Frequency, calculated based on a 24-hour exposure period;

#

-

15

8

15

Definition is based on the NMA definition of Marine Casualties which includes serious injuries and loss,material damage or grounding/collision of the vessel.

Raised funds for Hurtigruten Foundation

Euro

-

-

-

178 919

Health and safety

Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships

COMMUNITY
SupportNr of local passengers

#

n/a

-

114 184

105 775

D: ESG Risk Program

Nr of cargo freight

mt

n/a

60 00058 87246 392

E: Performance data tables

Green stay

F: Indexes:

Green Stays percentage

%

-

-

17.2

20.5

GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Local value creation
Local vendors

#

230

370

495

Local vendors = Norwegian vendors

Percent spending from local suppliers (F&B)

%

35

43

71

Share of spending in food & beverage category (F&B) from local suppliers, local is defined as produced insame country and delivered onboard. In 2021 and 2022 we only defined small local producers as local for
Hurtigruten, this methodology is updated in 2023 hence the increase.

Number of ports we purchase F&B locally from

#

14

%

38

RUNNING A RESPONSIBLE BUSINESS
Responsible business
Board Diversity

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 143

Expressed as percent women in BoardA message from the CEO
About the Group

Performance Data

ESG ReportinghX Hurtigruten Expeditions

Report of the Boardof Directors

HX hurtigruten expeditions
KPI

Unit

2018

2021

2022

2023

Scope 1 (Direct CO2 Emissions)mt

28 85627 710101 354

100 519

Scope 2 (Indirect CO2 Emissions)

mt

-

1391

8

1

B: GovernanceSum of Scope 1 & 2 Emissions

mt-

29 101

101 363

100 520

C: Partnerships

SOx Emissions

mt

-

-

25

13

D: ESG Risk Program

NOx Emissions

mt

-

-

2 547

1 256

Number of ships

#

-

7

6

6

Hybrid electric ships

#

-

3

3

3

Ships with shore power connectivity

#

-

-

6

5

Financial Statements

Comment

EMISSIONS
Fleet Scope 1.2. and 3

ESG Appendices
A: Reporting approach

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Emission factors used for calculation: EU MRV. Norwegian Ministry of Climate and Environment.
Emissions factors for shore power (electricity): Ministry of Transport. for purchased electricity; Hurtigruten
Svalbard: Rasmus Bøckman Project Leader Longyearbyen. Multiconsult.

Electricity

MS Fridtjof Nansen. MS Roald Amundsen. MS Otto Sverdrup

Energy Consumption

H: EU Taxonomy

Scope 1 Energy Consumption fleet

GJ-

371 406

1 353 966

1 338 784

I: Policy Index

Scope 2 Energy Consumption fleet

GJ-

66 762396

0

J: Glossary

Scope 1&2 Energy Consumption fleet

GJ-

438 168

1 354 362

1 338 784

Energy Consumption fleet heavy fuel oil

%

-

0

0

0

Energy Consumption fleet biofuels

%

-

1

1

0

Water Consumption

m3

-

-

145 722147 811

Water bunkered

m3

-

-

20 5508 491

Water production

m3

-

-

125 170

139 320

Water consumption pr guest (APCN)

m3

-

-

0.22

0.18

Conversion factor used for MGO and Biofuel GJ/MT from the Norwegian Ministry of Transportation.
Shore power numbers for 2022 are lower due to more time spent at sea after restart post-Covid.
The increase is due to more vessels in operation in 2022 post-Covid.
We banned heavy fuel oil in our fleet more than ten years ago.

NATURE
Water Management

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 144

Water is mainly bunkered in Norway where there is an abundance of water.
Our expedition vessels are equipped with desalination systems to produce fresh water from seawater.
Per available passenger cruise night

A message from the CEO
About the Group

HX hurtigruten expeditions

ESG Reporting

KPI

Report of the Boardof Directors

Total waste produced

Unit

2018

2021

2022

2023

kg

-

-

3 082 740

2 481 209

Food waste per guest – edible

kg

-

-

0.821

0.643

Spills to the environment

#

-

-

0

Litter collected shoreside during ship operationkg

Comment

Waste Performance

Financial Statements

1
3 051

Total amount of edible food waste per guest
Small spill to sea. all reported to the autorities
Litter collected during hikes. beach clean ups by the crew and/or guests during a sailing.

Science & Education

ESG Appendices

Guests participated in Citizen Science Projects

%

15

60

88

A: Reporting approach

Citizen Science Projects offered to guests [# of submissions]# (#)

B: Governance

Science Collaboration Projects supported#

31

C: Partnerships

Scientific Collaboration Cruise Nights

#

1 887

D: ESG Risk Program

External scientific publication & representations#72

20 [23677]

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Water saved

LTR

998 948

Washing detergent saved

LTR

5 685

Electricity saved

kWh

1 186

I: Policy Index

PEOPLE

J: Glossary

Employees

PAGE 145

NR = not reported . The number of submissions is an "at least" value
Number of science projects we have supported in a year excluding citizen science projects (reported
seperately) and excluding science projects supported by the Hurtigruten Foundation.
Actual number of nights a scientific collaborator was onboard per calendar year.
External scientific representations comprise. amongst others. i) contributions to webinars. ii) presentations.
iii) posters. iv) participation in conferences and travel shows. v) interviews. vi) discussion panels. Externalscientific publications comprise. amongst others. a) public annual reports. b) peer reviewed papers. c) thesis.
d) web publication.

Green Stay savings

H: EU Taxonomy

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

Average percentage of guests.

Total number of employees (FTE's)

#

982

1 202

1 155

Employees working on ships

#

917

1 094

1 089

Employees working at our land-based offices

#

65

108

66

Ratio working sea

%

93/7

91/9

94/6

Women on ships

%

24

23

23

Women in HX Hurtigruten Expeditions

%

25

26

24

Maritime Apprentices / Cadet

#

-

-

11

Diversity & Inclusion-

Number of trainees represents the HX fleet.

A message from the CEO
About the Group

HX hurtigruten expeditions

ESG Reporting

KPI

Unit

2018

2021

2022

2023

Average age (in years)

Report of the Boardof Directors

Nationalities

#

-

-

40

39

#

-

-

59

56

Women in Executive Ledership Team (ELT)

%

n/a

n/a

n/a

14

Executive Leadership Team

Women in senior leadership level (see definition in comment field)

%

-

-

29

41

Measured as women in employee category senior leadership

Women as Captains

%

0

0

0

Women as senior officers/leadership onboard

%

18

19

21

Age Distribution: Youngest employee

#

-

-

-

20

A: Reporting approach

Age Distribution: Oldest employee

#

-

-

-

82

B: Governance

Health and safety
LTIF

#

-

0.41

2.2

3.06

Incidents reported to NMA

#

0

1

1

Port state control dententions#

0

Port statecontrol deficiencies (average per inspection)#

1.4

Financial Statements
ESG Appendices

C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy

Comment

Master. Chief Officer. Hotel Manager. Chief Engineer. 2nd Engineer. Expedition Leader NIS.

Lost Time Incident Frequency. calculated based on a 24-hour exposure period;
Definition is based on the NMA definition of Marine Casualties which includes serious injuries and loss.
material damage or grounding/collision of the vessel.

Definition is adapted to 'average per inspection' and 2021 value reported as per adapted definition.

COMMUNITY
SupportRaised funds for Hurtigruten Foundation

Euro

-

-

-

651 763

%

20.6

25.8

Local vendors globally

#

56

24

Percent spending from local suppliers (F&B)

%

39

37

Number of ports we purchase F&B locally from

#

32

%

50

Green stay

I: Policy Index

Green Stays percentage

J: Glossary

Local value creation

2(a) Average Q4 percentage as this was not available during the pandemic and was not measured in 2018.

RUNNING A RESPONSIBLE BUSINESS
Responsible business
Board Diversity
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 146

Expressed as percent women in BoardA message from the CEO
About the Group

Performance Data

ESG Reporting

Hurtigruten destinations

Report of the Boardof Directors

hurtigruten destinations
KPI

Financial Statements

Unit

2018

2021

2022

2023

Comment

899

Emission factors used for calculation: EU MRV. Norwegian Ministry of Climate and Environment.

EMISSIONS
Fleet Scope 1.2. and 3

ESG Appendices
A: Reporting approach
B: Governance

Scope 1 (Direct CO2 Emissions)mt

Scope 2 (Indirect CO2 Emissions)

mt

2 379

3 529

3 345

Sum of Scope 1 & 2 Emissions

mt

2 379

3 529

4 244

Emissions factors for shore power (electricity): Ministry of Transport. for purchased electricity; Hurtigruten
Svalbard: Rasmus Bøckman Project Leader Longyearbyen. Multiconsult.

