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's activity report 2022

The main activity of OÜ Frigohans in 2022 was the provision of international transport services and freight services to business customers. The service was mainly provided to Finnish customers. With a fleet suitable for the needs of the industry, we have been able to carry out transports quickly and regardless of the type of goods.

We operate flexibly and respond quickly to changing logistics needs. We have made freight transport as efficient as possible, we monitor the movement of goods with the latest programs. We organize the transport of goods in Europe, we carry out international transports with refrigerators. We transport food, medicine and other goods that require constant temperature regulation. We also carry out ADR transports. The company uses new and compliant trucks and trailers for its work, which are rented from a business lease. We plan to increase the volume of transports in 2023.

The transport sector affects the whole society and quality of life and is extremely important in the economy.

At the same time, transport also puts certain pressure on the surrounding environment and the transport system contributes to climate change, causing air pollution and consuming various natural resources.

The focus of the company's strategy is the use of more environmentally friendly (EURO 6) means of transport, which contributes to a cleaner environment.

We have set a goal to promote the environmental friendliness of transports. For this, we have planned to take advantage of digitization: fewer different full trips, best use of space, as well as environmental awareness, ECO - driving, appropriate training of driving technology managers and optimized costs - lower fuel consumption.

Finding employees in Estonia has been difficult, but we have found the necessary solutions and have been able to continue with the main activity. With the hiring of foreign labor, wage costs and additional additional costs related to their accommodation have increased. We have been able to get more qualified employees

from Ukraine. Obtaining work permits for short-term work has proved to be time-consuming, as this is followed by obtaining a visa, which is a very long process from a business point of view. Applying for residence permits is only possible for a very short period of time and their processing is 2-3 months and it is not yet certain that this residence permit will also be issued to the employee. As a result, personnel planning is complicated. Also, the legal regulations for hiring foreign labor and border crossings both going to work and returning from there are a problem.

As of 02.02.2022, the new EU Mobility Package Act came into force, which posed major challenges to the transport and logistics industry. The package of legal acts dealing with driver compensation, known as the EU Mobility Package, has a major impact. This has brought about certain changes for both us and our customers: (cid:127) Driver's salary: in the case of international transports and cabotage transports, the driver must receive a salary with all compensations in the country to which he has been sent, which are mandatory under each country's national law or other statutes, collective agreements or arbitration decisions, recognized as generally applicable or otherwise applicable.

(cid:127) Policy directed at employees: drivers must be given the opportunity to return to their home country or the location of the carrier every four weeks. However, trucks must return to the place of establishment every eight weeks. Valid from 21.02.2022.

(cid:127) The employer must provide accommodation at his own expense. These extensive legislative changes have led to a significant increase in costs, which, together with the current situation, makes the logistics chain of transport companies even more complicated, as confirmed by both the European Commission and carriers in their initial impact reports.

Frigohans OÜ has already noticed their impact on daily activities and we plan to reorganize our work. If necessary, we try to find new routes for cars (redirect cars).

The biggest cost items in the company are truck rental, driver's salaries, fuel, tolls, customs, etc. Diesel fuel prices have risen rapidly due to the war between Ukraine and Russia, but freight prices do not rise so quickly, so it is planned to find other ways to increase profits.

In 2022, sales revenue amounted to 6,171.8 thousand euros (in 2021 4,620.1 thousand euros). During the current financial year, the company employed an average of 59 employees under employment contracts and 2 members of the board.

For the next year, it is planned to increase sales turnover, as food and medical products