C: Partnerships

Electricity

D: ESG Risk Program

Eletric tour boats

#

2

2

Kvitbjørn. MS Bard.

Electric snowmobiles

#

8

8

8

Only includes snowmobiles in Svalbard.

Electric buses used for excursions

#

0

1

4

Solar panel installations

#

2

2

4

Solar panels

#

139

139

788

Solar panels – Energy produced by solar panels

KWh-

17 40042 634

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy

Individual panels.

NATURE

I: Policy Index

Water Management

J: Glossary

Water Consumptionm3

14 43119 380

Water consumption pr guest (APCN)

m3

0.188

0.26

Total waste producedkg

126 825

143 017

Total waste produced pr guest (APCN)

kg

1.7

1.97

Food waste per guest – edible

kg

0.13

0.153

Litter collected shoreside during ship operationkg

Per available passenger guest night

Waste Performance

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 147

200* Total amount of edible food waste per guest as average of HRN. HRX. HRS.
Litter collected during hikes. beach clean ups by the crew and/or guests during a sailing.

A message from the CEO
About the Grouphurtigruten destinations
KPI

ESG Reporting

Unit

2018

2021

2022

2023

136

174

235

Comment

PEOPLE
Report of the Boardof Directors
Financial Statements
ESG Appendices

Employees
Total number of employees (FTE's)#

Total number of thrid party workers#

Employees working at our land-based offices

#

136

166

235

Women in Hurtigruten Group / BU

%

45

41

52

Maritime Apprentices / Cadet

#

2

1

Number of trainees

A: Reporting approach

Diversity & Inclusion

B: Governance

Average age (in years)

#

34

34

35

C: Partnerships

Nationalities

#

25

35

38

Women in Executive Ledership Team (ELT)

%

0

17

Women in senior leadership level (see definition in comment field)

%

0

22

Measured as women in employee category senior leadership

Women at manager level

%

39

25

35

Managers and Department Heads.

Age Distribution: Youngest employee

#

-

-

-

15

Age Distribution: Oldest employee

#

-

-

-

66

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

RUNNING A RESPONSIBLE BUSINESS

H: EU Taxonomy

Responsible business

I: Policy Index

Board Diversity

J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 148%

50

Expressed as percent women in BoardA message from the CEO
About the Group

Performance Data

ESG Reporting

Hurtigruten foundation

Report of the Boardof Directors

hurtigruten foundation

Financial Statements

NATURE

KPI

Unit

2018

2021

2022

2023

Comment

Biodiversity

ESG Appendices

Supported species per assessed IUCN Red list category: Total

#

-

-

10

12

A: Reporting approach

Supported species per assessed IUCN Red list category: CriticallyEndagerend

#

-

-

2

4

B: GovernanceSupported species per assessed IUCN Red list category: Endagered

#

-

-

0

1

C: Partnerships

Supported species per assessed IUCN Red list category: Vulnerable

#

-

-

1

2

D: ESG Risk Program

Supported species per assessed IUCN Red list category: Near
Threatened

#

-

-

0

0

Supported species per assessed IUCN Red list category: Least
Concern

#

-

-

7

4

Supported species per assessed IUCN Red list category: Data
Deficient

#

-

-

0

1

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Green Stay savings

H: EU Taxonomy

Water saved

LTR

-

-

1 480 168

2 119 637.6

I: Policy Index

Washing detergent saved

LTR

-

-

5 147

7 363

Electricity saved

kWh

-

-

4 634

6 618

6 (4)

16 (11)30 (12)71 (16)

J: Glossary

COMMUNITY
Support2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 149

Number of projects supported through the Hurtigruten Foundation (incountries)#

Raised funds for Hurtigruten Foundation

Euro

-

-

365 511830 682

Donations to supported projects

Euro

44 00011 6000

18 0000

378 085

In addition, 60241 euro in grants have already been committed for 2024 and 28593 euro for 2025 in multiyear grants.

People positively impacted

#

7 500

62 211

252 566

This is self-reported by recipeints of our bi-annual grants. Other grants are not included.

Number of conservation programmes supported

#

12

17

A message from the CEO
About the Grouphurtigruten foundation

ESG Reporting
Report of the Boardof Directors

KPI

Unit

2022

2023

Comment

Tons of plastic litter collected by supported projects

Kg

2018

2021

8845

1160

Excludes grants given in 2023 for clean-up activities in 2024.

Number of locations cleaned by supported projects

#

5

1

Excludes grants given in 2023 for clean-up activities in 2024.

Number of communities supported

#

13

44

18.6

22

(a) Average Q4 percentage as this was not available during the pandemic and was not measured in 201850

Expressed as percent women in Board

Green stayFinancial Statements

15.0 (a)Responsible business

A: Reporting approach
B: Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 150%

RUNNING A RESPONSIBLE BUSINESSESG Appendices

GRI SASB TCFD

Green Stays percentage

Board Diversity%

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors

Appendix F:
GRI Index (Global Reporting Initiative)GRI Standard
NumberGRI Standard
content

Disclosure
Number

Disclosure content

Page number/or link

Reason for omission

GRI 2

General Disclosures

2-1

Organisational details

Hurtigruten Group AS is a privately owned company, headquartered in Oslo andLondon. Hurtigruten Group and its subsidiaries have operations in Norway, UK, USA,
Estonia, Germany, France and Australia.

N/A

GRI 2

General Disclosures

2-2

Entities included in the organisation's sustainability reporting

Appendix A

N/A

GRI 2

General Disclosures

2-3

Reporting period, frequency and contact point

Appendix B

N/A

GRI 2

General Disclosures

2-4

Restatements of information

Remarks are added in respective appendices in the 'Comment' field (Appendix E
Performance tables)

N/A

GRI 2

General Disclosures

2-5

External assurance

N/A

N/A

GRI 2

General Disclosures

2-6

Activities, value chain and other business relationships

About the Group, Running a Responsible Business, Appendix C

N/A

GRI 2

General Disclosures

2-7

Employees

People, Running a Responsible Business, Appendix E

N/A

GRI 2

General Disclosures

2-8

Workers who are not employees

People, Running a Responsible Business, Appendix E

N/A

GRI 2

General Disclosures

2-9

Governance structure and composition

Appendix B

N/A

GRI 2

General Disclosures

2-10

Nomination and selection of the highest governance body

The Board of Directors represent the shareowners in Hurtigruten Group.

N/A

G: Green bond report 2023

GRI 2

General Disclosures

2-11

Chair of the highest governance body

Chair of the Board of Directors is not a senior executive in the organisation.

N/A

H: EU Taxonomy

GRI 2

General Disclosures

2-12

Role of the highest governance body in overseeing the management of
impacts

Appendix B

N/A

GRI 2

General Disclosures

2-13

Delegation of responsibility for managing impacts

Appendix B

N/A

GRI 2

General Disclosures

2-14

Role of the highest governance body in sustainability reporting

Appendix A, B

N/A

GRI 2

General Disclosures

2-15

Conflicts of interest

Appendix I (Political Involvement Policy; Code of Conduct)

N/A

GRI 2

General Disclosures

2-16

Communication of critical concerns

Running a Responsible Business, Appendix H (Whistleblower policy)

N/A

GRI 2

General Disclosures

2-17

Collective knowledge of the highest governance bodyAppendix B

N/A

GRI 2

General Disclosures

2-18

Evaluation of the performance of the highest governance bodySee note on Remuneration of the Board of Directors and Executive Management.

N/A

GRI 2

General Disclosures

2-19

Remuneration policies

See note on Remuneration of the Board of Directors and Executive Management.

N/A

GRI 2

General Disclosures

2-20

Process to determine remuneration

See note on Remuneration of the Board of Directors and Executive Management.

N/A

GRI 2

General Disclosures

2-21

Annual total compensation ration

Appendix E

N/AFinancial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI

SASB TCFD

UN SDG

I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 151

A message from the CEO
About the GroupGRI Standard
NumberGRI Standard
content

Disclosure
Number

Disclosure content

Page number/or link

Reason for omission

GRI 2

General Disclosures

2-22

Statement on sustainable development strategy

Welcome from CEO

N/A

GRI 2

General Disclosures

2-23

Policy commitments

Hurtigruten Group has a set of policies and procedures which include
commitments related to responsible business conduct and/or respect ofhuman rights (Appendix H). Public available policies are presented at:
hurtigruten.com/group/sustainability/reports/esg/

N/A

GRI 2

General Disclosures

2-24

Embedding policy commitments

N/A

Financial Statements

See each "Topic Guide" part in each ESG chapter, as well as description of how weare working with each topic.

GRI 2

General Disclosures

2-25

Process to remediate negative impacts

Appendix B, Appendix H (Whistleblower mechanism, Hurtigruten Group ESG
Committee)

N/A

ESG Appendices

GRI 2

General Disclosures

2-26

Mechanisms for seeking advice and raising concerns

Running a Responsible Business, Appendix H (Whistleblower policy), We also
encourage our Sustainability our Sustainability Advisory Board and ESG Committee
to raise any concerns related to ESG directly to our executive management teams.

N/A

GRI 2

General Disclosures

2-27

Compliance with laws and regulations

Running a Responsible Business

N/A

GRI 2

General Disclosures

2-28

Membership associations

About the Group, Appendix C

N/A

GRI 2

General Disclosures

2-29

Approach to stakeholder engagement

Appendix A

N/A

ESG Reporting
Report of the Boardof Directors

A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program

GRI 2

General Disclosures

2-30

Collective bargaining agreements

People, Appendix F

N/A

E: Performance data tables

GRI 3

Material topics 2021

3-1

Process to determine material topics

Appendix A

N/A

F: Indexes:

GRI 3

Material topics 2021

3-2

List of material topics

Appendix A

N/A

UN SDGGRI 204

Procurement practices

3-3Management of material topics

Appendix A

N/A

G: Green bond report 2023

GRI 204

Procurement practices

204-1

Proportion of spending on local suppliers

Communities, Appendix F

N/A

H: EU Taxonomy

GRI 303

Water and Effluents 2018

3-3

Management of material topics

Nature, Appendix F

N/A

GRI 303

Water and Effluents 2018

303-1

Interactions with water as a shared resource

Nature, Appendix F

N/A

GRI 303

Water and Effluents 2018

303-2

Management of water discharge-related impacts

Nature, Appendix F

N/A

GRI 303

Water and Effluents 2018

303-3

Water withdrawal

Nature, Appendix F

N/A

GRI 303

Water and Effluents 2018

303-4

Water discharge

Not reported

Ongoing data validation anddata tracking ­improvement.

GRI 303

Water and Effluents 2018

303-5

Water consumption

Nature, Appendix F

N/A

GRI 304

Biodiversity

3-3Management of material topics

Nature, Appendix F

N/A

GRI 304

Biodiversity

304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas
and areas of high biodiversity value outside protected areas

Nature, Appendix C and F

N/A

GRI 304

Biodiversity

304-2

Significant impacts of activities, products, and services on biodiversity

Nature, Appendix C and F

N/A

GRI 304

Biodiversity

304-3

Habitats protected or restored

Nature, Appendix C and F

N/A

GRI

SASB TCFD

I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 152

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach

GRI Standard
NumberGRI Standard
content

Disclosure
NumberGRI 304

Biodiversity

GRI 305

Disclosure content

Page number/or link

Reason for omission

304-4

IUCN Red List species and national conservation list species with habitats
in areas affected by operation

Nature, Appendix C and F

N/A

Emissions 2016

3-3

Management of material topics

Emissions, Appendix F

N/A

GRI 305

Emissions 2016

305-1

Direct (Scope 1) emissions

Emissions, Appendix F

N/A

GRI 305

Emissions 2016

305-2

Energy indirect (Scope 2) GHG emissions

Emissions, Appendix F

N/A

GRI 305

Emissions 2016

305-3

Other indirect (Scope 3) GHG emissions

Emissions, Appendix F

N/A

GRI 305

Emissions 2016305-4

GHG emissions intensity

Emissions, Appendix F

N/A

GRI 305

Emissions 2016

305-5

Reduction of GHG emissions

Emissions, Appendix F

N/A

GRI 305

Emissions 2016

305-6

Emissions of ozone-depleting substances (ODS)

Appendix F, data tracking improvement ongoing.

N/A

GRI 305

Emissions 2016

305-7

Nitrogen oxides (Nox), sulphur oxides (Sox), and other significant air
emissions

Emissions, Appendix F

N/A

GRI 306

Waste 2020

3-3

Management of material topics

NatureN/A

GRI 306

Waste 2020

306-1

Waste generation and significant waste-related impacts

Nature, Appendix F

N/A

B: ESG Governance
C: Partnerships
D: ESG Risk Program

GRI 306

Waste 2020

306-2

Management of significant waste-related impacts

Nature, Appendix F

N/A

E: Performance data tables

GRI 306

Waste 2020

306-3

Waste generated

Nature, Appendix F

N/A

F: Indexes:

GRI 306

Waste 2020

306-4

Waste diverted from disposal

Not reported

Ongoing data validation anddata tracking ­improvement.

GRI 306

Waste 2020

306-5

Waste directed to disposal

Nature, Appendix F

Ongoing data validation anddata tracking improvement.

GRI 308

Supplier Environmental Assessment
2016

3-3

Management of material topics

Running a Responsible Business

N/A

GRI 308

Supplier Environmental Assessment
2016

3-3

The reporting organisation shall report its management approach for­supplier environmental assessment using GRI 103: 3-3

Running a Responsible Business

N/A

GRI 308

Supplier Environmental Assessment
2016

308-1

New suppliers that were screened using environmental criteria

Running a Responsible Business

Ongoing process to getsystematic screening inplace and measurable.

GRI 308

Supplier Environmental Assessment
2016

308-2

Negative environmental impacts in the supply chain and actions taken

Not reported

Ongoing process to getsystematic screening inplace and measurable.

GRI 401

Employment 2016

3-3

Material topics

PeopleN/A

GRI 401

Employment 2016

401-1

New employee hires and employee turnoverPeople, Appendix F

N/A

GRI

SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 153

A message from the CEO
About the GroupGRI Standard
NumberGRI Standard
content

Disclosure
NumberGRI 401

Employment 2016

GRI 401

Disclosure content

Page number/or link

Reason for omission

401-2

Benefits provided to full-time employees that are not provided to temporary
or part-time employees

We offer a range of benefits to employees in different employees categories, there aredifferent benefit schemes in each business units: Hurtigruten Group, Hurtigruten
Expeditions, Hurtigruten Norway, Hurtigruten Svalbard

N/A

Employment 2016

401-3

Parental leave

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016

403-1

Occupational Health and Safety Management System

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-2

Hazard identification, risk assessment, and incident investigation

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-3

Occupational Health services

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-4

Worker participation, consultation and communication on occupational
health and safety

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-5

Worker training on occupational health and safety

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-6

Promotion of worker health

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-7

Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016403-8

Workers covered by an occupational health and safety management system

People, Appendix F

N/A

GRI 403

Occupational Health and Safety 2016

403-9

Work-related injuries

People, Appendix F

Not fully answered in linewith GRI requirements.

GRI 403

Occupational Health and Safety 2016403-10Work-related ill health

Not reported

Not measured.

UN SDGGRI 404

Training and education 2016

3-3

Material topics

People, Appendix F

N/A

G: Green bond report 2023

GRI 404

Training and education 2016

404-1

Average hours of training per year per employee

People, Appendix F

N/A

GRI 404

Training and education 2016

404-2

Programmes for upgrading employee skills and transition assistanceprogrammes

People, Appendix F

N/A

GRI 404

Training and education 2016

404-3

Percentage of employees receiving regular performance and careerdevelopment reviews

Not reported

Ongoing process to getsystematic screening inplace and measurable.

GRI 405

Diversity and Equal Opportunity 2016

3-3

Material topics

People, Appendix F

N/A

GRI 405

Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

People, Appendix F

N/A

GRI 405

Diversity and Equal Opportunity 2016405-2

Ratio of basic salary and remuneration of women to men

People, Appendix F

N/A

GRI 418

Customer Privacy 2016

3-3

Material topics

Running a Responsible Business, Appendix F

N/A

GRI 418

Customer Privacy 2016

418-1

Substantiated complaints concerning breaches of customer privacy andlosses of customer data

Running a Responsible Business, Appendix F

N/A

ESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI

SASB TCFD

H: EU Taxonomy
I: Policy Index
J: Glossary2023
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A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors

APpendix F:
SASB CRUISE INDEX (Sustainability Accounting Standards Board)
Topic

Code

Accounting Metric

Page Number or Link

Greenhouse Gas Emissions

TR-CL-110a.1

Gross global Scope 1 emissions

Emissions, Appendix F

Financial Statements

Greenhouse Gas Emissions

TR-CL-110a.2

Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions,emissions reduction targets, and an analysis of performance against those targets

Targets & Ambitions, Emissions, Appendix F

ESG AppendicesGreenhouse Gas Emissions

TR-CL-110a.3(1) Total energy consumed

Appendix F

Greenhouse Gas Emissions

TR-CL-110a.3(2) percentage heavy fuel oil

Appendix F

Greenhouse Gas Emissions

TR-CL-110a.3(4) percentage renewable

Appendix F

Air Quality

TR-CL-120a.1

Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, and (3) particulatematter (PM10)

Appendix F

Discharge Management & Ecological Impacts

TR-CL-160a.1

Total amount of ship waste discharged to the environment; percentage treated prior todischarge

Nature, Appendix F

Discharge Management & Ecological Impacts

TR-CL-160a.3

Cruise duration in marine protected areas or areas of protected conservation status

Appendix F, We started reporting if we pass through marine protected areas following the RBCS
(Regulation based classification system https://mpatlas.org/rbcs/). The duration is not reported.

Discharge Management & Ecological Impacts

TR-CL-160a.4

Number of notices of violations received for dumping

Appendix F

Labor Practices

TR-CL-310a.4

Total amount of monetary losses as a result of legal proceedings associated with labour law
violations

Appendix F

Employee Health & Safety

TR-CL-320a.1

Seafarer lost time incident rate (LTIR)

Appendix F

Accident Management

TR-CL-540a.2

Number of port state control (1) deficiencies and (2) detentions

Appendix F

Accident Management

TR-CL-540a.3

Number of marine casualties, percentage classified as very serious

Appendix F, all marine casualties are reported as per NMA (Norwegian Marine Authority) definition.
Percentage of 'very serious' is not detailed out.

A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
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A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

APpendix F:
TCFD INDEX (Task Force on Climate-Related Financial Disclosures)
TCFD
NumberComment

Governance1

Describe the Board's oversight of climate-related risks andopportunities.

The board comprehensively reviews all climate-related risks and opportunities on an annual basis as part of the ESG report-development process. Additionally, the board
reviews the status of major climate-related projects and emerging regulations on a quarterly basis. These updates ensure the board are aware of all potential risk (andopportunity) categories outlined by the TCFD – physical, regulatory, market, technology and reputational – and this ensures maximum oversight given rapidly changing
operating conditions.

2

Describe management's role in assessing and managing climate-relatedrisks and opportunities.

The executive team reviews climate-related risks and opportunities at least quarterly as a part of a broader risk management review. These are also reviewed moreregularly as part of daily operations with monthly reporting of key ESG metrics: carbon emissions per available passenger night, women in senior leadership, waste perpassenger and local spend on food and beverage.

ESG Appendices
A: Reporting approach

TCFD

B: ESG Governance
C: Partnerships

In 2023, climate-related risks and opportunities were assessed for projects including:• Overall operations, carried out by ERM, an external consultancy• HRN: Hybridization of Kong Harald; launch of Iconic sailings• HX: Operation of our new West Africa itinerary in HX and development of itineraries for the 2025/2026 season• Svalbard: Installation of solar panels

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

We also began carrying out a double-materiality assessment (DMA) as required for ESRS reporting, which will be covered in more detail in our 2024 Annual report.

UN SDG

G: Green bond report 2023

Hurtigruten Group is committed to proactive and effective risk management to mitigate adverse effects on our operations and to identify and explore business
opportunities. In our annual report, the Group's risk framework and the role of the Board of Directors is explained under the section Risk Management in HurtigrutenGroup.

H: EU Taxonomy
I: Policy Index
J: Glossary

Strategy3

Describe the climate-related risks and opportunities the organisation
has identified over the short, medium, and long term.

Please see the full overview of risks in the Hurtigruten ESG Risk Programme (appendix).
We have identified three key climate-related opportunities:• Short term: In many instances, investing in reducing emissions also represents an increase in the cost competitiveness of our business. For example, reducing theamount of fuel we use directly impacts our bottom line through reduced fuel consumption as well as our EU ETS carbon credit purchase requirement• Medium term: There is a huge opportunity in continuing to reduce our emissions as it affects how our guests perceive us and how likely they are to choose us over ourcompetitors.
• Medium/Long term: Ensuring we are part of the conversation in the nascent reporting and target-setting forums to push for maximum ambition for both our industry
and adjacent industries.

4

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Describe the impact of climate-related risks and opportunities on theorganisation's businesses, strategy, and financial planning.

Please see the full overview in the Hurtigruten ESG Risk Programme (appendix).

A message from the CEO
About the Group

TCFD
Number5

ESG Reporting

TCFD

Comment

Describe the resilience of the organisation's strategy, taking into
consideration different climate-related scenarios, including a 2°C or
lower scenario.

As an organization, we have consistently supported the latest targets arising from the detail of the Paris Agreement, aimed at keeping warming below 1.5C. Our stated
aim is to become the world's most sustainable travel operator in the world and to achieve this, it is one of our strategic priorities to achieve decarbonization as quickly as
possible. For example, we aim to be carbon neutral by 2040.

Report of the Boardof Directors

There are three routes to emissions reductions for our industry: investment in technological upgrades of our current assets (e.g. hybridization), operational improvements(reducing speed and distance travelled) and alternative energy sources (i.e. biofuels). Perhaps the best example of our commitment to this is our Sea Zero project whichaims to build an operational zero-emissions ship by 2030.

Financial Statements

Additionally, our strategy involves directly engaging in conversations within and across industries to push for higher ambition and delivery in decarbonization. As such, weare aware of planned changes to legislation as early as possible.

ESG Appendices

Risk management

A: Reporting approach

6

Describe the organisation's processes for identifying and assessing
climate-related risks.

This is an integrated part of strategy and review process. We have a dedicated ESG committee which – alongside our VP of Risk Management – analyses and reviews risks
on a quarterly basis and reports this to the Executive Leadership team. The Board reviews the risks in detail on an annual basis. In the ESG Risk Programme we havedisclosed the top risks per thematic category.

7

Describe the organisation's processes for managing climate-relatedrisks.

As previously described, through the oversight of management and the board, risks are identified and assessed regularly. For each major risk identified we outline
scenarios and mitigating actions which could be taken. These are regularly reviewed by the VP of Risk Management.

8

Describe how processes for identifying, assessing, and managing
climate-related risks are integrated into the organisation's overall risk
management.

Climate-related risks are included in our general risk reporting based upon both the likelihood and the potential impact to company operations. As described above, risks
are regularly reviewed so the overall risk management strategy is adaptive to changing circumstances and risk profiles.

B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables

Metrices and targets

F: Indexes:
GRI SASB TCFD

UN SDG

9Disclose the metrics used by the organisation to assess climate-relatedrisks and opportunities in line with its strategy and risk management
process.

Hurtigruten Group uses CO2 equivalents to measure our GHG emissions from Scope 1,2 and 3 emissions. Additionally, we measure SOx and NOx emissions and, where
possible, other particulate pollutants. Our risk framework includes categories for probability and different consequence types.

10Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas(GHG) emissions and the related risks.

All emission data (Scope 1,2 and 3) is located in performance tables in Appendix E.

11

Describe the targets used by the organisation to manage climaterelated risks and opportunities and performance against targets

All targets are mentioned under Our Targets and Ambitions, and specifically in the Emissions chapter and our Emission Reduction Plan (add link). We have committed toscience-based targets and are currently in the process of preparing our targets for validation.

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Our key targets are:
• Net-Zero scope 1,2 and 3 emissions by 2050
• Carbon neutral Scope 1 by 2040
• First emission free ship on the Norwegian Coast by 2030

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A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements

APpendix F:
UN SDG INDEX (United Nations Sustainable Development Goals)
SDG Goal
numberSDG Goal

TargetNumberAchieve gender equality andempower all women and girls

ESG Appendices5.01

End all forms of discrimination against all women and girls everywhere

People, Appendix F

5.05

Ensure women's full and effective participation and equal opportunities for leadership at all levelsof decision-making in political, economic and public life

People, Appendix F

Reduce inequality within
and among countries

C: Partnerships
D: ESG Risk Program

People, Appendix F

10.01

By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the
population at a rate higher than the national average

People, Appendix F

10.02

By 2030, empower and promote the social, economic and political inclusion of all, irrespective ofage, sex, disability, race, ethnicity, origin, religion or economic or other status

People, Appendix F

10.03

Ensure equal opportunity and reduce inequalities of outcome, including by eliminating
discriminatory laws, policies and practices and promoting appropriate legislation, policies andaction in this regard

People, Appendix F

10.04

Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve
greater equality

People, Appendix F

E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index

Make cities and human settlements
inclusive, safe, resilient and sustainable

Nature, Community, Running a Responsible
Business
11.02

By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all,improving road safety, notably by expanding public transport, with special attention to the needs ofthose in vulnerable situations, women, children, persons with disabilities and older persons

Community, Running a Responsible Business

11.04

Strengthen efforts to protect and safeguard the world's cultural and natural heritage

Community, Running a Responsible Business

11.06

By 2030, reduce the adverse per capita environmental impact of cities, including by paying special

Nature, Community, Running a Responsible

attention to air quality and municipal and other waste management

Business

Support positive economic, social and environmental links between urban, peri-urban and rural
areas by strengthening national and regional development planning

Community, Running a Responsible Business

J: Glossary

11.a

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Page Number or link
People, Appendix F

A: Reporting approach
B: ESG GovernanceTargetA message from the CEO
About the GroupSDG Goal
numberSDG Goal

TargetNumberEnsure sustainable ­consumptionand ­production patterns

ESG Reporting
Report of the Boardof Directors

ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships

12.03

By 2030, halve per capita global food waste at the retail and consumer levels and reduce foodlosses along production and supply chains, including post-harvest losses

Nature, Community

12.04

By 2020, achieve the environmentally sound management of chemicals and all wastes throughout
their life cycle, in accordance with agreed international frameworks, and significantly reduce theirrelease to air, water and soil in order to minimize their adverse impacts on human health and theenvironment

Nature, Community

12.05

By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse

Nature, Community

12.06

Encourage companies, especially large and transnational companies, to adopt sustainable
practices and to integrate sustainability information into their reporting cycle

Nature, Community

12.08

By 2030, ensure that people everywhere have the relevant information and awareness forsustainable development and lifestyles in harmony with nature

Nature, Community

12.b

Develop and implement tools to monitor sustainable development impacts for sustainable tourism
that creates jobs and promotes local culture and products

ESG Introduction, Community

D: ESG Risk Program
E: Performance data tables
F: Indexes:
G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
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Take urgent action to combat
climate change and its impacts

ESG Introduction, Nature, Community

13.03

UN SDG

Page Number or link
Nature, Community

Financial Statements

GRI SASB TCFD

TargetImprove education, awareness-raising and human and institutional capacity on climate change
mitigation, adaptation, impact reduction and early warning

ESG Introduction, Nature, Community

A message from the CEO
About the GroupSDG Goal
number

ESG Reporting
Report of the Boardof Directors

SDG Goal

TargetNumberConserve and sustainably use theoceans, seas and marine resources
for sustainable development

A: Reporting approach

14.01

By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from landbased activities, including marine debris and nutrient pollution

Nature, Community

14.02

By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant
adverse impacts, including by strengthening their resilience, and take action for their restoration inorder to achieve healthy and productive oceans

Nature, Community

14.03

Minimize and address the impacts of ocean acidification, including through enhanced scientificcooperation at all levels

Nature, Community

14.07

By 2030, increase the economic benefits to Small Island developing States and least developed
countries from the sustainable use of marine resources, including through sustainable
management of fisheries, aquaculture and tourism

Nature, Community

14.a

Increase scientific knowledge, develop research capacity and transfer marine technology, taking
into account the Intergovernmental Oceanographic Commission Criteria and Guidelines on theTransfer of Marine Technology, in order to improve ocean health and to enhance the contribution ofmarine biodiversity to the development of developing countries, in particular small island
developing States and least developed countries

About the Group, Running a reponsisble business

14.c

Enhance the conservation and sustainable use of oceans and their resources by implementing
international law as reflected in United Nations Convention on the Law of the Sea, which provides
the legal framework for the conservation and sustainable use of oceans and their resources, as
recalled in paragraph 158 of "The future we want"

About the Group, Nature

B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
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Page Number or link
Emission, Nature, Community

Financial Statements
ESG AppendicesTargetA message from the CEO
About the GroupSDG Goal
number

ESG Reporting
Report of the Boardof Directors

SDG Goal

TargetNumberProtect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse landdegradation and halt biodiversity loss

Financial Statements
ESG Appendices

B: ESG Governance
C: Partnerships

15.04

By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in order toenhance their capacity to provide benefits that are essential for sustainable development

Nature, Community, About the Group

15.05

Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of
biodiversity and, by 2020, protect and prevent the extinction of threatened species

Nature, Community, About the Group

15.07

Take urgent action to end poaching and trafficking of protected species of flora and fauna andaddress both demand and supply of illegal wildlife products

Nature, Community, About the Group

15.a

Mobilize and significantly increase financial resources from all sources to conserve and sustainably
use biodiversity and ecosystems

Nature, Community, About the Group

15.b

Mobilize significant resources from all sources and at all levels to finance sustainable forest
management and provide adequate incentives to developing countries to advance suchmanagement, including for conservation and reforestation

Nature, Community, About the Group

D: ESG Risk Program

F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023

Strengthen the means of implementation and revitalize the Global Partnershipfor Sustainable Development

Nature, Community, About the Group

17.03

Mobilize additional financial resources for developing countries from multiple sources

Nature, Community, About the Group

17.06

Enhance North-South, South-South and triangular regional and international cooperation on andaccess to science, technology and innovation and enhance knowledge sharing on mutually agreed
terms, including through improved coordination among existing mechanisms, in particular at theUnited Nations level, and through a global technology facilitation mechanism

Nature, Community, About the Group

17.16

Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder
partnerships that mobilize and share knowledge, expertise, technology and financial resources, tosupport the achievement of the Sustainable Development Goals in all countries, in particulardeveloping countries

Nature, Community, About the Group

17.17

Encourage and promote effective public, public-private and civil society partnerships, building on

Nature, Community, About the Group

H: EU Taxonomy
I: Policy Index
J: Glossary

the experience and resourcing strategies of partnerships

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Page Number or link
Nature, Community, About the Group

A: Reporting approach

E: Performance data tables

TargetA message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
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APpendix G:
HURTIGRUTEN GROUP GREEN BOND REPORT 2023
Under the Green Bond Framework,­Hurtigruten Group AS issued green
bonds with a total nominal value of
50 million Euros in February 2022.
An amount equal to the net proceeds ofthe Green Bonds has financed, in whole
or in part, investments undertaken by
Hurtigruten Group or its subsidiaries
that promote the transition towards a
low-carbon and environmentally sustainable
society (‘Green Projects') under the Green
Project Category ‘Upgrade of existing sea
and coastal vessels'. The Green Project
category is mapped to the SDGs reflectedby the IMO, SDG 13 Reduce our emissions,and target a carbon-free future.

Green Projects financed
by Green Bond proceeds
Environmental refurbishment of
the coastal vessels MS Richard With,
MS Kong Harald, and MS Nordlys
Hurtigruten fleet is undergoing one ofEurope's largest environmental vessel
upgrades. This was launched in Q1 2022
and is expected to be finalized in Q1 2025
and cover all seven ships operating under
the coastal contract.
Three out of the seven coastal vessels,
MS Richard With, MS Kong Harald, andMS Nordlys, will undergo, or has alreadyundergone, a full-fledged transformation tobattery-hybrid power, meaning installationof new low-emission engines equipped with
NOx reducing Selective catalytic reduction
systems (SCR) and battery packs. The main
engines combined with SCR system willachieve an IMO Tier III (the highest level)
Engine International Air Pollution Prevention
certificate. The ships will also undergo hull
optimalizations, renewal of exhaust boilers
and extended use of frequency converts.
Together all measures are estimated toresult in approximately 20% fuel reduction

from 2018 level (kg/nm and grams in gramsof fuel per deadweight).
In addition a new sewage and greywater
treatment system is installed, certified
to meet the purified water discharge
requirements in accordance with IMO
Res. MEPC.227 (64) (except par. 4.2), and
MARPOL Annex IV as amended, Reg. 9.1.1.
This will give the ships the opportunity tooperate with zero emission to sea.
The retrofitting activities reduce fuel consumption of the vessels by 20.13%–22.38%
expressed in grams of fuel per deadweight
and tons per nautical mile, as demonstratedby CFD and other engineering calculations.
The projects also cut CO2 emissions by
20.13%–22.38% and NOx emissions by
78.2%–85.1%1.

Financing and refinancing
New financing is defined as Green Projects
under construction or Green Projects taken
into operation less than 12 months prior to
the approval by Hurtigruten Group's Green
Bond Committee. Refinancing is defined
as financing for Green Projects taken into
operation more than 12 months prior to theGreen Bond Committee's approval. The
environmental refurbishment of the threevessels MS Richard With, MS Kong Haraldand MS Nordlys were all described in theGreen Bond framework under the Green
Project Category “Upgrade of existing sea
and coastal vessels”
The environmental refurbishment of MS
Richard With was completed in 2022 with a
total investment cost of 36.2 million Euros,
which was financed through the proceedsfrom the Green Bond.
The environmental refurbishment of MS
Kong Harald was completed in 2023 witha total investment of 39.1 million Euros ofwhich 12.5 million Euros was financed by
the proceeds from the Green Bond.
The environmental refurbishment of MS
Nordlys will take place in Q4 2024 and Q1
2025. As of 31.12.23 Hurtigruten Group had
invested a total of 8.0 million Euros of which
1.3 million Euros has been financed by theproceeds from the Green Bond.
On 23 February 2024 the green bonds wereamended and reinstated into senior secured
bonds in principal amount of EUR 50 million (plus accrued interest and any consent
fees) issued by Hurtigruten Newco AS.

A message from the CEO
About the Group

Issued Green bonds – facts

ESG Reporting

Issue date:
25 February 2022

Report of the Boardof Directors

Tenor: 5 years

Financial Statements
ESG AppendicesNominal amount:
50 000 000 Euros
Maturity date:
25 February 2027

Green Projects Financed under the Green Bond Framework

The total proceeds of
50 million Euros have been
allocated by the Green Bond
Committee to the eligible
projects ­presented in thetable to the right.

ICMA Green Bond Principles Category:

Clean Transportation

EU Taxonomy Reference:

6.12 – Retrofitting of sea and coastal freight and passenger water transport

Sustainability performance goal:

13) Reduce our emissions, and target a carbon-free future

Green project category:

Upgrade of existing sea and coastal vessels

Coupon rate: 11%

A: Reporting approach

ISIN: NO0012436270

B: ESG Governance
C: Partnerships
D: ESG Risk Program

Total
investment
EUR as of
31.12.23

Green bondamounts
allocated toproject EUR

Financing/refinancing

Total Environmental sustainability
impact for investment

Project

Description

Hybridisation ofcoastal vessel
MS Richard With
(2022)

A full-fledged transformation to batteryhybrid power, meaning installation of new
low-emission engines equipped with SCR
and battery packs, reblading propeller andhull optimalization.

36 253 166

36 253 166

FinancingDocumented (The reduction is calculated
against a 2018 pre-pandemic baseline forfuel consumption per vessel)
Reduction in fuel consumption: 20.13%
Reduction in CO2 emissions: 20.13%
Reduction in NOx emissions: 85.1%

Hybridisation ofcoastal vessel
MS Kong Harald(2023)

A full-fledged transformation to batteryhybrid power, meaning installation of new
low-emission engines equipped with SCR
and battery packs, reblading propeller andhull optimalization.

39 079 483

12 461 074

FinancingDocumented (The reduction is calculated
against a 2018 pre-pandemic baseline forfuel consumption per vessel)
Reduction in fuel consumption: 22.38%
Reduction in CO2 emissions: 22.38%
Reduction in NOx emissions: 78.19%

E: Performance data tables
F: Indexes:
GRI SASB TCFD

3%

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

23%
Environmental
refurbMS Kong Harald

Environmental
refurbMS Nordlys

75%

Reduction on KH was significant higher
than RW. The reason is that KH had higher
reduction potential than RW, due to hull.

Environmental
refurbMS Richard With

SCR-system was re-configured in Feb- 24
and will reduce NOx emissions more.
Hybridisation ofcoastal vessel
MS Nordlys(2024/2025)

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A full-fledged transformation to batteryhybrid power, meaning installation of new
low-emission engines equipped with SCR
and battery packs, reblading propeller andhull optimalization.

8 029 874

1 285 760

Total

83 362 523

50 000 000

Financing

Expected based on Richard With
Reduction in fuel consumption: 20.13%
Reduction in CO2 emissions: 20.13%
Reduction in NOx emissions: 85.1%

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach

APPENdix H:
Statement on EU Taxonomy for sustainable activities
As a non-financial company HurtigrutenGroup reports on revenue (turnover), capital
expenditure and operating expenses thatare associated with Taxonomy-eligible andTaxonomy-aligned economic activities, inaccordance with regulation EU (2020/852)
and the supplementing delegated acts.

B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

The regulation applies because HurtigrutenGroup's publicly traded Green Bond meansthat the Group is considered a public-interest entity.
2023 is the first year of reporting.

UN SDG

G: Green bond report 2023

Identifying eligible activities

H: EU Taxonomy
I: Policy Index

Hurtigruten Group has identified three
Taxonomy-eligible activities:

J: Glossary

Sea and coastal water passenger
transport (activity 6.11)
The provision of sea and coastal watertransport by Hurtigruten Group is aneligible and transitional activity according to
the EU Taxonomy. The Group has 16 ships,
which are all included in the scope of thetaxonomy.
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To make a substantial contribution to climate change mitigation, the Group's vessels
must either be zero emission (at tailpipe)or hybrid/dual fuel vessels would have toderive at least 25% of their energy fromzero direct (tailpipe) CO2 emission fuelsor plug-in power. Otherwise, vessels canqualify by attaining a specific EEDI rating.

Hotels, holiday, camping grounds
and similar accommodation (activity
16.2.1)
Operation of accommodation facilities is aneligible and transitional activity according
to the EU Taxonomy. Hurtigruten Group
provides accommodation as part of the
Destinations segment in Svalbard. Any
onboard accommodation is covered underactivity 6.11.
To make a substantial contribution toprotection and restoration of biodiversity
and ecosystems – the only objective
currently published for accommodation
facilities – the Group must have a specificcontractual agreement with a conservationgroup. Contributions must be at least 1%of annual turnover of the accommodation
establishment. Further detailed criteria
include an action plan for conservation, asustainable supply chain, and an established environmental management system.

Retrofitting of sea and coastal freightand passenger water transport(activity 6.12)
Retrofitting Hurtigruten vessels is aneligible and transitional activity according
to the EU Taxonomy. This activity is only
relevant to the Group's capital expenditure
where the Group buys Taxonomy-eligible
input to improve ships.
To make a substantial contribution toclimate change mitigation, the Group
must implement adaptation solutions that
substantially reduce physical climate risks.

Determining whether eligible
activities are aligned with the EU
Taxonomy criteria
Sea and coastal water passenger
transport (activity 6.11)
13 out of 14 ships in the Group are fittedwith shore power connectivity, but very few
harbours are currently equipped with thetechnology toprovide this or have the right connectivity
for our ships. For instance, on the traditional
Hurtigruten route along the Norwegiancoast, there are only 3 out of 34 ports that
support this while on the Group's expeditionroutes only 1 harbour in Iceland is compatible. Another obstacle to attaining alignment
in this area is the fact that power provided
by ports often comes from non-renewablesources.
Further, the Group has 5 ships that are
hybrid powered vessels (2 of which is
purpose built and 3 of which have been
retrofitted the last year). Currently less than
25% of their energy is derived from zero
emissions fuels.
The Group's ships were built before EEDI
became standard, and hence do not have arating.
Thus, the Group's transport activities are notaligned with the EU Taxonomy criteria.

Hotels, holiday, camping grounds
and similar accommodation (activity
16.2.1)
While the Group makes significant efforts
to conserve the unique environment inA message from the CEO
About the Group

Svalbard, this is not done by contributing toan outside conservation group.

ESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships

Thus, the Group's accommodation activities
are not aligned with the EU Taxonomy
criteria.

Retrofitting of sea and coastal freightand passenger water transport(activity 6.12)
Hurtigruten Group assessed the physicalclimate risks that are material to is activities, in line with the regulation's requirements. The specific and most impactfulrisks identified in the assessment were sea
level rise and more extreme weather.

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

The Group's investment in fuel efficiency
and hybridization directly reduces the company's carbon footprint and works towards
mitigating the likelihood of the physicalrisks occurring.
The adaptations do not adversely affectothers' adaptation efforts, rely on green
infrastructure as much as possible, areconsistent with local adaptation strategies,
and are monitored against pre-definedindicators.
In addition to the technical screening
criteria discussed above, the Group mustalso meet the following ‘Do No Significant
Harm' (DNSH) criteria for each activity.

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 165

Any ship in Hurtigruten Group's fleet operates in accordance with, and often exceeds,

the standards set by the IMO MARPOL
Convention. This cover requirements
related to waste management (including
discharges), sulphur and nitrogen oxide
emissions (meeting criteria of no more 0.5%
in mass and minimum Tier II NOx requirements) and minimisation of antifouling painttoxicity. Also, our ships follow the IMO's
Convention on Ballast Water and Sediments(BWM) and Biofouling guidelines.
Hurtigruten Group mitigates risks related
to water quality and water stress (see Water
Management Programme, Water Risk Management Policy and ESG Report section on
Nature), supports the transition to a circular
economy (see Effluent Management, Waste
Management and Shipbreaking Policies)
and prevents pollution (see Waste Management and Biodiversity Policies).
In addition to all the above, HurtigrutenGroup only considers activities underactivity 6.12 to be aligned if they relate
to the purchase of retrofitting services
that the supplier itself considers to be aTaxonomy-aligned output.

Compliance with criteria for­minimum safeguards
The group's activities are carried out incompliance with the minimum safeguard
criteria. Please refer to the following sectionfor Hurtigruten Group's process on:• Human Rights commitment and ourframework for Human Rights Due
Diligence: People chapter

Revenue associated with eligible activities
comprises the following elements fromexternal revenues:• Bribery and Corruption: See chapter
Running a Responsible Business and our
Anti-Corruption Policy• Revenue from coastal and sea transportsales• Taxation: See note 14 to the Financial
Statements

Measuring performance
Hurtigruten Group's activities are linked
to the boundaries of the reporting entity
as defined by IFRS and described in theGroup financial statements, See the Group's
consolidation principles in note 2 to the
Financial Statements. In combination, thebelow indicators are intended by the taxonomy to express the company's activities that
qualify as environmentally sustainable.

Revenue (turnover)
Revenue represents Hurtigruten Group's
total revenue from contracts with customers
as specified in note 7 to the Financial
Statements. This amount excludes anyother gains/(losses) as specified in note 12of the Financial Statements as well as any
financial items as specified in note 13 of the
Financial Statements. These are considered
not eligible activities under the taxonomy.

• Revenue from accommodation service
sales
The output from these activities is partly
sold directly to consumers, partly sold toother businesses, and partly sold to theNorwegian government. Any intercompany
sales are eliminated as part of the consolidation. No adjustments are made to theprices agreed with customers.

Capital expenditure
CapEx comprises additions to property,
ship and equipment, represented by thegross amount of purchase, development orlease as specified in note 15 to the Financial
Statements. It also includes the grossamount of purchase or development ofintangible assets as specified in note 16 to
the Financial Statements. Further, any lease
capitalized is included with the addition (orreduction) required by IFRS. Short-termleases and small asset leases as well as
variable lease payments are not recognized
as fixed assets and are thus not included inthis indicator. Any goodwill recognized ina business combination is not included in
the indicator. Further, financial investments,
including capital injections in associatedA message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

companies and joint ventures, are excluded
from the metric.

• short-term lease• maintenance and repair, andAdditions to property, ship and equipment
and to intangible assets for eligible activities include both sustaining investments inexisting ships engaged in eligible activities
and expansions within such activities.

any other direct expenditures relating to the
day-to-day servicing of assets of property,
ship and equipment that are necessary toensure the continued and effective functioning of such assets.

Operating expenditure

Research and development costs coverprojects that do not meet the specific criteria for capitalization as intangible assets.
Expenses include such items as use of
research facilities, research staff expenses
and advisory fees.

Operating expenditure comprises all
expenses included in the sub-total
Operating profit/(loss) in the income
statement. The regulation requires us toreport on expenses that represent direct
non-capitalized costs that relate to thefollowing functions:• research and development• building renovation measures

In 2023, research and development costs
include costs relating to the SeaZero project
which aims to produce our first zero emissions (at tailpipe) ship by 2030, the world's

most energy efficient ship. A key project for
the Group that is led by one of the largest
research institutes in Europe, SINTEF.

Eligible activities:

CAPEX related to the purchase of output
from Taxonomy-aligned economic activities
and to individual measures enabling thetarget activities to become low-carbon or tolead to greenhouse gas reductions has been
included. This specifically relates to the purchase of retrofitting of ships. Upgrading our
fleet is a core component of our emission
reduction plan, and this includes retrofitting
into hybrid powered and installation of SCR
systems to reduce NOx emissions.

• Hotels, holiday, camping grounds andsimilar accommodation (activity 16.2.1)

No OPEX related to the purchase of aligned
output has been included in the numeratorof the KPI.

• Sea and coastal water passenger transport (activity 6.11)• Retrofitting of sea and coastal freight andpassenger water transport (activity 6.12)

Aligned activities:• Sea and coastal water passenger
transport (activity 6.11) – R&D spend on
SeaZero only
• Retrofitting of sea and coastal freight andpassenger water transport (activity 6.12)– purchase of Taxonomy-aligned output
from Kongsberg only.

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 166

Revenue

OPEX

Capex

0 outof 655 579 000 = 0%

123 000 outof 23 599 000 = 1%

9 981 000 outof 78 489 000 = 13%

A message from the CEO

Proportion of Revenue

About the Group

from products or services associated with Taxonomy-aligned
economic activities – disclosure covering year 2023

ESG Reporting

Substantial Contribution Criteria
Climate Change Adaptation
(6)

Water
(7)

Pollution(8)

Circular Economy(9)

Biodiversity and ecosystems(10)

Climate Change Mitigation(11)

Climate Change Adaptation
(12)

Water
(13)

Pollution(14)

Circular Economy(15)

Biodiversity(16)

Minimum Safeguards(17)

A: Reporting approach

Climate Change Mitigation(5)*

ESG AppendicesTaxonomyalignedproportion of
total
turnover,2023 (18)**

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

B: ESG Governance€'000

C: Partnerships

A. 	TAXONOMY-ELIGIBLE ACTIVITIES

D: ESG Risk Program
E: Performance data tables

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Category(transitional
activity)
(21)

E

T

100%

A.1.	Environmentally sustainable activities(Taxonomy-aligned)

activities (Taxonomy-aligned) (A.1)

00%

Sea and coastal passenger water transport

621 62195%

Accommodation

33 9585%

Turnover of Taxonomy-eligible but notenvironmentally sustainable activities (not­Taxonomy-aligned activities) (A.2)

655 579100%

655 579

100%

0

0%

655 579100%

A.2	Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)

Total (A.1+A.2)
B. 	TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
TOTAL (A+B)
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 167

Category(enabling
activity) (20)

Turnover of environmentally sustainable

F: Indexes:
GRI SASB TCFDDNSH criteria ('Does Not Significantly Harm')

Proportion of Turnover (4)Financial Statements

Absolute turnover (3)Economic Activities (1)Code (2)Report of the Boardof Directors* Taxonomy-aligned turnover of the activity/Total Taxonomy eligible turnover of the activity.
** Taxonomy-aligned turnover of the activity/Total turnover of the Group

0%

0%

0%

A message from the CEO

Proportion of CapEx

About the Group

from products or services associated with Taxonomy-aligned
economic activities – disclosure covering year 2023

ESG Reporting

Substantial Contribution Criteria
Climate Change Adaptation
(6)

Water
(7)

Pollution(8)

Circular Economy(9)

Biodiversity and ecosystems(10)

Climate Change Mitigation(11)

Climate Change Adaptation
(12)

Water
(13)

Pollution(14)

Circular Economy(15)

Biodiversity(16)

Minimum Safeguards(17)

A: Reporting approach

Climate Change Mitigation(5)*

ESG AppendicesTaxonomyalignedproportion of
total
turnover,2023 (18)**

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

B: ESG Governance€'000

C: Partnerships

A. 	TAXONOMY-ELIGIBLE ACTIVITIES

D: ESG Risk Program
E: Performance data tables

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Category(transitional
activity)
(21)

E

T

100%

A.1.	CapEx of environmentally sustainable activities(Taxonomy-aligned)

passenger water transport (CapEx B)

9 981

13%

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

13%

CapEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

9 981

13%

100%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

13%

Retrofitting of sea and coastal freight andpassenger water transport

68 06287%

Sea and coastal passenger water transport

447

1%

CapEx of Taxonomy-eligible but notenvironmentally sustainable activities (notTaxonomy-aligned activities) (A.2)

68 50887%

78 508

100%

0

0%

78 489100%

A.2	Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned)

Total (A.1+A.2)
B. 	TAXONOMY-NON-ELIGIBLE ACTIVITIESCapex of Taxonomy-non-eligible activities
2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 168

Category(enabling
activity) (20)Retrofitting of sea and coastal freight and

F: Indexes:
GRI SASB TCFDDNSH criteria ('Does Not Significantly Harm')

Proportion of CapEx (4)Financial Statements

Absolute CapEx (3)Economic Activities (1)Code (2)Report of the Boardof Directors

TOTAL (A+B)* Taxonomy-aligned turnover of the activity/Total Taxonomy eligible turnover of the activity.
** Taxonomy-aligned turnover of the activity/Total turnover of the Group

T

0%

13%

A message from the CEO

Proportion of OPEX

About the Group

from products or services associated with Taxonomy-aligned
economic activities – disclosure covering year 2023

ESG Reporting

Substantial Contribution Criteria
Climate Change Adaptation
(6)

Water
(7)

Pollution(8)

Circular Economy(9)

Biodiversity and ecosystems(10)

Climate Change Mitigation(11)

Climate Change Adaptation
(12)

Water
(13)

Pollution(14)

Circular Economy(15)

Biodiversity(16)

Minimum Safeguards(17)

A: Reporting approach

Climate Change Mitigation(5)*

ESG AppendicesTaxonomyalignedproportion of
total
turnover,2023 (18)**

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

B: ESG Governance€'000

C: Partnerships

A. 	TAXONOMY-ELIGIBLE ACTIVITIES

D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary

Category(transitional
activity)
(21)

E

T

100%

Sea and coastal passenger water transport

123

1%

1%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

1%

OpEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

123

1%

1%

0%

0%

0%

0%

0%

Y

Y

Y

Y

Y

Y

Y

1%

23 047

98%

428

2%

23 47599%

23 599

100%

0

0%

23 599100%

A.2	Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Sea and coastal passenger water transport
Accommodation

Total (A.1+A.2)
B. 	TAXONOMY-NON-ELIGIBLE ACTIVITIESOpEx of Taxonomy-non-eligible activities

PAGE 169

Category(enabling
activity) (20)A.1.	Environmentally sustainable activities(Taxonomy-aligned)

OpEx of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS

DNSH criteria ('Does Not Significantly Harm')

Proportion of OpEx (4)Financial Statements

Absolute OpEx (3)Economic Activities (1)Code (2)Report of the Boardof Directors

TOTAL (A+B)* Taxonomy-aligned turnover of the activity/Total Taxonomy eligible turnover of the activity.
** Taxonomy-aligned turnover of the activity/Total turnover of the Group

T

0%

1%

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors

APpendix I:
POLICY INDEXName of Policy/Programme

Additional info

Page Number or Link

Hurtigruten Group Diversity, equity and inclusion policy (DEI) Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Code of Conduct

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Human Rights Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Privacy Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

A: Reporting approach

Hurtigruten Group Supplier Code of Conduct

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

B: ESG Governance

Hurtigruten Group Whistleblowing policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group GHG Emission Reduction Programme

Available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Political Involvement Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Remuneration Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

E: Performance data tables

Hurtigruten Group Deforestation Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

F: Indexes:

Hurtigruten Group Anti-Corruption Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Freedom of Association Policy

Public policy available online

hurtigruten.com/group/sustainability/reports/esg/

Hurtigruten Group Enterprise Risk Management Policy

Internal policy, available upon request

Hurtigruten Group Climate Risk Position Statement

Available online

Environmental Policy

Internal policy, available upon request

Environmental Management System

Internal policy, available upon request

Biodiversity ProgrammeInternal policy, available upon request

Solid Waste Management

Internal policy, available upon request

Effluent Management

Internal policy, available upon request

Water Risk Management

Internal policy, available upon request

Water Management ProgrammeInternal policy, available upon request

Ship Breaking ProgrammeInternal policy, available upon request

Product and Service Safety ProgrammeInternal policy, available upon request

Hurtigruten Group Climate Risk Position Statement

Available online

Financial Statements
ESG Appendices

C: Partnerships
D: ESG Risk Program

GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 170

hurtigruten.com/group/sustainability/reports/esg/

hurtigruten.com/group/sustainability/reports/esg/

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 171

Name of Policy/Programme

Additional info

Environmental Policy

Internal policy, available upon request

Environmental Management System

Internal policy, available upon request

Biodiversity ProgrammeInternal policy, available upon request

Solid Waste Management

Internal policy, available upon request

Effluent Management

Internal policy, available upon request

Water Risk Management

Internal policy, available upon request

Water Management ProgrammeInternal policy, available upon request

Ship Breaking ProgrammeInternal policy, available upon request

Product and Service Safety ProgrammeInternal policy, available upon request

Page Number or Link

A message from the CEO
About the GroupESG Reporting
Report of the Boardof Directors
Financial Statements
ESG Appendices
A: Reporting approach
B: ESG Governance
C: Partnerships
D: ESG Risk Program
E: Performance data tables
F: Indexes:
GRI SASB TCFD

APPENdix J:
Glossary
Here we list the commonly used terms relating to Emissions,
Nature, People and Community that you'll find throughout
this report.
Term

Explanation

Term

Explanation

Term

Explanation

AECO

Association of Arctic Expedition Cruise Operators.

eNPS

The variety of plant and animal life in the world or at aparticular destination.

Employee Net Promoter Score. A scoring systemdesigned to measure the level of employee satisfaction
within an organisation.

Net Zero

Biodiversity

A condition in which human-caused residual GHG
emissions are balanced by human-led removals over a
specified period and within specified boundaries.

Biofuels

Non-fossil fuels manufactured using organic material,
the burning of which is carbon neutral.

ESG

NOx

Nitrogen oxide emissions. A group of gases that are
mainly formed during the combustion of fossil fuels.

Carbonintensity

The average amount of Scope 1 CO2 emissions thatcan be attributable on a per-guest basis.

Environment, Social and Governance. A set ofstandards measuring an organisation's impact on theenvironment and society, and showing how transparent
and accountable it is.

Scope 1emissions

Direct GHG emissions that are owned and controlled
by an organisation.

CarbonneutralMeaning an activity that is neutral to the atmosphere as
GHGs are both added and removed in equal measuree.g., using biofuels.

Scope 2emissionsIndirect GHG emissions associated with electricity,
steam, heat or other secondary energy sources that canbe attributed to an organisation.

Carbonoffsetting

Emission reduction or removal resulting from an action
outside the organisation's boundaries used tocounterbalance the organisation's residual emissions.

Scope 3emissionsIndirect GHG emissions that are a result of activities orassets not owned or controlled by the reportingorganisation, but that appear in the organisation's value
chain.

CO2

Carbon Dioxide, one of the main greenhouse gases andprimarily produced by burning fossil fuels such as coaland oil.

Shore power
connectivity

The ability to connect ships to shore-based electrical
power while in port.

SOxSulphur oxide emissions. Polluting gases the enter theatmosphere primarily from burning some fossil fuels,
especially marine fuels; can cause acid rain.

Sustainability

The integration of environmental health, social equity
and economic vitality in order to create thriving, healthy,
diverse and resilient communities for this generationand generations to come (UCLA definition).

UN SDG

G: Green bond report 2023
H: EU Taxonomy
I: Policy Index
J: Glossary2023
ANNUAL & ESG REPORT
HURTIGRUTEN GROUP AS
PAGE 172

DEI

Diversity, Equity and Inclusion. An organisationalframework that aims to promote the fair treatment ofpeople regardless of identifying factors such as
ethnicity, gender and sexual orientation.

Emission
reduction

A quantified decrease in GHG emissions especiallyrelated to or arising from an activity between two
points in time or relative to a baseline.

GHG

Greenhouse Gases. Those gases, such as Carbon
Dioxide (CO2), which contribute to global warming.

Green Stay

Onboard programme whereby guests can opt to skip a
day or more of cabin cleaning, saving water, detergent
and energy. Money saved is gifted to Hurtigruten
Foundation to fund projects.

Heavy fuel oil

Also known as bunker fuel, a type of highly-polluting
bituminous liquid commonly used to power ships.

Hurtigruten'sGreen Bond

A bond issued to fund investments in emissions
reduction.

Hybridpowered ships

Ships outfitted with battery packs to augment
propulsion in combination with conventional engine
power.

IAATO

The International Association of Antarctica Tour
Operators.

LTIF

Lost Time Incident Frequency. A measure of thefrequency of incidents that cause lost time – a key
safety performance metric.